Macromill : FY6/2023 Q1 Financial Results Presentation Material

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Notes for this entire material

1. EBITDA = Operating Profit + Depreciation and Amortization + Loss on Retirement of Non-current Assets + Impairment Loss (For Segment EBITDA, applied Segment Profit instead of Operating Profit)
2. Revenue and operating profit of each segment and region are shown using figures before elimination of inter-segment offsets, and the total amount of revenue and operating profit of both segments or regions do not match the consolidated revenue and operating profit (the difference is the amount of intersegment / interregional elimination)
3. Constant FX figures are calculated by applying the rate of the current fiscal year to the financial results of the same period of the previous fiscal year. We present financials results on a constant currency basis because we believe that this provides a framework for assessing how Macromill's business and, in particular, overseas businesses including MetrixLab and Macromill EMBRAIN, performed without taking into account the effect of the fluctuations between the euro and the yen since the same period in the prior year, but please note , it only excludes the effect of currency exchange between the Euro/Yen and the Won/Yen, but not exclude the effects of currency exchange on all local currencies (for example, between the Euro/USD).Please see the following table for the actual exchange rate applied.

		Q1 (3 months)
	FY6/2022 Q1	FY6/2023 Q1
1 Euro =	130.18	139.59
1 KRW =	0.0955	0.1033

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FY6/2023 Q1 Key Takeaways

Q1 (3 months) Actual

Consolidated
Revenue	：	12.43 bn JPY YoY +14%	OP 0.81bn JPY YoY -28%
Performance
		：
			(+11% in CFX)	( -29% in CFX)

• Consolidated Revenue achieved double-digit growth as strong demand for our services continued from the previous fiscal year
• Operating Profit decreased due to the impact of increased Total Employee Expenses caused by the expansion of operational capacity
• Q1 results are progressing as expected against full-year guidance, and we will continue to aim for double-digitRevenue and Profit growth on the full-yearbasis
• We made steady progress in improving productivity and expanding operational capacity as planned
• To achieve the Mid-term Business Plan (MTBP), we will continue to promote the expansion of operational capacity by centered on improving productivity
• We are aiming for continuous Revenue growth and steady improvement in Profit margins

FY6/2023 Q1 Financial Update

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FY6/2023 Q1: Consolidated Results - Summary

Q1 Revenue achieved double-digit growth as strong demand for our services continued from the previous fiscal year

Operating Profit decreased YoY due to an increase in costs associated with the expansion of operational capacity, but improved significantly from FY6/2022 Q4

Q1 results are progressing as expected against full-year guidance

Revenue

Operating Profit (OP)

Consolidated (IFRS)						Consolidated (IFRS)
(JPY in Millions)				Company		(JPY in Millions)
Numbers, which are written under the			Guidance		Numbers, which are written under the
full-year results, in parentheses are YoY			56,000		full-year results, in parentheses are YoY
growth rate						growth rate
				(+12%)
				49,810
							7,751					Company
				(+15%)								Guidance
			43,175			Q4		927					6,550
	44,279	41,270								(+13%)
	(+5%)							FY6/2020		5,814
		(-7%)	11,858
							w/o Impairment loss	Q Breakdown	5,362	(+8%)
	10,025								5,676
Q4		10,070							(+1,251%)
7,718			Q3		2,809
					43,565				215
									2,441		2,405
				13,521
Q3	12,072	11,784	12,068								2,300		5,734
									Impairment
									loss of
				13,539		Q2		2,428	Goodwill
Q2	11,792
11,885		YoY Growth				(5,280)	2,395		2,580
11,939
					+14%						2,164		YoY Growth
					12,435								-28%
Q1	10,388	9,882	9,097	10,890	Q1		1,586
			1,212		1,131	815
										682
									396
											(303)
	FY6/2019	FY6/2020	FY6/2021	FY6/2022	FY6/2023			FY6/2019	FY6/2020	Q4	FY6/2021	FY6/2023
			(5,653)	FY6/2022
										w/o Impairment
										Loss
						Q1				(373)
												6.6%
						OP Margin	15.3%		12.3%	7.5%	10.4%