Home Listing method SHIKIGaku Co., Ltd. (7049, TSE Mothers) Performance for the nine months ending November 30, 2021

SHIKIGaku Co., Ltd. (7049, TSE Mothers) Performance for the nine months ending November 30, 2021

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TOKYO, February 4, 2022 /PRNewswire/ — Supported by substantial growth in SHIKIGAKU’s core services, the company maintained significant increases in sales and profits in the nine months ended November 30, 2021.

Summary of results

In the nine months ended November 30, 2021, Japan’s economic outlook remained opaque due to the continued impact of the COVID-19 pandemic. However, the market demonstrates a strong need for improved organizational productivity achieved through means such as results-based employee management and rule-based organizational management that generates results regardless of the workplace used. As a result, demand for the Company’s services remains robust.

As part of its corporate philosophy “Disseminate Shikigaku and Maximize People’s Potential”, in its organization consulting business, the Shikigaku Group provides services that facilitate the dissemination of its organizational management theory “Shikigaku” to the within client organizations. To do this, the Group actively recruits and trains instructors in order to manage the quality of its instructors as closely as possible. In the sports entertainment industry, the B.LEAGUE professional basketball season has started, and the company has been engaged in marketing and actively carried out sales activities.

In the venture capital fund sector, Aidma Holdings, Inc., the first company in which SHIKIGAKU No. 1 Investment Limited Partnership invested, successfully listed shares on the TSE Mothers Index. With this listing, two beneficiary companies of SHIKIGAKU No. 1 Investment Limited Partnership proceeded to IPOs within a year and a half of its establishment. The Company considers these results as evidence that the Shikigaku method supports organizational management aimed at obtaining public listings.

For the nine months ended November 30, 2021the Company reported net sales of ¥2,808,198,000 (+65.6% over one year), EBITDA (operating income + depreciation + amortization of goodwill + amortization of rental deposits) of ¥330,080,000 (+305.4% over one year), operating profit of ¥277,565,000 (+657.7% YoY), current result of ¥263,158,000 (+134.1% over one year), and ¥141,569,000 net income attributable to owners of the parent company (versus ¥79,240,000 in net loss for the nine months ended November 30, 2020).

Through its organization consulting business, the Company provides management consulting services and platform services.

DIn the nine months ended November 30, 2021, the Company continued its investments supported by vigorous marketing activities to facilitate the active recruitment of consultants and the expansion of its client base. As a result, its number of consultants increased to 69, up 15 from February 28, 2021. From November 30, 2021the company reported that it had entered into management consulting services contracts with a cumulative total of 2,735 companies, compared to 2,187 companies at February 28, 2021. Its management consulting services have generated ¥1,645,370,000 in revenue over the nine months ended November 30, 2021 (+27.0% over one year).

DDuring the period under review, in the platform services category, the Company focused on expanding sales of its core SHIKIGAKU services, which provide ongoing operational support through to organizational management based on his Shikigaku theory (corresponding service launched in September 2020) seize. The diagnoses that accompany these services clarify the organizational problems and make it possible to accompany their possible resolution. As a result, the Company has made efforts to improve customer satisfaction. From November 30, 2021the company had entered into SHIKIGAKU Basic Service Agreements with 468 companies (compared to 167 as of February 28, 2021) while reporting 134 SHIKIGAKU Cloud agreements (compared to 229 as of February 28, 2021) and 289 Shikigaku member customers (compared to 479 as of February 28, 2021). Generated platform services ¥803,216,000 in revenue over the nine months ended November 30, 2021 (+181.9% over one year). As a result of these elements, the revenue from the Organization Consulting activity amounts to ¥2,448,586,000 (+54.9% over one year) while operating profit was ¥456,308,000 (+312.8% over one year).

In the sports entertainment sector, the Company fulfilled its function as a community club by leading initiatives aimed at stimulating and developing interest in local sports while working to facilitate team building in the pursuit of promotion at League B1 level. In the nine months ended November 30, 2021the Company expanded its business activities aimed at acquiring sponsors, broadened its scope of recruiting vendors, and strengthened its collaboration with local governments to increase tax payments made under the corporate version of from Japan hometown tax system, which became a new revenue base. Thanks in part to these efforts, sponsorship orders have been strong, growing to ¥137,395,000 (+66.7% over one year). However, costs outweighed benefits during the reporting period as the Company continued to invest in operations to strengthen the team. As a result, sales generated by the Sports Entertainment business amounted to ¥164,066,000 while the company’s operating loss amounted to ¥135,744,000.

In the area of ​​contract development, the Company leveraged its expertise and cultivated engineering sources while developing its own business group’s platform services and contracted development related to learning systems online related to certification courses. In March 2021, the company launched Work Experience DX, a recruitment matching service that allows users to simulate the experience of joining participating companies, gaining knowledge of the work they do and an understanding of their fit with those companies. In October 2021, the Company launched “Digital Interview”, a service that digitizes corporate presentations. As a result of these factors, the revenue generated by the contract development activity amounted to ¥195,545,000while the corresponding operating loss amounts to ¥3,246,000.

In the venture capital fund sector, the company has made investments focused on building and expanding organizational power and becoming a growth-generating organization. In the meantime, she has also operated venture capital funds that support growth by facilitating organizational improvements in the companies they invest in by implementing the Shikigaku Theory of Society. In June 2021, the company established SHIKIGAKU No. 2 Investment Limited Partnership, converted it into a subsidiary, and began including its performance in consolidated financial results. In October 2021the Company sold part of the shares held by SHIKIGAKU No. 1 Investment Limited Partnership and registered a 49 million yen gain on sales of marketable securities, qualifying this gain as exceptional income because it was generated by an investment made on or before June 29, 2021. Consequently, the operating loss of the Venture Capital Funds activity amounted to ¥28,928,000.

In the Hands-On Support Fund business, the Company has managed hands-on support funds which provide organizational improvement and financial support and derive income from capital gains generated by investment exits (IPO, M&A, etc). In June 2021, the Company established Shinsei Shikigaku Growth Support I Investment Limited Partnership and converted it into an equity accounted affiliate. The objective of this fund is to invest in companies destined to develop, to provide concrete support aimed at improving their financial performance and to facilitate this growth, and to raise investment capital through their sale. later. Due to the expenses associated with these efforts, the Practical Support Fund activity generated an operating loss of ¥2,716,000.

Shikigaku Co., Ltd. (7049, TSE mothers) https://ir.shikigaku.jp/en/

Please visit the following URL for a summary of consolidated financial results for the nine months ended November 30, 2021.
https://global-assets.irdirect.jp/pdf/tdnet/batch/140120211227562063.pdf

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