Meitec : Financial Results (393KB)

(Note) This document has been translated from the Japanese original for reference purposes only. In the event of any discrepancy between this translation and the Japanese original, the original shall prevail.

Consolidated Financial Report

For the Six Months Ended September 30, 2022

						October 27, 2022
					Company Name:	Meitec Corporation
					Representative:	Hideyo Kokubun
						President, Group CEO
					Code No.:	9744 TSE Prime Market
					[Fractions of one million yen are rounded down]
1. Consolidated Results for the 2nd Quarter (April 1, 2022 to September 30, 2022)
(1) Consolidated operating results				(% is comparison to the previous fiscal year)
	Net Sales		Operating Profit	Ordinary Profit	Profit Attributable to
		Owners of Parent
	Millions of Yen	％	Millions of Yen	％	Millions of Yen	％ Millions of Yen	％
Six months ended September 30, 2022	58,029	14.0	7,584	42.1	7,635	41.2	5,107	43.9
Six months ended September 30, 2021	50,915	8.1	5,336	9.4	5,405	10.1	3,549	13.1

(Note) Comprehensive Income;	Six months ended September 30, 2022:		5,186	million yen	[ 40.9% ]
	Six months ended September 30, 2021:		3,680	million yen	[ 12.6% ]
	Earnings per Share	Diluted Net Income
		per Share
	Yen			Yen
Six months ended September 30, 2022	63.74			－
Six months ended September 30, 2021	43.48			－
(Note) The Company conducted a	share split with a ratio of three shares for one share of common stock on July 1, 2022.
Earnings per share is calculated assuming the share split to have been conducted at the start of the previous fiscal year.
(2) Consolidated financial position
	Total Assets		Net Assets		Equity Ratio
	Millions of Yen		Millions of Yen		%
As of September 30, 2022	81,747		46,761		57.2
As of March 31, 2022	81,590		45,287		55.5
Reference: Shareholders' Equity;	as of September 30, 2022:	46,761	million yen
	as of March 31, 2022:		45,287	million yen

2. Dividends

			Annual Dividends per Share
	1st Quarter		2nd Quarter	3rd Quarter		Year-end	Total
	Yen		Yen	Yen		Yen	Yen
FY ended March 31, 2022	―		78.50	―		139.00	217.50
FY ending March 31, 2023	―		39.00
FY ending March 31, 2023 (Forecast)			―	―		45.00	84.00
(Note) Revision of dividends forecast from recent forecast:	None

The Company implemented a stock split on July 1, 2022 at a ratio of 3 shares to 1 share of common shares. For the fiscal year ended March 31, 2022, the actual amount of dividends per share before the stock split is stated.

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(Note) This document has been translated from the Japanese original for reference purposes only. In the event of any discrepancy between this translation and the Japanese original, the original shall prevail.

3. Consolidated Forecasts for Fiscal Year ending March 31, 2023

(% is comparison to the same period of previous fiscal year)

Operating

Ordinary

Profit Attributable

Earnings

Net Sales

to Owners of

Profit

Profit

per Share

Parent

Millions of

%

Millions of

%

Millions of

%

Millions of

%

Yen

Yen

Yen

Yen

Yen

FY ending March 31, 2023

119,500

11.5

15,800

23.3

15,900

22.8

10,900

18.0

136.04

(Note) Revision of performance forecast from recent forecast:

Yes

The Company implemented a stock split on July 1, 2022 at a ratio of 3 shares to 1 share of common shares.

The consolidated earnings per share forecast for the fiscal year ending March 31, 2023, takes into account the effects of the stock split.

Notes to Financial Statements

1. Significant changes involving subsidiaries during the term: None (Changes in specific subsidiaries that affected the scope of consolidation)
2. Adoption of special accounting treatment for preparing quarterly consolidated financial statements: Yes
3. Changes in accounting policies, changes in accounting estimates, and restatements

i. Change in accounting policies :	Yes
ii. Changes not relating to i. :	None
iii. Changes in accounting estimates :	None
iv. Restatements :	None

(Note) For more details, please refer to (3) Notes to Quarterly Financial Statements (Changes in Accounting Policies) of 2. Consolidated Financial Statements on page 6.

1. Number of shares issued (common stock)
2. 1. Number of shares issued at the fiscal year end (including treasury shares)

2nd quarter ended September 30, 2022:	84,300,000
FY ended March 31, 2022:	84,300,000
ii. Number of treasury shares at the fiscal year end
2nd quarter ended September 30, 2022:	4,174,487
FY ended March 31, 2022:	4,174,062

iii. Average number of shares outstanding during the period

2nd quarter ended September 30, 2022:	80,125,676
2nd quarter ended September 30, 2021:	81,628,803

(Note) The Company conducted a share split with a ratio of three shares for one share of common stock on July 1, 2022.

Number of shares issued at the fiscal year end, number of treasury shares at the fiscal year end, and average number of shares outstanding during the period have been calculated assuming the share split to have been conducted at the start of the previous fiscal year.

• This report is not included in the scope of the audit or the certified public accountant.
• Advice relating to appropriate use of financial forecasts and other relevant information

Earnings forecasts and other forward-looking statements in this release are based on data currently available to management and certain assumptions that management believes are reasonable, and it is not intended to promise its achievement. Actual results may therefore differ materially from these statements for various reasons. Some important factors that might have an effect on business performance pertain to Business Risks stated in the Company's annual securities report and other information already released, but factors influencing business performance are not limited to those released.

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(Note) This document has been translated from the Japanese original for reference purposes only. In the event of any discrepancy between this translation and the Japanese original, the original shall prevail.

1. Qualitative Information on the Consolidated Results for the 2nd Quarter

During the first half of the current fiscal year (the six months from April 1, 2022 to September 30, 2022), restrictions on economic activity caused by the impact of COVID-19 were eased, and the shift towards a new stage of coexistence with COVID-19 brought about a moderate recovery in business conditions. However, the economic outlook remained uncertain due to a tense international situation, increases in the prices of resources, further depreciation of the yen, and other factors.

As a result of investment in technological development focused on the next generation of products by the leading manufacturers that constitute the Company's major clients, the order environment was strong.

Under these circumstances, as a result of the Company continuing proactive recruitment with an eye on medium- and long-term growth, the number of engineers (total for MT and MF) as of September 30, 2022, increased to 12,073 (up 798, or 7.1% compared to September 30, 2021), including 885 (MT: 474, MF: 411) new employees joining the Group in April 2022. In addition, the number of engineers assigned to clients increased as a result of since the utilization ratio recovered from the second half of the previous fiscal year, this fiscal year started at a higher level than the previous year, and an improvement in the pace of assignments for new employees year on year.

As a result, consolidated net sales for the period under review increased ¥7,114 million, or 14.0%, from a year earlier to ¥58,029 million. Consolidated cost of sales increased ¥4,282 million, or 11.2%, from a year earlier to ¥42,357 million, due mainly to an increase in labor expenses associated with the growth in the number of engineers. Consolidated selling, general and administrative expenses increased ¥584 million, or 7.8%, from a year earlier to ¥8,088 million, due mainly to an increase in hiring-related expenses. As a result, consolidated operating profit increased ¥2,247 million, or 42.1%, from a year earlier to ¥7,584 million.

Consolidated ordinary profit increased ¥2,229 million, or 41.2% from a year earlier to ¥7,635 million. Profit attributable to owners of parent increased ¥1,557 million, or 43.9% from a year earlier to ¥5,107 million.

For details, please refer to the "Results for the 2nd Quarter of the Fiscal Year Ending March 31, 2023" released today on the Company's website.

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2．Consolidated Financial Statements

(1)Consolidated Balance Sheets

		(Millions of Yen)
	Fiscal year ended	The 2nd Quarter ended
	Mar. 31, 2022	Sep. 30, 2022
Assets
Current assets
Cash and deposits	49,706	49,128
Notes and accounts receivable - trade	16,098	16,425
Work in process	178	275
Other	954	1,403
Allowance for doubtful accounts	(0)	(0)
Total current assets	66,937	67,233
Non-current assets
Property, plant and equipment
Buildings and structures, net	3,271	3,204
Other, net	1,731	1,691
Total property, plant and equipment	5,002	4,895
Intangible assets
Other	345	352
Total intangible assets	345	352
Investments and other assets
Deferred tax assets	8,458	8,423
Other	848	845
Allowance for doubtful accounts	(2)	(2)
Total investments and other assets	9,304	9,266
Total non-current assets	14,652	14,513
Total assets	81,590	81,747
Liabilities
Current liabilities
Income taxes payable	3,310	2,537
Provision for bonuses for directors (and other officers)	238	130
Provision for bonuses	8,861	8,949
Other	7,259	6,473
Total current liabilities	19,669	18,090
Non-current liabilities
Retirement benefit liability	16,633	16,895
Total non-current liabilities	16,633	16,895
Total liabilities	36,302	34,986
Net assets
Shareholders' equity
Share capital	5,000	5,000
Capital surplus	3,627	3,627
Retained earnings	44,865	46,259
Treasury shares	(7,035)	(7,036)
Total shareholders' equity	46,457	47,850
Accumulated other comprehensive income
Revaluation reserve for land	(662)	(662)
Remeasurements of defined benefit plans	(506)	(426)
Total accumulated other comprehensive income	(1,169)	(1,089)
Total net assets	45,287	46,761
Total liabilities and net assets	81,590	81,747

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（2）Consolidated Statements of Income and Comprehensive Income

(Consolidated Statements of Income)

		(Millions of Yen)
	The 2nd Quarter ended	The 2nd Quarter ended
	Sep. 30, 2021	Sep. 30, 2022
Net sales	50,915	58,029
Cost of sales	38,074	42,357
Gross profit	12,840	15,672
Selling, general and administrative expenses	7,503	8,088
Operating profit	5,336	7,584
Non-operating income
Interest income	0	0
Subsidy income	63	45
Other	6	6
Total non-operating income	70	52
Non-operating expenses
Commitment fees	1	1
Other	0	0
Total non-operating expenses	1	1
Ordinary profit	5,405	7,635
Extraordinary losses
Loss on retirement of non-current assets	0	0
Impairment losses	4	－
Total extraordinary losses	4	0
Profit before income taxes	5,401	7,635
Income taxes	1,852	2,527
Profit	3,549	5,107
Profit attributable to owners of parent	3,549	5,107
(Consolidated Statements of Comprehensive Income)		(Millions of Yen)
	The 2nd Quarter ended	The 2nd Quarter ended
	Sep. 30, 2021	Sep. 30, 2022
Profit	3,549	5,107
Other comprehensive income
Remeasurements of defined benefit plans, net of tax	131	79
Total other comprehensive income	131	79
Comprehensive income	3,680	5,186
Comprehensive income attributable to
Comprehensive income attributable to owners of parent	3,680	5,186

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