Consolidated Financial Statements for the First Quarter of Fiscal Year ending March 31, 2024
28/Jul/2023 These financial statements have been prepared in accordance with accounting principals generally accepted in Japan.
NEC Networks & System Integration Corporation | Stock exchange listing: | Tokyo |
Code number: | 1973 |
https://www.nesic.co.jp/english/index.html
1. Consolidated Results for the First Quarter (April 1, 2023 to June 30, 2023) of Fiscal Year ending March 31, 2024
(Rounded down to the nearest million yen.)
(1) Net Sales and Income
Net sales | Year-on-year | Operating income | Year-on-year | Ordinary income | Year-on-year | ||
(¥ million) | change (%) | (¥ million) | change (%) | (¥ million) | change (%) | ||
3 months ended | 71,683 | 6.0 | 1,118 | (25.4) | 1,116 | (26.8) | |
June 2023 | |||||||
3 months ended June | 67,628 | (0.1) | 1,499 | (49.2) | 1,526 | (49.9) | |
2022 | |||||||
Net income | Net income | ||||||
attributable | Net income per | ||||||
Year-on-year | per share | ||||||
to owners of | change (%) | share | (diluted) | ||||
the parent | (¥) | (¥) | |||||
(¥ million) | |||||||
3 months ended | 182 | (63.2) | 1.22 | - | |||
June 2023 | |||||||
3 months ended June | 496 | (70.0) | 3.33 | - | |||
2022 | |||||||
c.f. Comprehensive income: | 1Q/FY Mar 2024: | (¥26million) < - %>; 1Q/FY Mar 2023: ¥1,074million <(54.7%)> | |||||
(2) Financial Position | |||||||
Total assets | Net assets | Owner's equity | Net assets | ||||
per share | |||||||
(¥ million) | (¥ million) | ratio (%) | |||||
(¥) | |||||||
30/Jun/2023 | 248,736 | 142,235 | 55.3 | 924.01 | |||
31/Mar/2023 | 267,000 | 145,714 | 52.9 | 948.23 | |||
c.f. Owner's equity: 30/Jun/2023: ¥137,634 million; 31/Mar/2023 ¥141,242million | |||||||
2. Dividends | |||||||
Dividends per share (¥) | |||||||
1st | Interim | 3rd | Year-end | Full year | |||
quarter | quarter | ||||||
FY ended Mar. 2022 | - | 23.00 | - | 23.00 | 46.00 | ||
FY ending Mar. | - | 24.50 | - | 24.50 | 49.00 | ||
2024(Forecast) | |||||||
Note: Revisions to projected dividends for the quarter under review: no |
3. Financial Forecasts for Fiscal Year ending March 31, 2024 (April 1, 2023 to March 31, 2024)
(Percentages represent change compared to the previous corresponding period.)
Net sales | Operating income | Ordinary income | Net income attributable | Net income | |||||||
to owners of the parent | per share | ||||||||||
(¥ million) | (%) | (¥ million) | (%) | (¥ million) | (%) | (¥ million) | (%) | (¥) | |||
FY ending Mar. 2024 | 340,000 | 6.0 | 24,000 | 5.5 | 24,000 | 4.5 | 14,000 | 1.4 | 93.99 | ||
Note: Revisions to projected results for the quarter under review: no |
Cautionary Statement
Forecasts of results mentioned in this document are future estimates and are thus inclusive of risks and uncertain factors since they are not based on definite facts. Please be aware that a variety of factors could cause actual results to differ significantly from those projected. The major factors affecting actual results include the economic climate and social trends surrounding the business of this Company's group, consumer trends vis-a-vis systems and services provided by this Company's group, as well as pressure to lower prices and ability to cope with the market in response to intensified competition.
Factors affecting results are not limited to the ones mentioned above.
4. Consolidated Financial Statements
(1) Consolidated Balance Sheets
(Millions of yen) | ||
As of | As of | |
March 31, 2023 | June 30, 2023 | |
Assets | ||
Current assets | ||
Cash and cash equivalents | 68,549 | 82,984 |
Notes, accounts receivable and contract assets | 123,297 | 87,199 |
Electronically recorded obligations | 1,165 | 2,200 |
Purchased goods,materials and supplies | 3,151 | 3,063 |
Work in process | 12,932 | 12,345 |
Other | 11,724 | 15,170 |
Allowance for doubtful accounts | (85) | (33) |
Total current assets | 220,735 | 202,930 |
Non-current assets | ||
Property and equipment | 14,343 | 14,363 |
Intangible assets | ||
Goodwill | 153 | 135 |
Other | 3,592 | 3,391 |
Total intangible assets | 3,745 | 3,527 |
Investments and other assets | ||
Deferred tax assets | 14,172 | 14,406 |
Other | 14,100 | 13,609 |
Allowance for doubtful accounts | (97) | (100) |
Total investments and other assets | 28,175 | 27,916 |
Total non-current assets | 46,264 | 45,806 |
Total assets | 267,000 | 248,736 |
Liabilities | ||
Current liabilities | ||
Notes and accounts payable | 44,571 | 31,792 |
Electronically recorded obligations | 1,467 | 1,550 |
Short-term bank loans | 8,653 | 8,274 |
Current installments of long-term debt | 202 | 144 |
Accrued income taxes | 4,493 | 1,116 |
Accrued bonuses to directors and corporate auditors | 144 | 26 |
Accrued warranty on products | 161 | 160 |
Accrued losses on sales contracts | 515 | 374 |
Accrued compensation for damage | 3 | 25 |
Accrued office transfer cost | 394 | 158 |
Other current liabilities | 26,282 | 28,784 |
Total current liabilities | 86,890 | 72,410 |
Long-term liabilities | ||
Long-term debt | 3,000 | 3,000 |
Liabilities for retirement benefits | 28,424 | 28,155 |
Other liabilities | 2,970 | 2,935 |
Total long-term liabilities | 34,395 | 34,091 |
Total liabilities | 121,285 | 106,501 |
Net assets | ||
Shareholders' equity | ||
Capital stock | 13,122 | 13,122 |
Capital surplus | 16,708 | 16,708 |
Retained earnings | 112,486 | 109,242 |
Treasury stock, at cost | (252) | (252) |
Total shareholders' equity | 142,065 | 138,821 |
Accumulated other comprehensive income | ||
Net unrealized holding gain on other securities | 1,382 | 797 |
Deferred gains or losses on hedges | 10 | 102 |
Foreign currency translation adjustments | (284) | (245) |
Accumulated adjustments for retirement benefits | (1,930) | (1,842) |
Total accumulated other comprehensive income | (822) | (1,186) |
Non-controlling interests | 4,471 | 4,601 |
Total net assets | 145,714 | 142,235 |
Total liabilities and net assets | 267,000 | 248,736 |
(2) Consolidated Statements of Income and Comprehensive Income | |||
(Consolidated Statements of Income) | (Millions of yen) | ||
1Q, FY March 2023 | 1Q, FY March 2024 | ||
(3 months ended June | |||
(3 months ended June 2023) | |||
2022) | |||
Net sales | 67,628 | 71,683 | |
Cost of sales | 55,528 | 59,157 | |
Gross profit | 12,099 | 12,526 | |
Selling, general and administrative expenses | 10,600 | 11,407 | |
Operating income | 1,499 | 1,118 | |
Non-operating income | |||
Interest income | 4 | 1 | |
Reversal of provision for office transfer | - | 87 | |
cost | |||
Other | 123 | 132 | |
Total non-operating income | 127 | 221 | |
Non-operating expenses | |||
Interest expenses | 32 | 90 | |
Foreign exchange loss | 8 | 50 | |
Other | 60 | 81 | |
Total non-operating expenses | 101 | 223 | |
Ordinary income | 1,526 | 1,116 | |
Extraordinary losses | |||
Expenses relating to move of the head office | 519 | - | |
Total extraordinary losses | 519 | - | |
Income before income taxes | 1,006 | 1,116 | |
Income taxes | 397 | 818 | |
Net income | 608 | 297 | |
Net income | attributable to non- controlling | ||
112 | 115 | ||
interests | |||
Net income | attributable to owners of the | ||
parent | 496 | 182 |
(Millions of yen)
1Q, FY March 2023 | 1Q, FY March 2024 | |
(3 months ended June | ||
(3 months ended June 2023) | ||
2022) | ||
Net income (loss) | 608 | 297 |
Other comprehensive income | ||
Net unrealized holding loss on other securit | 253 | (584) |
Deferred gains or losses on hedges | - | 92 |
Foreign currency translation adjustments | 119 | 80 |
Adjustments for retirement benefit | 93 | 88 |
Share of other comprehensive income of | ||
associates | ||
accounted for using equity method | (1) | (0) |
Total other comprehensive income | 465 | (324) |
Comprehensive income (loss) | 1,074 | (26) |
Comprehensive income (loss) attributable to: | ||
Owners of the parent | 922 | (181) |
Non-controlling interests | 152 | 155 |
(3) Consolidated Statements of Cash Flows
(Millions of yen) | ||
1Q, FY March 2023 | 1Q, FY March 2024 | |
(3 months ended June 2022) (3 months ended June 2023) | ||
Cash flows from operating activities | ||
Net income before income taxes | 1,006 | 1,116 |
Depreciation and amortization | 947 | 994 |
Amortization of goodwill | 58 | 17 |
Increase (decrease) in allowance for doubtful receivables | (2) | (53) |
Increase (decrease) in asset for retirement benefit | (52) | (56) |
Increase (decrease) in liability for retirement benefits | 121 | (240) |
Increase (decrease) in accrued bonuses to directors and | ||
corporate auditors | (105) | (117) |
Increase (decrease) in accurued warranty on products | 10 | (0) |
Increase (decrease) in accurued losses on sales | ||
contracts | 237 | (151) |
Increase (decrease) in accurued compensation for damage | 0 | 21 |
Interest and dividend income | (32) | (26) |
Interest expense | 32 | 90 |
(Increase) decrease in notes and accounts receivable, | ||
and contract asssets | 29,491 | 35,299 |
(Increase) decrease in inventories | (765) | 680 |
Increase (decrease) in notes and accounts payable | (9,873) | (12,716) |
Increase (decrease) in accrued consumption taxes | 92 | 1,090 |
Other, net | (1,514) | (746) |
Subtotal | 19,653 | 25,202 |
Interest and dividend income received | 32 | 26 |
Interest paid | (29) | (93) |
Income taxes paid | (3,385) | (4,208) |
Net cash provided by (used in) operating activities | 16,270 | 20,927 |
Cash flows from investing activities | ||
Purchase of property and equipment | (426) | (1,880) |
Proceeds from sale of property and equipment | 0 | - |
Purchase of intangibles | (198) | (313) |
Purchase of investment securities | (264) | (99) |
Payments of loans receivable | (6) | (0) |
Collection of loans receivable | 0 | 0 |
Other, net | (767) | (182) |
Net cash used in investing activities | (1,662) | (2,475) |
Cash flows from financing activities | ||
Net increase (decrease) in short-term bank loans | 454 | (530) |
Repayments of long-term debt | (74) | (57) |
Net (increase) decrease in treasury shares | (0) | (0) |
Dividends paid to shareholders | (3,549) | (3,404) |
Dividends paid to minority shareholders of subsidiaries | (25) | (25) |
Other, net | (53) | (48) |
Net cash provided by used in financing activities | (3,249) | (4,067) |
Effect of exchange rate changes on cash and cash | ||
equivalents | 72 | 50 |
Net increase (decrease) in cash and cash equivalents | 11,431 | 14,435 |
Cash and cash equivalents at beginning of period | 79,732 | 68,549 |
Cash and cash equivalents at end of period | 91,163 | 82,984 |
(4) Segment Information
Business Segment Information
First quarter of fiscal March 2024 (3 months ended June 2023)
(Millions of yen)
DX Solutions | Network | Environmental & | Others | Adjustments | Total | ||
Solutions | Social Solutions | ||||||
Sales | |||||||
(1) | Sales to third parties | 27,759 | 18,125 | 23,089 | 2,709 | - | 71,683 |
(2) | Intersegment sales | - | - | - | - | - | - |
Total | 27,759 | 18,125 | 23,089 | 2,709 | - | 71,683 | |
Operating income and loss | 2,694 | 1,203 | 152 | 37 | (2,969) | 1,118 |
First quarter of fiscal March 2023 (3 months ended June 2022)
(Millions of yen)
DX Solutions | Network | Environmental & | Others | Adjustments | Total | ||
Solutions | Social Solutions | ||||||
Sales | |||||||
(1) | Sales to third parties | 24,736 | 16,547 | 24,232 | 2,110 | - | 67,628 |
(2) | Intersegment sales | - | - | - | - | - | - |
Total | 24,736 | 16,547 | 24,232 | 2,110 | - | 67,628 | |
Operating income and loss | 2,282 | 1,039 | 386 | 47 | (2,256) | 1,499 |
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NEC Networks & System Integration Corporation published this content on 28 July 2023 and is solely responsible for the information contained therein. Distributed by Public, unedited and unaltered, on 28 July 2023 07:58:30 UTC.