NEC Capital : Consolidated Financial Results for the six months ended September 30, 2022 389KB (2022/10/31)

Consolidated Financial Results for the six months ended September 30, 2022

Corporate name:

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Stock code:

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Representative's name and title:

Contact:

October 31, 2022

NEC Capital Solutions Limited

Tokyo Stock Exchange, Prime Market

8793

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

Masaaki Suganuma, 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, 2022 (From April 1, 2022 to September 30, 2022)

(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		135,673	6.8		7,462	7.3	8,608	17.8	4,411	26.7
	September 30, 2022
	Six months ended		127,081	17.7		6,956	283.2	7,306	279.1	3,483	175.3
	September 30, 2021
	(Note) Comprehensive income:
	FY2022 2nd quarter : 8,071 Million Yen	18.7%
	FY2021 2nd quarter : 6,802 Million Yen	863.8%
			Net Income per		Net Income per
			Share: Basic		Share: Diluted
					Yen			Yen
	Six months ended			204.94			－
	September 30, 2022
	Six months ended			161.83			－
	September 30, 2021
	(2) Consolidated Financial Position
				Total Assets		Net Assets	Equity Ratio
				Million Yen		Million Yen		%
	As of September 30, 2022			1,002,788		129,151		10.9
	As of March 31, 2022			1,030,617		121,740		10.0
	(Reference) Shareholders' Equity:
	September 30, 2022	: 109,181 Million Yen
	March 31, 2022		: 103,214 Million Yen

NEC Capital Solutions Limited (8793) Consolidated Financial Results for the six months ended September 30, 2022

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
－	32.00	－	42.00	74.00
March 31, 2022
Fiscal year ending	－	37.00
March 31, 2023
Fiscal year ending			－	37.00	74.00
March 31, 2023
(Forecasts)
(Note) Revisions to dividend forecasts for the current quarter: No

3. Forecasts for the fiscal year ending March 31, 2023 (April 1, 2022 to March 31, 2023)

(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	250,000	0.0	11,000	5.3	11,000	(3.7)	6,500	(6.3)	301.91
March 31, 2023
(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, 2022 : 21,533,400 shares

March 31, 2022

: 21,533,400 shares

1. Number of treasury shares at the end of the period September 30, 2022 : 4,290 shares

March 31, 2022 : 4,156 shares

3) Average numbers of shares during the period

Six months ended September 30, 2022: 21,528,449 shares

Six months ended September 30, 2021: 21,524,579 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, 2022

Consolidated Financial Report

(1) Consolidated Balance Sheets

		(Unit: Million Yen)
Term	As of March 31, 2022	As of September 30, 2022
Items
（Assets）
I. Current assets
1. Cash on hand and in banks	37,711	23,946
2. Accounts receivable, installment sales	35,341	37,148
3. Leases receivables and investment in leases	529,610	501,559
4. Accounts receivable, leases	20,680	20,599
5. Accounts receivable, loans	217,254	226,169
6. Purchased receivables	8,010	10,500
7. Operational investment securities	21,183	22,462
8. Real estate for sale	25,222	20,191
9. Other	14,129	12,205
10. Allowance for doubtful accounts	(10,159)	(9,556)
Total current assets	898,983	865,228
II. Fixed assets
(1) Property and equipment, net
1. Leased assets	55,253	54,993
2. Other operating assets	5,502	6,380
3. Assets held for own use	460	419
Total property and equipment, net	61,216	61,793
(2) Intangible assets
1. Computer programs leased to customers	1,302	1,562
2. Goodwill	1,625	1,763
3. Software and other	2,940	4,376
Total intangible assets	5,868	7,702
(3) Investments and other assets
1. Investment securities	48,921	54,640
2. Other	17,437	16,521
3. Allowance for doubtful accounts	(1,809)	(3,097)
Total investments and other assets	64,549	68,063
Total fixed assets	131,633	137,560
Total assets	1,030,617	1,002,788

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NEC Capital Solutions Limited (8793) Consolidated Financial Results for the six months ended September 30, 2022

			(Unit: Million Yen)
	Term	As of March 31, 2022	As of September 30, 2022
Items
（Liabilities）
I. Current liabilities
1.	Notes payable, trade	855	561
2. Accounts payable, trade	12,121	19,290
3.	Short-term borrowings	24,581	22,684
4.	Current portion of long-term debt	171,662	189,203
5.	Current portion of bonds	30,000	30,000
6.	Commercial paper	216,000	179,000
7.	Payable under securitized lease receivables	2,384	1,648
	due within a year
8. Accrued income taxes	267	205
9. Allowance for bonuses	948	1,257
10. Other	39,104	42,329
Total current liabilities	497,925	486,179
II. Long-term liabilities
1.	Bonds	80,150	80,150
2.	Long-term debt	313,665	291,169
3. Payable under securitized lease receivables	3,985	3,310
4.	Net defined benefit liability	2,076	2,038
5.	Other	11,073	10,790
Total long-term liabilities	410,951	387,458
Total liabilities	908,876	873,637
(Net assets)
I. Shareholders' equity
1.	Common stock	3,776	3,776
2.	Capital surplus	4,645	4,645
3.	Retained earnings	92,414	95,917
4.	Treasury stock, at cost	(9)	(9)
Total shareholders' equity	100,827	104,330
II. Accumulated other comprehensive income
1. Net unrealized gains on marketable securities	1,383	1,592
2.	Deferred losses on hedging derivatives	101	189
3.	Foreign currency translation adjustments	915	3,075
4.	Remeasurements of defined benefit plans	(13)	(6)
Total accumulated other comprehensive
2,386	4,850
income
III. Non-controlling interests	18,526	19,969
Total net assets	121,740	129,151
Total liabilities and net assets	1,030,617	1,002,788

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NEC Capital Solutions Limited (8793) Consolidated Financial Results for the six months ended September 30, 2022

（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, 2021	September 30, 2022
I. Revenues	127,081	135,673
II. Costs	110,519	117,570
	Gross profit	16,561	18,102
III. Selling, general, and administrative
expenses	9,604	10,640
	Operating income	6,956	7,462
IV. Non-operating income
1.	Interest income	20	22
2.	Dividend income	35	42
3.	Gain on investment in partnerships	405	843
4.	Foreign exchange gains	-	259
5.	Other	133	188
Subtotal	594	1,356
V. Non-operating expenses
1. Interest expense	10	12
2.	Equity in losses of affiliates	67	77
3.	Loss on investment in partnerships	13	13
4. Compensation for damage	-	85
5.	Foreign exchange losses	135	-
6.	Other	16	21
Subtotal	244	210
Ordinary income	7,306	8,608
Profit before income taxes	7,306	8,608
Income taxes, current	2,950	740
Income taxes, deferred	(1,321)	2,261
	Total	1,628	3,001
Profit	5,678	5,606
Profit attributable to non-controlling interests	2,194	1,194
Profit attributable to owners of parent	3,483	4,411

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