Summary of Financial Results for the Year Ended December 2021
[Japan GAAP] (Consolidated)
February 10, 2022 | ||
Name of Company: | LTS, Inc. | Stock Exchange Listing: Tokyo |
Stock Code: | 6560 | URL https://lt-s.jp/ |
Representative: | Title: President and CEO | Name: Hiroaki Kabashima |
Contact Person: | Executive Vice President and Manager of Group | |
Management Office | Name: Sungil Lee Phone: +81-3-5312-7010 | |
Date of regular general meeting of shareholders: | March 16, 2022 | |
Date of filing of securities report: | March 17, 2022 | |
Date of commencement of dividend payment: | − | |
Preparation of supplementary materials: | Yes | |
Convening of a results meeting: | Yes |
(Amounts less than one million are rounded down)
1. Financial results for the current fiscal year (January 1, 2021 - December 31, 2021)
(1) Operating results (consolidated) | (Percentage figures represent year-on-year change) | ||||||||||
Net sales | Operating profit | Ordinary profit | Profit attributable to | ||||||||
owners of parent | |||||||||||
million yen | % | million yen | % | million yen | % | million yen | % | ||||
Year ended December 2021 | 7,375 | 32.7 | 600 | 25.4 | 579 | 29.6 | 388 | 43.7 | |||
Year ended December 2020 | 5,555 | 46.6 | 478 | 55.5 | 447 | 50.0 | 270 | 34.0 |
(Note) Comprehensive income | Year ended December 2021: | Year ended December 2020: | |||||||||
386 million yen (48.6%) | 259 million yen (28.8%) | ||||||||||
Profit per share | Profit per share fully | Return on equity | Ratio of ordinary | Ratio of operating | |||||||
diluted | profit to assets | profit to net sales | |||||||||
yen | yen | % | % | % | |||||||
Year ended December 2021 | 93.24 | 87.56 | 20.4 | 12.4 | 8.1 | ||||||
Year ended December 2020 | 66.47 | 61.08 | 16.7 | 13.3 | 8.6 | ||||||
(Reference) | Share of loss (profit) of entities | Year ended December 2021: | Year ended December 2020: | ||||||||
accounted for using equity method | (18 million yen) | (1 million yen) | |||||||||
(2) Financial position (consolidated) | |||||||||||
Total assets | Net assets | Capital adequacy ratio | Net assets per share | ||||||||
million yen | million yen | % | yen | ||||||||
Year ended December 2021 | 5,080 | 2,076 | 40.9 | 489.41 | |||||||
Year ended December 2020 | 4,297 | 1,732 | 40.2 | 420.91 | |||||||
(Reference) | Shareholders' equity | Year ended December 2021: | Year ended December 2020: | ||||||||
2,076 million yen | 1,729 million yen |
(Note) During the first three months of the fiscal year under review, provisional accounting associated with business combination was finalized, and the figures for the fiscal year ended December 2020 have been restated to reflect this.
(3) Cash flow position (consolidated)
Cash flows from | Cash flows from | Cash flows from | Cash and cash equivalents | |
operating activities | investing activities | financing activities | at end of period | |
million yen | million yen | million yen | million yen | |
Year ended December 2021 | 421 | -399 | -277 | 2,224 |
Year ended December 2020 | 468 | -163 | 988 | 2,479 |
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2. Dividends
Dividend per share | Total annual | Payout ratio | Dividends/net | |||||
assets | ||||||||
dividend | (consolidated) | |||||||
End of Q1 | End of Q2 | End of Q3 | End of FY | Total | (consolidated) | |||
yen | yen | yen | yen | yen | million yen | % | % | |
Year ended December 2020 | − | 0.00 | − | 0.00 | 0.00 | − | − | − |
Year ended December 2021 | − | 0.00 | − | 0.00 | 0.00 | − | − | − |
Year ended December 2022 | − | 0.00 | − | 0.00 | 0.00 | − | ||
(forecast) | ||||||||
3. Forecast for the fiscal year ending December 2022 (January 1, 2022 - December 31, 2022)
(Percentage figures represent year-on-year change)
Net sales | Operating profit | Ordinary profit | Profit attributable to | Profit per share | ||||||
owners of parents | ||||||||||
million yen | % | million yen | % | million yen | % | million yen | % | yen | ||
Full year | 8,542 | 15.8 | 480 | -20.0 | 460 | -20.7 | 297 | -23.5 | 69.99 | |
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* Notice
(1) Changes in main subsidiaries (Changes in specific subsidiaries accompanied by changes in the scope of consolidation): None
New consolidations: | company(ies) (Company name(s)); Exclusions: | company(ies) (Company name(s)) |
- Changes in accounting policies, accounting estimates, and restatements
- Changes in accounting policies due to revision of accounting standards: No
- Changes in accounting policies other than those in (a): No
- Changes in accounting estimates: No
- Restatements: No
- Number of shares outstanding (common shares)
(a) Shares outstanding (including treasury shares) at | Year ended | 4,371,100 shares | Year ended | 4,197,400 shares |
end of period | December 2021 | December 2020 | ||
(b) Treasury shares at end of period | Year ended | 127,802 shares | Year ended | 87,658 shares |
December 2021 | December 2020 | |||
(c) Average number of shares during period | ||||
Year ended | 4,165,590 shares | Year ended | 4,067,130 shares | |
December 2021 | December 2020 | |||
- Financial results summaries are not subject to audit.
-
Cautionary statement regarding business results forecasts and special notes
The financial forecasts and other forward-looking statements herein are based on currently available information and assumptions considered by the Company to be reasonable and do not represent a commitment from the Company that they will be achieved. Actual results may differ substantially due to various factors.
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- Contents of Accompanying Materials
1. Analysis of Operating Performance and Financial Position ................................................................................................................... | 5 | |
(1) | Overview of Operating Results ........................................................................................................................................................ | 5 |
(2) | Explanation of Financial Position .................................................................................................................................................... | 6 |
(3) | Overview of Cash Flows .................................................................................................................................................................. | 6 |
(4) | Future Outlook ................................................................................................................................................................................. | 6 |
2. Basic Approach to Selection of Accounting Standards .......................................................................................................................... | 7 | |
3. Consolidated Financial Statements and Main Notes .............................................................................................................................. | 8 | |
(1) | Consolidated Balance Sheet ............................................................................................................................................................. | 8 |
(2) | Consolidated Statement of Income and Consolidated Statement of Comprehensive Income ........................................................ | 10 |
(3) | Consolidated Statement of Changes in Net assets .......................................................................................................................... | 12 |
(4) | Consolidated Statement of Cash Flows .......................................................................................................................................... | 14 |
(5) | Notes to the Consolidated Financial Statements ............................................................................................................................ | 16 |
(Notes Related to Going Concern Assumptions) ............................................................................................................................. | 16 | |
(Changes in method of presentation) ............................................................................................................................................... | 16 | |
(Notes - Business Combinations)..................................................................................................................................................... | 16 | |
(Segment Information)..................................................................................................................................................................... | 17 | |
(Per Share Information) ................................................................................................................................................................... | 20 | |
(Significant Subsequent Events) ...................................................................................................................................................... | 21 |
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1. Analysis of Operating Performance and Financial Position
(1) Overview of Operating Results
During the fiscal year under review, the Japanese economy continued to struggle due to COVID-19. Despite the recovery trend seen in the economy from the effects of stimulus measures, the number of cases has continued to fluctuate up and down in Japan and around the world, so the future of the economy remains uncertain.
In the information services industry, which is the main business domain of our Group (the Company and its consolidated subsidiaries; the same applies hereinafter), COVID-19 has had a prolonged impact on corporate management. Digital transformation (DX) continues to attract a high level of attention for addressing changes in the social environment during and after the COVID-19 pandemic. As such, demand remains strong for providing support for such internal reform activities as work style reform, including introducing task performing robots such as AI and RPA (robotic process automation) and promoting telecommuting.
Under these circumstances, the Group has established a medium-term business plan with this year as the first year of the plan and has been developing a professional services business and a platform business as a company that supports and promotes corporate transformation and work style reform. In our professional services business, we enter our customers' work sites and deliver expected solutions, utilizing robotics, AI, and business process management to provide one-stop support catered to the customer's unique challenges and reform objectives. In this business, we promoted efforts to expand our capacity to provide stable services, including cooperation with outside companies, active hiring of human resources, and establishment of a foundation for human resources development. In our platform business, we solve IT personnel shortages and, in addition to actively rolling out existing Assign Navi and Consultant Job services, we promoted development of our new CS Clip service that matches operating companies with DX companies.
As a result of the above, during the fiscal year under review, we achieved net sales of ¥7,375.205 million yen (up 32.7% year on year), operating profit of ¥600.198 million (up 25.4% year on year), and ordinary profit of ¥579.730 million (up 29.6% year on year), and profit attributable to owners of parent of ¥388.409 million (up 43.7% year on year).
A summary of financial results by segment (net sales includes internal sales) is provided below.
(Professional Services Business)
In our professional services business, the environment surrounding our IT division is undergoing drastic changes due to various restrictions on corporate activities. In the midst of these circumstances, favorable conditions created by robust demand for DX provided a boost for us to steadily acquire traditional consulting projects (operational analysis/design, IT introduction support, on-site deployment) based on our strength of visualizing and improving operations utilizing business process management. We also promoted closer collaboration with technology companies and other outside companies. We expanded our business in the Shizuoka and Tokai area by making SOFTEC Co., Ltd. a consolidated subsidiary and promoted digital transformation in the administrative domain by entering a business alliance with Loglass Inc and Outlook Consulting Co., Ltd. Furthermore, we moved ahead with innovative projects in the field of DX, including development of an AI-driven automated shelving planning algorithm jointly with Kao Group Customer Marketing Co., Ltd. Also, we actively communicated information by publishing books, holding seminars, utilizing owned media, and more, with the aim of increasing our visibility and strengthening branding.
As a result, net sales in the professional services business came to ¥7,125.017 million (up 32.8% year on year) and segment profit (operating profit) came to ¥550.462 million (up 27.1% year on year).
(Platform Business)
In the platform business, the number of members in the Assign Navi platform, which provides business matching and a learning forum specialized for the IT industry, grew to 11,436 including both corporate and individual members as of December 31, 2021. This steady growth represents a 1,230-member increase over the end of the previous year. Net sales trended strongly due to increased matching in conjunction with growth of our member base and changes in the rate plans for Assign Navi and Consultant Job aimed at further activation. At the same time, we continued to invest in the development of our new CS Clip service, as well as conducted more aggressive marketing activities aimed at monetization and reinforced our organizational structure for boosting the profitability of existing services.
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LTS Inc. published this content on 02 March 2022 and is solely responsible for the information contained therein. Distributed by Public, unedited and unaltered, on 02 March 2022 01:29:02 UTC.