BUSINESS ENGINEERING CORPORATION Notice: This document is an excerpt translation of the original Japanese document and is for reference purposes only. In the event of any discrepancy between this translated document and the original Japanese document, the latter shall prevail.
Consolidated Financial Results
for the Fiscal Year Ended March 31, 2022 [Japanese GAAP]
May 12, 2022
Company name: Business Engineering Corporation
Stock exchange listing: Tokyo Stock Exchange, Prime Market
Code number: 4828
URL: https://www.b-en-g.co.jp/
Representative: Masakazu Haneda, President & CEO
Contact: Shigeaki Betsunou, Managing Director and Division General Manager, Corporate Administration & Planning Div.
Phone: +81-3-3510-1600
Scheduled date of the Annual General Meeting of Shareholders: June 24, 2022
Scheduled date of commencing dividend payments: June 27, 2022
Scheduled date of filing securities report: June 27, 2022
Availability of supplementary briefing materials on financial results: Available
Schedule of financial results briefing session: Scheduled (for securities analysts)
(Amounts of less than one million yen are rounded down.)
1. Consolidated Financial Results for the Fiscal Year Ended March 31, 2022 (April 1, 2021 to March 31, 2022)
(1) Consolidated Operating Results | (% indicates changes from the previous corresponding period.) | ||||||||
Net sales | Operating profit | Ordinary profit | Profit attributable to | ||||||
owners of parent | |||||||||
Fiscal year ended | Million yen | % | Million yen | % | Million yen | % | Million yen | % | |
March 31, 2022 | 17,760 | 0.3 | 2,412 | 26.8 | 2,443 | 28.9 | 1,643 | 27.5 | |
March 31, 2021 | 17,707 | - | 1,902 | - | 1,895 | - | 1,288 | - |
(Note) Comprehensive income: Fiscal year ended March 31, 2022: ¥1,489 million [4.3%] Fiscal year ended March 31, 2021: ¥1,427 million [-%]
Basic earnings | Diluted earnings | Rate of return | Ordinary profit to | Operating profit | |
per share | per share | on equity | total assets ratio | to net sales ratio | |
Fiscal year ended | Yen | Yen | % | % | % |
March 31, 2022 | 274.93 | - | 23.8 | 22.2 | 13.6 |
March 31, 2021 | 217.88 | - | 22.7 | 19.9 | 10.7 |
(Reference) Investment profit (loss) on equity method: Fiscal year ended March 31, 2022: ¥- million Fiscal year ended March 31, 2021: ¥- million
(Note) The "Accounting Standard for Revenue Recognition" (ASBJ Statement No. 29, March 31, 2020), etc. has been adopted from the beginning of the fiscal year ended March 31, 2022, and figures for the fiscal year ended March 31, 2021 indicate amounts after retrospective application of the said accounting standard, etc. Accordingly, year-on-year percentage changes for the fiscal year ended March 31, 2021 are not provided.
(2) Consolidated Financial Position
Total assets | Net assets | Equity ratio | Net assets per share | ||||||||||
Million yen | Million yen | % | Yen | ||||||||||
As of March 31, 2022 | 11,491 | 7,475 | 65.1 | 1,245.92 | |||||||||
As of March 31, 2021 | 10,481 | 6,312 | 60.2 | 1,062.12 | |||||||||
(Reference) Equity: As of March 31, 2022: ¥7,475 million | |||||||||||||
As of March 31, 2021: ¥6,312 million | |||||||||||||
(3) Status of Consolidated Cash Flows | |||||||||||||
Cash flows from | Cash flows from | Cash flows from | Cash and cash | ||||||||||
equivalents at end of | |||||||||||||
operating activities | investing activities | financing activities | |||||||||||
period | |||||||||||||
Fiscal year ended | Million yen | Million yen | Million yen | Million yen | |||||||||
March 31, 2022 | 2,287 | (713) | (701) | 4,945 | |||||||||
March 31, 2021 | 2,539 | (817) | 196 | 4,078 |
2. Dividends | ||||||||||
Annual dividends | Total | Ratio of | ||||||||
Payout ratio | dividends | |||||||||
1st | 2nd | 3rd | amount of | (Consoli- | to | |||||
Year-end | Total | dividends | net assets | |||||||
quarter-end | quarter-end | quarter-end | (Annual) | dated) | (Consoli- | |||||
dated) | ||||||||||
Yen | Yen | Yen | Yen | Yen | Million | % | % | |||
yen | ||||||||||
Fiscal year ended | ||||||||||
- | 22.00 | - | 48.00 | 70.00 | 418 | 32.1 | 7.3 | |||
March 31, 2021 | ||||||||||
Fiscal year ended | - | 35.00 | - | 49.00 | 84.00 | 503 | 30.6 | 7.3 | ||
March 31, 2022 | ||||||||||
Fiscal year ending | - | 21.00 | - | 21.00 | 42.00 | 28.5 | ||||
March 31, 2023 | ||||||||||
(Forecast) | ||||||||||
(Notes) 1. The total | amount of | dividends includes the following dividends of the | Company's | shares held by the | ||||||
Employee Stock Ownership Plan Trust. | ||||||||||
Fiscal year ended March 31, 2021: ¥2 million | ||||||||||
Fiscal year ended March 31, 2022: ¥0 million |
2. The dividend forecast for the fiscal year ending March 2023 is the amount after the 2-for-1 stock split scheduled to take effect on June 1, 2022. For the dividend forecast, please refer to "1. Overview of Operating Results, etc., (5) Basic Policy on Profit Distribution and Dividends for the Fiscal Year under Review and Next Fiscal Year," on page 5 of the attachments.
3. Consolidated Financial Results Forecast for the Fiscal Year Ending March 31, 2023 (April 1, 2022 to March 31, 2023)
(% represent changes from the previous fiscal year for full year, and on a year-on-year basis for quarterly results)
Net sales | Operating profit | Ordinary profit | Profit attributable | Basic earnings | |||||
to owners of parent | per share | ||||||||
Million yen | % | Million yen | % | Million yen | % | Million yen | % | Yen | |
First half | 8,900 | 0.6 | 1,230 | 6.5 | 1,230 | 6.0 | 830 | 5.0 | 138.33 |
Full year | 17,900 | 0.8 | 2,600 | 7.8 | 2,600 | 6.4 | 1,770 | 7.7 | 295.00 |
* Notes:
- Changes in significant subsidiaries during the fiscal year ended March 31, 2022: No (Changes in specified subsidiaries resulting in changes in scope of consolidation)
New subsidiaries: - | Excluded subsidiaries: - |
- Changes in accounting policies, changes in accounting estimates and retrospective restatement
- Changes in accounting policies due to the revision of accounting standards: Yes
- Changes in accounting policies other than 1) above: No
- Changes in accounting estimates: No
- Retrospective restatement: No
- Total number of issued shares (common shares)
- Total number of issued shares at the end of the period (including treasury shares):
March 31, 2022: 6,000,000 shares
March 31, 2021: 6,000,000 shares
-
Total number of treasury shares at the end of the period: March 31, 2022: 67 shares
March 31, 2021: 56,443 shares - Average number of shares during the period:
Fiscal year ended March 31, 2022: 5,978,530 shares
Fiscal year ended March 31, 2021: 5,915,963 shares
(Reference) Overview of Non-consolidated Financial Results
1. Non-consolidated Financial Results for the Fiscal Year Ended March 31, 2022 (April 1, 2021 to March 31, 2022)
(1) Non-consolidated Operating Results | (% indicates changes from the previous corresponding period.) | |||||||||
Net sales | Operating profit | Ordinary profit | Profit | |||||||
Fiscal year ended | Million yen | % | Million yen | % | Million yen | % | Million yen | % | ||
March 31, 2022 | 17,403 | 0.6 | 2,097 | 28.1 | 2,088 | 31.4 | 1,414 | 29.9 | ||
March 31, 2021 | 17,305 | - | 1,637 | - | 1,589 | - | 1,088 | - | ||
Basic earnings | Diluted earnings | |||||||||
per share | per share | |||||||||
Fiscal year ended | Yen | Yen | ||||||||
March 31, 2022 | 236.52 | - | ||||||||
March 31, 2021 | 184.06 | - |
(Note) The "Accounting Standard for Revenue Recognition" (ASBJ Statement No. 29, March 31, 2020), etc. has been adopted from the beginning of the fiscal year ended March 31, 2022, and figures for the fiscal year ended March 31, 2021 indicate amounts after retrospective application of the said accounting standard, etc. Accordingly, year-on-year percentage changes for the fiscal year ended March 31, 2021 are not provided.
(2) Non-consolidated Financial Position
Total assets | Net assets | Equity ratio | Net assets per share | |
Million yen | Million yen | % | Yen | |
As of March 31, 2022 | 11,324 | 6,620 | 58.5 | 1,103.39 |
As of March 31, 2021 | 10,289 | 5,682 | 55.2 | 956.10 |
(Reference) Equity: As of March 31, 2022: ¥6,620 million As of March 31, 2021: ¥5,682 million
2. Non-consolidated Financial Results Forecast for the Fiscal Year Ending March 31, 2023 (April 1, 2022 to March 31, 2023)
(Percentages represent changes from the previous fiscal year for full year, and on a year-on-year basis for quarterly results)
Net sales | Ordinary profit | Profit | Basic earnings | ||||
per share | |||||||
Million yen | % | Million yen | % | Million yen | % | Yen | |
First half | 8,700 | 0.1 | 1,040 | 6.1 | 700 | 4.7 | 116.67 |
Full year | 17,500 | 0.6 | 2,220 | 6.3 | 1,520 | 7.5 | 253.34 |
- These financial results are outside the scope of audit by certified public accountants or audit firms.
-
Explanation of the proper use of financial results forecast and other notes
The earnings forecasts and other forward-looking statements herein are based on the information currently available to the Company and certain assumptions that are deemed reasonable. They are not a pledge by the Company to achieve the forecasted results. Actual results, etc. may differ significantly from these forecasts due to a wide range of factors. For more details on the above forecasts, please refer to "1. Overview of Operating Results, etc., (4) Future Outlook" on page 5.
Table of Contents | ||
1. | Overview of Operating Results, etc. .......................................................................................................... 2 | |
(1) | Overview of Operating Results for the Fiscal Year under Review ........................................................ | 2 |
(2) | Overview of Financial Position for the Fiscal Year under Review ....................................................... | 3 |
(3) | Overview of Cash Flows for the Fiscal Year under Review .................................................................. | 4 |
(4) | Future Outlook ...................................................................................................................................... | 5 |
(5) | Basic Policy on Profit Distribution and Dividends for the Fiscal Year under Review and Next Fiscal Year . 5 | |
2. | Status of Corporate Group ......................................................................................................................... | 7 |
3. | Management Policies................................................................................................................................... | 8 |
(1) | Basic Policy on Management ................................................................................................................ | 8 |
(2) Target Business Indicators ..................................................................................................................... | 8 | |
(3) | Medium-to-Long-term Management Strategies and Issues to be Addressed ........................................ | 8 |
4. | Basic Views on Selecting Accounting Standards .......................................................................................... | 10 |
5. | Consolidated Financial Statements............................................................................................................... | 11 |
(1) | Consolidated Balance Sheet ..................................................................................................................... | 11 |
(2) | Consolidated Statements of Income and Comprehensive Income ........................................................... | 13 |
(3) | Consolidated Statement of Changes in Equity ......................................................................................... | 15 |
(4) | Consolidated Statement of Cash Flows.................................................................................................... | 17 |
1
1. Overview of Operating Results, etc.
The "Accounting Standard for Revenue Recognition" (ASBJ Statement No. 29, March 31, 2020), etc. has been adopted from the beginning of the fiscal year ended March 31, 2022. Accordingly, figures for the fiscal year ended March 31, 2021 are those after retrospective application of the said accounting standard, etc. Comparison and analysis have been made based on the figures for the previous corresponding period and the previous fiscal year after retrospective application.
(1) Overview of Operating Results for the Fiscal Year under Review
During the fiscal year ended March 31, 2022, the Japanese economy has picked up on the back of a trend of overall improvement in corporate earnings, despite some signs of weakness due to the impact of the COVID-19, global supply constraints, and others.
In the information service industry, investment in information technology was generally firm against the backdrop of customers' strong willingness to invest in digital transformation (DX).
In such a business environment, under the 6-year management plan "Management Vision 2026" that started from the fiscal year ended March 31, 2022, the Group has worked to resolve management issues such as the promotion of DX and global expansion in the manufacturing industry, in order to support its main customers facing changes in the business environment of the manufacturing industry with products and services that leverage the strengths of the Group.
Main initiatives in the fiscal year under review are as follows:
- The Company promoted its customers to improve the efficiency of operations, as well as accumulated knowledge and know-hows on various products, through providing complex solutions that link ERP systems and various systems and services.
- The Company worked to increase the added value of the solutions through efforts to enhance the solution portfolio and promote "Monozukuri Digitalization" toward a digitalized manufacturing industry by strengthening functions of in-house developed products and promoting collaboration with potent partners.
- The Company promoted initiatives that co-creates with customers, such as creating new services that combine the customers' products and production lines with our products.
- While restrictions on movement of people due to COVID-19 continued, the Company focused on providing cloud-based system services, which enables cooperation between customers' head offices in Japan and their overseas bases, besides conventional introduction of IT at overseas locations of customers. In addition, the head office in Tokyo and local subsidiaries and partners worked together to expand the integrated customer support system in order to strengthen sales activities and development system overseas.
- Amid prolonged COVID-19, the Company worked on maintaining systems that enable smooth business execution.
The financial results for the fiscal year under review are as follows.
Orders received were ¥17,912 million (up 1.9% year on year), and net sales were ¥17,760 million (up 0.3% year on year), mainly due to an increase in the Products Business despite a decrease in the Solutions Business. In terms of profit, despite the unprofitable project in the Solutions Business, the Products Business saw significant growth in license sales and the Systems Support Business became more profitable. As a result mainly of these factors, operating profit was ¥2,412 million (up 26.8% year on year), ordinary profit was ¥2,443 million (up 28.9% year on year), and profit attributable to owners of parent was ¥1,643 million (up 27.5% year on year), achieving record-highs in each profit indicator for six consecutive years.
Operating results by business segment are as follows.
- Solutions Business
The Solutions Business mainly engages in the consulting and system construction services, which are based on ERP package products developed by other companies.
- The Company continued to deepen relationships with customers, focused on activities for offering
2
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Business Engineering Corporation published this content on 21 June 2022 and is solely responsible for the information contained therein. Distributed by Public, unedited and unaltered, on 21 June 2022 07:33:07 UTC.
