Interim report
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Summary of Financial Results for the Third Quarter of the Fiscal Year Ending March 31, 2025[Consolidated] (From April 1, 2024 to December 31, 2024) [under IFRS] February 13, 2025 Company name: Relo Group, Inc. Listed Exchange: Tokyo Stock Exchange Security code.: 8876 URL: https://www.relo.jp/ Representative: Kenichi Nakamura, Representative Director, CEO Contact: Yasushi Kadota, Director, CFO TEL: 03-5312-8704 Scheduled Date to Start Distributing Dividends: － Supplemental documents for the financial results provided: Yes Results briefing for the period under review provided: Yes (for institutional investors) (Millions of yen, rounded down) (% figures represent change from the same period of the previous fiscal year) Revenue Operating Profit Profit before income taxes Profit attributable to owners of the parent Millions of yen % Millions of yen % Millions of yen % Millions of yen % Nine months ended December 31, 2024 104,819 11.0 21,714 20.7 43,992 137.1 37,279 195.0 Nine months ended December 31, 2023 94,429 6.0 17,985 3.6 18,557 (6.0) 12,638 (28.1) Basic earnings per share Diluted Net Income per Share Yen Yen Nine months ended December 31, 2024 246.16 235.70 Nine months ended December 31, 2023 82.69 79.30 Total Assets Total equity Equity attributable to owners of parent Equity ratio attributable to owners of parent Millions of yen Millions of yen Millions of yen % As of December 31, 2024 274,112 65,362 63,082 23.0 As of March 31, 2024 290,165 40,350 38,624 13.3 1. Consolidated Financial Results for the Year Ended December 31, 2024 (From April 1, 2024 to December 31, 2024) (1) Consolidated Operating Results (2) Consolidated Financial Positions
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Dividends per Share 1st quarter End 2nd quarter End 3rd quarter End Fiscal Year End Total Yen Yen Yen Yen Yen Fiscal year ended March 31, 2024 － 0.00 － 37.00 37.00 Fiscal year ended March 31, 2025 － 0.00 － Fiscal Year ended March 31, 2025(forecast) 42.00 42.00 (% figures represent change from the same period of the previous fiscal year) Revenue Operating Profit Profit before income taxes Profit attributable to owners of the parent Basic earnings per share Millions of yen % Millions of yen % Millions of yen % Millions of yen % Yen Year ending March 31, 2025 140,000 5.6 30,000 8.6 51,000 － 40,000 － 262.67 (1) Changes in significant subsidiaries during the Fiscal Year (Changes in specified subsidiaries associated with changes in the scope of consolidation) : Yes Newly consolidated : － Excluded : 1 company (Company name) affiliated companies that are accounted for by the equity method Nihon Housing Co., Ltd. 1. Changes in accounting policies required by IFRS : None 2. Changes in accounting policies other than (1) : None 3. Changes in accounting estimates : None 1. Number of shares issued at the end of period (including treasury stock) As of December 31, 2024 153,016,200shares As of March 31, 2024 153,016,200shares 2. Number of treasury stock at the end of period As of December 31, 2024 3,338,595shares As of March 31, 2024 174,632shares 3. Average number of shares during the period 3rd Quarter of FY2025/3 151,444,949shares 3rd Quarter of FY2024/3 152,852,391shares This translation is to be used solely as a reference and the consolidated financial statements in this release are unaudited. 2. Dividends (Note) 1. Correction from the dividend forecast, which published in the most recent : None 2. For the fiscal year ending March 31, 2025, we plan to pay an ordinary dividend of 38 yen as described in the outlook, plus a special dividend of 4 yen as a return corresponding to one-time earnings. 3. Projected Consolidated Results for the Fiscal Year Ending March 31, 2024 (From April 1, 2024 to March 31, 2025) (Note) 1. Correction from the consolidated forecastn which is published in the most recent : Yes 2. Please refer to the "Notice of Revision of Results Estimate" released today (February 13, 2025) for the revision of consolidated earnings forecasts. *Notes (2) Changes in Accounting Policies, Changes in Accounting Estimates and Restatements: (3) Number of Shares Issued and Outstanding (Common stock) * Review by certified public accountant or audit corporation of the attached quarterly consolidated financial statements : None * Statement regarding the proper use of financial forecasts and other specific remarks The forward-looking statements, such as forecasts, contained in this document are based on available information and certainassumptions that are regarded as reasonable. The Company does not guarantee the achievement of these statements. Actual results may differ significantly due to a range of factors.
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1. Overview of operating results, etc .............................................................................................................................................1 (1) Overview of results of operations ............................................................................................................................................ 1 (2) Management discussion of financial condition ........................................................................................................................2 (3) Management discussion of cash flows .....................................................................................................................................2 (4) Management discussion of forecast for consolidated results of operations and other forward-looking statements ................ 2 2. Consolidated Financial Statements ............................................................................................................................................3 (1) Consolidated Statements of Financial Position ........................................................................................................................3 (2) Consolidated Statements of Income and Consolidated Statement of Comprehensive Income ................................................5 (3) Consolidated Statements of Changes in Equity ........................................................................................................................9 (4) Consolidated Cash Flow Statements ........................................................................................................................................10 (5) Notes to Consolidated Financial Statements ............................................................................................................................11 (Notes on Assumptions for Going Concern) ..................................................................................................................................11 (Segment information) ...................................................................................................................................................................11 (Gain on sale of investemets accounted for using equity method) ................................................................................................13 Index
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Revenue 104,819 million yen (up 11.0% year on year) Operating profit 21,714 million yen (up 20.7% year on year) Profit before income taxes 43,992 million yen (up 137.1% year on year) Profit attributable to owners of the parent 37,279 million yen (up 195.0% year on year) 1. Overview of operating results, etc. (1) Overview of results of operations In an environment in which global competition is intensifying with active overseas expansion of Japanese companies, the Group has established the mission “In Japan, we act as a solutions provider in the field of corporate fringe benefit, providing client companies with support in their non-core operations. We support the global expansion of Japanese companies so that they can perform to their full potential.” and upholds the vision of “Creating an industry of comprehensive lifestyle support services that we provide globally.” As part of our efforts to realize this vision, we are working to reinforce domestic business toward capturing the ultimate top market share and take on the challenge of building foundation for reaching the global market in our medium-term management plan New Third Olympic Plan which will conclude in the fiscal year ending March 31, 2025. In the first nine months of the fiscal year under review, revenues and operating profit of the Relo Group, Inc. increased year on year, reflecting a steady gain in the stock base as both the number of units under management in the Leased Corporate Housing Management Business and the number of employee members in the Fringe Benefits Business increased.As stated in the Notice Concerning the Execution of a Subscription Agreement for a Tender Offer for Shares of an Equity-Method Subsidiary and the Expected Recording of Finance Income published on May 9, 2024, the Company recorded a gain on the sale of investments accounted for using the equity method of 18.7 billion yen. As a result of this and other factors, profit before income taxes and profit attributable to owners of the parent increased significantly. Results of operations In the first nine months of the fiscal year under review are as shown below. (i) Relocation Business In Relocation Business, we provide comprehensive mobility support to people working for Japanese companies in and outside Japan, mainly through Leased Corporate Housing Management Business, Residential Property Management Business and Global Relocation Assist Business. In Leased Corporate Housing Management Business, in addition to mainstay leased corporate housing management, we provide housing relocation assistance such as real estate search, house sitting, etc. In Residential Property Management Business, we provide comprehensive lease property management and intermediary services in response to various corporate housing needs. In Global Relocation Assist Business, we provide comprehensive services to assist employees of Japanese companies on overseas assignments in countries of destination in North America and other locations until they return to Japan. In the first nine months under review, the stock of units under management in the Leased Corporate Housing Management Business exceeded the level of the same period of the previous fiscal year's level, resulting in growth in management fee income, and the number of cases using housing relocation assistance such as real estate search also increased. In the Residential Property Management Business, the number of units under management increased year on year, and the stock base built up steadily. Additionally, certain properties were sold. Consequently, revenues and profit rose. As a result, the Relocation Business recorded revenue of 72,300 million yen (up 10.8% year on year) and operating profit of 12,313 million yen (up 13.8%). - 1 -
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(ii) Fringe Benefit Business In Fringe Benefit Business, we provide employee benefit-related services, including a support menu and extra privileges to employee members of client companies, in order to contribute to reducing companies’ operational burdens and costs. Moreover, we provide emergency home care services as part of comprehensive support to livelihood of employee members of client companies. In the first nine months under review, both revenue and profits increased, reflecting an increase in membership fee which reflected a rise in the number of new members in employee benefit-related services, as well as strong performance in emergency home care services. As a result, the Fringe Benefit Business recorded revenue of 20,116 million yen (up 9.7% year on year) and operating profit of 9,049 million yen (up 7.6%). (iii) Tourism Business In Tourism Business, we conduct a hotel operation business and vacation home time-share business, utilizing the membership base in Fringe Benefit Business and management know-how concerning company rest houses and small to midsize hotels and inns in rural areas. We also work on the renewal of hotels and inns which have difficulty in finding successors. In the first nine months under review, hotel occupancy rates were high, and the average room rate rose, resulting in increases in revenues and profit. As a result, Tourism Business recorded revenue of 11,580 million yen (up 14.8% year on year) and operating profit of 3,474 million yen (up 109.7% year on year). (iv) Other Business In this segment, we operate financial business, etc., leveraging the core business frameworks. As a result, Other Business recorded revenue of 821 million yen (up 11.7% year on year) and an operating loss of 155 million yen (compared to an operating loss of 186 million yen a year ago). (2) Management discussion of financial condition Total assets as of the end of this fiscal year under review came to 274,112 million yen, a decline of 16,052 million yen compared to the end of the previous fiscal year. Total liabilities amounted to 208,750 million yen, a decline of 41,064 million yen compared to the end of the previous fiscal year. Total equity came to 65,362 million yen, an increase of 25,012 million yen compared to the end of the previous fiscal year. (3) Management discussion of cash flows Cash and cash equivalents at the end of the first nine months of the fiscal year under review increased 13,722 million yen from the end of the previous fiscal year to 63,206 million yen. The status of each cash flow category for the first nine months is as follows. (Cash flows from operating activities) Net cash provided by operating activities amounted to 21,599 million yen (up 6,023 million yen year on year) in the first nine months of the fiscal year under review. The main factors were profit before income taxes of 43,992 million yen, depreciation and amortization of 12,991 million yen and a decrease in trade and other receivables of 13,225 million yen. (Cash flows from investing activities) Net cash provided by investing activities amounted to 31,407 million yen in the first nine months of the fiscal year under review, compared with net cash used in investing activities of 7,443 million yen in the same period of the previous fiscal year. The main factor was proceeds of 33,229 million yen from sales of investments accounted for by the equity method. (Cash flows from financing activities) Net cash used in financing activities amounted to 39,653 million yen (up 29,360 million yen year on year) in the first nine months of the fiscal year under review. The main factors were a net decrease in short-term borrowings of 22,028 million yen, repayments of long-term borrowings of 8,922 million yen and dividends paid of 5,652 million yen. (4) Management discussion of forecast for consolidated results of operations and other forward-looking statements The Company has revised its consolidated results estimate for the fiscal year ending March 31, 2025, based on the results in the first nine months and its projections for the remaining period of the fiscal year. For details, please refer to the Notice of Revision of Results Estimate announced on February 13, 2025. - 2 -
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(Millions of yen) As of March 31, 2024 As of December 31, 2024 Assets Current assets Cash and cash equivalents 49,484 63,206 Trade and other receivables 82,229 69,538 Inventories 6,980 7,341 Other financial assets 2,742 2,494 Other current assets 6,263 4,493 Total current assets 147,701 147,074 Non-current assets Property, plant and equipment 15,954 17,466 Right-of-use assets 30,321 27,024 Goodwill 16,458 16,802 Intangible assets 8,846 9,265 Investment property 20,376 19,516 Investments accounted for using the equity method 15,311 699 Other financial assets 23,233 23,429 Deferred tax assets 10,909 11,796 Other non-current assets 1,052 1,037 Total non-current assets 142,463 127,037 Total assets 290,165 274,112 2. Consolidated Financial Statements (1) Consolidated Statements of Financial Position - 3 -
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(Millions of yen) As of March 31, 2023 As of December 31, 2024 Liabilities and equity Liabilities Current liabilities Trade and other payables 61,382 54,732 Bonds and borrowings 37,282 12,396 Lease liabilities 9,782 8,313 Income taxes payable 4,099 2,598 Contract liabilities 8,707 6,790 Other financial liabilities 20,766 18,691 Provisions 368 － Other current liabilities 4,817 3,664 Total current liabilities 147,208 107,186 Non-current liabilities Bonds and borrowings 45,045 43,929 Lease liabilities 18,521 17,014 Contract Liabilities 18,256 18,700 Other financial liabilities 10,084 10,749 Provisions 8,621 9,010 Deferred tax liabilities 1,321 1,315 Other current liabilities 754 843 Total non-current liabilities 102,606 101,563 Total liabilities 249,815 208,750 Equity Share capital 2,667 2,667 Capital surplus 552 490 Retained earnings 25,314 56,945 Treasury shares (51) (5,551) Other components of equity 10,142 8,531 Equity attributable to owners of parent 38,624 63,082 Non-controlling interests 1,726 2,280 Total equity 40,350 65,362 Total liabilities and equity 290,165 274,112 - 4 -
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(Millions of yen) Nine months ended December 31, 2023 Nine months ended December 31, 2024 Revenue 94,429 104,819 Cost of sales 51,320 57,370 Gross profit 43,109 47,449 Selling, general and administrative expenses 26,402 28,974 Other income 1,653 3,594 Other expenses 375 354 Operating profit 17,985 21,714 Finance income 767 316 Finance costs 1,008 386 Share of profit of investments accounted for using equity method 813 3,624 Gain on sale of investemets accounted for using equity method － 18,724 Profit before income taxes 18,557 43,992 Income tax expense 5,583 6,269 Profit 12,974 37,723 Profit attributable to Owners of the parent 12,638 37,279 Non-controlling interests 335 444 Profit 12,974 37,723 Earnings per share Basic earnings per share (Yen) 82.69 246.16 Diluted earnings per share (Yen) 79.30 235.70 (2) Consolidated Statements of Income and Consolidated Statement of Comprehensive Income Consolidated Statements of Income For the nine months ended December 31, 2023 and 2024 - 5 -
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(Millions of yen) Three months ended December 31, 2023 Three months ended December 31, 2024 Revenue 31,240 34,745 Cost of sales 17,012 19,079 Gross profit 14,228 15,666 Selling, general and administrative expenses 9,070 9,875 Other income 455 511 Other expenses 153 252 Operating profit 5,460 6,050 Finance income 262 94 Finance costs 419 97 Share of profit of investments accounted for using equity method 210 46 Gain on sale of investemets accounted for using equity method － － Profit before income taxes 5,514 6,093 Income tax expense 1,656 1,704 Profit 3,857 4,389 Profit attributable to Owners of the parent 3,812 4,306 Non-controlling interests 45 82 Profit 3,857 4,389 Earnings per share Basic earnings per share (Yen) 24.94 28.75 Diluted earnings per share (Yen) 23.89 27.54 Consolidated Statements of Income For the three months ended December 31, 2023 and 2024 - 6 -
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(Millions of yen) Nine months ended December 31, 2023 Nine months ended December 31, 2024 Profit 12,974 37,723 Other comprehensive income Items that will not be reclassified to profit or loss Financial assets measured at fair value through other comprehensive income (1,021) (33) Share of other comprehensive income of investments accounted for using the equity method 17 (16) Total (1,004) (50) Items that may be reclassified subsequently to profit or loss Differences on translation of foreign operations 778 (1,443) Exchange differences on translation of foreign operations 93 (254) Total 871 (1,697) Other comprehensive income (132) (1,748) Comprehensive income 12,841 35,975 Comprehensive income attributable to: Owners of the parent 12,490 35,535 Non-controlling interests 351 439 Comprehensive income 12,841 35,975 Consolidated Statement of Comprehensive Income For the nine months ended December 31, 2023 and 2024 - 7 -
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(Millions of yen) Three months ended December 31, 2023 Three months ended December 31, 2024 Profit 3,857 4,389 Other comprehensive income Items that will not be reclassified to profit or loss Financial assets measured at fair value through other comprehensive income 127 148 Share of other comprehensive income of investments accounted for using the equity method 2 － Total 130 148 Items that may be reclassified subsequently to profit or loss Differences on translation of foreign operations (705) 1,505 Exchange differences on translation of foreign operations 1 － Total (704) 1,505 Other comprehensive income (573) 1,653 Comprehensive income 3,283 6,042 Comprehensive income attributable to: Owners of the parent 3,233 5,965 Non-controlling interests 50 77 Comprehensive income 3,283 6,042 Consolidated Statement of Comprehensive Income For the three months ended December 31, 2023 and 2024 - 8 -
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(Millions of yen) Equity attributable to owners of the parent Non- controlling interests Total equityShare capital Capital surplus Retained earnings Treasury shares Other components of equity Total Balance at April 1, 2023 2,667 271 58,141 (56) 7,592 68,615 1,203 69,819 Profit － － 12,638 － － 12,638 335 12,974 Other comprehensive income － － － － (148) (148) 16 (132) Total comprehensive income － － 12,638 － (148) 12,490 351 12,841 Disposal of treasury shares － 15 － 4 (19) 0 － 0 Cash dividend paid － － (5,044) － － (5,044) (60) (5,105) Share-based payment transactions － 199 － － 201 401 － 401 Changes in ownership interest in subsidiaries － － － － － － (3) (3) Other － － 21 － (21) (0) 0 0 Total transactions with owners of the parent － 215 (5,023) 4 159 (4,642) (62) (4,705) Balance at December 31, 2023 2,667 487 65,756 (51) 7,603 76,462 1,492 77,955 (Millions of yen) Equity attributable to owners of the parent Non- controlling interests Total equityShare capital Capital surplus Retained earnings Treasury shares Other components of equity Total Balance at April 1, 2024 2,667 552 25,314 (51) 10,142 38,624 1,726 40,350 Profit － － 37,279 － － 37,279 444 37,723 Other comprehensive income － － － － (1,743) (1,743) (4) (1,748) Total comprehensive income － － 37,279 － (1,743) 35,535 439 35,975 Purchase of treasury shares － － － (5,499) － (5,499) － (5,499) Cash dividend paid － － (5,655) － － (5,655) (70) (5,726) Share-based payment transactions － 162 － － 147 310 － 310 Changes in ownership interest in subsidiaries － (176) － － (0) (176) 176 － Other － (48) 7 － (14) (55) 9 (46) Total transactions with owners of the parent － (61) (5,648) (5,499) 132 (11,077) 115 (10,962) Balance at December 31, 2024 2,667 490 56,945 (5,551) 8,531 63,082 2,280 65,362 (3) Consolidated Statements of Changes in Equity (From April 1, 2023 to December 31, 2023) (From April 1, 2024 to December 31, 2024) - 9 -
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Nine months ended December 31, 2023 Nine months ended December 31, 2024 Cash flows from operating activities Profit before tax 18,557 43,992 Depreciation and amortization 12,304 12,991 Finance income and finance costs (201) 207 Share of loss (profit) of investments accounted for using equity method (813) (3,624) Gain on sale of investemets accounted for using equity method － (18,724) Loss (gain) on sale of fixed assets (1,163) (2,544) Decrease (increase) in inventories (610) (361) Decrease (increase) in trade and other receivables 23,792 13,225 Increase (decrease) in trade and other payables (17,424) (6,535) Decrease (inLease) liabilities (6,505) (6,636) Other (2,810) (5,083) Subtotal 25,123 26,907 Interest and dividends received 1,055 498 Interest paid (669) (326) Income taxes paid (9,933) (5,479) Cash flows from operating activities 15,576 21,599 Cash flows from investing activities Purchase of property, plant and equipment (1,501) (3,782) Proceeds from sale of property, plant and equipment 19 1,997 Purchase of intangible assets (1,255) (1,563) Purchase of investment property (5,149) (4,440) Proceeds from sale of investment property 5,403 6,214 Purchase of property, plant and equipment (437) (380) Proceeds from sale of property, plant and equipment 308 38 Payments for acquisition of subsidiaries (82) (56) Payments for loans receivable (4,661) (3) Proceeds from sale of investments accounted for using equity method － 33,229 Other (87) 154 Cash flows from investing activities (7,443) 31,407 Cash flows from financing activities Net increase (decrease) in short-term borrowings 3,980 (22,028) Proceeds from long-term borrowings 1,978 4,884 Repayments of long-term borrowings (8,984) (8,922) Purchase of treasury shares － (5,499) Proceeds from sale of treasury shares 0 － Dividends paid (5,042) (5,652) Dividends paid to non-controlling interests (60) (66) Other (2,165) (2,368) Cash flows from financing activities (10,293) (39,653) Effect of exchange rate changes on cash and cash equivalents 258 368 Net increase (decrease) in cash and cash equivalents (1,902) 13,722 Cash and cash equivalents at the beginning of the period 43,695 49,484 Cash and cash equivalents at the end of the period 41,793 63,206 (4) Consolidated Cash Flow Statements - 10 -
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(5) Notes to Consolidated Financial Statements (Notes on Assumptions for Going Concern) Not appliciate Relocation Business : Total outsourcing services by subleasing leased corporate housing, Property management business, Supports for overseas assignment, Supports for Return, Expatriate Regulations Consulting, etc. Fringe benefit Business : Benefit outsourcing services, Customer retention outsourcing services, Emergency home care sercices, etc. Tourism Business : Vacation home time-share business, Hotel operation business, etc. (Millions of yen) Business segment Relocation Business Fringe benefit Business Tourism Business Subtotal Revenue Revenue from external customers 65,274 18,335 10,083 93,693 Intersegment revenue 139 254 57 450 Total 65,413 18,590 10,140 94,144 Segment profit(loss) 10,819 8,413 1,656 20,889 Other (Note 1) Total Adjustments (Note 2) Consolidated Statement of Profit or Loss Revenue Revenue from external customers 736 94,429 － 94,429 Intersegment revenue 147 598 (598) － Total 883 95,027 (598) 94,429 Segment profit(loss) (186) 20,703 (2,717) 17,985 (Segment information) (1) Outline of reportable segments The Company’s reportable segments are those units of the Company for which separate financial information is available and for which the Board of Directors regularly conducts a review for the purpose of making decisions on the allocation of managerial resources to the segments and assessing the segments’ performance. The Group is engaged in outsourcing services related to employee benefits for companies, spanning both housing and leisure / lifestyle support areas, as its core business, as well as Property Management Business and Tourism Business, leveraging the operating base of the core business. An outline of each business segment is as described below. (2) Information of reportable segments Profit by reportable segment is based on operating profit. Intersegment sales and transfers are based on prevailing market prices. For the nine months ended December31, 2023 (From April 1, 2023 to December 31, 2023) (Note) 1. Other Business is a business segment that is not included in the reportable segments and includes financial business. 2. Intersegment revenue and the segment profit (loss) adjustment is the result of elimination of intersegment transactions. - 11 -
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(Millions of yen) Business segment Relocation Business Fringe benefit Business Tourism Business Subtotal Revenue Revenue from external customers 72,300 20,116 11,580 103,997 Intersegment revenue 174 282 60 517 Total 72,474 20,399 11,641 104,515 Segment profit(loss) 12,313 9,049 3,474 24,837 Other (Note 1) Total Adjustments (Note 2) Consolidated Statement of Profit or Loss Revenue Revenue from external customers 821 104,819 － 104,819 Intersegment revenue 160 677 (677) － Total 982 105,497 (677) 104,819 Segment profit(loss) (155) 24,682 (2,968) 21,714 Nine months ended December 31, 2023 Nine months ended December 31, 2024 Operating profit 17,985 21,714 Finance income 767 316 Finance costs 1,008 386 Share of profit of investments accounted for using equity method 813 3,624 Gain on sale of investemets accounted for using equity method － 18,724 Profit before income taxes 18,557 43,992 For the nine months ended December 31, 2024 (From April 1, 2024 to December 31, 2024) (Note) 1. Other Business is a business segment that is not included in the reportable segments and includes financial business. 2. Intersegment revenue and the segment profit (loss) adjustment is the result of elimination of intersegment transactions. Reconciliation from operating profit to profit before tax (Millions of yen) - 12 -
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(Gain on sale of investemets accounted for using equity method) In the first nine months of the fiscal year under review, the Company sold its shareholding in Nihon Housing Co., Ltd., an equity-method subsidiary, and excluded Nihon Housing from the scope of application of equity method accounting. The Company consequently recorded a gain on sale of investments accounted for using the equity method of 18,724 million yen in the consolidated statements of income. The proceeds from the sale of the shares are included in the proceeds from the sale of investments accounted for using the equity method in the consolidated cash flow statements. - 13 -