Takachiho Koheki : Financial Results for the Year Ended







Financial Results for the Year Ended March 2022 [Based on the Japanese GAAP] (Consolidated)

May 13, 2022

Name of the company

Takachiho Koheki Co., Ltd.

Stock market:

Tokyo Stock Exchange, Prime Market

Code No.:

2676

URL:

https://www.takachiho-kk.co.jp/

Representative (job title): Takanobu Ide, (President and CEO)

Contact person (job title): Masaya Iwamoto, (General Manager of Administrative Department)

TEL:

+81-3-3355-1111

Date of annual general meeting of shareholders:

June 28, 2022

Date of commencement of dividend payment:

June 29, 2022

Registration date of annual securities report:

June 29, 2022

Additional explanation materials:

Yes

Financial results briefing:

Yes (For institutional investors and analysts)

(Amounts less than one million yen are rounded down.)

1. Consolidated Financial Results for the Year Ended March 2022 (from April 1, 2021, to March 31, 2022)

(1) Consolidated Operating Results

(Percent figures represent year-on-year changes)

Net sales

Operating income

Ordinary income

Net income attributable to

owners of parent

million yen

%

million yen

%

million yen

%

million yen

%

FY 2021

20,784

0.9

1,024

15.6

1,247

34.6

878

60.2

FY 2020

20,591

(0.1)

886

12.4

926

4.6

548

187.7

Note: Comprehensive income: 1,041 million yen for FY 2021 (29.9%)

801 million yen for FY 2020

(-%)

Net income

Fully diluted net income

Return on equity

Ratio of ordinary

Ratio of operating

per share

per share

income to total assets

income to net sales

Yen

Yen

%

%

%

FY 2021

98.61

98.42

6.0

6.2

4.9

FY 2020

61.56

4.0

4.9

4.3

Reference: Equity in earnings (losses) of affiliates

6 million yen for FY 2021

-2 million yen for FY 2020

(2) Consolidated Financial Position

Total assets

Net assets

Equity ratio

Net assets per share

million yen

million yen

%

Yen

FY 2021

20,593

15,034

72.9

1,680.73

FY 2020

19,473

14,174

72.7

1,590.28

Reference: Owner’s equity

15,014 million yen for FY 2021

14,162 million yen for FY 2020

(3) Consolidated cash flow

Cash flow from

Cash flow from

Cash flow from

Cash and cash equivalents

operating activities

investing activities

financing activities

at end of period

million yen

million yen

million yen

million yen

FY 2021

1,184

(393)

(189)

5,608

FY 2020

753

(774)

(214)

4,900

2. Dividends

Annual dividends per share

Total cash

Payout ratio

Dividends to

dividends

net assets

At 1st

At 2nd

At 3rd

At fiscal

Total

(Consolidated)

(total)

(Consolidated)

quarter end

quarter end

quarter end

year end

Yen

Yen

Yen

Yen

Yen

million yen

%

%

FY 2020

12.00

13.00

25.00

222

40.6

1.6

FY 2021

12.00

43.00

55.00

494

55.8

3.4

FY 2022 forecast

24.00

79.00

103.00

100.8

Note 1: Breakdown of dividends at fiscal year-end in FY 2021: ordinary dividends 28.00 yen, commemorative dividends 15.00 yen

  1. The total amount of dividends includes dividends paid on the shares of the Company held by Custody Bank of Japan, Ltd. (Trust E Unit) (816,000 yen for FY 2021).
  2. Our dividend policy for FY 2021 is to have a consolidated payout ratio of 40% or more, with a stable dividend amount (24 yen per year) as the lower limit. Our dividend policy for FY 2022 is to have a consolidated payout ratio of 100%, with a stable dividend amount (24 yen per year) as the lower limit, as announced in the new Medium-term Management Plan.

3. Forecast of Consolidated Operating Results for FY 2022 (from April 1, 2022, to March 31, 2023)

(Percent figures represent year-on-year changes)

Net Sales

Operating income

Ordinary income

Net income attributable to

Net income

owners of parent

per share

million yen

%

million yen

%

million yen

%

million yen

%

Yen

FY2022

10,300

7.5

450

4.3

450

(8.2)

320

(4.2)

35.82

1st half

FY 2022

22,500

8.3

1,300

26.9

1,300

4.2

920

4.7

102.99

*Notes:

  1. Changes to principal subsidiaries during the period (changes to specified subsidiary companies accompanying a change to the scope of consolidation): None
  2. Changes in accounting policies and estimates, and retrospective restatement:

(i)

Changes in accounting policies due to amendments of accounting standards s, etc.:

: Yes

(ii)

Changes in accounting policies other than (i) above

: None

(iii)

Changes in accounting estimates

: None

(iv)

Retrospective restatement

: None

(Note) For more details, see p. 22,”5. Consolidated Financial Statements: (7) Notes on Consolidated Financial Statements: (Change in accounting policy)” in the attachments.

  1. Number of shares issued (common stock)
    1. Number of shares issued at end of period (Including treasury shares)
  1. Number of treasury shares at end of period
    (iii) Average number of shares outstanding during the period

FY 2021

10,171,800 shares

FY 2020

10,171,800 shares

FY 2021

1,238,578 shares

FY 2020

1,266,078 shares

FY 2021

8,908,021 shares

FY 2020

8,905,732 shares

Note: The number of treasury stocks to be deducted in calculating the number of treasury stocks at end of period and the average number of shares during the period includes the shares of the Company held by Custody Bank of Japan, Ltd. (Trust E Unit) as a trust property related to the “Board Benefit Trust (BBT)” system (68,000 shares).

(Reference) Non-consolidated financial results

1. Non-consolidated financial results for the Year Ended March 31, 2022 (from April 1, 2021, to March 31, 2022)

(1) Non-consolidated Operating Results

(Percent figures represent year-on-year changes)

Net Sales

Operating income

Ordinary income

Net income

million yen

%

million yen

%

million yen

%

million yen

%

FY 2021

16,810

0.5

884

(17.8)

1,228

(11.0)

878

16.8

FY 2020

16,721

8.6

1,075

32.5

1,380

44.9

752

30.7

Net income

Fully diluted net income

per share

per share

Yen

Yen

FY 2021

98.64

98.44

FY 2020

84.44

(2) Non-consolidated Financial Position

Total assets

Net assets

Capital adequacy ratio

Net assets per share

million yen

million yen

%

Yen

FY 2021

20,502

15,815

77.0

1,768.15

FY 2020

19,510

15,044

77.0

1,687.87

Reference: Owner’s equity:

15,795 million yen for FY 2021

15,031 million yen for FY 2020

* This financial summary is not subject to audit procedure.

*Appropriate use of forecasts and other items warranting special mention: (Note on the forecasts, etc.)

The operating result forecast and other forward-looking statements contained in this report are based on the information currently available to the Company and certain assumptions the Company considers reasonable, and the Company by no means guarantees such achievement. In addition, results may differ significantly from forecasts due to a variety of factors. About the assumptions for result forecasts, see P. 2 of the attached material, 1. Overview of Operating Results/Financial Position (1) Overview of Operating Results.

(How to obtain supplementary financial statements)

We are planning to hold a briefing on financial results for institutional investors and analysts on Tuesday, May 24, 2022. The financial results briefing materials distributed at this briefing will be posted on our website immediately after the event.

○Table of Contents to the Attached Materials

1.

Overview of Operating Results/Financial Position

……………………………………………

2

(1)

Overview of Operating Results

……………………

2

(2)

Overview of financial Position

……………………………………………

4

(3)

Basic Policy for distribution of profit and the Dividends for the current and next fiscal years

…………

5

2.

Corporate Group Status

……………………………………………

6

3.

Management Policies

……………………………………………

10

4.

Basic stance relating to the selection of accounting standards

……………………………………………

11

5.

Consolidated financial statements

……………………………………………

12

(1)

Consolidated Balance Sheet

……………………………………………

12

(2)

Consolidated Income Statement and Statements of Comprehensive Income

…………

14

(Consolidated Income Statements)

……………………………………………

14

(Consolidated Statements of Comprehensive Income)

……………………………………………

15

(3)

Consolidated Statements of Changes in Net Assets

……………………………………………

16

(4)

Consolidated Statement of Cash Flow

……………………………………………

18

(5)

Note on going-concern assumption

……………………………………………

19

(6)

Significant matters constituting the basis for the preparation of consolidated financial statements

………

19

(7)

Notes on Consolidated Financial Statements

……………………………………………

22

(Change in accounting policy)

……………………………………………

22

(Additional Information)

……………………………………………

22

(Consolidated Balance Sheet)

……………………………………………

23

(Consolidated Income Statements)

……………………………………………

24

(Consolidated Statement of Comprehensive Income)

……………………………………………

25

(Consolidated Statement of Changes in Net Assets)

……………………………………………

26

(Consolidated Cash Flow Statements)

……………………………………………

28

(Segment information, etc.)

……………………………………………

29

(Per-share information)

……………………………………………

32

(Revenue recognition)

……………………………………………

33

(Significant Subsequent Event)

……………………………………………

33

6.

Non-consolidated Financial Statements

……………………………………………

34

(1)

Balance Sheet

……………………………………………

34

(2)

Income Statements

……………………………………………

36

(3)

Statements of Changes in Net Assets

……………………………………………

37

7.

Other

……………………………………………

39

(1)

Purchases, orders received, and sales

……………………………………………

39

– 1 –

1. Overview of Operating Results/Financial Position

  1. Overview of Operating Results
  1. Operating Results for current consolidated fiscal year

For the current consolidated fiscal year, The Japanese economy shows movements of picking up as the severe situation due to the Novel Coronavirus is easing, despite appearance of new variants. Concerning short-term prospects, the economy is expected to show movements of picking up, supported by the effects of the policies and improvement in overseas economies while taking every measure against infectious diseases, and economic and social activities move toward normalization. However, full attention should be given to the further increase in downside risks due to rising raw material prices and fluctuations in the financial and capital markets and supply-side constraints while the uncertainties surrounding the state of affairs of Ukraine. Also, attention should be given to the effects of the Novel Coronavirus.

Although the market environment for our Group remains harsh due to increasingly fierce competition, we are striving to

strengthen competitiveness and improve profitability through added value to achieve further growth and create revenue bases by expanding our global business and new business.

In the System Segment, we have made efforts to increase the added value of our flagship products, Electronic Article Surveillance Systems, CCTV camera systems and Access Control Systems. We are promoting sales for Cloud-based Wireless LAN Systems and remote access products related to teleworking and are developing new markets for Retail Solutions such as RFID Systems and labor-saving systems, as well as Cloud-based services. We are expanding the Advanced Fire Protection System Business, which is operated in Thailand and the ASEAN region.

In the Device Segment, we have promoted sales mainly in the telecom infrastructure market area, industrial equipment market area centered on IoT, amusement market area and the automotive market area in the Electronic Business. In the Industrial Systems Business, we have focused on sales of Mechanical Components for the industrial equipment market such as semiconductor manufacturing equipment, which is expected to continue to grow, and residential equipment in North America, the ASEAN region and China, and the development of the automobile interior components market in Japan and overseas.

Under these circumstances, as for operating results in the current consolidated fiscal year cumulative period, sales increased by 0.9% YoY to 20,784 million yen, due to strong sales of electronic parts for 5G base stations, electronic parts for home printers in response to growth in teleworking, and mechanical parts for housing equipment in the United States.

In terms of profit and loss, operating income increased by 15.6% YoY to 1,024 million yen, thanks to improved gross profit margin on sales in addition to the above factors. Ordinary income increased by 34.6% YoY to 1,247 million yen, due in part to revaluation gains on foreign-currency claims.Net income attributable to owners of parent increased by 60.2% YOY to 878 million yen.

The operating results of each segment are as follows:

(System Segment)

System Segment sales decreased by 5.3% YOY to 12,011 million yen and operating income decreased by 13.1% YOY to 529 million yen.

For retail security solution products, sales decreased by 15.6% YoY to 3,721 million yen due to the rebound effect from large-scale deals with mobile-phone carriers recorded in the previous fiscal year, although sales were steady for large-scale deals on CCTV and facial-recognition systems.

For office solutions products, sales decreased by 9.8% YoY to 3,246 million yen due to a decrease in sales of remote access products which were strongly affected by the impact of the Novel Coronavirus last year, although the access control system for data centers performed steadily.

For global Products, sales increased by 6.8% YoY to 2,926 million yen, thanks to solid sales of advanced fire-prevention systems in Thailand, which had been down sharply in the previous fiscal year.

For service and support products, MSP services (*) performed well, and sales increased 9.0% YOY to 2,115 million yen. (* MSP service: managed service provider service)

(Device Segment)

Device Segment sales increased by 11.0% YOY to 8,773 million yen and operating income increased by 78.6 % YOY to 494 million yen.

For Semiconductor products, sales were increased by 12.2% YoY to 4,452 million yen, thanks to strong sales of electronic components including those for 5G base stations, home printers, which are selling well due to increased demand for teleworking, and semiconductor manufacturing equipment.

For Mechanical Component Products, sales increased 9.8% YOY to 4,320 million yen due to strong sales of soft-closed parts for housing equipment in the United States and communication cables for industrial equipment.

– 2 –

  1. Future Outlook

For the current consolidated fiscal year, The Japanese economy shows movements of picking up as the severe situation due to the Novel Coronavirus is easing, despite appearance of new variants. Concerning short-term prospects, the economy is expected to show movements of picking up, supported by the effects of the policies and improvement in overseas economies while taking every measure against infectious diseases, and economic and social activities move toward normalization.

However, full attention should be given to the further increase in downside risks due to rising raw material prices and

fluctuations in the financial and capital markets and supply-side constraints while the uncertainties surrounding the state of affairs of Ukraine. Also, attention should be given to the effects of the Novel Coronavirus.

Under such conditions, on February 8, 2022, we announced, “Challenges for Creation: Creating new value in a new normal era towards 100th anniversary” the new medium-term management plan for the period through FY 2024. We plan to make progress toward further business growth under the basic policy of ” Concentrating on high value-added businesses transformation” and “Creating new value by strengthening the management base.”

In addition, beginning with the period covered by this new medium-term management plan we will separate the cloud services and maintenance businesses from the System Segment, as growth businesses, migrating them to the new Cloud Service & Support segment. This change is intended to reflect their growth potential and profit potential.

In the System Segment, for the retail industry, we will strive to promote sales of store security systems such as Electronic article surveillance systems and facial recognition systems, as well as smart store applications applying RFID and imaging AI analysis technologies, which are effective labor-saving measures for improving store operation efficiency and complementing staffing shortages. For office use, we will focus on expanding sales of network security systems for cloud-basedWi-Fi LAN networks and secure, reliable remote access, in respond to market growth in the cloud business, as well as access control systems for the data center, for which demand is expected to growth even further. As for global business, we will make efforts to win deals steadily for fire protection systems for power plants related to a growth in demand for power in the ASEAN region.

In the new Cloud Service & Support segment, we will enhance further sales-expansion efforts for the MSP services business, which employs a subscription model, to realize a shift from product sales to service sales.

With regard to the Device Segment, we will strive to develop the industrial equipment market area centered on the telecommunications infrastructure market, Semiconductor manufacturing equipment sector, as well as the solutions business fusing software with sensors and other products, in the Electronics Business. In the Industrial Systems Business, we will promote the sales in the digital industrial machinery field, where growth is projected, and high-value-added unit products for the housing equipment market in China and capture the U.S. market.

Based on the above, we forecast net sales of 22.5 billion yen, ordinary income of 1.3 billion yen, and net income attributable to owners of parent of 920 million yen.

– 3 –

This is an excerpt of the original content. To continue reading it, access the original document here.

Disclaimer

Takachiho Koheki Co. Ltd. published this content on 21 July 2022 and is solely responsible for the information contained therein. Distributed by Public, unedited and unaltered, on 21 July 2022 07:23:03 UTC.

Publicnow 2022

All news about TAKACHIHO KOHEKI CO.,LTD.

Sales 2022 20 784 M
152 M
152 M
Net income 2022 878 M
6,43 M
6,43 M
Net cash 2022 6 708 M
49,1 M
49,1 M
P/E ratio 2022 15,1x
Yield 2022
Capitalization 18 670 M
137 M
137 M
EV / Sales 2021 0,20x
EV / Sales 2022 0,31x
Nbr of Employees 488
Free-Float 63,8%

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