Consolidated Financial Results for the Second Quarter of
the Fiscal Year Ending March 31, 2022 (JGAAP)
October 29, 2021 | ||
Company name: | Tsuzuki Denki Co., Ltd. | Listing Stock Exchange: Tokyo |
Stock code: | 8157 | URL: https://www.tsuzuki.co.jp/ |
Representative (title): | Isao Emori, Representative Director, President and CEO | |
Contact (title): | Toshihiro Hirai, Director and Managing Executive Officer |
Tel: +81-50-3684-7780 | |
Scheduled date for quarterly report submission: | November 5, 2021 |
Scheduled date for dividend payment: | November 30, 2021 |
Preparation of supplemental explanatory materials: | Yes |
Results briefing to be held: | Yes (for institutional investors and analysts) |
1. Consolidated financial results for the second quarter of the fiscal year ending March 31, 2022 (April 1, 2021, to September 30, 2021)
(1) Consolidated operating results
Millions of yen (rounded down), % figures are year-on-year change
Quarterly profit | ||||||||
Net sales | Operating income | Ordinary income | attributable to | |||||
owners of parent | ||||||||
Second quarter, | ||||||||
year ending | 53,100 | 0.2% | 798 | 260.9% | 855 | 270.9% | 492 | 229.0% |
March 31, 2022 | ||||||||
Second quarter, | ||||||||
year ended | 53,006 | (6.2%) | 221 | (79.0%) | 230 | (78.2%) | 149 | (77.3%) |
March 31, 2021 |
Note: Comprehensive income was 803 million yen (+56.6%) in the second quarter of year ending March 31, 2022; 512 million yen (-5.3%) in second quarter of year ended March 31, 2021.
Earnings per share | Diluted earnings per | |||
(yen) | share (yen) | |||
Second quarter, | ||||
year ending | 27.95 | - | ||
March 31, 2022 | ||||
Second quarter, | ||||
year ended | 8.57 | - | ||
March 31, 2021 | ||||
(2) Consolidated financial position | ||||
Total assets | Net assets | Shareholders' | Net assets per share | |
(millions of yen) | (millions of yen) | equity ratio | (yen) | |
Second quarter, | ||||
year ending | 73,837 | 31,540 | 42.4% | 1,771.45 |
March 31, 2022 | ||||
Year ended | 76,200 | 31,171 | 40.6% | 1,760.87 |
March 31, 2021 | ||||
Reference: Shareholders' equity at the second quarter of year ending March 31, 2022; 31,284 million yen; in year ended March 31, 2021; 30,934 million yen.
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2. Dividends
Dividends per share for the fiscal year (yen) | |||||||||||||
End of | End of | End of | Year- | ||||||||||
first | second | third | Total | ||||||||||
end | |||||||||||||
quarter | quarter | quarter | |||||||||||
Year ended | - | 15.00 | - | 31.00 | 46.00 | ||||||||
March 31, 2021 | |||||||||||||
Year ending | - | 23.00 | |||||||||||
March 31, 2022 | |||||||||||||
Year ending | |||||||||||||
March 31, 2022 | - | 24.00 | 47.00 | ||||||||||
(forecast) |
Note: Revisions to most recent dividend forecast: None
3. Forecast of consolidated financial results for the fiscal year ending March 31, 2022 (April 1, 2021, to March 31, 2022)
- figures are year-on-year change
Net sales | Operating income | Ordinary income | Profit attributable to | Earnings | |||||
owners of parent | per share | ||||||||
(millions of yen) | (millions of yen) | (millions of yen) | |||||||
(millions of yen) | (yen) | ||||||||
Full year | 122,000 | 1.7% | 4,000 | 24.9% | 4,050 | 20.5% | 2,700 | 15.1% | 153.08 |
Note: Revisions to most recent earnings forecast: None
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*Notes
-
Changes in significant subsidiaries (which affected scope of consolidation) during the quarter: None Newly added ___ companies (names)
No longer consolidated ___ companies (names) - Special accounting methods used in preparation of quarterly consolidated financial statements: Yes
Note: For details, please refer to Attachment page 15 "2. Consolidated financial statements and notes (3) Notes to quarterly consolidated financial statements (Application of special accounting methods in the preparation of quarterly consolidated financial statements)."
(3) Changes in accounting policies, changes in accounting estimates, and restatements
1. | Changes in accounting policies due to changes in accounting standards: | Yes |
2. | Changes in accounting policies not due to changes in accounting standards: | None |
3. | Changes in accounting estimates: | None |
4. | Restatements: | None |
(4) Number of shares outstanding (common stock)
- Number of shares outstanding at year end (including treasury stock)
- Number of shares at year end (treasury stock)
- Average number of shares over the period
Second quarter, | Year ended | ||
year ending | 20,177,894 | 20,177,894 | |
March 31, 2021 | |||
March 31, 2022 | |||
Second quarter, | Year ended | ||
year ending | 2,517,555 | 2,610,056 | |
March 31, 2021 | |||
March 31, 2022 | |||
Second quarter, | Second quarter, | ||
year ending | 17,616,474 | year ended | 17,458,214 |
March 31, 2022 | March 31, 2021 |
Note: The number of treasury shares includes those held in the Employee Stock Ownership Plan (ESOP) trust account (164,300 in the second quarter of year ending March 2022; 210,100 in year ended March 2021), Directors' Compensation Board Incentive Plan (BIP) trust account (346,034 in the second quarter of year ending March 2022; 380,905 in year ended March 2021); and Stock-grant ESOP trust account (474,568 in the second quarter of year ending March 2022; 486,750 in year ended March 2021).
*The financial information in this quarterly report is not subject to review by certified public accountants or auditing firms.
*Appropriate use of earnings forecast and other special notes.
(Note on forward-looking statements)
The earnings forecasts and other forward-looking statements contained in this document are based on information currently available to the Company, and certain assumptions it considers reasonable, but are not intended to be a promise that the Company will make. Actual results may vary materially from forecasts due to a variety of factors.
(How to obtain supplementary explanatory materials for financial results and results briefing materials.)
The Company plans to hold a results briefing for institutional investors and analysts on Wednesday, November
17, 2021. The briefing materials will be posted on the Company's website promptly after the briefing.
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Content of attachment | ||
1. Qualitative information on quarterly results.............................................................................................. | ||
Earnings .............................................................................................................................................................. | ||
(2) | Financial position ............................................................................................................................................... | 8 |
2. Consolidated financial statements and notes ........................................................................................... | 9 | |
(1) | Quarterly consolidated balance sheet ............................................................................................................ | 9 |
(2) | Quarterly consolidated statements of income and comprehensive income ........................................... | 11 |
(3) | Quarterly consolidated statement of cash flows ......................................................................................... | 13 |
(4) | Notes to quarterly consolidated financial statements................................................................................. | 15 |
(Notes on premise of going concern).............................................................................................................. | 15 | |
(Notes on significant changes in the amount of shareholders equity)....................................................... | 15 | |
(Application of special accounting methods in the preparation of quarterly consolidated financial | ||
statements) ......................................................................................................................................................... | 15 | |
(Changes in accounting policies) .................................................................................................................... | 15 | |
(Segment and other information)..................................................................................................................... | 17 |
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1. Qualitative information on quarterly results
(1) Earnings
In the first half of the fiscal year ending March 2022, economic conditions in Japan remained severe, despite some recovery from the impact of the COVID-19 pandemic. While there are prospects for an economic recovery as vaccine administration progresses, the outlook remains uncertain. Mounting downside risks to the economy posed by developments in the pandemic in Japan and overseas and the impact of supply chain disruptions must be monitored closely.
Our group belongs to the information and communications services industry. While we expect ICT demand to grow driven by factors such as changing work styles due to COVID-19 which accelerates digital transformation (DX), there is no room for optimism as some companies continue to constrain their ICT capex due to deteriorating earnings. The electronic device industry performed well as semiconductor demand grew further due to a recovery in the automobile industry and growing investment in data centers.
In these circumstances, our group is carrying out the initiatives outlined in our medium-term management plan ending in the year ending March 2023, titled Innovation 2023, as part of our aim to support the DX efforts of client companies and to be more competitive by becoming an innovation service provider. We see the COVID-19 pandemic as a turning point, and are continuing with initiatives aimed at sustainable growth and enhancing corporate value by reforming our business structure and strengthening our management base.
In the first half of the second year of our plan, the Group posted net sales of ¥53,100 million (up 0.2% year-on- year), operating income of ¥798 million (up 260.9% year-on-year), ordinary income of ¥855 million (up 270.9% year-on-year), and profit attributable to owners of parent of ¥492 million (up 229.0% year-on-year).
In the Information Network Solutions segment, following on from the first quarter, we succeeded in winning orders to expand networks, enhance security, and build contact centers, and made solid progress on projects for medical institutions, many of which were delayed the year earlier due to the pandemic. However, orders and net sales were below year-earlier levels as large projects that contributed in the previous year dropped out, and computer orders declined as remote working related demand ran its course. Meanwhile, profit grew significantly year-on-year on improved cost of sales for development and construction projects and equipment orders as well as on profit from growing service sales.
In the Electronic Devices segment, both orders and net sales significantly exceeded year-earlier levels. Following on from the first quarter, demand from the factory automation (FA) equipment and automotive industries increased. Demand was especially strong for semiconductors, as well as onboard automotive information devices and factory servers. Special Olympics-related demand also contributed. Profit also rose substantially year-on-year due to sales growth and cost cuts.
The following section discusses earnings by segment in the second quarter.
*Note regarding quarterly earnings for the Group
Many of the Group's customers have business years from April through March of the following year. Further, fulfilment obligations for many transactions are judged to be satisfied at a certain point, so the Group's sales and profit tend to be concentrated in September and March, the halfway and endpoints of the fiscal year.
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TSUZUKI DENKI Co. Ltd. published this content on 05 November 2021 and is solely responsible for the information contained therein. Distributed by Public, unedited and unaltered, on 05 November 2021 11:57:04 UTC.