Note: 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.
Consolidated Financial Results
for the Nine Months Ended December 31, 2024
[Japanese GAAP]
Company name: NEC Capital Solutions Limited | January 31, 2025 |
Listing: Tokyo | |
Securities code: 8793 | |
URL: https://www.necap.co.jp/ | |
Representative: Masaaki Suganuma | President |
Inquiries: Seiichiro Kodama | Department Manager of IR & PR Department |
Telephone: +81-3(6720)8400
Scheduled date to commence dividend payments: -
Preparation of supplementary material on financial results: Yes
Holding of financial results briefing: None
(Yen amounts are rounded down to millions, unless otherwise noted.)
1. Consolidated Financial Results for the Nine Months Ended December 31, 2024 (April 1, 2024 to December 31, 2024)
(1) Consolidated Operating Results | (Percentages indicate year-on-year changes.) | |||||||||
Net sales | Operating profit | Ordinary profit | Profit attributable to | |||||||
owners of parent | ||||||||||
Nine months ended | Millions of yen | % | Millions of yen | % | Millions of yen | % | Millions of yen | % | ||
December 31, 2024 | 189,538 | 1.1 | 6,405 | (11.7) | 8,268 | 19.5 | 5,932 | 69.0 | ||
December 31, 2023 | 187,559 | (4.4) | 7,256 | (34.4) | 6,921 | (40.7) | 3,510 | (38.0) |
(Note) Comprehensive income: | Nine months ended December 31, 2024: | ¥ | 6,577 million | [ | 9.1%] | ||||||
Nine months ended December 31, 2023: | ¥ | 6,026 million | [ | (43.0) %] | |||||||
Basic earnings | Diluted earnings per | ||||||||||
per share | share | ||||||||||
Nine months ended | Yen | Yen | |||||||||
December 31, 2024 | 275.43 | - | |||||||||
December 31, 2023 | 163.04 | - | |||||||||
(2) Consolidated Financial Position | |||||||||||
Total assets | Net assets | Capital adequacy ratio | |||||||||
As of | Millions of yen | Millions of yen | % | ||||||||
December 31, 2024 | 1,098,106 | 140,290 | 10.9 | ||||||||
March 31, 2024 | 1,117,363 | 136,790 | 10.4 | ||||||||
(Reference) Equity: As of | December 31, 2024: | ¥ | 119,636 million | ||||||||
As of | March 31, 2024: | ¥ | 115,743 million |
2. Dividends
Annual dividends | ||||||||
1st | 2nd | 3rd | Year-end | Total | ||||
quarter-end | quarter-end | quarter-end | ||||||
Yen | Yen | Yen | Yen | Yen | ||||
Fiscal year ended March 31, 2024 | - | 65.00 | - | 65.00 | 130.00 | |||
Fiscal year ending March 31, 2025 | - | 75.00 | - | |||||
Fiscal year ending March 31, 2025 | 75.00 | 150.00 | ||||||
(Forecast) | ||||||||
(Note) Revision to the forecast for dividends | announced most | recently: | None |
3. Consolidated Financial Results Forecast for the Fiscal Year Ending March 31, 2025(April 1, 2024 to March 31, 2025)
(Percentages indicate year-on-year changes.)
Net sales | Operating profit | Ordinary profit | Profit attributable to | Basic earnings | ||||||
owners of parent | per share | |||||||||
Millions of yen | % | Millions of yen | % | Millions of yen | % | Millions of yen | % | Yen | ||
Full year | 260,000 | 1.6 | 12,000 | 2.6 | 12,500 | 5.8 | 8,000 | 13.7 | 371.50 | |
(Note) Revision to the financial results forecast announced most recently: | None | |||||||||
* Notes: | ||||||||||
(1) Significant changes in the scope of consolidation during the period: | None |
- Adoption of accounting treatment specific to the preparation of quarterly consolidated financial statements: None
- Changes in accounting policies, changes in accounting estimates, and restatement
- Changes in accounting policies due to revisions to accounting standards and other regulations: Yes
- Changes in accounting policies due to other reasons: None
- Changes in accounting estimates: None
- Restatement: None
- Number of issued shares (common shares)
- Total number of issued shares at the end of the period (including treasury shares):
December 31, 2024: | 21,544,538 | shares |
March 31, 2024: | 21,539,071 | shares |
2) Number of treasury shares at the end of the period: | ||
December 31, 2024: | 4,550 | shares |
March 31, 2024: | 4,502 | shares |
3) Average number of shares outstanding during the period: | ||
Nine months ended December 31, 2024: | 21,538,186 | shares |
Nine months ended December 31, 2023: | 21,532,746 | shares |
- Review of the Japanese-language originals of the attached consolidated quarterly financial statements by certified public accountants or an audit firm: None
- Proper use of earnings forecasts, and other special matters
Forecasts are based on the information available to management at the time they were made. Actual results may differ materially
from forecasts for a number of reasons.
Quarterly Consolidated Financial Statements
Quarterly Consolidated Balance Sheets
(Millions of yen) | ||
As of March 31, 2024 | As of December 31, 2024 | |
Assets | ||
Current assets | ||
Cash and deposits | 53,844 | 38,711 |
Installment receivables | 36,639 | 32,222 |
Lease receivables and investments in leases | 489,455 | 478,825 |
Accounts receivable - lease | 23,814 | 25,279 |
Accounts receivable - operating loans | 230,267 | 224,002 |
Purchased receivables | 9,140 | 9,692 |
Operational investment securities | 25,851 | 26,604 |
Real estate for sale | 33,969 | 35,620 |
Real estate for sale in process | 3,285 | 9,042 |
Securities | - | 546 |
Other | 31,703 | 12,031 |
Allowance for doubtful accounts | (8,384) | (8,391) |
Total current assets | 929,587 | 884,190 |
Non-current assets | ||
Property, plant and equipment | ||
Assets for lease | 84,671 | 100,505 |
Other operating assets | 7,969 | 9,089 |
Own-used assets | 312 | 383 |
Total property, plant and equipment | 92,953 | 109,978 |
Intangible assets | ||
Assets for lease | 1,084 | 818 |
Goodwill | 1,521 | 1,416 |
Other | 8,543 | 10,476 |
Total intangible assets | 11,149 | 12,712 |
Investments and other assets | ||
Investment securities | 71,113 | 78,653 |
Other | 17,493 | 17,139 |
Allowance for doubtful accounts | (4,934) | (4,567) |
Total investments and other assets | 83,672 | 91,226 |
Total non-current assets | 187,775 | 213,916 |
Total assets | 1,117,363 | 1,098,106 |
(Millions of yen) | ||
As of March 31, 2024 | As of December 31, 2024 | |
Liabilities | ||
Current liabilities | ||
Notes payable - trade | 79 | 177 |
Accounts payable - trade | 12,009 | 12,053 |
Short-term borrowings | 40,366 | 30,950 |
Current portion of long-term borrowings | 110,145 | 133,903 |
Current portion of bonds payable | 15,000 | 25,000 |
Commercial papers | 272,000 | 226,000 |
Payables under securitization of lease receivables | 483 | 432 |
Income taxes payable | 1,047 | 543 |
Provision for bonuses | 933 | 1,030 |
Provision for bonuses for directors (and other | 14 | 10 |
officers) | ||
Other | 34,020 | 27,061 |
Total current liabilities | 486,101 | 457,163 |
Non-current liabilities | ||
Bonds payable | 85,750 | 93,600 |
Long-term borrowings | 392,982 | 391,633 |
Long-term payables under securitization of lease | 2,215 | 1,890 |
receivables | ||
Retirement benefit liability | 1,914 | 1,878 |
Other | 11,609 | 11,651 |
Total non-current liabilities | 494,471 | 500,653 |
Total liabilities | 980,573 | 957,816 |
Net assets | ||
Shareholders' equity | ||
Share capital | 3,783 | 3,783 |
Capital surplus | 4,655 | 4,670 |
Retained earnings | 101,192 | 104,108 |
Treasury shares | (9) | (9) |
Total shareholders' equity | 109,620 | 112,552 |
Accumulated other comprehensive income | ||
Valuation difference on available-for-sale | 1,600 | 1,694 |
securities | ||
Deferred gains or losses on hedges | 413 | 1,212 |
Foreign currency translation adjustment | 4,044 | 4,162 |
Remeasurements of defined benefit plans | 62 | 14 |
Total accumulated other comprehensive income | 6,122 | 7,084 |
Non-controlling interests | 21,047 | 20,653 |
Total net assets | 136,790 | 140,290 |
Total liabilities and net assets | 1,117,363 | 1,098,106 |
Quarterly Consolidated Statements of Income and Comprehensive Income
Quarterly Consolidated Statements of Income (For the nine months)
(Millions of yen) | ||
For the nine months | For the nine months | |
ended December 31, 2023 | ended December 31, 2024 | |
Net sales | 187,559 | 189,538 |
Cost of sales | 165,192 | 167,353 |
Gross profit | 22,366 | 22,184 |
Selling, general and administrative expenses | 15,110 | 15,778 |
Operating profit | 7,256 | 6,405 |
Non-operating income | ||
Interest income | 49 | 28 |
Dividend income | 79 | 52 |
Share of profit of entities accounted for using equity | 187 | 251 |
method | ||
Gain on investments in partnerships | 343 | 733 |
Foreign exchange gains | - | 951 |
Other | 106 | 213 |
Total non-operating income | 766 | 2,231 |
Non-operating expenses | ||
Interest expenses | 385 | 246 |
Loss on investments in partnerships | 55 | 107 |
Foreign exchange losses | 589 | - |
Other | 70 | 14 |
Total non-operating expenses | 1,100 | 368 |
Ordinary profit | 6,921 | 8,268 |
Extraordinary income | ||
Gain on sale of shares of subsidiaries and associates | 9 | 16 |
Gain on reversal of foreign currency translation | 114 | - |
adjustment | ||
Total extraordinary income | 124 | 16 |
Extraordinary losses | ||
Loss on liquidation of subsidiaries and associates | - | 477 |
Loss on transfer of bonds of subsidiaries and affiliates | - | 50 |
Loss on sale of shares of subsidiaries and associates | 25 | 16 |
Loss on debt forgiveness to subsidiaries and affiliates | 55 | - |
Total extraordinary losses | 81 | 544 |
Profit before income taxes | 6,965 | 7,740 |
Income taxes - current | 1,554 | 1,227 |
Income taxes - deferred | 953 | 897 |
Total income taxes | 2,508 | 2,125 |
Profit | 4,456 | 5,615 |
Profit (loss) attributable to non-controlling interests | 945 | (316) |
Profit attributable to owners of parent | 3,510 | 5,932 |
Quarterly Consolidated Statements of Comprehensive Income (For the nine months)
(Millions of yen) | ||
For the nine months | For the nine months | |
ended December 31, 2023 | ended December 31, 2024 | |
Profit | 4,456 | 5,615 |
Other comprehensive income |
Valuation difference on available-for-sale securities
Deferred gains or losses on hedges
Foreign currency translation adjustment
Remeasurements of defined benefit plans, net of tax Share of other comprehensive income of entities accounted for using equity method
Total other comprehensive income
Comprehensive income
Comprehensive income attributable to Comprehensive income attributable to owners of parent
Comprehensive income attributable to non-controlling interests
79 | 224 |
(174) | 685 |
1,037 | 323 |
27 | (47) |
599 | (223) |
1,569 | 962 |
6,026 | 6,577 |
5,080 | 6,894 |
945 | (316) |