Profit Growth Through Cost Reduction and Improved Expense Ratios

「Cost of sales for the six-month period of the current fiscal year was ¥332,654 thousand, up 37.8% year on year, and the cost-of-sales ratio increased by 0.2 percentage points from 30.1% in the same period of the previous fiscal year to 30.3%. This was mainly attributable to increases in production costs, labor costs and depreciation, offset by an increase in transfers to other accounts, which reduced costs.」

「The SG&A ratio rose 5.1 percentage points year on year to 48.1%, primarily reflecting the impact of newly consolidated entities, including amortization of goodwill and other assets and personnel expenses.」

「Cost of sales for the current consolidated fiscal year was ¥541,013 thousand, up 9.9% from the previous consolidated fiscal year, but the cost-of-sales ratio improved by 4.5 percentage points from 34.1% in the previous consolidated fiscal year to 29.6%.」

「Cost of sales for the six-month period of the current fiscal year was ¥241,454 thousand, down 2.3% year on year, and the cost-of-sales ratio was 30.1%, compared with 35.4% in the same period of the previous fiscal year. This was mainly attributable to an increase in transfers to other accounts associated with new product development, which reduced costs, and decreases in depreciation and payment commissions, despite an increase in production costs.」

「Cost of sales for the current consolidated fiscal year was ¥492,247 thousand, up 6.2% from the previous consolidated fiscal year, but the cost-of-sales ratio improved by 1.7 percentage points from 35.8% in the previous consolidated fiscal year to 34.1%. As a result, gross profit was ¥951,208 thousand, up 14.4% from the previous consolidated fiscal year. Selling, general and administrative expenses for the current consolidated fiscal year were ¥567,739 thousand, up 7.6% from the previous consolidated fiscal year, but the SG&A expense ratio to revenue improved by 1.4 percentage points from 40.7% to 39.3%.」

「Cost of sales for the six-month period of the current fiscal year was ¥247,038 thousand, up 15.9% year on year, and the cost-of-sales ratio was 35.4%, compared with 35.7% in the same period of the previous fiscal year. Selling, general and administrative expenses for the six-month period of the current fiscal year were ¥279,683 thousand, up 17.9% year on year, and the SG&A expense ratio to revenue was 40.1%, compared with 39.7% in the same period of the previous fiscal year.」

「Cost of sales for the cumulative first quarter of the current fiscal year was ¥120,902 thousand, up 16.2% year on year. This was mainly attributable to increases in production costs, labor costs and depreciation. The cost-of-sales ratio was 34.8%, compared with 35.3% in the same period of the previous fiscal year. As a result, gross profit was ¥226,718 thousand, up 19.1% year on year. Selling, general and administrative expenses for the cumulative first quarter of the current fiscal year were ¥136,955 thousand, up 15.0% year on year. This was mainly attributable to increases in personnel expenses, goodwill amortization and amortization of customer-related assets, partly offset by a decrease in payment commissions. The SG&A expense ratio to revenue was 39.4%, compared with 40.5% in the same period of the previous fiscal year.」

「In terms of expenses, although there were effects from foreign exchange movements and an increase in goodwill amortization associated with the acquisition of subsidiaries, including amortization of customer-related assets, the cost-of-sales ratio and SG&A expense ratio improved due to ongoing cost-reduction measures and steady revenue growth. Cost of sales for the current consolidated fiscal year was ¥463,663 thousand, up 16.0% from the previous consolidated fiscal year, but the cost-of-sales ratio improved by 0.7 percentage points from 36.5% in the previous consolidated fiscal year to 35.8%.」

「Cost of sales for the cumulative third quarter of the current fiscal year was ¥335,565 thousand, up 14.3% year on year, and the cost-of-sales ratio was 35.4%, compared with 36.6% in the same period of the previous fiscal year. This was mainly attributable to increases in production costs, payment commissions and depreciation. Selling, general and administrative expenses for the cumulative third quarter of the current fiscal year were ¥378,419 thousand, up 9.3% year on year, and the SG&A expense ratio to revenue was 39.9%, compared with 43.1% in the same period of the previous fiscal year.」

「Cost of sales for the cumulative second quarter of the current fiscal year was ¥213,073 thousand, up 12.4% year on year, and the cost-of-sales ratio was 35.7%, compared with 36.8% in the same period of the previous fiscal year. Selling, general and administrative expenses for the cumulative second quarter of the current fiscal year were ¥237,153 thousand, up 5.2% year on year, and the SG&A expense ratio to revenue was 39.7%, compared with 43.7% in the same period of the previous fiscal year.」

「Cost of sales for the cumulative first quarter of the current fiscal year was ¥104,007 thousand, up 12.1% year on year, and the cost-of-sales ratio was 35.3%, compared with 36.7% in the same period of the previous fiscal year. This was mainly attributable to increases in production costs, depreciation and labor costs.」

「Cost of sales for the current consolidated fiscal year was ¥399,796 thousand, up 9.8% from the previous consolidated fiscal year, but the cost-of-sales ratio improved by 1.3 percentage points from 37.8% in the previous consolidated fiscal year to 36.5%. This was attributable to growth in revenue from the Group's primary service, the SaaS service, as well as a variable cost ratio of 10.6% as of the end of the current consolidated fiscal year ((server costs for Google + Salesforce platform usage fees + gamba server costs) ÷ SaaS service revenue), enabling the Company to achieve a high contribution margin of 89.4%.」

「Cost of sales for the cumulative third quarter of the current fiscal year was ¥293,598 thousand, up 8.7% year on year, and the cost-of-sales ratio was 36.6%, compared with 38.2% in the same period of the previous fiscal year. This was mainly attributable to increases in production costs, payment commissions and depreciation. Selling, general and administrative expenses for the cumulative third quarter of the current fiscal year were ¥346,080 thousand, up 23.8% year on year, and the SG&A expense ratio to revenue was 43.1%, compared with 39.5% in the same period of the previous fiscal year.」

「Cost of sales for the cumulative second quarter of the current fiscal year was ¥189,623 thousand, up 5.4% year on year, and the cost-of-sales ratio was 36.8%, compared with 39.0% in the same period of the previous fiscal year. This was mainly attributable to labor costs, product production costs and platform usage fees. As a result, gross profit was ¥326,145 thousand, up 16.1% year on year.」

「Cost of sales for the cumulative first quarter of the current fiscal year was ¥92,739 thousand, up 4.4% year on year, and the cost-of-sales ratio was 36.7%, compared with 39.1% in the same period of the previous fiscal year. This was mainly attributable to labor costs, product production costs and platform usage fees. As a result, gross profit was ¥159,737 thousand, up 15.6% year on year.」

「In terms of expenses, costs declined as a result of cost-reduction measures, while the cost of sales and expenses related to operating activities remained below expectations amid efforts to prevent the spread of COVID-19. The cost-of-sales ratio improved by 3.8 percentage points from 41.6% in the previous fiscal year to 37.8%. The SG&A expense ratio to revenue improved by 3.6 percentage points from 42.1% in the previous fiscal year to 38.6%.」