(April 1, 2015 to March 31, 2016)
Company Name : SANKEN ELECTRIC CO., LTD.
Code NO :
6707
Headquarters : 3-6-3 Kitano, Niiza-shi, Saitama 352-8666, Japan 4.URL : http://www.sanken-ele.co.jp/
5.Contact : Finance and Investor Relations Division Tel. 81-48-487-6121
- FINANCIAL RESULTS FOR THE FISCAL YEAR 2015 (April 1, 2015 to March 31, 2016)
Consolidated Results of Operations
Net sales
(millions of yen)
Operating income
(millions of yen)
Ordinary income
(millions of yen)
Profit attributable to owners of parent (millions of yen)
Fiscal Year 2015
155,919
(-3.0%)
6,803
(-39.3%)
3,791
(-63.3%)
171
(-97.8%)
Fiscal Year 2014
160,724
(11.3%)
11,199
(44.0%)
10,334
(36.4%)
7,942
(57 9%)
Note1: Comprehensive income: FY 2015: -8,196 million yen ( － %) FY 2014: 14,837 million yen (68 3%)
Note2: Indication of percentages shows the ratio of increase or decrease from the previous fiscal year
Net income
per share
Diluted net income
per share
Net income to
shareholders' equity
Ordinary income to
total assets
Operating income to
net sales
Fiscal Year 2015
Fiscal Year 2014
1.41yen 65.50yen
-
-
0.3%
14.3%
2.0%
5.8%
4.4%
7.0%
Reference: Equity in net income/loss non-consolidated subsidiaries and/or affiliates: FY 2015:－yen FY 2014: －yen
Consolidated Financial Position (Millions of yen)
Total assets
Net assets
Shareholders' equity ratio
Net assets per share
Fiscal Year 2015
Fiscal Year 2014
184,711
193,267
53,959
63,021
29.0%
32.4%
441.96 yen
516.22 yen
Reference: Shareholders' equity: Mar /2016: 53,572 million yen Mar /2015: 62,584 million yen
Consolidated Results of Cash Flows (Millions of yen)
Net cash provided by (used in) operating activities
Net cash provided by (used in) Investing activities
Net cash provided by (used in) financing activities
Balance of cash and cash equivalents
at the end of year
Fiscal Year 2015
Fiscal Year 2014
7,799
9,973
(11,344)
(14,234)
5,044
5,692
17,646
17,225
-
DIVIDEND INFORMATION
Dividend per share
Total amount of
annual dividend (millions of yen)
Dividend
payout ratio (consolidated)
Dividend to
total net assets (consolidated)
First
quarter
Second
quarter
Third
quarter
Fiscal-year-
end
Annual
Fiscal year 2014
-
3 00yen
-
3 50yen
6 50yen
788
9 9%
1 4%
Fiscal year 2015
-
3 50yen
-
0 00yen
3 50yen
424
247 4%
0 7%
Fiscal year 2016(forecast)
-
0 00yen
-
-
-
-
-
FISCAL YEAR 2016 CONSOLIDATED FINANCIAL FORECAST (April 1, 2016 to March 31, 2017) (Millions of Yen)
Net sales
(percentage change from the previous year)
Operating income (percentage change from the previous year)
Ordinary income (percentage change from the previous year)
Profit attributable to owners of parent
(percentage change from the previous year
Net income per share
Second quarter (cummulative)
74,000
(-4 3%)
1,800
(-38 7%)
1,000
(-34 5%)
-400
－
-3 30yen
Full Year
156,000
(0 1%)
7,000
(2 9%)
5,500
(45 0%)
2,500
－
20.62yen
- OTHER
Changes in significant subsidiaries during the fiscal year (changes in particular subsidiaries accompanying the change in scope of consolidation): No
Changes in accounting policies, changes in accounting estimates, restatement of revisions
Changes in accounting policies according to revision of accounting standards, etc : Yes
Changes in accounting policies due to reasons other than above : Yes
Changes in accounting estimates : No
Restatement of revisions : No
Mar./2016:
125,490,302
Mar./2015:
125,490,302
Mar./2016:
4,275,417
Mar./2015:
4,253,173
Mar./2016:
121,225,653
Mar./2015:
121,252,941
Number of shares outstanding (common share)
Number of shares outstanding at the end of the period (including treasury stock)
Number of treasury stocks at the end of the period
Average number of shares outstanding during the fiscal year
(Reference) SUMMARY OF NON-CONSOLIDATED FINANCIAL RESULTS
1. NON-CONSOLIDATED FINANCIAL RESULTS FOR THE FISCAL YEAR 2015 (April 1, 2015 to March 31, 2016)
Non-consolidated Results of Operations
Net sales
(millions of yen)
Operating income
(millions of yen)
Ordinary income
(millions of yen)
Net income
(millions of yen)
Fiscal Year 2015
Fiscal Year 2014
99,241 (-7 3%)
107,096 (9.3%)
-344 -
461 (-45.5%)
-1,043 -
1,514 (1.2%)
-1,178 -
2,652 -
Note: Indication of percentages shows the ratio of increase or decrease from the previous fiscal year
Net income
per share
Diluted net income
per share
Fiscal Year 2015
Fiscal Year 2014
-9.72yen 21.87yen
-
-
Non-consolidated Financial Position (Millions of yen)
- ANALYSIS OF OPERATING RESULTS
-
OVERVIEW OF THE CURRENT PERIOD
GENERAL REVIEW
The global economy remained on a moderate recovery trend as a whole during the first half of the current consolidated fiscal year. The US economy continued to expand on the back of increased job opportunities and favorable personal consumption associated therewith; the European economy also gradually recovered as personal consumption continuously improved; the Chinese economy progressed favorably thanks to a steady increase in consumption in spite of the growing trend of economic slowdown. A host of concerns developed, however, from the second half of the current consolidated fiscal year onward, such as the advancing trend of overall economic slowdown in emerging countries and resource-rich countries resulting mainly from the effects of declining crude oil prices, and the further rising of geopolitical risks in Europe and the Middle East such as terrorist acts and the refugee issue. The Japanese economy lacked strength due to sluggish consumer sentiment although the employment trend held steady. In the electronics market the Company mainly services with its products, sales of electronic parts for automotive products remained firm mainly as a consequence of increased sales, etc. of automobiles in North America and Europe, while sales in markets for office equipment and industrial machinery slumped. Sales in the white goods market were also sluggish, mainly due to the stagnant Chinese economy and inventory adjustments for air conditioners, etc.
Under these circumstances we set out a basic policy stressing "Increase sales in strategic market" and "Generate cash flows by achieving optimal manufacturing." We strove to increase sales by entering into growing markets with reinforced sales initiatives and developing new products in a timely manner, worked toward optimal and efficient production by taking advantage of the new Sanken ERP system launched in the current consolidated fiscal year, and focused on financial improvements by curtailing fixed costs.
For the business results of the consolidated fiscal year, consolidated net sales were ¥155,919 million, a decrease of ¥4,804 million (3.0%) compared to the previous fiscal year. These results were a consequence of lower sales levels in the semiconductor devices segment versus the previous fiscal year mainly due to the sluggish Chinese market, as well as a sales decline in the power systems segment on the impact of contracted capital investments for mobile phone base-stations. For income, the amounts were considerably decreased. The declines in income were attributable to decreased income linked to decreased net sales, lower factory utilization ratios at subsidiaries linked to inventory reductions, decreased income associated with the defective processing of wafers due to contaminated chemicals purchased, disposal costs for
defective wafers, aannd tthhee ppoostiinng ooff extraordinary losses aarrisiing from various structural reforms iinn
the Group. As a result, wwee recorded
consolidated operating income of ¥6,803 million, a decrease of ¥4,396 million (39.3%) compared to the previous fiscal year, consolidated ordinary income of ¥3,791 million, a decrease of ¥6,542 million (63.3%), and net income attributable to owners of the parent company of
¥171 million, a decrease of ¥7,770 million (97.8%) compared to the previous fiscal year.
OVERVIEW OF THE BUSINESS BY SEGMENTSSemiconductor Devices
In this segment, sales of automotive products increased, as compared to the previous year, partly due to the effect of an additional amount in sales boosted by the weaker yen. However, sales of products for white goods such as air conditioners, products for office equipment, industrial machinery and TVs and audio products decreased. As a result, consolidated net sales for this segment were ¥125,117 million, a decrease of ¥1,431 million (1.1%) as compared to the previous fiscal year. For income, consolidated operating income was ¥9,247 million, including ¥700 million derived from the effect of the weaker yen, a decrease of ¥3,489 million (27.4%) as compared to the previous fiscal year. These results were attributable to factors such as sluggish sales, decreased income stemming from the contamination of chemicals purchased, and the increase in expenses related to the new Sanken ERP system and the Allegro Plant in Thailand.
Power Modules
In this segment, sales of products for printers for offices decreased, sales of industrial machinery mostly stayed unchanged from the previous year, while sales of adapters mainly for TVs expanded. As a result, consolidated net sales for this segment were ¥15,922 million, an increase of ¥367 million (2.4%) as compared to the previous fiscal year. For income, we have redoubled our emphasis on strategically focused markets mainly by increasing sales in automotive and industrial machinery markets and have promoted structural reforms in business such as reduced production costs. These efforts, however, were insufficient to compensate for deteriorating cost rate linked to the increased number of unprofitable products and the overall drops in sales prices. As a result, we were forced to record consolidated operating loss of ¥973 million (a consolidated operating loss of ¥594 million in the previous fiscal year).
Power Systems
Sales in this segment remained sluggish, chiefly due to decreased sales of the power-supply units for telecommunication facilities associated with contracted corporate investments mainly for mobile phone stations, while sales in the new energy sector on which we focus as a growing market increased. As a result, consolidated net sales were ¥14,879 million, a decrease of ¥3,739 million (20.1%) as compared to the previous fiscal year. For income, consolidated operating income was ¥973 million, a decrease of ¥353 million (26.6%) as compared to the previous fiscal year.
We expect that the global economy will progress on a gradually expansionary trend throughout the next fiscal year in spite of lingering uncertainties. In the markets the Company mainly services with its products, stable demand chiefly for products for automotive products and white goods is expected to continue. Under these circumstances, the Company will make concerted efforts to achieve goals towards improvements in performance and enhancement of our financial conditions in accordance with the "2015 Mid-term Business Plan." For the consolidated business results of fiscal 2016, we expect net sales of ¥156,000 million, operating income of ¥7,000 million, ordinary income of ¥5,500 million, and net income attributable to owners of the parent company of ¥2,500 million. These figures are based on an exchange rate of 1US$=¥105 for the fiscal year ending March 31, 2017.
-
FORECAST OF THE NEXT TERM
We expect that the global economy will progress on a gradually expansionary trend throughout the next fiscal year in spite of lingering uncertainties. In the markets the Company mainly services with its products, stable demand chiefly for products for automotive products and white goods is expected to continue. Under these circumstances, the Company will make concerted efforts to achieve goals towards improvements in performance and enhancement of our financial conditions in accordance with the "2015 Mid-term Business Plan." For the consolidated business results of fiscal 2016, we expect net sales of ¥156,000 million, operating income of ¥7,000 million, ordinary income of ¥5,500 million, and net income attributable to owners of the parent company of ¥2,500 million. These figures are based on an exchange rate of 1US$=¥105 for the fiscal year ending March 31, 2017.
(Note)
The forecast described above is based upon information available as of the present time and assumptions we considered valid. Please be advised that there is a host of uncertain factors that could greatly impact actual performance, including global economic trends, the introduction of new products and their acceptance or lack thereof, and the impact of fair-market-value accounting.
(Note)
The forecast described above is based upon information available as of the present time and assumptions we considered valid. Please be advised that there is a host of uncertain factors that could greatly impact actual performance, including global economic trends, the introduction of new products and their acceptance or lack thereof, and the impact of fair-market-value accounting.
- ANALYSIS OF FINANCIAL CONDITIONS
-
STATUS OF ASSETS, LIABILITIES AND NET ASSETS
Assets as of the end of the current consolidated fiscal year were ¥184,711 million, a decrease of ¥8,555 million from the end of the previous consolidated fiscal year. This was mainly due to a decrease in notes and accounts receivable-trade of ¥3,489 million, raw materials and supplies of ¥2,746 million, and property, plant and equipment of ¥3,780 million.
Liabilities were ¥130,751 million, an increase of ¥506 million from the end of the previous consolidated fiscal year. This was mainly due to an increase in current portion of bonds of ¥21,800 million, bonds payable of ¥4,100 million, long-term loans payable of ¥5,000 million, and a decrease in notes and accounts payable-trade of ¥4,789 million, short-term loans payable of ¥5,935 million, and commercial papers of
¥18,500 million.
Net assets were ¥53,959 million, a decrease of ¥9,061 million from the end of the previous consolidated fiscal year. This was mainly due to a decrease in foreign currency translation adjustment of ¥4,089 million and remeasurements of defined benefit plans of ¥4,109 million.
- STATUS OF CASH FLOW
Balance of cash and cash equivalents as of the end of the current consolidated fiscal year was ¥17,646 million, an increase of ¥421 million as compared with the end of the previous consolidated fiscal year.
Net cash provided by operating activities was ¥7,799 million, a decrease of ¥2,174 million as compared with the previous year. This was mainly due to a decrease in income before income taxes, and an increase in cash outflow by a decrease in notes and accounts payable-trade.
Net cash used in investing activities was ¥11,344 million, a decrease of ¥2,889 million as compared with the previous year. This was mainly due to purchase of property, plant and equipment.
Net cash provided by financing activities was ¥5,044 million, a decrease of ¥647 million as compared with the previous year. This was mainly due to redemption of bonds and commercial papers in accordance with the issuance of bonds.
Total assets | Net assets | Shareholders' equity ratio | Net assets per share | |
Fiscal Year 2015 Fiscal Year 2014 | 137,134 135,650 | 27,447 29,608 | 20.0% 21.8% | 226.44yen 244.22yen |
Reference: Shareholders' equity: Mar /2016: 27,447 million yen Mar /2015: 29,608 million yen
* The above description about future matters including financial forecast is based upon information available as of the present time and assumptions we considered valid Due to various factors, our actual performance could greatly differ from the forcast For assumptions and notes regarding the forcasts, refer to "Qualitative Information concerning the Forecast of Consolidated Business Results "
1. OPERATING RESULTS