Consolidated Financial Results
for the Fiscal Year Ended June 30, 2021
[IFRS]
August 13, 2021
Company name: Nippon Koei Co., Ltd.
Stock exchange listing: Tokyo Stock Exchange
Code number: 1954
URL: https://www.n-koei.co.jp/english
Representative: Hiroaki Shinya, Representative Director and President
Contact: Yasushi Hirusaki, Director General, Corporate Management Headquarters
Phone: +81-3-3238-8040
Scheduled date of holding general shareholder's meeting: September 29, 2021
Scheduled date of commencing dividend payments: September 9, 2021
Scheduled date of filing securities report: September 29, 2021
Availability of supplementary briefing material on quarterly financial results: Yes
Schedule of quarterly financial results briefing session: Yes (for institutional investors and securities analysts)
(Amounts of less than one million yen are rounded down.) | |||||||||||||||||
1. Consolidated Financial Results for the Fiscal Year Ended June 30, 2021 (July 1, 2020 to June 30, 2021) | |||||||||||||||||
(1) Consolidated Operating Results | (% indicates changes from the previous fiscal year.) | ||||||||||||||||
Profit | |||||||||||||||||
Revenue | Operating profit | Profit before tax | Profit | attributable to | |||||||||||||
owners of parent | |||||||||||||||||
Fiscal year ended | Million yen | % | Million yen | % | Million yen | % | Million yen | % | Million yen | % | |||||||
June 30, 2021 | 117,859 | 8.7 | 7,128 | 35.9 | 7,176 | 42.7 | 4,518 | 39.2 | 4,531 | 46.2 | |||||||
June 30, 2020 | 108,441 | - | 5,245 | - | 5,029 | - | 3,246 | - | 3,099 | - | |||||||
Basic earnings | Diluted earnings | Return on equity | Ratio of profit | Ratio of operating | |||||||||||||
attributed to | before tax to total | ||||||||||||||||
per share | per share | profit to revenue | |||||||||||||||
owners of parent | assets | ||||||||||||||||
Fiscal year ended | Yen | Yen | % | % | % | ||||||||||||
June 30, 2021 | 300.00 | 300.00 | 6.7 | 4.7 | 6.0 | ||||||||||||
June 30, 2020 | 204.94 | 204.94 | 4.8 | 3.6 | 4.8 | ||||||||||||
(Reference) Share of profit of investments accounted (Equity method):Fiscal year ended June 30, 2021 | : ¥35 million | ||||||||||||||||
Fiscal year ended June 30, 2020 | : ¥144 million | ||||||||||||||||
(2) Consolidated Financial Position | |||||||||||||||||
Equity | Ratio of equity | Equity attributable to | |||||||||||||||
attributable to | |||||||||||||||||
Total assets | Total equity | attributable to | owners of parent per | ||||||||||||||
owners of parent to | |||||||||||||||||
owners of parent | share | ||||||||||||||||
total assets | |||||||||||||||||
Fiscal year ended | Million yen | Million yen | Million | yen | % | Yen | |||||||||||
June 30, 2021 | 156,137 | 72,294 | 70,725 | 45.3 | 4,699.82 | ||||||||||||
June 30, 2020 | 147,408 | 65,721 | 64,219 | 43.6 | 4,260.82 |
(3) Consolidated Cash Flows
Cash flows from | Cash flows from | Cash flows from | Cash and cash equivalents | |
operating activities | investing activities | financing activities | at end of period | |
Fiscal year ended | Million yen | Million yen | Million yen | Million yen |
June 30, 2021 | 12,073 | (2,750) | (7,928) | 17,838 |
June 30, 2020 | 4,365 | (7,129) | 4,529 | 15,472 |
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2. Dividends
Dividends per share | Total | Payout ratio | Dividend on | |||
dividends paid | equity ratio | |||||
1st | 2nd | 3rd | Year-end | Total | (consolidated) | |
quarter-end | quarter-end | quarter-end | (annual) | (consolidated) | ||
Fiscal year ended June 30, 2020 Fiscal year ended June 30, 2021
Fiscal year ending June 30, 2022 (Forecast)
Yen | Yen | Yen | Yen | Yen | Million yen | % | % |
- | - | - | 75.00 | 75.00 | 1,138 | 36.6 | 1.8 |
25.0 | 1.7 | ||||||
- | - | - | 75.00 | 75.00 | 1,128 | ||
- | - | - | 100.00 | 100.00 | 32.0 | ||
3. Consolidated Financial Results Forecast for the Fiscal Year Ending June 30, 2022 (July 1, 2021 to June 30, 2022) (% indicates changes from the previous fiscal year.)
Revenue | Operating Profit | Profit attributable to | Basic earnings | ||||||
owners of parent | per share | ||||||||
Million yen | % | Million yen | % | Million yen | % | Yen | |||
Full year | 131,000 | 11.1 | 7,700 | 8.0 | 4,700 | 3.7 | 312.32 |
(Note) Given the growing repercussions of the novel coronavirus (COVID-19), this forecast was developed on the information available to the Company as of the date of publication of this document. Since the forecast may change significantly depending on when the COVID-19 is contained and other variables, the Company will disclose revised forecasts as soon as possible if any revisions become necessary based on its performance outlook.
* Notes
-
Changes in significant subsidiaries during the period under review (changes in specified subsidiaries resulting in changes in scope of consolidation): None
New companies: None
Excluded companies: None - Changes in accounting policies and changes in accounting estimates
- Changes in accounting policies required by IFRS: None
- Changes in accounting policies other than 1) above: None
- Changes in accounting estimates: None
- Total number of issued shares (common stock)
- Total number of issued shares at the end of the period (including treasury stock)
Fiscal year ended June 30, 2021 | : | 15,048,568 shares |
Fiscal year ended June 30, 2020 | : | 15,933,058 shares |
2) Total number of treasury stock at the end of the period | ||
Fiscal year ended June 30, 2021 | : | 60 shares |
Fiscal year ended June 30, 2020 | : | 861,023 shares |
3) Average number of shares during the period | ||
Fiscal year ended June 30, 2021 | : | 15,106,105 shares |
Fiscal year ended June 30, 2020 | : | 15,124,770 shares |
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(Reference) Nonconsolidated Financial Results | ||||||||||
1. Nonconsolidated Financial Results for the Fiscal Year Ended June 30, 2021 (July 1, 2020 to June 30, 2021) | ||||||||||
(1) Nonconsolidated Operating Results | (% indicates changes from the previous fiscal year.) | |||||||||
Revenue | Operating income | Ordinary income | Net income | |||||||
Fiscal year ended | Million yen | % | Million yen | % | Million yen | % | Million yen | % | ||
June 30, 2021 | 73,970 | 6.5 | 4,185 | 159.5 | 5,750 | 83.3 | 2,480 | (1.8) | ||
June 30, 2020 | 69,431 | 2.1 | 1,613 | (40.5) | 3,136 | (6.7) | 2,526 | 8.5 | ||
Net income | Diluted net income | |||||||||
per share | per share | |||||||||
Fiscal year ended | Yen | Yen | ||||||||
June 30, 2021 | 164.23 | - | ||||||||
June 30, 2020 | 167.07 | - | ||||||||
(2) Nonconsolidated Financial Position | ||||||||||
Total assets | Net assets | Equity ratio | Net assets per share | |||||||
Fiscal year ended | Million yen | Million yen | % | Yen | ||||||
June 30, 2021 | 110,295 | 55,043 | 49.9 | 3,657.72 | ||||||
June 30, 2020 | 106,240 | 53,444 | 50.3 | 3,545.95 |
(Reference) Equity: Fiscal year ended June 30, 2021: ¥55,043 million Fiscal year ended June 30, 2020: ¥53,444 million
2. Nonconsolidated Financial Results Forecast for the Fiscal Year Ending June 30, 2022 (July 1, 2021 to June 30, 2022) (% indicates changes from the previous fiscal year.)
Revenue | Ordinary income | Net income | Net income | ||||||
per share | |||||||||
Million yen | % | Million yen | % | Million yen | % | Yen | |||
Full year | 82,000 | 10.9 | 4,800 | (16.5) | 3,500 | 41.1 | 232.58 |
(Note) Given the growing repercussions of the novel coronavirus (COVID-19), this forecast was developed on the information available to the Company as of the date of publication of this document. Since the forecast may change significantly depending on when the COVID-19 is contained and other variables, the Company will disclose revised forecasts as soon as possible if any revisions become necessary based on its performance outlook.
- These consolidated financial results are not subject to audit procedures by certified public accountants or audit firm.
- Explanation of the proper use of financial results forecast and other notes:
- The earnings forecasts and other forward-looking statements disclosed herein are based on information available to the Company as of the date of publication of this document and certain assumptions deemed reasonable. Actual results, etc. may differ significantly due to a wide range of factors.
- The Company is scheduled to hold a financial results briefing session for investors and analysts on September 8, 2021. The financial briefing materials to be distributed at this briefing session will be subsequently posted on the Company's website.
- The Group has applied International Financial Reporting Standards (IFRS) from the year-end of fiscal year ended June 30, 2021. In addition, financial figures for the previous fiscal year are also disclosed in accordance with IFRS.
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Table of Contents of Attachment | ||
1. Overview of Operating Results, etc........................................................................................................................ | 2 | |
(1) | Overview of Operating Results for the Current Fiscal Year ........................................................................... | 2 |
(2) | Overview of Financial Position for the Current Fiscal Year............................................................................. | 4 |
(3) | Overview of Cash Flows for the Current Fiscal Year ....................................................................................... | 4 |
(4) | Future Outlook.................................................................................................................................................. | 5 |
2. Basic Policy Regarding Selection of Accounting Standard.................................................................................... | 7 | |
3. Consolidated Financial Statement .......................................................................................................................... | 8 | |
(1) | Consolidated Statement of Financial Position .................................................................................................. | 8 |
(2) | Consolidated Statement of Profit or Loss and Consolidated Statement of Comprehensive Income .............. | 10 |
(3) | Consolidated Statement of Changes in Equity ............................................................................................... | 12 |
(4) | Consolidated Statement of Cash Flows .......................................................................................................... | 13 |
(5) | Notes to Consolidated Financial Statements .................................................................................................. | 14 |
(Notes on Going Concern Assumption) ............................................................................................................... | 14 | |
(Segment Information) ......................................................................................................................................... | 14 | |
(Per Share Information)........................................................................................................................................ | 17 | |
(Significant Subsequent Events) .......................................................................................................................... | 17 | |
(First-time Adoption)............................................................................................................................................ | 18 | |
4. Other..................................................................................................................................................................... | 29 | |
(1) | Status of Orders and Sales .............................................................................................................................. | 29 |
(2) | Changes in Directors ...................................................................................................................................... | 30 |
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1. Overview of Operating Results, etc.
Matters concerning the future in the text are based on judgments as of the end of the consolidated fiscal year under review.
The Group has changed the accounting standards to be applied from the end of the consolidated fiscal year under review to IFRS. Therefore, the financial figures for the previous consolidated fiscal year are also presented in accordance with IFRS.
(1) Overview of Operating Results for the Current Fiscal Year
During the fiscal year under review (from July 1, 2020 to June 30, 2021), the Japanese economy remained in a severe condition due to the impact of the novel coronavirus (COVID-19). While the recovery is expected to continue due to an improvement in overseas economies as measures are taken to prevent the spread of infection and vaccinations are promoted, we need to pay close attention to the impact of COVID-19 on the domestic and international economy. Similarly, we need to closely monitor the impact of fluctuations in financial and capital markets.
With regard to the business environment surrounding Nippon Koei Co., Ltd. (the "Company") and its subsidiaries (together, the "Group"), the Domestic Consulting Business was strong since the Japanese government's budget for public works projects in fiscal years 2020 and 2021 was maintained at the same level as the previous fiscal year. On the other hand, the International Consulting Business was affected by travel restrictions accompanying the spread of COVID-19 although the Japanese government continued with its strategy for exporting high-quality infrastructure systems. In the Power Engineering Business, new business opportunities are expected as a result of the reform of the electric power system while the tough business environment continued as customers continued to request cost reductions when upgrading existing electric power facilities. In the Urban & Spatial Development Business, the economy of the UK, which is a major market, is recovering to the pre-pandemic scale and global demand for infrastructure development increased as urbanization progressed in Asian countries. In the Energy Business, demand for renewable energy grew as the world shifted to development of decarbonization and energy resource decentralization.
Under these circumstances, based on the Medium-Term Management Plan "NK-Innovation 2021" (from July 2018 to June 2021), with the fundamental principles of "Continue evolution into global consulting and engineering firm," the Group tackled the five business strategies of "Enhancement of operating system for Railways Business," "Overseas expansion of Urban & Spatial Development Business," "Establishment of Energy Business," "Creation of businesses and overseas expansion of Consulting Business," and "Product development and overseas expansion of Power Engineering Business." Moreover, as group-wide measures to realize these goals, the Group advanced "Establishment of one-stop marketing system," "Investment in technologies and human resources," and "Enhancement of group governance."
On the other hand, the Group is taking steps to prevent COVID-19 with an active defense system to protect the lives and health of employees and their families and to minimize the impact on customers due to delays in business progress. In addition, our internal policy is to promote telework and other work style reforms in order to achieve a better work- life balance and increase productivity.
As a result, the Group's consolidated results for the fiscal year under review were as follows: Although orders received decreased 8.0% year on year to ¥133,304 million, revenue increased 8.7% year on year to ¥117,859 million, operating profit increased 35.9% year on year to ¥7,128 million and profit attributable to owners of parent increased 46.2% year on year to ¥4,531 million, thanks to the solid demand and efficient business operations in the Domestic Consulting Business and International Consulting Business.
Business results for each segment are as follows:
[Domestic Consulting]
As for the Domestic Consulting Business, we promoted the assignment of human resources engaged in the International Consulting Business to work within Japan, receiving orders jointly and reducing outsourcing of work.
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Nippon Koei Co. Ltd. published this content on 31 August 2021 and is solely responsible for the information contained therein. Distributed by Public, unedited and unaltered, on 31 August 2021 04:01:07 UTC.