Topcon : FY2020 Financial Results posted

Consolidated Financial Results for FY2020 Ended March 2021

(Japanese GAAP)

TOPCON CORPORATION

Release Date: May 11, 2021

1. Summary of Business Results for FY2020 ended March 2021 (April 1, 2020 - March 31, 2021)

• indicate year-to-year increase (decrease)

(1) Consolidated business results					(Rounded down to the nearest million yen)
		Net sales		Operating profit	Ordinary profit	Profit attributable to
			owners of parent
		million yen		%	million yen	%	million yen		%	million yen		%
FY2020 ended March 2021		137,247		(1.2)	6,593	22.5	5,587		93.0	2,376		154.0
FY2019 ended March 2020		138,916		(6.6)	5,381	(60.4)	2,895		(74.8)	935		(85.7)
Note:	Comprehensive income		7,463 million yen ( － % )
	FY2020 ended March 2021
	FY2019 ended March 2020		(2,013) million yen ( － % )
		Basic earnings per	Diluted earnings	Rate of return on	Ordinary profit to	Operating profit to
		share	per share	equity		total assets ratio	net sales ratio
			yen		yen		%			%	%
FY2020 ended March 2021		22.59		22.59		3.6			3.4	4.8
FY2019 ended March 2020		8.87		8.87		1.4			1.8	3.9
Note:	Share of	profit (loss) of entities	accounted for using	equity method
	FY2020 ended March 2021		(296) million yen
	FY2019 ended March 2020		(416) million yen
(2) Consolidated financial position
		Total assets		Net assets	Shareholders' equity	Shareholders' equity
				ratio		per share
			million yen		million yen				%				yen
FY2020 ended March 2021		168,210		70,687				41.2			659.31
FY2019 ended March 2020		161,721		64,659				39.0			600.03
Note:	Shareholders' equity		69,351 million yen
	FY2020 ended March 2021
	FY2019 ended March 2020		63,100 million yen
(3) Consolidated cash flows
		Cash flows from	Cash flows from	Cash flows from	Cash and cash equivalents
		operating activities	investing activities	financing activities	at end of period
			million yen		million yen				million yen		million yen
FY2020 ended March 2021		19,439		(9,226)				(6,195)			20,446
FY2019 ended March 2020				7,944		(6,806)				1,995			15,784

2. Dividends

		Dividends per share		Dividends paid		Dividends		Dividends on
						(Annual)		payout ratio		equity
	end of 1st qtr	end of 2nd qtr	end of 3rd qtr	year-end	Total		(Consolidated)		(Consolidated)
	yen	yen	yen	yen	yen	million yen		%		%
FY2019 ended March 2020	－	14.00	－	10.00	24.00	2,523		270.7		3.8
FY2020 ended March 2021	－	0.00	－	10.00	10.00	1,051		44.3		1.6
FY2021 ending March 2022 (forecast)	－	10.00	－	10.00	20.00			42.0

3. Business Forecasts for FY2021 ending March 2022 (April 1, 2021 - March 31, 2022)

								% indicate year-to-year increase (decrease)
	Net sales		Operating profit	Ordinary profit		Profit attributable to	Basic earnings
			owners of parent	per share
Annual	million yen		%	million yen	%	million yen		%	million yen	%	yen
149,000		8.6	10,000	51.7	8,000		43.2	5,000	110.4	47.54

Note:	The forecasts above were prepared on the premise of future forecasts available at the time of the release of this document, such as trends
	of business, competition environment, and currency exchange rates. Due to unforeseen circumstances, however, the actual results may
	differ from these forecast data.

Consolidated financial statements

Consolidated balance sheets

		(Unit: million yen)
	FY2019	FY2020
	ended March 2020	ended March 2021
Assets
Current assets	16,134	20,815
Cash and deposits
Notes and accounts receivable - trade	40,631	42,028
Merchandise and finished goods	21,063	17,570
Work in process	1,510	1,537
Raw materials and supplies	13,188	13,298
Other	8,555	9,665
Allowance for doubtful accounts	(2,555)	(2,973)
Total current assets	98,528	101,942
Non-current assets
Property, plant and equipment	7,078	9,051
Buildings and structures, net
Machinery, equipment and vehicles, net	2,687	3,204
Land	3,100	3,363
Construction in progress	1,374	541
Other, net	6,497	6,359
Total property, plant and equipment	20,738	22,520
Intangible assets	10,856	9,307
Goodwill
Software	10,821	10,568
Other	7,004	8,079
Total intangible assets	28,683	27,955
Investments and other assets	2,301	4,407
Investment securities
Long-term loans receivable	695	358
Deferred tax assets	9,679	9,873
Other	1,108	1,168
Allowance for doubtful accounts	(15)	(14)
Total investments and other assets	13,770	15,792
Total non-current assets	63,192	66,268
Total assets	161,721	168,210
Liabilities
Current liabilities	12,981	12,880
Notes and accounts payable - trade
Short-term borrowings	26,831	12,530
Lease obligations	1,260	1,357
Accrued expenses	8,655	12,375
Income taxes payable	1,159	1,005
Provision for product warranties	1,124	1,009
Current portion of bonds payable	10,000	－
Other	6,353	7,902
Total current liabilities	68,366	49,062
Non-current liabilities	10,000	30,000
Bonds payable
Long-term borrowings	4,397	5,162
Lease obligations	4,883	3,937
Deferred tax liabilities	2,388	3,049
Provision for retirement benefits for directors (and other officers)	44	51
Retirement benefit liability	5,263	4,582
Other	1,718	1,677
Total non-current liabilities	28,695	48,460
Total liabilities	97,062	97,522
Net assets
Shareholders' equity	16,680	16,697
Share capital
Capital surplus	20,630	20,599
Retained earnings	35,749	37,074
Treasury shares	(3,170)	(3,170)
Total shareholders' equity	69,889	71,200
Accumulated other comprehensive income	434	1,095
Valuation difference on available-for-sale securities
Deferred gains or losses on hedges	(47)	(14)
Foreign currency translation adjustment	(6,278)	(2,360)
Remeasurements of defined benefit plans	(897)	(569)
Total accumulated other comprehensive income	(6,788)	(1,849)
Share acquisition rights	58	67
Non-controlling interests	1,499	1,269
Total net assets	64,659	70,687
Total liabilities and net assets
161,721	168,210

Consolidated statements of income

		(Unit: million yen)
	FY2019	FY2020
	ended March 2020	ended March 2021
Net sales	138,916	137,247
Cost of sales	66,283	69,351
Gross profit	72,632	67,895
Selling, general and administrative expenses	67,251	61,301
Operating profit	5,381	6,593
Non-operating income
Interest income	182	92
Dividend income	67	54
Subsidy income	－	142
Other	226	560
Total non-operating income	476	849
Non-operating expenses
Interest expenses	915	601
Share of loss of entities accounted for using equity method	416	296
Foreign exchange losses	531	179
Provision of allowance for doubtful accounts	562	－
Other	537	776
Total non-operating expenses	2,962	1,855
Ordinary profit	2,895	5,587
Extraordinary income
Gain on sale of investment securities	572	－
Total extraordinary income	572	－
Extraordinary losses
Free repair expense	－	125
Impairment losses	－	91
Extra retirement payments	－	334
Business structure reform expenses	－	115
Loss on sale of shares of subsidiaries	554	－
Total extraordinary losses	554	667
Profit before income taxes	2,912	4,919
Income taxes - current	2,293	2,065
Income taxes - deferred	(252)	365
Total income taxes	2,041	2,430
Profit	871	2,489
Profit (loss) attributable to non-controlling interests	(64)	113
Profit attributable to owners of parent	935	2,376

Consolidated statements of cash flows

		(Unit: Million Yen)
	FY2019	FY2020
	ended March 2020	ended March 2021
Cash flows from operating activities	2,912	4,919
Profit before income taxes
Depreciation	6,757	7,416
Amortization of goodwill	1,999	1,858
Increase (decrease) in allowance for doubtful accounts	502	304
Interest and dividend income	(249)	(146)
Interest expenses	915	601
Loss on retirement of property, plant and equipment	14	39
Loss (gain) on valuation of investment securities	－	89
Share of loss (profit) of entities accounted for using equity method	416	296
Loss (gain) on sale of investment securities	(572)	－
Loss (gain) on sale of shares of subsidiaries	554	－
Free repair expense	－	125
Impairment losses	－	91
Extra retirement payments	－	334
Decrease (increase) in retirement benefit asset	63	110
Increase (decrease) in retirement benefit liability	(1,057)	(65)
Decrease (increase) in trade receivables	3,212	(461)
Decrease (increase) in inventories	(5,181)	4,043
Decrease (increase) in prepaid expenses	238	(328)
Increase (decrease) in trade payables	1,269	(244)
Increase (decrease) in accrued expenses	(680)	2,677
Other, net	8	740
Subtotal	11,124	22,402
Interest and dividends received	276	163
Interest paid	(915)	(589)
Extra retirement payments	－	(309)
Income taxes paid	(2,540)	(2,227)
Net cash provided by (used in) operating activities	7,944	19,439
Cash flows from investing activities	(57)	(56)
Payments into time deposits
Proceeds from withdrawal of time deposits	619	56
Purchase of property, plant and equipment	(4,954)	(5,262)
Proceeds from sale of property, plant and equipment	108	173
Purchase of intangible assets	(3,371)	(4,653)
Purchase of investment securities	(330)	(1,383)
Proceeds from sale of investment securities	1,228	149
Payments for acquisition of businesses	－	(44)
Proceeds from sale of businesses	－	1,412
Decrease (increase) in short-term loans receivable	28	71
Long-term loan advances	(16)	(4)
Proceeds from collection of long-term loans receivable	9	321
Other, net	(71)	(6)
Net cash provided by (used in) investing activities	(6,806)	(9,226)

Cash flows from financing activities	10,359	(12,244)
Net increase (decrease) in short-term borrowings
Proceeds from long-term borrowings	－	2,248
Repayments of long-term borrowings	(2,751)	(3,376)
Proceeds from issuance of bonds	－	20,000
Redemption of bonds	－	(10,000)
Purchase of treasury shares	(1,079)	(0)
Dividends paid	(2,744)	(1,051)
Dividends paid to non-controlling interests	(54)	(31)
Repayments of lease obligations	(1,426)	(1,509)
Proceeds from sale of shares of subsidiaries not resulting in change in	－	28
scope of consolidation
(308)	(139)
Purchase of shares of subsidiaries not resulting in change in scope of consolidation
Other, net	－	(119)
Net cash provided by (used in) financing activities	1,995	(6,195)
Effect of exchange rate change on cash and cash equivalents	(285)	645
Net increase (decrease) in cash and cash equivalents	2,848	4,662
Cash and cash equivalents at beginning of period	12,935	15,784
Cash and cash equivalents at end of period	15,784	20,446