Member of the Financial Accounting Standards Foundation
Disclaimer: This is a Japanese-English translation of the summary of financial statements of the Company produced for your convenience. Since no auditor audited this report, officially only the Japanese version is assumed to be the summary of financial statements of the Company. This summary does not constitute any guarantee and the Company will not compensate any losses and/or damage stemming from actions taken based on these statements. Should there be any discrepancy between the Japanese and English versions, the Japanese version is assumed to be correct.
July 12, 2022
Consolidated Financial Results for the Fiscal Year Ended May 31, 2022
Listed company: | INTER ACTION Corporation |
Listed stock exchange: Tokyo | |
Securities code: | 7725 |
URL: | https://www.inter-action.co.jp/en/ |
Representative: | Nobuo Kiji, CEO & President |
Contact: | Kaori Kawaguchi, Chief, Business Planning Team |
Telephone number: | +81-45-263-9220 |
Planned Date of General Shareholders' Meeting: August 24, 2022
Planned Commencement Date of Dividend Payments: August 25, 2022
Planned Filing Date of Securities Report: August 25, 2022
Preparation of explanatory materials for financial results: Yes
Holding of a briefing on financial results: Yes (For Institutional Investors, Analysts)
(Amounts of less than one million yen are truncated)
1. Consolidated Financial Results for the Fiscal Year Ended May 31, 2022 (June 1, 2021 to May 31, 2022)
(1) Consolidated operating results
Net sales | Operating income | Ordinary income | Profit attributable to | ||||||
owners of parent | |||||||||
For the fiscal year ended | Millions of yen | % | Millions of yen | % | Millions of yen | % | Millions of yen | % | |
May 31, 2022 | 6,017 | (9.2) | 1,130 | (35.5) | 1,196 | (31.6) | 761 | (34.3) | |
May 31, 2021 | 6,627 | (6.4) | 1,751 | 12.6 | 1,748 | 13.1 | 1,159 | 15.4 | |
(Note) Comprehensive income: the fiscal year ended May 31, 2022: ¥778 million / (34.3)% the fiscal year ended May 31, 2021: ¥1,185 million / 21.1%
Profit per share- | Profit to | Ordinary income | Operating | ||
Profit per share | shareholders' | income to net | |||
diluted | to assets | ||||
equity | sales | ||||
For the fiscal year ended | Yen | Yen | % | % | % |
May 31, 2022 | 69.58 | - | 8.3 | 10.4 | 18.8 |
May 31, 2021 | 105.61 | - | 13.7 | 16.2 | 26.4 |
(Reference) Equity method investment gain (loss): the fiscal year ended May 31, 2022: ¥(0 million) the fiscal year ended May 31, 2021: ¥(1 million)
(2) Consolidated financial position
Total assets | Net assets | Shareholders' equity ratio | Net assets per share | |
Millions of yen | Millions of yen | % | Yen | |
As of May 31, 2022 | 11,533 | 9,340 | 81.0 | 859.88 |
As of May 31, 2021 | 11,564 | 9,038 | 78.2 | 821.96 |
(Reference) Shareholders' equity: As of May 31, 2022: ¥9,340 million As of May 31, 2021: ¥9,038 million
(3) Consolidated cash flows
From Operating | From Investing | From Financing | Cash and Cash | |
Equivalents at End of | ||||
Activities | Activities | Activities | ||
Fiscal Year | ||||
For the fiscal year ended | Millions of yen | Millions of yen | Millions of yen | Millions of yen |
May 31, 2022 | 423 | (124) | (832) | 6,740 |
May 31, 2021 | 2,369 | (86) | 28 | 7,211 |
2. Dividends
Annual dividends | Ratio of Total | |||||||||
Total Amount | Dividend | Amount of | ||||||||
First | Second | Third | Fiscal | of Cash | Dividends to | |||||
Payout Ratio | ||||||||||
quarter- | quarter- | quarter- | year- | Total | Dividends | Shareholders' | ||||
(consolidated) | ||||||||||
end | end | end | end | (annual) | Equity | |||||
(consolidated) | ||||||||||
For the fiscal year ended | Yen | Yen | Yen | Yen | Yen | Millions of yen | % | % | ||
May 31, 2021 | - | 0.00 | - | 20.00 | 20.00 | 225 | 18.9 | 2.6 | ||
May 31, 2022 | - | 0.00 | - | 20.00 | 20.00 | 221 | 28.7 | 2.4 | ||
For the fiscal year ending | ||||||||||
May 31, 2023 | - | 0.00 | - | 25.00 | 25.00 | 18.6 | ||||
(Forecast) | ||||||||||
3. Forecast of Consolidated Financial Results for the Fiscal Year Ending May 31, 2023 (June 1, 2022 to May 31, 2023)
Net sales | Operating income | Ordinary income | Profit attributable to | Profit per | |||||
owners of parent | share | ||||||||
Millions of yen | % | Millions of yen | % | Millions of yen | % | Millions of yen | % | Yen | |
Full year | 7,623 | 26.7 | 2,200 | 94.7 | 2,224 | 85.9 | 1,459 | 91.8 | 134.36 |
(Note) The Company has implemented an ESOP and Directors' stock compensation plan both in the form of stock benefit trusts. Accordingly, profit per share is calculated based on the average number of shares during the fiscal year, excluding the number of treasury shares, which includes Inter Action stock held by the stock benefit ESOP trust accounts and Directors' compensation stock benefit trust accounts.
- Notes
- Change in significant subsidiaries during the period (changes in specified subsidiaries affecting the scope of
consolidation): None | ||
New: - (Company name: | ) Excluded: - (Company name: | ) |
- Changes in accounting policies and estimates, and retrospective restatements
- Changes in accounting policies in accordance with revision of accounting standards: Yes
- Changes in accounting policies other than item (i) above: None
- Changes in accounting estimates: None
- Retrospective restatements: None
(Note) For details, refer to "(5) Note regarding the consolidated financial statements (Changes in accounting policies)" under "3. Consolidated Financial Statements and Notes" (page 16) of the Attached Materials.
- Number of shares issued (common stock)
- Number of shares outstanding at end of period (including treasury shares)
As of May 31, 2022 | 11,510,200 shares |
As of May 31, 2021 | 11,510,200 shares |
(ii) Number of treasury shares at end of period
As of May 31, 2022 | 647,207 shares |
As of May 31, 2021 | 514,513 shares |
(iii) Average number of shares during period
Fiscal year ended May 31, 2022 | 10,939,261 shares |
Fiscal year ended May 31, 2021 | 10,976,608 shares |
(Note) The Company has implemented an ESOP and Directors' stock compensation plan, both in the form of stock benefit trusts. Accordingly, treasury shares, as stated, include Inter Action stock held by the stock benefit ESOP trust accounts and Directors' compensation stock benefit trust accounts.
(Reference) Outline of non-consolidated business results
Non-consolidated Financial Results for the Fiscal Year Ended May 31, 2022 (June 1, 2021 to May 31, 2022)
(1) Non-consolidated financial results | (% figures show year-on-year change) | |||||||||
Net sales | Operating income | Ordinary income | Profit | |||||||
For the fiscal year ended | Millions of yen | % | Millions of yen | % | Millions of yen | % | Millions of yen | % | ||
May 31, 2022 | 3,969 | (13.2) | 1,119 | (37.1) | 1,205 | (33.7) | 807 | (36.1) | ||
May 31, 2021 | 4,574 | (5.3) | 1,779 | 23.3 | 1,818 | 10.3 | 1,263 | 12.6 | ||
Profit per share | Profit per share-diluted | |||||||||
For the fiscal year ended | Yen | Yen | ||||||||
May 31, 2022 | 73.81 | - | ||||||||
May 31, 2021 | 115.08 | - | ||||||||
(2) Non-consolidated financial position | ||||||||||
Total assets | Net assets | Shareholders' equity ratio | Net assets per share | |||||||
Millions of yen | Millions of yen | % | Yen | |||||||
As of May 31, 2022 | 10,243 | 9,293 | 90.7 | 855.48 | ||||||
As of May 31, 2021 | 10,402 | 8,961 | 86.1 | 815.00 | ||||||
(Reference) Shareholders' equity: As of May 31, 2022: ¥9,293 million As of May 31, 2021: ¥8,961 million
- The consolidated financial results are not subject to auditing by a certified public accountant or an audit firm.
-
Proper use of earnings forecasts, and other special matters
The above forecasts of consolidated financial results are based on certain assumptions on economic situation, market trends, etc. deemed to be reasonable when the forecasts were made. Consequently, actual results may differ from the forecasts due to a variety of future factors. For details of the above forecasts, refer to "(4) Forecasts" under "1.
Overview of Operating Results" (page 6) of the Attached Materials.
[Attached Materials]
Index
1. Overview of Operating Results……………………………………………………………………………. 2
- Overview of operating results for the fiscal year under review ……………………………………….. 2
- Overview of financial position for the fiscal year under review ………………………………………. 5
(3) Overview of cash flows for the fiscal year under review ……………………………………………… | 6 |
(4) Forecasts ……………………………………………………………………………………………….. | 6 |
2. Basic Policy on the Selection of Accounting Standards ………………………………………………….. | 8 |
3. Consolidated Financial Statements and Notes ……………………………………………………………. | 9 |
(1) Consolidated balance sheets …………………………………………………………………………… | 9 |
(2) Consolidated statements of income and consolidated statements of comprehensive income ………… | 11 |
(Consolidated statements of income) ……………………………………………………………… | 11 |
(Consolidated statements of comprehensive income) ……………………………………………… | 12 |
(3) Consolidated statement of changes in shareholders' equity …………………………………………… | 13 |
(4) Consolidated statement of cash flows ………………………………………………………………… | 15 |
(5) Note regarding the consolidated financial statements ………………………………………………… | 16 |
(Notes on premise of going concern) ………………………………………………………………… | 16 |
(Changes in accounting policies) …………………………………………………………………….. | 16 |
(Additional information) ……………………………………………………………………………… | 16 |
(Segment information) ……………………………………………………………………………….. | 17 |
(Information per share) ………………………………………………………………………………. 19 | |
(Significant subsequent events) ……………………………………………………………………… | 19 |
4. Supplementary explanation of consolidated financial results for the fiscal year ended May 31, 2022 ..… | 20 |
(1) Status of production, orders and sales ………………………………………………………………… | 20 |
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1. Overview of Operating Results
- Overview of operating results for the fiscal year under review
- Operating results for the fiscal year under review
The Inter Action Group conducts business in three segments: Internet of things related works; environmental energy related works; and promotion business of Industry 4.0. The business environment in each segment is as described below.
In the Internet of things related works segment, we manufacture inspection illuminators and pupil lens modules used for quality inspections in the image sensor production process and sell them mainly to manufacturers of high-end image sensors.
Currently, in the image sensor market, there are a dozen or so manufacturers of image sensors, of which Japanese and Korean companies account for over 60% of the market share. Aside from these existing makers, there have recently been moves by Chinese manufacturers to enter the business. Judging from the trends of image sensor manufacturers, we anticipate that the image sensor market will continue to expand.
The market for image sensors tends to hinge on the manufacturing and selling situation of smartphones, as such devices currently account for about 60-70% of image sensor applications. Production and shipment of smartphones, in volume terms, are affected by the current stagnant demand for smartphones in some regions due to the Russia-Ukraine situation, combined with shortage of semiconductors and other parts and materials, a situation which has yet to improve. We anticipate that the market will recover with the easing of uncertainty arising from the social situation, and hence expect that stagnation in demand for smartphones will be temporary. Still, we will need to continue monitoring market developments in the period ahead.
The increasing number of image sensors (cameras) installed per smartphone and the growing popularity of smartphones equipped with multiple image sensors (cameras) in recent years means that image sensor manufacturers will probably need to continue increasing production capacity. Increasingly, smartphones are equipped with higher value-added image sensors (cameras), leading to increase in the percentage of high-end image sensor application.
In the short-term, demand for image sensors remains focused on conventional imaging devices that capture visible light in order to take photos and videos.
In the medium term, we anticipate the demand trend to shift from imaging to sensing needs, driving up demand for image sensors that can capture three-dimensional information needed for self-driving vehicles.
Specific devices envisaged are ToF (time-of-flight) sensors and LiDAR (light detection and ranging) sensors, which aim to capture three-dimensional information such as the distance between objects. Use of these sensors in smartphones is gaining momentum and a further increase in demand is anticipated with the development of various applications.
In the long term, we assume that usage will expand further along with such progresses as advancement of image sensor technology, development of the sensing area, and construction of 5G-related infrastructure, and anticipate that new demand will be generated, different from what we have seen in the past, resulting from industrial applications (machine-vision, surveillance cameras, drones, etc.), prevalence of IoT devices equipped with image sensors and other trends.
In the environmental energy related works segment, we manufacture and sell drying deodorizers used together with rotary presses (commercial printing presses) for large-volume printing and exhaust gas treatment systems for factories.
In the printing machinery industry, although new capital investment is diminishing due to the growing prevalence of information technologies, a certain number of rotary presses are replaced every year due to age- related degradation, and there is also demand for periodic maintenance. As there is minimal competition, the Inter Action Group is able to stably accommodate this demand at present. At present, customers' appetite for capital investment in new and large-scale projects is gradually beginning to recover in anticipation of a post- COVID-19 future.
In the promotion business of Industry 4.0 segment, we mainly manufacture precision vibration isolation systems for removing vibrations that are a hindrance in the production process for displays and sell the systems to display manufacturers. We also manufacture gear testing systems for investigating whether gears are of the shape designed and sell them to gear manufacturers. In addition, as new businesses for the Group, we are actively working on businesses related to FA (factory automation) image processing and laser processing equipment.
- 2 -
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Inter Action Corporation published this content on 12 July 2022 and is solely responsible for the information contained therein. Distributed by Public, unedited and unaltered, on 12 July 2022 07:23:08 UTC.