Consolidated Financial Results (Japanese Accounting Standards)
for the Second Quarter of the Fiscal Year ending March 31, 2023
October 26, 2022
Company name
Stock exchange listing: Tokyo Stock Exchange
Morningstar Japan K. K.
Stock code
4765
URL https://www.morningstar.co.jp/
Representative(Title) Representative Director and President(Name) Tomoya Asakura
Person responsible for(Title) Managing Executive Officer and General(Name) Kazuhisa Ogawa TEL 03-6229-0810
disclosureManager of Administration Department
November 4, 2022
Scheduled date for filing of quarterly report:
Scheduled date of payment of dividends:
December 1, 2022

Supplementary documents for quarterly financial results:
Quarterly financial results briefing:None
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 Second Quarter of the Fiscal Year ending March 31, 2023 (April 1, 2022 to September
30, 2022)(1) Consolidated Results of Operations (cumulative)
Net sales
Second quarter of Fiscal
Year ending March 31, 2023
Second quarter of Fiscal
Year ended March 31, 2022
(Note) Comprehensive income(Percentages show year-on-year changes)

Operating income

Net income attributableto owners of parent

Ordinary income

Million yen%

Million yen%

Million yen%

Million yen

%

4,080

3.6

1,022

2.9

1,234

4.9

725

0.3

3,937

8.9

993

13.9

1,176

10.0

724

3.9

Second quarter of Fiscal Year ending March 31, 2023
Second quarter of Fiscal Year ended March 31, 2022
Net income per share (basic)

Net income per share (diluted)

yen

Second quarter of Fiscal Yearending March 31, 2023
Second quarter of Fiscal Year
ended March 31, 2022

746 million yen (△48.3%)
1,445 million yen (66.2%)
yen

8.10

―

8.07

―

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

(2) Consolidated financial position

Total assets
Million yen

Net assets
Million yen

Equity ratio

Net assets per share%

Second quarter of Fiscal Year
13,711
12,20785.2
ending March 31, 2023
Fiscal Year ended March 31,
14,055
12,27384.0
2022(Reference) Shareholders’ equity Second quarter of Fiscal Year ending March 31, 2023 11,682 million yen
Fiscal Year ended March 31, 2022
11,804 million yen

yen

125.90131.64

2. Dividends
End of firstquarter

End of second
quarteryen

Fiscal Year ended March 31,
2022
Fiscal Year ending March 31,
2023
Fiscal Year ending March 31,
2023 (forecast)

Dividend
End of third
quarter

yen

―

8.00

―

8.25

Year-end
yen

―

―

Total
yen

yen

9.00

17.00

―

―

(Note) Revision to the most recently announced dividend forecast: None
The forecast of the year-end dividend for the fiscal year ending March 31, 2023 has yet to be determined.

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): Yes
New - (Company name),

Excluded 2 companies(Company name)

SBI Bond Investment Management
Co., Ltd., SBI Regional Revitalization
Asset Management Co., Ltd.

(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 endof period (including treasury stocks)

Q2, Fiscal Year ending
March 31, 2023

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

89,673,600
shares2) Number of treasury stocks at end of
periodQ2, Fiscal Year ending
March 31, 2023

170 sharesFiscal Year ended
March 31, 2022

170 shares

3) Average number of shares during theperiod (quarterly cumulative)

Q2, Fiscal Year ending
March 31, 2023

89,673,430 Q2, Fiscal Year ending
shares March 31, 2022

89,673,430
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 per share isdetermined 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 October 26, 2022. We will post a video of the briefing on our official website promptly after itis held.

Morningstar Japan K. K. (4765) Consolidated Financial Results for the Second 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) Explanation of Financial Position ........................................................................................................................ 3(3) Business and Financial Issues to Be Addressed on a Priority Basis .................................................................. 4(4) Research and Development Activities ................................................................................................................ 4(5) Explanation about Future Forecast Information such as Consolidated Earnings Forecast ................................. 4
2. Quarterly Consolidated Financial Statements and Major Notes .................................................................................. 5(1) Quarterly Consolidated Balance Sheet ............................................................................................................... 5(2) Quarterly Consolidated Statement of Income and Quarterly Consolidated Statement of Comprehensive
Income ................................................................................................................................................................ 7(Quarterly Consolidated Statement of Income) ................................................................................................ 7(Second quarter of the fiscal year) ............................................................................................................... 7(Quarterly Consolidated Statement of Comprehensive Income) ...................................................................... 7(Second quarter of the fiscal year) ............................................................................................................... 7(3) Quarterly consolidated statement of cash flows .................................................................................................. 8(4) Notes on Quarterly Consolidated Financial Statements ..................................................................................... 9
3. Other investments and other assets .......................................................................................................................... 15-1-

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

1. Qualitative Information on Quarterly Financial Results(1)

Explanation of Business Results(1)Summary of consolidated financial results
Regarding the consolidated financial results for the second quarter of the current fiscal year (from April 1, 2022 toSeptember 30, 2022), under the severe market environment in which the values of both stocks and bonds fell
substantially, the Asset Management Business saw the Group’s balance of assets under management increase by
611.2 billion yen from the end of the same period of the previous fiscal year (September 30, 2021) to the end of thecurrent quarter (September 30, 2022), and management fees (trust fees) increased due to a rising investment balance.
As a result, sales of the Asset Management Business amounted to 3,020 million yen, an increase of 113 million yen(3.9%) from the same period of the previous fiscal year (from April 1, 2021 to September 30, 2021).
In the Financial Services Business, the number of provided Wealth Advisors for tablets used by advisors at financial
institutions engaged in sales continued to increase. In addition, there was an increase in the number of financial
institutions using our independently developed investment-related tool applications on the internet. As a result, salesof the Financial Services Business totaled 1,059 million yen, an increase of 29 million yen (2.9%) from the same periodof the previous fiscal year.
As a result, for the consolidated business results for the second quarter of the fiscal year under review, sales amounted
to 4,080 million yen, an increase of 142 million yen (3.6%) from 3,937 million yen for the same period of the previous
fiscal year.
Moreover, cost of sales was 1,821 million yen, an increase of 30 million yen (1.7%) from 1,791 million yen for thesame period of the previous fiscal year. Selling, general and administrative expenses were 1,235 million yen, an
increase of 83 million yen (7.2%) from 1,152 million yen for the same period of the previous fiscal year.
As a result, operating income for the second quarter of the fiscal year under review amounted to 1,022 million yen, an
increase of 29 million yen (2.9%) from 993 million yen for the same period of the previous fiscal year.
With non-operating income increasing by 22 million yen and non-operating expenses decreasing by 6 million yen
compared with the same period of the previous fiscal year, ordinary income for the period under review totaled 1,234
million yen, an increase of 57 million yen (4.9%) from 1,176 million yen for the same period of the previous fiscal year.
As a result of the above, income before income taxes amounted to 1,228 million yen, an increase of 56 million yen(4.8%) from 1,172 million yen in the same period of the previous fiscal year. However, net income attributable toowners of parent for the period under review was 725 million yen, an increase of 1 million yen (0.3%) from 724 million
for the same period of the previous fiscal year, because income attributable to owners of parent increased during thesame period of the previous fiscal year due to a refund of prior year income taxes received by Carret AssetManagement LLC, a U.S. subsidiary, in the same period of the previous fiscal year.
Summary of Financial Results
Second quarter of Fiscal
Year ended March 31, 2022
AmountProfit rate
(Thousand yen)(%)
3,937,555
25.2％
993,56929.9％
1,176,443

Second quarter of Fiscal
Year ending March 31, 2023
AmountProfit rate
(Thousand yen)(%)
4,080,237
1,022,580
25.1
1,234,243
30.2

Increase/Decrease
Amount(Thousand yen)
142,682
29,01057,799

Rate
(%)
3.6
2.9
4.9

Net sales
Operating income
Ordinary income
Net income attributable
724,02818.4％
725,949
17.8
1,921
0.3
to owners of parent
Consolidated net sales increased for the 11th consecutive year and record high sales were recorded for the 6thconsecutive year.
Operating income increased for the 3rd consecutive year and record high income was achieved for the 2ndconsecutive year.
Ordinary income increased for the 13th consecutive year and record high income was achieved for the 11th
consecutive year.
Profit attributable to owners of parent increased for the 13th consecutive year and record high profit was achieved
for the 8th consecutive year.
Sales by segment and by service were as follows.

Sales by Segment

Asset Management Business
Financial Services Business
Consolidated net sales

Second quarter of the previous
fiscal year, from April 1, 2021 toSeptember 30, 2021

Second quarter of the current
fiscal year, from April 1, 2022 toSeptember 30, 2022

Amount(Thousand yen)
2,907,482
1,030,072
3,937,555

Amount(Thousand yen)
3,020,514
1,059,723
4,080,237

-2-

Rate
(%)
73.8
26.2
100.00

Rate
(%)
74.0
26.0
100.0

Rate ofchange
(%)
3.9
2.9
3.6

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

1) Asset Management Business
For two management companies and one investment advisory company, each a subsidiary, the combined total balanceof assets under management increased 18.3% year on year to 3.94 trillion yen at the end of the quarter under review(September 30, 2022) from 3.33 trillion yen at the end of the same quarter of the previous fiscal year (September 30,2021). Sales of the Asset Management Business for the second quarter of the fiscal year under review increased by
113 million yen (3.9%) year on year to 3,020 million yen from 2,907 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 751 million yen, an increase of 4 million yen (0.6%) from 747 million yen for the same period of
the previous fiscal year.
2) Financial Services Business
The number of “Wealth Advisors” used by financial institutions distributing investment trusts rose to 115,101 units, anincrease of 2,471 units (2.2%) from 112,630 units at the end of the same quarter of the previous fiscal year, and data
sales for tablet applications also increased. In addition, as a result of an expansion in the number of financial institutions
using our independently developed investment-related tool applications online, sales of the Financial Services Businessfor the second quarter of the fiscal year under review were 1,059 million yen, an increase of 29 million yen (2.9%) from
1,030 million yen in the same period of the previous fiscal year.
Segment income was 271 million yen, an increase of 24 million yen (10.1%) from 246 million yen for the same period of
the previous fiscal year.
(2)

Explanation of Financial Position

1)

Analysis of Financial Position
Total assets decreased by 343 million yen from the end of the previous consolidated fiscal year to 13,711 million yen.
This was due to a decrease of 3,045 million yen in current assets, and an increase of 2,707 million yen in non-current
assets. The decrease in current assets was mainly due to a decrease in cash and cash equivalents by 2,563 million yen.
The decrease in cash and cash equivalents was due to a dividend payment of 807 million yen and the purchase of 3,000
million yen worth of investment securities.
The increase in non-current assets was mainly due to an increase of 2,644 million yen in investment securities and of
96 million yen in goodwill.
The increase in investment securities was due to the purchase of 3,000 million yen worth of other securities.
The increase in goodwill was due to an increase in the yen value of goodwill associated with a U.S. subsidiary as aresult of foreign currency translation. Total liabilities decreased by 277 million yen from the end of the previous
consolidated fiscal year to 1,504 million yen.
The decrease in liabilities was mainly due to a decrease in income taxes payable by 201 million yen. The decrease inincome taxes payable was due to the timing of tax payments.
For the period under review, 725 million yen in net income attributable to owners of parent was recorded and 807 million
yen in dividends was paid; as a result, retained earnings decreased by 81 million yen to 4,358 million yen.
Valuation difference on available-for-sale securities decreased by 329 million yen due to declines in their fair value.
Foreign currency translation adjustments increased by 264 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 forthe period under review.
As a result, total net assets decreased by 65 million yen from the end of the previous consolidated fiscal year to 12,207
million yen.

2)

Cash FlowsThe balance of cash and cash equivalents at the end of the second quarter of the current consolidated fiscal year
decreased by 1,638 million yen from the end of the previous consolidated fiscal year to 2,629 million yen. The status ofeach cash flow is as follows.
(Cash flows from operating activities)
Cash flows from operating activities increased by 1,259 million yen from the previous consolidated fiscal year to 1,528
million yen (inflow).
This was mainly due to the recording of 1,228 million yen in profit before income taxes, 535 million yen in income taxes
paid, and 644 million yen in refunds.
(Cash flows from investing activities)
Cash flows from investing activities decreased by 3,019 million yen from the previous consolidated fiscal year to 3,151
million yen (outflow).
This was mainly due to the purchase of 137 million yen worth of intangible assets and the purchase of 3,000 million
yen worth of investment securities.
(Cash flows from financing activities)
Cash flows from financing activities decreased by 57 million yen from the previous consolidated fiscal year to 849
million yen (outflow).
This was mainly due to dividends paid of 807 million yen and lease liabilities paid of 33 million yen.

-3-

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

(3)

Business and Financial Issues to Be Addressed on a Priority Basis
During the second quarter of the current consolidated fiscal year, there were no significant changes in the issues to beaddressed by the Group.

(4)

Research and Development Activities
Not applicable(5)

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

-4-Morningstar Japan K. K. (4765) Consolidated Financial Results for the Second Quarter of the Fiscal Year ending March 31, 2023

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

Quarterly Consolidated Balance Sheet(Thousand yen)Previous Fiscal Year(As of March 31, 2022)

ASSETS
Current assets
Cash and cash equivalents
Accounts receivable
Inventories
Other investments and other assets
Total current assets
Non-current assets
Tangible fixed assets
Intangible fixed assets
Goodwill
Software
Other investments and other 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*2-5-

149,951

Second Quarter of Current
Fiscal Year(As of September 30, 2022)

2,612,939
1,673,899*1 1,475
270,3434,558,657*2

101,215

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

1,883,708
1,225,785
32,4703,141,963

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

5,268,900
438,642
188,794
5,896,336
9,139,516

19,00319,003
14,055,358

13,795
13,795
13,711,969

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

(Thousand yen)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 investments and other assets
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
incomeNon-controlling shareholders’ equity
TOTAL NET ASSETSTOTAL LIABILITIES AND NET ASSETS-6-

Second Quarter of Current
Fiscal Year(As of September 30, 2022)

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

56,685
741,309
11,905
262,896
32,333399,099
1,504,230
1,504,230

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

3,363,635
4,503,021
4,358,281△29
12,224,908△513,787
36,309△843,576
300,873△477,478
469,252
12,273,545
14,055,358△542,702
525,531
12,207,738
13,711,969

Morningstar Japan K. K. (4765) Consolidated Financial Results for the Second 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)(Second quarter of the fiscal year)(Thousand yen)

Net sales
Cost of sales
Gross profit
Selling, general and administrative expenses
Operating income
Non-operating income
Interest income
Dividends income
Gain on sale of investment securities
Other investments and other assets
Total non-operating income
Non-operating expenses
Foreign exchange losses
Amortization of stock issuance cost
Other investments and other assets
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

Second Quarter of Previous
Fiscal Year
(From April 1, 2021 toSeptember 30, 2021)
3,937,555
1,791,641
2,145,913* 1,152,343
993,569

Second Quarter of Current
Fiscal Year
(From April 1, 2022 toSeptember 30, 2022)
4,080,237
1,821,803
2,258,433* 1,235,853
1,022,580

118,51144,366
26,918
5,889
195,685

87,064
114,169
15,5201,589
218,344

7,446
4,449
915
12,811
1,176,443

252
5,208
1,220
6,680
1,234,243

4,035
4,035
1,172,408
318,118△4,085314,032
858,375
134,347
724,028

4,848
974
5,822
1,228,421
354,887
61,486416,374
812,047
86,097725,949

Second Quarter of Previous
Fiscal Year
(From April 1, 2021 toSeptember 30, 2021)
858,375

Second Quarter of Current
Fiscal Year
(From April 1, 2022 toSeptember 30, 2022)
812,047

581,435
5,907
587,342
1,445,717△329,788
264,564△65,224
746,822

1,281,271

666,295

164,446

80,527*2*2(Quarterly Consolidated Statement ofComprehensive Income)(Second 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 owners ofparentComprehensive income attributable to noncontrolling interests-7-

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

(3)

Quarterly consolidated statement of cash flows(Thousand yen)
Second Quarter of Previous
Fiscal Year
(From April 1, 2021 toSeptember 30, 2021)

Second Quarter of Current
Fiscal Year
(From April 1, 2022 toSeptember 30, 2022)

1,172,408
218,929
2,503
53,713
4,449△162,877△22,883
7,441△245,406△156△10,694△92,720△333,014
27,935
619,627
19,297△375,368
5,954
269,5101,228,421
227,454
2,455
58,8725,208△201,234△14,546△632△128,231△211△5,932
63,104
122,940
2,668
1,360,336
58,811△535,401
644,803
1,528,549△7,283△161,184
7,000-△1,637△137,668
8,027△3,000,000

33-

30,000△131,435△19,779△3,151,058△762,224△807,060△29,829△792,053△9,000△33,865△849,925

17,231△75,010△636,747
4,904,960* 4,268,212△2,547,445
5,176,908* 2,629,463

Cash flows from operating activities
Income before income taxes
Depreciation and amortization expenses
Amortization of long-term prepaid expenses
Amortization of goodwill
Amortization of stock issuance cost
Interest and dividend income
Loss (gain) on sale of investment securities
Foreign exchange losses (gains)
Decrease (increase) in trade receivables
Decrease (increase) in inventories
Increase (decrease) in trade payables
Increase (decrease) in accounts payable - other
Decrease (increase) in other current assets
Increase (decrease) in other current liabilities
Sub totalInterest and dividend income received
Income taxes paid
Income tax refund amount
Cash flows from operating activities
Cash flows from investing activities
Purchase of property, plant and equipment
Purchase of intangible assets
Proceeds from sales of investment securities
Purchase of investment securities
Proceeds from sale of shares of subsidiaries andassociates
Proceeds from refund of leasehold andguarantee deposits
Payments of leasehold and guarantee deposits
Cash flows from investing activities
Cash flows from financing activities
Cash dividends paid
Expenditure on acquisition of subsidiary shares
without change in scope of consolidation
Repayments of lease obligations
Cash flows from financing activities
Effect of exchange rate change on cash and cash
equivalents
Net increase (decrease) in cash and cash
equivalents
Cash and cash equivalents at beginning of period
Cash and cash equivalents at end of period-8-Morningstar Japan K. K. (4765) Consolidated Financial Results for the Second Quarter of the Fiscal Year ending March 31, 2023

(4)

Notes on Quarterly Consolidated Financial Statements(Notes on the premise of a going concern)
Not applicable(Change in the scope of consolidation or the scope of application of the equity method)
Change in scope of consolidation
During the second quarter of the consolidated fiscal year, SBI Bond Investment Co., Ltd. and SBI Regional
Revitalization Asset Management Co., Ltd., which had been consolidated subsidiaries of the Company, were
excluded from the scope of consolidation because they ceased to exist as a result of an absorption-type merger inwhich SBI Asset Management Co., Ltd., also a consolidated subsidiary of the Company, was the surviving company.
(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, June17, 2021; hereinafter, “the Implementation Guidance” ) has been applied since the beginning of the first quarter ofthe current fiscal year. In accordance with the transitional treatment set forth in Paragraph 27-2 of the
Implementation Guidance, the Company decided to apply 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(Changes in accounting estimates)
Not applicable(Notes on quarterly consolidated balance sheet)*1
Breakdown of inventories
Previous Fiscal Year(As of March 31, 2022)
Work in process
Stocks*2

1,263(Thousand yen)
Second Quarter of Current
Fiscal Year(As of September 30, 2022)
15
1,460

Accumulated depreciation of tangible fixed assets
Previous Fiscal Year(As of March 31, 2022)

Accumulated depreciation

275,627(Thousand yen)
Second Quarter of Current
Fiscal Year(As of September 30, 2022)
281,692(Notes on quarterly consolidated statement of income)*
Major items of selling, general and administrative expenses

Employee’s salaries

Second Quarter of Previous
Fiscal Year
(From April 1, 2021 toSeptember 30, 2021)
486,407-9-(Thousand yen)
Second Quarter of Current
Fiscal Year
(From April 1, 2022 toSeptember 30, 2022)
507,309Morningstar Japan K. K. (4765) Consolidated Financial Results for the Second Quarter of the Fiscal Year ending March 31, 2023

(Notes on quarterly consolidated cash flows)*
Relationship between the quarterly balance of cash and cash equivalents at the end of the period and theamount of items posted on the quarterly consolidated balance sheet(Thousand yen)
Second Quarter of Previous
Second Quarter of Current
Fiscal Year
Fiscal Year
(From April 1, 2021 to(From April 1, 2022 toSeptember 30, 2021)
September 30, 2022)
Cash and cash equivalents
Deposit to securities company
account (of other current assets)
Cash and cash equivalents at endof period

4,267,916

2,612,939

296

16,523

4,268,212

2,629,463(Notes on shareholders’ equity)
I(1)

Second quarter of the previous fiscal year (from April 1, 2021 to September 30, 2021)

Dividends paid

Resolution

Kind ofshares

Source ofdividends

Total dividends(Thousand yen)

May 14, 2021
Board of Directors

Commonstock

Retainedearnings

762,224(2)

Dividend pershare (yen)Date of rightallotment

8.50 March 31, 2021

Effective dateJune 1, 2021

Dividends whose effective date falls after the last day of the second quarter of the current fiscal year, among those
whose record date falls in the said second quarter

Resolution

Kind ofshares

Source ofdividends

Total dividends(Thousand yen)

Dividend pershare (yen)Date of rightallotment

Proposedeffective date

September 22,
2021
Board of Directors

Commonstock

Retainedearnings

717,387

8.00

September 30,
2021

December 1,
2021

II
(1)

Second quarter of the current fiscal year (from April 1, 2021 to September 30, 2021)

Dividends paid

Resolution

Kind ofshares

Source ofdividends

Total dividends(Thousand yen)

May 19, 2022
Board of Directors

Commonstock

Retainedearnings

807,060(2)

Dividend pershare (yen)Date of rightallotment

9.00 March 31, 2022

Effective dateJune 1, 2022

Dividends whose effective date falls after the last day of the second quarter of the current fiscal year, among those
whose record date falls in the said second quarter

Resolution

Kind ofshares

Source ofdividends

Total dividends(Thousand yen)

Dividend pershare (yen)Date of rightallotment

Proposedeffective date

September 22,
2022
Board of Directors

Commonstock

Retainedearnings

739,805

8.25

September 30,
2022

December 1,
2022(Notes on significant change in shareholders’ equity)
Not applicable(Business combination)(Transactions between entities under common control)
At the Board of Directors meeting held on June 23, 2022, the Company resolved to conduct an absorption-type merger
regarding its consolidated subsidiaries, SBI Asset Management Co., Ltd., SBI Bond Investment Co., Ltd., and SBIRegional Revitalization Asset Management Co., Ltd., with SBI Asset Management Co., Ltd. as the surviving company,
and conducted the said absorption-type merger on August 1, 2022.

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

1. Summary of Transactions(1) The names of the parties to the combination and the details of their businesses
1) Company surviving absorption-type merger
Name: SBI Asset Management Co., Ltd.
Business details: Structuring and management of publicly and privately offered investment trusts, mainly equity
funds
2)

Company absorbed in absorption-type merger
1) Name: SBI Bond Investment Management Co., Ltd.
Business details: Structuring and management of publicly and privately offered investment trusts, mainly bond
funds2) Name: SBI Regional Revitalization Asset Management Co., Ltd.
Business details: Management of investment trusts, etc. for investment of regional financial institutions’ own funds

(2)
(3)

Date of business combination: August 1, 2022
Legal form of business combination
An absorption-type merger with SBI Asset Management Co., Ltd. as the surviving company, and SBI Bond
Investment Management Co., Ltd. and SBI Regional Revitalization Asset Management Co., Ltd. as the absorbed
companies.

(4)

Name of the combined entity
No change.

(5) Summary of the transaction, including its purpose
The Group’s asset management business comprises a total of nine companies, including SBI Asset Management Co.,
Ltd., which mainly structures and manages low-cost index funds; SBI Bond Investment Management Co., Ltd. and SBIRegional Revitalization Asset Management Co., Ltd., which mainly structure and manage private placement investment
trusts to support the advancement and diversification of regional financial institutions.
The purpose of the merger was to integrate management resources such as systems, data, and personnel, to improve
operational efficiency and enhance profitability, and to further strengthen the risk management and compliancesystems.

2. Summary of Accounting Treatment Implemented
These transactions are accounted for as transactions between entities under common control, in accordance with the“Accounting Standard for Business Combinations” (ASBJ Statement No.21, January 16, 2019) and the “Implementation
Guidance on Accounting Standard for Business Combinations and Accounting Standard for Business Divestitures”(ASBJ Guidance No.10, January 16, 2019).

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Morningstar Japan K. K. (4765) Consolidated Financial Results for the Second 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
Second quarter of the previous fiscal year (from April 1, 2021 to September 30, 2021)(Thousand yen)AmountMatters
recorded on
concerning
consolidated
difference
financialadjustment
statements

Reporting segment
Asset
Management
Business
Net sales
Sales to external customers
Internal sales or transfers between
segments
Total

Financial
Services
Business

Total

2,907,482

1,030,072

3,937,555-

3,937,555

37

12,094

12,131△12,131-2,907,520

1,042,166

3,949,686△12,1313,937,555

747,289

246,280

993,569-

993,569

Segment operating income

Second quarter of the current fiscal year (from April 1, 2022 to September 30, 2022)(Thousand yen)AmountMatters
recorded on
concerning
consolidated
difference
financialadjustment
statements

Reporting segment
Asset
Management
Business
Net sales
Sales to external customers
Internal sales or transfers between
segments
Total

Total

3,020,514

1,059,723

4,080,237

80

11,82911,910△11,9103,020,595

1,071,552

4,092,148△11,910

751,404

271,175

1,022,580

Segment operating income

2.

Financial
Services
Business

4,080,237

4,080,237
1,022,580

Difference between the total of reporting segments and the quarterly consolidated statement of income and themain content of the difference (matters concerning difference adjustment)(Thousand yen)
Second Quarter of Previous
Fiscal Year

Second Quarter of Current
Fiscal Year

Total of reporting segment

3,949,686

4,092,148

Elimination of transactions between segments△12,131△11,910

Net sales in the quarterly consolidated statement ofincome3,937,555

4,080,237

Second Quarter of Previous
Fiscal Year

Second Quarter of Current
Fiscal Year993,569

1,022,580

Elimination of transactions between segments--

Operating income in the quarterly consolidated
statement of income

993,569

1,022,580

Net sales(Thousand yen)Segment operating income
Total of reporting segment- 12 -

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

3. 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(Information on significant gain on bargain purchase)
Not applicable(Information on a per-share basis)
The amount of net income per share and the basis for calculation are as follows.
Second Quarter of Previous
Fiscal Year
(From April 1, 2021 toSeptember 30, 2021)

Second Quarter of Current
Fiscal Year
(From April 1, 2022 toSeptember 30, 2022)

8.07 yen

8.10 yen

724,028

725,949－－

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

724,028

725,949

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

89,673,430

89,673,430(1) Net income per share(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.

- 13 -

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

(Significant subsequent events)
At the Board of Directors meeting held on September 22, 2022, the Company resolved to acquire all shares of Shinsei
Investment Management Co., Ltd. on October 3, 2022 and make it a subsidiary (hereinafter, the “Share Acquisition”),
and on October 3, 2022, the Company acquired said shares and made it a subsidiary.
The summary of the Share Acquisition is as follows.
1. Purpose of making it a subsidiary (Share Acquisition)
As a core company in the SBI Group’s asset management business, the Company provides high-quality, low-cost
investment products to help individual and institutional investors manage their assets appropriately. The balance ofassets under management at our subsidiaries, led by SBI Asset Management Co., Ltd. (hereinafter, “SBI AssetManagement”), has been rapidly expanding and amounted to 3.9 trillion yen at the end of August 2022.
Shinsei Investment Management manages publicly and privately placed investment trusts and its balance of assets
under management stood at 577.5 billion yen as of the end of August 2022. By making Shinsei Investment
Management a subsidiary, the balance of assets under management of the Group as a whole will expand to 4.5 trillion
yen.
Currently, investment products offered by SBI Asset Management and our other management companies mainly
consist of publicly offered equity-type index funds and privately placed fixed-income funds entrusted mainly by regional
financial institutions. The addition of investment products, such as active funds of funds managed mainly by Shinsei
Investment Management, which will become a subsidiary of the Group, is deemed to broaden the range of asset
classes of investment products that we can offer and further contribute to the optimal asset management of individual
and institutional investors.
The consolidated management of our subsidiaries and Shinsei Investment Management is deemed to strengthen theGroup’s overall sales and product structuring capabilities, improve the efficiency of the middle-back system, and in turnstrengthen the risk management and compliance systems.
By making Shinsei Investment Management a subsidiary, the Group will be able to further expand the scope of its
asset management business and the balance of its assets under management, thereby further enhancing its
profitability.
(Reference)

Balance of assets under management as of August 31, 2022

(100 million yen)Group total

Shinsei Investment Management

Total

39,612

5,775

45,387

Breakdown of the Group total

2.

SBI Asset Management

Carret AssetManagement

Morningstar AssetManagement

Group total

33,531

4,192

1,889

39,612Main features of Share Acquisition(1) Number of shares acquired, amount, and ratio to total number of outstanding shares
1) Subsidiary to be changed

Shinsei Investment Management Co., Ltd.

2) Counterparty to the acquisition and thenumber of shares to be acquired

Counterparty to theacquisition
Shinsei Bank, Limited3) Amount4) Ratio to total number of outstanding
shares(2)

Number of sharesacquired
9,900 shares

1,300,000 thousand yen
100%(Total number of outstanding shares: 9,900
shares)Number and percentage of shares owned before and after acquisition

1) Subsidiary to be changed

Shinsei Investment Management Co., Ltd.
Number of shares
owned

Ownership ratio2) Number and percentage of shares owned
before and after acquisition--

3) Number and percentage of shares owned
after acquisition

9,900 shares100%- 14 -

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

(3)

Method of Share Acquisition
The consideration for the Share Acquisition will be cash.

(4)

Schedule of Share Acquisition

Date of Board of Directors resolution:

September 22, 2022

Contract date:

October 3, 2022

Payment of stock purchase price:

October 3, 2022

3. Summary of Subsidiaries to be Changed (as of September 22, 2022)(1)
Name
Shinsei Investment Management Co., Ltd.
(2)

Head office location

2-4-3, Nihonbashi-Muromachi, Chuo-ku, Tokyo(3)

Title and name of representative(4)

Business details(5)

Amount of share capital

495,000 thousand yen(6)Date of establishment

December 17, 2001

(7)

Major shareholders andshareholding ratio

Haruko Hirai, President & CEO
Business pertaining to investment management business, investment
advisory and agency business, and type II financial instruments
business

Major shareholder

Shareholding ratio

Shinsei Bank, Limited

100%

Shinsei Bank is a subsidiary of the Company’s parent company, SBI
Holdings.
(8)(9)

Relationship between the listed company and the company
Related party status

Shinsei Investment Management is a subsidiary of SBI Holdings, theparent company of the Company, and falls under the category of a
related party.

Capital relationship

Not applicable

Personal relationship

Not applicable

Business relationship

Not applicable

Financial position and operating results for the last three years(Unit: thousand yen, excluding per share information)
Fiscal Year ended
March 31, 2020

Fiscal Year ended
March 31, 2021

Fiscal Year ended
March 31, 2022

Net assets

982,000

990,903

1,149,416

Total assets

1,318,374

1,355,577

1,620,476

99,191.95 yen

100,091.23 yen

116,102.68 yen

Net assets per share
Net sales

1,484,243

1,466,886

1,939,121

Operating income

56,22534,510220,934

Ordinary income

55,86916,619219,853

Profit36,256

8,902

158,513

3,662.23 yen

899.27 yen

16,011.44 yen

- yen

- yen

- yen

Net income per share (basic)
Dividend per share

3. Other investments and other assets
At the meeting of the Board of Directors held on September 22, 2022, the Company resolved to pay an interim dividend
for the fiscal year under review, as detailed below.
(a) Total dividends ·································································· 739,805 thousand yen(b) Amount per share ······························································ 8.25 yen(c) Proposed effective date of payment request and scheduled
commencement date of payment ·········································· December 1, 2022
(Note) Payments will be made to shareholders listed or recorded on the shareholder list as of September 30, 2022.

- 15 -