NEC Capital : Consolidated Financial Results for the three months ended June 30, 2022 329KB (2022/07/26)

Consolidated Financial Results for the three months ended June 30, 2022

Corporate name:

Stock exchange listings:

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Representative's name and title:

Contact:

July 26, 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 three months ended June 30, 2022 (From April 1, 2022 to June 30, 2022)

(Percentage shows increase/decrease from previous term)

(1) Consolidated Business Results

		Revenues		Operating Income	Ordinary Income	Profit attributable to
			owners of parent
		Million Yen	%		Million Yen	%	Million Yen	%	Million Yen	%
Three months ended		71,486	13.7		5,079	30.5	6,087	58.6	2,974	106.3
June 30, 2022
Three months ended		62,877	19.4		3,892	351.5	3,837	315.2	1,441	143.3
June 30, 2021
(Note) Comprehensive income:
FY2022 1st quarter : 5,762Million Yen	54.5%
FY2021 1st quarter : 3,729 Million Yen	705.9%
		Net Income per		Net Income per
		Share: Basic		Share: Diluted
			Yen			Yen
Three months ended		138.18			－
June 30, 2022
Three months ended			66.97			－
June 30, 2021
(2) Consolidated Financial Position
		Total Assets	Net Assets	Equity Ratio
		Million Yen	Million Yen		%
As of June 30, 2022	1,016,896		127,457		10.5
As of March 31, 2022	1,030,617		121,740		10.0

(Reference) Shareholders' Equity:

June 30, 2022 : 106,714 Million Yen

March 31, 2022 : 103,214 Million Yen

NEC Capital Solutions Limited (8793) Consolidated Financial Results for the three months ended June 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	－
March 31, 2023
Fiscal year ending		37.00	－	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)

June 30, 2022 : 21,533,400 shares

March 31, 2022 : 21,533,400 shares

2) Number of treasury shares at the end of the period June 30, 2022 : 4,156 shares

March 31, 2022 : 4,156 shares

3) Average numbers of shares during the period

Three months ended June 30, 2022: 21,529,244 shares

Three months ended June 30, 2021: 21,532,859 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 three months ended June 30, 2022

Consolidated Financial Report

(1) Consolidated Balance Sheets

			(Unit: Million Yen)
	Term	As of March 31, 2022	As of June 30, 2022
Items
（Assets）
I. Current assets
1.	Cash on hand and in banks	37,711	38,073
2. Accounts receivable, installment sales	35,341	36,910
3.	Leases receivables and investment in leases	529,610	511,806
4. Accounts receivable, leases	20,680	20,470
5. Accounts receivable, loans	217,254	217,344
6.	Purchased receivables	8,010	10,412
7. Operational investment securities	21,183	20,308
8. Real estate for sale	25,222	15,900
9.	Other	14,129	14,759
10. Allowance for doubtful accounts	(10,159)	(8,230)
Total current assets	898,983	877,756
II. Fixed assets
(1) Property and equipment, net
1.	Leased assets	55,253	57,298
2.	Other operating assets	5,502	6,501
3. Assets held for own use	460	442
Total property and equipment, net	61,216	64,242
(2) Intangible assets
1. Computer programs leased to customers	1,302	1,665
2.	Goodwill	1,625	1,729
3.	Software and other	2,940	3,744
Total intangible assets	5,868	7,138
(3) Investments and other assets
1. Investment securities	48,921	53,643
2.	Other	17,437	18,055
3. Allowance for doubtful accounts	(1,809)	(3,941)
Total investments and other assets	64,549	67,758
Total fixed assets	131,633	139,139
Total assets	1,030,617	1,016,896

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

			(Unit: Million Yen)
	Term	As of March 31, 2022	As of June 30, 2022
Items
（Liabilities）
I. Current liabilities
1.	Notes payable, trade	855	224
2. Accounts payable, trade	12,121	7,099
3.	Short-term borrowings	24,581	32,079
4.	Current portion of long-term debt	171,662	179,290
5.	Current portion of bonds	30,000	30,000
6.	Commercial paper	216,000	189,000
7.	Payable under securitized lease receivables	2,384	1,943
due within a year
8. Accrued income taxes	267	69
9. Allowance for bonuses	948	625
10.	Other	39,104	43,990
Total current liabilities	497,925	484,323
II. Long-term liabilities
1.	Bonds	80,150	90,150
2.	Long-term debt	313,665	298,676
3.	Payable under securitized lease receivables	3,985	3,637
4. Net defined benefit liability	2,076	2,060
5.	Other	11,073	10,591
Total long-term liabilities	410,951	405,115
Total liabilities	908,876	889,439
(Net assets)
I. Shareholders' equity
1.	Common stock	3,776	3,776
2.	Capital surplus	4,645	4,648
3.	Retained earnings	92,414	94,484
4.	Treasury stock, at cost	(9)	(9)
Total shareholders' equity	100,827	102,900
II. Accumulated other comprehensive income
1. Net unrealized gains on marketable securities	1,383	1,495
2. Deferred losses on hedging derivatives	101	179
3.	Foreign currency translation adjustments	915	2,149
4.	Remeasurements of defined benefit plans	(13)	(10)
Total accumulated other comprehensive	2,386	3,814
income
III. Non-controlling interests	18,526	20,742
Total net assets	121,740	127,457
Total liabilities and net assets	1,030,617	1,016,896

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

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

(i) Consolidated Statements of Income

(Unit: Million Yen)

	Term	Three months ended	Three months ended
Items	June 30, 2021	June 30, 2022
I. Revenues	62,877	71,486
II. Costs	54,680	61,508
	Gross profit	8,196	9,978
III. Selling, general, and administrative
expenses	4,304	4,898
	Operating income	3,892	5,079
IV. Non-operating income
1.	Interest income	10	10
2.	Dividend income	33	39
3.	Equity in earnings of affiliates	－	22
4.	Gain on investment in partnerships	134	715
5.	Foreign exchange gains	－	214
6.	Other	7	20
Subtotal	186	1,024
V. Non-operating expenses
1. Interest expense	4	5
2.	Equity in loss of affiliates	21	－
3.	Loss on investment in partnerships	6	2
4. Loss on valuation of investment securities	5	3
5. Foreign exchange losses	194	－
6.	Other	8	4
Subtotal	241	17
	Ordinary income	3,837	6,087
	Profit before income taxes	3,837	6,087
Income taxes, current	2,473	119
Income taxes, deferred	(1,584)	1,631
	Total	889	1,750
	Profit	2,948	4,336
Profit attributable to non-controlling interests	1,506	1,361
Profit attributable to owners of parent	1,441	2,974

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