NEC Capital : Consolidated Financial Results for the three months ended June 30, 2023 334KB (2023/07/31)

Consolidated Financial Results for the three months ended June 30, 2023

Corporate name:

Stock exchange listings:

Stock code:

Website (URL):

Representative's name and title:

Contact:

July 31, 2023

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, 2023 (From April 1, 2023 to June 30, 2023)

(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		60,479	(15.4)		2,549	(49.8)	2,424	(60.2)	1,400	(52.9)
June 30, 2023
Three months ended		71,486	13.7		5,079	30.5	6,087	58.6	2,974	106.3
June 30, 2022
(Note) Comprehensive income:
FY2024/3 1st quarter : 2,540Million Yen	(55.9)%
FY2023/3 1st quarter : 5,762Million Yen	54.5%
		Net Income per		Net Income per
		Share: Basic		Share: Diluted
			Yen			Yen
Three months ended			65.04			－
June 30, 2023
Three months ended		138.18			－
June 30, 2022
(2) Consolidated Financial Position
		Total Assets	Net Assets	Equity Ratio
		Million Yen	Million Yen		%
As of June 30, 2023	1,041,611		131,774		10.6
As of March 31, 2023	1,055,875		128,815		10.4

(Reference) Shareholders' Equity:

June 30, 2023 : 110,203 Million Yen

March 31, 2023 : 109,490 Million Yen

NEC Capital Solutions Limited (8793) Consolidated Financial Results for the three months ended June 30, 2023

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
－	37.00	－	73.00	110.00
March 31, 2023
Fiscal year ending	－
March 31, 2024
Fiscal year ending		65.00	－	65.00	130.00
March 31, 2024
(Forecasts)
(Note) Revisions to dividend forecasts for the current quarter: No

3. Forecasts for the fiscal year ending March 31, 2024 (April 1, 2023 to March 31, 2024)

(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	260,000	0.7	12,000	2.4	12,500	0.5	7,500	16.8	348.37
March 31,2024
(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: No
   2. Any other changes, except those mentioned in 1) above: Yes
   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, 2023 : 21,533,400 shares

March 31, 2023 : 21,533,400 shares

2) Number of treasury shares at the end of the period June 30, 2023 : 4,466 shares

March 31, 2023 : 4,324 shares

3) Average numbers of shares during the period

Three months ended June 30, 2023: 21,529,028 shares

Three months ended June 30, 2022: 21,529,244 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, 2023

Consolidated Financial Report

(1) Consolidated Balance Sheets

			(Unit: Million Yen)
	Term	As of March 31, 2023	As of June 30, 2023
Items
（Assets）
I. Current assets
1.	Cash on hand and in banks	35,482	22,577
2. Accounts receivable, installment sales	38,828	37,929
3.	Leases receivables and investment in leases	517,945	496,942
4. Accounts receivable, leases	22,034	22,166
5. Accounts receivable, loans	231,611	233,602
6.	Purchased receivables	12,419	15,088
7. Operational investment securities	22,875	25,374
8. Real estate for sale	23,827	30,003
9.Real estate for sale in process	-	565
10.	Other	13,107	14,188
11. Allowance for doubtful accounts	(9,839)	(9,656)
Total current assets	908,292	888,781
II. Fixed assets
(1) Property and equipment, net
1.	Leased assets	55,819	58,080
2.	Other operating assets	7,199	7,221
3. Assets held for own use	363	351
Total property and equipment, net	63,381	65,654
(2) Intangible assets
1. Computer programs leased to customers	1,437	1,434
2.	Goodwill	1,559	1,617
3.	Software and other	6,176	6,783
Total intangible assets	9,173	9,835
(3) Investments and other assets
1. Investment securities	61,737	64,147
2.	Other	15,301	15,270
3. Allowance for doubtful accounts	(2,011)	(2,077)
Total investments and other assets	75,027	77,339
Total fixed assets	147,583	152,830
Total assets	1,055,875	1,041,6111

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NEC Capital Solutions Limited (8793) Consolidated Financial Results for the three months ended June 30, 2023

			(Unit: Million Yen)
	Term	As of March 31, 2023	As of June 30, 2023
Items
（Liabilities）
I. Current liabilities
1.	Notes payable, trade	140	122
2. Accounts payable, trade	15,654	4,215
3.	Short-term borrowings	27,090	29,277
4.	Current portion of long-term debt	149,486	148,817
5.	Current portion of bonds	20,000	20,000
6.	Commercial paper	243,000	233,000
7.	Payable under securitized lease receivables	1,286	1,099
due within a year
8. Accrued income taxes	238	70
9. Allowance for bonuses	847	549
10. Allowance for bonuses for directors	33	10
11.	Other	38,615	35,793
Total current liabilities	496,394	472,905
II. Long-term liabilities
1.	Bonds	80,150	90,150
2.	Long-term debt	335,636	330,808
3.	Payable under securitized lease receivables	2,699	2,538
4.	Net defined benefit liability	2,034	1,982
5.	Other	10,145	11,452
Total long-term liabilities	430,665	436,931
Total liabilities	927,060	909,837
(Net assets)
I. Shareholders' equity
1.	Common stock	3,776	3,776
2.	Capital surplus	4,646	4,648
3.	Retained earnings	97,131	96,960
4.	Treasury stock, at cost	(9)	(9)
Total shareholders' equity	105,545	105,375
II. Accumulated other comprehensive income
1.	Net unrealized gains on marketable securities	1,627	1,670
2.	Deferred losses on hedging derivatives	91	(34)
3.	Foreign currency translation adjustments	2,262	3,220
4.	Remeasurements of defined benefit plans	(36)	(28)
Total accumulated other comprehensive
3,944	4,827
income
III. Non-controlling interests	19,325	21,571
Total net assets	128,815	131,774
Total liabilities and net assets	1,055,875	1,041,611

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NEC Capital Solutions Limited (8793) Consolidated Financial Results for the three months ended June 30, 2023

（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, 2022	June 30, 2023
I. Revenues	71,486	60,479
II. Costs	61,508	53,668
	Gross profit	9,978	6,811
III. Selling, general, and administrative
expenses	4,898	4,262
	Operating income	5,079	2,549
IV. Non-operating income
1.	Interest income	10	11
2.	Dividend income	39	48
3.	Equity in earnings of affiliates	22	－
4.	Gain on investment in partnerships	715	45
5.	Insurance claim income	－	58
6.	Foreign exchange gains	214	－
7.	Other	20	9
Subtotal	1,024	173
V. Non-operating expenses
1. Interest expense	5	109
2.	Equity in loss of affiliates	－	14
3.	Loss on investment in partnerships	2	22
4. Foreign exchange losses	－	140
5.	Other	8	11
Subtotal	17	298
	Ordinary income	6,087	2,424
VI. Extraordinary income
1.Gain on liquidation of subsidiaries	－	114
Subtotal	－	114
	Profit before income taxes	6,087	2,538
Income taxes, current	119	521
Income taxes, deferred	1,631	359
	Total	1,750	881
	Profit	4,336	1,657
Profit attributable to non-controlling interests	1,361	257
Profit attributable to owners of parent	2,974	1,400

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