SIGMAXYZ : Consolidated Financial Results Supplementary Document for the Fiscal Year Ended March 31, 2021

Consolidated Financial Results Supplementary Document FY20

April 22, 2021/ SIGMAXYZ Inc. (Stock Code: 6088)

Outline of Financial Results for FY20

Summary		(YoY)
	Consolidated revenue	JPY 14.02 bn	(-12%)
 Profit before income taxes	JPY 1.94 bn	(-11%)
	Profit attributable to	JPY 1.21 bn	(-14%)
	owners of parent

• Despite the impact of the COVID-19 pandemic, the volumes of orders received for consulting services have recovered to near year-ago levels after 2Q FY20. We continued to deliver services by making maximum use of the digital workplace environment through the consolidated accounting period.
• Revenue decreased due to consulting services for the aviation industry, which has been severely affected by the COVID-19 pandemic, and also to a phased scale-down of hardware and software products procurement services on behalf of clients in the retail industry which have contributed only marginally to profit.
• ERP cloud migration services, DX strategy planning for companies, activation of human capitals and organizations, and projects that support new business and service developments contributed to the Group's business performance.

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Consolidated Income Statement for FY20

	FY19	FY20	YoY change
Unit: JPY mn			Major changes
(Apr to Mar)	(Apr to Mar)	Amount	Rate
Revenue	16,003	14,024	-1,978	-12%	- Despite the growth in ERP
cloud migration services,
					services for the aviation
					industry and product sales
Gross profit	6,172	5,324	-848	-14%	decreased due to the
COVID-19 pandemic.
S, G&A	3,961	3,576	-384	-10%	- Increase in personnel costs
expenses	associated with recruitment,
				investments for solution
					development and
Operating profit	2,211	1,747	-463	-21%	productivity improvement,
and costs following
					measures taken for COVID-
			-366	-17%	19. Reduced other costs.
Ordinary profit	2,164	1,797
Profit before	2,176	1,945	-231	-11%	- Profit from the sale of
income taxes	investment securities.
Profit	1,407	1,210	-197	-14%

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Key Performance Index (KPI)

	FY19	FY20	YoY change
	(Apr to Mar)	(Apr to Mar)
Number of employees	524	554	+6%
(Number of consultants)	(459)	(481)	(+5%)
Client Satisfaction (NSI*)	95	94	-1pt
Number of projects **	1,165	1,019	-13%
Number of clients ***	202	213	+5%
Revenue per contract	13.7	13.8	+0.7%
(Million yen)

• NSI (Net Satisfaction Index): Average score from 5 possible ratings for 10 questions evaluating project satisfaction. Conducted in a questionnaire format for the client project owner. 5 ratings - 5: I really agree 100 points; 4: I agree 75 points; 3: I can't say either way 50 points; 2: I don't agree 25 points; 1: I don't agree at all 0 points
• Number of projects: Projects for which revenue has been recorded over the consolidated cumulative period are aggregated by contract.
• Number of clients: Clients of projects for which revenue has been recorded over the consolidated cumulative period are aggregated by corporation.

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Consolidated Balance Sheet for FY20

Unit: JPY mn	End of	End of	YoY change	Major changes
FY19	FY20	(Amount)
Current assets	6,943	8,015	+1,072	- Increase in cash and deposits, and
				decrease in accounts receivable
Cash and deposits	4,175	5,275	+1,100	- Borrowings and dividend payments
Non-current assets	2,725	2,267	-458	- Decrease in investment securities
Total assets	9,669	10,283	+614
				- Borrowings and the reduction of
Current liabilities	3,424	3,239	-185
				income tax payables, etc.
Non-current	1,208	1,581	+373	- Increase in provisions for share-
liabilities
			based remuneration.
Total liabilities	4,632	4,821	+188
				- Reduction due to dividend payments
Net assets	5,036	5,462	+426
(Reference) Estimation of equity ratio if
Equity ratio	52%	53%	+1%	short-term borrowings are repaid
End of FY19: 59% End of FY20: 63%

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