NEC Capital : Consolidated Financial Results for the six months ended September 30, 2021 510KB (2021/10/28)

Consolidated Financial Results for the six months ended September 30, 2021

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October 28, 2021

NEC Capital Solutions Limited

Tokyo Stock Exchange, First Section

8793

https://www.necap.co.jp/english/

Tomoo Imazeki, President

Seiichiro Kodama, Department Manager of IR & PR Department

TEL [phone]

(Amounts are rounded down to the nearest million yen)

1. Consolidated Financial Results for the six months ended September 30, 2021 (From April 1, 2021 to September 30, 2021)

(Percentage shows increase/decrease from the same quarter of the previous fiscal year)

(1) Consolidated Business Results

			Revenues		Operating Income	Ordinary Income	Profit attributable to
				owners of parent
			Million Yen	%		Million Yen	%	Million Yen	%	Million Yen	%
	Six months ended		127,081	17.7		6,956	283.2	7,306	279.1	3,483	175.3
	September 30, 2021
	Six months ended		107,974	(5.8)		1,815	(77.9)	1,927	(78.0)	1,265	(76.4)
	September 30, 2020
	(Note) Comprehensive income:
	FY2021 2nd quarter : 6,802 Million Yen	863.8%
	FY2020 2nd quarter :	705 Million Yen	(90.8%)
			Net Income per		Net Income per
			Share: Basic		Share: Diluted
					Yen			Yen
	Six months ended			161.83			－
	September 30, 2021
	Six months ended				58.77			－
	September 30, 2020
	(2) Consolidated Financial Position
			Total Assets		Net Assets	Equity Ratio
				Million Yen		Million Yen		%
	As of September 30, 2021			1,000,309		119,598		9.9
	As of March 31, 2021			1,057,653		113,885		9.0
	(Reference) Shareholders' Equity:
	September 30, 2021	: 99,502 Million Yen
	March 31, 2021		: 95,569 Million Yen

NEC Capital Solutions Limited (8793) Consolidated Financial Results for the six months ended September 30, 2021

2. Dividends Status

			Annual Dividends
	1st quarter-end	2nd quarter-end	3rd quarter-end	Fiscal year-end	Total
Fiscal year ended	Yen	Yen	Yen	Yen	Yen
－	30.00	－	30.00	60.00
March 31, 2021
Fiscal year ending	－	32.00
March 31, 2022
Fiscal year ending			－	32.00	64.00
March 31, 2022
(Forecasts)
(Note) Revisions to dividend forecasts for the current quarter: No

3. Forecasts for the fiscal year ending March 31, 2022 (April 1, 2021 to March 31, 2022)

(Percentage shows increase/decrease from previous term）

								Profit		Net Income
								attributable to
		Revenues		Operating Income	Ordinary Income	per Share:
			owners of
								Basic
								parent
		Million Yen	%	Million	%	Million Yen	%	Million Yen	%	Yen
				Yen
	Fiscal year ending	230,000	4.0	10,000	67.6	10,000	64.2	5,500	33.5	255.42
	March 31, 2022
(Note) Revisions to forecasts for the current quarter: No

4. Other

1. Changes in significant consolidated subsidiaries: No
2. Application of specific accounting procedures in the preparation of quarterly financial statements: No
3. Changes in accounting policies, accounting estimates or restatements
4. 1. Changes in accounting policies accompanying revision of accounting standards: Yes
   2. Any other changes, except those mentioned in 1) above: No
   3. Changes in accounting estimates: No
   4. Restatements: No
5. Number of shares issued (common stock)
6. 1. Outstanding shares at the end of the period (including treasury shares)

September 30, 2021 : 21,533,400 shares

March 31, 2021

: 21,533,400 shares

1. Number of treasury shares at the end of the period September 30, 2021 : 4,156 shares

March 31, 2021 : 541 shares

3) Average numbers of shares during the period

Six months ended September 30, 2021: 21,524,579 shares

Six months ended September 30, 2020: 21,532,893 shares

• This quarterly earnings report is exempt from the quarterly review by certified public accountants or audit corporations.
• Forecasts are based on the information available to management at the time they were made. Actual results may differ materially from forecasts for a number of reasons.

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NEC Capital Solutions Limited (8793) Consolidated Financial Results for the six months ended September 30, 2021

Consolidated Financial Report

(1) Consolidated Balance Sheets

		(Unit: Million Yen)
Term	As of March 31, 2021	As of September 30, 2021
Items
（Assets）
I. Current assets
1. Cash on hand and in banks	39,032	33,711
2. Accounts receivable, installment sales	31,128	32,767
3. Leases receivables and investment in leases	529,971	507,784
4. Accounts receivable, leases	24,671	20,962
5. Accounts receivable, loans	234,141	209,783
6. Purchased receivables	7,613	8,688
7. Operational investment securities	23,465	21,966
8. Real estate for sale	23,230	26,916
9. Other	19,114	14,418
10. Allowance for doubtful accounts	(8,008)	(7,858)
Total current assets	924,361	869,140
II. Fixed assets
(1) Property and equipment, net
1. Leased assets	60,951	55,290
2. Assets held for own use	5,747	5,520
Total property and equipment, net	66,699	60,810
(2) Intangible assets
1. Computer programs leased to customers	1,216	1,035
2. Goodwill	1,726	1,593
3. Software and other	2,070	1,968
Total intangible assets	5,013	4,597
(3) Investments and other assets
1. Investment securities	46,806	50,178
2. Other	17,737	18,695
3. Allowance for doubtful accounts	(2,964)	(3,112)
Total investments and other assets	61,579	65,761
Total fixed assets	133,292	131,169
Total assets	1,057,653	1,000,309

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NEC Capital Solutions Limited (8793) Consolidated Financial Results for the six months ended September 30, 2021

			(Unit: Million Yen)
	Term	As of March 31, 2021	As of September 30, 2021
Items
（Liabilities）
I. Current liabilities
1.	Notes payable, trade	563	429
2. Accounts payable, trade	21,008	7,541
3.	Short-term borrowings	41,460	26,622
4.	Current portion of long-term debt	101,896	113,580
5.	Current portion of bonds	20,000	30,000
6.	Commercial paper	250,000	189,000
7.	Payable under securitized lease receivables	2,694	1,803
	due within a year
8. Accrued income taxes	4,724	2,537
9. Allowance for bonuses	618	1,025
10. Other	25,226	43,344
Total current liabilities	468,192	415,884
II. Long-term liabilities
1.	Bonds	80,000	80,050
2.	Long-term debt	380,085	369,667
3. Payable under securitized lease receivables	4,208	3,474
4.	Net defined benefit liability	2,049	2,007
5.	Other	9,232	9,627
Total long-term liabilities	475,576	464,827
Total liabilities	943,768	880,711
(Net assets)
I. Shareholders' equity
1.	Common stock	3,776	3,776
2.	Capital surplus	4,645	4,645
3.	Retained earnings	86,811	89,641
4.	Treasury stock, at cost	(0)	(9)
Total shareholders' equity	95,232	98,055
II. Accumulated other comprehensive income
1. Net unrealized gains on marketable securities	517	1,328
2.	Deferred losses on hedging derivatives	(263)	(162)
3.	Foreign currency translation adjustments	(51)	214
4.	Remeasurements of defined benefit plans	133	66
Total accumulated other comprehensive
337	1,446
income
III. Non-controlling interests	18,315	20,096
Total net assets	113,885	119,598
Total liabilities and net assets	1,057,653	1,000,309

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NEC Capital Solutions Limited (8793) Consolidated Financial Results for the six months ended September 30, 2021

（2）Consolidated Statements of Income and Consolidated Statements of Comprehensive Income

(i) Consolidated Statements of Income

(Unit: Million Yen)

	Term	Six months ended	Six months ended
Items	September 30, 2020	September 30, 2021
I. Revenues	107,974	127,081
II. Costs	96,420	110,519
	Gross profit	11,554	16,561
III. Selling, general, and administrative
expenses	9,738	9,604
	Operating income	1,815	6,956
IV. Non-operating income
1.	Interest income	3	20
2.	Dividend income	34	35
3.	Equity in earnings of affiliates	42	-
4.	Gain on investment in partnerships	3	405
5.	Income from compensation for damage	-	103
6.	Foreign exchange gains	108	-
7.	Other	25	29
Subtotal	218	594
V. Non-operating expenses
1. Interest expense	8	10
2.	Equity in losses of affiliates	-	67
3.	Loss on investment in partnerships	72	13
4.	Foreign exchange losses	-	135
5.	Other	25	16
Subtotal	106	244
Ordinary income	1,927	7,306
Profit before income taxes	1,927	7,306
Income taxes, current	1,372	2,950
Income taxes, deferred	(450)	(1,321)
	Total	922	1,628
Profit	1,004	5,678
Profit attributable to non-controlling interests	(260)	2,194
Profit attributable to owners of parent	1,265	3,483

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