Summary of Consolidated Financial Results for the Fiscal Year Ended March 31, 2023 | |||||||||||
May 12, 2023 | |||||||||||
Company Name : | MARUBUN CORPORATION | ||||||||||
Listing : | Tokyo Stock Exchange | ||||||||||
Securities Code : | 7537 | ||||||||||
URL : | https://www.marubun.co.jp | ||||||||||
Representative : | Toru Iino, CEO and Representative Director | ||||||||||
Contact : | Toshihiro Shibuya, Officer, Director, Corporate Planning Dept. | ||||||||||
TEL : | +81-3-3639-3010 | ||||||||||
Preparation of supplementary material : | Yes | ||||||||||
Holding of investor meeting : | Yes | ||||||||||
1. Consolidated Financial Results for the Fiscal Year Ended March 31, 2023 (April 1,2022 - March 31,2023) | |||||||||||
(1) Consolidated | Operating Results | ||||||||||
Net Sales | Operating Income | Ordinary Income | Profit Attributable | ||||||||
to Owners of Parent | |||||||||||
Millions of Yen | % | Millions of Yen | % | Millions of Yen | % | Millions of Yen | % | ||||
Year ended March 31, 2023 | 226,171 | 34.8 | 10,997 | 83.5 | 7,909 | 92.6 | 5,201 | 113.4 | |||
Year ended March 31, 2022 | 167,794 | - | 5,994 | - | 4,106 | - | 2,437 | - |
(Note) | |||||||
Comprehensive income | |||||||
Year ended March 31, 2023 | 7,259 | Millions of Yen | [115.9%] | ||||
Year ended March 31, 2022 | 3,361 | Millions of Yen | [-%] | ||||
Earnings per Share | Earnings Per Share | Ratio of Net Income to | Ratio of Ordinary Income to | Ratio of operating income to | |||
-Basic- | -Diluted- | Shareholders' Equity | Total Assets | net sales | |||
Yen | Yen | % | % | % | |||
Year ended March 31, 2023 | 199.04 | - | 11.5 | 4.9 | 4.9 | ||
Year ended March 31, 2022 | 93.26 | - | 5.9 | 3.0 | 3.6 | ||
(Reference) | |||||||
Share of profit of entities accounted for using equity method | |||||||
Year ended March 31, 2023 | 258 | Millions of Yen | |||||
Year ended March 31, 2022 | 104 | Millions of Yen | |||||
(2) Financial Position | |||||||
Total Assets | Total Net Assets | Equity Ratio | Net Assets per Share | ||||
Millions of Yen | Millions of Yen | % | Yen | ||||
Year ended March 31, 2023 | 175,998 | 53,084 | 27.1 | 1,826.99 | |||
Year ended March 31, 2022 | 148,179 | 47,574 | 28.8 | 1,634.26 | |||
(Reference) | |||||||
Tangible net worth | |||||||
Year ended March 31, 2023 | 47,747 | Millions of Yen | |||||
Year ended March 31, 2022 | 42,711 | Millions of Yen | |||||
(3) Cash Flows | |||||||
Net Cash flow from | Net Cash flow from | Net Cash flow from | Cash and Cash Equivalents | ||||
Operating Activities | Investing Activities | Financing Activities | at End of Fiscal Year | ||||
Millions of Yen | Millions of Yen | Millions of Yen | Millions of Yen | ||||
Year ended March 31, 2023 | (18,981) | (326) | 14,071 | 20,658 | |||
Year ended March 31, 2022 | (2,948) | 145 | 391 | 24,693 |
2. Dividends
Dividend Per Share | Total dividends | Dividends Payout | Dividends on Net | |||||||
(annual) | ratio | Assets | ||||||||
1st Quarter | 2nd Quarter | 3rd Quarter | Year-end | Annual | ||||||
(Consolidated) | (Consolidated) | |||||||||
Yen | Yen | Yen | Yen | Yen | Millions of Yen | % | % | |||
Year ended March 31, 2022 | - | 10.00 | - | 20.00 | 30.00 | 784 | 32.2 | 1.9 | ||
Year ended March 31, 2023 | - | 20.00 | - | 60.00 | 80.00 | 2,090 | 40.2 | 4.6 | ||
Year ending March 31, 2024 | - | 25.00 | - | 25.00 | 50.00 | 43.6 | ||||
(Forecast) | ||||||||||
3. Consolidated Financial Forecasts for the Fiscal Year Ending March 31, 2023 (April 1,2023 - March 31,2024)
Net Sales | Operating Income | Ordinary Income | Profit Attributable | Earnings per Share | |||||
to Owners of Parent | -Basic- | ||||||||
Millions of Yen | % | Millions of Yen | % | Millions of Yen | % | Millions of Yen | % | Yen | |
Six months ending | 113,500 | 12.3 | 3,400 | (35.5) | 1,300 | 14.5 | 645 | 37.4 | 24.68 |
September 30, 2023 | |||||||||
Year ending March 31, 2024 | 236,000 | 4.3 | 8,750 | (20.4) | 5,000 | (36.8) | 3,000 | (42.3) | 114.79 |
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1.Management's discussion and analysis of results of operations
During the consolidated fiscal year under review (April 1, 2022 to March 31, 2023), the Japanese economy showed signs of a recovery in consumer spending, capital investment, and employment with progress in initiatives for promoting economic activities, while also tackling the COVID-19 pandemic. On the other hand, the future outlook remained uncertain, mainly reflecting the impacts of surges in resource prices and the acceleration of inflation associated with the protracted Ukraine crisis, sharp foreign exchange rate fluctuations and interest rate rises, as well as the US-China trade conflict.
In the electronics sector, in which the Marubun Group (the "Group") operates, demand for products for industrial equipment and vehicles remained strong, mainly reflecting the digitalization of society, use of AI, shift to EVs, and electrification of cars, although the smartphone and PC markets were stagnant. In addition, in the semiconductor market, polarization progressed in terms of the product supply-demand balance. While the supply shortage was being eliminated due to supply chain normalization, inventory adjustment occurred in a rebound from the inventory accumulation.
In this situation, consolidated net sales of the Group during the fiscal year under review increased 34.8% year on year, to 226,171 million yen, reflecting the increase in demand for semiconductor and electronic components for consumer equipment and industrial equipment. On the profit side, operating profit increased 83.5% year on year, to 10,997 million yen, reflecting increased sales and a boost in yen-based gross profit in the Electronic Devices Business against the backdrop of the yen's weakness in exchange markets from the beginning of the fiscal year under review. Looking at non-operating income and expenses, interest expenses increased 1,663 million yen year on year due to the rise in the US dollar interest rate. In addition, foreign exchange losses of 1,043 million yen were posted as settlement losses were generated during the fiscal year due to the repayment of borrowings in foreign currency, which resulted from the depreciation of the yen that had continued since the beginning of the fiscal year. As a result, ordinary profit increased 92.6% year on year, to 7,909 million yen, and profit attributable to owners of parent increased 113.4% year on year, to 5,201 million yen.
Operating results by business segment are as follows:
Starting from the consolidated fiscal year under review, the Company changed the classification of reporting segments. With respect to comparisons with results for the same period of the previous year, comparisons and analyses were made based on figures for a year before being reclassified into revised segments.
(Electronic Devices Business)
In the Electronic Devices Business, semiconductors for consumer equipment grew significantly due to the acquisition of new commercial rights. In addition, demand for products for data centers and vehicles also increased given the strong showing of semiconductors and electronic components for industrial equipment, mainly including industrial robots. As a result, net sales increased 43.8% year on year, to 168,872 million yen. Segment profit increased 134.2% year on year, to 8,521 million yen, attributable to an increase in sales and higher gross profit on a yen conversion basis against the backdrop of the depreciation of the yen that had continued.
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(Electronic Systems Business)
In the Electronic Systems Business, with continuation of capital investment for the manufacturing of semiconductors and electronic components, demand for devices for mounting, inspecting, and analyzing electronic components increased in the industrial equipment field, and sales of diagnostic imaging equipment grew in the medical equipment field. In addition, LED light sources remained strong in the laser equipment field while sales of electronic equipment increased in the field of space and defense electronics. Consequently, net sales stood at 54,494 million yen, an increase of 13.0% from the same period of the previous year. Segment profit increased 19.5% year on year, to 2,438 million yen, due to an increase in sales.
(Electronic Solutions Business)
In the Electronic Solutions Business, net sales increased 32.3% year on year, to 2,805 million yen, attributable to an increase in demand for commercial products related to optical transmission for communications infrastructure. On the other hand, segment profit declined 86.6% year on year, to 42 million yen, due to a decline in the gross profit ratio and an increase in selling, general and administrative expenses.
2. Summary of consolidated financial conditions for the fiscal year under review
(Assets)
Current assets at the end of the consolidated fiscal year under review stood at 166,143 million yen, up 28,538 million yen from the end of the previous fiscal year. This result was mainly attributable to increases in merchandise and finished goods of 24,245 million yen and notes and accounts receivable - trade of 13,429 million yen, which more than offset decreases of 6,173 million yen in accounts receivable - other and 3,991 million yen in cash and deposits. Non-current assets amounted to 9,855 million yen, decreasing 719 million yen from the end of the previous consolidated fiscal year. This result was mainly attributable to a decrease of 534 million yen in deferred tax assets. As a result, total assets increased by 27,818 million yen from the end of the previous fiscal year to 175,998 million yen.
(Liabilities)
Current liabilities at the end of the consolidated fiscal year under review came to 117,089 million yen, an increase of 22,342 million yen from the end of the previous fiscal year. This was largely due to increases of 20,751 million yen in short-term borrowings and 6,884 million yen in notes and accounts payable - trade, more than offsetting a decrease of 7,116 million yen in accounts payable - other. Non-current liabilities amounted to 5,824 million yen, a decrease of 33 million yen from the end of the previous fiscal year. This was primarily attributable to a decrease of 25 million yen in long-term borrowings. As a result, total liabilities increased by 22,308 million yen from the end of the previous fiscal year, to 122,913 million yen.
(Net assets)
Net assets totaled 53,084 million yen, up 5,509 million yen from the end of the previous fiscal year. This was a result, in large part, of increases of 4,156 million yen in retained earnings and 1,032 million yen in foreign currency translation adjustment. Consequently, the equity ratio as at the end of the period stood at 28.8%, down 1.7 points
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from the 27.1% recorded at the end of the previous fiscal year.
3. Summary of consolidated statements of cash flows for the fiscal year under review
Cash and cash equivalents on a consolidated basis at the end of the fiscal year under review (hereinafter "cash") decreased 4,034 million yen compared to the end of the previous fiscal year (down 16.3% year on year), to 20,658 million yen. The decrease was mainly attributable to a decrease in accounts payable - other and an increase in trade receivables, more than offsetting a decrease in accounts receivable - other and an increase in trade payables. The status and primary contributing factors for each cash flows category were as follows:
(Cash flows from operating activities)
Cash used in operating activities stood at 18,981 million yen (compared with cash of 2,948 million yen used in the previous fiscal year). This mainly reflected an increase in inventories of 23,771 million yen, offsetting a decrease of 6,173 million yen in accounts receivable - other.
(Cash flows from investing activities)
Cash used in investing activities stood at 326 million yen (compared with cash of 145 million yen provided in the previous fiscal year). The major factor included outflows of 610 million yen from payments into time deposits and 167 million yen from purchase of intangible assets, offsetting an inflow of 588 million yen as proceeds from withdrawal of time deposits.
(Cash flows from financing activities)
Cash provided by financing activities stood at 14,071 million yen (compared with cash of 391 million yen provided in the previous fiscal year). This was mainly attributable to a net increase in short-term borrowings of 15,950 million yen, offsetting dividends paid of 1,043 million yen and dividends paid to non-controlling interests of 704 million yen.
(Reference) Trends in cash flow-related indicators
Year ended | Year ended | Year ended | Year ended | Year ended | |
March 31, 2019 | March 31, 2020 | March 31, 2021 | March 31, 2022 | March 31, 2023 | |
Equity ratio (%) | 33.9 | 32.2 | 31.5 | 28.8 | 27.1 |
Equity ratio based | 13.0 | 9.5 | 10.9 | 12.6 | 20.3 |
on market value (%) | |||||
Ratio of interest-bearing | 23.9 | - | 3.1 | - | - |
debt to cash flow (year) | |||||
Interest coverage | 2.0 | - | 38.9 | - | - |
ratio (times) | |||||
Equity ratio: Equity / Total assets | |||||
Market value-based equity ratio: Market capitalization / Total assets |
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Ratio of interest-bearing debt to cash flow: Interest-bearing debt / Cash flows
Interest coverage ratio: Cash flows / Interest expenses paid
(Note 1) Each indicator is calculated based on consolidated financial figures.
(Note 2) Market capitalization is calculated based on the number of shares outstanding excluding treasury shares.
(Note 3) Cash flow refers to cash flows from operating activities.
(Note 4) Interest-bearing debt includes all liabilities on the consolidated balance sheet, of which interest payments have been made.
(Note 5) Ratio of interest-bearing debt to cash flow and interest coverage ratio for the fiscal year ended March 31, 2020, fiscal year ended March 31, 2022, and fiscal year ended March 31, 2023 are not indicated because cash was used in operating activities in these years.
4. Future outlook
In the fiscal year ending March 31, 2024, an economic recovery is expected under the policy of living with COVID-19. However, conditions are expected to remain challenging due to factors that make it difficult to forecast the future, including geopolitical risks such as the protracted Ukraine crisis and US control and regulation of exports to China, as well as trends in the exchange market and financial markets.
In the electronics sector, where the Company operates, the market is expected to continue expanding, despite the ongoing semiconductor inventory adjustment, mainly reflecting growth in the use of AI, progress in digitalization, and greening initiatives in markets that include the automotive, industrial, and infrastructure sectors.
In this business environment, regarding the business performance of the Company, a reduction in industrial equipment is expected in the Electronic Systems Business given a slowdown in corporate capital investment, but the Company forecasts an increase in demand for semiconductors and electronic components in the Electronic Devices Business reflecting the acquisition of new commercial rights and the growth of medical solutions in the Electronic Solutions Business.
In light of the foregoing, the Group expects to achieve net sales of 236,000 million yen, up 4.3% year on year, for the fiscal year ending March 31, 2024. This is expected to result in a year-on-year increase in gross profit, excluding the impact of exchange rate fluctuations. However, further increases in interest expenses associated with a rise in the US dollar interest rate is expected in the current fiscal year, while also recognizing the effect of the depreciation of the yen in boosting the yen-based gross profit that existed in the previous fiscal year. Reflecting these factors, the Group expects operating profit to decrease 20.4% year on year, to 8,750 million yen, ordinary profit to decrease 36.8% year on year, to 5,000 million yen, and profit attributable to owners of parent to decrease 42.3% year on year, to 3,000 million yen.
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Marubun Corporation published this content on 19 May 2023 and is solely responsible for the information contained therein. Distributed by Public, unedited and unaltered, on 19 May 2023 04:49:08 UTC.