Phil : 1st half of the fiscal year ending November 30,2022 Results meeting material

Phil Company, Inc

1st half of the fiscal year ending November 30, 2022 Results meeting material July 14, 2022

TSE PRIME stock code: 3267

These materials were created by Phil Company, Inc. They contain information which was current on the date they were created. The information contained herein	Copyright © Phil Company, Inc. All Rights Reserved
may change as a result of many factors including the business of the company and future forecasts.

01 Financial Highlights

1st half of the fiscal year ending Nov. 2022: Digest ①

Loss was smaller than the forecast.

			(Units: Thousands yen)
	H1 FY2021	H1 FY2022	H1 FY2022
	Result	Forecast	Result
Sales	2,111,160	1,200,000	1,399,135
Cost of sales	1,532,633	―	1,093,221
Gross profit	578,527	―	305,914
(Gross profit margin)	(27.4％)	―	(21.9％)
SG&A	343,951	―	383,159
Personnel	198,457	―	245,446
Outsourcing expenses	32,075	―	37,221
Taxes and dues	17,423	―	7,281
Advertising expenses	1,393	―	2,439
Payment fees	20,977	―	19,643
Others	73,627	―	71,129
Operating income	234,576	-195,000	-77,245
Ordinary income	227,828	-198,000	-77,769
Net income	146,864	-120,000	-50,229

Because construction

proceeded faster than expected for some PJ in the contracted orders scheme, a portion of sales and cost of sales that we expected to record in Q3 were recorded ahead of schedule in Q2.

Although there was an increase

in personnel expenses and

outsourcing expenses, because

we had budgeted for a high

level of SG&A in order to carry out our mid-term management plan, the result was well within the budgeted margin.

Loss was smaller than the forecast which was released on Jan. 14th

3	Copyright © Phil Company, Inc. All Rights Reserved

1st half of the fiscal year ending Nov. 2022: Digest ①

Changes in gross profit margin resulting from application of

new revenue recognition standards

(Units: Thousands yen)

				H1 FY2021	H1 FY2022
				Result	Result
Sales	▼Planned GPM	2,111,160	1,399,135
d	Contracted	① Plan and design	(90 - 100％)	876,496	79,657
② Design and management (50 - 60％)		73,634
e
orders	* Total amount is
t
	③ Construction	(13 - 18％)	recorded at time of	1,054,476
a
	completion
i
Development and sales		1,030,000	0
l
s
Others			204,664	191,367
Cost of sales			1,532,633	1,093,221
Gross profit			578,527	305,914
(Gross profit margin)		(27.4％)	(21.9％)

1st half of fiscal year ending Nov. 2022

Construction accounts for 75.3％ of sales.

Beginning from this fiscal year, sales are recorded separately for each service in ① - ③,

where the gross profit rate for each service is different. Because the percentage of construction service was high

during 1st half of fiscal year ending Nov. 2022, the gross profit margin was lower.

* The new revenue recognition standard is applied beginning from the year ending Nov. 2022 (refer to P. 12.)

4

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1st half of the fiscal year ending Nov. 2022: Digest ②

Recovery of orders to pre-pandemic levels and

maintaining a high order backlog

Orders received ・ Order backlog

Orders received			Orders received (left)			Orders received (left)			Order backlog (right)			Order backlog
(millions yen)					2,867							(millions yen)
3,000														3,600
		2,516					Includes one large-scale order
								with a value of 1.11 billion yen.
2,500												3,000
												2,069
2,000																	2,400
	1,300	1,545
1,500		1,317							1,334		1,800
1,135									985
1,000																1,200
									741
											534
500																	600
0																	0
millions yen			FY2017			FY2018		FY2019	FY2020	FY2021		FY2022
H1 orders		1,134	1,544		1,316	741	2,068		1,334
received
H2 orders		1,299	2,515		2,867	534	985
received
Annual orders		2,434	4,060		4,184	1,275	3,054
received
Order backlog		1,539	2,793		3,352	1,458	2,587		2,467
at year end
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