Advance Create : FY09/21 Results Briefing Materials

Advance Create Co., Ltd.

FY09/21 Results Briefing Materials

(October 2020 to September 2021)

November 12, 2021

Securities code: 8798

Contents

I. FY09/21 Results Overview	3
 Results Highlights	4
 Financial Statements	5
 Segment Information	8
II. Advance Create Overview	12
III. Company Strategy	22
IV. Recent Developments	34
 Full-Year Forecast	37
 ESG Initiatives	39
V. Supplementary Materials	41

2

I. FY09/21 Results Overview

3

FY09/21 Results Overview (1)

FY09/21 Results Highlights

― Consolidated Results ―

Net sales and profits reached all-time highs

Net sales ¥11,019 million, up ¥508 million YoY

(+4.8% YoY)

Operating

profit

¥2,041 million, up ¥857 million YoY

(+72.4% YoY)

Ordinary

profit

¥1,925 million, up ¥ 829 million YoY

(+75.7% YoY)

Profit ¥1,295 million, up ¥595 million YoY

(+85.0% YoY)

4

FY09/21 Results Overview (2)

FY09/21 Income Statement (Consolidated)

(Unit: Millions of yen)	FY09/20	Composition (%)	FY09/21	Composition (%)	YoY change
(%)

Net sales	10,510	100.0	11,019	100.0	4.8
Insurance Agency business	8,923	84.9	9,103	82.6	2.0
ASP business	183	1.7	195	1.8	6.4
Media business	1,250	11.9	1,030	9.4	(17.6)
Media Representative Services business	807	7.7	807	7.3	(0.0)
Reinsurance business	851	8.1	942	8.6	10.7
Consolidation adjustments	(1,506)	(14.3)	(1,060)	(9.6)	－
Cost of revenue	3,155	30.0	2,451	22.3	(22.3)
Gross profit	7,355	70.0	8,567	77.7	16.5
Operating expenses	6,171	58.7	6,525	59.2	5.7
Operating profit	1,184	11.3	2,041	18.5	72.4
Insurance Agency business	868	8.3	1,472	13.4	69.5
ASP business	12	0.1	50	0.5	287.1
Media business	261	2.5	221	2.0	(15.4)
Media Representative Services business	(92)	(0.9)	165	1.5	－
Reinsurance business	131	1.2	129	1.2	(1.2)
Ordinary profit	1,095	10.4	1,925	17.5	75.7
Profit	700	6.7	1,295	11.8	85.0
Earnings per share (¥)	33.37		59.66

In the Insurance Agency business, sales performance of face-to-face sales channels was up YoY due to an increase in the number of
appointments and improved profitability of online insurance consultations. Sales and profits increased due to an improvement in the
cost of revenue ratio as a result of efficient web promotions using AI and other technologies. In the ASP business, sales and profits
increased due to an increase in recurring revenue from subscriptions. In the Media business, sales and profits decreased due to
sluggish ad placements on the Hoken Ichiba website versus FY09/20. In the Media Representative Services business, sales remained
almost flat, while profits increased as a result of efforts to secure profitability through thorough cost control. In the Reinsurance	5
business, while sales remained steady, an increase in costs resulted in higher sales and lower profits.