Supplementary Briefing Material on
Financial Results for the 1Q of FY2024
Impress Holdings, Inc.
(TSE Standard：9479）
August 13, 2024

Disclaimer
This document has been translated from the Japanese original for reference
only. In the event of any discrepancy between this translated document
and the Japanese original, the original shall prevail.
Any forward-looking statements contained in this document are based on
current information and may be subject to change due to macroeconomic
trends, market conditions, industry trends related to the Company, andother internal and external factors. The Company does not indicate orguarantee the accuracy or completeness of the information included in thisdocument.
Copyright © Impress Holdings, Inc. All Rights Reserved.

1

Financial Results for the 1Q of FY2024(April 1, 2024 to June 30, 2024)

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Highlights of Financial Results for the 1Q of FY2024 : Part1
 In the previous consolidated fiscal year, an operating loss was recorded due to the decline in profitability ofthe Publishing business. In the current consolidated fiscal year, taking into account the situation in theprevious fiscal year, we aim to return to profitability in operating income by working to restore profitability
through the improvement of product added value, based on the liquidation of unprofitable products and thereduction of fixed costs through business restructuring, particularly in the Publishing business.
 In 1Q, although Internet media and Platform business recorded higher sales, Publishing/E-publishingbusiness recorded lower sales due to a significant reduction in the number of publications following thebusiness restructuring implemented in the previous fiscal year, resulting in consolidated sales of 3,166
million yen（－3.5％/-116 million yen y/y）.
 Despite the decline in sales, the marginal profit ratio improved slightly from the previous year due to theimprovement in Internet media, magazines and mooks, which offset the absence of good-selling title(ChatGPT-related book) in the previous year, and fixed costs were reduced as expected due to theimplementation of business restructuring, etc. As a result, operating income was -184 million yen (+7million yen y/y), covering the impact of lower sales and slightly narrowing the loss.
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3

Highlights of Financial Results for the 1Q of FY2024 : Part2
 In Publishing/E-publishing, sales of magazines and books increased due to price raise and improved sales
despite the liquidation of unprofitable products, and sales of backlist books increased slightly despite aslower-than-expected decrease in returns and weak shipments, while sales of new publications decreased
significantly due to a reduction in the number of publications (-28 titles) as a result of businessrestructuring and in response to lack of good-selling titles published in the previous fiscal year, resulting insales of 1,587 million yen (-7.1%/-120 million yen y/y).
 In Internet media, sales were 479 million yen due to steady growth of digital advertising, especially in theIT segment, as well as increased sales of Minecraft content(+12.3%/+52 million yen y/y).
 In Target media, sales were 195 million yen due to lower sales in targeting advertisements. （－6.6％/－13
million yen y/y）.
 In Platform business, sales were 650 million yen due to steady growth of the E-comic PF and Digimart.（＋4.9％/＋30 million yen y/y）.

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4

Consolidated Financial Results for FY2024 1Q(Million yen)

FY2024 (current)
1Q

FY2023 1Q
ResultResult

Y/Y

Net Sales

3,283

3,166

－3.5％

－116

Operating Profit

－192

－184

－＋7Ordinary Profit－166－161－＋5Profit－182－174－＋7Copyright © Impress Holdings, Inc. All Rights Reserved.

5

Development of Consolidated Financial Results（3 period comparison）■Operating Profit & Operating Profit Margin■ Net Sales

Net sales decreased due to a reduction in the numberof publications as a result of business restructuring.

4,000
3,000

3,480
699

150

3,283
＋5％

619

3,166
650

2,000
1,000

The impact of lower sales was offset by lower fixed
costs due to business restructuring, but profitability
remained at the previous year's level.

1005002,780

FY22 1Q
Content Business

2,663 －6％ 2,516

FY23 1Q

FY24 1Q

Platform Business

4%

3.0%

2%

1030%
FY22 1Q(50)

FY23 1Q

FY24 1Q-192-184-2%

(100)

-4%

(150)

-6%

-5.9％

-5.8％

(200)

-8%
Operating Profit

Operating Profit Margin

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6

Consolidated Financial Results for FY2024 1Q
Marginal Profit Comparison
FY2024 (current)
1Q

FY2023 1Q
Result(Million yen)

Result

Y/Y

3,283

3,166

－3.5％

－116

1,606

1,538

－4.3％

－68

Marginal Profit

1,676

1,628

－2.8％

－47

Fixed Costs

※2

1,868

1,813－3.0％－55

Operating Profit－192－184－＋7

Marginal Profit Ratio

51.1%

51.4%

Net Sales
Variable Costs※1＋0.4pt※1 Variable costs are aggregated from cost of sales (material costs, subcontracting costs, etc.) and selling expenses, etc.
※2 Fixed costs are aggregated from cost of sales (labor and overhead, etc.) and general and administrative expenses, etc.

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7

Factors Affecting Increase in Operating Profit for FY2024 1Q(Million yen)

FY2024 1Q
operating profit
Decrease in
fixed costs
Increase in
marginal profit ratio
Decrease in sales －59
FY2023 1Q
operating profit

－184
＋55
＋11－184

Reduction of personnel and other costs
through implementation of businessrestructuring, etc.
Marginal profit ratio improved 0.4 pt,
absorbing the rebound from lack of goodselling titles in the previous year.

＋7

Impact of decrease in sales in
Publishing/E-publishing, etc.

－192

－192

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8

Overview of Financial Resultsby Business Category & Segment

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FY2024 Q1 Consolidated Net Sales by Business Category(Million yen)

Business category

FY23 1Q
Result

FY24 1Q (current)
Result

Y/Y2,663

2,516－5.5％

－146

1,708

1,587－7.1％－120

Internet media

427479＋12.3％＋52

Target media

209

195－6.6％－13

Solution

318

253－20.4％

－65

619

650＋4.9％

＋30

3,283

3,166－3.5％－116

Content business
Publishing/Electronic publishing

Platform business
Total

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10Summary of Net Sales by Business Category for FY2024 1Q(Million yen)

Platform
Solution

The steady growth of transaction volume in the Ecomic PF and Digimart.
Decrease due to lack of major artist-related projects
commissioned in the previous fiscal year, etc.

Publishing/E-Pub
FY23 1Q Sales＋30－65－13Target media
Internet media

3,166

3,166

FY24 1Q Sales

Revenue increased due to steady growth in digitaladvertising as well as increased sales of Minecraft
content.
Sales of new titles decreased due to a reduction in thenumber of publications as a result of businessrestructuring and the absence of a good-selling title(ChatGPT-related books) published in the previous year.

3,283－116＋52－120

3,283

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11FY2024 1Q Net Sales by Business Category:Content Business■ Net Sales of Content Business
3,000

2,0001,0000(Million yen)

2,663

2,516

318
209253
195

427

479

1,708

1,587

FY23 1Q

FY24 1Q

Publishing/E-PubInternet media

Target media

SolutionContent Business：－5.5％（－146M）
 Publishing/E-Publishing ：－7.1％（－120M）
Although magazines and mooks remained firm, sales
declined significantly due to a reduction in the numberof new publications as a result of business restructuring
and the absence of good-selling titles published in theprevious fiscal year.
 Internet media ：＋12.3％（＋52M）
Sales increased due to steady growth in digitaladvertising, mainly in IT segment, and an increase in
Minecraft content sales.
 Target media ：－20.4％（－65M）
Decline due to a reaction to lack of major artist-related
projects commissioned in the previous fiscal year, etc.
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12FY2024 1Q Net Sales by Business Category:Content Business – Publishing/E-publishing■ Content Business:
Net Sales of Publishing/Electronic Publishing
1,800

1,708

1,600

221

1,400
1,200

560

1,000(Million yen)

1,587
206
566

800

923

7982000Books

FY23 1Q
Magazines/Ads/Mooks

FY24 1Q
E-publishing Books ： －13.5％（－124M）
Sales of new publications decreased due to areduction in the number of publications (-28 titles) as
a result of business restructuring and in response tothe lack of a good-selling title (ChatGPT-related book)published in the previous fiscal year in IT, while salesof backlist books increased slightly despite a slowerthan-expected decrease in returns and weak
shipments.
 Magazines/Ads /Mooks ：+1.1％（+6M）
Although the number of publications was reduced (-5titles) due to the liquidation of unprofitable titles, sales
increased due to price raise and sales improvement.

600
400

Publishing/E-publishing ： －7.1％（－120M）

Others E-publishing ： －7.1％（－15M）
Remained weak overall.
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13FY2024 1Q Net Sales by Business Category:
Platform Business■ Net Sales of Platform Business(Million yen)650619600

70698385
400

2000118106377358

FY23 1Q

FY24 1Q

E-Comic PF

Digimart

POD PF

Publishing/E-pub PF

Platform Business ：＋4.9％（＋30M）
 E-Comic PF ：＋5.3％（＋19M）
Remained steady due to sales growth in overseas
projects as well as by the newly commissioned
project started in the previous year.
 Digimart ：＋12.0％（＋12M）
Transaction volumes remained steady and payment
service income from music shops increased.
 POD PF ：－2.9％（－2M）
Sales declined due to few good-selling titles in thePOD service for individuals.

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14

FY2024 1Q Net Sales and Operating Profit by Segment(Million yen)S egm ent

Net sales
Am ount

Operating profit

Y/Y

Am ount

Y/Y

1,278－5.9％

68－16

M u s ic

488－1.6%－20－8

Des ig n143－10.7％－13＋29Na t u re359＋10.1％－25＋9Aviat ion ・Railways

265－18.2%－59＋3M obile s er vic es

416

＋4.7％

79－11O t h er

385

－1.8%

－61－15Intercompany eliminations

－171

ー－153

＋16Total

3,166

－3.5％

－184

＋7

ITCopyright © Impress Holdings, Inc. All Rights Reserved.

15

Overview by Segment for FY2024 1Q
 Although sales in Design and Aviation・Railways segments declined due to a reduction in thenumber of publications following the business restructuring implemented in the previous year,
losses narrowed due to improved profitability and a reduction in fixed costs. In particular,Design segment improved significantly.
 In Nature, losses were reduced by price raise and better sales of magazines and mooks, aswell as an increase in revenue from the publishing business due to an increase in the numberof new publications.
 In IT, despite steady growth in digital advertising, profits decreased due to lower sales inpublishing and other businesses, mainly due to a decline in the number of publications and theabsence of a good-selling title (ChatGPT-related book) published in the previous fiscal year.
 In Music, losses increased due to a decline in sales resulting from lack of major artist-related
projects commissioned in the previous year etc., as well as increased investments in newbusiness development.
 In Mobile services, profits declined due to an increase in SG&A expenses, despite strong salesof core services. In Others, profits decreased due to lower sales from fewer contracted projects.
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16

Financial Forecast

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Qualitative Information on Forecast of Consolidated
Financial Results for FY2024
 In 1Q, the Internet media and Platform business performed better than expected, but theTarget media remained weak. In Publishing/E-publishing, the impact of business restructuring
caused some delays in the publication of new titles, and the speed of improvement of backlist
books, such as a decrease in returns, etc., was slower than expected, resulting in lower-thanexpected profit levels.
 As for the outlook for 2Q, although the Internet media and Target media are expected toremain weak, Platform business is expected to remain firm. In Publishing/E-publishing,backlist books are in a changing situation where improvement is expected, and the number of
new publications is expected to increase compared to 1Q, so sales trends of new publications
and other factors are expected to be a key factor. Fixed costs are expected to be lower thananticipated.
 As for the forecast for the first half of the fiscal year, although the progress in 1Q was lower
than expected, the forecast remains unchanged from the beginning of the fiscal year at thispoint, as we continue to assess the sales performance of new publications and other factors in2Q. If any impact on business performance becomes clear, it will be announced promptly.
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18

Consolidated Financial Forecasts for FY2024
First half of FY2024（Total）
Forecast

Y/Y(Million yen)

Full year of FY2024
Forecast

Y/YNet sales

7,200+2.3％＋161

14,900

+3.0％

＋433

Operatingprofit0ー＋370250ー+733

Ordinary
profit50ー＋383

350ー+716

Profit0ー＋371200ー＋1,236※ No change from the beginning of the fiscal year
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19

Reference Material:
Overview of Impress Group

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Segment and Business of Impress GroupSegments

MusicBusiness
Category

DesignNatureAviation・Railways

Mobileservices

Other

Science andengineering, POD,etc.

ContentBusiness:
Content
Business:MediaMedia&&Services
Services/ /Solution
Solution
Platform Business

Platform Business

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Content Business: Media & Services

Specialized books,
magazines

E-Books

Publishing/出版・電子出版
Electronic Publishing

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Content Business: Media & Services

Internet Media

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Content Business: Media & Services

Business media

Survey report

Target Media
ターゲトメディア

Events, seminars

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24

Content Business: Solution※Fukui City Tourism Association

Outsourced creation of sales promotion and public relations
tools and websites for companies and local authorities
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25

Platform Business

E-Commerce
platforms

E-Comic
platforms

POD
platforms

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