Notice: This document is an excerpt translation of the original Japanese document and is only for reference purposes. In the event of any discrepancy between this translated document and the original Japanese document, the latter shall prevail.
Consolidated Financial Results for the Year Ended March 31, 2022
(Based on Japanese GAAP)
Company name: | NAKABAYASHI CO.,LTD | ||
Stock exchange listings: | Tokyo | ||
Stock code: | 7987 | URL https://www.nakabayashi.co.jp/ | |
Representative | President and Representative Director | Hideaki Yumoto | |
Inquiries: | Managing Executive Officer and General | Kazunari Sakuta | |
Manager of Administration Division | |||
Scheduled date of ordinary general meeting of shareholders: | June 24, 2022 | ||
Scheduled date to file Securities Report: | June 24, 2022 | ||
Scheduled date to commence divined payments: | June 27, 2022 | ||
Preparation of supplementary material on financial results: | No | ||
Holding of financial results meeting: | No |
May 13, 2022
TEL 06-6943-5555
(Amounts less than one million yen are rounded down) | |||||||||
1. Consolidated financial results for the year ended March 31, 2022 (from April 1, 2021 to March 31, 2022) | |||||||||
(1)Consolidated Operating Results | Percentages indicate year-on-year changes | ||||||||
Net sales | Operating profit | Ordinary profit | Profit attributable to | ||||||
owners of parent | |||||||||
Millions of yen | % | Millions of yen | % | Millions of yen | % | Millions of yen | % | ||
Year ended March 31, 2022 | 63,118 | (0.8) | 1,818 | (28.7) | 2,336 | (22.7) | 1,018 | (34.4) | |
Year ended March 31, 2021 | 63,644 | (2.5) | 2,550 | 8.7 | 3,023 | 10.5 | 1,552 | (0.6) | |
(Note) Comprehensive income: | Year ended March 31, 2022: | ¥1,218million [(51.3%)] | |||||||
Year ended March 31, 2021: | ¥2,502million [(85.4%)] |
Diluted earnings per | Profit attributable | Ordinary profit/total | Operating profit/net | ||
Earnings per share | to owners of | ||||
share | assets | sales | |||
parent/equity | |||||
Yen | Yen | % | % | % | |
Year ended March 31, 2022 | 39.26 | - | 3.9 | 4.1 | 2.9 |
Year ended March 31, 2021 | 60.20 | - | 6.2 | 5.4 | 4.0 |
(Reference) Equity in earnings of affiliates | Year ended March 31, 2022 | -million yen | ||||||||||||||||
Year ended March 31, 2021 | -million yen | |||||||||||||||||
(2)Consolidated financial position | ||||||||||||||||||
Total assets | Net assets | Equity Ratio | Net assets per share | |||||||||||||||
Millions of yen | Millions of yen | % | Yen | |||||||||||||||
As of March 31, 2022 | 58,225 | 28,504 | 46.1 | 981.29 | ||||||||||||||
As of March 31, 2021 | 57,113 | 28,046 | 45.2 | 1,000.80 | ||||||||||||||
(Reference) Equity: | As of March 31, 2022 | ¥26,861million | ||||||||||||||||
As of March 31, 2021 | ¥25,821million | |||||||||||||||||
(3)Consolidated Cash flows | ||||||||||||||||||
Cash flows from | operating | Cash flows from | Cash flows from | Cash and cashequivalents | ||||||||||||||
activities | investing activities | financing activities | at end of period | |||||||||||||||
Millions of yen | Millions of yen | Millions of yen | Millions of yen | |||||||||||||||
Year ended March 31, 2022 | 2,226 | (283) | (299) | 8,076 | ||||||||||||||
Year ended March 31, 2021 | 2,407 | (518) | (2,269) | 6,426 | ||||||||||||||
2. Cash dividends | ||||||||||||||||||
Annual dividends per share | Total cash | Dividend payout | Ratio of dividends to | |||||||||||||||
net assets | ||||||||||||||||||
1st quarter-end | 2nd quarter-end | 3rd quarter-end | Fiscal year-end | Total | dividends (Total) | ratio (Consolidated) | (Consolidated) | |||||||||||
Yen | Yen | Yen | Yen | Yen | Millions of yen | % | % | |||||||||||
Year ended March 31, 2021 | - | 10.00 | - | 12.00 | 22.00 | 567 | 36.5 | 2.3 | ||||||||||
Year ended March 31, 2022 | - | 10.00 | - | 12.00 | 22.00 | 586 | 56.0 | 2.2 | ||||||||||
Year ending March 31, 2023 | - | 10.00 | - | 12.00 | 22.00 | 35.4 | ||||||||||||
(Forecast) | ||||||||||||||||||
3. Forecast of consolidated financial results for the year ending March 31, 2023 (from April 1, 2022 to March 31, 2023) Percentages indicate year-on-yearchanges
Net sales | Operating profit | Ordinary profit | Profit attributable to | Earnings per share | ||||||||
owners of parent | ||||||||||||
Millions of yen | % | Millions of yen | % | Millions of yen | % | Millions of yen | % | Yen | ||||
Six months ending | 29,000 | 1.2 | 400 | 34.5 | 600 | 2.3 | 250 | 119.2 | 9.13 | |||
September 30, 2022 | ||||||||||||
Full year | 65,000 | 3.0 | 2,550 | 40.2 | 3,000 | 28.4 | 1,700 | 66.9 | 62.10 | |||
4. Notes | ||||||||||||
(1) Changes in significant subsidiaries during the nine months ended March 31, 2022 | No | |||||||||||
(changes in specified subsidiaries resulting in the change in scope of consolidation): | ||||||||||||
(2) Changes in accounting policies, changes in accounting estimates, and restatement of prior period financial statements | ||||||||||||
Changes in accounting policies due to revisions to accounting standards and other regulations: | Yes | |||||||||||
Changes in accounting policies due to other reasons: | No | |||||||||||
Changes in accounting estimates: | No | |||||||||||
Restatement of prior period financial statements: | No |
(3) Number of issued shares (common shares)
Total number of issued shares at the end of the period (including treasury shares)
As of March 31, 2022 | 28,794,294 shares | As of March 31, 2021 | 28,794,294 shares | |
Number of treasury shares at the end of the period | ||||
As of March 31, 2022 | 1,420,245 shares | As of March 31, 2021 | 2,993,787 shares | |
Average number of shares during the period | ||||
Year ended March 31, 2022 | 25,944,995 shares | Year ended March 31, 2021 | 25,789,510 shares |
- This financial results report is not subject to the audit by a certificated public accountant or an auditing firm.
-
Explanation and other special notes concerning the appropriate use of business performance forecasts. (Cautionary Statement with Respect to Forward-Looking Statements)
The earnings forecasts and other forward-looking statements herein are based on information currently available to the Company and on certain assumptions deemed to be reasonable. Actual results, etc. may differ materially from the forecasts due to various factors. For notes on the assumptions underlying the earnings forecasts and the earnings forecasts, please refer to "1. Overview of Operating Results, (4) Future Outlook" on page 4.
○Accompanying Materials - Contents | ||
1.Overview of Operating Results. ................................................................................................................................................ | 2 | |
(1) | Overview of Operating Results for the Fiscal Year under Review...................................................................................... | 2 |
(2) | Overview of Financial Position for the Fiscal Year under Review...................................................................................... | 4 |
(3) | Overview of Cash Flows for the Fiscal Year under Review..…………….................. ..……………................................. | 4 |
(4) | Future Outlook.................................................................................................................................................................... | 4 |
2. Basic Concept Regarding Selection of Accounting Standards……………………………………………………………….. | 5 | |
3. Consolidated Financial Statements and Major Notes................................................................................................................ | 6 | |
(1) | Consolidated Balance Sheets............................................................................................................................................... | 6 |
(2) | Consolidated statements of income and consolidated statements of comprehensive income............................................. | 8 |
Consolidated Statements of Income................................................................................................................. | 8 | |
Consolidated statements of comprehensive income........................................................................................................... | 10 | |
(3) | Consolidated statements of changes in equity……………………………………………………………………………. 11 | |
(4) | Consolidated statements of cash flows................................................................................................................................ | 13 |
(5) | Notes to Consolidated Financial Statements....................................................................................................................... | 15 |
(Notes on the Going Concern Assumption)...................................................................................................................... | 15 | |
(Changes in Accounting Policies)..................................................................................................................................... | 15 | |
(Segment Information)...................................................................................................................................................... | 16 | |
(Per Share Information).............................................................................................................................. ...................... | 18 | |
(Significant Subsequent Events)………………………………………………………………………………………... 19 | ||
4. Others ………………………………………………………………………………………………………………………... | 20 |
-1-
1. Overview of Operating Results, etc.
(1) Overview of Operating Results for the Fiscal Year under Review
In the fiscal year under review, the Japanese economy saw a decline in the number of new infectious diseases and the resumption of socio-economic activities due to the cancellation of the declaration of an emergency, as a result of the prolonged vaccination of COVID-19. However, the outlook remains uncertain, including in the global economy, due to factors such as soaring crude oil prices, the situation in Russia and the Ukraine, and a shortage of semiconductors due to the stagnant supply chain.
In the environment surrounding our group, consumer spending and corporate activities have been stagnant for a prolonged period due to the impact of COVID-19.
The business environment remains challenging due to the consequent restraint on purchasing by individuals, cost reductions by companies, and rises in raw material prices and personnel costs.
Under these circumstances, we formulated our third medium-term management plan (April 1, 2021 to March 31, 2024), "add+ venture 70" (Adventure 70). As conventional business models and processes change dramatically depending on the New normal and DX, we have set 70 new targets to increase corporate value and are working to achieve the targets. To this end, we are working to optimize the allocation of management resources and create synergies among business segments and Group companies as a whole. As a concrete policy required in the era of post-corona, our Group aims to become a leading company in the "Life-related industry" (Note), an industry field that will play a central role in the future, and will advance initiatives to strengthen existing businesses and enter new businesses. Specifically, it refers to the following five fields (1) health and medical care (2) environment (including renewable energy) (3) life and welfare (4) agriculture (5) culture.
(NOTE)"Life-related industries" is a concept advocated by Professor Yoshinori Hiroi of Kyoto University
On July 1, 2021, Sunlemon Co., Ltd., which manufactures and sells stuffed toys in the mid-tohigh-priced range, was made a subsidiary. As a result of the Company's efforts to expand its new product categories that will lead to mental comfort and health by leveraging its planning and design capabilities, results were favorable, including the synergy effect with Nakabayashi. In the future, we will further strengthen the (3) lifestyle and welfare fields of the life-related industry.
In addition, on April 4, 2022, we shifted to the "prime market" in the new market segment of the Tokyo Stock Exchange. The status of compliance with the listing maintenance standards of the prime market as of our transition record date does not satisfy the standards for the average daily trading value. However, we believe that moving to the prime market is essential to enhancing our business value, achieving sustainable growth and enhancing corporate value over the medium to long term. Based on this belief, we will take measures to satisfy the listing maintenance standards with respect to the average daily trading value.
As a result, Kokusai Chart Corporation which had been a consolidated subsidiary, became a wholly owned subsidiary through a share exchange with an effective date of March 1, 2022.
We will strive to increase corporate value by improving the efficiency of our production system, strengthening existing areas, developing new products, utilizing human resources, accelerating decision-making, and reducing listing maintenance costs.
Net sales remained unchanged from the previous fiscal year, but Operating profit and Ordinary profit declined due to a worsening cost of sales ratio caused by rising raw material prices and labor costs, as well as increased Selling, general and administrative expenses. Extraordinary income recorded 354 million yen, including Gain on sale of non-current assets, and Extraordinary losses recorded 639 million yen, including a loss related to the Anti-Monopoly Act.
As a result, net income attributable to owners of the parent was 1,018 million yen.
Our Group's operating results for the fiscal year under review are as follows. | ||
Net sales | 63,118 million yen | (Down 0.8% year on year) |
Operating profit | 1,818 million yen | (Down 28.7% year on year) |
Ordinary profit | 2,336 million yen | (Down 22.7% year on year) |
Net profit attributable to owners of parent | 1,018 million yen | (Down 34.4% year on year) |
-2-
Operating results by segment are as follows.
① Business Process Solutions Business
In the BPO (business process outsourcing) business, orders recovered due to the resumption of various trial operations and active sales promotion campaigns following the cancellation of municipal grant operations and the declaration of an emergency situation related to COVID-19. Sales of packaging materials such as paper containers and packaging grew due to a recovery in consumer sentiment. In the library solutions business, outsourcing services, such as counter operations from public libraries, and materials digitization operations remained firm, but sales in the library binding business declined. In addition, orders for corporate notebooks and forms declined due to trends associated with the adoption of DX by companies and other entities.
The performance of Hiroda Shiko Co., Ltd., which became a consolidated subsidiary through an M&A in May 2021, contributed.
Consequently, Net sales in this project amounted to 32,791 million yen (down 0.6% year-on-year), while Operating profit amounted to 889 million yen (up 33.7% year-on-year).
②Consumer Communications Business
Sales of airborne-reduction products and remote work-related products have run their course. Stationaries such as files and notebooks remained strong. Olympic-related products underperformed the sales plan originally planned and we disposed of inventories.
In addition to planning and sales of products such as the Meguri-ing business the Group has begun initiatives as a new tourism support measure, and the Group's operating business is gradually showing results as the Emergency Declaration has been lifted. However, Operating profit declined due in part to rising raw material prices, the impact of a worldwide shortage of semiconductors, and the weak yen in foreign exchange rates.
The performance of Sunlemon Co., Ltd., which became a consolidated subsidiary through an M&A in July 2021, contributed. Consequently, Net sales in this segment amounted to 21,247million yen (down 0.2% year-on-year), and Operating profit
amounted to 643 million yen (down 54.1% year-on-year).
③Office Appliances Business
Demand for office shredders continued to be sluggish due to companies restraining capital investment and the shift to DX in the Corona disaster. However, maintenance and inspection operations recovered due to a recovery in the rate of employee attendance at offices. Sales of large shredders and crushers grew due to replacement demand.
Layout changes aimed at improving the office environment and taking measures to reduce spills have been brisk, and low-party sales have been favorable.
Consequently, Net sales in this segment amounted to 7,488 million yen (down 1.0% year-on-year), and Operating profit amounted to 544 million yen (down 4.2% year-on-year).
④Energy Business
Sales and operating profit of wooden biomass power generation declined due to a decrease in unit selling prices with premiums. Solar power generation performed well.
As a result, net sales in this business amounted to 1.527 million yen (down 10.4% year on year) and operating profit amounted to 71 million yen (down 68.5% year on year).
⑤Others
The Vegetable Plant Business and the Garlic Farm Business, etc. posted net sales of 63 million yen(down 34.0% year on year) and an operating loss of 41 million yen (an operating loss of 36 million yen for the previous year).
-3-
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NAKABAYASHI Co. Ltd. published this content on 24 May 2022 and is solely responsible for the information contained therein. Distributed by Public, unedited and unaltered, on 24 May 2022 00:07:07 UTC.