Summary of Consolidated Financial Statement
for the Fiscal Year Ended December 31, 2023 [IFRS]
February 8, 2024
Listed Market: TSE
SEPTENI HOLDINGS CO., LTD.
Stock Code: 4293 URL: https://www.septeni-holdings.co.jp/en
Representative: Representative Director, Group President and Chief Executive Officer Koki Sato
Contact Person: Group Executive Officer Tei Go, Telephone: +81-3-6857-7258
Anticipated Date of General Shareholder’s Meeting:March 27, 2024
Anticipated Financial Report Filing Date:
March 27, 2024
Anticipated Dividend Payment Date:
March 28, 2024
Supplemental Earnings Presentation Materials:
Available
Earnings Presentation Meeting:
Held for institutional investors, analysts, media(All figures of less than 1 million yen are rounded down to the nearest digit)

1. Consolidated Financial Results for the Fiscal Year Ended December 31, 2023 (From October 1, 2022 to December 31,
2023)(1) Consolidated Financial Results(% figures represent year-over-year change)
Revenue
Million Yen

FY12/23
FY9/22

34,267
27,589

Non-GAAP
operating profit

Operating profit

Profit before tax% Million Yen% Million Yen% Million Yen% Million Yen

―
―

―
―

―
―

―
―

4,949
6,166

5,091
6,565

6,652
8,966

Profit attributable toowners of parent

Profit
4,267
5,751

%

Million Yen

%

―
120.6

4,319
5,734

―
120.2

(Note) 1. 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 share-based payment
expenses, impairment loss, and gain or loss on the sales of fixed assets from the IFRS-based operating profit.
2. As the fiscal year ended December 31, 2023 is 15 months due to a change in the fiscal year-end, the rate of year-over-year change is not stated.

Basic earnings per
share
FY12/23
FY9/22

Diluted earnings per
share

Profit before tax to total
assets ratio

Return on equity

Operating profit torevenue ratio

Yen

Yen

%

%

%

20.74
30.54

20.68
30.45

6.7
14.1

7.3
13.7

14.4
22.3

(Reference) Share of profit of investment accounted for using equity method: ¥1,851 million in FY12/23, ¥1,066 million in FY9/22(Note) As the results of COMICSMART INC. and its subsidiaries, etc. have been reclassified as discontinued operations, revenue, operating profit, NonGAAP operating profit and profit before tax represent the amount of continuing operations, excluding discontinued operations. The rate of year-overyear change for FY9/22 is not stated because the results for FY9/21 are not reclassified.

(2) Consolidated Financial Position
Total assets

FY12/23
FY9/22

Ratio of equity
attributable to ownersof parent to total assets

Equity attributable toowners of parent

Total equity

Equity attributable toowners of parent per
share

Million Yen

Million Yen

Million Yen%

Yen

93,606
88,73165,70562,75465,59462,70570.1
70.7

316.70299.54

Cash flows fromfinancing activities

Cash and cash equivalents at
end of period(3) Consolidated Cash Flows
Cash flows fromoperating activities

Cash flows frominvesting activities

Million Yen

Million Yen

Million Yen

Million Yen

3,785
3,650

-2,020-30,553-1,83531,22920,873
21,340Total dividend
paid

Ratio of total
amount ofdividends toequityattributable toowner ofparentFY12/23
FY9/22

2. Dividends
Dividends

End of 1Q

End of 2Q

Yen

FY9/22
FY12/23
FY12/24
Estimate

End of 3Q

Yen

End of 4Q

Yen

Yen

Term-end

Total

Payout ratio

Yen

Yen

Million Yen

%

%

―
―

―
―

―
―

―
―

4.60
5.20

4.60
5.20

971
1,086

15.1
25.1

2.1
1.7

―

―

―

―

7.90

7.90

25.2

(Note) 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, 2024 (From January 1, 2024 to December 31, 2024)
Revenue
Full Year(% figures represent year-over-year change)
Profit for the period
attributable to owners of
Basic earnings per shareparent

Non-GAAP operating profit

Million Yen%

Million Yen%

Million Yen%

Yen

31,000

―

4,700

―

6,500

―

31.38

(Note) As the fiscal year ended December 31, 2023 is 15 months due to a change in the fiscal year-end, the rate of year-over-year change is not stated.

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

None
None
None

(3) Number of issued and outstanding shares (common shares)
Issued and outstanding shares at the end of fiscal year (incl. Treasury
FY12/23
211,079,654 FY9/22
211,079,654
shares):Treasury shares at the end of fiscal year:
FY12/23
3,964,545 FY9/22
1,739,243
Average number of shares outstanding:
FY12/23
208,284,960 FY9/22
187,766,998(Note) The Company implements the stock incentive plan for the Directors and the Group Executive Officers. The number of treasury
shares at the end of fiscal year includes 1,764,502 shares held by the BIP Trust, as well as 2,200,043 shares held by theCompany. The Company’s shares held by the BIP Trust is also included in the number of treasury shares to calculate theaverage number of shares outstanding.

(Reference) Non-Consolidated Financial Results Overview
1. Non-Consolidated Operating Results for the Fiscal Year Ended December 31, 2023 (From October 1, 2022 to December
31, 2023)(1) Non-Consolidated Operating Results(% figures represent year-over-year change)
Operating revenue
FY12/23
FY9/22

Operating profit

Ordinary profit

Net income

Million Yen%

Million Yen%

Million Yen

%

6,854
5,495

―
40.9

3,361
2,875

―
71.0

5,123
4,364

―
133.3

Basic earnings per share
FY12/23
FY9/22Million Yen

%

―
256.7

4,827
3,673

Diluted earnings per share

Yen

Yen

23.17
19.56

23.12
19.51

(Note) As the fiscal year ended December 31, 2023 is 15 months due to a change in the fiscal year-end, the rate of year-over-year change is not stated.

(2) Non-Consolidated Financial Position
Total assets

Net assets
Million Yen

Capital adequacy ratio
Million Yen

FY12/23
59,524
57,129FY9/22
57,46353,982(Reference) Owner's equity: ¥57,129 million in FY12/23, ¥53,982 million in FY9/22

Net assets per share
%

Yen

96.0
93.9

275.83257.87*The summary of consolidated financial statements is not subject to the auditing by the Certified Public Accountants or theaudit 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, is based 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 Financial Results, etc. (1)Overview of Financial Results” and “2. Outlook (1) Outlook.”(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 the website
after the summary of consolidated financial statements is disclosed. The transcript of the briefing will be also available
on the website.
February 8, 2024 (Thu.) – FY12/2023 Financial Results Briefing for Institutional Investors, Analysts and the Press

Index
1. Overview of Financial Results, etc. ….………………………………………………………………………….
(1) Overview of Financial Results ………………………………………………………………………………
(2) Overview of Financial Positions …………………………………………………………………………….
(3) Overview of Cash Flows ……………….…………….……….……….…………………………………….
2. Outlook ….………………………………………………………………………….……………….…………...
(1) Outlook ………………………………………………………………………………………………………
(2) Basic Policy Regarding the Distribution of Profits, and Dividends in the Current and Next Terms ……….
3. Basic Stance on the Choice of Accounting Standards ……………………………………………….….….……
4. Consolidated Financial Statements and Key Notes ………………………………………………….….….……
(1) Consolidated Statement of Financial Position ……………………………………………………….….…..
(2) Consolidated Statement of Profit or Loss ………………………………………………………..….….…...
(3) Consolidated Statement of Comprehensive Income ……………………………………………..….….…...
(4) Consolidated Statement of Changes in Equity ………………………………………………….….….……
(5) Consolidated Statement of Cash Flow …………………………………………………………....….……..
(6) Notes on Consolidated Financial Statements ....…………………………………………………. .….……
(i) Notes on Matters Related to Going Concern Assumption ……………………………………………...
(ii) Changes in Accounting Policies ………………………………………………………………….. .…..
(iii) Information on Reportable Segments ………………………………………………………….….…...
(iv) Information on Value per Share ………………………………………………………….….…….…..
(v) Subsequent Events ………………………………………………………….….…….….…….….…….

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2
2
3
4
4
4
5
5
6
6
8
9
10
11
13
13
13
13
15
15

1. Overview of Financial Results, etc.
(1) Overview of Financial Results
Due to a change in the fiscal year-end, the fiscal year under review is the 15-month period from October
1, 2022 to December 31, 2023, and the rate of year-over-year change in consolidated and non-consolidated
results on a financial reporting basis is not stated.
In addition, because the results of COMICSMART INC. and its subsidiaries, etc. have been reclassified
as discontinued operations, revenue, operating profit, Non-GAAP operating profit and profit before tax
represent the amount of continuing operations, excluding discontinued operations.
As a reference, the results of profit and loss and the rate of year-over-year change from the previous fiscal
year are presented, assuming that both the previous year and the fiscal current fiscal year are the 12-month
period from January to December.
(Financial results for the fiscal year under review)
Individual smartphone ownership in Japan rose to 77.3% in 2022, as the quantitative expansion
continued, with the exceptionally high popularization rate of more than 90% of those in their 20s through 50s
now owning a smartphone. At the same time, the individual objectives for smartphone use are also diversifying
with the increasing usage rate of SNS (social networking services), meaning there are also have been aprofound qualitative change in use (source: “Communications Usage Trend Survey in 2022,” Ministry ofInternal Affairs and Communications). As such, with the smartphone becoming a mainstream device to accessthe Internet, in the market for various services and applications, expansion into content such as video, music,
and e-books is accelerating. Additionally, social media is being used not only for communication, but is also
expanding into fields such as payments and purchases. As its influence is growing even stronger, demand formarketing support utilizing the individual characteristics of different media as well as data and AI is also
increasing further. Furthermore, internet advertising expenditures in the Japanese advertising market in 2022
reached ¥3,091.2 billion (up 14.3% year on year), exceeding that of the four traditional mass media advertisingexpenditures (¥2,398.5 billion, down 2.3% year on year, source: “2022 Advertising Expenditures in Japan” byDentsu Inc.). As such, the COVID-19 pandemic has also been a catalyst for bringing about a massive wave ofdigital transformation (DX) across all industries, and even in the advertising industry, there has been further
growth in demand for digital marketing.
Under these circumstances, in the main Digital Marketing Business, despite the economic impact, it
acquired new clients, expanded existing businesses, and promoted collaboration with the Dentsu Group. It also
made up-front investments centered on strengthening investment in human capital.
As a result, revenue was ¥34,267 million, operating profit was ¥4,949 million, Non-GAAP operating
profit was ¥5,091 million, profit before tax was ¥6,652 million, profit was ¥4,267 million and profit
attributable to owners of parent was ¥4,319 million.
For non-consolidated operating results, operating revenue was ¥6,854 million, operating profit was¥3,361 million, ordinary profit was ¥5,123 million and net income was ¥4,827 million.
The Group discloses consolidated financial results in terms of both its internal measures which
management relies upon in making decisions (hereinafter the “Non-GAAP financial measures”) and thoseunder IFRS. Non-GAAP operating profit is a profit indicator of constant business performance determined by
excluding gains and losses related to acquisition actions and temporary factors from the IFRS-based operating
profit. Management believes that the disclosure of Non-GAAP financial measures facilitates comparison
between the Group and industry peers and year-on-year comparisons by stakeholders and can provide useful
information in understanding the underlying financial results and outlook of the Group. Gain and loss related toacquisition actions refer to amortization of acquisition-related intangible assets and M&A expenses, andtemporary factors refer to one-off items, such as share-based payment expenses, impairment losses, and gains
or losses on sales of fixed assets, which the Group believes shall be excluded for the purposes of preparing an
outlook based on certain rules.
Adjustments from operating profit to Non-GAAP operating profit are as follows. Due to a change in thefiscal year-end, the fiscal year under review is the 15-month period from October 1, 2022 to December 31,
2023, and the rate of year-over-year change in consolidated results on a financial reporting basis is not stated:-2-

(Million yen)Previous consolidated
fiscal year
(Fiscal year ended
September 30, 2022)

Current consolidated
fiscal year
(Fiscal year ended
December 31, 2023)

Change ofamount

6,166

4,949

－

31

51

－

129

39

－

Adjustment (Others)

240

52

－

Non-GAAP operating profit

6,565

5,091

－

Operating profit
Adjustment (Amortizationof acquisition-related
intangible assets)
Adjustment (Share-based
payment expenses)

Rate ofchange－－Operating results by reportable segment are as follows. Revenue and Non-GAAP operating loss for theMedia Platform Business represent the amount before the results of COMICSMART INC. and its subsidiaries,
etc. have been reclassified as discontinued operations.
(i) Digital Marketing Business
The Digital Marketing Business consists of business segments that provide comprehensive DX support,
centered on digital marketing.
In the fiscal year under review, despite the economic impact, it acquired new clients, expanded existing
businesses, and promoted collaboration with the Dentsu Group. It also made up-front investments centered onstrengthening investment in human capital.
As a result, revenue was ¥32,112 million, and Non-GAAP operating profit was ¥8,527 million.
(ii) Media Platform Business
The Media Platform Business consists of IP Platform Business “GANMA!”, Employment Platform
Business “ViViViT,” Platform Business of Social Contribution “gooddo”, Childcare Platform Business“Babyful” etc.
In the fiscal year under review, the segment grew mainly in the IP Platform Business, and the loss
narrowed. However, other businesses underperformed under the post-COVID environment.
As a result, revenue was ¥5,839 million, and Non-GAAP operating loss was ¥656 million.
(Reference)
The following figures show the status of profit and loss and the rate of year-over-year change on acalendar year basis, assuming that the accounting period of the Group was the 12-month period from January
to December for both the previous fiscal year and the current fiscal year.
As the results of COMICSMART INC. and its subsidiaries, etc. have been reclassified as discontinued
operations, revenue, operating profit, Non-GAAP operating profit and profit before tax represent the amountof continuing operations, excluding discontinued operations.
Revenue was ¥27,674 million (down 0.6% year on year), operating profit was ¥3,922 million (down
22.3% year on year), Non-GAAP operating profit was ¥4,016 million (down 25.9% year on year), profit
before tax was ¥5,660 million (down 27.2% year on year), profit was ¥3,699 million (down 26.7% year onyear), and profit attributable to owners of parent was ¥3,736 million (down 25.9% year on year).
(2) Overview of Financial Positions
Total assets increased by ¥4,875 million compared to the previous fiscal year and reached ¥93,606
million. This is mainly due to an increase of ¥1,546 million in operating receivables, ¥907 million in
investment accounted for using equity method, and ¥809 million in right-of-use assets.
Total liabilities increased by ¥1,924 million compared to the previous fiscal year and reached ¥27,901
million. This is mainly due to trade payables increased by ¥2,140 million.
Total equity increased by ¥2,951 million compared to the previous fiscal year and reached ¥65,705
million. This is mainly due to a record of profit of ¥4,267 million and an increase of ¥658 million fromchanges without loss of control of subsidiaries, while a decrease of ¥1,278 million from purchase of treasury
shares and dividends paid of ¥963 million.
-3-(3) Overview of Cash Flows“Cash and cash equivalents” decreased by ¥467 million and totaled ¥20,873 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 ¥3,785 million(cash inflows of ¥3,650 million in the previous fiscal year). This was mainly due to a record of ¥6,652 million
in profit before tax from continuing operations, ¥1,856 million in dividends received and ¥2,271 million inincrease in trade payables, while a record of ¥1,851 million in equity in earnings of affiliates, ¥1,909 million
in increase in trade receivables and ¥3,740 million in income taxes paid.
(ii) Cash flows from investing activities
As a result of investing activities in the fiscal year under review, cash outflows totaled ¥2,020 million(cash outflows of ¥30,553 million in the previous fiscal year). This was mainly due to a record of ¥1,109
million in purchase of securities, ¥933 million in purchase of investments accounted for using the equity
method, and ¥828 million in payments of contingent consideration.
(iii) Cash flows from financing activities
As a result of financing activities in the fiscal year under review, cash outflows totaled ¥1,835 million(cash inflows of ¥31,229 million in the previous fiscal year). This was mainly due to repayments of long-termloans payable of ¥2,000 million, purchase of treasury stock of ¥1,278 million, dividends paid of ¥963 million,
and repayments of lease liabilities of ¥752 million, while there was a net increase in short-term borrowings of¥3,000 million.

2. Outlook(1) Outlook(i) Policies
Under the new management structure, the Group set the medium-term theme from the fiscal year ending
December 2024 onward as “Focus & Synergies.” Based on the human capital management that has been built
up to date, the Group will create synergies among its business segments and within its business areas while
evolving its strengths to become a group with multiple strong businesses, aiming for sustainable growth andincreased corporate value over the medium to long term.
The Digital Marketing Business will be divided into 3 areas: the Marketing Communication Area, theDirect Business Area, and the Data & Solutions Area, and the Group will develop area management while
promoting business reorganization and strengthening. In addition, the Group aims to generate group synergies
by utilizing the assets of the Digital Marketing Business and create new businesses from within each area.
In addition, as growth investments, the Group will consider investments for organic growth and thecreation of new businesses, as well as M&A for growth in each area of the Digital Marketing Business.
(ii) Financial Results Forecasts
In the fiscal year ending December 2024, the Company expects steady growth centered on the DigitalMarketing Business and a boost to profit attributable to owners of parent due to the partial sale of shares of
COMICSMART INC. owned by the Company, and a significant increase in basic earnings per share.
Financial results forecasts for the fiscal year ending December 2024 (From January 1, 2023 to December
31, 2024):
Revenue
31,000 million yen
Non-GAAP operating profit
4,700 million yen
Profit attributable to owners of parent
6,500 million yen
Basic earnings per share
31.38 yen
For the details of the sale of the IP Platform Business, please refer to the “Notice of Changes inConsolidated Subsidiary (Share Transfer) and Recognition of Gain on Sale” disclosed on December 19, 2023
and February 8, 2024.
The above forecasts are based on estimates and beliefs in light of the information currently available andare subject to a number of uncertainties. Actual results may differ from the above 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 returning profits to shareholders is one of the key management issues andwill implement flexible and appropriate allocations based on the following policies.
Regarding dividends of surplus, in consideration of its consolidated earnings performance of each fiscal
year, the strengthening of its financial position, the Group's business strategy going forward and other factors,
the Company endeavors to return profits to shareholders within the range of our distributable amount, with atarget dividend payout ratio of around 25% to profit attributable to owners of parent. Furthermore, by setting aminimum annual dividend per share of ¥3 in principle, it will consider the continuity and stability of dividends,
while basing on appropriate profit distribution in line with business growth. Retained earnings will be used forinvestments in high-growth and profitable business domains, as well as for investments to improve theefficiency and vitalization of existing businesses, and for educational investment to develop human resources.
The Company intends to acquire own shares on an ongoing basis by comprehensively taking into accountmarket conditions, opportunities to invest in businesses, capital efficiency, the level of share price, etc. and to
implement such share repurchases in a flexible manner.
Based on these policies, the Company revised the year-end dividend forecast for the fiscal year ended
December 31, 2023 to ¥5.2 per share, an increase of ¥0.6 per share from the latest forecast. For the details,
please refer to the “Notice of Revision of Year-End Dividend Forecast (Dividend Increase)” disclosed on
February 8, 2024.
The dividend for the fiscal year under review is scheduled to be submitted at the 33rd Ordinary General
Meeting of Shareholders to be held on March 27, 2024.
The year-end dividend for the fiscal year ending December 31, 2024 is planned to be ¥7.9 per share.

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 and Key Notes(1) Consolidated Statement of Financial Position(Thousand yen)
FY2022(As of September 30, 2022)

FY2023(As of December 31, 2023)

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

20,873,416
19,830,799
72,849101,550
1,997,253
42,875,867
807,491
43,683,358

235,0221,090,965
4,693,055
525,138

257,486
1,899,500
4,693,055
432,366

33,342,226

34,249,351

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

7,106,364
13,2601,271,250
49,922,632
93,605,990

AssetsCurrent assets
Cash and cash equivalents
Trade receivables
Inventories
Other financial assets
Other current assets
Subtotal
Assets held for sale
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-

FY2022(As of September 30, 2022)(Thousand yen)
FY2023(As of December 31, 2023)

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

19,031,397
4,414,965
421,9292,227,759
26,096,050－

236,525

25,206,388

26,332,575

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

1,369,940
152,549
46,137
1,568,627
27,901,201

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

18,428,004
25,426,993-1,396,624
23,185,222-49,73162,705,254

65,593,864

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

110,925
65,704,788
93,605,990

Liabilities and Equity
Liabilities
Current liabilities
Trade payables
Other financial liabilities
Income taxes payable
Other current liabilities
Subtotal
Liabilities directly associated withassets held for sale
Total current liabilities
Non-current liabilities
Other financial liabilities
Provisions
Deferred tax liabilities
Total non-current liabilities
Total liabilities
EquityEquity attributable to owners of parent
Share capital
Capital surplus
Treasury shares
Retained earnings
Other components of equity
Total equity attributable to owners ofparentNon-controlling interests
Total equity
Total liabilities and equity-7-(2) Consolidated Statement of Profit or Loss
FY2022(From October 1, 2021 toSeptember 30, 2022)(Thousand yen)
FY2023(From October 1, 2022 to
December 31, 2023)

27,589,386
5,023,904
22,565,482

34,266,611
6,799,214
27,467,397

16,176,779

22,499,702

23,314
246,238
6,165,779
2,068,952
334,594

66,17384,734
4,949,134
5,760
153,485

1,066,228

1,850,739

8,966,365
2,659,861
6,306,504

6,652,148
1,727,766
4,924,381-555,831
5,750,673-657,107
4,267,275

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

4,318,831-51,556
4,267,275

33.50
-2.96
30.54

23.56
-2.82
20.74

33.40
-2.95
30.45

23.50
-2.81
20.68

Continuing operations
Revenue
Cost of sales
Gross profit
Selling, general and administrative
expenses
Other income
Other expenses
Operating profit
Finance income
Finance costs
Share of profit of investments
accounted for using equity method
Profit before tax
Income tax expenses
Profit from continuing operations
Discontinued operations
Loss from discontinued operations
ProfitProfit (loss) attributable to:
Owners of parent
Non-controlling interests
Total
Earnings per share
Basic earnings (loss) per share (Yen)Continuing operations
Discontinued operations
Total
Diluted earnings (loss) per share (Yen)Continuing operations
Discontinued operations
Total

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(3) Consolidated Statement of Comprehensive Income
FY2022(From October 1, 2021 toSeptember 30, 2022)
5,750,673(Thousand yen)
FY2023(From October 1, 2022 to
December 31, 2023)
4,267,275

25,055

201,646

114,591

28,097

8,356

2,990

－

3,664

148,001

236,397

Total comprehensive income

5,898,674

4,503,672

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

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

4,555,228-51,556
4,503,672

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 translation offoreign operations
Cash flow hedges
Share of other comprehensive income ofinvestment accounted for using equity
methodTotal other comprehensive income, net of
tax

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(4) Consolidated Statement of Changes in Equity(Thousand yen)
Equity attributable to owners of parent
Share capital
Balance at October 1, 2021

CapitalsurplusTreasurysharesRetainedearnings

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
Obtaining of control ofsubsidiaries
Other

－

－

－

5,733,564

148,001

5,881,565

17,1095,898,674

16,302,620－－

16,161,638
－
－

－
－

－

-26

-429,940－－－－

32,464,257-429,940
-26

－
－
－

32,464,257-429,940-26－

5,102,147

1,116,161－－

6,218,308

14,9026,233,210

Total transactions with owners
Balance at September 30, 2022－

144,671－

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(Thousand yen)
Equity attributable to owners of parent

Balance at October 1, 2022

SharecapitalCapitalsurplusTreasurysharesRetainedearnings

Other
componentsof equity

Total

Noncontrollinginterests

Total equity

18,428,004

25,309,728-575,707

19,671,818-128,588

62,705,254

48,81562,754,069

Profit (loss)

－

－

－

4,318,831－

4,318,831-51,556

4,267,275

Other comprehensive income

－

－

－

－

236,397

236,397－

236,397

Total comprehensive income
Dividends of surplus
Purchase of treasury shares
Disposal of treasury shares
Changes without loss of controlof subsidiaries
Other

－

－

－

4,318,831

236,397

4,555,228-51,556

4,503,672

－
－
－

－

－

-2,506-455,025-1,275,942
455,025-962,966
－
－

－
－
－

-962,966-1,278,448
－

－
－
－

-962,966-1,278,448－－

542,167－－－

542,167

115,350

657,516－

32,629－157,539-157,539

32,629-1,68430,945

Total transactions with owners
Balance at December 31, 2023－

117,265-820,917-805,426-157,539-1,666,618

113,665-1,552,953

18,428,004

25,426,993-1,396,624

23,185,222-49,73165,593,864

110,925

65,704,788- 10 -

(5) Quarterly Consolidated Statement of Cash FlowFY2022(From October 1, 2021 toSeptember 30, 2022)(Thousand yen)
FY2023(From October 1, 2022 to
December 31, 2023)

8,966,365-725,652

6,652,148-666,259

767,297-2,44624,920967,653-4,562
26,229

-1,066,228-1,850,739-2,032,753
183,323

42,70070,391

1,242,834
16,657-19,550-1,234,828
6,119,938
2,255
34,227-25,202－-2,481,389
3,649,828-1,908,593
27,526
2,271,407-1,431
5,626,471
4,462
1,855,868-28,144
66,438-3,739,690
3,785,405

99,998-1,311,447-37,769-72,805

311,068-1,109,047-168,007-12,573－

43,065

162,427－－-828,080-31,312,999-932,830-609,149
2,165,465
363,304－－
676,358-30,552,974-2,020,045

Cash flows from operating activities
Profit before tax from continuing operations
Loss before tax from discontinued operations
Adjustments:
Depreciation and amortization
Interest and dividend income
Interest expenses
Share of loss (profit) of investments
accounted for using equity method
Loss (profit) on valuation of securities
Other
Changes in working capital
Decrease (increase) in trade receivables
Decrease (increase) in inventories
Increase (decrease) in trade payables
Other
SubtotalInterest received
Dividends received
Interest paid
Income taxes refund
Income taxes paid
Cash flows provided by (used in) operating
activities
Cash flows from investing activities
Proceeds from sale of securities
Purchase of securities
Purchase of property, plant, and equipment
Purchase of intangible assets
Proceeds from sale of shares of subsidiaries
resulting in change in scope of consolidation
Proceeds from purchase of shares ofsubsidiaries resulting in change in scope of
consolidation
Payments of contingent considerations
Purchases of investments accounted for using
equity method
Payments for loans receivableCollection of loans receivable
Other
Cash flows provided by (used in) investing
activities- 11 -

FY2022(From October 1, 2021 toSeptember 30, 2022)(Thousand yen)
FY2023(From October 1, 2022 to
December 31, 2023)－

3,000,000-851,551-605,802-429,940
32,402,037－-26
713,924-2,000,350-751,749-962,966－
221,993-1,278,448-63,181

31,228,641-1,834,702

114,591

29,1184,440,086-40,223

16,899,990

21,340,076－-426,437

21,340,076

20,873,416

Cash flows from financing activities
Net increase (decrease) in short-termborrowings
Repayments of long-term borrowings
Repayments of lease liabilities
Dividends paid
Proceeds from issuance of shares
Proceeds from sale of treasury shares
Purchase of treasury shares
Other
Cash flows provided by (used in) financing
activities
Effect of exchange rate changes on cash andcash equivalents
Net increase (decrease) in cash and cash
equivalents
Cash and cash equivalents at beginning of
periodNet increase (decrease) in cash and cash
equivalents from transfer to assets held for sale
Cash and cash equivalents at end of period- 12 -

(6) Notes on Quarterly Consolidated Financial Statements(i) Notes on Matters Related to Going Concern Assumption
No applicable items.
(ii) Changes in Accounting Policies
No applicable items.
(iii) 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 theeconomic circumstances, and their financial effects on the businesses, the Group discloses information on tworeportable segments: the Digital Marketing Business and the Media Platform Business.
i. Digital Marketing Business
The Digital Marketing Business consists of businesses that provide comprehensive DX support, mainlyin the marketing domain, such as marketing support through online-offline integration centered on the sales
and operation of digital advertising, and the development and provision of solutions utilizing data and AI.
ii. Media Platform Business
The Media Platform Business consists of IP Platform 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 have not madea 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 andeconomic 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 gains and losses related
to acquisition actions such as amortization of acquisition-related intangible assets and M&A expenses andtemporary factors such as share-based payment expenses, impairment losses, and gains and losses on sales of
fixed assets. Non-GAAP operating profit is a profit indicator of constant business performance determined by
excluding gains and losses related to acquisition actions and temporary factors from the IFRS-based operating
profit. Management believes that disclosing Non-GAAP measures facilitates comparison between the Groupand industry peers and year-on-year comparisons by stakeholders and can provide useful information inunderstanding the underlying operating results and outlook of the Group. Gains and losses related toacquisition actions refer to amortization of acquisition-related intangible assets and M&A expenses, andunusual items refer to one-off items, such as share-based payment expenses, impairment losses, and gains andlosses on sales of fixed 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 withexternal customers.

- 13 -

3. Information on reportable segments’ profit and loss
Previous consolidated fiscal year (from October 1, 2021 to September 30, 2022)(Thousand yen)
DigitalMedia Platform
Marketing *2*3
25,861,984
3,296,727

Total

Adjustments*4-1,569,324

Consolidated

Segment revenue
29,158,711
27,589,386
Segment profit (loss)
9,211,291-844,464
8,366,827-1,801,650
6,565,177*1(Notes) 1. The segment profit is Non-GAAP operating profit
2. The segment revenue and segment profit in the Digital Marketing Business include segment revenue
and segment loss related to JNJ INTERACTIVE INC., which was transferred on November 30,
2023.
3. The segment revenue and segment loss in the Media Platform Business show the amount before
reclassification of the results of COMICSMART INC. and its subsidiaries, etc.
4. The breakdown of adjustments is as follows. Expenses related to the operation of the holding
company consist of personnel expenses, etc. The results of COMICSMART INC. and its
subsidiaries, etc. are reclassified to “transfer to discontinued operations.”(Thousand yen)
Revenue and expenses related to theTransfer tooperation of the holding company anddiscontinued
Adjustments
elimination of profit and loss transaction
operations
between reportable segments
Segment revenue-339,787-1,229,537-1,569,324
Segment profit (loss)-2,511,599
709,949-1,801,650
Current consolidated fiscal year (from October 1, 2022 to December 31, 2023)(Thousand yen)
DigitalMedia Platform
Marketing *2*3
32,111,575
5,838,993

Total

Adjustments*4-3,683,957

Consolidated

Segment revenue
37,950,568
34,266,611
Segment profit (loss)
8,526,919-655,910
7,871,009-2,779,703
5,091,306*1(Notes) 1. The segment profit is Non-GAAP operating profit
2. The segment revenue and segment profit in the Digital Marketing Business include segment revenue
and segment loss related to JNJ INTERACTIVE INC., which was transferred on November 30,
2023.
3. The segment revenue and segment loss in the Media Platform Business show the amount before
reclassification of the results of COMICSMART INC. and its subsidiaries, etc.
4. The breakdown of adjustments is as follows. Expenses related to the operation of the holding
company consist of personnel expenses, etc. The results of COMICSMART INC. and its
subsidiaries, etc. are reclassified to “transfer to discontinued operations.”(Thousand yen)
Revenue and expenses related to theTransfer tooperation of the holding company anddiscontinued
Adjustments
elimination of profit and loss transaction
operations
between reportable segments
Segment revenue-669,472-3,014,485-3,683,957
Segment profit (loss)-3,444,787
665,084-2,779,703- 14 -

Adjustments of segment profit (loss) and profit before tax

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

FY2022(From October 1, 2021 toSeptember 30, 2022)
6,565,177(Thousand yen)
FY2023(From October 1, 2022 to
December 31, 2023)
5,091,306-30,614-51,023-128,729-240,056
1,734,358-38,877-52,273-147,725

1,066,228

1,850,739

8,966,365

6,652,148(iv) Information on Value per Share
The basis of the calculation of earnings per share is shown in the table below.
FY2022(From October 1, 2021 toSeptember 30, 2022)
Profit attributable to owners of parent (thousand yen)
Continuing operations
6,289,395
Discontinued operations-555,831
Total
5,733,564
Average number of ordinary 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)Continuing operations
Discontinued operations
Total
Diluted earnings per share (yen)Continuing operations
Discontinued operations
Total

FY2023(From October 1, 2022 to
December 31, 2023)
4,906,493-587,663
4,318,831

187,767

208,285513

511

188,280

208,796

33.50
-2.96
30.54

23.56
-2.82
20.74

33.40
-2.95
30.45

23.50
-2.81
20.68

(v) Subsequent Events(Sale of COMICSMART INC.)
In order to achieve sustainable growth and maximize business value of COMICSMART INC.
(“COMICSMART”), the Company resolved at the Board of Directors meeting held on December 19, 2023 tosell 74,000 of the 116,400 shares of COMICSMART held by the Company (the transfer date is scheduled to be
March 29, 2024). As of the date of the transfer, the Company's ownership of the voting rights in
COMICSMART and its subsidiaries, etc. decreased from 89.42% to 32.57%. The Company will lose control of
COMICSMART and COMICSMART will become its equity-method affiliate. As a result, in the fiscal year
ending December 2024, the Company plans to record a profit of approximately ¥2.23 billion related to the saleof shares of COMICSMART.

- 15 -