TSUZUKI DENKI CO., LTD. Consolidated Financial Results for the First Quarter of
the Fiscal Year Ending March 31, 2022 (JGAAP)
July 30, 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: | August 6, 2021 |
Scheduled date for dividend payment: | - |
Preparation of supplemental explanatory materials: | No |
Results briefing to be held: | No |
1. Consolidated financial results for the first quarter of the fiscal year ending March 31, 2022 (April 1, 2021, to June 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 | ||||||||||
First quarter, | ||||||||||
year ending | 24,821 | 5.0% | (262) | - | (230) | - | (244) | - | ||
March 31, 2022 | ||||||||||
First quarter, | ||||||||||
year ended | 23,642 | 7.2% | (869) | - | (841) | - | (672) | - | ||
March 31, 2021 |
Note: Comprehensive income was (75) million yen (-%) in first quarter of year ending March 31, 2022; (421) million yen (-%) in first quarter of year ended March 31, 2021.
Earnings per share | Diluted earnings per | |||
(yen) | share (yen) | |||
First quarter, | ||||
year ending | (13.89) | - | ||
March 31, 2022 | ||||
First quarter, | ||||
year ended | (38.53) | - | ||
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) | |
First quarter, | ||||
year ending | 72,774 | 30,582 | 41.7% | 1,725.07 |
March 31, 2022 | ||||
Year ended | 76,200 | 31,171 | 40.6% | 1,760.87 |
March 31, 2021 | ||||
Reference: Shareholders' equity at first quarter, year ending March 31, 2022; 30,365 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 | - | ||||||||||||
March 31, 2022 | |||||||||||||
Year ending | |||||||||||||
March 31, 2022 | 23.00 | - | 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% | 153.43 |
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 13: "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)." - 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
First quarter, | Year ended | ||
year ending | 20,177,894 | 20,177,894 | |
March 31, 2021 | |||
March 31, 2022 | |||
First quarter, | Year ended | ||
year ending | 2,575,444 | 2,610,056 | |
March 31, 2021 | |||
March 31, 2022 | |||
First quarter, | First quarter, | ||
year ending | 17,582,961 | year ended | 17,439,953 |
March 31, 2022 | March 31, 2021 |
Note: The number of treasury shares includes those held in the Employee Stock Ownership Plan (ESOP) trust account (186,300 in first quarter, year ending March 2022; 210,100 in year ended March 2021), Directors' Compensation Board Incentive Plan (BIP) trust account (377,196 in first quarter, year ending March 2022; 380,905 in year ended March 2021); and Stock-grant ESOP trust account (479,500 in first quarter, 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 achieve. Actual results may vary materially from forecasts due to a variety of factors.
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Content of attachment | ||
1. Qualitative information on quarterly results.............................................................................................. | ||
Earnings .............................................................................................................................................................. | ||
(2) | Financial position ............................................................................................................................................... | 8 |
(3) | Consolidated earnings forecasts and other information concerning the outlook ..................................... | 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) | Notes to quarterly consolidated financial statements................................................................................. | 13 |
(Notes on premise of going concern).............................................................................................................. | 13 | |
(Notes on significant changes in the amount of shareholders equity.)...................................................... | 13 | |
(Application of special accounting methods in the preparation of quarterly consolidated financial | ||
statements) ......................................................................................................................................................... | 13 | |
(Changes in accounting policies) .................................................................................................................... | 13 | |
(Segment and other information)..................................................................................................................... | 15 |
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-
Qualitative information on quarterly results
(1) Earnings
In the first quarter 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, development in the pandemic have a significant impact on the Japanese and overseas economies, and the outlook remains uncertain.
Our group belongs to the information and communications services industry. While growing ICT demand is in prospect as factors such as changing work styles due to COVID-19 accelerate moves toward digital transformation (DX), some companies continue to constrain their ICT capex due to deteriorating earnings, so optimism is unwarranted. In the electronic device industry, conditions are strong as semiconductor demand is growing 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 initiatives of client companies and become more competitive by becoming an innovation service provider. We see the COVID-
- 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 quarter of the second year of our plan, the Group posted net sales of ¥24,821 million (up 5.0% year- on-year), operating loss of ¥262 million (operating loss of ¥869 million in year earlier), ordinary loss of ¥230 million (ordinary loss of ¥841 million in year earlier), and loss attributable to owners of parent of ¥244 million (loss of ¥672 million in year earlier).
In the Information Network Solutions segment, orders and net sales were below the year-earlier levels. Service sales increased, and we won projects to strengthen networks, enhance security, and build contact centers due to growing demand during the pandemic. However, large projects that contributed in the previous year dropped out, and computer orders declined as demand associated with remote working ran its course. On the profit front, we exceeded year-earlier levels as gross profit grew due to improved cost of sales for equipment orders and improved utilization rate for engineers as development and construction projects increased. Results also benefited from the consolidation of ComDesign Inc., which became a subsidiary on September 30, 2020.
In the Electronic Devices segment, both orders and net sales significantly exceeded year-earlier levels. In addition to growing demand for onboard automotive information devices and semiconductors, the business benefited from special Olympics-related demand. Profit also increased on the year earlier due to sales growth and cost cuts.
The following section discusses earnings by segment in the first quarter.
*Note regarding quarterly earnings for the Group
Many of the Group's customers have business years from April through March 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 19 August 2021 and is solely responsible for the information contained therein. Distributed by Public, unedited and unaltered, on 19 August 2021 08:13:02 UTC.
