ZENRIN CO., LTD. Financial Summary for the First Quarter of Fiscal 2024 [Japanese GAAP] [Consolidated]
Name of listed company | ZENRIN CO., LTD. | |
Securities code | 9474 | URL https://www.zenrin.co.jp/ |
Representative | [Title] | President and CEO |
Contact | [Title] | Executive Officer and Head of |
Corporate Management Division | ||
Scheduled date of submission of quarterly securities report: Scheduled date of commencement of dividend payments:
July 28, 2023 Stock exchange listings: Tokyo and Fukuoka
[Name] Zenshi Takayama | |
[Name] Yumiko Toshima | TEL +81-93-882-9050 |
July 31, 2023 | |
－ |
Preparation of supplementary explanatory materials on quarterly results: | Yes |
Holding of briefing session on quarterly results: | No |
(Amounts are rounded down to the nearest million yen)
1. Consolidated Results of Operations in the First Quarter of Fiscal 2024
ZENRIN's the first quarter of fiscal 2024 is the period from April 1, 2023 to June 30, 2023.
(1) Consolidated Business Performance [cumulative]
[%figures represent the increase (decrease) compared to the same period of the previous fiscal year)]
Net sales | Operating income | Ordinary income | Profit attributable to | ||||||
owners of parent | |||||||||
million yen | % | million yen | % | million yen | % | million yen | % | ||
The first quarter of fiscal 2024 | 12,793 | 4.4 | (1,344) | － | (1,378) | － | (989) | － | |
The first quarter of fiscal 2023 | 12,254 | 0.1 | (923) | － | (806) | － | (536) | － |
[Note] Comprehensive income | The first quarter of fiscal 2024: 48 million yen [ －%] | ||
The first quarter of fiscal 2023: (608) million yen [ －%] | |||
Earnings per share | Diluted earnings per | ||
share | |||
yen | yen | ||
The first quarter of fiscal 2024 | (18.55) | － | |
The first quarter of fiscal 2023 | (9.90) | － |
(2) Consolidated Financial Position
Total assets | Net assets | Ratio of equity to total assets | ||||
million yen | million yen | % | ||||
The first quarter of fiscal 2024 | 65,751 | 45,286 | 68.8 | |||
Fiscal 2023 | 70,130 | 45,962 | 65.4 | |||
[Reference] Equity | The first quarter of fiscal 2024: 45,219 million yen | Fiscal 2023: 45,871 million yen |
2. Dividends
Annual dividend | |||||
End of | End of | End of | Year-end | Total | |
the first quarter | the second quarter | the third quarter | |||
yen | yen | yen | yen | yen | |
Fiscal 2023 | － | 13.50 | － | 13.50 | 27.00 |
Fiscal 2024 | － | ||||
Fiscal 2024 [forecast] | 13.50 | － | 13.50 | 27.00 | |
[Note] Revision from most recently announced forecast for dividends: None
3. Forecast for Consolidated Results of Operations in Fiscal 2024 ZENRIN's fiscal 2024 is the period from April 1, 2023 to March 31, 2024.
[% figures for the fiscal year represent the increase (decrease) compared to the previous fiscal year]
Net sales | Operating income | Ordinary income | Profit attributable to | Earnings | ||||||
owners of parent | per share | |||||||||
million yen | % | million yen | % | million yen | % | million yen | % | yen | ||
Fiscal year | 62,000 | 5.2 | 2,500 | 39.0 | 2,700 | 28.3 | 1,800 | (35.0) | 33.72 | |
[Note] Revision from most recently announced forecast for results of operations: None
*Disclaimer: This document has been translated from the Japanese original for reference purposes only.
In the event of any discrepancy between this translated document and the Japanese original, the original shall prevail.
1. Qualitative Information on Quarterly Results
(1) Explanation of Business Performance
In the first quarter of fiscal 2024 (from April 1, 2023 to June 30, 2023), the Japanese economy showed signs of a moderate recovery as social and economic activities returned to normal including the downgrading of COVID-19 to a Class 5 infectious disease. Meanwhile, the future outlook continued to be uncertain, as a result of the rising cost of living caused by the soaring energy and raw-material prices and drastic fluctuations in the foreign exchange markets.
In such an environment, sales of data for in-car navigation systems in the automotive-related business increased thanks to the recovery in automobile production in conjunction with the alleviation of the semiconductor shortage. In addition, orders received from the national and local governments increased and there were more opportunities to provide residential map data, while orders received in the marketing solutions-related business also increased.
In terms of costs, there was an increase in cost of sales due to the increase in revenue, as well as an increase in expenses for developing map databases to improve the precision of location data. In addition, the effects of the rising cost of living and wage hikes from the first quarter of fiscal 2024 resulted in an increase in operating expenses compared to the same period of the previous fiscal year. Nevertheless, these increases in operating expenses have already been incorporated in the forecast for the consolidated results of operations for fiscal 2024. Moreover, it should be noted that while fixed costs such as the expenses for developing map databases are incurred throughout the year, expenses generally precede net sales due to drastic seasonal fluctuations in which net sales tend to be concentrated in the fourth quarter.
As a result, the ZENRIN Group in the first quarter of fiscal 2024 reported net sales of 12,793 million yen (increased 539 million yen, or up 4.4% compared to the same period of the previous fiscal year), operating loss of 1,344 million yen (downturn of 420 million yen compared to the same period of the previous fiscal year), ordinary loss of 1,378 million yen (downturn of 571 million yen compared to the same period of the previous fiscal year), and loss attributable to owners of parent of 989 million yen (downturn of 453 million yen compared to the same period of the previous fiscal year).
Information by business segment is omitted because the ZENRIN Group's reportable segment is a single segment.
(2) Explanation of Financial Position
Total assets at the end of the first quarter of fiscal 2024 amounted to 65,751 million yen (decreased 4,379 million yen, or down 6.2% compared to the end of the previous fiscal year). This was mainly attributable to the decrease in notes and accounts receivable - trade, and contract assets due to the effects of seasonal fluctuations.
Liabilities amounted to 20,464 million yen (decreased 3,703 million yen, or down 15.3% compared to the end of the previous fiscal year). This was mainly attributable to a decrease in accounts payable - trade due to the effects of seasonal fluctuations and decreases in short-term loans payable and income taxes payable, despite an increase in advances received.
Net assets amounted to 45,286 million yen (decreased 676 million yen, or down 1.5% compared to the end of the previous fiscal year). This was mainly due to the recording of loss attributable to owners of parent and dividends of surplus, despite an increase in valuation difference on available-for-sale securities from market valuation.
As a result, the ratio of equity to total assets at the end of the first quarter of fiscal 2024 was 68.8% (up 3.4 points compared to the end of the previous fiscal year).
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Explanation of Forecast for Consolidated Results of Operations and Other Forward- Looking Statements
The full-year forecast for the results of operations for fiscal 2024 remains unchanged from the forecast announced on April 28, 2023.
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2. Quarterly Consolidated Financial Statements
(1) Quarterly Consolidated Balance Sheet
[Unit: million yen] | ||
Fiscal 2023 | The first quarter of | |
fiscal 2024 | ||
As of March 31, 2023 | As of June 30, 2023 | |
Assets | ||
Current assets | ||
Cash and deposits | 13,971 | 11,819 |
Notes and accounts receivable - trade, and contract assets | 11,747 | 7,172 |
Electronically recorded monetary claims - operating | 118 | 146 |
Securities | 6 | 6 |
Merchandise and finished goods | 897 | 961 |
Work in process | 314 | 497 |
Raw materials and supplies | 97 | 96 |
Other | 1,404 | 1,847 |
Allowance for doubtful accounts | (3) | (2) |
Total current assets | 28,553 | 22,544 |
Non-current assets | ||
Property, plant and equipment | 13,026 | 12,870 |
Intangible assets | ||
Goodwill | 252 | 220 |
Software | 10,928 | 11,918 |
Other | 2,954 | 1,826 |
Total intangible assets | 14,135 | 13,965 |
Investments and other assets | ||
Investment securities | 8,592 | 10,331 |
Other | 5,924 | 6,141 |
Allowance for doubtful accounts | (101) | (101) |
Total investments and other assets | 14,414 | 16,370 |
Total non-current assets | 41,577 | 43,206 |
Total assets | 70,130 | 65,751 |
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[Unit: million yen] | ||
Fiscal 2023 | The first quarter of | |
fiscal 2024 | ||
As of March 31, 2023 | As of June 30, 2023 | |
Liabilities | ||
Current liabilities | ||
Accounts payable - trade | 3,030 | 1,859 |
Short-term borrowings | 4,476 | 1,263 |
Income taxes payable | 369 | 140 |
Advances received | 6,881 | 7,866 |
Provision for bonuses for directors (and other officers) | 64 | 17 |
Asset retirement obligations | 2 | 21 |
Other | 6,651 | 6,623 |
Total current liabilities | 21,476 | 17,792 |
Non-current liabilities | ||
Long-term borrowings | 1,576 | 1,474 |
Provision for retirement benefits for directors (and other officers) | 104 | 104 |
Provision for share awards for directors (and other officers) | 51 | 51 |
Retirement benefit liability | 257 | 262 |
Asset retirement obligations | 64 | 45 |
Other | 637 | 733 |
Total non-current liabilities | 2,691 | 2,672 |
Total liabilities | 24,167 | 20,464 |
Net assets | ||
Shareholders' equity | ||
Share capital | 6,557 | 6,557 |
Capital surplus | 12,451 | 12,451 |
Retained earnings | 27,389 | 25,675 |
Treasury shares | (4,805) | (4,806) |
Total shareholders' equity | 41,592 | 39,878 |
Accumulated other comprehensive income | ||
Valuation difference on available-for-sale securities | 3,567 | 4,651 |
Foreign currency translation adjustment | 129 | 127 |
Remeasurements of defined benefit plans | 582 | 562 |
Total accumulated other comprehensive income | 4,278 | 5,341 |
Non-controlling interests | 90 | 66 |
Total net assets | 45,962 | 45,286 |
Total liabilities and net assets | 70,130 | 65,751 |
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- Quarterly Consolidated Statement of Income and Quarterly Consolidated Statement of Comprehensive Income
Quarterly Consolidated Statement of Income [cumulative]
[Unit: million yen] | ||||
The first quarter of | The first quarter of | |||
fiscal 2023 | fiscal 2024 | |||
From: | April 1, 2022 | From: | April 1, 2023 | |
To: | June 30, 2022 | To: | June 30, 2023 | |
Net sales | 12,254 | 12,793 | ||
Cost of sales | 7,792 | 8,469 | ||
Gross profit | 4,462 | 4,323 | ||
Selling, general and administrative expenses | ||||
Personnel expenses | 3,144 | 3,198 | ||
Provision for bonuses for directors (and other officers) | 9 | 12 | ||
Retirement benefit expenses | 65 | 77 | ||
Provision of allowance for doubtful accounts | 0 | － | ||
Other | 2,165 | 2,380 | ||
Total selling, general and administrative expenses | 5,385 | 5,668 | ||
Operating loss | (923) | (1,344) | ||
Non-operating income | ||||
Interest income | 1 | 1 | ||
Dividend income | 46 | 49 | ||
Foreign exchange gains | 34 | － | ||
Other | 48 | 44 | ||
Total non-operating income | 130 | 95 | ||
Non-operating expenses | ||||
Interest expenses | 1 | 4 | ||
Foreign exchange losses | － | 94 | ||
Taxes and dues | － | 28 | ||
Nondeductible consumption tax | 4 | － | ||
Other | 7 | 2 | ||
Total non-operating expenses | 13 | 130 | ||
Ordinary loss | (806) | (1,378) | ||
Extraordinary income | ||||
Gain on sale of non-current assets | 874 | － | ||
Other | 10 | － | ||
Total extraordinary income | 885 | － | ||
Extraordinary losses | ||||
Loss on sale and retirement of non-current assets | 4 | 4 | ||
Loss on valuation of investment securities | 391 | 7 | ||
Loss on liquidation of subsidiaries | 200 | － | ||
Total extraordinary losses | 596 | 12 | ||
Loss before income taxes | (517) | (1,390) | ||
Income taxes - current | 397 | 95 | ||
Income taxes - deferred | (346) | (472) | ||
Total income taxes | 50 | (376) | ||
Loss | (568) | (1,013) | ||
Loss attributable to non-controlling interests | (32) | (23) | ||
Loss attributable to owners of parent | (536) | (989) |
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Zenrin Co. Ltd. published this content on 07 August 2023 and is solely responsible for the information contained therein. Distributed by Public, unedited and unaltered, on 07 August 2023 08:14:09 UTC.
