Morningstar Japan K.K.
Consolidated Financial Results (Japanese Accounting Standards)
for the First Quarter of the Fiscal Year ending March 31, 2023
July 26, 2022
Stock exchange listing: Tokyo Stock Exchange
TEL 03-6229-0810(Name) Tomoya Asakura

Company name Morningstar Japan K.K.
Stock code
4765
URL https://www.morningstar.co.jp
Representative(Title) Representative Director andPresident
Person responsible for(Title) Managing Executive Officer and(Name) Kazuhisa Ogawa
disclosure
General Manager of Administration
Department
Scheduled date for filing of quarterly report: August 2, 2022
Scheduled date of payment of dividends: －Supplementary documents for quarterly financial results: None
Quarterly financial results briefing: Yes (We will post a video of the briefing on our official website, targeting analysts
and institutional investors.)(Amounts of less than one million yen are rounded down)

1.
Consolidated Financial Results for the First Quarter of the Fiscal Year ending March 31, 2023 (April 1, 2022 to June 30, 2022)(1) Consolidated Results of Operations (cumulative)(Percentages show year-on-year changes)
Net income attributable
Net sales
Operating income
Ordinary income
to owners of parent
Million yen%
Million yen%
Million yen%
Million yen%
First quarter of Fiscal Year
2,007
1.0
515
1.7
621
1.2
361
△12.6
ending March 31, 2023
First quarter of Fiscal Year
1,987
10.0
506
17.7
613
19.6
413
21.2
ended March 31, 2022
(Note) Comprehensive income
First quarter of Fiscal Year ending March 31, 2023
349 million yen (△11.1%)
First quarter of Fiscal Year ended March 31, 2022
392 million yen (△20.0%)
Net income per share (basic)
yenFirst quarter of Fiscal Yearending March 31, 2023
First quarter of Fiscal Year
ended March 31, 2022

Net income per share (diluted)
yen

4.03

－

4.61

－

(2) Consolidated financial position

First quarter of Fiscal Yearending March 31, 2023
Fiscal Year ended
March 31, 2022
(Reference) Shareholders’ equity

2.

Total assets
Million yen

Net assets
Million yen

13,34914,055Equity ratio%

Net assets per shareyen

11,81584.6

126.02

12,27384.0

131.64First quarter of Fiscal Year ending March 31, 2023
Fiscal Year ended March 31, 2022

11,300 million yen
11,804 million yen

Dividends
End of first quarter

Dividend
End of second
End of third quarter
quarter
yen
yen

yen
Fiscal Year ended－
8.00
March 31, 2022
Fiscal Year ending－
March 31, 2023
Fiscal Year ending－
March 31, 2023
(forecast)(Note) Revision to the most recently announced dividend forecast: None

Year-end－－－

The forecast of the year-end dividend for the fiscal year ending March 31, 2023 has yet to be determined.

Total
yen

yen

9.00

17.00

－

3.

Forecast of Consolidated Financial Results for the Fiscal Year ending March 31, 2023 (April 1, 2022 to March 31, 2023)

The forecast of consolidated financial results for the fiscal year ending March 31, 2023 has yet to be determined.
(Note) Revision to the most recently announced earnings forecast: None
* Notes(1) Changes in significant subsidiaries during the quarter under review(changes in specified subsidiaries affecting the scope of consolidation): None
(2)

Application of special accounting treatment for preparing quarterly consolidated financial statements: None

(3)

Changes in accounting policies and estimates, and retrospective restatements
1) Changes in accounting policies caused by revision of accounting standards: Yes
2) Changes in accounting policies other than 1): None
3) Changes in accounting estimates:
None4) Retrospective restatements:
None

(4)

Number of shares issued (common stock)1) Number of shares outstanding at end of
period (including treasury stocks)

Q1, Fiscal Yearending March 31,
20232) Number of treasury stocks at end of period Q1, Fiscal Yearending March 31,
2023
3) Average number of shares during the
Q1, Fiscal Year
period (quarterly cumulative)ending March 31,
2023

89,673,600 Fiscal Year ended
shares March 31, 2022

89,673,600
sharesFiscal Year ended
March 31, 2022

170 shares

Q1, Fiscal Year89,673,430
ended March 31,
shares2022

89,673,430
shares

170 shares*This quarterly financial summary is outside the scope of the quarterly review performed by certified accountants and auditors.

*

Explanation regarding the appropriate use of financial forecasts and other special items(Dividend forecast of Fiscal Year ending March 31, 2023)
The year-end dividend forecast for the Fiscal Year ending March 31, 2023 has yet to be determined. It will be disclosed as soon as the dividend pershare is determined after comprehensively taking into account future business performance, etc.
(How to obtain the financial results briefing)A briefing of financial results for analysts is scheduled to be held on July 26, 2022. We will post a video of the briefing on our official website
promptly after it is held.

Morningstar Japan K.K. (4765) Consolidated Financial Results for the First Quarter of the Fiscal Year ending March 31, 2023

* Table of contents of attachments
1.

Qualitative Information on Quarterly Financial Results ............................................................................................................. 2(1)

Explanation of Business Results .................................................................................................................................... 2(2)

Analysis of Financial Position ......................................................................................................................................... 3(3)

Explanation about Future Forecast Information such as Consolidated Earnings Forecast ........................................... 3

2． Quarterly Consolidated Financial Statements and Major Notes................................................................................................ 4

3.

(1)

Quarterly Consolidated Balance Sheet .......................................................................................................................... 4(2)

Quarterly Consolidated Statement of Income and Quarterly Consolidated Statement of Comprehensive Income ........ 6(Quarterly Consolidated Statement of Income)(First quarter of the fiscal year) ...................................................................................................................................... 6(Quarterly Consolidated Statement of Comprehensive Income)(First quarter of the fiscal year) ...................................................................................................................................... 6(3)

Notes on Quarterly Consolidated Financial Statements ................................................................................................. 7

Other ....................................................................................................................................................................................... 10
Significant events regarding the premise of a going concern .................................................................................................... 10-1-

Morningstar Japan K.K. (4765) Consolidated Financial Results for the First Quarter of the Fiscal Year ending March 31, 2023

1.

Qualitative Information on Quarterly Financial Results(1) Explanation of Business Results
In Asset Management Business for the first quarter of the fiscal year under review (from April 1, 2022 to June 30, 2022),
management fees (trust fees) increased due to a rising investment balance, supported by a continued increase in the investment
balance of publicly offered index funds as well as privately placed funds that support the securities management of regional
financial institutions. As a result, sales of the Asset Management Business amounted to 1,482 million yen, an increase of 50
million yen (3.5%) from the same period of the previous fiscal year (from April 1, 2021 to June 30, 2021).
In the Financial Services Business, the number of provided Wealth Advisors for tablets used by in-person-centric financial
institutions for providing advice to customers continued to increase. In addition, there was an increase in the number of financial
institutions using our independently developed investment-related tools on their official websites or on a smartphone application.
Asset management-related seminars, which had sharply decreased due to COVID-19, recovered for the quarter, and sponsors
and sales of web-related advertising also recovered owing to the increasing number of seminars. Meanwhile, sales of the Gomez
Consulting Business, a sales category recorded for the same period of the previous fiscal year (from April 1, 2021 to June 30,2021), ceased to be recorded due to the transfer of the business on July 1, 2021 through a company split. As a result, sales of the
Financial Services Business totaled 524 million yen, a decrease of 30 million yen (△5.4%) from the same period of the previous
fiscal year.
For the consolidated business results for the first quarter of the fiscal year under review, sales amounted to 2,007 million yen, an
increase of 19 million yen (1.0%) from 1,987 million yen for the same period of the previous fiscal year. Cost of sales was 878
million yen, a decrease of 40 million yen (△4.4%) from 919 million yen for the same period of the previous fiscal year. Selling,
general and administrative expenses were 613 million yen, an increase of 52 million yen (9.3%) from 561 million yen for the same
period of the previous fiscal year.
Operating income for the period under review was 515 million yen, an increase of 8 million yen (1.7%) from 506 million yen for thesame period of the previous fiscal year, as we succeeded in restraining the growth rates of cost of sales and selling, general andadministrative expenses to below that of total net sales.
Although non-operating income less non-operating expenses decreased by 1 million yen compared with the same period of theprevious fiscal year, ordinary income for the period under review totaled 621 million yen, an increase of 7 million yen (1.2%) from
613 million yen for the same period of the previous fiscal year.
Net income attributable to owners of parent for the period under review was 361 million yen, a decrease of 51 million yen(△12.6%) compared to 413 million yen for the same period of the previous fiscal year, as the tax burden for the same period of
the previous fiscal year was lower than normal due to the receipt by U.S. subsidiary Carret Asset Management LLC of a tax refund
for a prior year.
(Thousand yen)First Quarter of Previous Fiscal Year First Quarter of Current Fiscal Year(from April 1, 2021 to June 30,(from April 1, 2022 to June 30,
2021)
2022)
AmountNet sales

Profit rate (%)

Amount1,987,417

Profit rate (%)

Increase/Decrease
Amount2,007,387

Rate (%)

19,9691.0

Operating income

506,92225.5

515,296

25.7

8,373

1.7

Ordinary income

613,80930.9

621,158

30.9

7,348

1.2

Net income
attributable to owners
413,03120.8
361,12618.0△51,904△12.6
of parent
Consolidated net sales increased for the 3rd consecutive year and recorded the highest sales for the 3rd consecutive year.
Operating income increased for the 2nd consecutive year.
Ordinary income increased for the 2nd consecutive year and posted a record high.
Sales by segment are as follows.
(Thousand yen)

Sales by Segment

First Quarter ofPrevious Fiscal Year(from April 1, 2021 to June 30, 2021)
AmountRate (%)

First Quarter ofCurrent Fiscal Year(from April 1, 2022 to June 30, 2022)
AmountRate of
Change(%)

Rate (%)

Asset Management Business

1,432,481

72.1

1,482,525

73.9

3.5

Financial Services Business

554,93627.9

524,862

26.1

△5.4

Consolidated net sales

1,987,417

100.002,007,387

100.0

1.0

-2-

Morningstar Japan K.K. (4765) Consolidated Financial Results for the First Quarter of the Fiscal Year ending March 31, 2023

1)

Asset Management Business
The balance of assets under management of all four management companies and one investment advisory company, each a
subsidiary, increased compared to the end of the same quarter of the previous fiscal year. The combined total balance of assets
under management of the five companies increased 21.9% year on year to 3.78 trillion yen at the end of the quarter underreview (June 30, 2022) from 3.1 trillion yen at the end of the same quarter of the previous fiscal year (June 30, 2021). Sales of
the Asset Management Business for the first quarter of the fiscal year under review increased by 50 million yen (3.5%) year on
year to 1,482 million yen from 1,432 million yen for the same period of the previous fiscal year, as management fees (trust fees)
increased due to a rising investment balance.
Segment income was 360 million yen, an increase of 5 million yen (1.4%) from 355 million yen for the same period of theprevious fiscal year.

2)

Financial Services Business
The number of “Wealth Advisors” used by financial institutions distributing investment trusts rose to 114,960 units at the end of
the quarter under review, an increase of 8.7% from 105,792 units at the end of the same quarter of the previous fiscal year, anddata sales for tablets also increased. There was an increase in the number of entities provided with online-use data for financial
institutions. Asset management-related seminars, which had sharply decreased due to COVID-19, recovered for the quarter,and seminar-related sponsors and sales of web advertising also recovered. Meanwhile, sales of the Gomez Consulting
Business, a sales category recorded for the first quarter of the previous fiscal year, ceased to be recorded for the period underreview due to the transfer of the business on July 1, 2021 through a company split.
As a result, sales of the Financial Services Business for the period under review were 524 million yen, a decrease of 30 million
yen (△5.4%) from 554 million yen for the same period of the previous fiscal year.
Segment income was 154 million yen, an increase of 3 million yen (2.2%) from 151 million yen for the same period of theprevious fiscal year.

(2)

Analysis of Financial Position
Total assets decreased by 705 million yen from the end of the previous consolidated fiscal year to 13,349 million yen. This wasdue to an increase of 2,013 million yen in current assets, and a decrease of 1,310 million yen in non-current assets. The
decrease in current assets was mainly due to a decrease in cash and cash equivalents by 2,173 million yen. The decrease in
cash and cash equivalents was due to a dividend payment of 807 million yen and a purchase of investment securities worth
1,500 million yen.
The increase in non-current assets was mainly due to an increase of 1,344 million yen in investment securities.
Total liabilities decreased by 247 million yen from the end of the previous consolidated fiscal year to 1,533 million yen. The
decrease in liabilities was mainly due to a decrease in income taxes payable by 268 million yen. The decrease in income taxes
payable was due to a tax payment for the previous consolidated fiscal year.
For the period under review, net income attributable to owners of parent of 361 million yen was recorded and dividends of 807
million yen were paid, and as a result, retained earnings decreased by 445 million yen to 3,993 million yen.
Valuation difference on available-for-sale securities amounted to negative 660 million yen due to declines in their fair value.
Foreign currency translation adjustments increased by 89 million yen due to the yen's depreciation, which widened thedifference between the exchange rate at the time of acquisition of shares of a U.S. subsidiary and the exchange rate for theperiod under review.
As a result, total net assets decreased by 457 million yen from the end of the previous consolidated fiscal year to 11,815 million
yen.

(3)

Explanation about Future Forecast Information such as Consolidated Earnings Forecast
Regarding the forecast for the current fiscal year, it is difficult to predict the financial market trends closely related to ourbusiness, rendering it challenging to make a rational calculation of the business results, so we have yet to decide the forecast at
this time.

-3-Morningstar Japan K.K. (4765) Consolidated Financial Results for the First Quarter of the Fiscal Year ending March 31, 2023

2． Quarterly Consolidated Financial Statements and Major Notes(1)

Quarterly Consolidated Balance Sheet(Thousand yen)First Quarter of Current Fiscal Year(As of June 30, 2022)

Previous Fiscal Year(As of March 31, 2022)
ASSETS
Current assets
Cash and cash equivalents
Accounts receivable
Inventories
Other current assets
Total current assets
Non-current assets
Tangible fixed assets
Intangible fixed assets
Goodwill
Software
Other intangible assets
Total intangible assets
Investments and other assets
Investment securities
Deferred tax asset
Other investments and other assets
Total investments and other assets
Total non-current assets
Deferred assets
Stock issuance cost
Total deferred assets
TOTAL ASSETS

5,176,612
1,611,378*1 1,263
814,825
7,604,080*2-4-

149,951

3,003,451
1,715,251*1 1,618
870,370
5,590,691*2

121,360

1,786,713
1,076,849
282,050
3,145,612

1,811,509
1,200,489
105,640
3,117,638

2,624,582
345,615
166,511
3,136,709
6,432,274

3,968,918
368,851
165,873
4,503,643
7,742,642

19,00319,003
14,055,358

16,39916,39913,349,734

Morningstar Japan K.K. (4765) Consolidated Financial Results for the First Quarter of the Fiscal Year ending March 31, 2023

Previous Fiscal Year(As of March 31, 2022)
LIABILITIESCurrent liabilities
Accounts payable-trade
Accounts payable-other
Lease payable
Income taxes payable
Consumption taxes payable
Other current liabilities
Total current liabilities
TOTAL LIABILITIESNET ASSETS
Shareholders' equity
Common stock
Capital surplus
Retained earnings
Treasury stocks
Total shareholders' equity
Accumulated other comprehensive income
Valuation difference on available-for-salesecurities
Foreign currency translation adjustments
Total accumulated other comprehensive income
Non-controlling shareholders' equity
TOTAL NET ASSETSTOTAL LIABILITIES AND NET ASSETS-5-(Thousand yen)First Quarter of Current Fiscal Year(As of June 30, 2022)

62,618748,528
69,089464,822
90,498346,255
1,781,813
1,781,813

46,881
755,863
42,330196,084
52,184
440,639
1,533,983
1,533,983

3,363,635
4,478,772
4,439,392△29
12,281,770

3,363,635
4,478,772
3,993,458△29
11,835,835△513,787
36,309△477,478
469,252
12,273,545
14,055,358△660,823
125,332△535,491
515,406
11,815,750
13,349,734

Morningstar Japan K.K. (4765) Consolidated Financial Results for the First Quarter of the Fiscal Year ending March 31, 2023
(2) Quarterly Consolidated Statement of Income and Quarterly Consolidated Statement of Comprehensive Income(Quarterly Consolidated Statement of Income)(First quarter of the fiscal year)(Thousand yen)First Quarter of Previous Fiscal Year
(From April 1, 2021 to June 30,
2021)

First Quarter of Current Fiscal Year
(From April 1, 2022 to June 30,
2022)

1,987,417
919,144
1,068,272* 561,349
506,922

2,007,387
878,439
1,128,948* 613,651
515,296

78,34430,066
1,028
109,438

54,81453,942
662
109,418

53
2,224
273
2,552
613,809

230
2,604
722
3,557
621,158

－
4,035
4,035
609,773
104,896
17,907
122,804
486,969
73,938413,031

4,848
－
4,848
616,309
166,484
42,545
209,030
407,279
46,153361,126

Sales
Cost of sales
Gross profit
Selling, general and administrative expenses
Operating income
Non-operating income
Interest income
Dividends income
Other non-operating income
Total non-operating income
Non-operating expenses
Foreign exchange losses
Amortization of stock issuance cost
Other non-operating expenses
Total non-operating expenses
Ordinary income
Extraordinary loss
Loss on valuation of crypto assets
Loss on sale of investment securities
Total extraordinary loss
Income before income taxes
Income taxes-current
Income taxes-deferred
Total income taxes
Profit
Net income attributable to non-controlling interests
Net income attributable to owners of parent(Quarterly Consolidated Statement of Comprehensive Income)(First quarter of the fiscal year)(Thousand yen)

ProfitOther comprehensive income
Valuation difference on available-for-salesecurities
Foreign currency translation adjustments
Total other comprehensive income
Comprehensive income(Breakdown)Comprehensive income attributable to ownersof parent
Comprehensive income attributable to noncontrolling interests

First Quarter of Previous Fiscal Year
(From April 1, 2021 to June 30,
2021)
486,969First Quarter of Current Fiscal Year
(From April 1, 2022 to June 30,
2022)
407,279△59,008△35,024△94,032
392,937△147,036
89,023△58,013349,266

328,654

303,11264,283

46,153-6-

Morningstar Japan K.K. (4765) Consolidated Financial Results for the First Quarter of the Fiscal Year ending March 31, 2023
(3) Notes on Quarterly Consolidated Financial Statements(Notes on the premise of a going concern)
Not applicable(Notes on change in the scope of consolidation or the scope of application of the equity method)
Not applicable(Notes on the changes in accounting policies)(Application of Implementation Guidance on Accounting Standard for Fair Value Measurement)
The Implementation Guidance on Accounting Standard for Fair Value Measurement (ASBJ Guidance. No. 31, June 17, 2021;
hereinafter, “the Implementation Guidance”) has been applied since the beginning of the first quarter of the current fiscal year. In
accordance with the transitional treatment set forth in Paragraph 27-2 of the Implementation Guidance, the Company decided toapply the new accounting policies specified in the Implementation Guidance going forward.
This change had no impact on the Company’s quarterly consolidated financial statements.
(Application of special accounting treatment for preparing quarterly consolidated financial statements)
Not applicable(Notes on quarterly consolidated balance sheet)*1 Breakdown of inventories(Thousand yen)Previous Fiscal Year(As of March 31, 2022)
Work in process
StocksFirst Quarter of Current Fiscal Year(As of June 30, 2022)
－

15

1,263

1,603

* 2. Accumulated depreciation of tangible fixed assets(Thousand yen)Previous Fiscal Year(As of March 31, 2022)
275,627First Quarter of Current Fiscal Year(As of June 30, 2022)
277,708(Notes on quarterly consolidated statement of income)* Major items of selling, general and administrative expenses(Thousand yen)First Quarter ofPrevious Fiscal Year
(From April 1, 2021 to June 30, 2021)

First Quarter ofCurrent Fiscal Year
(From April 1, 2022 to June 30, 2022)

240,067

251,877

Employee's salaries(Notes on quarterly consolidated statement of cash flows)
We did not prepare any quarterly consolidated statement of cash flows for the period under review. Shown below are
depreciation and amortization expenses (including amortization expense of intangible fixed assets, excluding goodwill) andamortization expense of goodwill for the period under review.
(Thousand yen)First Quarter ofPrevious Fiscal Year
(From April 1, 2021 to June 30, 2021)

First Quarter ofCurrent Fiscal Year
(From April 1, 2022 to June 30, 2022)

108,138
25,252

108,848
28,701

Depreciation and amortization expenses
Amortization of goodwill-7-Morningstar Japan K.K. (4765) Consolidated Financial Results for the First Quarter of the Fiscal Year ending March 31, 2023
(Notes on shareholders' equity)
I First quarter of the previous fiscal year (from April 1, 2021 to June 30, 2021)
Dividends paid
Resolution

Kind of shares

Source ofdividends

May 14, 2021
Board of Directors

Commonstock

Retainedearnings

Total dividends Dividend per(Thousand yen) share (yen)762,224

8.50

Date of rightallotment
March 31, 2021

Effective dateJune 1, 2021

II First quarter of the current fiscal year (from April 1, 2022 to June 30, 2022)
Dividends paid
Resolution

Kind of shares

Source ofdividends

May 19, 2022
Board of Directors

Commonstock

Retainedearnings

Total dividends Dividend per(Thousand yen) share (yen)807,060(Notes on significant change in shareholders' equity)
Not applicable

-8-

9.00

Date of rightallotment
March 31, 2022

Effective dateJune 1, 2022

Morningstar Japan K.K. (4765) Consolidated Financial Results for the First Quarter of the Fiscal Year ending March 31, 2023
(Segment information etc.)
Segment information
1. Information on sales and income or loss for each reporting segment
First quarter of the previous fiscal year (from April 1, 2021 to June 30, 2021)
Reporting segment
Asset
Management
Business

Financial
Services
Business

Matters
concerning
difference
adjustment

Total(Thousand yen)Amountrecorded on
consolidated
financialstatements

Sales
Sales to external customers
Internal sales or transfers between
segments
Total
Segment operating income

1,432,481

554,936

1,987,417－

1,987,417

18

14,712

14,731△14,731－

1,432,499

569,649

2,002,149△14,731

1,987,417

355,834

151,088506,922－506,922First quarter of the current fiscal year (from April 1, 2022 to June 30, 2022)

Reporting segment
Asset
Management
Business

Financial
Services
Business

Matters
concerning
difference
adjustment

Total(Thousand yen)Amountrecorded on
consolidated
financialstatements

Sales
Sales to external customers
Internal sales or transfers between
segments
Total
Segment operating income

1,482,525

524,862

2,007,387－

2,007,387

28

5,997

6,025

△6,025－

1,482,553

530,859

2,013,413△6,025

2,007,387

360,922

154,373515,296－515,296

2． Difference between the total of reporting segments and the quarterly consolidated statement of income and the main content of
the difference (matters concerning difference adjustment)
First Quarter of the Previous
Fiscal Year
2,002,149(Thousand yen)First Quarter of the Current
Fiscal Year
2,013,413

Elimination of transactions between segments△14,731△6,025Net sales in the quarterly consolidated statement of income

1,987,417

2,007,387

First Quarter of the Previous
Fiscal Year506,922(Thousand yen)First Quarter of the Current
Fiscal Year515,296－－506,922515,296

Sales
Total of reporting segment

Segment operating income
Total of reporting segment
Elimination of transactions between segments
Operating income in the quarterly consolidated statement ofincome3. Information on impairment loss on non-current assets or on goodwill of each reporting segment(Significant impairment loss on non-current assets)
Not applicable(Significant changes in the amount of goodwill)
Not applicable(Significant gain on bargain purchase)
Not applicable-9-Morningstar Japan K.K. (4765) Consolidated Financial Results for the First Quarter of the Fiscal Year ending March 31, 2023
(Information on a per-share basis)
The amount of net income per share and the basis for calculation are as follows.
First Quarter ofFirst Quarter ofPrevious Fiscal Year
Current Fiscal Year
(From April 1, 2021 to June 30, 2021) (From April 1, 2022 to June 30, 2022)(1) Net income per share

4.61 yen

4.03 yen

413,031

361,126－－

Net income attributable to owners of parent
related to common stock (Thousand yen)

413,031

361,126

Average number of shares of common stockduring the period (Share)

89,673,430

89,673,430(Basis for calculation)
Net income attributable to owners of parent(Thousand yen)Amount not attributable to commonshareholders (Thousand yen)

Diluted net income per share is not stated as there are no dilutive shares.

(Significant subsequent events)
Not applicable

3. OtherSignificant events regarding the premise of a going concern
Not applicable-10-