Casio Computer : Consolidated Financial Results for the Nine Months Ended December 31, 2021 (Japan GAAP)

Consolidated Financial Results

for the Nine Months Ended December 31, 2021 (Japan GAAP)

Company Name: CASIO COMPUTER CO., LTD.	English Translation of Kessan Tanshin
(Summary for reference)
(URL https://www.casio.com/jp/)	February 2, 2022

Stock Exchange Listings: Tokyo

Code Number: 6952

Representative: Kazuhiro Kashio, President and CEO, Chairman of the Board

Inquiries: Shin Takano, Executive Managing Officer and CFO, Member of the Board Tel: [phone]

Filing of Securities Report (Shihanki Hokokusho) (scheduled): February 10, 2022

Start of distribution of dividends (scheduled): -

Preparation of supplementary explanatory materials: Yes

Conducting results briefing for the quarter: Yes

Note: The original disclosure in Japanese was released on February 2, 2022 at 15:00 (GMT+9).

(Monetary amounts are rounded to the nearest million yen.)

1. Consolidated Financial Results for the Nine Months (From April 1, 2021 to December 31, 2021)

(1) Operating Results										(Millions of yen)
		(Percentages indicate changes from the same period of the previous fiscal year.)
	Net sales		Operating profit		Ordinary profit	Profit attributable to
			owners of parent
Nine months ended			%		%				%		%
194,211		16.7	20,042	80.0			20,802	78.3	14,820	47.2
December 31, 2021
Nine months ended	166,436		(24.2)	11,136	(56.0)			11,666	(53.1)	10,069	(47.6)
December 31, 2020
(Note) Comprehensive income:	Nine months ended December 31, 2021:	15,999	million yen	78.7 %
	Nine months ended December 31, 2020:	8,953	million yen	(46.6)%
	Basic earnings	Diluted earnings
	per share (Yen)	per share (Yen)
Nine months ended	61.08			-
December 31, 2021
Nine months ended	41.51			-
December 31, 2020

(Note) Diluted earnings per share are not shown as there are no dilutive shares.

(2) Financial Position									(Millions of yen)
	Total assets			Net assets	Equity ratio
As of December 31, 2021	338,965				217,064			64.0		%
As of March 31, 2021	332,028				211,895			63.8
(Reference) Equity: As of December 31, 2021:	217,064 million yen
As of March 31, 2021:	211,895 million yen
2. Dividends
						Dividends per share (Yen)
			June 30		September 30		December 31		March 31	Total
Year ended March 31, 2021					-	22.50			-		22.50	45.00
Year ending March 31, 2022					-	22.50			-
Year ending March 31, 2022 (Forecast)										-	-
(Note) Revision of most recent dividends forecast: No

The dividends forecast for the fiscal year ending March 31, 2022 has yet to be determined.

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3. Consolidated Results Forecasts for Fiscal 2022 (From April 1, 2021 to March 31, 2022)

(Millions of yen) (Percentages indicate changes from the previous fiscal year.)

	Net sales		Operating profit		Ordinary profit	Profit attributable to	Basic earnings
			owners of parent	per share
			%		%			%		%	Yen
Fiscal 2022	265,000		16.5	26,500	72.4		24,500	50.1	17,000	41.5	70.06
(Note) Revision	of most recent consolidated results forecasts: No

Notes

1. Changes in significant subsidiaries (Changes in scope of consolidation): Yes Newly included: -
2. 
   Excluded: 1 (Casio Holdings, Inc.)
3. Application of the special accounting methods to the preparation of quarterly consolidated financial statements: No
4. Changes in accounting policies, changes in accounting estimates and retrospective restatements
5. 1. Changes in accounting policies due to revision of accounting standards: Yes
   2. Changes in accounting policies other than (a) above: No
   3. Changes in accounting estimates: No
   4. Retrospective restatements: No

(Note) Please refer to Changes in Accounting Policies on page 9.

1. Number of shares outstanding (common shares)
2. 1. Number of shares outstanding (including treasury shares):

As of December 31, 2021:	259,020,914 shares
As of March 31, 2021:	259,020,914 shares
(b) Number of treasury shares:	16,370,532 shares
As of December 31, 2021:
As of March 31, 2021:	16,416,422 shares

1. Average number of shares outstanding (cumulative for all quarters): Nine months ended December 31, 2021: 242,632,242 shares Nine months ended December 31, 2020: 242,587,107 shares

This report of consolidated financial results is outside the scope of quarterly review of certified public accountants and audit corporations.

Proper Use of Business Results Forecasts and Other Notes

(Caution Concerning Forward-looking Statements)

1. The forward-looking statements contained in these materials, including business results forecasts, are based on information currently available to the company and on certain assumptions deemed to be reasonable, and are not intended to be construed as assurance that they will be accomplished in the future. Actual business results may differ substantially due to a number of factors. Please refer to Discussion of Forward-looking Statements, including Consolidated Results Forecasts on page 4 for the conditions that form the assumptions for business results and cautions concerning the use of business results forecasts.
2. The supplementary explanatory materials for the financial results are published on the company's official website on February 2, 2022.

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	ATTACHED MATERIALS
1. Qualitative Information for the First Three Quarters of the Current Fiscal Year
(1)	Discussion of Operating Results	4
(2)	Discussion of Financial Position	4
(3)	Discussion of Forward-looking Statements, including Consolidated Results Forecasts	4

2. Consolidated Financial Statements and Notes

(1)	Consolidated Balance Sheets	5
(2)	Consolidated Statements of Income and Consolidated Statements of Comprehensive Income	7
	Consolidated Statements of Income	7
	Consolidated Statements of Comprehensive Income	8
(3)	Notes to Consolidated Financial Statements	9
	Notes on Premise of Going Concern	9
	Notes on Significant Changes in Shareholders' Equity	9
	Changes in Accounting Policies	9
	Segment Information	10

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1. Qualitative Information for the First Three Quarters of the Current Fiscal Year

1. Discussion of Operating Results

During the third quarter of the current fiscal year, the Japanese and overseas economies continued to face an uncertain outlook. Although economic and social activities gradually resumed along with progress on the rollout of COVID-19 vaccines, new waves of infection caused by new COVID-19 variants spread in Europe, the U.S., China and other countries.

In this situation, consolidated net sales for the first three quarters of the fiscal year amounted to ¥194.2 billion. By segment, sales were ¥119.9 billion in the Timepiece segment, ¥60.5 billion in the Consumer segment, ¥9.6 billion in the System Equipment segment, and ¥4.1 billion in the Others segment.

In the timepiece business, production continued to be impacted by operational restrictions at component manufacturers in Southeast Asia, as seen in the second quarter. Sales still increased year-on-year, however, driven by a recovery trend in demand. Among G-SHOCK watches, the 2100 series was popular around the world, and sales of new products with higher price points such as the GWG-2000 and MTG-B2000XMG remained strong.

In the education business, school closures and at-home study continued, mainly in Southeast Asia and Central and South America, but sales of both calculators and electronic dictionaries increased on the demand captured from the partial resumption of face-to-face classes in India and the Near and Middle East. In the electronic musical instrument business, sales increased as Slim & Smart models in particular continued to sell well.

Sales in the system equipment business decreased with the postponement of business negotiations due to the impact of COVID-19 in Japan, which is the main market.

Casio posted an operating profit of ¥20.0 billion, allowing for a ¥7.5 billion loss in adjustment. The Timepiece segment posted ¥24.3 billion in operating profit, the Consumer segment posted ¥4.9 billion in operating profit, the System Equipment segment recorded a ¥1.8 billion operating loss, and the Others segment recorded ¥0.2 billion in operating profit.

Casio posted ¥20.8 billion in ordinary profit and ¥14.8 billion in profit attributable to owners of parent. Earnings per share (EPS) were ¥61.08.

(2) Discussion of Financial Position

Total assets on a consolidated basis at the end of the first three quarters of the current fiscal year stood at ¥338.9 billion, up ¥6.9 billion compared to the end of the previous fiscal year, mainly owing to an increase in inventory assets. Net assets increased ¥5.1 billion to ¥217.0 billion compared to the end of the previous fiscal year. As a result, the equity ratio was 64.0%.

Casio will continue to pursue effective management of its business assets, aiming to build a stable and strong financial structure.

(3) Discussion of Forward-looking Statements, including Consolidated Results Forecasts

At present, there are no changes to the previous consolidated financial results forecasts for the fiscal year ending March 31, 2022 published on May 13, 2021.

Casio will strive to boost its earning capacity and strengthen its management and financial structure by taking a long-term perspective, while maximizing the effects of the group-wide structural reform implemented so far.

Notes concerning results forecasts

1. Exchange rates are estimated at US$ 1 = ¥108 and Euro 1 = ¥126.
2. The forward-looking statements including business results forecasts are based on information currently available to the company and on certain assumptions deemed to be reasonable. Actual business results may differ substantially due to a number of factors. Key factors affecting actual business results may include, but are not limited to, the economic circumstances surrounding the company's business, fluctuations in the exchange rates of major currencies including the yen-dollar rate, and significant changes in product prices.

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2. Consolidated Financial Statements and Notes

1. Consolidated Balance Sheets

			(Millions of yen)
		As of	As of
		March 31, 2021	December 31, 2021
Assets
Current assets
Cash and deposits	94,976	100,765
Notes and accounts receivable - trade	29,873	32,682
Securities	45,499	36,000
Finished goods	35,999	40,847
Work in process	5,331	6,253
Raw materials and supplies	8,071	9,781
Other	5,112	6,008
Allowance for doubtful accounts	(598)	(811)
Total current assets	224,263	231,525
Non-current assets
Property, plant and equipment
Land	33,002	33,015
Other, net	24,048	23,181
Total property, plant and equipment	57,050	56,196
Intangible assets	8,663	9,793
Investments and other assets
Investment securities	19,661	18,621
Retirement benefit asset	15,179	15,998
Other	7,250	6,859
Allowance for doubtful accounts	(38)	(27)
Total investments and other assets	42,052	41,451
Total non-current assets	107,765	107,440
Total assets		332,028	338,965

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