Disclaimer:
This financial report is solely a translation of the "Kessan Tanshin" (in Japanese, including attachments), which has been prepared in accordance with accounting principles and practices generally accepted in Japan, for the convenience of readers who prefer an English translation.
October 30, 2023
SB Technology Corp.
Consolidated Financial Report for the Second Quarter of Fiscal Year Ending March 31, 2024
(Six Months Ended September 30, 2023)
[Japanese GAAP]
Company name: SB Technology Corp. (Tokyo Stock Exchange/Code No. 4726)
(URLhttps://www.softbanktech.co.jp/) | ||
Representative: | Shinichi Ata, President & CEO | |
Contact: | Masaaki Okazaki, Member of the Board, Executive Vice President & CFO | |
Phone: +81-3-6892-3063 | ||
Scheduled date of filing of Quarterly Report: | November 13, 2023 | |
Scheduled date of payment of dividend: | December 1, 2023 | |
Preparation of supplementary materials for quarterly financial results: | Yes | |
Holding of quarterly financial results meeting: | Yes (for institutional investors and analysts) |
(All amounts are rounded down to the nearest million yen)
1. Consolidated Financial Results for the Six Months Ended September 30, 2023 (April 1, 2023 - September 30, 2023)
(1) Consolidated Results of Operations | (Percentages represent year-on-year changes) | |||||||
Net sales | Operating income | Ordinary income | Profit attributable to | |||||
owners of parent | ||||||||
Million yen | % | Million yen | % | Million yen | % | Million yen | % | |
Six Months ended Sep. 30, 2023 | 32,206 | 1.6 | 2,282 | 0.6 | 2,182 | △1.8 | 6,272 | 365.9 |
Six Months ended Sep. 30, 2022 | 31,706 | 1.2 | 2,270 | 2.9 | 2,222 | 1.5 | 1,346 | 2.3 |
Note: Comprehensive income (million yen) | Six Months ended Sep. 30, 2023: | 6,400 | (up 335.8%) | ||
Six Months ended Sep. 30, 2022: | 1,468 | (up 4.7%) | |||
Net income per share | Diluted net income per share | ||||
Six Months ended Sep. 30, 2023 | Yen | Yen | |||
315.63 | 315.35 | ||||
Six Months ended Sep. 30, 2022 | 66.99 | 66.32 |
(2) Consolidated Financial Position
Total assets | Net assets | Shareholders' equity | Net assets per share | |||
ratio | ||||||
Million yen | Million yen | % | Yen | |||
As of Sep. 30, 2023 | 48,140 | 30,963 | 58.6 | 1,417.91 | ||
As of Mar. 31, 2023 | 45,466 | 25,167 | 49.4 | 1,131.42 | ||
Reference: Shareholders' equity (million yen) | As of Sep. 30, 2023: 28,218 | As of Mar. 31, 2023: 22,475 |
2. Dividends
Dividends per share | |||||||
1Q-end | 2Q-end | 3Q-end | Year-end | Total | |||
Yen | Yen | Yen | Yen | Yen | |||
Fiscal year ended Mar. 31, 2023 | - | 25.00 | - | 35.00 | 60.00 | ||
Fiscal year ending Mar. 31, 2023 | - | 30.00 | |||||
Fiscal year ending Mar. 31, 2023 (forecast) | - | 30.00 | 60.00 |
Note: Revisions to the most recently announced dividend forecast: None
3. Forecast of Consolidated Financial Results for the Fiscal Year Ending March 31, 2024 (April 1, 2023 - March 31, 2024)
(Percentages represent year-on-year changes)
Net sales | Operating income | Ordinary income | Profit attributable to | Net income per share | |||||
owners of parent | |||||||||
Full year | Million yen | % | Million yen | % | Million yen | % | Million yen | % | Yen |
68,000 | 1.1 | 5,900 | 6.2 | 5,750 | 4.6 | 8,200 | 134.5 | 412.60 |
Note: Revisions to the most recently announced consolidated forecast: None
* Notes
- Changes in significant subsidiaries during the period (changes in specified subsidiaries resulting in changes in scope of consolidation): None
- Application of special accounting for presenting quarterly consolidated financial statements: None
- Changes in accounting policies and accounting estimates, and restatements
- Changes in accounting policies due to revisions in accounting standards, others: None
- Changes in accounting policies other than i. above: None
- Changes in accounting estimates: None
- Restatements: None
- Number of outstanding shares (common stock)
- Number of shares outstanding at the end of the period (including treasury shares)
As of Sep. 30, 2023: | 22,757,800 shares | As of Mar. 31, 2023: | 22,757,800 shares |
- Number of treasury shares at the end of the period
As of Sep. 30, 2023: | 2,856,020 shares | As of Mar. 31, 2023: | 2,892,930 shares |
iii. Average number of shares outstanding during the period | |||
Six Months ended Sep. 30, 2023: | 19,874,019 shares | Six Months ended Sep. 30, 2022: | 20,095,960 shares |
- This consolidated financial report is not subject to quarterly review procedures by a certified public accountant or audit company.
- Explanation for appropriate use of operating forecasts, and other special items
Cautionary statement with respect to forward-looking statements
Forecasts regarding future performance in this report are based on assumptions based upon valid and other reasonable information available to the Company at the time this report was created. This report is not promised by the Company regarding future performance. The actual performance may differ significantly from these forecasts for a variety of reasons.
How to view supplementary information at the financial results meeting
The Company plans to hold the financial results meeting for institutional investors and analysts on October 30, 2023.
Supplementary materials for financial results will be disclosed, using the Timely Disclosure network (TDnet),and will be available on the Company's website (https://www.softbanktech.co.jp/corp/ir/).
SB Technology Corp. (4726) Financial Report
For the six-month period ended September 30, 2023
Quarterly Consolidated Financial Statements
(1) Quarterly Consolidated Balance Sheet
(Millions of yen) | ||||
As of March 31, 2023 | As of September 30, 2023 | |||
Assets | ||||
Current assets | ||||
Cash and deposits | 8,221 | 14,568 | ||
Notes and accounts receivable - trade, and contract assets | 24,133 | 16,882 | ||
Merchandise | 131 | 82 | ||
Other | 3,136 | 6,558 | ||
Allowance for doubtful accounts | △0 | △0 | ||
Total current assets | 35,622 | 38,092 | ||
Non-current assets | ||||
Property, plant and equipment | ||||
Buildings, net | 684 | 502 | ||
Tools, furniture and fixtures, net | 991 | 841 | ||
Other, net | 5 | 45 | ||
Total property, plant and equipment | 1,681 | 1,389 | ||
Intangible assets | ||||
Goodwill | 836 | 671 | ||
Software | 2,531 | 2,038 | ||
Software in progress | 476 | 692 | ||
Customer relationships | 189 | 41 | ||
Other | 86 | 66 | ||
Total intangible assets | 4,120 | 3,509 | ||
Investments and other assets | ||||
Investment securities | 667 | 663 | ||
Deferred tax assets | 1,297 | 1,069 | ||
Other | 2,075 | 3,416 | ||
Total investments and other assets | 4,040 | 5,148 | ||
Total non-current assets | 9,842 | 10,047 | ||
Deferred assets | ||||
Share issuance costs | 1 | 0 | ||
Total deferred assets | 1 | 0 | ||
Total assets | 45,466 | 48,140 | ||
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SB Technology Corp. (4726) Financial Report
For the six-month period ended September 30, 2023
(Millions of yen) | ||||
As of March 31, 2023 | As of September 30, 2023 | |||
Liabilities | ||||
Current liabilities | ||||
Accounts payable - trade | 7,020 | 4,132 | ||
Current portion of long-term borrowings | 309 | 289 | ||
Lease liabilities | 14 | 10 | ||
Accounts payable - other | 4,493 | 4,925 | ||
Income taxes payable | 1,372 | 1,344 | ||
Contract liabilities | 2,186 | 2,488 | ||
Provision for bonuses | 1,784 | 1,375 | ||
Provision for bonuses for directors (and other officers) | - | 47 | ||
Provision for loss on orders received | 626 | 576 | ||
Provision for defect repair | 39 | - | ||
Other | 742 | 695 | ||
Total current liabilities | 18,590 | 15,885 | ||
Non-current liabilities | ||||
Long-term borrowings | 489 | 255 | ||
Lease liabilities | 81 | 76 | ||
Contract liabilities | 670 | 579 | ||
Retirement benefit liability | 60 | 4 | ||
Asset retirement obligations | 336 | 319 | ||
Other | 69 | 55 | ||
Total non-current liabilities | 1,708 | 1,290 | ||
Total liabilities | 20,298 | 17,176 | ||
Net assets | ||||
Shareholders' equity | ||||
Share capital | 1,270 | 1,270 | ||
Capital surplus | 1,613 | 1,662 | ||
Retained earnings | 22,182 | 27,838 | ||
Treasury shares | △2,600 | △2,567 | ||
Total shareholders' equity | 22,466 | 28,204 | ||
Accumulated other comprehensive income | ||||
Valuation difference on available-for-sale securities | 3 | 7 | ||
Foreign currency translation adjustment | 5 | 7 | ||
Total accumulated other comprehensive income | 9 | 14 | ||
Share acquisition rights | 320 | 292 | ||
Non-controlling interests | 2,371 | 2,451 | ||
Total net assets | 25,167 | 30,963 | ||
Total liabilities and net assets | 45,466 | 48,140 | ||
- 2 -
SB Technology Corp. (4726) Financial Report
For the six-month period ended September 30, 2023
- Quarterly Consolidated Statements of Income and Comprehensive Income (For the Six-month Period)
(Millions of yen) | ||||
Six months ended | Six months ended | |||
September 30, 2022 | September 30, 2023 | |||
Net sales | 31,706 | 32,206 | ||
Cost of sales | 24,762 | 24,608 | ||
Gross profit | 6,944 | 7,597 | ||
Selling, general and administrative expenses | 4,673 | 5,315 | ||
Operating profit | 2,270 | 2,282 | ||
Non-operating income
Interest income
Dividend income
Share of profit of entities accounted for using equity method
Foreign exchange gains
Miscellaneous income
Total non-operating income
Non-operating expenses
Interest expenses
Commission expenses
Donations
Foreign exchange losses
Loss on investments in investment partnerships Miscellaneous losses
Total non-operating expenses
Ordinary profit
Extraordinary income
Compensation income
Gain on reversal of share acquisition rights Gain on transfer from business divestitures Total extraordinary income
Extraordinary losses
Industrial accident settlement
Amortization of goodwill
Total extraordinary losses
Profit before income taxes
Income taxes - current
Income taxes - deferred
Total income taxes
Profit
0 | 0 | ||||
2 | 1 | ||||
1 | 4 | ||||
- | 1 | ||||
12 | 7 | ||||
16 | 15 | ||||
4 | 3 | ||||
20 | 95 | ||||
10 | 10 |
18-
2 | 4 | |||
8 | 2 | |||
64 | 115 | |||
2,222 | 2,182 | |||
16-
14 | 32 | ||||
- | 6,562 | ||||
30 | 6,594 | ||||
- | 70 | ||||
- | 63 | ||||
- | 133 | ||||
2,253 | 8,643 | ||||
421 | 2,032 | ||||
366 | 215 | ||||
788 | 2,248 | ||||
1,465 | 6,394 | ||||
- 3 -
SB Technology Corp. (4726) Financial Report
For the six-month period ended September 30, 2023
(Millions of yen) | ||||
Six months ended | Six months ended | |||
September 30, 2022 | September 30, 2023 | |||
Profit attributable to | ||||
Profit attributable to owners of parent | 1,346 | 6,272 | ||
Profit attributable to non-controlling interests | 118 | 121 | ||
Other comprehensive income | ||||
Valuation difference on available-for-sale securities | 2 | 3 | ||
Foreign currency translation adjustment | 1 | 1 | ||
Total other comprehensive income | 3 | 5 | ||
Comprehensive income | 1,468 | 6,400 | ||
Comprehensive income attributable to | ||||
Comprehensive income attributable to owners of parent | 1,349 | 6,278 | ||
Comprehensive income attributable to non-controlling | ||||
interests | 118 | 121 | ||
- 4 -
SB Technology Corp. (4726) Financial Report
For the six-month period ended September 30, 2023
(3) Quarterly Consolidated Statement of Cash Flows
(Millions of yen) | |||
Six months ended | Six months ended | ||
September 30, 2022 | September 30, 2023 | ||
Cash flows from operating activities | |||
Profit before income taxes | 2,253 | 8,643 | |
Depreciation | 694 | 772 | |
Amortization of goodwill | 128 | 165 | |
Share-based payment expenses | 55 | 34 | |
Increase (decrease) in allowance for doubtful accounts | 0 | △0 | |
Increase (decrease) in provision for bonuses | △546 | △350 | |
Increase (decrease) in provision for bonuses for directors (and | |||
other officers) | 53 | 47 | |
Increase (decrease) in retirement benefit liability | 3 | 4 | |
Increase (decrease) in provision for loss on orders received | △192 | △49 | |
Increase (decrease) in provision for defect repair | △9 | △39 | |
Interest and dividend income | △2 | △2 | |
Interest expenses | 4 | 3 | |
Commission expenses | 20 | 95 | |
Share of loss (profit) of entities accounted for using equity | |||
method | △1 | △4 | |
Loss (gain) on investments in investment partnerships | 2 | 4 | |
Gain on transfer from business divestitures | - | △6,562 | |
Decrease (increase) in notes and accounts receivable-trade and | |||
contract assets | 6,941 | 6,919 | |
Decrease (increase) in inventories | △26 | 66 | |
Decrease (increase) in trade receivables | △791 | △1,191 | |
Increase (decrease) in trade payables | △2,784 | △2,839 | |
Increase (decrease) in contract liabilities | 510 | 220 | |
Increase (decrease) in accrued consumption taxes | △101 | △59 | |
Increase (decrease) in trade payables | △320 | △122 | |
Other, net | △10 | △33 | |
Subtotal | 5,881 | 5,721 | |
Interest and dividends received | 2 | 8 | |
Interest paid | △4 | △2 | |
Income taxes paid | △1,178 | △1,975 | |
Net cash provided by (used in) operating activities | 4,700 | 3,751 | |
Cash flows from investing activities | |||
Purchase of property, plant and equipment | △237 | △120 | |
Purchase of intangible assets | △570 | △695 | |
Proceeds from sale of investment securities | 0 | - | |
Proceeds from business divestitures | - | 3,485 | |
Proceeds from collection of loans receivable | 3 | 0 | |
Payments of guarantee deposits | △3 | △3 | |
Proceeds from refund of guarantee deposits | 0 | 3 | |
Other, net | △20 | 6 | |
Net cash provided by (used in) investing activities | △826 | 2,676 | |
- 5 -
SB Technology Corp. (4726) Financial Report
For the six-month period ended September 30, 2023
(Millions of yen) | |||
Six months ended | Six months ended | ||
September 30, 2022 | September 30, 2023 | ||
Cash flows from financing activities | |||
Proceeds from short-term borrowings | - | 951 | |
Repayments of short-term borrowings | - | △100 | |
Repayments of long-term borrowings | △227 | △254 | |
Proceeds from issuance of shares | 32 | - | |
Purchase of treasury shares | △1,098 | △0 | |
Proceeds from disposal of treasury shares | 69 | 66 | |
Dividends paid | △607 | △694 | |
Dividends paid to non-controlling interests | - | △58 | |
Repayments of lease liabilities | △9 | △9 | |
Proceeds from share issuance to non-controlling shareholders | 14 | 12 | |
Net cash provided by (used in) financing activities | △1,825 | △88 | |
Effect of exchange rate change on cash and cash equivalents | 9 | 7 | |
Net increase (decrease) in cash and cash equivalents | 2,057 | 6,347 | |
Cash and cash equivalents at beginning of period | 8,701 | 8,160 | |
Cash and cash equivalents at end of period | 10,758 | 14,507 | |
- 6 -
SB Technology Corp. (4726) Financial Report
For the six-month period ended September 30, 2023
-
Notes to Consolidated Financial Statements
Going Concern Assumption
Not applicable.
Significant Changes in Shareholders' Equity
At a meeting of the Board of Directors held on July 19, 2023, the Company passed a resolution on the transfer of all the shares that the Company holds in Fontworks Inc., its consolidated subsidiary, to Monotype K.K., and the transfer of intangible assets related to Fontworks' business to Monotype Imaging Inc. The Transfer was executed on September 1, 2023.
Due to the Transfer, because of recording a gain on transfer from business divestitures of 6,562million yen, retained earnings at the end of the second quarter consolidated accounting period was 27,838million yen.
Disclaimer:
This financial report is solely a translation of "Kessan Tanshin" (in Japanese, including attachments), which has been prepared in accordance with accounting principles and practices generally accepted in Japan, for the convenience of readers who prefer an English translation.
- 7 -
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Disclaimer
SoftBank Technology Corporation published this content on 30 October 2023 and is solely responsible for the information contained therein. Distributed by Public, unedited and unaltered, on 30 October 2023 06:36:12 UTC.