February 9, 2023
Consolidated Earnings Report for the Fiscal Year Ended December 31, 2022(Japanese GAAP)
These financial statements have been prepared for reference in accordance with accounting principles and practices generally accepted in Japan.
Company name: Star Micronics Co., Ltd. | Stock listing: Tokyo Stock Exchange | |
Code: 7718 | URL https://www.star-m.jp | |
Representative Director: Mamoru Sato, President and CEO | ||
Inquiries: Seigo Sato, Senior Executive Officer, General Manager, General Administration Headquarters |
TEL: 054 -263-1111
Scheduled annual general meeting of shareholders: March 23, 2023 Scheduled payment of dividends: March 9, 2023
Scheduled release of FY2022 business report: March 24, 2023
Preparation of supplementary explanatory materials for earnings report: Yes
Earnings presentation: Yes
(Figures less than one million are rounded down)
1. Consolidated Results for the Fiscal Year Ended December 31, 2022 (From January 1, 2022 to December 31, 2022)
(1) Consolidated Operating Results | (Percentages represent changes over the previous fiscal year) | |||||||
Net Income | ||||||||
Net Sales | Operating Income | Ordinary Income | Attributable to | |||||
Owners of Parent | ||||||||
(¥ million) | % | (¥ million) | % | (¥ million) | % | (¥ million) | % | |
Year Ended December 31, 2022 | 87,368 | 35.7 | 13,925 | 87.8 | 14,199 | 82.2 | 10,298 | 79.4 |
Year Ended December 31, 2021 | 64,360 | 40.9 | 7,415 | 241.3 | 7,795 | 181.1 | 5,740 | 231.5 |
(Note) Comprehensive income | ||||||||
Year Ended December 31, 2022 | ¥15,374 million [74.0%] Year Ended December 31, 2021 ¥8,834 million [846.3%] | |||||||
Net Income | Diluted Net Income | Ratio of Net Income to | Ratio of Ordinary | Ratio of Operating | ||||
per Share | per Share | Shareholders' Equity Income to Total Assets Income to Net Sales | ||||||
(¥) | (¥) | % | % | % | ||||
Year Ended December 31, 2022 | 271.14 | 270.01 | 15.4 | 15.6 | 15.9 | |||
Year Ended December 31, 2021 | 150.83 | 142.38 | 10.4 | 10.1 | 11.5 |
Reference: Equity in earnings of affiliated companies | |||||||||
Year Ended December 31, 2022 | ¥0 million | Year Ended December 31, 2021 | ¥(4) million | ||||||
(2) Consolidated Financial Position | |||||||||
Total Assets | Net Assets | Equity Ratio | Net Assets per | ||||||
Share | |||||||||
(¥ million) | (¥ million) | % | (¥) | ||||||
As of December 31, 2022 | 99,538 | 73,088 | 73.0 | 1,928.77 | |||||
As of December 31, 2021 | 82,360 | 61,728 | 74.1 | 1,576.64 | |||||
Reference: Shareholders' Equity | |||||||||
As of December 31, 2022 ¥72,628 million | As of December 31, 2021 ¥61,054 million | ||||||||
(3) Consolidated Cash Flows | |||||||||
Operating | Investing | Financing | Year-end Cash and | ||||||
Activities | Activities | Activities | Cash Equivalents | ||||||
(¥ million) | (¥ million) | (¥ million) | (¥ million) | ||||||
Year Ended December 31, 2022 | 7,523 | (2,633) | (4,624) | 29,564 | |||||
Year Ended December 31, 2021 | 9,600 | 740 | (7,558) | 27,199 | |||||
2. Dividends | |||||||||
Dividends per Share | Dividends | Dividend | Dividend on | ||||||
1Q | 2Q | 3Q | Year- | Full | Total | Payout Ratio | Equity Ratio | ||
End | End | End | End | Year | (Total) | (Consolidated) | (Consolidated) | ||
(¥) | (¥) | (¥) | (¥) | (¥) | (¥ million) | % | % | ||
FY 2021 | - | 29.00 | - | 29.00 | 58.00 | 2,287 | 38.5 | 3.9 | |
FY 2022 | - | 30.00 | - | 40.00 | 70.00 | 2,637 | 25.8 | 4.0 | |
FY 2023 (Projected) | - | 30.00 | - | 30.00 | 60.00 | 27.4 | |||
(Note) Breakdown of Year-End Dividends in FY2022 | Ordinary dividend ¥30.00 Special dividend ¥10.00 |
3. Consolidated Outlook for the Fiscal Year Ending December 31, 2023(From January 1, 2023 to December 31, 2023)
(Percentages represent changes over the previous fiscal year) | |||||||||
Net Income | Net Income | ||||||||
Net Sales | Operating Income | Ordinary Income | Attributable to | ||||||
per Share | |||||||||
Owners of Parent | |||||||||
(¥ | million) | % | (¥ million) | % | (¥ million) | % | (¥ million) | % | (¥) |
Interim term | 41,900 | 6.7 | 6,400 | 11.8 | 6,600 | 10.5 | 5,000 | 18.8 | 133.34 |
Full Year | 79,500 | (9.0) | 10,500 | (24.6) | 10,800 | (23.9) | 8,100 | (21.3) | 218.58 |
*Note
(1) Significant changes in subsidiaries during the | period under review (changes in certain specified subsidiaries |
resulting in revised scope of consolidation): None | |
New company: - (Company name) | , Excluded company: - (Company name) |
- Changes in accounting policies, estimates and restatement or corrections
- Changes associated with revised accounting standards: Yes
- Changes other than those in (i) above: None
- Changes in accounting estimates: None
- Retrospective restatement: None
- Number of shares issued and outstanding (Common stock)
- Number of shares issued and outstanding at period-end (Including treasury stock)
As of December 31, 2022 | 42,465,134 shares | As of December 31, 2021 | 44,091,334 shares |
(ii) Number of treasury stock at period-end | |||
As of December 31, 2022 | 4,809,548 shares | As of December 31, 2021 | 5,367,223 shares |
(iii) Average number of outstanding shares | |||
As of December 31, 2022 | 37,982,790 shares | As of December 31, 2021 | 38,055,778 shares |
(Reference) Overview of Non-consolidated Financial Results
Non-consolidated Results for the Fiscal Year Ended December 31, 2022 (From January 1, 2022 to December 31, 2022)
(1) Non-consolidated Operating Results
(Percentages represent changes over the previous fiscal year) | ||||||||
Net Sales | Operating Income | Ordinary Income | Net Income | |||||
(¥ million) | % | (¥ million) | % | (¥ million) | % | (¥ million) | % | |
Year Ended December 31, 2022 | 48,375 | 41.9 | 7,303 | 304.4 | 8,563 | 86.8 | 6,485 | 50.4 |
Year Ended December 31, 2021 | 34,087 | 53.2 | 1,806 | - | 4,585 | - | 4,311 | 760.6 |
Net Income | Diluted Net Income | |||||||
per Share | per Share | |||||||
(¥) | (¥) | |||||||
Year Ended December 31, 2022 | 170.74 | 170.02 | ||||||
Year Ended December 31, 2021 | 113.30 | 106.91 | ||||||
(2) Non-consolidated Financial Position | Net Assets per | |||||||
Total Assets | Net Assets | Equity Ratio | ||||||
Share | ||||||||
(¥ million) | (¥ million) | % | (¥) | |||||
As of December 31, 2022 | 64,467 | 45,171 | 69.5 | 1,190.25 | ||||
As of December 31, 2021 | 56,275 | 42,739 | 75.2 | 1,092.84 | ||||
Reference: Shareholders' Equity | ||||||||
As of December 31, 2022 ¥44,819 million | As of December 31, 2021 ¥42,319 million |
- This earnings report is not included in the scope of the audit or the certified public accountant.
- Regarding the appropriate use of earnings projections and other noteworthy matters
The above projections are based on information available at the time of release of this report and certain assumptions the Company considers reasonable. The Company does not promise that these projections will be achieved. Actual results may differ materially from projections due to a variety of factors. For information regarding the assumptions and other matters related to earnings projections in this report, refer to "(4) Future Outlook" under "1. Overview of Operating Results and Financial Position" on page 3.
○(Attached Documents) Index | ||
1. Overview of Operationg Results and Financial Position | 2 | |
(1) | Overview of Operating Results for the Year Ended December 31, 2022 | 2 |
(2) | Overview of Financial Position for the Year Ended December 31, 2022 | 2 |
(3) | Overview of Cash Flows for the Year Ended December 31, 2022 | 3 |
(4) | Future Outlook | 3 |
(5) | Basic Dividend Policy and Dividends for This Fiscal Year and the Next Fiscal Year | 4 |
2. Basic Policy regarding the Selection of Accounting Standards | 4 | |
3. Consolidated Financial Statements and Major Notes | 5 | |
(1) | Consolidated Balance Sheet | 5 |
(2) | Consolidated Statement of Income and Consolidated Statement of Comprehensive Income | 7 |
Consolidated Statement of Income | 7 | |
Consolidated Statement of Comprehensive Income | 8 | |
(3) | Consolidated Statement of Changes in Equity | 9 |
(4) | Consolidated Statement of Cash Flows | 11 |
(5) | Notes to Consolidated Financial Statements | 12 |
(Note on Going Concern Assumption) | 12 | |
(Changes in Accounting Policies) | 12 | |
(Segment Information) | 13 | |
(Per Share Information) | 15 | |
(Significant Subsequent Events) | 15 |
1
1. Overview of Operating Results and Financial Position
The Company has applied the Accounting Standard for Revenue Recognition (ASBJ Statement No. 29, March 31, 2020), etc. since the beginning of the first quarter of the fiscal year under review.
Please refer to "(5) Notes to Consolidated Financial Statements (Changes in Accounting Policies)" under "3. Consolidated Financial Statements and Major Notes" on page 12 for details.
(1) Overview of Operating Results for the Year Ended December 31, 2022
Looking at the fiscal 2022, the fiscal year ended December 31, 2022, global economic conditions remained uncertain. In addition to the effects of COVID-19, this uncertainty was due to a variety of factors including the accelerated pace of global inflation, soaring resource prices triggered by the prolonged Ukraine crisis, tight supply of such components and parts as semiconductors, and sharp fluctuations in foreign currency exchange rates. By geographic region, the U.S. economy exhibited a recovery trend on the back of steady consumer spending. In contrast, economic conditions throughout Europe were generally weak. In Asia, China's economy remained firm despite significant restrictions on economic activities owing to the government's decision to adopt a zero-corona policy. On the domestic front, Japan witnessed a modest economic recovery.
In each of the major markets in which the Star Micronics Group operates, demand for POS printers was strong especially in the U.S. At the same time, overseas demand for the Group's mainstay machine tools remained generally high with firm demand also in Japan.
Under these circumstances, the Star Micronics Group reported sales of ¥87,368 million for the fiscal year under review, up 35.7% compared with the corresponding period of the previous fiscal year. This was largely due to the substantial increase in sales of machine tools. From a profit perspective, operating income climbed 87.8%, to ¥13,925 million owing mainly to the substantial jump in sales. Ordinary income surged 82.2%, to ¥14,199 million. Net income attributable to owners of parent amounted to ¥10,298 million, up 79.4% year on year.
Performance by segment was as follows:
(Special Products)
In POS printers, despite the impact of such factors as delays in supply of products attributable to shortages in the procurement of components and parts, and disruptions to logistics, sales increased. In addition to the ongoing period of favorable market conditions, which reflected the continued brisk mPOS demand in each market, this increase in sales was largely due to the impact of the yen's depreciation. Looking at trends by geographic region, sales in the U.S. market increased substantially. While delays in the supply of products had a negative effect, this was largely attributable to the impact of the yen's depreciation. In the European and domestic markets, conditions were favorable. Sales, however, decreased owing to delays in the supply of products.
As a result, both sales and profits grew. In specific terms, sales increased 15.3% compared with the corresponding period of the previous fiscal year, to ¥17,959 million. Operating income grew substantially climbing 64.5% year on year, to ¥3,754 million.
(Machine Tools)
Sales of CNC automatic lathes jumped significantly amid brisk global demand for capital investment. By geographic region, sales were strong across a wide range of industries centered on the medical-related sector in the U.S. market. In the European market, sales were robust mainly in automotive-related industries. Accordingly, sales rose significantly in each market. Despite signs of a cautious approach toward capital investment in China over the latter half of the fiscal year, sales in the Asian market increased. This was mainly due to the ongoing high level of sales mainly in automotive-related industries. With signs of a recovery across a wide range of industries, sales in the domestic market increased substantially. This was despite the delay in an automotive-related recovery in Japan.
Accounting for each of the aforementioned factors, both sales and profits increased substantially. In specific terms, sales grew 42.3% compared with the corresponding period of the previous fiscal year, to ¥69,408 million. Operating income jumped 78.6% year on year, to ¥12,248 million.
(2) Overview of Financial Position for the Year Ended December 31, 2022
Amid foreign currency exchange rates affecting the consolidated balance sheet as a whole at the end of the fiscal year under review, assets stood at ¥99,538 million, an increase of ¥17,178 million compared with the end of the previous fiscal year. This was mainly due to the upswing in inventories and trade receivables. Total liabilities came to ¥26,450 million, an increase of ¥5,818 million compared with the previous fiscal year-end. This largely reflected the upturn in income taxes payables and other current liabilities. Total net assets increased ¥11,359 million compared with the end of the previous fiscal year, to ¥73,088 million. This was in large part due to the increase in retained earnings and foreign currency translation adjustments notwithstanding such factors as dividends paid and the purchase and retirement of treasury stock.
2
(3) Overview of Cash Flows for the Year Ended December 31, 2022
Cash and cash equivalents as of the end of the fiscal year under review were ¥29,564 million, an increase of ¥2,365 million compared with the previous fiscal year-end. This was the result of net cash provided by operating activities of ¥7,523 million, and partially offset by net cash used in and investing and financing activities of ¥2,633 million and ¥4,624 million, respectively, and the addition of a translation adjustment on cash and cash equivalents.
(Operating Activities)
Net cash provided by operating activities totaled ¥7,523 million (¥9,600 million for the previous fiscal year). While the principal cash outflows were increase in inventories and income taxes paid, the major cash inflows reflected the income before income taxes and the depreciation and amortization.
(Investing Activities)
Net cash used in investing activities came to ¥2,633 million, a turnaround from net cash provided by investing activities of ¥740 million in the previous fiscal year. The major cash outflow was for purchases of property, plant and equipment.
(Financing Activities)
Net cash used in financing activities totaled ¥4,624 million (¥7,558 million for the previous fiscal year) owing to decrease in dividends paid and payments for purchase of treasury stock.
(Reference) Trends in Cash Flow Related Indices | |||||
FY12 | FY12 | FY12 | FY12 | FY12 | |
2018 | 2019 | 2020 | 2021 | 2022 | |
Equity Ratio (%) | 60.3 | 65.2 | 68.2 | 74.1 | 73.0 |
Market Value Basis Equity Ratio (%) | 66.9 | 72.7 | 81.5 | 72.8 | 61.2 |
Debt / Cash Flow Ratio (Years) | 0.4 | 0.6 | 0.4 | 0.1 | 0.2 |
Interest Coverage Ratio (Times) | 949.9 | 316.6 | 351.8 | 512.4 | 271.8 |
Equity Ratio | : Shareholders Equity / Total Assets | ||||
Market Value Basis Equity Ratio | : Market Capitalization / Total Assets | ||||
Debt / Cash Flow Ratio | : Debt / Cash Flows | ||||
Interest Coverage Ratio | : Cash Flows / Interest Payments |
(Note)
1 Calculation based on the consolidated basis financial figures.
2 Market capitalization is calculated by multiplying the closing price as of the end of the fiscal year by the total number of shares issued and outstanding (excluding treasury stock).
3 "Cash flow" uses the net cash provided by operating activities.
4 "Interest-bearing liabilities" comprises all the liabilities recorded on the consolidated balance sheet for which interest must be paid.
-
Future Outlook
Looking ahead, conditions throughout the global economy are expected to remain uncertain. In addition to ongoing concerns surrounding geopolitical risks, spearheaded by the crisis in Ukraine, where no end is in sight, this is due to a variety of factors including anxieties toward the economic slowdown caused by inflation and trends in energy prices which continue to hover at a high level. In Japan, the impact of volatile foreign currency exchange rates also continues to be a major cause for concern.
Under these circumstances, and in the context of the Company's consolidated business performance for the coming fiscal year, sales in the mainstay Machine Tools Segment are forecast to decline. Despite expectations of an upswing in sales as order backlogs clear in Europe and the U.S., this forecast decline is due to concerns surrounding a downturn in capital investment demand triggered by the slowdown in economic conditions. In the Special Products Segment, sales are projected to stall in the U.S., but remain firm in the European market. Taking into account these and other factors including the impact of foreign currency exchange rates, sales in this segment are forecast to remain at the same level as the previous fiscal year.
Taking into account the aforementioned factors, our outlook for consolidated results in the coming fiscal year is a downturn. In specific terms, we expect a decrease in net sales of 9.0% compared with the fiscal year under review, to ¥79,500 million. On a year-on-year basis, operating income is forecast to decline 24.6%, to ¥10,500 million, ordinary income to fall 23.9%, to ¥10,800 million and net income attributable to owners of parent to also drop 21.3%, to ¥8,100 million in next fiscal year.
Forecasts are based on the assumptions that the yen/US dollar exchange rate will be JPY125 and the yen/Euro exchange rate will be JPY130.
3
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Star Micronics Co. Ltd. published this content on 09 February 2023 and is solely responsible for the information contained therein. Distributed by Public, unedited and unaltered, on 09 February 2023 06:42:19 UTC.