Summary of Consolidated Financial Statement
for the Nine Months Ended June 30, 2022 [IFRS]
August 9, 2022
Listed Market: TSE
SEPTENI HOLDINGS CO., LTD.
Stock Code: 4293 URL: https://www.septeni-holdings.co.jp/en
Representative: Representative Director, Group President and Chief Executive Officer Koki Sato
Contact Person: Group Executive Officer Tei Go, Telephone: +81-3-6857-7258
Anticipated Financial Report Filing Date:
August 10, 2022
Anticipated Dividend Payment Date:―
Supplemental Earnings Presentation Materials:
Available
Earnings Presentation Meeting:
Held for institutional investors, analysts, media(All figures of less than 1 million yen are rounded down to the nearest digit)

1. Consolidated Financial Results for the Nine Months Ended June 30, 2022 (From October 1, 2021 to June 30, 2022)(1) Consolidated Earnings(% figures represent year-over-year change)
Revenue

Operating Profit

Million Yen

3Q FY9/22
3Q FY9/21% Million Yen

21,567
15,911

Non-GAAP
Operating Profit

35.5
23.1

4,474
3,205

% Million Yen

39.6
153.1

Profit before tax% Million Yen

4,778
2,999

59.3
110.1

% Million Yen

6,275
3,350

Profit for the period
attributable toowners of theparentProfitfor the period

87.3
163.6

4,112
2,253

% Million Yen

82.5
185.0

4,101
2,254

%

82.0
187.7

(Note) Non-GAAP operating profit is a profit indicator of constant business performance determined by excluding gains and losses related to acquisition
actions such as amortization of acquisition-related intangible assets and M&A expenses, and temporary factors such as amortization of acquisitionrelated intangible assets, gains and losses related to acquisition actions, stock-based compensation expenses, impairment losses and gains or losses on
the sales of fixed assets from the IFRS-based operating profit.

Basic earnings per share
3Q FY9/22
3Q FY9/21

Diluted earnings per share

Yen

Yen

22.72
17.82

22.66
17.75

(2) Consolidated Financial Position
Total Assets

3Q FY9/22
FY9/21Equity attributable to ownersof the parent

Total Equity

Ratio of equity attributable toowners of the parent to total
assetsMillion Yen

Million Yen

Million Yen%

85,92342,011

61,07718,44561,034
18,42671.0
43.9

2. Dividend Conditions
End of 1Q
FY9/21
FY9/22
FY9/22Estimate

Dividends
End of 3Q

End of 2Q

Term-end

Total

Yen

Yen

Yen

Yen

Yen

―
―

―
―

―
―

3.40

3.40

3.90

3.90

(Note) Changes in dividends estimates during the most recent quarter: Yes

3. Consolidated Financial Results Forecast for the Fiscal Year Ending September 30, 2022 (From October 1, 2021 toSeptember 30, 2022)
Revenue
Full Year

Non-GAAP Operating profit(% figures represent year-over-year change)
Profit for the period
attributable to owners of the
Basic earnings per shareparentMillion Yen%

Million Yen%

Million Yen%

Yen

30,000

40.3

6,000

58.1

4,850

86.2

25.71

(Note) Changes in consolidated earnings estimates during the most recent quarter: Yes

*Annotation(1) Important changes in subsidiaries, including changes in the scope of consolidation: None
(2) Changes in accounting methods, procedures, presentation methods
Changes in accounting policies required by IFRSs:
None
Other changes in accounting methods:
None
Changes in accounting estimates:
None(3) Shares issued (common stock)
Shares issued as of term-end (incl. Treasury stock):
Treasury stock as of term-end:
Average number of shares outstanding:

3Q FY9/22
3Q FY9/22
3Q FY9/22

211,079,654 FY9/21
1,739,243 FY9/21
180,496,836 3Q FY9/21

138,916,500
12,463,440
126,453,060*The summary of consolidated financial results for the fiscal year is not subject to the auditing by the Certified Public
Accountants or the audit corporation.
*Disclaimer regarding appropriate use of forecasts and related points of note
(1) Regarding Consolidated Financial Results Forecast
Any description regarding the future in this material, such as financial results forecast and future outlook, is basedon the available information and certain conditions which the Company believes to be reasonable at this time, and actual
financial results may be substantially different from the forecast due to various factors.
For the conditions which the forecast is based on, please refer to “1. Qualitative Information on Results for theNine Months Ended June 30, 2022 (2) Explanation of Consolidated Earnings Forecasts and Other Forward-Looking
Information.”(2) Appendix
The Company will hold a financial results briefing as below. The briefing materials will be available on the website
after this summary is disclosed. The audio archive of briefing will be also available on the website.
August 9, 2022 (Tue.) - FY9/22 3rd Quarter Financial Results Briefing for Institutional Investors, Analysts and the Press

Index1. Qualitative Information on Results for the Nine Months Ended June 30, 2022….……………………………… 2(1) Explanation for Earnings Performance………………………………………………………………………. 2(2) Explanation of Consolidated Earnings Forecasts and Other Forward-Looking Information………………... 3
2. Quarterly Consolidated Financial Statements and Key Notes…………………………………………………… 4(1) Quarterly Consolidated Statement of Financial Position ……………………………………………………
4(2) Quarterly Consolidated Statement of Profit or Loss…………………………………………………………
6(3) Quarterly Consolidated Statement of Comprehensive Income………………………………………………
7(4) Quarterly Consolidated Statement of Changes in Equity …………………………………………………… 8(5) Quarterly Consolidated Statement of Cash Flow……………………………………………………………. 9(6) Notes on Quarterly Consolidated Financial Statement ....…………………………………………………… 10(i) Notes Relating to Assumptions for the Going Concern ………………………………………………… 10(ii) Information on Reportable Segments ………………………………………………………………….. 10-1-

1. Qualitative Information on Results for the Nine Months Ended June 30, 2022
(1) Explanation for Earnings Performance
In the 3Q of the current fiscal year, in the main Digital Marketing Business, both revenue and profits
increased due to organic growth and the promotion of the alliance with the Dentsu Group, as well as the effects
of new consolidation. In the Media Platform Business, growth in the Manga Content Business led to anincrease in revenue, and the extent of the loss narrowed.
As a consequence, revenue was ¥21,567 million (up 35.5% year on year), operating profit was ¥4,474
million (up 39.6% year on year), Non-GAAP operating profit was ¥4,778 million (up 59.3% year on year), andprofit attributable to owners of the parent was ¥4,101 million (up 82.0% year on year).
The Group discloses consolidated business results in terms of both its internal measures which
management relies upon in making decisions (hereinafter the “Non-GAAP financial measures”) and thoseunder IFRS. Non-GAAP operating profit is a profit indicator of constant business performance determined by
excluding gains and losses related to acquisition actions and temporary factors from the IFRS-based operating
profit. Management believes that the disclosure of Non-GAAP financial measures facilitates comparison
between the Group and peer companies in the same industry or comparison of its business results with those ofprior fiscal years by stakeholders, and can provide useful information in understanding the underlying businessresults of the Group and its future outlook. Gains and losses related to acquisition actions refer to amortizationof acquisition-related intangible assets and M&A expenses, and unusual items refer to one-off items, such as
stock-based compensation expenses, impairment loss and gains or losses on sales of non-current assets, that theGroup believes shall be excluded for the purposes of preparing a future outlook based on certain rules.
Reconciliation from operating profit to Non-GAAP operating profit and Net Sales are as below:(unit: ¥mn)
3Q FY2021(Previous Consolidated
Cumulative 3Q)

Operating profit

3Q FY2022(Current Consolidated
Cumulative 3Q)

Change

3,205

4,474

1,269

－

20

20

137

101

-36

-371

－

371

Adjustment (Others)

27

182

155

Non-GAAP operating profit

2,999

4,778

1,779

Adjustment (Amortizationof acquisition-related
intangible assets)
Adjustment (Stock-based
compensation expenses)
Adjustment (Gains onsales of subsidiaries)-2-

Percentage
of change

39.6%

59.3%

Operating results by reportable segment are as follows.
(i) Digital Marketing Business
The Digital Marketing Business provides comprehensive support for corporate digital transformation(DX), centered on digital marketing.
In the quarter under review, the sales increased due to organic growth and the effects of new
consolidation. In addition, the proportion of sales accounted for by the alliance with the Dentsu Group
increased compared with the previous fiscal year, and the number of cooperative clients with the Dentsu Group
increased.
As a consequence, revenue was ¥19,474 million (up 38.7% year on year) and Non-GAAP operating
profit was ¥7,300 million (up 36.5% year on year).
(ii) Media Platform Business
The Media Platform Business consists of Manga Content Business “GANMA!”, Recruitment Platform
Business “ViViViT”, Social Contribution Business “gooddo”, Childcare Platform Business “Babyful” etc.
In the quarter under review, revenue increased as billing revenue in the Manga Content Businessexpanded compared with the previous fiscal year, and the extent of the loss decreased.
As a result, it recorded revenue of ¥2,315 million (up 7.9% year on year) and Non-GAAP operating lossof ¥703 million (compared to Non-GAAP operating loss of ¥834 million in the previous year).
(2) Explanation of Consolidated Earnings Forecasts and Other Forward-Looking Information
Regarding the full-year consolidated earnings estimates for the fiscal year ending September 2022, theCompany revised its estimates announced on February 10, 2022, in consideration of the quarterly results underreview. Please refer to “Notice of Revision of Earnings Estimates, Year-End Dividend Forecast and Recordingof Valuation Gain on Securities Held” announced on August 9, 2022.

-3-

2. Consolidated Financial Statements and Key Notes(1) Quarterly Consolidated Statement of Financial Position(Thousand yen)
FY2021(Ended September 30, 2021)
AssetsCurrent assets
Cash and cash equivalents
Trade receivables
Inventories
Other financial assets
Other current assets
Total current assets
Non-current assets
Property, plant and equipment
Right-of-use assets
Goodwill
Intangible assets
Investments accounted for using equity
methodOther financial assets
Other non-current assets
Deferred tax assets
Total non-current assets
Total assets-4-

3Q FY2022(Ended June 30, 2022)

16,899,990
16,085,450
119,530
12,941
333,62233,451,533

19,414,453
17,674,936
107,408
1,990,078
521,504
39,708,379

310,284
1,653,760―
67,290262,207
1,237,111
4,693,055
504,263

997,026

33,062,153

3,929,443
32,646
1,569,185
8,559,635
42,011,169

4,955,887
29,5201,470,327
46,214,524
85,922,903

(Thousand yen)
FY2021(Ended September 30, 2021)
Liabilities and Equity
Liabilities
Current liabilities
Trade payables
Other financial liabilities
Current income taxes payable
Other current liabilities
Total current liabilities
Non-current liabilities
Other financial liabilities
Provisions
Deferred tax liabilities
Total non-current liabilities
Total liabilities
EquityEquity attributable to owners of parent
Share capital
Capital surplus
Treasury shares
Retained earnings
Other components of equity
Total equity attributable to owners ofparentNon-controlling interests
Total equity
Total liabilities and equity

14,043,615
2,549,116
1,024,502
2,711,491
20,328,724

16,413,246
4,707,886
733,726
2,097,249
23,952,107

3,082,067
155,090
3,237,157
23,565,881

680,384
158,878
55,007894,269
24,846,376

2,125,384
3,901,272-1,691,842
14,322,283-230,678

18,428,004
25,266,185-575,707
18,039,490-123,764

18,426,419

61,034,208

18,86918,445,288
42,011,169

42,31861,076,527
85,922,903－-5-

3Q FY2022(Ended June 30, 2022)

(2) Quarterly Consolidated Statement of Profit or Loss

Revenue
Cost of sales
Gross profit
Selling, general and administrative
expenseOther income
Other expense
Operating profit
Finance income
Finance costs
Share of profit from investments
accounted for using equity method
Profit before tax
Income tax expense
Profit3Q FY2021(From October 1, 2020 toJune 30, 2021)
15,910,589
3,019,719
12,890,870(Thousand yen)
3Q FY2022(From October 1, 2021 toJune 30, 2022)
21,566,758
4,404,408
17,162,351

10,034,168

12,514,844

378,051
29,281
3,205,471
143,725
37,217

12,672
185,8714,474,307
1,244,847
228,60737,905784,448

3,349,884
1,097,097
2,252,787

6,274,996
2,163,101
4,111,894

2,253,893-1,1052,252,787

4,101,282
10,612
4,111,894

17.82
17.75

22.72
22.66

Profit (loss) attributable to:
Owners of parent
Non-controlling interests
Total
Earnings per share
Basic earnings per share (Yen)
Diluted earnings per share (Yen)-6-

(3) Quarterly Consolidated Statement of Comprehensive Income(Thousand yen)

3Q FY2021(From October 1, 2020 toJune 30, 2021)
2,252,787

3Q FY2022(From October 1, 2021 toJune 30, 2022)
4,111,894

92,60841,81033,671

104,023

9,610

6,947

135,890

152,780

Total comprehensive income

2,388,677

4,264,674

Comprehensive income attributable to:
Owners of parent
Non-controlling interests
Comprehensive income

2,389,782-1,1052,388,677

4,254,062
10,612
4,264,674

Profit (loss)
Other comprehensive income
Items that will not be reclassified to profit
or loss
Net changes in financial assets measured
at fair value through othercomprehensive income
Items that may be reclassified to profit orloss
Exchange differences on translating
foreign operations
Cash flow hedges
Total other comprehensive income, net of
tax

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(4) Quarterly Consolidated Statement of Changes in Equity(Thousand yen)
Equity attributable to owners of parent

Balance as of October 1, 2020

SharecapitalCapitalsurplusTreasurysharesRetainedearnings

Other
componentsof equity

Total

Noncontrollinginterests

Total equity

2,125,384

3,664,788-1,691,842

11,971,086-276,037

15,793,379

17,97815,811,357

Quarterly Profit (loss)

－

－

－

2,253,893－

2,253,893-1,1052,252,787

Other comprehensive income

－

－

－

－

135,890

135,890－

135,890

Total comprehensive income
Dividends of surplus
Other
Total amount of transactions
with owners
Balance as of June 30, 2021

－

－

－

2,253,893

135,8902,389,782-1,1052,388,677

－
－

－

－
－

-252,906－－－-252,906
137,092－

137,092-1,895-252,906
135,198－

137,092－-252,906－-115,814-1,895-117,709

2,125,384

3,801,880-1,691,842

13,972,072-140,147

18,067,347

14,97818,082,325(Thousand yen)
Equity attributable to owners of parent

Balance as of October 1, 2021

SharecapitalCapitalsurplusTreasurysharesRetainedearnings

Other
componentsof equity

Total

Noncontrollinginterests

Total equity

2,125,384

3,901,272-1,691,842

14,322,283-230,678

18,426,419

18,86918,445,288

Quarterly Profit (loss)

－

－

－

4,101,282－

4,101,282

10,612

4,111,894

Other comprehensive income

－

－

－

－

152,780

152,780－

152,780

Total comprehensive income
Issuance of new shares
Dividends of surplus
Purchase of treasury stock
Changes due to acquisition ofcontrol over subsidiaries
Other
Total amount of transactions
with owners
Balance as of June 30, 2022

－

－

－

4,101,282

152,780

4,254,062

10,612

4,264,674

16,302,620

16,161,638

－

－

－

32,464,257－

32,464,257

－

－

－

-429,940－-429,940－-429,940

－

－

-26

－

－

-26

－

-26

－

5,102,147

1,116,161－－

6,218,308

14,9026,233,210－

101,128－

45,866-45,866

101,128-2,064

99,063

16,302,620

21,364,913

1,116,135-384,075-45,866

38,353,727

12,83838,366,565

18,428,004

25,266,185-575,707

18,039,490-123,764

61,034,208

42,31861,076,527-8-

(5) Quarterly Consolidated Statement of Cash Flow

3Q FY 2021
(From October 1, 2020 toJune 30, 2021)(Thousand yen)
3Q FY 2022
(From October 1, 2021 toJune 30, 2022)

3,349,884

6,274,996

747,743-9,56924,324

567,705-1,326
19,351-37,905-784,448-360,597-885,837-483,144-113,686
412,573
979,562
4,509,185
24,132-24,534-1,217,236
3,291,548

1,853,171
12,403-497,660-1,325,833
5,232,523
33,628-19,562-2,452,592
2,793,996－

99,931-264,182-86,810-20,137-133,772-34,440-24,421－

162,427

280,439－－-31,312,999

25,954

289,873－
100,000
137,761
173,025-609,149
244,947
56,740-31,260,862-637,506-621,979-252,906－－-1,895-1,514,286-638,556-454,144-429,940
32,402,037-26-2,06430,877,306

33,671

104,023

1,983,958

2,514,463

14,080,864

16,899,990

16,064,822

19,414,453

Cash flows from (used in) operating activities
Profit before tax
Adjustments:
Depreciation and amortization expense
Interest income and dividend income
Interest expenses
Share of (profit) loss of entities accounted
for using equity method
Other
Increase or decrease in working capital
Decrease (increase) in operating receivables
Decrease (increase) in inventories
Increase (decrease) in operating payables
Other
SubtotalInterest and dividend income received
Interest expenses paid
Income taxes paid
Cash flows from (used in) operating activities
Cash flows from (used in) investing activities
Proceeds from sales of short-term investment
securities
Purchase of securities
Purchase of property, plant and equipment
Purchase of intangible assets
Proceeds from acquisition of newly
consolidated subsidiaries
Proceeds from sales of newly consolidated
subsidiaries
Purchases of investments accounted for using
the equity method
Proceeds from collection of lease andguarantee deposits
Payment of loans receivableCollection of loans receivable
Other
Cash flows from (used in) investing activities
Cash flows from (used in) financing activities
Proceeds from long-term borrowings
Repayments of lease obligations
Cash dividends paid
Proceeds from issuance of common stock
Purchase of treasury stock, etc.
Other
Cash flows from (used in) financing activities
Effect of exchange rate change on cash and cash
equivalents
Increase (decrease) in cash and cash equivalents
Cash and cash equivalents at beginning of
periodCash and cash equivalents at end of period-9-(6) Notes on Consolidated Financial Statement(i) Notes Relating to Assumptions for the Going Concern
No applicable items.
(ii) Information on Reportable Segments
1. Overview of reportable segments
The Group has a holding company structure where the Company is a holding company and its
subsidiaries (or their groups) are business units. Activities directly related to revenue generation are conducted
solely by business units, which consist of the Company’s subsidiaries (or their groups).
The Group’s reportable segments are based on business segments for which separate financial
information is available and that the highest decision-maker examines on a regular basis to determine the
distribution of management resources and evaluate the results. In consideration of similarities among the
economic characteristics of each business segment and their quantitative importance and for the purpose of
enabling the users of the financial statements to appropriately evaluate the Group’s businesses and theeconomic circumstances for the businesses and their effects on the businesses, the Group discloses information
on two reportable segments: the Digital Marketing Business and the Media Platform Business.
i. Digital Marketing Business
The Digital Marketing Business consists of business segments that provide comprehensive digitaltransformation support to clients, mainly in the digital marketing domain such as the sales and operation ofadvertisement, as well as providing solutions utilizing data and AI and marketing support in integration of
online and offline through the alliance with the Dentsu Group.
ii. Media Platform Business
The Media Platform Business consists of Manga Content Business “GANMA!”, Recruitment Platform
Business “ViViViT”, Social Contribution Business “gooddo”, Childcare Platform Business “Babyful” etc.
This segment includes business units that have commenced operation in recent years and have not made aprofit due to prior investment for revenue generation. The highest decision-maker makes decisions on the
distribution of management resources to those business units and evaluates their results, assuming risks andeconomic value that allow the Group to recover the investment costs through future revenue generation.
2. Measurement of reportable segments’ profits and losses
Segment profit uses Non-GAAP operating profit based on IFRS adjusted for temporary factors suchas amortization of acquisition-related intangible assets, gains and losses related to acquisition actions, stockbased compensation expenses, impairment losses and gains (losses) on sales of property, plant and equipment.
Non-GAAP operating profit is a profit indicator of constant business performance determined by excluding
gains and losses related to acquisition actions and temporary factors from the IFRS-based operating profit.
Management believes that disclosing Non-GAAP measures facilitates peer and prior year comparisons forstakeholders and provides useful information in understanding our group's permanent results of operations andfuture prospects. Gains and losses related to acquisition actions refer to amortization of acquisition-related
intangible assets and M&A expenses, and temporary factors refer to one-time gains and losses, such as stockbased compensation expenses, impairment losses, and gains and losses on sales of fixed assets, that the Groupconsiders should be excluded based on certain rules from the perspective of preparing future forecasts.
The prices of inter-segment transactions are determined based on the prices of transactions withexternal customers.

- 10 -

3. Information on reportable segments’ profits and losses
Previous consolidated cumulative 3Q (from October 1, 2020 to June 30, 2021)(Thousand yen)
DigitalMarketing
14,036,313

Media
Platform*4
2,146,121

Total

Adjustment

Consolidated-271,846
Segment revenue *1
16,182,434
15,910,589
Segment profit-834,325-1,514,376
5,347,714
4,513,390
2,999,014(loss)*2*3(Notes) 1. Adjustments include the elimination of profit and loss transactions between reportable segments.
2. The segment profit is non-GAAP operating profit.
3. Adjustment includes the elimination of profit and loss transactions between reportable segments andexpenses for the operation of the holding company not attributable to reportable segments. Expenses
related to the operation of the holding company consist mainly of personnel expenses for the holding
company.
4. Segment sales and losses of the Media Platform Business include amounts related to the Medical
Platform Business “Pharmarket,” which was transferred on April 1, 2021.
Current consolidated cumulative 3Q (from October 1, 2021 to June 30, 2022)(Thousand yen)
DigitalMarketingMedia Platform

Total

Adjustment

Consolidated-223,181
Segment revenue *1
19,474,477
2,315,462
21,789,939
21,566,758
Segment profit (loss)-702,741-1,819,057
7,300,077
6,597,337
4,778,280*2*3(Notes) 1. Adjustments include the elimination of profit and loss transactions between reportable segments.
2. The segment profit is non-GAAP operating profit.
3. Adjustment includes the elimination of profit and loss transactions between reportable segments andexpenses for the operation of the holding company not attributable to reportable segments. Expenses
related to the operation of the holding company consist mainly of personnel expenses for the holding
company.
Reconciliation of segment profit (loss) and profit before tax

Segment profit (non-GAAP operating profit)
Selling, general and administrative expense
Amortization of acquisition-related intangible assets
Stock-based compensation expenses
Other profit (loss) (net)
Financial profit (loss) (net)Share of profit of entities accounted for using equity
methodProfit before tax

3Q FY2021(From October 1, 2020 toJune 30, 2021)
2,999,014(Thousand yen)
3Q FY2022(From October 1, 2021 toJune 30, 2022)
4,778,280－-137,092
343,549
106,508-20,409-101,128-182,436
1,016,240

37,905784,448

3,349,884

6,274,996- 11 -