Nippon Information Development : Consolidated Financial Results for the Three Months Ended June 30, 2023

Note: This document has been translated from the Japanese original for reference purposes only. In the event of any discrepancy between this translated document and the Japanese original, the original shall prevail.

August 04, 2023

	Consolidated Financial Results
	for the Three Months Ended June 30, 2023
	(Under Japanese GAAP)
Company name:	NID Co., Ltd.
Listing:	Tokyo Stock Exchange
Securities code:	2349
URL:	https://www.nid.co.jp/
Representative:	Shuntaro Komori, President
Inquiries:	Hiroshi Kosuge, Director,Corporate Design Manager, Finance Manager
Telephone:	81-8-3-6221-6811

Scheduled date to file quarterly securities report:	August 04, 2023
Scheduled date to commence dividend payments:	-
Preparation of supplementary material on quarterly financial results: None
Holding of quarterly financial results briefing:	None

(Yen amounts are rounded down to millions, unless otherwise noted.)

1. Consolidated financial results for the three months ended June 30, 2023 (from April 1, 2023 to June 30, 2023)

(1) Consolidated operating results (cumulative)		(Percentages indicate year-on-year changes.)
			Net sales		Operating profit	Ordinary profit		Profit attributable to
					owners of parent
	Three months ended	Millions of yen		%	Millions of yen		%	Millions of yen	%		Millions of yen	%
	June 30,2023		5,014		9.0	505		1.7	577	5.7		382	4.5
	June 30,2022		4,600		11.2	496		26.9	546	23.3		366	23.4
Note: Comprehensive income	For the three months ended June 30, 2023:	¥511 million	[55.5%]
			For the three months ended June 30, 2022:	¥329 million	[△2.6%]
		Basic earnings	Diluted earnings
			per share		per share
	Three months ended				Yen			Yen
	June 30,2023				34.47			－
	June 30,2022				32.97			－

(2) Consolidated financial position

		Total assets		Net assets
	As of	Millions of yen	Millions of yen
	June 30,2023	24,380		18,134
	March 31,2023	24,020		17,911
Reference: Equity
	As of June 30,2023:	¥18,134 million
	As of March 31, 2023:	¥17,911 million

Equity-to-asset ratio

%

74.4

74.6

2. Cash dividends

		Annual dividends per share
	First quarter-end	Second quarter-end		Third quarter-end		Fiscal year-end	Total
	Yen	Yen		Yen		Yen	Yen
Fiscal year ended	－	－		－		26.00	26.00
March 31, 2023
Fiscal year ending	－
March 31, 2024
Fiscal year ending						27.00	27.00
March 31, 2024		－		－
(Forecast)

Note: Revisions to the forecast of cash dividends most recently announced: None

3. Consolidated Financial Forecasts for the Fiscal Year Ending March 31,2024 (From April 1, 2023 to March 31, 2024)

	Net sales		Operating profit	Ordinary profit	Profit attributable to	Net income
		owners of parent	per share
Six months ended	Million yen	%	Million yen	%	Million yen	%	Million yen	%	Yen
10,040	5.9	940	△11.7	1,020	△11.8	710	△30.0	63.93
September 30,2023
Full Year	21,000	2.7	2,400	△5.7	2,560	△6.7	1,760	△20.4	158.48

Note : Revisions to the latest projected consolidated results : None

* Notes

1. Changes in significant subsidiaries during the period (changes in specified subsidiaries resulting in the change in scope of consolidation): None
2. Adoption of accounting treatment specific to the preparation of quarterly consolidated financial statements: Yes
3. Changes in accounting policies, changes in accounting estimates, and restatement
4. 1. Changes in accounting policies due to revisions to accounting standards and other regulations: None
   2. Changes in accounting policies due to other reasons: None
   3. Changes in accounting estimates: None
   4. Restatement: None
5. Number of issued shares (common shares)
6. 1. Total number of issued shares at the end of the period (including treasury shares)

As of June 30,2023

As of March 31, 2023

13,109,490 shares

13,109,490 shares

(ii) Number of treasury shares at the end of the period

As of June 30,2023

As of March 31, 2023

2,003,853 shares

2,003,853 shares

1. Average number of shares outstanding during the period (cumulative from the beginning of the fiscal year)

Three months ended June 30,2023

Three months ended June 30,2022

11,105,637 shares

11,105,731 shares

• Quarterly financial results reports are exempt from quarterly review conducted by certified public accountants or an audit corporation.
• Proper use of earnings forecasts, and other special matters
  All projections provided in this document are based on the most accurate information available at the time of this writing. However our actual results may differ from our projections due to various unforeseen reasons.

4. Consolidated Financial Statements

(1) Consolidated Balance Sheets

				(Thousands of yen)
		As of March 31, 2023	As of June 30, 2023
Assets
Current assets
Cash and deposits	13,049,487		13,504,862
Notes receivable - trade	99,824		154,444
Accounts receivable - trade	3,416,640		2,692,791
Work in process	147,453		446,383
Other	161,928		260,854
Total current assets	16,875,335		17,059,336
Non-current assets
Property, plant and equipment	328,817		314,209
Intangible assets	345,908		322,228
Investments and other assets
Investment securities	4,992,906		5,264,513
Deferred tax assets	968,446		909,980
Guarantee deposits	354,127		354,157
Other	154,465		155,952
Total investments and other assets	6,469,944		6,684,604
Total non-current assets	7,144,670		7,321,042
Total assets	24,020,006		24,380,378
Liabilities
Current liabilities
Accounts payable - trade	587,392		697,114
Short-term borrowings	－	360,000
Accounts payable - other	350,464		434,258
Income taxes payable	568,346		210,604
Accrued consumption taxes	308,823		299,610
Advances received	1,155		55
Provision for bonuses	931,757		490,839
Other	254,655		605,338
Total current liabilities	3,002,594		3,097,820
Non-current liabilities
Retirement benefit liability	2,484,080		2,533,181
Provision for retirement benefits for directors	556,987		563,436
(and other officers)
Asset retirement obligations	49,109		49,318
Other	16,001		2,402
Total non-current liabilities	3,106,178		3,148,339
Total liabilities	6,108,773		6,246,159
Net assets
Shareholders' equity
Share capital	653,352		653,352
Capital surplus	488,675		488,675
Retained earnings	17,760,317		17,854,370
Treasury shares	△1,587,797	△1,587,797
Total shareholders' equity	17,314,547		17,408,600
Accumulated other comprehensive income
Valuation difference on available-for-sale	584,855		715,072
securities
Remeasurements of defined benefit plans	11,830		10,546
Total accumulated other comprehensive income	596,685		725,618
Total net assets	17,911,232		18,134,219
Total liabilities and net assets		24,020,006		24,380,378

(2) Consolidated Statements of Income

			(Thousands of yen)
		Three months ended	Three months ended
		June 30, 2022	June 30, 2023
Net sales	4,600,313	5,014,011
Cost of sales	3,552,309	3,882,300
Gross profit		1,048,003	1,131,710
Selling, general and administrative expenses		551,338	626,656
Operating profit		496,665	505,053
Non-operating income
Interest income	1,598	1,453
Dividend income	43,987	42,820
Gain on sale of investment securities	7,534	－
Subsidy income	465	27,291
Other	3,111	5,673
Total non-operating income		56,697	77,239
Non-operating expenses
Interest expenses	307	343
Taxes and dues	1,373	832
Loss on investments in investment partnerships	2,042	754
investment partnership management fee	1,387	522
Foreign exchange losses	1,425	－
Other	77	1,903
Total non-operating expenses		6,614	4,357
Ordinary profit		546,748	577,935
Extraordinary losses
Loss on retirement of non-current assets	0	0
Total extraordinary losses		0	0
Profit before income taxes		546,748	577,935
Income taxes		180,591	195,135
Profit		366,157	382,799
Profit attributable to
Profit attributable to owners of parent	366,157	382,799
Profit attributable to non-controlling interests	－	－
Other comprehensive income
Valuation difference on available-for-sale securities	△35,648	130,217
Remeasurements of defined benefit plans, net of tax	△1,411	△1,284
Total other comprehensive income		△37,059	128,933
Comprehensive income		329,097	511,733
Comprehensive income attributable to
Comprehensive income attributable to owners of parent	329,097	511,733
Comprehensive income attributable to non-controlling	－	－
interests