Insource : Q1 FY21 Consolidated Monetary Outcomes

Disclaimer: This doc is a translation of the

Japanese authentic for reference functions solely.

Q1 FY21 Consolidated Monetary Outcomes [JGAAP]

												January 24, 2022
Firm Identify:	Insource Co., Ltd.						Inventory Change Itemizing: Tokyo
Code quantity:	6200		URL:	https://www.insource.co.jp/index.html
Consultant:	Takayuki Funahashi, Consultant Director, President and CEO
Contact:	Shigeo Fujimoto, Director, Government Officer, and CFO			TEL. +81-3-5577-2283
Scheduled date to submit the Quarterly Securities Report: February 14, 2022
Scheduled date to start dividend funds: ―
Availability of supplementary briefing materials on quarterly outcomes: Sure
Scheduled date of Quarterly Outcomes Briefing Session: Not scheduled
								(Quantities are rounded all the way down to the closest million yen)
1. Q1 FY21 Consolidated Monetary Outcomes (October 1, 2021 – December 31, 2021)
(1) Consolidated Monetary Outcomes								(% signifies modifications from the earlier 12 months)
			Web gross sales		Working revenue		Unusual revenue	Revenue attributable to
					homeowners of mum or dad
			mil yen		%	mil yen		%		mil yen	%	mil yen		%
Q1 FY21			2,192		20.8	775		20.0		765	16.1	522		15.5
Q1 FY20			1,814		11.7	646		56.1		659	58.9	452		63.7

(Be aware) Complete revenue:	Q1 FY21	520 million yen (14.9%) Q1 FY20 453 million yen (63.7%)
	Earnings per share	Totally diluted earnings
	per share
		yen sen	yen sen
Q1 FY21		12.42	12.41
Q1 FY20		10.81	10.80

(Be aware) We performed a inventory break up on January 1, 2021, whereby every share of frequent inventory was break up into two shares. Within the above, “Earnings per share” and “Totally diluted earnings per share” are calculated on the idea that the stated inventory break up was performed initially of the earlier consolidated fiscal 12 months.

(2) Consolidated Monetary Place

Complete property

Web property

Fairness ratio

mil yen

mil yen

%

Q1 FY21

6,460

4,368

67.6

FY20 Full-year

6,766

4,500

66.5

(Reference) Shareholders’ fairness:

Q1 FY21

4,368 million yen

FY20

4,500 million yen

2. Dividends

Annual money dividends per share

Finish of Q1

Finish of Q2

Finish of Q3

Yr-end

Annual

yen sen

yen sen

yen sen

yen sen

yen sen

FY20 Full-year

－

0.00

－

15.50

15.50

FY21 Full-year

－

FY21 (forecast)

0.00

－

17.00

17.00

(Be aware) Revisions of dividend forecast from lately introduced figures: None

3. Consolidated Monetary Forecast for FY21 (October 1, 2021 – September 30, 2022)

(% signifies modifications from the earlier 12 months)

	Web gross sales		Working revenue	Unusual revenue	Revenue attributable to	Earnings per share
								homeowners of mum or dad
	mil yen		%	mil yen	%	mil yen	%	mil yen	%	yen sen
Q2 FY21 (Cumulative)	4,190		14.0	1,230	(2.2)	1,230	(3.4)	830	0.8	19.47
FY21 Full-year	8,900		18.6	2,600	8.1	2,600	7.6	1,770	12.7	41.53

(Be aware) Revisions of the forecast of monetary outcomes from lately introduced figures: None

• Notes
• 1. Important modifications in subsidiaries throughout Q1 FY21

(modifications in particular subsidiaries involving modifications within the scope of consolidation): None

1. Particular accounting strategies for quarterly consolidated monetary statements: Sure

(Be aware) For particulars, please seek advice from “2. Quarterly Consolidated Monetary Statements and Notes (3) Notes to Quarterly Consolidated Monetary Statements (Utility of Particular Accounting Strategies for the Preparation of Quarterly Consolidated Monetary Statements)” on web page 7 of the hooked up supplies.

1. Modifications in accounting insurance policies, estimates, and restatements

(i)	Modifications in accounting insurance policies because of the revision of accounting requirements	: Sure
(ii)	Modifications in accounting insurance policies aside from (3)-(i)	: None
(iii)	Modifications in accounting estimates	: None
(iv)	Restatements	: None

1. Complete variety of issued shares (frequent shares)
2. 1. Complete variety of issued shares on the finish of the interval (together with treasury shares)
   2. Complete variety of treasury shares on the finish of the interval
   3. Common variety of shares in the course of the interval

Q1 FY21	42,621,500 shares	FY20	42,621,500 shares
Q1 FY21	530,311 shares	FY20	529,534 shares
Q1 FY21	42,090,063 shares	Q1 FY20	41,859,179 shares

(Be aware) We performed a inventory break up on January 1, 2021, whereby every share of frequent inventory was break up into two shares, and the above calculations are based mostly on the idea that the inventory break up was performed initially of the earlier consolidated fiscal 12 months.

• These quarterly consolidated monetary outcomes are outdoors the scope of an audit by licensed public accountants and audit companies.
• Clarification for the suitable use of monetary forecasts and different particular notes:

(Cautionary be aware on forward-looking assertion)

The statements relating to the forecast of monetary outcomes on this report are based mostly on the knowledge that’s obtainable to the Firm, in addition to sure assumptions which are deemed to be cheap by administration, and they aren’t meant to be a dedication by the Firm. Subsequently, there could be circumstances by which precise outcomes differ materially from forecast figures as a consequence of varied components. For particulars, please seek advice from “1. Qualitative Info on Quarterly Monetary Outcomes” on web page 2 of the hooked up supplies.

(How you can receive supplementary explanatory supplies for monetary outcomes)

Supplementary briefing materials on quarterly outcomes is disclosed by way of TDnet on the identical day.

Desk of Contents

1. Qualitative Info on Quarterly Monetary Outcomes…………………………………………………………………….. 2
2. 1. Overview of Enterprise Outcomes……………………………………………………………………………………………. 2
   2. Overview of Monetary Place…………………………………………………………………………………………… 3
   3. Consolidated Monetary Forecasts…………………………………………………………….…………………………… 3
3. Quarterly Consolidated Monetary Statements and Notes…………………………………………………………………….. 4
4. 1. Quarterly Consolidated Steadiness Sheets………………………………………………………………………………….. 4
   2. Quarterly Consolidated Statements of Revenue and Complete Revenue……………………………………………… 5 Quarterly Consolidated Statements of Revenue
      Consolidated Interval of Q1……………………………………………………………………………………………… 5 Quarterly Consolidated Statements of Complete Revenue
      Consolidated Interval of Q1……………………………………………………………………………………………… 6
   3. Notes to Quarterly Consolidated Monetary Statements…………………………………………………………………… 7 (Notes associated to the Going Concern Assumption)………………………………………………………………………… 7

(Notes to Important Modifications within the Quantity of Shareholders’ Fairness)…………………………………………………..	7
(Utility of Particular Accounting Strategies for the Preparation of Quarterly Consolidated Monetary Assertion)	7
(Extra Info) …………………………………………………………………………………………………	7
(Phase Info) ……………………………………………………………………………………………………	7
(Important Subsequent Occasions) …………………………………………………………………………………………	8

– 1 –

1． Qualitative Info on Quarterly Monetary Outcomes

1. Description of Enterprise Outcomes

Within the first quarter of the present fiscal 12 months (October 1, 2021, to December 31, 2021), though the variety of new COVID-19 infections continued to say no, the profession coaching market continues to be present process a structural change by which organizations select one of the best training methodology that fits their atmosphere, similar to on-line coaching and e-learning/movies, along with the normal face-to-face coaching.

In response to this case, the Group strengthened the event of coaching content material that matches the wants of the company scale. Additionally, the Group enhanced non-face-to-face companies similar to on-line coaching, ‟Leaf”(HR help system, LMS (*1)), and e- studying/movies, in addition to face-to-face trainings.

As for the On-Website Coaching enterprise, the variety of on-line coaching performed within the personal sector elevated and the variety of coaching performed elevated by 12.4% YoY, which reached a document excessive.

For Open Seminars enterprise, though the affect of COVID-19 remained at starting of the time period, the variety of attendees started to recuperate from November and the overall variety of attendees elevated by 10.5% YoY.

About IT Companies, the variety of paid organizations for Leaf (HR supporting system, LMS) elevated to 432 (+134, + 45% YoY). Complete customers exceed 1.84 million as of the top of December 2021, and Leaf`s month-to-month subscription charges (MRR(*2)) has elevated steadily, with ARR(*3) growing 53.9% YoY to 586 million yen.

In Different Companies, the Internet advertising and marketing enterprise, which was launched within the earlier quarter, contributed to gross sales. Additionally, gross sales of recent e-learning merchandise with excessive unit costs elevated.

On account of the above, for the primary quarter of the fiscal 12 months, web gross sales is 2,192,609 thousand yen (+ 20.8% YoY), working revenue is 775,470 thousand yen (+ 20.0% YoY), abnormal revenue is 765,713 thousand yen (+ 16.1percentYoY), and revenue attributable to homeowners of mum or dad is 522,734 thousand yen (+ 15.5% YoY), and each web gross sales and income reached document highs for the quarter.

*1:LMS (Studying Administration System): A system essential for implementing e-learning.

*2:MRR: Month-to-month Recurring Income

*3:ARR: Annual Recurring Income. Calculated by multiplying the MRR of the final month of every time period by 12.

■ Web gross sales by enterprise for	the primary quarter of FY21		(Unit: thousand yen)
Enterprise		Q1 FY21	YoY (%)	Q1 FY20
	(Oct. 1, 2021 – Dec. 31, 2021)	(Oct. 1, 2020 -Dec. 30, 2021)
On-Website Coaching		1,248,796	117.1	1,066,397
Open Seminars		507,230	113.5	447,008
IT Service		203,533	135.6	150,149
Different Companies		233,048	154.5	150,860
Complete		2,192,609	120.8	1,814,415

(Be aware)1. Since our Group has a single enterprise section, which is the training service enterprise, the knowledge herein is introduced by enterprise class as a substitute of the section.

2. Consumption tax will not be included within the above quantities.

– 2 –

1. Overview of Monetary Place (Belongings)
   Complete property on the finish of the primary quarter of the present fiscal 12 months decreased by 305,955 thousand yen in comparison with the top of the earlier fiscal 12 months to six,460,749 thousand yen, primarily as a consequence of a lower of 315,987 thousand yen in money and deposits. (Liabilities)
   Complete liabilities decreased by 174,218 thousand yen in comparison with the top of the earlier fiscal 12 months to 2,092,061 thousand yen, primarily as a consequence of a lower of 491,396 thousand yen in revenue taxes payable.
   (Web Belongings)
   Web property decreased by 131,736 thousand yen in comparison with the top of the earlier fiscal 12 months to 4,368,688 thousand yen. This was primarily as a consequence of a lower of 129,690 thousand yen in retained earnings.
2. Consolidated Monetary Forecasts

There is no such thing as a change to the full-year consolidated monetary forecast for FY21 from the forecast introduced on November 4, 2021. The forecasts are based mostly on info obtainable on the time of preparation and precise outcomes might differ from these forecasts as a consequence of varied components sooner or later.

– 3 –

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Insource Co. Ltd. printed this content material on 24 January 2022 and is solely accountable for the knowledge contained therein. Distributed by Public, unedited and unaltered, on 24 January 2022 08:13:03 UTC.

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Gross sales 2022 9 197 M 80,8 M 80,8 M Web revenue 2022 1 880 M 16,5 M 16,5 M Web Debt 2022 – – – P/E ratio 2022 46,4x Yield 2022 0,82%

Capitalization 87 120 M 766 M 765 M Capi. / Gross sales 2022 9,47x Capi. / Gross sales 2023 7,71x Nbr of Workers 382 Free-Float 54,5%

Chart INSOURCE CO., LTD.

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Technical evaluation tendencies INSOURCE CO., LTD.

	Brief Time period	Mid-Time period	Lengthy Time period
Traits	Bearish	Impartial	Impartial

Revenue Assertion Evolution

Promote Purchase
Imply consensus	BUY
Variety of Analysts	3
Final Shut Worth	2 070,00 JPY
Common goal worth	2 790,00 JPY
Unfold / Common Goal	34,8%