Consolidated Financial Results for the Third Quarter of the
Fiscal Year Ending March 31, 2021 [Japanese GAAP]
January 28, 2021 | ||||||||
Company name: | TOKAI Holdings Corporation | Stock listing: | Tokyo Stock Exchange | |||||
Stock code: | 3167 | URL: | https://tokaiholdings.co.jp | |||||
Representative: | Katsukiho Tokita, President & CEO | |||||||
Contact: | Kuniyoshi Muramatsu, Managing Executive Officer, General Manager of Administrative | |||||||
Headquarters | Telephone: +81-54-275-0007 | |||||||
Scheduled date of filing quarterly report: | February 12, 2021 | |||||||
Scheduled date of dividend payment: | - | |||||||
Supplementary materials on quarterly financial results: | Yes | |||||||
Quarterly financial results briefing: | No | |||||||
(Figures are rounded to the nearest million yen) | ||||||||
1. Consolidated Financial Results for the Nine-months Ended December 31, 2020 | ||||||||
(April 1, 2020 to December 31, 2020) | ||||||||
(1) Consolidated Operating Results (cumulative) | (% figures represent year-on-year changes) | |||||||
Quarterly Net | ||||||||
Income | ||||||||
Sales | Operating Profit | Recurring Profit | Attributable to | |||||
Owners of the | ||||||||
Parent | ||||||||
Millions of yen | % | Millions of yen | % | Millions of | % | Millions of yen | % | |
yen | ||||||||
Nine-months Ended | ||||||||
139,792 | -1.2 | 9,901 | 6.7 | 9,929 | 4.8 | 5,936 | 16.3 | |
December 31, 2020 | ||||||||
Nine months Ended | 141,557 | 2.6 | 9,278 | 31.8 | 9,478 | 30.8 | 5,103 | 28.6 |
December 31, 2019 | ||||||||
(Note) Comprehensive income: 8,538 million yen in the Nine-months Ended December 31, 2020 (53.0%) 5,579 million yen in the Nine months Ended December 31, 2019 (199.3%)
Quarterly Net Income per Share | Quarterly Net Income per Share | |
(Diluted) | ||
Yen | Yen | |
Nine-months Ended December 31, 2020 | 45.33 | - |
Nine months Ended December 31, 2019 | 38.97 | - |
(2) Consolidated Financial Position
Total Assets | Net Assets | Equity Ratio | ||
Millions of yen | Millions of yen | % | ||
Nine-months Ended December 31, 2020 | 172,946 | 70,841 | 40.1 | |
Year ended March 31, 2020 | 169,972 | 65,982 | 38.0 | |
(Reference) Equity: 69,335 million yen for the | Nine-months Ended December 31, 2020 | |||
64,596 million yen for the year ended March 31, 2020 |
2. Dividends
Annual Dividend | ||||||||
End of Q1 | End of Q2 | End of Q3 | Year-end | Total | ||||
Yen | Yen | Yen | Yen | Yen | ||||
Year ending March 31, 2020 | ― | 14.00 | ― | 14.00 | 28.00 | |||
Year ending March 31, 2021 | ― | 14.00 | ||||||
Year ending March 31, 2021 | ― | 14.00 | 28.00 | |||||
(Forecast) | ||||||||
(Note) Revisions to most recently announced dividend forecasts: No |
3. Consolidated Earnings Forecasts for the Year Ending March 31, 2021 (April 1, 2020 to March 31, 2021)
(% figures represent year-on-year changes)
Net Income | |||||||||||
Sales | Operating Profit | Recurring Profit | Attributable to | Net Income | |||||||
Owners of the | per Share | ||||||||||
Parent | |||||||||||
Millions of | % | Millions of | % | Millions of | % | Millions of | % | Yen | |||
yen | yen | yen | yen | ||||||||
Year ending March | |||||||||||
205,300 | 4.8 | 15,000 | 5.5 | 14,870 | 2.7 | 8,460 | 2.7 | 64.60 | |||
31, 2021 | |||||||||||
(Note) Revisions to most recently announced | earnings forecasts: | No |
*Notes
- Changes in significant subsidiaries during the period under review (changes in specified subsidiaries affecting the scope of consolidation): No
- Application of special accounting procedures in the preparation of quarterly consolidated financial statements: No
- Changes in accounting policies, estimates, and restatements
1) | Changes in accounting policies accompanying revisions in accounting standards, etc. : No | |
2) | Changes in accounting policies other than 1) | : No |
3) | Changes in accounting estimates | : No |
4) | Restatements | : No |
- Number of shares issued (common stock)
- Shares issued at the end of each period (including treasury stock):
- Number of shares of treasury stock at the end of each period:
- Average number of shares during the period (cumulative):
Q3 FY3/2021 | 139,679,977 shares | FY3/2020 | 139,679,977 shares |
Q3 FY3/2021 | 8,713,304 shares | FY3/2020 | 8,722,345 shares |
Q3 FY3/2021 | 130,962,791 shares | Q3 FY3/2020 | 130,9453,891 shares |
(Note) Board benefit trust shares(BBT) is included in the number of year-end treasury stock.(391,300 stocks at Q3 FY3/2021, 400,700 stocks at FY3/2020) And the company shares held in ESOP trust accounts are included in the treasury stock, which is subtracted from calculations of the average number of shares during the period (395,436 shares for the Nine-months Ended December 31, 2020; 405,144 shares for the Nine months Ended December 31, 2019).
- Quarterly financial results not covered by quarterly review
-
Explanation regarding the Appropriate Uses of Earnings Forecasts and Other Notes
All earnings forecasts provided within this document are based on the most accurate information available at the time of the release of this document. Actual results may differ from forecasts due to various factors going forward.
TOKAI Holdings Corporation (3167) Financial Results for the Nine months Ended December 31, 2017
[Attachment]
Contents
- Qualitative Information on Financial Results for the Period Under Review
- Explanation of Consolidated Operating Performance ꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏ 2
- Explanation of Consolidated Financial Position ꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏ 4
- Explanation of Consolidated Earnings Forecasts and Other Forward-Looking Information ꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏ 5
- Quarterly Consolidated Financial Statements and Notes
- Quarterly Consolidated Balance Sheets ꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏ 6
- Quarterly Consolidated Statements of Income, Consolidated Statements of Comprehensive Income8
- Quarterly Consolidated Statements of Cash Flowsꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏ10
- Notes to Quarterly Consolidated Financial Statementsꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏ 11 (Notes on Going Concern Assumptions) ꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏ 11 (Notes to Significant Changes in Shareholders' Equity)ꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏ 11 (Additional Information) ꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏ 11 (Segment Information, etc.)ꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏ12
1
TOKAI Holdings Corporation (3167) Financial Results for the Nine months Ended December 31, 2017
1. Qualitative Information on Financial Results for the Period Under Review
(1) Explanation of Consolidated Operating Performance
In the first nine months of the fiscal year ending March 31, 2021, the Japanese economy deteriorated rapidly as the novel coronavirus (COVID-19) pandemic caused stagnation in economic activity. Signs of improvement in personal consumption continue to be seen thanks primarily to various economic measures taken by the government in response to the pandemic. However, future outlook remains extremely uncertain due in part to the January 2021 declaration of an additional state of emergency in response to a third wave of COVID-19 infections.
Under these conditions, the TOKAI Group is setting into motion the fourth and final year of its medium-term management plan, Innovation Plan 2020 "JUMP." When conducting sales activities, we have implemented meticulous and careful measures that prioritize COVID-19 counterstrategies, customer and employee safety and security, and infection prevention. In tandem with these efforts, we have established new points of contact with customers by proactively adopting indirect sales methods that do not involve in-person meetings, including online business meetings and transmission of information. As a result, continuing customers had risen to 3,063,000 as of December 31, 2020, up 60,000 compared to its level on March 31, 2020. Meanwhile, TLC Membership Service members numbered 958,000, up 62,000.
As a result of these circumstances, the Group recorded sales of 139,792 million yen (-1.2% year on year) in the nine months ended December 31, 2020. The decline in sales occurred despite an increase in customer count due in part to a decrease in gas selling prices associated with a drop in procurement prices and lower renovation and facility equipment sales resulting from the COVID-19 pandemic. Meanwhile, all profit lines increased and achieved record-highs for the third consecutive year, thanks primarily to a rise in customer count; operating profit was 9,901 million yen (+6.7% year on year), recurring profit was 9,929 million yen (+4.8% year on year), and net income attributable to owners of the parent finished at 5,936 million yen (+16.3% year on year).
The Group is aiming to expand its earnings base by broadening its business area. During the nine months ended December 31, 2020, we pursued this target by establishing new sales bases for the LP gas business in Kasugai, Aichi Prefecture and Yokkaichi, Mie Prefecture in June 2020. Through our Construction, Equipment, and Real Estate segment, we acquired shares in Chuo Denki Koji Co., Ltd., an electrical construction company in Nagoya, Aichi Prefecture, and converted it into a consolidated subsidiary in August 2020. Later, in November of the same year, we added another consolidated subsidiary by acquiring shares in building maintenance business operator Inoue Technica Co., Ltd., which is located in Numazu, Shizuoka Prefecture. Moving forward, the Group will expand its operations by branching off into new areas and broadening its business domains. In addition to this move, we converted MIEN TRUNG GAS JOINT STOCK COMPANY and V-GAS PETROLEUM CORPORATION, two companies located in the Socialist Republic of Vietnam, into equity-method affiliates and successfully entered the Vietnamese LP gas market.
Performance by segment is indicated below. Effective from the start of the fiscal year ending March 31, 2021, we have changed the names of our reportable segments as follows: the "Gas and Petroleum" segment has become the "Energy" segment, and the "Building and Real Estate" segment has been renamed the "Construction, Equipment, and Real Estate" segment. These name changes do not accompany any impact on segment performance.
(Energy)
In the LP gas business, despite restrictions on in-person sales activities, customer count rose by 24,000 during the nine months ended December 31, 2020, reaching 676,000 customers thanks to the application of telemarketing and online sales activities. Notwithstanding the rise in customer count, sales declined to 45,135 million yen (-1.1% year on year) due to a decrease in selling prices linked with a drop in procurement prices and a lower volume of commercial gas sold.
In the city gas business, the number of customers was 61,000, mostly unchanged from its level as of March 31, 2020. However, sales fell to 8,301 million yen (-13.3% year on year) due in part to the same decline in selling prices (associated with the gas rate adjustment system) that affected the LP gas business.
As a result, segment sales were 53,437 million yen (-3.2% year on year) and segment operating profit was 2,996 million yen
2
TOKAI Holdings Corporation (3167) Financial Results for the Nine months Ended December 31, 2017
(+38.9% year on year).
(Construction, Equipment, and Real Estate)
In the Construction, Equipment, and Real Estate segment, sales were 14,815 million yen (-0.7% year on year) and operating profit came to 539 million yen (-24.0% year on year). The decline in performance was primarily due to lower renovation and facility equipment sales resulting from a delay in sales activities caused by the COVID-19 pandemic.
(CATV)
Through its CATV business, the Group carefully and steadily maintained its sales activities in accordance with the actual circumstances facing each region as a community-based service provider amid the COVID-19 crisis. As a result, our broadcasting services customer count increased to 871,000, up 10,000 from its level as of March 31, 2020, and our communications services customer count rose by 25,000 to 317,000.
Consequently, segment sales amounted to 24,994 million yen (+6.7% year on year) and segment operating profit was 3,740 million yen (+9.0% year on year).
(Information and Communications)
In the Information and Communications business for individual customers, the Group responded to intensifying competition from major mobile phone carriers and increasing communications services demand associated with the COVID-19 pandemic by enhancing set plans accompanying the Hikari Collaboration (including a high 30 GB storage capacity plan for LIBMO, a TOKAI- brand MVNO service) and acquiring customers through the Internet. Consequently, our total number of individual customers increased by a net 2,000 compared to March 31, 2020, after declining for the previous six fiscal years, and finished at 763,000 (conventional ISP customers fell by 2,000 to 711,000, and LIBMO customers rose by 4,000 to 52,000). As a result, sales were 19,801 million yen (-8.6% year on year).
Through its Information and Communications business for corporate clients, the Group achieved progress in the field of cloud services and captured demand associated with teleworking, both factors that led to recurring-revenue business expansion. As a result, sales came to 18,030 million yen (+5.0% year on year).
Due to the above factors, segment sales were 37,831 million yen (-2.6% year on year) and segment operating profit was 2,151 million yen (-11.4% year on year).
(Aqua)
The number of customers in the Aqua (bottled drinking water delivery) business was 162,000, up 1,000 from the number as of March 31, 2020 despite impact from self-imposed operational limitations at shopping malls and other commercial facilities. At the same time, the number of bottles sold per customer rose as a result of demand from consumers who refrained from going outdoors in response to the COVID-19 pandemic.
As a result, segment sales were 5,778 million yen (+3.1% year on year), but segment operating profit came to 333 million yen (-14.2% year on year), declining due primarily to a rise in logistical costs.
3
TOKAI Holdings Corporation (3167) Financial Results for the Nine months Ended December 31, 2017
(Others)
Turning to other businesses, sales in the nursing care business totaled 995 million yen (+9.9% year on year) thanks to contributions from Tender Co., Ltd. (Gero, Gifu Prefecture), which became a consolidated subsidiary during the previous fiscal year. Sales in the shipbuilding business fell to 991 million yen (-5.8% year on year) as a result of a decrease in the number of vessels repaired. Sales in the bridal events business declined to 322 million yen (-68.8% year on year) due to wedding ceremony postponements and the application of self-restraint associated with the holding of banquets in response to the COVID-19 pandemic.
As a result of these factors, segment sales were 2,934 million yen (-17.9% year on year) and segment operating loss was 120 million yen (versus operating profit of 186 million yen in the same period of the previous fiscal year).
- Explanation of Consolidated Financial Position
-
Assets, Liabilities, and Net Assets
As of December 31, 2020, total assets amounted to 172,946 million yen, up 2,973 million yen from March 31, 2020. This
increase occurred despite a 3,259 million-yen decrease in notes and accounts receivable-trade and was primarily due to an increase of 824 million yen in work in process caused mainly by a rise in the number of ongoing construction projects; a spike of 1,218 million yen in other current assets occurring mostly as a result of an increase in derivative valuations; a rise of 1,612 million yen in property, plant, and equipment resulting mainly from business acquisition; and an upturn of 1,344 million yen in the "other" account under "investments and other assets" caused primarily by the acquisition of shares in affiliated companies. Total liabilities stood at 102,104 million yen, down 1,885 million yen compared to March 31, 2020. This decline occurred despite an increase of 2,721 million yen in long-term loans payable and was primarily due to a decrease of 1,694 million yen in income taxes payable caused mostly by the payment of income taxes; a 1,161 million-yen drop in provision for loss on litigation resulting from the settlement of legal proceedings; and a downturn of 1,584 million yen in the "other provision" account under
"current liabilities" stemming mainly from the payment of bonuses.
Net assets totaled 70,841 million yen, up 4,858 million yen from March 31, 2020. This mainly reflected the booking of 5,936 million yen in net income attributable to owners of the parent and a 2,114 million yen increase in deferred gains on hedges, which were partially offset as the Company issued a 3,678 million-yen dividends of surplus.
2) Cash Flows
As of December 31, 2020, cash and cash equivalents stood at 4,912 million yen, up 866 million yen from March 31, 2020. Cash flows from all activities during the period under review and the factors behind them are as follows:
(Cash flows from operating activities)
Net cash provided by operating activities was 19,402 million yen, up 3,925 million yen from the same period of the previous fiscal year. Cash inflows stemming primarily from net income before income taxes, a decrease in notes and accounts receivable-trade, and depreciation (a non-cash item) exceeded cash outflows caused mainly by income taxes paid and a decrease in notes and accounts payable-trade.
(Cash flows from investing activities)
Net cash used in investing activities was 14,672 million yen, up 4,989 million yen from the same period of the previous fiscal year. The primary uses of cash were the purchase of tangible and intangible assets, the purchase of shares of subsidiaries and associates, and payments for the acquisition of businesses and purchase of shares of subsidiaries resulting in changes in the Company's scope of consolidation.
(Cash flows from financing activities)
Net cash used in financing activities was 3,863 million yen, down 915 million yen from the same period of the previous fiscal year. Primary contributing factors were repayments of loans payable and lease obligations and dividend payments that exceeded proceeds from long-term loans payable.
4
TOKAI Holdings Corporation (3167) Financial Results for the Nine months Ended December 31, 2017
(3) Explanation of Consolidated Earnings Forecast and Other Forward-Looking Information
Earnings results for the nine months ended December 31, 2020 were generally in line with forecast, and the Group maintains its consolidated earnings forecast for the fiscal year ending March 31, 2021, which was announced on May 8, 2020.
The earnings forecast is based on information currently available to the Company. Actual results may differ from the forecast due to a variety of factors.
5
TOKAI Holdings Corporation (3167) Financial Results for the Nine months Ended December 31, 2017
2. Quarterly Consolidated Financial Statements and Notes
(1) Quarterly Consolidated Balance Sheets
(Millions of yen) | ||||
Fiscal Year Ended | Nine Months Ended | |||
March 31, 2020 | December 31, 2020 | |||
Assets | ||||
Current assets | ||||
Cash and deposits | 4,629 | 5,353 | ||
Notes and accounts receivable-trade | 25,859 | 22,599 | ||
Merchandise and finished goods | 3,679 | 3,918 | ||
Work in process | 944 | 1,769 | ||
Raw materials and supplies | 930 | 1,079 | ||
Other | 8,623 | 9,841 | ||
Allowance for doubtful accounts | 399 | 384 | ||
Total current assets | 44,268 | 44,177 | ||
- | - | |||
Non-current assets | ||||
Property, plant and equipment | ||||
Buildings and structures, net | 34,256 | 34,131 | ||
Machinery, equipment and vehicles, net | 23,773 | 23,987 | ||
Land | 23,068 | 23,862 | ||
Other, net | 17,254 | 17,984 | ||
Total property, plant and equipment | 98,353 | 99,966 | ||
Intangible assets | ||||
Goodwill | 5,125 | 5,443 | ||
Other | 5,705 | 5,496 | ||
Total intangible assets | 10,831 | 10,939 | ||
Investments and other assets | ||||
Net defined benefit asset | 1,601 | 1,622 | ||
Other | 15,294 | 16,639 | ||
Allowance for doubtful accounts | 377 | 400 | ||
Total investments and other assets | 16,518 | 17,861 | ||
- | - | |||
Total non-current assets | 125,703 | 128,767 | ||
Deferred assets | 1 | 1 | ||
Total assets | 169,972 | 172,946 |
6
TOKAI Holdings Corporation (3167) Financial Results for the Nine months Ended December 31, 2017
(Millions of yen) | ||||
Fiscal Year Ended | Nine Months Ended | |||
March 31, 2019 | December 31, 2019 | |||
Liabilities | ||||
Current liabilities | ||||
Notes and accounts payable-trade | 15,034 | 14,249 | ||
Short-term loans payable | 19,921 | 20,339 | ||
Current portion of bonds | 118 | 98 | ||
Income taxes payable | 2,244 | 550 | ||
Provision for loss on litigation | 1,161 | - | ||
Other provision | 1,782 | 197 | ||
Other | 20,354 | 20,471 | ||
Total current liabilities | 60,617 | 55,906 | ||
Non-current liabilities | ||||
Bonds payable | 112 | 63 | ||
Long-term loans payable | 28,121 | 30,843 | ||
Other provision | 238 | 273 | ||
Net defined benefit liability | 876 | 920 | ||
Other | 14,024 | 14,096 | ||
Total non-current liabilities | 43,372 | 46,197 | ||
Total liabilities | 103,989 | 102,104 | ||
Net assets | ||||
Shareholders' equity | ||||
Capital stock | 14,000 | 14,000 | ||
Capital surplus | 25,542 | 25,542 | ||
Retained earnings | 26,426 | 28,684 | ||
Treasury stock | 2,221 | 2,219 | ||
Total shareholders' equity | 63,746 | 66,007 | ||
- | - | |||
Accumulated other comprehensive income | ||||
Valuation difference on available-for-sale securities | 290 | 849 | ||
Deferred gains (losses) on hedges | 883 | 1,230 | ||
- | 7 | |||
Foreign currency translation adjustment | 160 | |||
- | - | |||
Remeasurement of defined benefit plans | 1,449 | 1,408 | ||
Total accumulated other comprehensive income | 848 | 3,327 | ||
Non-controlling interests | 1,387 | 1,506 | ||
Total net assets | 65,982 | 70,841 | ||
Total liabilities and net assets | 169,972 | 172,946 |
7
TOKAI Holdings Corporation (3167) Financial Results for the Nine months Ended December 31, 2017
-
Quarterly Consolidated Statements of Income, Consolidated Statements of Comprehensive Income (Quarterly Consolidated Statements of Income)
(Nine Months Ended December 31, 2019)
(Millions of yen) | |||
Nine Months Ended | Nine Months Ended | ||
December 31, 2019 | December 31, 2020 | ||
(April 1, 2019 to | (April 1, 2020 to | ||
December 31, 2019) | December 31, 2020) | ||
Sales | 141,557 | 139,792 | |
Cost of sales | 84,254 | 80,147 | |
Gross profit | 57,302 | 59,645 | |
Selling, general and administrative expenses | 48,024 | 49,743 | |
Operating profit | 9,278 | 9,901 | |
Non-operating profit | |||
Interest income | 8 | 8 | |
Dividend income | 191 | 181 | |
Commission fee | 26 | 22 | |
Share of profit of entities accounted for using equity method | 92 | - | |
Other | 183 | 246 | |
Total non-operating profit | 503 | 459 | |
Non-operating expenses | |||
Interest expenses | 229 | 221 | |
Share of loss of entities accounted for using equity method | - | 137 | |
Other | 74 | 73 | |
Total non-operating expenses | 303 | 432 | |
Recurring profit | 9,478 | 9,929 | |
Extraordinary income | |||
Gain on sales of non-current assets | 14 | 56 | |
Gain on donation of non-current assets | - | 295 | |
Transmission line facility subsidies | 96 | 71 | |
Subsidy income | - | 66 | |
Gain on reversal of subscription rights to shares | 263 | 0 | |
Total extraordinary income | 374 | 490 | |
Extraordinary losses | |||
Loss on sales of non-current assets | 3 | 0 | |
Loss on retirement of non-current assets | 558 | 467 | |
Loss on sales of investment securities | 17 | 0 | |
Loss on valuation of investment securities | 30 | 148 | |
Provision for loss on litigation | 1,150 | 26 | |
Other | 77 | - | |
Total extraordinary losses | 1,839 | 643 | |
Quarterly net income before income taxes | 8,013 | 9,775 | |
Income taxes (current) | 2,799 | 2,591 | |
Income taxes (deferred) | -48 | 1,123 | |
Total income taxes | 2,751 | 3,715 | |
Quarterly net income | 5,262 | 6,060 | |
Quarterly net income attributable to non-controlling interests | 159 | 124 | |
Quarterly net income attributable to owners of the parent | 5,103 | 5,936 |
8
TOKAI Holdings Corporation (3167) Financial Results for the Nine months Ended December 31, 2017
(Consolidated Statements of Comprehensive Income)
(Nine Months Ended December 31, 2019)
(Millions of yen) | |||
Nine Months Ended | Nine Months Ended | ||
December 31, 2019 | December 31, 2020 | ||
(April 1, 2019 to | (April 1, 2020 to | ||
December 31, 2019) | December 31, 2020) | ||
Quarterly net income | 5,262 | 6,060 | |
Other comprehensive income | |||
Valuation difference on available-for-sale securities | 15 | 558 | |
Deferred gains (losses) on hedges | 442 | 2,114 | |
Foreign currency translation adjustment | 1 | 2 | |
Remeasurement of defined benefit plans, net of tax | -138 | 40 | |
- | |||
Share of other comprehensive income of entities accounted | -5 | - | |
151 | |||
for using the equity method | |||
Total other comprehensive income | |||
316 | - | ||
Quarterly comprehensive income | 5,579 | 8,538 | |
(Breakdown) | |||
Quarterly comprehensive income attributable to owners of | 5,420 | 8,415 | |
the parent | |||
Quarterly comprehensive income attributable to non- | 159 | 123 | |
controlling interests | |||
9
TOKAI Holdings Corporation (3167) Financial Results for the Nine months Ended December 31, 2017
(3) Quarterly Consolidated Statements of Cash Flows
(Millions of yen) | |||||
Nine Months Ended Nine Months Ended | |||||
December 31, 2019 December 31, 2020 | |||||
(April 1, 2019 to | (April 1, 2020 to | ||||
December 31, 2019) December 31, 2020) | |||||
Cash flows from operating activities | |||||
Quarterly net income before income taxes | 8,013 | 9,775 | |||
Depreciation | 10,681 | 10,957 | |||
Amortization of goodwill | 810 | 909 | |||
Impairment loss | - | 1,161 | |||
Increase (decrease) in net defined benefit asset and liability | -133 | - | 35 | ||
Interest and dividend income | -200 | 190 | |||
- | |||||
Loss (gain) on sales of investment securities | -245 | - | 0 | ||
Interest expenses | 229 | 221 | |||
(Gain) loss on sales of non-current assets | -10 | 56 | |||
(Gain) loss on valuation of investment securities | 30 | - | |||
148 | |||||
Loss on retirement of non-current assets | 558 | 467 | |||
Decrease (increase) in notes and accounts receivable - trade | 1,990 | 4,229 | |||
Decrease (increase) in inventories | -804 | 1,176 | |||
Increase (decrease) in notes and accounts payable - trade | -331 | - | 836 | ||
Other | 153 | -863 | |||
Subtotal | 20,741 | 24,115 | |||
Income taxes paid | -5,264 | 4,712 | |||
- | |||||
Net cash provided by (used in) operating activities | 15,476 | 19,402 | |||
Cash flows from investing activities | |||||
Interest and dividend income received | 238 | 226 | |||
Purchase of securities | -10 | -12 | |||
Proceeds from sales of securities | 576 | 70 | |||
Purchase of tangible and intangible assets | -8,947 | -9,965 | |||
Proceeds from sales of tangible and intangible assets | 164 | 300 | |||
Purchase of shares of subsidiaries resulting in change in scope of | -1,408 | -1,090 | |||
consolidation | |||||
Purchase of shares of subsidiaries and associates | 373 | 3,013 | |||
Payments for transfer of business | -189 | -1,630 | |||
Payments of loans receivable | - -20 | - | - | ||
Collection of loans receivable | 53 | 39 | |||
Other | -329 | 402 | |||
Net cash provided by (used in) investing activities | -9,683 | 14,672 | |||
- | |||||
Cash flows from financing activities | |||||
Interest expenses paid | -232 | 224 | |||
Net increase (decrease) in short-term loans payable | 3,450 | -325 | |||
Repayments of lease obligations | -2,706 | 3,029 | |||
- | |||||
Proceeds from long-term loans payable | 5,420 | 10,736 | |||
- | |||||
Repayment of long-term loans payable | -6,850 | 7,271 | |||
Redemption of bonds | -104 | - | 69 | ||
Payments for acquisition of treasury stock | -1 | - | 0 | ||
Proceeds from disposal of treasury shares | 0 | - | |||
- | |||||
Cash dividends paid | -3,672 | 3,671 | |||
Other | -82 | - | 6 | ||
Net cash provided by (used in) financing activities | -4,779 | 3,863 | |||
- | - | ||||
Effect of exchange rate change on cash and cash equivalents | -1 | 0 | |||
- | |||||
Net increase (decrease) in cash and cash equivalents | 1,013 | 866 | |||
Cash and cash equivalents at beginning of period | 4,018 | 4,046 | |||
Cash and cash equivalents at end of period | 5,032 | 4,912 |
10
TOKAI Holdings Corporation (3167) Financial Results for the Nine months Ended December 31, 2017
- Notes on Quarterly Consolidated Financial Statements (Notes on Going Concern Assumptions)
Not applicable.
(Notes on Significant Changes in Shareholders' Equity)
Not applicable.
(Additional Information)
(Resolution of important legal proceedings)
On January 16, 2020, the Tokyo High Court delivered an appellate ruling regarding the damage suit and countersuit between consolidated subsidiary and plaintiff (countersuit defendant) TOKAI Communications Corporation and defendant (countersuit plaintiff) Hitachi Solutions, Ltd. In response to this ruling, TOKAI Communications Corporation filed a petition for acceptance of final appeal with the Supreme Court. However, the Supreme Court rejected this petition on October 20, 2020. Due to this decision from the Supreme Court, the appellate ruling from the Tokyo High Court, which requires TOKAI Communications Corporation to pay Hitachi Solutions, Ltd. 766 million yen in monetary damages as well as corresponding delinquent charges, will stand as final.
In the fiscal year ended March 31, 2020, the Company recorded a 1,161 million-yen provision for loss on litigation to insure against a possible finalization of the appellate ruling delivered by the Tokyo High Court on January 16, 2020. Despite this protective measure, the Company reported an extraordinary loss of 26 million yen in the first nine months of the fiscal year ending March 31, 2021 in connection with this ruling.
11
TOKAI Holdings Corporation (3167) Financial Results for the Nine months Ended December 31, 2017
(Segment Information, etc.) | ||||||||||||||
[Segment Information] | ||||||||||||||
I. Nine Months Ended December 31, 2019 (April 1, 2019 to December 31, 2019) | ||||||||||||||
Sales and Income of Losses by Reportable Segment | (Millions of yen) | |||||||||||||
Reportable segments | Amount in | |||||||||||||
Building | Information | quarterly | ||||||||||||
and | Other1 | Total | Adjustments2 | consolidated | ||||||||||
Energy | equipment | CATV | Communi- | Aqua | Subtotal | statements of | ||||||||
real estate | cations | Income3 | ||||||||||||
Sales | ||||||||||||||
Sales to | ||||||||||||||
external | 55,191 | 14,919 | 23,433 | 38,834 | 5,603 | 137,982 | 3,575 | 141,557 | - | 141,557 | ||||
customers | -4,242 | |||||||||||||
Intersegment | ||||||||||||||
sales and | 130 | 750 | 507 | 2,593 | 127 | 4,109 | 132 | 4,242 | - | |||||
transfers | ||||||||||||||
Subtotal | 55,322 | 15,669 | 23,940 | 41,428 | 5,730 | 142,091 | 3,708 | 145,799 | 4,242 | 141,557 | ||||
Segment income | 2,156 | 709 | 3,432 | 2,429 | 389 | 9,117 | 186 | 9,303 | - | 24 | 9,278 | |||
(loss) | ||||||||||||||
(Notes) 1. The "Other" category is a business segment not included in the reportable segments. This category includes | businesses such as weddings, | |||||||||||||
- |
ship repair, insurance, and nursing care.
- Adjustments to segment income (loss) are mainly eliminations due to intersegment transactions.
- Segment income (loss) is adjusted to match operating profit in the quarterly consolidated statements of income.
II. Nine Months Ended December 31, 2020 (April 1, 2020 to December 31, 2020)
Sales and Income of Losses by Reportable Segment
(Millions of yen) | ||||||||||||
Reportable segments | Amount in | |||||||||||
Building | Information | quarterly | ||||||||||
and | Aqua | Subtotal | Other1 | Total | Adjustments2 | consolidated | ||||||
Energy | equipment | CATV | Communi- | statements of | ||||||||
real estate | cations | Income3 | ||||||||||
Sales | ||||||||||||
Sales to | ||||||||||||
external | 53,437 | 14,815 | 24,994 | 37,831 | 5,778 | 136,857 | 2,934 | 139,792 | - | 139,792 | ||
customers | -4,176 | |||||||||||
Intersegment | ||||||||||||
sales and | 151 | 700 | 456 | 2,630 | 139 | 4,077 | 98 | 4,176 | - | |||
transfers | ||||||||||||
Subtotal | 53,588 | 15,516 | 25,450 | 40,461 | 5,917 | 140,935 | 3,033 | 143,969 | 4,176 | 139,792 | ||
Segment income | 2,996 | 539 | 3,740 | 2,151 | 333 | 9,760 | 120 | 9,640 | - 260 | 9,901 | ||
(loss) | ||||||||||||
(Notes) 1. The "Other" category is a business segment not included in the reportable | segments. This category includes businesses such as weddings, | |||||||||||
- |
ship repair, insurance, and nursing care.
- Adjustments to segment income (loss) are mainly eliminations due to intersegment transactions.
- Segment income (loss) is adjusted to match operating profit in the quarterly consolidated statements of income.
12
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Tokai Holdings Corporation published this content on 03 February 2021 and is solely responsible for the information contained therein. Distributed by Public, unedited and unaltered, on 03 February 2021 09:21:04 UTC.