Scroll : Presentation Material for Financial Results Q2 FY2023

October 27, 2023 at 04:29 am EDT

FY2023 Second Quarter Financial Results

(From April 1, 2023 to September 30, 2023)

Scroll Corporation

(TSE Prime Section : 8005)

Notice:

This document is an excerpt translation of the original Japanese document and is only for reference purposes. In the event of any discrepancy between this translated document and the original Japanese document, the latter shall prevail.

Contents

１．FY2023 Second Quarter Results

Ｐ.2

(FY2023 First Half)

２．Progress of the Medium-term Management Plan

"Direct Marketing Solution 2025"

３．Full-year Forecast for the FY2023

４．Appendix

・ESG Initiatives

・Company Profile

/ Business Segments Introduction

Ｐ.13

Ｐ.19

Ｐ.23

FY2023 Second Quarter Results

(FY2023 First Half)

Highlights (consolidated)

Net sales decreased 948 million yen YoY.
Operating profit decreased. However, ordinary profit increased due to a decrease in non-operating expenses.

				(Millions of yen)

H1 FY2022	H1 FY2023		Y o Y

Actual	Actual	Change		% Change

Net sales	40,965	40,016	-948	-2.3%

Operating profit	3,496	3,374	-122	-3.5%
(Operating profit / net sales)	(8.5%)	%

		(8.4 )
Ordinary profit	3,373	3,438	+65	+1.9%
(Ordinary profit / net sales)	(8.2%)	%

		(8.6 )
Profit attributable to	2,333	2,346	+13	+0.6%
owners of parent


Earnings per share	¥66.88	¥67.15	+¥0.27	－

* Yen(¥) denotes Japanese yen. The same notation is used on all pages below.

Changes in monthly net sales (consolidated)

Monthly sales from April to June and September were almost the same level as the previous year.
July and August were about 7% lower than the same months last year.

9,000										(Millions of yen)

				FY2020
8,000
FY2021
7,000				FY2022

		FY2023
6,000
		FY2019
5,000
4,000
Apr.	May	Jun.	Jul.	Aug.	Sep.	Oct.	Nov.	Dec.	Jan.	Feb.	Mar.

Figures for FY2019 and FY2020 on this page are figures before the application of the Accounting Standard for Revenue Recognition, etc. It is displayed for reference.

Analysis of Sales Increase/Decrease (consolidated)

While the Solutions Business grew, sales in the E-commerce Business declined, resulting in a decline in overall sales.

Solutions	Mail-order	E-commerce	HBT	Group	(Millions of yen)
Jurisdiction	Adjustments
Business	Business	Business	Business
Business

H1	H1
FY2022	FY2023

Analysis of Changes in Ordinary profit (consolidated)

Gross profit declined due to lower sales in the Mail-order and E-commerce Businesses, despite higher sales in the Solutions Business.
Cost ratio improved in the Solutions and Mail-order Businesses.
Gross profit increased due to changes in the sales composition (mainly growth in the Solutions Business).
Sales promotion expenses in the Mail-order Business increased due to higher catalog-related costs.

(Millions of yen)

Decrease in	Improvement	Change in sales	Increase in	Increase in	Others
gross profit due	of cost ratio	composition	variable costs	sales promotion
to lower sales		ratio		expenses in
		(Gross profit)		Mail-order
			Business


H1					H1
FY2022					FY2023

Performance by Segment

Net sales	Segment
profit

(Millions of yen)

Solutions	11,491	400	Increase in sales and profit

Business	Growth in various mail-order solution
(+13.8%)	(+74.2%)	services



Mail-order	20,566	3,336	Decrease in sales and profit

Business	Maintain profitability in a challenging
(-3.3%)	(-0.1%)	cost environment



E-commerce	8,214	-334	Decrease in sales and profit

Business	(-235in	Market environment deteriorated due to
(-19.2%)	changes in purchasing behavior

	H1 FY2022)


HBT Business	722	-41	Increase in sales, deficit shrinks

(-95 in	Travel demand on the road to recovery
	(+9.4%)
	H1 FY2022)

* ( ) Figures in parentheses are year-on-year changes.
* Sales for each segment include internal sales or transfers between segments.	Copyright© Scroll Corporation. All Rights Reserved.	7

Solutions Business Segment

Both sales and income increased due to growth in various mail-order solution

services.

・In logistics agency services, profitability improved due to business efficiencies at distribution centers. ・Settlement agency services and marketing support business grew and performed well.

(Millions of yen)

H1 FY2023	Net sales ：
Segment profit：

11,491

400

（YoY +13.8%）（YoY +74.2%）

Quarterly Sales		YoY for Q2
	+744

					(+15.0%)
		5,660	5,604	5,775 5,715
5,123 4,971
Q1	Q2	Q3	Q4	Q1	Q2
	FY2022		FY2023

Quarterly Segment Profit

YoY for Q2

		306			+86
				(+83.3%)
			189	211	189
126	103
Q1	Q2	Q3	Q4	Q1	Q2
	FY2022			FY2023

Mail-order Business Segment

Maintain profitability in a challenging cost environment.

・Improved product supply ratio and sales price control resulted in higher gross profit despite lower revenue.

・While the cost of paper for catalogs is rising, the company curbed the rise in sales promotion costs through efforts such as reducing the amount of paper used.

(Millions of yen)

H1 FY2023	Net sales ：
Segment profit：

20,566

3,336

（YoY -3.3%）（YoY -0.1%）

Quarterly Sales

YoY for Q2

Quarterly Segment Profit

					-776
					(-7.4%)
10,83610,42710,142		10,916
		9,650
			8,642
Q1	Q2	Q3	Q4	Q1	Q2
	FY2022			FY2023

					YoY for Q2
				1,997	-229
				(-14.6%)
1,772 1,568	1,449
				1,339

			573
Q1	Q2	Q3	Q4	Q1	Q2
	FY2022		FY2023

Attachments

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Disclaimer

Scroll Corporation published this content on 27 October 2023 and is solely responsible for the information contained therein. Distributed by Public, unedited and unaltered, on 27 October 2023 08:27:52 UTC.

	1st Jan change	Capi.
SCROLL CORPORATION	-4.69%	205M
JD.COM, INC.	+13.78%	50.3B
COUPANG, INC.	+42.06%	41.11B
ALLEGRO.EU S.A.	+2.63%	8.98B
WAYFAIR INC.	+3.06%	7.66B
ETSY, INC.	-26.01%	7.01B
ZOZO, INC.	+5.70%	6.52B
MONOTARO CO., LTD.	+19.03%	5.95B
FSN E-COMMERCE VENTURES LIMITED	-0.14%	5.95B
OCADO GROUP PLC	-53.11%	3.66B

1st Jan change

Capi.

SCROLL CORPORATION

-4.69%

205M

JD.COM, INC.

+13.78%

50.3B

COUPANG, INC.

+42.06%

41.11B

ALLEGRO.EU S.A.

+2.63%

8.98B

WAYFAIR INC.

+3.06%

7.66B

ETSY, INC.

-26.01%

7.01B

ZOZO, INC.

+5.70%

6.52B

MONOTARO CO., LTD.

+19.03%

5.95B

FSN E-COMMERCE VENTURES LIMITED

-0.14%

5.95B

OCADO GROUP PLC

-53.11%

3.66B

Market Closed - Japan Exchange Other stock markets 02:00:00 2024-05-02 am EDT			5-day change	1st Jan Change
915 ^JPY	-0.97%		-0.97%	-4.69%

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Scroll Corporation

Equities

8005

JP3913600007

Department Stores

Scroll : Presentation Material for Financial Results Q2 FY2023

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