consolidated financial results (japanese accounting standards) · (1 october 2016 – 31 december...
TRANSCRIPT
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Consolidated Financial Results (Japanese Accounting Standards) for the First Quarter Ended 31 December 2016 (Q1 FY2017)
26 January 2017 Company Name BEENOS Inc. Stock Exchange Listing Tokyo Stock Code 3328 URL http://www.beenos.com Representative President and Group CEO Shota Naoi
Contact Executive Director and Group CFO Koji Nakamura (TEL) 03-5739-3350 Scheduled date for filing of securities
report 14FEB2017
Scheduled date of commencement
of dividend payment ―
Supplementary documents for quarterly results： Yes
Quarterly results briefing： Yes (for Analysts)
(Amounts rounded down to the nearest million yen)
１．Consolidated Financial Results for the First Quarter Ended 31 December 2016
(1 October 2016 – 31 December 2016)
（１）Consolidated Results of Operations
(Accumulated Total) (％ show year-on-year changes)
Net sales Operating income Ordinary income Net income
Million yen ％ Million yen ％ Million yen ％ Million yen ％
1Q FY2017 4,970 6.8 88 △52.5 76 △59.6 △89 ―
1Q FY2016 4,655 10.8 185 △64.4 189 △62.8 109 △71.6
(Note) Comprehensive
Income 1Q FY2017 235 Mil. yen ( 124.0 ％) 1Q FY2016 105 Mil. yen ( △80.9 ％)
Net income per share
(basic) Net income per share
(diluted)
Yen Yen
1Q FY2017 △7.31 ―
1Q FY2016 8.96 8.94
（２）Consolidated Financial Position
Total assets Net assets Equity ratio Net assets per share
Million yen Million yen ％ Yen
1Q FY2017 13,561 8,125 49.9 554.08
FY2016 13,095 8,025 51.1 548.80
(Reference) Shareholders’
equity 31DEC2016 6,773 Million yen 30SEP2016 6,695 Million yen
２．Dividends
Dividend per share
End of 1Q End of 2Q End of 3Q Year-end Total
Yen Yen Yen Yen Yen
FY2016 ― 0.00 ― 13.00 13.00
FY2017 ―
FY2017(Forecast) 5.00 ― 13.00 18.00
(Note) Revisions to dividend forecasts published most recently: None
(Note) Breakdown of the 2nd Quarter dividend forecast: 5.00 yen Commemorative Dividend
３．Consolidated Forecast for the Fiscal Year Ending 30 September 2017 (1OCT2016 – 30SEP2017) (Percentage figures for the fiscal year represent the changes from the previous year)
Net sales Operating income Ordinary income Net income Net income per
share
Million yen ％ Million yen ％ Million yen ％ Million yen ％ Yen
FY2017 20,000 4.0 1,400 16.6 1,400 15.6 750 △20.3 61.47
(Note) Revisions to most recently published financial forecasts: None
This is a translation of the original Japanese release. The Japanese text shall prevail in case of any variance between this version and the Japanese text.
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※ Notes
（１）Changes of important subsidiaries during period ： None
（２）Application of particular accounts procedures to the
preparation of quarterly consolidated financial statements ： None
（３）Changes in accounting policies and changes or restatement of accounting estimates
① Changes in accounting policies caused by revision of
accounting standards ： None
② Changes in accounting policies other than ① ： None
③ Changes in accounting estimates ： None
④ Restatement ： None
（４）Number of shares outstanding (common shares)
① Number of shares outstanding at the end of
period (including treasury shares) 1Q FY2017
12,266,600
shares FY2016
12,266,600
shares
② Number of treasury shares at end of period 1Q FY2017 42,418 shares FY2016 66,218 shares
③ Average number of shares outstanding
during the term 1Q FY2017
12,209,151
shares 1Q FY2016
12,195,696
shares
※ Status of a quarterly review
This financial summary does not need to undergo a quarterly review under the Financial Instruments and
Exchange Act. Procedures for a quarterly review of the consolidated financial statements are being followed at the
time of the announcement of this financial summary.
※ Explanations and other special notes concerning the appropriate use of business performance forecasts
The forward-looking statements such as result forecasts included in this document are based on the information
available to the Company at the time of the announcement and on certain assumptions considered reasonable, and
the Company makes no representations as to their achievability. Actual results may differ materially from the forecast
depending on a range of factors.
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○Table of Contents
１．Qualitative Information for this Quarter’s Results 4
（１）Business Performance Report 4
（２）Financial Status Report 5
（３）Report on Forecast Information including Consolidated Results 5
２．Notes on Summary Information 6
（１）Important transfers concerning the subsidiaries
this consolidated cumulative quarter 6
（２）Particular account processes in the preparation of
the quarterly consolidated financial statements 6
（３）Accounting changes, changes in accounting estimates, restatements 6
３．Quarterly Financial Statements 7
（１）Quarterly Consolidated Balance Sheet 7
（２）Quarterly Consolidated Profit & Loss Statement and
Quarterly Consolidated Statement of Comprehensive Income 9
Quarterly Consolidated Profit & Loss Statement
Consolidated Cumulative 3rd Quarter 9
Quarterly Consolidated Statement of Comprehensive Income
Consolidated Cumulative 3rd Quarter 9
（３）Notes to Quarterly Financial Statements 11
(Notes regarding the premise of a going concern) 11
(Notes regarding any significant changes in the amount of shareholder’s equity) 11
(Segment Information, etc.) 12
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１．Qualitative Information for this Quarter’s Results
（１）Business Performance Report
The BEENOS Group aims to become the “Neo-General Trading Company” by breaking new ground in IT and
internet based markets and businesses. This fiscal year’s strategical focus is to “Expand the domestic circulation
network and pioneer new contents,” “Broaden and strengthen network with foreign marketplaces,” and “Expand
the global commerce network through domestic and international investments and consultation.”
As a result, the 1st quarter consolidated net sales were 4,970 Million JPY (+6.8% from 1Q FY2016), the
operating income was 88 Million JPY (-52.5% from 1Q FY2016), the ordinary income was 76 Million JPY (-59.6%
from 1Q FY2016) and the net loss attributable to owners of the parent company was 89 Million JPY (net profit
attributable to owners of the parent company for 1Q FY2016 was 109 Million JPY).
The reason for the decrease in operating income and ordinary income compared to 1Q FY2016 is mainly
because there were no profits on operational investment securities in this quarter for the Incubation Business.
The E-Commerce Business is seeing an increase in revenue and profit. Also, the loss in profit attributable to
owners of the parent company occurred mainly because of the drawdown of deferred tax assets.
The achievements of each business segment are as follows.
① E-Commerce Business
The Cross Border Business’s Overseas Forwarding and Proxy Purchasing Business FROM JAPAN has
increased the number of compatible websites for its proxy purchasing service “Buyee” and has actively invested
in shipping fee discount promotions. It has also increased the number of accepted currencies for online payments
to better the service’s usability. The depreciated yen also served as a tailwind to boost GMV, net sales and
operating income.
The Global Shopping Business TO JAPAN implemented new services and systems as a result of the
internalization of its US warehouse and customer support. It also increased the number of marketing channels
to increase GMV, net sales and operating income.
As a result, the consolidated net sales were 1,006 Million JPY (+6.6% from 1Q FY2016) and the operating
income was at a record high 158 Million JPY (+487.8% from 1Q FY2016).
The Value Cycle Business on the purchasing side has continued to conduct mass advertising for its brand-
name product buy back service website “Brandear” from the previous quarter along with the upgrading of the
group of buyback affiliated websites to increase usability. It has also tied-up with a fashion EC website for
buyback services. As a result, buyback items and value have both increased. The vending side has conducted a
systems upgrade of its “Brandear Auction” site to increase usability and listed a lot of big ticket items for the
year-end holiday season and saw a healthy increase in net sales.
The Value Cycle Business has also made anticipatory investments in hiring more engineers to develop and
operate a new system compatible for the long term growth of the business.
As a result, the consolidated net sales were 2,664 Million JPY (+12.3% from 1Q FY2016) and the operating
income was 12 Million JPY (-17.5% from 1Q FY2016).
The Producing and Licensing Business of the Retailing and Licensing Business has strengthened its EC by
renewing the official EC websites of popular singing groups and the artists which it holds the master licensing
rights of. It also conducted a trial to increase the awareness of Japanese artist brands in the global distribution
market by selling its master licensed brand products at a store in Taiwan.
The Internet Shopping Business has increased its conversion rate by evolving its customer portfolio
management and used its resources to increase the development and sales of its original fashion and beauty
products.
As a result, the consolidated net sales were 1,296 Million JPY (+12.4% from 1Q FY2016) and the operating
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income was 47 Million JPY (-10.3% from 1Q FY2016).
For the E-Commerce Business as a whole this quarter, the consolidated net sales were 4,967 Million JPY
(+11.1% from 1Q FY2016) and the operating income was 219 Million JPY (+129.4% from 1Q FY2016).
② Incubation Business
The Incubation Business has continued to invest in businesses in online general marketplaces and online
payments in prominent emerging countries along with investing in specialized online marketplaces. It has been
focusing on large markets including automobile, real estate, fashion and healthcare.
It has also seen a business opportunity in the increasing number of foreign visitors to Japan and has invested
domestically in a business in the online homestay/guest house marketplace that offers a collective management
tool for that market.
As a result, the consolidated net sales were 2 Million JPY (-98.7% from 1Q FY2016) and the operating loss was
37 Million JPY (the operating income for 1Q FY2016 was 166 Million JPY).
（２）Financial Status Report
①Financial Status Analysis
（ⅰ）Assets
The total assets for the first quarter consolidated accounting period was 13,561 Million JPY which is an
increase of 466 Million JPY from the previous end of the consolidated fiscal year.
The breakdown of the funds are the following: Total current assets are at 12,057 Million JPY which is a 270
Million JPY increase from the end of FY2016. Increasing factors include 547 Million JPY in operational
investment securities, 226 Million JPY in accounts receivable and 192 Million JPY in notes and accounts
receivable-trade. Decreasing factors include 585 Million JPY in cash and deposits and 145 Million JPY in
deferred tax assets-current.
Furthermore, the total fixed assets rose to 1,504 Million JPY which is a 196 Million JPY increase from the
previous end of the consolidated fiscal year. The main factors were a 109 Million JPY increase in investment
account security and a 58 Million JPY increase in goodwill.
（ⅱ）Liabilities
The total liabilities for the first quarter consolidated accounting period was 5,436 Million JPY which is a 366
Million JPY increase from the previous end of the consolidated fiscal year.
The breakdown of the funds are the following: Total current liabilities are at 5,167 Million JPY which is a 336
Million JPY increase from the previous end of the consolidated fiscal year. Increasing factors include 297 Million
JPY in deposits received, 162 Million JPY in accounts payable, and 60 Million JPY in short-term loans.
Decreasing factors include 111 Million JPY in income taxes payable.
Furthermore, total fixed liabilities rose to 269 Million JPY which is a 30 Million JPY increase from the
previous end of the consolidated fiscal year. The main factor was a 30 Million JPY in long-term loans.
（ⅲ）Net Assets
The total net assets for the first quarter consolidated accounting period was 8,125 Million JPY which is a 99
Million JPY increase from the previous end of the consolidated fiscal year. Increasing factors include 250 Million
JPY in exchange conversion adjustment account and 70 Million JPY in valuation difference on available-for-sale
securities. Decreasing factors include 188 Million JPY in capital surplus and 89 Million JPY in earned surplus.
（３）Report on Forecast Information including Consolidated Results
There are no changes to the forecasts made on 27 October 2016 for the 2017 Fiscal Year.
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２．Notes on Summary Information
（１）Important transfers concerning the subsidiaries this consolidated cumulative quarter
Not applicable.
（２）Particular account processes in the preparation of the quarterly consolidated financial statements
Not applicable.
（３）Accounting changes, changes in accounting estimates, restatements
Not applicable.
（４）Additional Information
(Application of Implementation Guidance on Recoverability of Deferred Tax Assets)
The “Implementation Guidance on Recoverability of Deferred Tax Assets” (Accounting Standards Board of Japan
Guidance No. 26, 28 March 2016) has been applied as of the 1st quarter’s consolidated fiscal results.
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３．Quarterly Financial Statements
（１）Quarterly Consolidated Balance Sheet
(Unit: 1,000 JPY)
Year-end FY2016
(30 September 2016) 1Q FY2017
(31 December 2016)
Assets Section
Current Assets
Cash and Deposit 6,307,317 5,722,174
Notes and Accounts Receivable-trade 914,843 1,107,767
Operational Investment Securities 1,605,068 2,152,115
Products 1,187,282 1,236,106
Accounts Receivable 892,956 1,119,855
Deferred Tax Assets – Current 195,344 49,484
Other 704,306 688,989
Allowance for Cancellation Loss △20,076 △19,116
Total Current Assets 11,787,041 12,057,376
Fixed Assets
Tangible Assets
Buildings and Structures 327,914 344,184
Accumulated Depreciation △151,083 △158,546
Buildings and Structures (Net Base) 176,831 185,637
Tools, Materials and Supplies 117,057 122,349
Accumulated Depreciation △82,382 △86,858
Tools, Materials and Supplies (Net Base)
34,674 35,491
Total Tangible Assets 211,506 221,129
Intangible Assets
Goodwill 58,758 117,661
Other 121,222 139,639
Total Intangible Assets 179,981 257,301
Investments etc.
Investment Account Security 484,061 593,257
Deferred Tax Assets – Current 19,016 18,299
Other 415,300 414,333
Allowance for Cancellation Loss △1,749 ―
Total Investments etc. 916,628 1,025,890
Total Fixed Assets 1,308,116 1,504,322
Total Assets 13,095,158 13,561,698
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(Unit: 1,000 JPY)
Year-end FY2016
(30 September 2016) 1Q FY2017
(31 December 2016)
Liabilities Section
Current Liabilities
Accounts Payable 395,301 557,328
Short-term Loans 914,655 975,160
Current Portion of Long-term Debts 20,160 19,992
Accounts Payable – Other 2,486,366 2,456,434
Deposits Received 292,712 590,430
Income Taxes Payable 245,083 133,675
Deferred Tax Debts – Non current 79 23,779
Other 476,275 410,292
Total Current Liabilities 4,830,634 5,167,093
Fixed Liabilities
Long-term Loan 74,842 104,932
Deferred Tax Debts – Non current 148,144 148,507
Asset Retirement Obligation 7,740 7,998
Other 8,188 7,613
Total Fixed Liabilities 238,915 269,051
Total Liabilities 5,069,549 5,436,144
Net Assets Section
Capital Stock
Capital Stock 2,725,977 2,725,977
Capital Surplus 3,129,121 2,940,742
Earned Surplus 955,054 865,860
Common Stock for Treasury △94,498 △60,484
Total Capital Stock 6,715,654 6,472,095
Accumulated Other Comprehensive Income
Valuation Difference on Available-for-sale Securities
△42,932 27,494
Exchange Conversion Adjustment Account 22,834 273,614
Total Accumulated Other Comprehensive Income
△20,097 301,108
Equity Warrant 14,235 6,299
Minority Stockholder Equity Interest 1,315,815 1,346,050
Total Net Assets 8,025,608 8,125,554
Total Liabilities 13,095,158 13,561,698
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（２）Quarterly Consolidated Profit & Loss Statement and Quarterly Consolidated Statement of Comprehensive
Income
Quarterly Consolidated Profit & Loss Statement
Consolidated Cumulative 1st Quarter
(Unit: 1,000 JPY)
1Q FY2016 (1 October 2015 –
31 December 2015)
1Q FY2017 (1 October 2016 –
31 December 2016)
Net Sales 4,655,380 4,970,334
Cost of Sales 2,279,710 2,424,975
Gross Sales 2,375,670 2,545,359
Selling, General and Administrative Expenses 2,190,162 2,457,213
Operating Income 185,508 88,145
Non-operating Income
Interest Income 19 50
Gain on bad debts recovered ― 1,149
Gain on investments in partnership 853 5,769
Other 8,310 2,131
Total Non-operating Income 9,183 9,101
Non-operating Expenses
Interest Expenses 979 2,727
Exchange Loss 3,320 16,857
Equity in Losses of Affiliates 403 444
Other 0 454
Total Non-operating Expenses 4,703 20,484
Ordinary Income 189,988 76,762
Quarterly Income Before Income Taxes 189,988 76,762
Income Taxes – Current 35,232 10,784
Income Taxes – Deferred 42,846 151,413
Total Income Taxes 78,079 162,197
Quarterly Net Income 111,909 △85,435
Profit Attributable to Non-controlling Interests 2,661 3,758
Profit Attributable to Owners of Parent 109,248 △89,194
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Quarterly Consolidated Statement of Comprehensive Income
Consolidated Cumulative 1st Quarter
(Unit: 1,000 JPY)
1Q FY2016 (1 October 2015 –
31 December 2015)
1Q FY2017 (1 October 2016 –
31 December 2016)
Quarterly Net Income 111,909 △85,435
Other Comprehensive Income
Valuation Difference on Available-for-sale Securities
△7,349 70,569
Foreign Currency Translation Adjustment 158 237,001
Re-measurements of Defined Benefit Plans, Net of Tax
557 13,634
Share of Other Comprehensive Income of Entities Accounted for Using Equity Method
△6,633 321,205
Quarterly Comprehensive Income 105,276 235,770
(Breakdown)
Comprehensible Income Attributable to Owners of the Parent
102,615 232,011
Comprehensible Income Attributable to Non-controlling Interests
2,661 3,758
―11―
（３）Notes to Quarterly Financial Statements
(Notes regarding the premise of on-going concerns)
Not Applicable
(Notes regarding any significant changes in the amount of shareholder’s equity)
Not Applicable
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(Segment Information, etc.)
Ⅰ Previous Consolidated Cumulative 1st Quarter (1 October 2015 ~ 31 December 2015)
１．Information regarding the amount of sales and profit or loss by reporting segment
(Unit: 1,000 JPY)
Reporting Segment
Adjustments *1
Recorded
Amount on
Quarterly
Consolidated
Profit & Loss
Statement
*2
E-Commerce Business
Incubation
Business Total Cross
Border Business
Value Cycle
Business
Retailing Licensing Business
Subtotal
Net Sales
Sales to Customers
943,956 2,373,142 1,153,752 4,470,851 184,529 4,655,380 ― 4,655,380
Internal Sales or Transfers Between Segments
― ― ― ― ― ― ― ―
Total 943,956 2,373,142 1,153,752 4,470,851 184,529 4,655,380 ― 4,655,380
Segment Earnings 27,019 15,709 52,773 95,502 166,926 262,428 △76,920 185,508
*１．The segment earnings adjustment of △76 Million JPY includes the deletion of inter-segment
transactions of △79 Million JPY, company-wide revenue of 147 Million JPY that is not distributed to each
reporting segment and company-wide costs of △144 Million JPY. Company-wide revenues are mainly the
Company’s received commission from each subsidiary. Company-wide costs are mainly the Company’s
administrative costs toward the subsidiaries.
*２．Segment profits are adjusted in the operating income of the Quarterly Consolidated Profit & Loss
Statement
Ⅱ Current Consolidated Cumulative 1st Quarter (1 October 2016 ~ 31 December 2016)
１．Information regarding the amount of sales and profit or loss by reporting segment
(Unit: 1,000 JPY)
Reporting Segment
Adjustments *1
Recorded
Amount on
Quarterly
Consolidated
Profit & Loss
Statement
*2
E-Commerce Business
Incubation Business
Total Cross Border
Business
Value Cycle
Business
Retailing Licensing Business
Subtotal
Net Sales
Sales to Customers
1,006,613 2,664,498 1,296,831 4,967,943 2,391 4,970,334 ― 4,970,334
Internal Sales or Transfers Between Segments
― ― ― ― ― ― ― ―
Total 1,006,613 2,664,498 1,296,831 4,967,943 2,391 4,970,334 ― 4,970,334
Segment Earnings
158,809 12,967 47,347 219,124 △37,613 181,510 △93,365 88,145
*１．The segment earnings adjustment of △93 Million JPY includes the deletion of inter-segment
transactions of △53 Million JPY, company-wide revenue of 121 Million JPY that is not distributed to each
reporting segment and company-wide costs of △161 Million JPY. Company-wide revenues are mainly the
Company’s received commission from each subsidiary. Company-wide costs are mainly the Company’s
administrative costs toward the subsidiaries.
*２．Segment profits are adjusted in the operating income of the Quarterly Consolidated Profit & Loss
Statement