Consolidated Financial Results
for the Second Quarter of the Fiscal Year Ending December 31, 2021
(Six Months Ended June 30, 2021)
[Japanese GAAP] | ||
August 13, 2021 | ||
Company name: Orchestra Holdings Inc. | Listing: Tokyo Stock Exchange, First Section | |
Stock code: | 6533 | URL: https://orchestra-hd.co.jp/ |
Representative: | Yoshiro Nakamura, President and Representative Director | |
Contact: | Naomi Iyogi, Director and CFO | |
Tel: +81-3-6450-4307 |
Scheduled date of filing of Quarterly Report: | August 13, 2021 |
Scheduled date of payment of dividend: | - |
Preparation of supplementary materials for quarterly financial results: Yes | |
Holding of quarterly financial results meeting: | Yes (for analysts and institutional investors) |
(All amounts are rounded down to the nearest million yen)
1. Consolidated Financial Results for the First Six Months of 2021 (January 1 to June 30, 2021)
(1) Consolidated results of operations | (Percentages represent year-on-year changes) | ||||||||
Net sales | Operating profit | Ordinary profit | Profit attributable to | ||||||
owners of parent | |||||||||
Million yen | % | Million yen | % | Million yen | % | Million yen | % | ||
Six months ended Jun. 30, 2021 | 7,577 | 36.5 | 681 | 126.2 | 692 | 131.1 | 436 | 144.3 | |
Six months ended Jun. 30, 2020 | 5,551 | 25.7 | 301 | 36.8 | 299 | 32.2 | 178 | 57.6 |
Note: Comprehensive income (millions of yen)
Six months ended Jun. 30, 2021: | 449 | (up 151.3%) |
Six months ended Jun. 30, 2020: | 178 | (up 57.6%) |
Basic earnings | Diluted earnings | |
per share | per share | |
Yen | Yen | |
Six months ended Jun. 30, 2021 | 44.63 | 44.49 |
Six months ended Jun. 30, 2020 | 19.53 | 18.23 |
(2) Consolidated financial position
Total assets | Net assets | Equity ratio | |
Million yen | Million yen | % | |
As of Jun. 30, 2021 | 8,095 | 4,320 | 47.8 |
As of Dec. 31, 2020 | 4,689 | 1,885 | 38.9 |
Reference: Shareholders' equity (millions of yen) As of Jun. 30, 2021: 3,871 As of Dec. 31, 2020: 1,823
2. Dividends
Dividends per share | ||||||
1Q-end | 2Q-end | 3Q-end | Year-end | Total | ||
Yen | Yen | Yen | Yen | Yen | ||
2020 | - | 0.00 | - | 7.00 | 7.00 | |
2021 | - | 0.00 | ||||
2021 (forecast) | - | 8.00 | 8.00 |
Note: Revisions to the most recently announced dividend forecast: None
3. Consolidated Forecast for 2021 (January 1 to December 31, 2021)
(Percentages represent year-on-year changes)
Net sales | Operating profit | Ordinary profit | Profit attributable to | Basic earnings | |||||||
owners of parent | per share | ||||||||||
Million yen | % | Million yen | % | Million yen | % | Million yen | % | Yen | |||
Full year | 14,200 | 20.1 | 870 | 26.8 | 865 | 26.6 | 540 | 24.0 | 55.16 | ||
Note: Revisions to the most recently announced consolidated forecast: None |
* Notes
(1) Changes in significant subsidiaries during the period (change in scope of consolidation): None
Newly added: - | Excluded: - |
- Application of special accounting methods for presenting quarterly consolidated financial statements: None
- Changes in accounting policies and accounting-based estimates, and restatements
- Changes in accounting policies due to revisions in accounting standards, others: None
- Changes in accounting policies other than 1) above: None
- Changes in accounting-based estimates: None
- Restatements: None
- Number of shares issued (common stock)
- Number of shares issued at the end of the period (including treasury shares)
As of Jun. 30, 2021: | 9,791,600 shares | As of Dec. 31, 2020: | 9,789,600 shares |
2) Number of treasury shares at the end of the period | |||
As of Jun. 30, 2021: | 97 shares | As of Dec. 31, 2020: | 97 shares |
3) Average number of shares during the period | |||
Six months ended Jun. 30, 2021: | 9,790,851 shares | Six months ended Jun. 30, 2020: | 9,156,967 shares |
- The current financial report is not subject to quarterly review by certified public accountants or auditing firms.
-
Cautionary statement with respect to forward-looking statements, and other special items
Forecasts of future performance in this document are based on assumption judged to be valid and inform ation currently available to the Company's management, but are not promises by the Company regarding future performance. Actual results may differ materially from the forecasts for a number of reasons. Please refer to "1. Qualitative Information on Quarterly Consolidated Financial Performance, (3) Explanation of Consolidated Forecast and Other Forward-looking Statements" on page 4 for forecast assumptions and notes of caution for usage.
Orchestra Holdings Inc. (6533) Financial Results for the Second Quarter of 2021 | ||
Contents of Attachments | ||
1. Qualitative Information on Quarterly Consolidated Financial Performance | 2 | |
(1) | Explanation of Results of Operations | 2 |
(2) | Explanation of Financial Position | 3 |
(3) | Explanation of Consolidated Forecast and Other Forward -looking Statements | 4 |
2. Quarterly Consolidated Financial Statements and Notes | 5 | |
(1) | Quarterly Consolidated Balance Sheet | 5 |
(2) | Quarterly Consolidated Statements of Income and Comprehensive Income | 7 |
(3) | Quarterly Consolidated Statement of Cash Flows | 9 |
(4) | Notes to Quarterly Consolidated Financial Statements | 10 |
Going Concern Assumption | 10 | |
Significant Changes in Shareholders' Equity | 10 | |
Segment and Other Information | 10 |
1
Orchestra Holdings Inc. (6533) Financial Results for the Second Quarter of 2021
1. Qualitative Information on Quarterly Consolidated Financial Performance
(1) Explanation of Results of Operations
The shortage of IT professionals in Japan is becoming increasingly severe as progress continues in the IT sector and Japan's population ages and declines. According to an IT Professional Supply and Demand Survey conducted for the Ministry of Economy, Trade and Industry, Japan will have a shortage of about 4 50,000 IT engineers by 2030.
As the digital transformation (DX) advances, an increasing number of companies are adopting a "cloud first" strategy for improving productivity and the efficiency of business processes. In addition, more companies are utilizing public cloud services to solve urgent business process issues involving telework, strengthening digital business activities and other measures in response to the pandemic. In 2020, companies briefly held down IT investments and projects were delayed because of declarations of a state of emergency. Nevertheless, Japan's public cloud service market grew by 19.5% in 2020 to 1,065.4 billion yen. This market is forecast to grow about 140% to reach 2,586.6 billion yen by 2025, in an annual average growth rate of 19.4%, according to the Japan Public Cloud Services Market Forecast 2021-2025 of International Data Corporation Japan.
In the digital marketing sector, internet advertising in Japan increased 5.9% to 2,229.0 billion yen in 2020 according to Dentsu Inc. There was a brief decline in internet advertising because of the pandemic, but this category subsequently recovered faster than other advertising media did as the internet category continued to grow. The market for programmatic advertising, which is the prim ary service of the Orchestra Group, increased 9.7% in 2020 to 1,455.8 billion yen according to Dentsu as this category continued to grow even during the pandemic. We believe that the digitalization of the advertising business will continue.
In the digital transformation business, we are continuing to make progress with making this a source of growth for the Orchestra Group. We are strengthening capabilities in the cloud integration sector and recruiting and training people to build a stronger infrastructure for technology and product development programs. In the digital marketing business, sales activities aimed at growth are continuing with emphasis on programmatic advertising, the key service of this business. In addition, we strengthened the framework for providing assistance for the overall optimization of marketing activities, including support involving marketing automation and customer relationship management. In other businesses, there were promotions to attract new users in the platform business and investments for the growth of new businesses.
In the first half of 2021, net sales increased 36.5% year on year to 7,577 million yen. Operating profit increased 126.2% to 681 million yen, ordinary profit increased 131.1% to 692 million yen, and profit attributable to owners of parent increased 144.3% to 436 million yen.
Business segment performance was as follows:
To more appropriately disclose the results of operations of the reportable segments, beginning with the first quarter of 2021, the method for allocating some expenses to individual segments has been changed to a standard that more accurately reflects the actual operations of each segment. Earnings and losses in the first half of 2020 are also based on this revised allocation method.
1) Digital Transformation Business
Since the launch of this business, we have been using M&A and the recruitment of IT personnel in order to build a larger and stronger infrastructure for developing technologies and products. The demand for IT is increasing as the utilization of IT becomes more diverse and advanced. By targeting this demand, this business steadily received orders for cloud integration, the development of web systems and smartphone apps, and other services.
As a result, first half sales were 1,941 million yen, up 20.4% year on year and segment profit (operating profit) increased 99.4% to 223 million yen.
2) Digital Marketing Business
As the internet advertising market continues to grow, this business received a larger volume of orders from existing customers as well as orders from new customers, chiefly in the core programmatic advertising category.
2
Orchestra Holdings Inc. (6533) Financial Results for the Second Quarter of 2021
As a result, first half sales were 5,349 million yen, up 43.8% year on year and segment profit (operating profit) increased 65.2% to 820 million yen.
3) Others
The platform business, which is mainly the Urara Chat Fortune Teller app, is the main component of this sector. Other activities are the development and sale of Skill Navi, a comprehensive human resources management system for companies, and activities involving new businesses.
As a result, first half sales were 317 million yen, up 41.9% year on year and segment profit (operating profit) was 22 million yen, compared with a loss of 1 million yen one year earlier.
(2) Explanation of Financial Position
- Assets, liabilities and net assets Assets
Total assets increased 3,406 million yen from the end of 2020 to 8,095 million yen at the end of the second quarter of 2021. This was mainly due to increases of 2,891 million yen in cash and deposits and 371 million yen in notes and accounts receivable-trade.
Liabilities
Total liabilities increased 970 million yen from the end of 2020 to 3,774 million yen. This was mainly due to a decrease of 149 million yen in borrowings, and increases of 736 million yen in income taxes payable and 313 million yen in accounts payable-trade.
Net assets
Net assets increased 2,435 million yen from the end of 2020 to 4,320 million yen. This was mainly due to increases of 1,674 million yen in capital surplus due to sales of part of shares of consolidated subsidiary Sharing Innovations Inc. and 368 million yen in retained earnings due to recording of profit attributable to owners of parent.
2) Cash flows
Cash and cash equivalents (hereinafter, "cash") at the end of the second quarter of 2021 increased 3,658 million yen from the same period of 2020 to 4,304 million yen. The cash flow components and the main reasons for changes are as follows.
Cash flows from operating activities
Net cash provided by operating activities was 455 million yen, compared with net cash used of 17 million yen in the same period of 2020. Main factors include profit before income taxes of 692 million yen and a 313 million yen increase in trade payables, while there was a 354 million yen increase in trade receivables.
Cash flows from investing activities
Net cash used in investing activities increased 9 million yen from the same period of 2020 to 129 million yen. Main factors include purchase of shares of subsidiaries resulting in change in scope of consolidation of 120 million yen.
Cash flows from financing activities
Net cash provided by financing activities increased 2,469 million yen from the same period of 2020 to 2,563 million yen. Main factors include proceeds from sale of shares of subsidiaries not resulting in change in scope of consolidation of 2,582 million yen and proceeds from share issuance to non-controlling shareholders of 198 million yen.
3
This is an excerpt of the original content. To continue reading it, access the original document here.
Attachments
- Original document
- Permalink
Disclaimer
Orchestra Holdings Inc. published this content on 08 September 2021 and is solely responsible for the information contained therein. Distributed by Public, unedited and unaltered, on 08 September 2021 07:01:07 UTC.