Financial Results Briefing for
3Q of the Fiscal Year Ended March 31, 2021 (Fiscal 2020)
-From April 1 to December 31, 2020-
February 10, 2021
The forward-looking statements contained in this material reflect the management's assumptions based on currently available information as of the date of announcement. Future changes in business environment and other factors may therefore cause differences with the actual situation.
©TOKYO KEIKI INC. All Rights Reserved
Summary of 3Q Results
(From April 1 to December 31, 2020)
The Hydraulics and Pneumatics Business saw a firm recovery trend on the Chinese market. However, market recovery was sluggish in Japan despite the bottoming out of demand decline on major markets due to COVID-19.
Full-year earnings forecast is for a slight increase in profits driven by a reduction in SG&A expenses.
The Defense & Communications Equipment Business launched new products for the semiconductor production equipment market.
Adopted new shareholder benefits program.
Launched new products on semiconductor production equipment market
"Solid state microwave power supply for film deposition equipment"
In addition to our existing products for etching equipment, in 3Q we released a microwave power supply for film deposition equipment.
Planning to start full-scale mass production beginning in FY2022.
We will apply our expertise in microwave technology to advance the development of semiconductor microfabrication and make continuous technology advancements towards the realization of Society 5.0, the vision for a future digital society.
Using a solid state device as the microwave power source instead of a conventional magnetron enables us to provide greater advantaqge, such as stable frequency characteristics and higher precision microfabrication.
Frequency characteristics | Comparison
【Magnetron】
Unnecessary components
are generated in the
vicinity of the required
frequency
【Solid state】
Allows for easy
selection of required
frequency only
Changes in consolidated profit & loss
【Net Sales】
【Operating Profit】
Full year3Q
(Million yen)
(Million yen)
46,692
47,440 (Forecast)
2,440
2018/3
2019/3
2020/3
2021/3
2018/3
2019/3
2020/3
△ 370 2021/3
*Full year forecast of Fiscal 2020 was changed in "Summary of financial results for the third-quarter of fiscal 2020" on February 10, 2021.
Quarterly changes in net sales
(Million yen)
15,766
2017/3 | 2018/3 | 2019/3 | 2020/3 | 2021/3-3Q |
¥41,394 million | ¥43,803 million | ¥46,692 million | ¥47,440 million | ¥28,718 |
million |
Quarterly changes in operating profits
(Million yen)
2,162
2017/3 | 2018/3 | 2019/3 | 2020/3 | 2021/3-3Q |
¥1,121 million | ¥1,319 million | ¥2,440 million | ¥1,875 million | ¥△370 |
million |
6
Equipment
*Net sales before adjustment.
*"Fire Extinguishing Systems Business", which has been included under "Other Businesses", is included under the
"Fluid Measurement Equipment Business" in Fiscal 2018. The amounts before Fiscal 2018 are updated to reflect the segment change.
*Full year forecast of Fiscal 2020 was changed in "Summary of financial results for the third-quarter of fiscal 2020"
on February 10, 2021.
Equipment
*Operating profits before adjustment.
*"Fire Extinguishing Systems Business", which has been included under "Other Businesses", is included under the
"Fluid Measurement Equipment Business" in Fiscal 2018. The amounts before Fiscal 2018 are updated to reflect the segment change.
*Full year forecast of Fiscal 2020 was changed in "Summary of financial results for the third-quarter of fiscal 2020"
on February 10, 2021.
3. Fiscal 2020 3Q Progress Fiscal 2020 3Q progress
(Million yen)
Net SalesOperating
ProfitOrdinary
ProfitProfit attributable to owners of parent
Forecast at the beginning of the fiscal year
Full year forecast
Remaining 43,000
14,282 46,700
Remaining 1,180
Remaining 1,174
Remaining 787
810 1,930
980 2,050
650 1,530
*Full year forecast of Fiscal 2020 was changed in "Summary of financial results for the third-quarter of fiscal 2020"
on February 10, 2021.
3. Fiscal 2020 3Q Progress Progress of net sales by segment
(Million yen)
Marine SystemsHydraulics and PneumaticsFluid Measurement EquipmentDefense and Communications EquipmentOthers
Forecast at the beginning of the fiscal year
Progression rate 46.2%
*Net sales before adjustment.
Full year forecast
8,590 9,200
10,380 12,500
3,950 4,200
16,730 17,000
3,360 3,700
*Full year forecast of Fiscal 2020 was changed in "Summary of financial results for the third-quarter of fiscal 2020" on February 10, 2021.
-Forecasting decreased net sales due to lower demand for new shipbuilding on the commercial vessel market and in overseas markets, particularly Asia, due to the impact of COVID-19.
-Forecasting decreased net sales due to sluggish recovery on mainstay markets, plastic processing machinery, machining tools, and construction machinery, in markets other than China as a result of the impact of COVID-19.
-The public-sector market is expected to trend roughly according to forecasts, but net sales are expected to decline because some projects in private-sector market and overseas markets will be postponed to next fiscal year due to COVID-19.
-There was an increase in sales volume of satellite communications antenna stabilizers, but net sales are expected to decline because some overseas projects and private-sector projects have been postponed to next fiscal year due to COVID-19.
-Railway Maintenance Business net sales forecast as largely on par with plans but forecasting decreased net sales in other businesses due to the suspension or postponement of certain projects as a result of the impact of COVID-19.
3. Fiscal 2020 3Q Progress
Progress of operating profit by segment
(Million yen)
Marine SystemsHydraulics and PneumaticsFluid Measurement EquipmentDefense and Communications EquipmentOthers
Forecast at the beginning of the fiscal year
△ 59
266
△ 109
Remaining 639
Progression rate 20.3%
*Operating profits before adjustment.
Full year forecastRemaining △56
Remaining △101
Remaining 279
Remaining 459
210 260
△580 310
580 620
350 290
350 540
*Full year forecast of Fiscal 2020 was changed in "Summary of financial results for the third-quarter of fiscal 2020" on February 10, 2021.
-Although operating profits improved compared to 2Q forecasts (+110 million yen), we forecast operating profits will fall below initial forecasts due to the impact of decreased net sales.
-Expecting an operating loss due to weaker net sales and deteriorating cost-of-sales ratio from decline in operation capacity.
-Although operating profits improved compared to 2Q forecasts (+60 million yen), we forecast operating profits will fall below initial forecasts due to the impact of decreased net sales.
-Forecasting increased operating profits compared to 2Q forecast (+30 million yen).
-The Railway Maintenance Business is expected to trend according to forecasts, but all others are expected to see a decline in operating profit due to weaker net sales.
4. Status of Orders Received and Order Backlog
The Hydraulics and Pneumatics Business experienced a large downturn in orders and order backlog due to declining demand in the plastic processing machinery market, machine tool market, and construction machinery market caused by COVID-19 from the second quarter on.
The order backlog for the Defense & Communications Equipment Business declined largely year on year after a peak in mass-production orders for radar warning receivers in the public-sector market, which continued up to the previous third quarter.
5. Consolidated Balance Sheets (Main accounting items only)
(Assets)
(Liabilities and net assets)
(Million yen) As of Mar 31, 2020 As of Dec 31, 2020 Amount of change | (Million yen) As of Mar 31, 2020 As of Dec 31, 2020 Amount of change |
Current assets 42,695 40,101 △2,593 | Current liabilities 21,736 19,571 △2,166 |
Cash and deposits 7,709 11,003 +3,294 | Notes and accounts payable 5,800 5,121 △679 |
Notes and accounts receivable 15,262 9,474 △5,787 | Short-term loans payable 11,692 10,935 △758 |
Electronically recorded monetary claims 4,404 4,168 △236 | Provision for bonuses 1,123 562 △560 |
Inventories 15,001 14,696 △305 | Non-current liabilities 3,197 3,302 +105 |
Accounts receivable 81 449 +367 | Long-term loans payable 1,076 1,213 +137 |
Other 240 315 +75 | Net defined benefit liability 1,229 1,180 △48 |
Non-current assets 11,882 12,177 +295 | Total liabilities 24,933 22,872 △2,061 |
Tangible assets 7,004 7,051 +47 | Shareholders' equity 29,065 28,538 △527 |
Intangible assets 0 13 +13 | Retained earnings 22,542 21,995 △547 |
Investment securities 2,991 3,416 +424 | Total net assets 29,644 29,407 △237 |
54,577 52,279 △2,298 | Total liabilities and net assets 54,577 52,279 △2,298 |
Accounts receivable-trade (notes and accounts receivable and electronically recorded monetary claims)
decreased significantly thanks to the collection of accounts receivable for the Defense & Communications Equipment Business that had increased at the end of the previous fiscal year. (down 6,023 million yen compared to end of previous fiscal year)
Liabilities decreased due to a decrease in purchase liabilities (notes and accounts payable) and repayment of loans payable (long- and short-term liabilities collectively decreased by 621 million yen)
Retained earnings decreased due to dividends (409 million yen) and net loss attributable to owners of parent
©TOKY(1O3K7EmIKiIllIioNnC.yAelnl )R.ights Reserved
Profit returns to shareholders
[Basic policy]
Implement stable returns to shareholders while maintaining balance with financial capacity.
Regarding the use of internal reserves
Allocate investments aimed at "new technology research" "new product development," "productivity improvement," "overseas base expansion," "human resource development," "organizational capacity building," "management resource enhancement," etc., which serve as the sources for profitability (earning power), in
order to achieve sustainable growth and improve medium-to-long-term corporate value, while taking capital efficiency into account.
Dividend for the last five years and forecast for Fiscal 2020
2016/3 | 2017/3 | 2018/3 | 2019/3 | 2020/3 | 2021/3 (Forecast) | |
Annual dividend per share (yen) | 5.00(Common, 4 + Commemorative, 1) | 4.00 | 20.00 | 25.00 | 25.00 | 25.00 |
Payout ratio (consolidated) (%) | 33.2 | 46.8 | 29.6 | 21.3 | 28.8 | 63.0 |
Total return ratio (consolidated) (%) | 39.8 | 46.8 | 37.1 | 25.6 | 34.7 | ― |
*From Fiscal 2017 (2018/3) onward, dividend amounts are those after consolidation of shares.
(Dividend amount before consolidation of shares is 1/5 of amount shown.)
Status of recent acquisition of treasury shares
May 2014 | May 2015 | Nov 2015 | Nov 2017 | Feb 2019 | Nov 2019 | |
Total number of reacquired shares* (yen) | 310,000 | 300,000 | 335,000 | 58,000 | 76,800 | 84,700 |
Acquisition cost (million yen) | 84 | 84 | 84 | 85 | 85 | 85 |
*From Nov 2017 onward, total numbers of reacquired shares are those after consolidation of shares.
Shareholder benefits program
1) Purpose of adoption
We established the new TOKYO KEIKI Premium Benefits Club as a new shareholder benefits program to express our gratitude for the ongoing support of our shareholders, to further increase the appeal of investing in our stock, and to increase shareholders interested in medium- to long-term stock retention. Through the adoption of this program, we will work to further increase our communication with our shareholders.
2)Overview
-Eligibility for shareholders retaining 3 or more trading units (300 shares) as of the end of March each year.
-Eligible shareholders are awarded points based on their number of retained shares. Shareholders can access the TOKYO KEIKI Premium Benefits Club members-only website to select from over 4,000 products for which they can exchange points. The points can be also donated to social contribution activities. Alternatively, shareholders can exchange points for WILLsCoin, the universal shareholder benefits coin. WILLsCoin balances can be added to the points earned through the stock benefits programs of other companies enrolled in the Premium Benefits Club.
Retained shares | Awarded points | Allocation timing |
300 shares or less | 0 points | ー |
300 to 499 shares | 3,000 points | Annually in May |
500 to 699 shares | 6,000 points | |
700 to 999 shares | 9,000 points | |
1,000 to 2,999 shares | 20,000 points | |
3,000 or more shares | 50,000 points |
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Tokyo Keiki Inc. published this content on 10 March 2021 and is solely responsible for the information contained therein. Distributed by Public, unedited and unaltered, on 10 March 2021 06:12:02 UTC.