NEC Capital : Consolidated Financial Results for the nine months ended December 31, 2022 331KB (2023/01/30)

Consolidated Financial Results for the nine months ended December 31, 2022

Corporate name:

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Representative's name and title:

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January 30,2023

NEC Capital Solutions Limited

Tokyo Stock Exchange, Prime Market

8793

https://www.necap.co.jp/english/

Masaaki Suganuma, President

Seiichiro Kodama, Department Manager of IR & PR Department

TEL [phone]

(Amounts are rounded down to the nearest million yen)

1. Consolidated Financial Results for the nine months ended December 31, 2022 (From April 1, 2022 to December 31, 2022)

(Percentage shows increase/decrease from the same quarter of the previous fiscal year)

(1) Consolidated Business Results

				Revenues		Operating Income	Ordinary Income	Profit attributable to
					owners of parent
			Million Yen	%		Million Yen	%	Million Yen	%	Million Yen	%
	Nine months ended		196,232	4.5		11,057	13.3	11,669	13.6	5,666	1.5
	December 31, 2022
	Nine months ended		187,769	16.5		9,758	213.4	10,267	216.9	5,583	170.6
	December 31, 2021
	(Note) Comprehensive income:
	FY2023/3 3rd quarter : 10,576 Million Yen 18.5%
	FY2022/3 3rd quarter : 8,922 Million Yen	487.2%
			Net Income per		Net Income per
				Share: Basic		Share: Diluted
					Yen			Yen
	Nine months ended			263.20			－
	December 31, 2022
	Nine months ended			259.39			－
	December 31, 2021
	(2) Consolidated Financial Position
				Total Assets		Net Assets	Equity Ratio
				Million Yen		Million Yen		%
	As of December 31, 2022			1,008,356		131,222		10.9
	As of March 31, 2022			1,030,617		121,740		10.0
	(Reference) Shareholders' Equity:
	December 31, 2022	: 109,666 Million Yen
	March 31, 2022		: 103,214 Million Yen

NEC Capital Solutions Limited (8793) Consolidated Financial Results for the nine months ended December 31, 2022

2. Dividends Status

			Annual Dividends
	1st quarter-end	2nd quarter-end	3rd quarter-end	Fiscal year-end	Total
Fiscal year ended	Yen	Yen	Yen	Yen	Yen
－	32.00	－	42.00	74.00
March 31, 2022
Fiscal year ending	－	37.00
March 31, 2023
Fiscal year ending			－	73.00	110.00
March 31, 2023
(Forecasts)
(Note) Revisions to dividend forecasts for the current quarter: Yes

3. Forecasts for the fiscal year ending March 31, 2023 (April 1, 2022 to March 31, 2023)

(Percentage shows increase/decrease from previous term）

							Profit		Net Income
							attributable to
	Revenues		Operating Income	Ordinary Income	per Share:
		owners of
								Basic
							parent
	Million Yen	%	Million	%	Million Yen	%	Million Yen	%	Yen
			Yen
Fiscal year ending	260,000	4.0	13,000	24.4	13,500	18.2	7,500	8.1	348.37
March 31, 2023
(Note) Revisions to forecasts for the current quarter: Yes

4. Other

1. Changes in significant consolidated subsidiaries: No
2. Application of specific accounting procedures in the preparation of quarterly financial statements: No
3. Changes in accounting policies, accounting estimates or restatements
4. 1. Changes in accounting policies accompanying revision of accounting standards: Yes
   2. Any other changes, except those mentioned in 1) above: No
   3. Changes in accounting estimates: No
   4. Restatements: No
5. Number of shares issued (common stock)
6. 1. Outstanding shares at the end of the period (including treasury shares)

December	31, 2022	: 21,533,400 shares
March 31,	2022	: 21,533,400 shares

1. Number of treasury shares at the end of the period December 31, 2022 : 4,290 shares

March 31, 2022 : 4,156 shares

3) Average numbers of shares during the period

Nine months ended December 31, 2022: 21,528,669 shares

Nine months ended December 31, 2021: 21,526,134 shares

• This quarterly earnings report is exempt from the quarterly review by certified public accountants or audit corporations.
• Forecasts are based on the information available to management at the time they were made. Actual results may differ materially from forecasts for a number of reasons.

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NEC Capital Solutions Limited (8793) Consolidated Financial Results for the nine months ended December 31, 2022

Consolidated Financial Report

(1) Consolidated Balance Sheets

		(Unit: Million Yen)
Term	As of March 31, 2022	As of December 31, 2022
Items
（Assets）
I. Current assets
1. Cash on hand and in banks	37,711	28,611
2. Accounts receivable, installment sales	35,341	37,120
3. Leases receivables and investment in leases	529,610	491,662
4. Accounts receivable, leases	20,680	21,964
5. Accounts receivable, loans	217,254	231,203
6. Purchased receivables	8,010	12,383
7. Operational investment securities	21,183	22,274
8. Real estate for sale	25,222	20,115
9. Other	14,129	8,208
10. Allowance for doubtful accounts	(10,159)	(8,877)
Total current assets	898,983	864,667
II. Fixed assets
(1) Property and equipment, net
1. Leased assets	55,253	54,828
2. Other operating assets	5,502	6,187
3. Assets held for own use	460	383
Total property and equipment, net	61,216	61,399
(2) Intangible assets
1. Computer programs leased to customers	1,302	1,484
2. Goodwill	1,625	1,597
3. Software and other	2,940	4,782
Total intangible assets	5,868	7,865
(3) Investments and other assets
1. Investment securities	48,921	61,609
2. Other	17,437	14,851
3. Allowance for doubtful accounts	(1,809)	(2,036)
Total investments and other assets	64,549	74,424
Total fixed assets	131,633	143,688
Total assets	1,030,617	1,008,356

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NEC Capital Solutions Limited (8793) Consolidated Financial Results for the nine months ended December 31, 2022

			(Unit: Million Yen)
	Term	As of March 31, 2022	As of December 31, 2022
Items
（Liabilities）
I. Current liabilities
1.	Notes payable, trade	855	815
2. Accounts payable, trade	12,121	16,852
3.	Short-term borrowings	24,581	27,212
4.	Current portion of long-term debt	171,662	189,379
5.	Current portion of bonds	30,000	20,000
6.	Commercial paper	216,000	201,000
7.	Payable under securitized lease receivables	2,384	1,419
	due within a year
8. Accrued income taxes	267	46
9. Allowance for bonuses	948	902
10. Other	39,104	39,424
Total current liabilities	497,925	497,054
II. Long-term liabilities
1.	Bonds	80,150	80,150
2.	Long-term debt	313,665	284,704
3. Payable under securitized lease receivables	3,985	2,995
4.	Net defined benefit liability	2,076	2,020
5.	Other	11,073	10,209
Total long-term liabilities	410,951	380,080
Total liabilities	908,876	877,134
(Net assets)
I. Shareholders' equity
1.	Common stock	3,776	3,776
2.	Capital surplus	4,645	4,645
3.	Retained earnings	92,414	96,377
4.	Treasury stock, at cost	(9)	(9)
Total shareholders' equity	100,827	104,790
II. Accumulated other comprehensive income
1. Net unrealized gains on marketable securities	1,383	1,800
2.	Deferred losses on hedging derivatives	101	382
3.	Foreign currency translation adjustments	915	2,695
4.	Remeasurements of defined benefit plans	(13)	(3)
Total accumulated other comprehensive
2,386	4,875
income
III. Non-controlling interests	18,526	21,555
Total net assets	121,740	131,222
Total liabilities and net assets	1,030,617	1,008,356

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NEC Capital Solutions Limited (8793) Consolidated Financial Results for the nine months ended December 31, 2022

（2）Consolidated Statements of Income and Consolidated Statements of Comprehensive Income

(i) Consolidated Statements of Income

		(Unit: Million Yen)
Term	Nine months ended	Nine months ended
Items	December 31, 2021	December 31, 2022
I. Revenues	187,769	196,232
II. Costs	163,396	170,869
Gross profit	24,373	25,362
III. Selling, general, and administrative
expenses	14,615	14,304
Operating income	9,758	11,057
IV. Non-operating income
1. Interest income	31	33
2. Dividend income	61	73
3. Gain on investment in partnerships	490	981
4. Other	156	196
Subtotal	739	1,284
V. Non-operating expenses
1. Interest expense	16	24
2. Equity in losses of affiliates	179	93
3. Loss on investment in partnerships	16	13
4. Foreign exchange losses	0	433
5. Compensation for damage	-	85
6. Other	17	23
Subtotal	230	673
Ordinary income	10,267	11,669
Ⅵ. Extraordinary income
Gain on sale of shares of subsidiaries	-	24
Subtotal	-	24
Profit before income taxes	10,267	11,693
Income taxes, current	3,242	865
Income taxes, deferred	(686)	2,737
Total	2,556	3,603
Profit	7,711	8,090
Profit attributable to non-controlling interests	2,127	2,423
Profit attributable to owners of parent	5,583	5,666

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