Consolidated Financial Results
for the Three Months Ended JUNE 30, 2022
(Under Japanese GAAP)
August 9, 2022 | |||
Company name: | SEIKO HOLDINGS CORPORATION | Listing: Tokyo | |
Securities code: | 8050 | URL: https://www.seiko.co.jp/en/ | |
Representative: | Shuji Takahashi, President | ||
Inquiries: | Shimesu Takizawa, Director, Executive Vice President and Chief Financial Officer | Telephone: +81-3-3563-2111 |
Scheduled date to file quarterly securities report: | August 12, 2022 (in Japanese) | |||||||||
Scheduled date to commence dividend payments: | - | |||||||||
Preparation of supplementary material on quarterly financial results: | Available | |||||||||
Holding of quarterly financial results briefing: | Scheduled (for institutional investors and analysts) | |||||||||
(Yen amounts are rounded down to millions, unless otherwise noted.) | ||||||||||
1. Consolidated financial results for the three months ended June 30, 2022 (from April 1, 2022 to June 30, 2022) | ||||||||||
(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, 2022 | 62,078 | 13.7 | 3,105 | 105.3 | 4,056 | 126.4 | 1,707 | - | ||
June 30, 2021 | 54,609 | 53.3 | 1,512 | - | 1,791 | - | 53 | (94.3) | ||
Note: Comprehensive income | For the three months ended June 30, 2022: | 6,837 million | [263.3%] | |||||||
For the three months ended June 30, 2021: | 1,882 million | [ 54.9%] |
Three months ended June 30, 2022 June 30, 2021
per share | per share |
41.40 | 41.40 |
1.30 | 1.30 |
(2) Consolidated financial position | ||||
Total assets | Net assets | Equity-to-asset ratio | ||
As of | Millions of yen | Millions of yen | ||
June 30, 2022 | 346,544 | 127,433 | 36.3 | |
March 31, 2022 | 327,533 | 121,624 | 36.7 | |
Reference: Equity | As of June 30, 2022: | million | ||
As of March 31, 2022: | 120,067 million |
2. Cash dividends
Annual dividends per share | |||||||||
First quarter-end | Second quarter-end | Third quarter-end | Fiscal year-end | Total | |||||
Fiscal year ended | Yen | Yen | Yen | Yen | Yen | ||||
March 31, 2022 | - | 25.00 | - | 25.00 | 50.00 | ||||
Fiscal year ending | |||||||||
March 31, 2023 | - | ||||||||
Fiscal year ending | |||||||||
March 31, 2023 | 37.50 | - | 37.50 | 75.00 | |||||
(Forecast) | |||||||||
Note: Revisions to the forecast of cash dividends most recently announced: None | |||||||||
3. Consolidated financial forecast for the fiscal year ending March 31, 2023 (From April 1, 2022 to March 31, 2023) | |||||||||
( Percentages indicate year-on-year changes.) | |||||||||
Net sales | Operating profit | Ordinary profit | Profit attributable to | Basic earnings | |||||
owners of parent | per share | ||||||||
Fiscal year ending | Millions of yen | % | Millions of yen | % | Millions of yen | % | Millions of yen | % | Yen |
March 31, 2023 | 245,000 | 3.2 | 10,000 | 14.0 | 10,500 | 5.6 | 7,500 | 16.9 | 181.83 |
Note: Revision to the financial forecast most recently announced: None |
* Notes
(1) Changes in significant subsidiaries during the period (changes in specified subsidiaies resulting in the change
in scope of consolidation): Not applicable | |
Newly included: Not applicable | Excluded: Not applicable |
- Adoption of accounting treatment specific to the preparation of quarterly consolidated financial statements: Not applicable
- Changes in accounting policies, changes in accounting estimates, and restatement
i) Changes in accounting policies due to revisions to acounting standards and other regulations | : Applicable |
ii) Changes in accounting policies due to other reasons | : Not applicable |
iii) Changes in accounting estimates | : Not applicable |
iv) Restatement | : Not applicable |
(Note) Refer to Changes in accounting policies, (3) Notes to Quarterly Consolidated Financial Statements, 2. Quarterly Consolidated Financial Statements and Major Notes, for detail.
- Number of issued shares (common shares)
- Total number of issued shares at the end of the period (including treasury shares)
As of June 30, 2022 | 41,404,261 | shares / | As of March 31, 2022 | 41,404,261 | shares | |
ii) Number of treasury shares at the end of period | ||||||
As of June 30, 2022 | 157,481 | shares / | As of March 31, 2022 | 160,535 | shares | |
iii) Average number of shares outstanding during the period (cumulative from the beginning of the fiscal year) | ||||||
Three months ended June 30, 2022 | 41,245,268 | shares | ||||
Three months ended June 30, 2021 | 41,232,331 | shares |
(Note) For the purpose of calculating the number of treasury shares at the end of period and the average numbers of shares outstanding during the period, treasury shares held in the Board Benefit Trust (BBT) are included in the treasury shares deducted in the calculation.
- 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
(Cautionary statements with respect to financial forecast)
The financial forecasts which appear in this report have been prepared based solely on the information which was available to the Company as of the date on which the report was released and the Company does not in any way guarantee the achievement of the forecasts. Actual results may differ significantly from the forecasted figures due to a number of factors. For assumptions used in the financial forecasts and instructions to use the financial forecasts, refer to (3) Consolidated Financial Forecast for the Fiscal Year Ending March 31, 2023 (FY2022), 1. Business Results, for detail.
SEIKO HOLDINGS CORPORATION
Consolidated Financial Statements: 3M FY2022
Page 3/17
Contents
1. Business Results
(1) | Overview .............................................................................................................. | 4 |
(2) | Financial Condition .............................................................................................. | 6 |
(3) | Consolidated Financial Forecast for the Fiscal Year Ending March 31, 2023 | |
(FY2022) ............................................................................................................. | 7 |
2. Quarterly Consolidated Financial Statements and Major Notes
(1) | Quarterly Consolidated Balance Sheets ............................................................... | 9 |
(2) | Quarterly Consolidated Statements of Income and Comprehensive Income ...... | 12 |
(3) | Notes to Quarterly Consolidated Financial Statements ....................................... | 14 |
(Going concern assumption) ................................................................................. | 14 | |
(Significant changes in shareholder's equity)......................................................... | 14 | |
(Changes in accounting policies) .......................................................................... | 14 | |
(Segment information) .......................................................................................... | 15 |
SEIKO HOLDINGS CORPORATION
Consolidated Financial Statements: 3M FY2022
Page 4/17
1. Business Results
(1) Overview
During the three-month period ended June 30, 2022, the world economy continued to recover, especially in Europe and the U.S., as the impact of the novel coronavirus eased. Meanwhile, the outlook for the world economy is becoming increasingly uncertain against the backdrop of factors such as rising prices primarily due to a concurrent global economic recovery since the previous fiscal year, as well as soaring international commodity prices due to tensions in Ukraine, supply chain disruptions in China due to the impact of the lockdown under the government's "zero-COVID" policy, and progress in monetary tightening in various countries.
The Japanese economy experienced positive growth as personal consumption, mainly in services, boosted the real GDP growth rate, despite rising prices primarily due to a significant depreciation of the yen.
(Millions of yen)
3M FY2020 | 3M FY2021 | 3M FY2022 | Variance | Variance | |
(a) | (b) | ① | ① - (a) | ① - (b) | |
Net sales | 35,612 | 54,609 | 62,078 | 26,466 | 7,469 |
Operating profit (loss) | (2,178) | 1,512 | 3,105 | 5,284 | 1,593 |
% | (6.1)% | 2.8% | 5.0% | - | 2.2pt |
Ordinary profit (loss) | (2,595) | 1,791 | 4,056 | 6,652 | 2,264 |
% | (7.3)% | 3.3% | 6.5% | - | 3.2pt |
Profit attributable to owners of parent | 942 | 53 | 1,707 | 765 | 1,654 |
% | 2.6% | 0.1% | 2.8% | 0.2pt | 2.7pt |
Exchange rate (v. JPY) | |||||
USD | 107.6 | 109.5 | 129.7 | 22.1 | 20.2 |
EUR | 118.6 | 131.9 | 138.3 | 19.7 | 6.4 |
Amid these circumstances, the Company launched the five-year Eighth Mid-Term Management Plan, "Seiko Milestone 145 = SMILE145," which began in the fiscal year ending March 31, 2023, and proceeded with business development centered on the three newly defined strategic domains of "Emotional Value Solutions Business (EVS Business)," "Devices Solutions Business (DS Business)," and "Systems Solutions Business (SS Business)."
In the EVS Business, the Watches Business and WAKO Business for the Japanese market recovered significantly on the back of improved personal consumption. In the Watches Business, net sales for overseas markets also grew in many countries and regions. The DS Business continued to increase net sales by steadily capturing favorable demand. In the SS Business, net sales exceeded those of the previous fiscal year, thanks to successful efforts to diversify business and expand the stock business.
SEIKO HOLDINGS CORPORATION
Consolidated Financial Statements: 3M FY2022
Page 5/17
As a result, for the three-month period ended June 30, 2022, the Group reported consolidated net sales of 62.0 billion yen, a year-on-year increase of 13.7%.
On an overall consolidated basis, domestic net sales came to 30.8 billion yen (a year-on-year increase of 9.0%), and overseas net sales were 31.1 billion yen (a year-on-year increase of 18.9%). Overseas net sales comprised 50.3% of net sales overall.
Advertising and promotion expenses for the three-month period ended June 30, 2022 increased by approximately 10% from the same period of previous fiscal year. Although other selling, general and administrative expenses also increased year on year, operating profit improved by 1.5 billion yen year on year to 3.1 billion yen (a year-on-year increase of 105.3%), as a result of a recovery in net sales. Non-operating income and expenses improved year on year, primarily due to share of profit of entities accounted for using equity method, and ordinary profit increased by 2.2 billion yen year on year to 4.0 billion yen (a year-on-year increase of 126.4%). A loss of 0.1 billion yen relating to the novel coronavirus was posted as extraordinary losses. As a result, profit attributable to owners of parent minus income taxes and profit attributable to non-controlling interests was 1.7 billion yen (profit of 53 million yen in the same period of the previous fiscal year).
The average exchange rates for the three-month period ended June 30, 2022 were 129.7 yen to 1 US dollar and 138.3 yen to 1 euro.
Results by Segment
Results for each segment are as follows:
To realize the Group 10-year vision, the Company has established three strategic domains (the Emotional Value Solutions domain, the Devices Solutions domain, and the Systems Solutions domain) based on the solutions it provides, and formulated and implemented strategies for each domain under the Eighth Mid-Term Management Plan, "SMILE145." Accordingly, reported segments have been changed from "Watches Business," "Electronic Devices Business," and "Systems Solutions Business" to the three strategic domains, "Emotional Value Solutions Business," "Devices Solutions Business," and "Systems Solutions Business," effective from the first quarter of the fiscal year ending March 31, 2023. The previous Watches Business and some of the businesses included in the previous Electronic Devices Business, together with the Time Creation Business and WAKO Business in the Time Creation, WAKO and other Businesses, make up the Emotional Value Solutions Business. The Devices Solutions Business consists of the businesses previously in the Electronic Devices Business, other than those that have been changed to the Emotional Value Solutions Business. There are no changes from the previous business in the Systems Solutions Business.
a. Emotional Value Solutions Business (EVS Business)
Net sales under the EVS Business came to 39.0 billion yen, a year-on-year increase of 6.1 billion yen, or 18.8%.
Net sales of completed watches in Japan grew significantly year on year, especially for Grand Seiko
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Seiko Holdings Corporation published this content on 18 August 2022 and is solely responsible for the information contained therein. Distributed by Public, unedited and unaltered, on 18 August 2022 02:33:01 UTC.