Summary of Consolidated Financial Statements
for the Fiscal Year Ended September 30, 2022 [IFRS]
November 10, 2022
Stock exchange listings: TSE

SEPTENI HOLDINGS CO., LTD.

Securities code: 4293
URL: https://www.septeni-holdings.co.jp/en
Representative: Representative Director, Group President and Chief Executive Officer Koki Sato
Inquiries:
Group Executive Officer Tei Go, Telephone: +81-3-6857-7258
Date of general shareholders' meeting (as planned):
December 21, 2021
Dividend payable date (as planned):
December 2, 2021
Annual securities report filing date (as planned):
December 21, 2021
Supplemental material of annual results:
Available
Convening briefing of annual results:
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 Fiscal Year Ended September 30, 2022 (From October 1, 2021 to September 30,
2022)(1) Consolidated Operating Results(% figures represent year-over-year change)
Revenue
Million Yen

FY9/22
FY9/21

28,81921,384

Non-GAAP
operating profit

Operating profit% Million Yen

34.8
19.2

% Million Yen

5,440
3,650

49.0
60.5

5,855
3,796

Profit before tax% Million Yen

54.2
54.8

Profit attributableto owners of parent

Profit% Million Yen

8,241
3,911

110.7
68.2

5,751
2,607

% Million Yen

120.6
77.3

5,734
2,604

%

120.2
77.8

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

Basic earnings per
share
FY9/22
FY9/21

Profit to equity
attributable to ownersof parent ratio

Diluted earnings per
share

Profit before tax to total
assets ratio

Operating profit torevenue ratio

Yen

Yen

%

%

%

30.54
20.59

30.45
20.51

14.1
15.2

12.6
10.2

18.9
17.1

(Reference) Share of profit of entities accounted for using equity method: ¥1,066 million in FY9/22, ¥58 million in FY9/21(2) Consolidated Financial Position
Total assets

FY9/22
FY9/21Equity attributable toowners of parent tototal assets ratio

Equity attributable toowners of parent

Total equity

Equity attributable toowners of parent per
share

Million Yen

Million Yen

Million Yen%

Yen

88,73142,01162,754
18,44562,705
18,42670.7
43.9

299.54145.72(3) Consolidated Cash Flows
Cash flows from operating
activities

Cash flows from investing
activities

Cash flows from financing
activities

Cash and cash equivalents
at end of period

Million Yen

Million Yen

Million Yen

Million Yen

3,650
4,619

-30,55391

31,229-1,914

21,34016,900FY9/22
FY9/21

2. Dividends
Dividend per shareFirst
quarter

FY9/21
FY9/22
FY9/23
Estimate

Secondquarter

Third
quarterYear end

Total Dividend
paid

Total

Ratio of total
amount ofdividends to equity
attributable toowner of parent(Consolidated)

Payout Ratio(Consolidated)

Yen

Yen

Yen

Yen

Yen

Million Yen

%

%

―
―

―
―

―
―

3.40
4.60

3.40
4.60

436
971

16.5
15.1

2.5
2.1

―

―

―

―

―

―

(Note) tDividend forecasts for the fiscal year ending December 2023 are undecided. For dividend policies, please refer to “2. Outlook (2) Basic Policy
Regarding the Distribution of Profits, and Dividends in the Current and Next Terms”.

3. Consolidated Forecasts for the Fiscal Year Ending December 31, 2023 (From October 1, 2022 to December 31, 2023)
Revenue
FY9/22(% figures represent year-over-year change)
Profit attributable to owners
Basic earnings per shareof parent

Non-GAAP
operating profit

Million Yen%

Million Yen%

Million Yen%

Million Yen

42,500

―

7,500

―

5,950

―

28.42

(Note) The Company plans to change the accounting period from the current September 30 to December 31. For details, please refer to "2. Outlook (1)Outlook". As the next fiscal year is a transitional period for the change in the fiscal year-end, year-over-year changes are not presented.

*Others(1) Material changes in subsidiaries during this period (Changes in scope of consolidations resulting from changes in subsidiaries): None
(2) Changes in accounting policies and accounting estimates
Changes in accounting policies required by IFRS:
Changes in accounting policies other than IFRS requirements:
Changes in accounting estimates:

None
None
None

(3) Number of issued and outstanding shares (common shares)
Number of issued and outstanding shares at the end of
FY9/22
fiscal year (incl. Treasury shares):
Number of treasury shares at the end of fiscal year:
FY9/22Average number of shares:
FY9/22211,079,654 FY9/21

138,916,500

1,739,243 FY9/21
187,766,998 FY9/21

12,463,440
126,453,060(Note) The Company implements the stock incentive plan for the Directors and the Group Executive Officers. The number of treasury sharesat the end of fiscal year includes 1,739,200 shares held by the BIP Trust, as well as 43 treasury shares held by the Company. The
Company’s shares held by the BIP Trust is also included in the number of treasury shares to calculate the average number of shares.

(Reference) Non-Consolidated Financial Results Overview
1. Non-Consolidated Operating Results for the Fiscal Year Ended September 2022 (From October 1, 2021 to September
30, 2022)(1) Non-Consolidated Operating Results(% figures represent year-over-year change)
Operating revenue
FY9/22
FY9/21

Operating profit

Ordinary profit

Net income

Million Yen%

Million Yen%

Million Yen

%

5,495
3,899

40.9
41.0

2,875
1,681

71.0
83.0

4,364
1,870

133.3
106.9

Basic earnings per share
FY9/22
FY9/21Million Yen

3,673
1,030

%

256.7
―

Diluted earnings per share

Yen

Yen

19.56
8.14

19.51
8.11

(2) Non-Consolidated Financial Position
Total assets
FY9/22
FY9/21

Net assets

Capital adequacy ratio

Net assets per share

Million Yen

Million Yen%

Yen

57,463
16,19353,982
11,862

93.9
73.3

257.8793.80(Reference) Owner's equity: ¥53,982 million in FY9/22, ¥11,862 million in FY9/21*The summary of consolidated financial statements is not subject to the auditing by the Certified Public Accountants or
the audit corporation.
* Notes for using forecasted information and others(1) Consolidated forecasts
Any description regarding the future in this material, such as financial results forecasts and an outlook, isbased on the available information and certain conditions which the Company believes to be reasonable at the
moment, and actual financial results may differ from the forecasts due to various factors.
For the conditions which the forecasts are based on, please refer to “1. Overview of Operating Results, etc. (1)Overview of Operating Results”.
(2) Way of getting-supplemental material of annual results
The Company will hold a financial results briefing as below. The briefing materials will be available on thewebsite after the summary of consolidated financial statements is disclosed. The audio archive of the briefing will bealso available on the website.
November 10, 2022 (Thu.) - FY9/22 Financial Results Briefing for Institutional Investors, Analysts and the Press

Index
1. Overview of Operating Results, etc. ……………………………………………………………………..……
(1) Overview of Operating Results ……………………………………………………………………………

22(2) Overview of Financial Positions ……………………………………………………………………………
3(3) Overview of Cash Flows ……………………………………………………………………………………
3
2. Outlook …………………………………………………………………………………………………
4(1) Outlook ………………………………………………………………………………………………
4(2) Basic Policy Regarding the Distribution of Profits, and Dividends in the Current and Next Terms ……….
5
3. Basic Stance on the Choice of Accounting Standard ………………………………………………………….
5
4. Consolidated Financial Statements ……………………………………………………………………………..
6(1) Consolidated Statement of Financial Position ………………………………………………………………
6(2) Consolidated Statement of Profit or Loss……………………………………………………………………
8(3) Consolidated Statement of Comprehensive Income…………………………………………………………
9(4) Consolidated Statement of Changes in Equity ……………………………………………………………… 10(5) Consolidated Cash Flow Statement………………………………………………………………………….. 11(6) Notes on Consolidated Financial Statements ....…………………………………………………………… 12(Notes on Matters Related to Going Concern Assumption) ……………………………………………… 12(Changes in Accounting Policies) …………………………………………………………………………. 12(Information on Reportable Segments) ……………………………………………………………………. 12(Information on Value per Share) …………………………………………………………………………. 14(Subsequent Events) ……………………………………………………………………………………….. 14

1

1. Overview of Operating Results, etc.
(1) Overview of Operating Results(Earnings for the current term)
In 2021, the rate of individuals owning smartphones in Japan increased to 74.3% and exceeded 90%
among people in their 20s to 40s, showing the quantitative expansion is ongoing. At the same time, the purposeof using smartphones has diversified with the increase in the rate of social media use, and there have beenremarkable qualitative changes (Source: Ministry of Internal Affairs and Communications, "Results of FY2021
Communication Usage Trend Survey"). With smartphones becoming the main Internet devices, in the services
and applications markets, the expansion of content business such as video, music, and e-books is accelerating.
In addition, the use of social media is expanding beyond communication to include areas such as payments andpurchasing, further strengthening its influence. As a result, demand for marketing support using the respective
media features, data, and AI is growing further.
Moreover, in the Japanese advertising market in 2021, Internet advertising expenditures reached 2.7052
trillion yen (121.4% compared to the previous year), surpassing four Traditional Media advertisingexpenditures for the first time (2.4538 trillion yen, or 108.9% compared to the previous year) (Source: Dentsu
Inc., "2021 Advertising Expenditures in Japan"). In this way, the COVID-19 crisis has triggered a major waveof digital transformation (DX) in all industries, further increasing demand for digital marketing in theadvertising industry.
Under these circumstances, in the main Digital Marketing Business, both revenue and profit increased
significantly due to organic growth resulting from capturing increased demand for DX in companies,
promotion of collaboration through deepening capital and business alliances with the Dentsu Group, and theimpact of new consolidations. In the Media Platform Business, while continuing investments to expand into
new business segments, revenue increased, and the extent of the loss narrowed due to the driving force of themanga content business. Regarding the expansion into new business segments, business development
progressed in the HR technology field and the sports field.
As a result, revenue increased to ¥28,819 million (up 34.8% year on year), Non-GAAP operating profit
increased to ¥5,855 million (up 54.2% year on year), operating profit increased to ¥5,440 million (up 49.0%
year on year), profit before tax increased to ¥8,241 million (up 110.7% year on year), profit increased to¥5,751 million (up 120.6% year on year), and profit attributable to owners of parent increased to ¥5,734
million (up 120.2% year on year).
For non-consolidated operating results, due to an increase in dividend income from subsidiaries etc.,
operating revenue increased to ¥5,495 million (up 40.9% year on year), operating profit increased to ¥2,875
million (up 71.0% year on year), ordinary profit increased to ¥4,364 million (up 133.3% year on year) and net
income increased to ¥3,673 million (up 256.7% year on year).
The Group discloses consolidated operating 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 gain and loss 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 industry peers and year-on-year comparison by stakeholders and can provide useful
information in understanding the underlying operating results and outlook of the Group. Gain and loss related
to acquisition actions refer to amortization of acquisition-related intangible assets and M&A expenses, andunusual items refer to one-off items, such as stock-based compensation expenses, impairment losses, and gain
and loss on sales of non-current assets, which the Group believes shall be excluded for the purposes ofpreparing an outlook based on certain rules.

2

Adjustments from operating profit to Non-GAAP operating profit are as below:
Fiscal year ended
September 30, 2021
Operating profit(Million yen)
Change ofRate ofamountchangeFiscal year ended
September 30, 2022

3,650

5,440

1,790

―

31

31

236

145

-91

-371

―

371

Adjustment (Others)

280

240

-40

Non-GAAP operating profit

3,796

5,855

2,059

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

49.0%

Operating results by reportable segments are as follows.
(i) Digital Marketing Business
The Digital Marketing Business consists of business segments that provide comprehensive DX support,
mainly in the digital marketing domain.
In the fiscal year under review, both revenue and profit increased significantly due to organic growth
resulting from capturing increased demand for DX in companies, promotion of collaboration through the
deepening capital and business alliance with the Dentsu Group, and the impact of new consolidations.
As a result, revenue increased to ¥25,862 million (up 37.1% year on year), and Non-GAAP operating
profit increased to ¥9,211 million (up 31.8% year on year).
(ii) Media Platform Business
The Media Platform Business consists of Manga Content Business “GANMA!”, Employment Platform
Business “ViViViT”, Platform Business of Social Contribution “gooddo”, Childcare Platform Business“Babyful” etc.
In the fiscal year under review, while continuing investments to expand into new business segments,
revenue increased, and the extent of loss narrowed due to the driving force of the Manga Content Business.
As a result, revenue is ¥3,297 million (up 14.3% year on year), and Non-GAAP operating loss is ¥844
million (¥1,110 million in the previous fiscal year).
(2) Overview of Financial Positions
Total assets increased by ¥46,720 million compared to the previous fiscal year and reached ¥88,731
million. This is mainly due to an increase of ¥32,345 million in investment accounted for using equity method,¥4,693 million in goodwill, and ¥4,440 million in cash and cash equivalents.
Total liabilities increased by ¥2,411 million compared to the previous fiscal year and reached ¥25,977
million. This is mainly due to trade payables increased by ¥2,848 million.
Total equity increased by ¥44,309 million compared to the previous fiscal year and reached ¥62,754
million. This is mainly due to an increase of ¥16,303 million in share capital and ¥21,408 million in capitalsurplus through third-party allocation of shares, and also because ¥5,751 million is recorded in profit.
(3) Overview of Cash Flows
Cash and cash equivalents increased by ¥4,440 million and reached ¥21,340 million. The following are
the details and factors of each cash flows in the fiscal year under review.
(i) Cash flows from operating activities
As a result of operating activities in the fiscal year under review, cash inflows totaled ¥3,650 million(cash inflows of ¥4,619 million in the previous fiscal year). This was mainly because profit before tax of¥8,241 million was recorded while the Company paid corporate income tax of ¥2,481 million.

3

(ii) Cash flows from investing activities
As a result of investing activities in the fiscal year under review, cash outflows totaled ¥30,553 million(cash outflows of ¥91 million in the previous fiscal year). This was mainly due to expenditures of ¥31,313
million for the acquisition of investment accounted for using equity method.
(iii) Cash flows from financing activities
As a result of financing activities in the fiscal year under review, cash inflows totaled ¥31,229 million(cash outflows of ¥1,914 million in the previous fiscal year). This was mainly due to proceeds from issuance ofstock of ¥32,402 million.

2. Outlook(1) Outlook(i) Policies
Regarding the Midterm Business Policies announced in October 2020, the Company has set "expanding
domains" as the mid-term theme and has regarded the establishment of a system to capture the increasing
demand from the acceleration of DX as an important issue. With the aim of achieving sustainable growth overthe medium to long term and enhancing the corporate value, the Company has updated its policies as follows.
In the Digital Marketing Business, with the aim of strengthening DX support area, the Company will
strengthen the development of AI products and data solution services while expanding on-off integrated
services through deeper collaboration with the Dentsu Group.
In the Media Platform Business, with the aim of further accelerating the growth in the Manga Content
Business, the Company will enhance its IP value and strengthen its Webtoon production system.
Regarding the expansion into new business segments, the Company will promote business growth in HR
technology field and business development in the entertainment and the sports field.
In addition, in April 2023, the Company will start human investments with the aim of increasing thehuman capital value, which is also the Company’s core value. In particular, the Company will raise the pay
scale and the rate of incentive subsidy for the Employee Stock Ownership Plan, and renovate offices in linewith the establishment of new working styles. Through these efforts, the Company will maximize the humancapital value, realize sustainable growth by increasing the value provided to clients and aim to increase thecorporate value over the medium to long term.
(ii) Financial Results Forecasts
In the fiscal year ending December 2023, the Company expects revenue and profit to increase year-onyear while achieving growth in each business and investment in human capital.
Financial Results Forecasts the Fiscal Year Ending December 2023 (October 1, 2022 to December 31,
2023)
Revenue 42,500 million yen
Non-GAAP operating profit 7,500 million yen
Profit attributable to owners of parent 5,950 million yen
Basic earnings per share 28.42 yen
The Company plans to change the fiscal year-end date from the current September 30 to December 31,
subject to the approval of "partial amendment to articles of incorporation" at the 32nd General Shareholders’Meeting to be held on December 21, 2022. With regard to the above forecasts for the next fiscal year, theexpected period is 15 months from October 1, 2022 to December 31, 2023, because it is the transitional period
for the change in the fiscal year-end. The above forecasts are based on estimates and beliefs in light of theinformation currently available and are subject to a number of uncertainties. Actual results may differ from theabove forecasts due to various factors.

4(2) Basic Policy Regarding the Distribution of Profits, and Dividends in the Current and Next Terms
The Company recognizes that the profit return to shareholders is one of the most important management
issues and will implement flexible and appropriate allocations based on the following policies.
Regarding dividends of surplus, the Company intends to pay dividends aimed at a payout ratio of around
15% of profit attributable to owners of parent, taking into account the consolidated business results for eachfiscal year, the strengthening of financial positions, and the business strategy going forward. Furthermore, in
principle, the Company has set a minimum annual dividend per share of ¥2.00. In this way, the Company willtake into account the continuity and stability of dividends while distributing profits appropriately in line withthe expansion of business performances. In addition, retained earnings will be used as investments in businessfields with high growth potential and profitability, as well as investments to improve efficiency and revitalize
existing businesses and as educational investments for human capital development.
Based on the above basic policies, the Company plans to pay a year-end dividend of ¥4.6 per share forthe fiscal year under review.
The year-end dividend for the next fiscal year is undecided. The Company will promptly announce theamount as soon as it is determined.
3. Basic Stance on the Choice of Accounting Standards
The Group has promoted the global operational presence and adopted IFRS since the fiscal year ended
September 30, 2016, to improve the quality of business administration through standardized accounting
procedures within the Group and to improve convenience for stakeholders, including shareholders andinvestors in Japan and overseas, by increasing the international comparability of financial information incapital markets.

54. Consolidated Financial Statements(1) Consolidated Statement of Financial Position(Thousand yen)Previous Term(Ended September 30,2021)

Current Term(Ended September 30, 2022)

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

21,340,076
18,285,273
103,154
98,953757,815
40,585,272

310,284
1,653,760－
67,290235,0221,090,965
4,693,055
525,138

997,026

33,342,226

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

6,904,527
24,2441,330,663
48,145,841
88,731,112

AssetsCurrent assets
Cash and cash equivalents
Operating 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

6

(Thousand yen)Previous Term(Ended September 30,2021)

Current Term(Ended September 30, 2022)

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

16,891,357
4,910,042
557,879
2,847,110
25,206,388

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

531,226
159,063
80,366
770,655
25,977,043

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

18,428,004
25,309,728-575,707
19,671,818-128,588

18,426,419

62,705,254

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

48,81562,754,069
88,731,112

Liabilities and Equity
Liabilities
Current liabilities
Operating 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 equity7(2) Consolidated Statement of Profit or Loss(Thousand yen)Previous Term(Ended September 30,2021)

Current Term(Ended September 30, 2022)

21,383,875
4,098,765
17,285,110

28,818,924
6,098,494
22,720,430

13,744,932

17,057,829

395,197285,3293,650,046
251,246
48,331

23,332
246,0445,439,888
2,069,190
334,594

57,756

1,066,228

3,910,716
1,303,827
2,606,889

8,240,713
2,490,040
5,750,673

2,604,103
2,786
2,606,889

5,733,564
17,1095,750,673

20.59
20.51

30.54
30.45

Revenue
Cost of sales
Gross profit
Selling, general and administrative
expenses
Other income
Other expenses
Operating profit
Financial revenue
Financial expenses
Share of profit from investments
accounted for using equity method
Profit (loss) before tax
Income tax expense
ProfitProfit (loss) attributable to:
Owners of parent
Non-controlling interests
Total
Earnings per share
Basic earnings per share (Yen)
Diluted earnings per share (Yen)8(3) Consolidated Statement of Comprehensive Income(Thousand yen)Previous Term(Ended September 30,2021)

Current Term(Ended September 30, 2022)

2,606,889

5,750,673

8,301

25,05524,210114,591

12,8498,356

45,359148,001

Total comprehensive income

2,652,248

5,898,674

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

2,649,462
2,786
2,652,248

5,881,565
17,1095,898,674

ProfitOther 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 oftax

9(4) Consolidated Statement of Changes in Equity(Thousand yen)
Equity attributable to owners of parent
Share capital
Balance at October 1, 2020

CapitalsurplusTreasurysharesRetainedearnings

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

Profit－－－2,604,103－

2,604,103

2,786

2,606,889

Other comprehensive income

－

－

－

－

45,35945,359－45,359Total comprehensive income

－

－

－

2,604,103

45,3592,649,462

2,786

2,652,248

Dividends of surplus
Other
Total amount of transactions
with owners
Balance at September 30, 2021

－

－

－

-252,906－-252,906－-252,906－

236,484－－－

236,484-1,895234,589－

236,484－-252,906－-16,422-1,895-18,317

2,125,384

3,901,272-1,691,842

14,322,283-230,678

18,426,419

18,86918,445,288(Thousand yen)
Equity attributable to owners of parent
Share capital Capital surplus
Balance at October 1, 2021

TreasurysharesRetainedearnings

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

Profit

－－－5,733,564－

5,733,564

17,1095,750,673

Other comprehensive income

－

－

－

－

148,001

148,001－

148,001

Total comprehensive income
Issuance of new shares
Dividends of surplus
Purchase of treasury shares
Acquisition of subsidiaries
Other
Total amount of transactions
with owners
Balance at September 30, 2022

－

－

－

5,733,564

148,001

5,881,565

17,1095,898,674

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－

144,672－

45,911-45,911

144,671-2,064

142,606

16,302,620

21,408,456

1,116,135-384,029-45,911

38,397,270

12,83838,410,107

18,428,004

25,309,728-575,707

19,671,818-128,588

62,705,254

48,81562,754,069

10

(5) Consolidated Cash Flow Statement(Thousand yen)Previous Term(Ended September 30,2021)

Current Term(Ended September 30, 2022)

3,910,716

8,240,713

1,015,233-10,536
31,759767,297-2,44624,920-57,756-1,066,228-369,764-1,849,431-3,360,567-92,437
3,009,109
1,766,606
5,842,363
26,512-32,036-1,218,071
4,618,768

1,242,834
16,657-19,550-1,234,828
6,119,938
36,481-25,202-2,481,389
3,649,828―-329,182-141,626-23,71299,998-1,311,447-37,769-72,805―

162,427

280,439――-31,312,999―
100,000
204,716
90,635-609,149
2,165,465
363,304-30,552,974-850,008-809,678-252,906――-1,895-1,941,487-851,551-605,802-429,940
32,402,037-26
713,924
31,228,641

24,210114,5912,819,126

4,440,086

14,080,864

16,899,990

16,899,990

21,340,076

Cash flows from operating activities
Profit before tax
Adjustments:
Depreciation and amortization expenses
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 operating activities
Cash flows from investing activities
Proceeds from sales of securities
Purchase of securities
Purchase of property, plant and equipment
Purchase of intangible assets
Proceeds from purchase of shares ofsubsidiaries resulting in change in scope of
consolidation
Proceeds from sale of shares of subsidiaries
resulting in change in scope of consolidation
Purchase of investments accounted for using
equity method
Loan advances
Proceeds from collection of loans receivable
Other
Cash flows from investing activities
Cash flows from financing activities
Proceeds from long-term borrowings
Repayments of lease obligations
Cash dividends paid
Proceeds from issuance of shares
Purchase of treasury shares
Other
Cash flows from 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 period11(6) Notes on Consolidated Financial Statements(Notes on Matters Related to Going Concern Assumption)
No applicable items.
(Changes in Accounting Policies)
No applicable items.
(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 the business units.
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 the economic
circumstances, 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 DX support,
mainly in the digital marketing domain such as the sales and operation of digital advertisement, providing
solutions utilizing data and AI and marketing support in integration of online and offline through the alliancewith the Dentsu group.
ii. Media Platform Business
The Media Platform Business consists of Manga Content Business “GANMA!”, Employment Platform
Business “ViViViT”, Platform Business of Social Contribution “gooddo”, Childcare Platform Business“Babyful” etc. This segment includes business units that have commenced operation in recent years and havenot made a profit 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
and economic values that allow the Group to recover the investment costs through future revenue generation.
2. Measurement of reportable segments’ profit and loss
Segment profit uses Non-GAAP operating profit based on IFRS adjusted for gain and loss related toacquisition actions such as amortization of acquisition-related intangible assets and M&A expenses andtemporary factors such as stock-based compensation expenses, impairment losses, and gain and loss on sales ofproperty, plant and equipment. Non-GAAP operating profit is a profit indicator of constant businessperformance determined by excluding gain and loss related to acquisition actions and temporary factors fromthe IFRS-based operating profit. Management believes that disclosing Non-GAAP measures facilitatescomparison between the Group and industry peers and year-on-year comparison by stakeholders and canprovide useful information in understanding the underlying operating results and outlook of the Group. Gain
and losses related to acquisition actions refer to amortization of acquisition-related intangible assets and M&A
expenses, and unusual items refer to one-off items, such as stock-based compensation expenses, impairment
losses, and gain and loss on sales of non-current assets, which the Group believes shall be excluded for the
purposes of preparing an outlook based on certain rules.
The prices of inter-segment transactions are determined based on the prices of transactions with externalcustomers.

12

3. Information on reportable segments’ profit and loss

Previous consolidated fiscal year (from October 1, 2020 to September 30, 2021)(Thousand yen)
DigitalMedia Platform
Marketing*4
18,869,050
2,885,093

Total

Adjustment

Consolidated

Segment revenue *1
21,754,143-370,268
21,383,875
Segment profit (loss)
6,990,734-1,110,057
5,880,677-2,084,666
3,796,011*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. Adjustments include the elimination of profit and loss transactions between reportable segments andexpenses for the operation of the holding company. Expenses for the operation of the holding company are
Personnel expenses etc.
4. Segment revenue, loss and sales of the Media Platform Business include amounts related to the Medical
Platform Business “Pharmarket,” which was transferred on April 1, 2021.
Fiscal Year Ended September 30, 2021 (from October 1, 2021 to September 30, 2022)(Thousand yen)
DigitalMarketingMedia Platform

Total

Adjustment

Consolidated

Segment revenue *1
25,861,984
3,296,727
29,158,711-339,787
28,818,924
Segment profit (loss)
9,211,291-844,464
8,366,827-2,511,599
5,855,229*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. Adjustments include the elimination of profit and loss transactions between reportable segments andexpenses for the operation of the holding company. Expenses for the operation of the holding company are
Personnel expenses etc.
Adjustments of segment profit (loss) to profit before tax

Segment profit (non-GAAP operating profit)
Selling, general and administrative expenses
Amortization of acquisition-related intangible
assetsStock-based compensation expenses
Other profit (loss) (net)
Financial profit (loss) (net)Share of profit from investments accounted for using
equity method
Profit before tax

13

Previous Term(Ended September 30,
2021)
3,796,011(Thousand yen)
Current Term(Ended September 30,
2022)
5,855,229―-30,614-236,484
90,519202,914-144,671-240,056
1,734,597

57,756

1,066,228

3,910,716

8,240,713

(Information on Value per Share)
The basis of the calculation of earnings per share is as below.
Previous Term(Ended September 30,
2021)
Profit attributable to owners of parent (thousand yen)
2,604,103
Average number of common shares outstanding
during the fiscal year (thousand shares)
Number of potential shares with dilutive effects
Number of warrants (thousand shares)
Average number of shares outstanding inconsideration of the number of potential shares withdilutive effects (thousand shares)
Basic earnings per share (yen)Diluted earnings per share (yen)Current Term(Ended September 30,
2022)
5,733,564

126,453

187,767512

513

126,965

188,280

20.59
20.51

30.54
30.45

(Subsequent Events)
On October 25, 2022, the Company and and factory,inc. ("and factory") concluded a capital and businessalliance agreement (the "Capital and Business Alliance Agreement"). Pursuant to the Capital and Business
Alliance Agreement, effective November 10, 2022, the Company subscribed for new shares to be issued by andfactory through a third-party allocation and acquired the shares of and factory held by Mr. Takamasa Ohara, theChairman of the Board of Directors of and factory in order to make the company an equity method affiliate of
the Company.
For more information, please refer to the "Notice of Capital and Business Alliance Agreement with andfactory,inc (Securities code: 7035), Subscription to Third-Party Allocation of New Shares and Acquisition of
Shares" announced on October 25, 2022.

14