Mitani Sangyo : Summary of Consolidated Financial Results for the Six Months Ended September 30, 2023 153.37 KB

Translation

Notice: This document is an excerpt translation of the original Japanese document and is only for reference purposes. In the event of any discrepancy between this translated document and the original Japanese document, the latter shall prevail.

Summary of Consolidated Financial Results for the Six Months Ended September 30, 2023 (Based on Japanese GAAP)

October 27, 2023

Company name:

MITANI SANGYO CO., LTD.

Stock exchange listing: Tokyo, Nagoya

Stock code:

8285

URL

https://www.mitani.co.jp/

Representative:

President & CEO

Tadateru Mitani

Inquiries:

Director & CFO

Daigou Uchida

TEL [phone]

Scheduled date to file Quarterly Securities Report:

November 7, 2023

Scheduled date to commence dividend payments:

December 4, 2023

Preparation of supplementary material on quarterly financial results:

Yes

Holding of quarterly financial results meeting:

No

(Amounts less than one million yen are rounded down)

1. Consolidated financial results for the six months ended September 30, 2023 (from April 1, 2023 to September 30, 2023)

(1) Consolidated operating results (cumulative)

Percentages indicate year-on-year changes

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, 2023

45,904

5.4

804

-

1,182

236.6

873

809.0

Six months ended September 30, 2022

43,545

9.5

(42)

-

351

(49.3)

96

(67.8)

Earnings per share

Diluted earnings per share

Yen

Yen

Six months ended September 30, 2023

14.19

-

Six months ended September 30, 2022

1.56

-

(2) Consolidated financial position

Total assets

Net assets

Equity ratio

Net assets per share

Millions of yen

Millions of yen

%

Yen

As of September 30, 2023

91,313

44,264

48.3

716.75

As of March 31, 2023

86,309

41,612

48.1

673.81

2. Cash dividends
		Annual dividends per share
	1st quarter-end	2nd quarter-end	3rd quarter-end	Fiscal year-end
	Yen	Yen	Yen	Yen
Year ended March 31, 2023	-	4.50	-	4.50
Year ending March 31, 2024	-	4.50
Year ending March 31, 2024 (Forecast)			-	4.50

Total

Yen 9.00

9.00

3. Forecast of consolidated financial results for the year ending March 31, 2024 (from April 1, 2023 to March 31, 2024)

Percentages indicate year-on-year changes

	Net sales		Operating profit		Ordinary profit		Profit attributable to	Earnings per share
				owners of parent
	Millions of yen	%	Millions of yen		%	Millions of yen		%	Millions of yen		%	Yen
Full year	92,000	1.8	1,050		7.3	1,550		(9.7)	1,000		4.1	16.24

1

4. Notes

1. Changes in significant subsidiaries during the six months ended September 30, 2023 (changes in specified subsidiaries resulting in the change in scope of consolidation):
2. Application of special accounting methods for preparing quarterly consolidated financial statements:

No

Yes

(3) Changes in accounting policies, changes in accounting estimates, and restatement of prior period financial statements
Changes in accounting policies due to revisions to accounting standards and other regulations:	No
Changes in accounting policies due to other reasons:	No
Changes in accounting estimates:	No
Restatement of prior period financial statements:	No

(4) Number of issued shares (common shares)

Total number of issued shares at the end of the period (including treasury shares)

	As of September 30, 2023	61,772,500	shares	As of March 31, 2023	61,772,500	shares
Number of treasury shares at the end of the period
	As of September 30, 2023	202,075	shares	As of March 31, 2023	202,055	shares
Average number of shares during the period (cumulative from the beginning of the fiscal year)
	Six months ended September 30, 2023	61,570,436	shares	Six months ended September 30, 2022	61,570,476	shares

2

Quarterly consolidated financial statements

Consolidated balance sheets

		(Millions of yen)
	As of March 31, 2023	As of September 30, 2023
Assets
Current assets
Cash and deposits	7,531	7,607
Notes and accounts receivable - trade	16,399	17,036
Electronically recorded monetary claims - operating	3,151	3,556
Accounts receivable from completed construction	6,974	7,729
contracts
Merchandise and finished goods	3,834	3,835
Work in process	631	596
Costs on construction contracts in progress	135	161
Raw materials and supplies	1,518	1,640
Other	2,141	2,525
Allowance for doubtful accounts	(22)	(26)
Total current assets	42,296	44,664
Non-current assets
Property, plant and equipment
Buildings and structures, net	9,554	9,367
Land	4,041	4,041
Other, net	2,713	3,000
Total property, plant and equipment	16,310	16,409
Intangible assets
Software	707	682
Other	395	449
Total intangible assets	1,103	1,132
Investments and other assets
Investment securities	24,014	26,588
Other	2,651	2,585
Allowance for doubtful accounts	(65)	(65)
Total investments and other assets	26,599	29,107
Total non-current assets	44,013	46,649
Total assets	86,309	91,313

3

		(Millions of yen)
	As of March 31, 2023	As of September 30, 2023
Liabilities
Current liabilities
Notes and accounts payable - trade	9,925	10,475
Electronically recorded obligations - operating	1,693	2,212
Accounts payable for construction contracts	2,276	2,028
Short-term borrowings	14,971	15,619
Income taxes payable	367	484
Provision for bonuses for directors (and other officers)	128	63
Provision for loss on orders received	11	5
Provision for warranties for completed construction	19	23
Provision for shareholder benefit program	63	62
Other	4,385	5,008
Total current liabilities	33,842	35,982
Non-current liabilities
Long-term borrowings	5,104	4,516
Provision for retirement benefits for directors (and other	508	501
officers)
Retirement benefit liability	395	443
Asset retirement obligations	273	274
Other	4,572	5,330
Total non-current liabilities	10,853	11,066
Total liabilities	44,696	47,049
Net assets
Shareholders' equity
Share capital	4,808	4,808
Capital surplus	3,357	3,357
Retained earnings	24,760	25,356
Treasury shares	(42)	(42)
Total shareholders' equity	32,882	33,479
Accumulated other comprehensive income
Valuation difference on available-for-sale securities	8,246	9,916
Deferred gains or losses on hedges	8	25
Foreign currency translation adjustment	336	696
Remeasurements of defined benefit plans	13	12
Total accumulated other comprehensive income	8,604	10,651
Non-controlling interests	125	133
Total net assets	41,612	44,264
Total liabilities and net assets	86,309	91,313

4

Consolidated statements of income (cumulative) and consolidated statements of comprehensive income (cumulative)

Consolidated statements of income (cumulative)

		(Millions of yen)
	Six months ended	Six months ended
	September 30, 2022	September 30, 2023
Net sales	43,545	45,904
Cost of sales	35,911	37,076
Gross profit	7,634	8,828
Selling, general and administrative expenses	7,676	8,023
Operating profit (loss)	(42)	804
Non-operating income
Interest income	16	20
Dividend income	180	232
Share of profit of entities accounted for using equity method	156	121
Rent income on real estate and facilities	82	79
Other	139	114
Total non-operating income	574	568
Non-operating expenses
Interest expenses	64	103
Rent expenses on real estate and facilities	55	48
Foreign exchange losses	17	4
Other	42	33
Total non-operating expenses	180	190
Ordinary profit	351	1,182
Extraordinary income
Gain on sale of non-current assets	1	0
Gain on sale of investment securities	42	0
Compensation income	-	335
Total extraordinary income	43	335
Extraordinary losses
Loss on sale of non-current assets	0	-
Loss on retirement of non-current assets	11	102
Loss on sale of investment securities	0	4
Loss on valuation of investment securities	-	0
Office relocation expenses	-	8
Loss on liquidation of subsidiaries and associates	-	5
Total extraordinary losses	11	121
Profit before income taxes	383	1,397
Income taxes	281	515
Profit	101	881
Profit attributable to non-controlling interests	5	7
Profit attributable to owners of parent	96	873

5

Consolidated statements of comprehensive income (cumulative)

		(Millions of yen)
	Six months ended	Six months ended
	September 30, 2022	September 30, 2023
Profit	101	881
Other comprehensive income
Valuation difference on available-for-sale securities	(528)	1,650
Deferred gains or losses on hedges	8	17
Foreign currency translation adjustment	618	359
Share of other comprehensive income of entities accounted	(6)	19
for using equity method
Total other comprehensive income	91	2,047
Comprehensive income	192	2,928
Comprehensive income attributable to
Comprehensive income attributable to owners of parent	187	2,920
Comprehensive income attributable to non-controlling	5	7
interests

6

Consolidated statements 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	383	1,397
Depreciation	1,106	1,019
Share of loss (profit) of entities accounted for using equity	(156)	(121)
method
Loss (gain) on investments in investment partnerships	(27)	(25)
Loss (gain) on valuation of investment securities	-	0
Increase (decrease) in allowance for doubtful accounts	0	3
Increase (decrease) in provision for bonuses for directors (and	(30)	(65)
other officers)
Increase (decrease) in provision for retirement benefits for	(396)	(7)
directors (and other officers)
Increase (decrease) in retirement benefit liability	37	39
Increase (decrease) in provision for loss on orders received	3	(6)
Interest and dividend income	(196)	(253)
Interest expenses	64	103
Loss (gain) on sale of investment securities	(42)	3
Loss (gain) on sale of non-current assets	(1)	(0)
Loss on retirement of non-current assets	11	102
Compensation income	-	(335)
Loss (gain) on liquidation of subsidiaries and associates	-	5
Decrease (increase) in trade receivables	2,357	(1,654)
Decrease (increase) in inventories	(876)	(28)
Increase (decrease) in trade payables	(437)	737
Other, net	(421)	461
Subtotal	1,377	1,375
Interest and dividends received	223	278
Interest paid	(65)	(109)
Income taxes paid	(315)	(416)
Proceeds from compensation	-	332
Net cash provided by (used in) operating activities	1,219	1,459

7

		(Millions of yen)
	Six months ended	Six months ended
	September 30, 2022	September 30, 2023
Cash flows from investing activities
Payments into time deposits	-	(159)
Proceeds from withdrawal of time deposits	407	-
Purchase of property, plant and equipment	(641)	(597)
Proceeds from sale of property, plant and equipment	0	9
Purchase of intangible assets	(207)	(104)
Purchase of investment securities	(142)	(131)
Proceeds from sale of investment securities	83	42
Loan advances	(14)	(16)
Proceeds from collection of loans receivable	76	7
Other, net	(16)	(105)
Net cash provided by (used in) investing activities	(455)	(1,055)
Cash flows from financing activities
Net increase (decrease) in short-term borrowings	(394)	393
Repayments of finance lease liabilities	(169)	(193)
Proceeds from long-term borrowings	200	-
Repayments of long-term borrowings	(493)	(583)
Repayments of installment payables	(53)	(63)
Dividends paid	(277)	(277)
Dividends paid to non-controlling interests	(0)	(0)
Purchase of treasury shares	(0)	(0)
Net cash provided by (used in) financing activities	(1,189)	(725)
Effect of exchange rate change on cash and cash equivalents	286	169
Net increase (decrease) in cash and cash equivalents	(137)	(151)
Cash and cash equivalents at beginning of period	5,806	6,624
Cash and cash equivalents at end of period	5,668	6,472

8