Zenrin : Financial Summary for the First 3 Quarters of Fiscal 2023

Financial Summary for the First 3 Quarters of Fiscal 2023 [Japanese GAAP] [Consolidated]

Name of listed company	ZENRIN CO., LTD.
Securities code	9474	URL https://www.zenrin.co.jp/
Representative	[Title]	President and CEO
Contact	[Title]	Executive Officer and Head of
Corporate Management Division

Scheduled date of submission of quarterly securities report: Scheduled date of commencement of dividend payments:

January 31, 2023

Stock exchange listings: Tokyo and Fukuoka

[Name] Zenshi Takayama

[Name] Yumiko Toshima

TEL [phone]

February 1, 2023

－

Preparation of supplementary explanatory materials on quarterly results:	Yes
Holding of briefing session on quarterly results:	No

(Amounts are rounded down to the nearest million yen)

1. Consolidated Results of Operations in the First 3 Quarters of Fiscal 2023

ZENRIN's the first 3 quarters of fiscal 2023 is the period from April 1, 2022 to December 31, 2022.

(1) Consolidated Business Performance [cumulative]

[%figures represent the increase (decrease) compared to the same period of the previous fiscal year)]

		Net sales	Operating income	Ordinary income	Profit attributable to
		owners of parent
		million yen	%	million yen	%	million yen		%	million yen	%
The first 3 quarters of fiscal 2023	40,210	0.6	(851)	－	(643)		－	180	(91.3%)
The first 3 quarters of fiscal 2022	39,990	ー	61	－	321		－	2,067	－
[Note] Comprehensive income	The first 3 quarters of fiscal 2023: (1,870) million yen [ －%]
The first 3 quarters of fiscal 2022: 8,113 million yen [ －%]
		Earnings per share	Diluted earnings per
				share
			yen		yen
The first 3 quarters of fiscal 2023		3.34		2.75
The first 3 quarters of fiscal 2022		37.79		35.55

[Note] As the "Accounting Standard for Revenue Recognition" (ASBJ Statement No. 29, March 31, 2020), etc. have been applied from the beginning of the first quarter of fiscal 2022, the amounts for the said quarter reflect the application of the said accounting standard, etc., and the increase (decrease) compared to the same period of the previous fiscal year is not stated.

(2) Consolidated Financial Position

		Total assets	Net assets	Ratio of equity to total assets
		million yen		million yen	%
The third quarter of fiscal 2023	70,309		44,902	63.7
Fiscal 2022		79,164		48,746	61.3
[Reference] Equity	The third quarter of fiscal 2023: 44,778 million yen	Fiscal 2022: 48,500 million yen

2. Dividends

			Annual dividend
	End of	End of	End of	Year-end	Total
	the first quarter	the second quarter	the third quarter
	yen	yen	yen	yen	yen
Fiscal 2022	－	12.50	－	13.50	26.00
Fiscal 2023	－	13.50
Fiscal 2023 [forecast]			－	13.50	27.00

[Note] Revision from most recently announced forecast for dividends: None

3. Forecast for Consolidated Results of Operations in Fiscal 2023

ZENRIN's fiscal 2023 is the period from April 1, 2022 to March 31, 2023.

[% figures represent the increase (decrease) compared to the previous fiscal year]

	Net sales		Operating income	Ordinary income	Profit attributable to	Earnings
		owners of parent	per share
	million yen		%	million yen	%	million yen	%	million yen	%	yen
Fiscal year	60,500		2.4	3,000	12.3	3,200	5.1	2,600	(28.9)	48.16

[Note] Revision from most recently announced forecast for results of operations: None

*Disclaimer: 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.

ZENRIN Co., Ltd. (9474)

Financial Summary for the First 3 Quarters of Fiscal 2023

1. Qualitative Information on Quarterly Results

(1) Explanation of Business Performance

In the first three quarters of fiscal 2023 (from April 1 to December 31, 2022), the Japanese economy saw a return to normal conditions. Despite a resurgence in the COVID-19 pandemic, restrictions on behavior eased, enabling moves toward normalization of socioeconomic activity. Internationally, shortfalls in supply of semiconductors continued worldwide, while high energy and raw-material prices and rapid depreciation of the Japanese yen raised the cost of living. Concerns about long-term interest rates also mounted. The future outlook remains as uncertain as ever.

Net sales presented a mixed picture. In the automotive-related business, sales of data for in-car navigation systems continued the decline seen in the first two quarters, impacted by adjustments in automobile production. On the other hand, in IoT-related business and marketing solutions- related business, orders received increased.

In terms of costs, there was an increase in cost of sales due to changes in the composition of sales, as well as increase in expenses for developing map databases to improve precision of location data. Moreover, factors such as the normalization of socioeconomic activity and rising cost of energy and raw materials caused operating expenses to grow.

As a result, the ZENRIN Group in the first three quarters of fiscal 2023 reported net sales of 40,210 million yen (increased 220 million yen, or up 0.6%, compared to the same period of the previous fiscal year), operating loss of 851 million yen (downturn of 913 million yen compared to the same period of the previous fiscal year), ordinary loss of 643 million yen (downturn of 965 million yen compared to the same period of the previous fiscal year). Profit attributable to owners of parent declined 180 million yen from the previous fiscal year (decreased 1,887 million yen, or down 91.3%, compared to the same period of the previous fiscal year). Contributing factors include appropriation of extraordinary income from gain on sale of non-current assets and gain on sale of investment in capital of subsidiaries.

Reasons for the decline in profit attributable to owners of parent in comparison with the same period of the previous fiscal year include appropriation of extraordinary income from sale of investment securities in the same period of the previous fiscal year.

Please note that past net sales of the ZENRIN Group have shown trends of large seasonal fluctuations and sales concentrating in the fourth quarter.

It should be noted that, information by business segment is omitted because the ZENRIN Group's reportable segment is a single segment.

(2) Explanation of Financial Position

Total assets at the end of the third quarter of fiscal 2023 under review were 70,309 million yen (decreased 8,854 million yen, or down 11.2%, compared to the end of the previous fiscal year). Contributing factors include declines in notes receivable, accounts receivable and contract assets as a result of seasonal fluctuations, as well as declines in market valuation of investment securities.

Liabilities were 25,406 million yen (decreased 5,010 million yen, or down 16.5%, compared to the end of the previous fiscal year). Contributing factors include a decline in accounts payable as a result of seasonal fluctuations, as well as declines in short-term loans payable and income tax payable.

Net assets were 44,902 million yen (decreased 3,843 million yen, or down 7.9%, compared to the end of the previous fiscal year),. Although profit attributable to owners of parent was appropriated, dividends on earned surplus and loss on valuation of marketable securities from market valuation both declined.

As a result, the ratio of equity to total assets at the end of the third quarter of fiscal 2023 was 63.7% (up 2.4 points compared to the end of the previous fiscal year).

1. Explanation of Forecast for Consolidated Results of Operations and Other Forward- Looking Statements
   The Company has decided to keep the full-year forecast for the fiscal 2023 announced on April 28, 2022, since there are many uncertainties in the environment surrounding ZENRIN group, such as automobile production adjustments due to global semiconductor supply shortages.

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ZENRIN Co., Ltd. (9474)

Financial Summary for the First 3 Quarters of Fiscal 2023

2. Quarterly Consolidated Financial Statements

1. Quarterly Consolidated Balance Sheet

			[Unit: million yen]
		Fiscal 2022	The third quarter of
		fiscal 2023
		As of March 31, 2022	As of December 31, 2022
Assets
Current assets
Cash and deposits	16,857	14,460
Notes and accounts receivable - trade, and	12,593	8,676
contract assets
Electronically recorded monetary claims -	106	193
operating
Securities	5	7
Merchandise and finished goods	962	874
Work in process	272	1,045
Raw materials and supplies	109	93
Other	1,363	1,667
Allowance for doubtful accounts	(4)	(3)
Total current assets	32,267	27,014
Non-current assets
Property, plant and equipment	13,194	13,156
Intangible assets
Goodwill	278	284
Software	9,958	11,152
Other	3,871	2,567
Total intangible assets	14,108	14,003
Investments and other assets
Investment securities	12,339	10,026
Other	7,358	6,209
Allowance for doubtful accounts	(105)	(101)
Total investments and other assets	19,593	16,134
Total non-current assets	46,896	43,294
Total assets		79,164	70,309

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ZENRIN Co., Ltd. (9474)

Financial Summary for the First 3 Quarters of Fiscal 2023

			[Unit: million yen]
		Fiscal 2022	The third quarter of
		fiscal 2023
		As of March 31, 2022	As of December 31, 2022
Liabilities
Current liabilities
Accounts payable - trade	3,153	1,994
Short-term loans payable	2,066	889
Current portion of bonds payable	8,047	8,011
Income taxes payable	1,153	441
Provision for directors' bonuses	124	31
Asset retirement obligations	10	－
Other	13,781	12,842
Total current liabilities	28,337	24,210
Non-current liabilities
Long-term loans payable	18	30
Provision for directors' retirement benefits	128	104
Provision for management board benefit trust	50	39
Net defined benefit liability	281	271
Asset retirement obligations	67	67
Other	1,532	683
Total non-current liabilities	2,079	1,196
Total liabilities	30,417	25,406
Net assets
Shareholders' equity
Capital stock	6,557	6,557
Capital surplus	12,484	12,451
Retained earnings	26,084	24,799
Treasury shares	(4,062)	(4,478)
Total shareholders' equity	41,064	39,330
Accumulated other comprehensive income
Valuation difference on available-for-sale	6,306	4,504
securities
Foreign currency translation adjustment	155	222
Remeasurements of defined benefit plans	973	721
Total accumulated other comprehensive	7,435	5,448
income
Non-controlling interests	246	123
Total net assets	48,746	44,902
Total liabilities and net assets		79,164	70,309

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ZENRIN Co., Ltd. (9474)

Financial Summary for the First 3 Quarters of Fiscal 2023

1. Quarterly Consolidated Statement of Income and Quarterly Consolidated Statement of Comprehensive Income

Quarterly Consolidated Statement of Income [cumulative]

				[Unit: million yen]
	The first 3 quarters of	The first 3 quarters of
		fiscal 2022	fiscal 2023
	From:	April 1, 2021	From:	April 1, 2022
	To:	December 31, 2021	To:	December 31, 2022
Net sales	39,990		40,210
Cost of sales		24,137		25,006
Gross profit		15,852		15,204
Selling, general and administrative expenses
Personnel expenses	9,297		9,443
Provision for directors' bonuses	25		32
Retirement benefit expenses	223		200
Provision of allowance for doubtful accounts	－		2
Other		6,245		6,376
Total selling, general and administrative expenses		15,791		16,056
Operating profit (loss)		61		(851)
Non-operating income
Interest income	6		4
Dividend income	60		82
Other		288		247
Total non-operating income		355		334
Non-operating expenses
Interest expenses	6		7
Non-deductible consumption taxes	－		92
Foreign exchange losses	69		－
Other		19		25
Total non-operating expenses		95		126
Ordinary profit (loss)		321		(643)
Extraordinary income
Gain on sale of non-current assets	0		893
Gain on sale of investments in capital of	－		436
subsidiaries
Other		2,494		365
Total extraordinary income		2,495		1,695
Extraordinary losses
Loss on sales and retirement of non-current	154		25
assets
Impairment losses	19		13
Loss on valuation of investment securities	1		391
Loss on liquidation of subsidiaries		－		212
Total extraordinary losses		176		643
Profit before income taxes		2,640		408
Income taxes - current	538		611
Income taxes - deferred		78		(319)
Total income taxes		617		292
Profit		2,023		116
Loss attributable to non-controlling interests		(44)		(63)
Profit attributable to owners of parent		2,067		180

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