Macromill : FY6/2023 Q2 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.

	Q2 YTD (6 Months)	Q2 Standalone (3 months)
	FY6/2022 Q2 YTD	FY6/2023 Q2 YTD	FY6/2022 Q2 Standalone	FY6/2023 Q2 Standalone
1 Euro =	130.32	141.98	130.45	144.07
1 KRW =	0.0960	0.1038	0.0963	0.1040

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	FY6/2023 Q2 Key Takeaways
		Q2 Standalone (3 months)			Q2 YTD (6 months)
	Consolidated Revenue:	15.73 bn JPY	YoY +16%	Revenue:	28.17bn JPY	YoY +15%
	Performance		(in CFX +12%)				(in CFX +12%)
	OP:	2.08 bn JPY	YoY -19%	OP:	2.89bn JPY	YoY -22%
				(in CFX -22%)				(in CFX -24%)

• Q2 standalone financial result continued its trend from Q1, with double-digit growth in Consolidated Revenue and decrease in Operating Profit
• Total Employee Expenses are continuing to increase to expand operational capacity in line with the increasing demand for our services
• Q2 YTD Revenue resulted in +15% YoY, OP in -22% YoY
• The decrease in Q2 YTD OP is in line with the Initial Guidance, and both Revenue & Profits are progressing well in line with the full-year Guidance
• 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

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FY6/2023 Q2: Consolidated Results - Summary

Q2 YTD Revenue achieved double-digit growth as strong demand for our services continued

Operating Profit continued to decrease YoY but is progressing as expected against the 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
			(+15%)
44,279	41,270	43,175	Q4
(+5%)
	(-7%)	11,858
			27,826

7,751	Company
	Guidance

927		6,550
	(+13%)
	5,814
FY6/2020
(+8%)
w/o Impairment loss Q Breakdown
5,676	5,362

Q4	10,025	7,718	10,070
Q3	12,072	11,784	12,068
Q2	11,792	11,885	11,939
Q1	10,388	9,882	9,097

13,521

24,430

13,539

10,890

GrowthYoY +15% Q2YTD Q3

28,173

	+16% Q2
15,738	Q2

+14%	Q1
12,435	Q1

		(+1,251%)
2,809		215
		2,441	2,405	3,652
			3,712		YoY	-22%
		2,300	Growth
	Impairment			2,897
	loss of
2,428	Goodwill
				-	19%
	(5,280)	2,395	2,580
		2,164			2,082
1,586						-	28%
	1,212	1,131
			815
		682
	396	(303)
		Q4

Q2

YTD

Q2

Q1

FY6/2019

FY6/2020

FY6/2021

FY6/2022

FY6/2023

Q2 YTD

OP Margin

FY6/2019	FY6/2020	(5,653)	FY6/2021	FY6/2022	FY6/2023
		w/o Impairment
		Loss
		(373)
18.1%		16.6%	13.5%	15.2%	10.3%