Note: This document has been translated from the Japanese original for reference purposes only. In the event of any discrepancy
between this translated document and the Japanese original, the original shall prevail.
August 9, 2024

Summary of Consolidated Financial Results
for the First Quarter Ended June 2024 [Japan GAAP]
Name of Company:
Stock Code:
Stock Exchange Listing:
URL:
Representative
Title:
Name:
Contact Person
Title:Name:
Tel:
Date of commencement of dividend payment (tentative):
Supplementary materials for quarterly financial report:
Information meeting for quarterly financial report:

Startia Holdings, Inc.
3393
Tokyo Stock Exchange
https://www.startiaholdings.com/
Representative Director and President & CEO
Hideyuki Hongo
Director
Takao Uematsu+81-(0)3-5339-2109
Yes
None

(Yen in millions, rounded down)
1. Consolidated financial results for the first three months ended June 30, 2024 (April 1, 2024 – June 30, 2024)(1) Results of operations (cumulative)(Percentage figures represent year-on-year changes)
Profit (loss) attributable
Net sales
Operating profit
Ordinary profit
to owners of parent
Million yen%

Three months ended June 2024
5,258
6.6
Three months ended June 2023
4,934
6.5
Notes: Comprehensive income
First three months ended June 30, 2024:
First three months ended June 30, 2023
Profit per share

Million yen%

Million yen%

Million yen

%

533
634

(16.0)
229.4

589
649

(9.3)
155.4

489
436

12.2
166.9

459 million yen (yoy 2.2%)
449 million yen (yoy 353.1%)
Diluted profit per share

Yen
Yen
Three months ended June 2024
52.10
Three months ended June 2023
46.77
Note: Diluted profit per share is not shown because there are no latent shares.
(2) Consolidated financial position

As of June30, 2024
As of March 31, 2024
Reference: Shareholders’ equity
As of June 30, 2024:
As of March 31, 2024:
2. Dividends

Total assets

Net assets

Equity ratio

Million yen
13,867
14,689Million yen
7,075
6,818

%
50.8
46.2

End of 1Q
Yen
0.00
0.00

7,041 million yen
6,786million yen

End of 2Q
Yen
21.00

Annual dividends
End of 3Q
End of FY
Yen
Yen
0.00
48.00

Fiscal year ended March 2024
Fiscal year ending March 2025
Fiscal year ending March 2025
46.00
0.00
51.00
(forecast)
Note 1
Revisions to the most recently announced dividend forecast: None
2
Breakdown of the year-end dividend for the fiscal year ended March 2024

1

Total
Yen
69.00
97.00

Ordinary dividend: 37.00 yen

Commemorative dividend: 11.00 yen

3. Consolidated earnings forecasts for the fiscal year ending March 31, 2025 (April 1, 2024 – March 31, 2025)(Percentage figures represent year-on-year changes)
Profit attributable toProfit per
Net sales
Operating profit
Ordinary profit
owners of parent
shareMillion yen
10,520Million yen
1,200

%
(8.4)

Million yen
792

%
(6.9)

Yen
84.53

Full year
21,200
8.3
2,500
9.5
2,500
Note: Revisions to the most recently announced sales and earnings forecasts: None

10.9

1,650

6.7

176.10First half%
6.2

Million yen
1,200

%
(7.0)

* Notes(1) Significant changes in the scope of consolidation during the period: None
Newly included:
Excluded:(2) Use of accounting methods that are specific to the preparation of the quarterly consolidated financial statements: None
(3) Changes in accounting policies, changes in accounting estimates, and restatements(a) Changes in accounting policies accompanying revisions in accounting standards and other regulations: Yes(b) Changes other than in (a): None(c) Changes in accounting estimates: None(d) Restatements: None
(4) Number of issued shares (common shares)(a) Total number of issued shares at the end of the period (including treasury shares)
As of June 30, 2024: 10,240,400 shares(b) Number of treasury shares at the end of the period

As of March 31, 2024: 10,240,400 shares

As of June 30, 2024: 625,830 shares
As of March 31, 2024: 870,770 shares(c) Average number of shares during the period (quarterly consolidated cumulative period)
Period ended June 30, 2024: 9,402,729 shares(Note) 1.

2.

Period ended June 30, 2023: 9,336,734 shares

The number of treasury shares at the end of the period includes the Company's shares held by the trust accounts
regarding the Stock Benefit Trusts (BBT and BBT-RS, J-ESOP and J-ESOP-RS) : 447,360 shares for the firstquarter of the current year ending March 31, 2025 and 692,660 shares for the fiscal year ended March 31, 2024.
As for the average number of shares during the period, the Company’s shares held by the trust accounts regarding
the Stock Benefit Trusts (BBT and BBT-RS, J-ESOP and J-ESOP-RS) : 659,341 shares for the first quarter of thecurrent year ending March 31, 2025 and 325,600 shares for the first quarter of the fiscal year ended March 31, 2024
were included in the number of treasury shares, which were to be deducted from the calculation of the average
number of shares during the period.

* Review of the consolidated quarterly financial statements by certified public accountants or an audit firm attached: None
* Explanation of the proper use of these earnings forecasts and other matters(Note on forward-looking statements)
The forward-looking statements shown in this report are based on information currently available and certain assumptions that theCompany regards as reasonable. The Company cautions that these statements do not guarantee future achievements. Actual resultsof operations may differ significantly from forward-looking statements for a number of reasons. Please refer to “1. Overview ofresults of operations (3) Explanation of consolidated earnings forecasts and other forward-looking statements” on page 4 for the
suppositions that form the assumptions for earnings forecasts and cautions concerning the use thereof.

2

1. Overview of results of operations(1) Overview of results of operations in the first quarter of the fiscal year
During the first quarter of the fiscal year ending March 2025, the Japanese economy continued to move towardnormalization of economic activities, as evidenced by the expansion of inbound demand due to the increase in thenumber of foreign visitors to Japan. On the other hand, the future of economic activities in Japan remains
uncertain due to concerns about the impact on the domestic economy of volatile foreign exchange risks and thegeopolitical risks such as the prolonged Ukraine crisis and the conflict in the Middle East.
In this business environment, the IT Infrastructure business in our Group has attracted a wide range of interest
from environmental improvement for the digital shift of business operations to the area of digital transformation(DX), resulting in a continued increase in demand for improvements in the office network infrastructure
environment, including response to cybersecurity. In addition, BUSINESS SERVICE CO., LTD., which became aconsolidated subsidiary of the Company in October 2023, and FUJIFILM BI Nara Corp., which is a joint venture
established with FUJIFILM Business Innovation Japan Corp. (“FUJIFILM Business Innovation Japan”) andstarted operation on April 1, 2024, showed a strong start-up. All of these led to the establishment of a more stablecustomer base and revenue base through both organic growth and M&A-led growth.
In the Digital Marketing business, the Company continued to provide "Cloud CIRCUS," a digital marketing tool,
which helps customer companies to "increase and nurture their customers," as a subscription model (recurringbilling type). We focused not only on direct sales, but also on developing customer referrals and partner sales toexpand sales channels. In particular, in the first quarter of the fiscal year under review, the segment has become
profitable as a single segment as planned, thanks to a customer base and structure established in the previous fiscal
year, which allows us to grow business without large investments in development and advertising.
As a result, sales in the first quarter of the current fiscal year totaled 5,258,801 thousand yen (up 6.6% from a year
before), operating profit of 533,259 thousand yen (down 16.0 % from a year before), ordinary profit of 589,161
thousand yen (down 9.3 % from a year before), and net profit attributable to shareholders of the parent of 489,916
thousand yen (up 12.2 % from a year before).
Business segment results were as follows.
(Digital Marketing)In the Digital Marketing business, the Group provides “Cloud CIRCUS,” a group of SaaS tools that help solve
issues in five areas to increase the number of customers: transmission of information, attracting customers,
enhancing experienced value of customers, fostering customers and turning potential customers into actual
customers, and increasing repeated customers and preventing cancellations of contracts. Cloud Circus is an easyto-use tool that everyone can start and use quickly even if he/she engages in digital marketing for the first time
ever. We also provide freemium plans for the service. On top of Cloud Circus, we provide marketing consulting
and operational support based on our expertise for the management of advertising and establishment of websites.
By providing comprehensive support for the evolution of marketing power, together with the tools, we respond to
the potential need for shifting to digitalization and provide multiple services to a single customer.
In the first quarter of the fiscal year, one-time revenues struggled as web production orders remained weak. On theother hand, "Fullstar," a customer success management tool (CSM tool) in the "Cloud CIRCUS" subscription
model digital marketing tool group, won the "Leader" award for the first time. It is the highest award in the3

Customer Success Tool category (in the small and medium-size enterprise (SME) division) of the "ITreview Grid
Award 2024 Spring." The marketing automation tool "BowNow" was also awarded "High Performer" in the MA
category of the same award, and was highly evaluated for its excellent user satisfaction.
In addition, for Fullstar, we have concluded a distributor agreement with adish Co., Ltd. (Head Office: Shinagawaku, Tokyo; CEO: Hiroki Edo; Securities code: 7093), a customer success solutions provider specializing in thedigital economy while strengthening our support for introduction to more companies.
Furthermore, an AI-type chatbot "IZANAI powered by OpenAI" ("IZANAI-OpenAI") was developed andlaunched. Leveraging OpenAI's technology to achieve highly natural language processing, we contributed to
improving the operational efficiency and productivity of SMEs. The addition of new services in each of the above
tools, continuous strengthening of sales channels, brand enhancement, and the effect of the price increase
implemented at the end of the previous fiscal year resulted in strong stock sales from subscription models.

Consequently, segment sales in the first quarter of the current fiscal year totaled 894,405 thousand yen (up 6.3%
from a year before) , and the segment profit (operating profit) of 114,294 thousand yen (up 251.9% from a year
before).
(IT Infrastructure)
In the IT infrastructure business, one-time sales fared well in the first quarter of the fiscal year driven by a strong
sales of network-related equipment, reflecting growing needs for cyber security measures among SMEs, as well as
healthy sales of business phones for replacements and other products. In addition, BUSINESS SERVICE CO.,LTD. became a consolidated subsidiary of the Company in October 2023, and FUJIFILM BI Nara Corp. started
operations in April 2024, both of which allowed us to further increase sales. On the other hand, segment income
decreased yoy due to a decline in electricity stock revenues resulting from further cancellations in electricity
retailing business, up to the previous fiscal year, normalized demand in the current fiscal year after sales boom atsome partners in the previous first quarter, and the impact of higher personnel expenses due to the hiring of 59 new
graduates in the IT infrastructure business in April 2024. Still, the segment income exceeded the internal plan as
the decline in segment income had been factored into the plan.

Consequently, segment sales totaled 4,363,618 thousand yen (up 6.6% from a year before) and the segment profit(operating profit) of 381,588 thousand yen (down 31.2% from a year before).
(CVC)
In the CVC business, there were no new investments.

Consequently, the segment reported no sales and the segment loss (operating loss) of 249 thousand yen(same amount as in the same period in the previous fiscal year) in the first quarter of the fiscal year.
(2) Overview of financial position in the first quarter of the fiscal year
Total assets were 13,867,769 thousand yen at the end of the first quarter, 821,734 thousand yen less than at the endof the previous fiscal year. This was attributable primarily to the decreases of 343,022 thousand yen in cash anddeposits, 206,775 thousand yen in other current assets, 157,939 thousand yen in inventories, despite the increase of
22,852 thousand yen in property, plant and equipment.

4

Liabilities were 6,792,763 thousand yen at the end of the first quarter, 1,078,251 thousand yen less than at the endof the previous fiscal year. This was attributable primarily to the decreases of 313,970 thousand yen in income
taxes payable, 280,028 thousand yen in long-term borrowings, 185,638 thousand yen in accounts payable-other,
189,406 thousand yen in accounts payable-trade, and 154,774 thousand yen in provision for bonuses, despite theincrease of 274,191 thousand yen in other current liabilities.
Net assets were 7,075,005 thousand yen at the end of the first quarter, 256,516 thousand yen more than at the endof the previous fiscal year. This was attributable primarily to net profit attributable to shareholders of the parent of
489,916 thousand yen and the decrease of 280,288 thousand yen in treasury shares, albeit the decrease of 32,331
thousand yen in valuation difference on available-for-sale securities and dividend payment of 482,98 thousandyen.

5

(3) Explanation of consolidated earnings forecasts and other forward-looking statements
In the fiscal year ending March 2025, the Startia Group will see the final year of the “Medium-Term Management
Plan, ‘NEXT’S 2025’” (hereafter, the Medium-Term Management Plan), on which we announced the revision firstin the "Notice of Revision to the Medium-Term Management Plan ‘NEXT'S 2025,’" released on May 12, 2023,
and again in the "(Correction) Partial Correction to the (Revised) Medium-Term Management Plan ‘NEXT'S
2025,’" released on May 23, 2023.
Since the fiscal year ended March 2021, we have shifted our business model to a subscription model in the DigitalMarketing business, in which the revenue earned at one time from customers is small but accumulates
continuously as stock, and have concentrated our management resources by making large investments indevelopment and advertising. As a result, we were able to make the segment profitable in the fiscal year ended
March 2024. We will continue to promote further profit growth by expanding sales of the Cloud CIRCUS tools
through direct sales and partner development, and by promoting the use of multiple tools through cross-selling.
In the IT Infrastructure business, we have completed a total of four M&A transactions (including business
transfers) during the period from the fiscal year ended March 2021 to the fiscal year ended March 2024, which
contributes to the expansion of our customer base and increases in sales and profits. We will continue to achieve
further business growth through organic growth as well as by expanding our customer base through M&A andpromoting alliances.
We are focusing on the cross-selling of products and services, chiefly involving sales that generate steady revenue
streams, which is a key strength of the Startia Group. At the same time, we aim to improve productivity and use
our position as a comprehensive IT services organization for evolving to a more advanced business operation. By
taking these actions, we are committed to the continuation of significant medium to long-term growth of earnings.
For the year ending March 2025, we forecast consolidated net sales of 21,200 million yen (up 8.3% from theprevious fiscal year), consolidated operating profit of 2,500 million yen (up 9.5% from the previous fiscal year),consolidated ordinary profit of 2,500 million yen (up 10.9% from the previous fiscal year) and profit attributable toowners of parent of 1,650 million yen (up 6.7% from the previous fiscal year).
(Note) Forward-looking statements described in the text, including the annual earnings forecast, do not guarantee
future performance and they include risks and uncertainties because there are various factors such as unforeseeablechanges in the economic situation.

6

2. Quarterly consolidated financial statements and significant notes thereto(1) Quarterly consolidated balance sheets(thousand yen)
As of March 31, 2024
AssetsCurrent assets
Cash and deposits
Notes and accounts receivable - trade and contract
assetsOperational investment securities
Inventories
Other
Allowance for doubtful accounts
Total current assets

As of June 30, 2024

7,366,570

7,023,548

2,964,108

2,954,379

143,662
367,073913,239(194,399)

152,254
209,133
706,463(197,069)

11,560,254

10,848,710

Non-current assets
Property, plant and equipment
Intangible assets
Goodwill
SoftwareOther

232,325

255,177

463,594
1,001,073
5,433

445,555
983,430
5,245

Total intangible assets

1,470,101

1,434,231

Investments and other assets
Investment securities
Deferred tax assets
Guarantee deposits
Other

388,374
613,913305,196
119,337

373,427
530,753
301,596
123,871

1,426,821

1,329,648

3,129,248

3,019,058

14,689,503

13,867,769

1,393,625
1,100,000
1,336,784
679,906
303,733
329,135
290,377
125,844
321,930
140,630

1,204,218
1,100,000
1,282,618
494,267
325,894
15,164
231,942
162,036
167,156－

36,1308,746

77,392351,583

Total current liabilities

6,135,490

5,343,629

Non-current liabilities
Long-term borrowings
Deferred tax liabilities
Other

1,715,922
17,6391,962

1,435,894
11,468
1,771

1,735,524

1,449,134

7,871,015

6,792,763

Total investments and other assets
Total non-current assets
Total assets
Liabilities
Current liabilities
Accounts payable-trade
Short-term borrowings
Current portion of long-term borrowings
Accounts payable-otherAccrued expenses
Income taxes payable
Accrued consumption taxes
Advances received
Provision for bonuses
Provision for share awards
Provision for share awards for directors (and otherofficers)
Other

Total non-current liabilities
Total liabilities
Net assets

7

(thousand yen)
As of March 31, 2024
Shareholders’ equity
Share capital
Capital surplus
Retained earnings
Treasury shares
Total shareholders’ equity

As of June 30, 2024

824,315
1,162,614
5,676,306(1,019,593)

824,315
1,162,614
5,683,232(739,304)

6,643,643

6,930,858

Accumulated other comprehensive income
Valuation difference on available-for-sale securities

142,864

110,533

Total accumulated other comprehensive income

142,864

110,533

Non-controlling interests
Total net assets
Total liabilities and net assets

8

31,98033,6136,818,488

7,075,005

14,689,503

13,867,769

(2) Quarterly consolidated statement of income and comprehensive income
Quarterly consolidated statement of income
For the first quarter (April 1 – June 30)(thousand yen)
April 1, 2023 –June 30, 2023

April 1, 2024 –June 30, 2024

Net sales
Cost of sales

4,934,684
2,628,864

5,258,801
2,937,982

Gross profit

2,305,819

2,320,818

Selling, general and administrative expenses

1,670,840

1,787,559

634,979

533,259

2,463
14,401
1,311

186
12,78043,005

Operating profit
Non-operating income
Dividend income
Foreign exchange gains
Share of profit of entities accounted for using equity
methodOther
Total non-operating income
Non-operating expenses
Interest expenses
Non-recoverable consumption tax
Other
Total non-operating expenses
Ordinary profit

1,443

9,190

19,61965,163

3,725
1,284
63

5,028
2,455
1,776

5,074

9,260

649,525

589,161－

2,654

Extraordinary income
Gain on sale of investment securities
Total extraordinary income
Profit before income taxes

－

2,654

649,525591,816

Income taxes-current
Income taxes-deferred

102,548
110,289

5,655
94,611

Total income taxes
Profit (loss)

212,838

100,267

436,686

491,549－

1,633

436,686

489,916

Profit (loss) attributable to non-controlling interests
Profit (loss) attributable to owners of parent

9

Quarterly consolidated statement of comprehensive income
For the first quarter (April 1 – June 30)(thousand yen)
April 1, 2023 – June 30, 2023

April 1, 2024 – June 30, 2024

436,686

491,549

12,478(32,331)

Profit (loss)
Other comprehensive income
Valuation difference on available-for-sale securities
Total other comprehensive income

12,478(32,331)

Comprehensive income

449,164

459,218

Comprehensive income attributable toComprehensive income attributable to owners ofparentComprehensive income attributable to non-controllinginterests

449,164

457,584

－

1,633

10

(3) Notes to quarterly consolidated financial statements(Notes to going concern assumptions)
No items to report(Notes to significant changes in shareholders’ equity)
In the first quarter of the current fiscal year, 245,300 shares were transferred from the "Stock Benefit Trusts(BBT and BBT-RS, J-ESOP and J-ESOP-RS)" to the eligible employees.
As a result, treasury shares decreased 280,288 thousand yen in the first quarter of the fiscal year.
(Changes in accounting policies)
The "Accounting Standard for Current Income Taxes" (ASBJ Statement No. 27, October 28, 2022, hereinafter,the "revised Accounting Standard 2022") and other related regulations have been applied from the beginning of
the first quarter of the current fiscal year.
With respect to the revision regarding the classification of income taxes (taxation on other comprehensive
income), the transitional treatment stipulated in the proviso of paragraph 20-3 of the revised AccountingStandard 2022 and in the proviso of paragraph 65-2 (2) of the "Guidance on Accounting Standard for Tax EffectAccounting" (ASBJ Guidance No. 28, October 28, 2022, hereinafter, the "revised Guidance 2022") wereapplied. This change in accounting policy has no impact on the quarterly consolidated financial statements.
In addition, for the revised accounting treatment for preparation of consolidated financial statements in the casewhere gain/loss on sales of subsidiaries' shares, etc. arising from a transaction between consolidated companies
is deferred for the tax purpose, the Company has applied the revised Guidance 2022 since the beginning of thisfirst quarter. The change in accounting policy has been applied retrospectively, and the quarterly consolidated
financial statements and the full-year consolidated financial statements for the previous fiscal year have been
prepared on a retrospective basis. The change in accounting policy has no impact on the quarterly consolidated
financial statements and the full-year consolidated financial statements for the previous fiscal year.

11

(Segment information, etc.)[Segment information]
I.
1.

For the first quarter ended June 30, 2023 (April 1, 2023 – June 30, 2023)
Information on amounts of sales and profit or loss by reportable segment and on disaggregated revenue(thousand yen)
Reportable segments
DigitalMarketing

Net sales
Goods that are transferred
at a point in time
Goods that are transferredover a certain period of time
Revenue that is generated fromcontracts with customers
Sales to external customers
Inter-segment sales and transfers
Total
Segment profit (loss)

CVC

Subtotal

Other Businesses(note 1)

212,056

2,379,650－

2,591,706－

629,667

1,713,286－

2,342,954－

841,724

4,092,937－

4,934,661－

841,724
2,652
844,377
32,481

4,092,937
14,4204,107,357
554,546

－
－
－
(249)

4,934,661
17,073
4,951,734
586,778－－－(1,045)Total
Net sales
Goods that are transferred
at a point in time
Goods that are transferredover a certain period of time
Revenue that is generated fromcontracts with customers
Sales to external customers
Inter-segment sales and transfers
Total
Segment profit (loss)

IT Infrastructure

Adjustment(note 2)

Amount on
statement ofincome(note 3)2,591,706

22

2,591,729

2,342,954－

2,342,954

4,934,661

22

4,934,684

4,934,661
17,073
4,951,734
585,732

22(17,073)(17,050)
49,246

4,934,684－
4,934,684
634,979

Notes:
1. The “Other” is a business segment that is not included in the reportable segments.
2. The adjustment amount for the inter-segment sales and transfers consists of eliminated inter-segment transactions.
The adjusted amount for segment profit (loss) includes company-wide profit (loss) and the elimination of intersegment transactions.
3. The total segment profit (loss) matches the operating profit (loss) on the quarterly consolidated statement of income.

12II. For the first quarter ended June 30, 2024 (April 1, 2024– June 30, 2024)
1. Information on amounts of sales and profit or loss by reportable segment and on disaggregated revenue(thousand yen)
Reportable segments
DigitalMarketing
Net sales
Goods that are transferred
at a point in time
Goods that are transferredover a certain period of time
Revenue that is generated fromcontracts with customers
Sales to external customers
Inter-segment sales and transfers
Total
Segment profit (loss)

CVC

Subtotal

Other Businesses(note 1)

167,159

2,600,181－

2,767,340－

727,245

1,763,437－

2,490,683－

894,405

4,363,618－

5,258,024－

894,405
2,811
897,216
114,294

4,363,618
22,3084,385,927
381,588

－
－
－
(249)

5,258,024
25,1195,283,143
495,632

－
－
－
(635)

Total
Net sales
Goods that are transferred
at a point in time
Goods that are transferredover a certain period of time
Revenue that is generated fromcontracts with customers
Sales to external customers
Inter-segment sales and transfers
Total
Segment profit (loss)

IT Infrastructure

Adjustment(note 2)

Amount on
statement ofincome(note 3)2,767,340

777

2,768,118

2,490,683－

2,490,683

5,258,024

777

5,258,801

5,258,024
25,1195,283,143
494,997

777(25,119)(24,342)
38,262

5,258,801－
5,258,801
533,259

Notes:
1. The “Other” is a business segment that is not included in the reportable segments.
2. The adjustment amount for the inter-segment sales and transfers consists of eliminated inter-segment transactions.
The adjusted amount for segment profit (loss) includes company-wide profit (loss) and the elimination of intersegment transactions.
3. The total segment profit (loss) matches the operating profit (loss) on the quarterly consolidated statement of income.
(Notes to Statements of Cash Flows)
Quarterly consolidated statements of cash flows for the first quarter of the current fiscal year have not been prepared.
Depreciation (including amortization related to intangible assets excluding goodwill) and amortization of goodwill forthe first quarter of the fiscal year are as follows.
(thousand yen)
April 1, 2023 –June 30, 2023

April 1, 2024 –June 30, 2024

81,40013,894102,494
18,039Depreciation
Amortization of goodwill

13