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 Six Months Ended September 30, 2024
[Japanese GAAP]
Company name: NEC Capital Solutions Limited | October 30, 2024 |
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 file semi-annual securities report: November 7, 2024
Scheduled date to commence dividend payments: December 10, 2024
Preparation of supplementary material on financial results: Yes
Holding of financial results briefing: Yes
(Yen amounts are rounded down to millions, unless otherwise noted.)
1. Consolidated Financial Results for the Six Months Ended September 30, 2024 (April 1, 2024 to September 30, 2024)
(1) Consolidated Operating Results | (Percentages indicate year-on-year changes.) | |||||||||
Net sales | Operating profit | Ordinary profit | Profit attributable to | |||||||
owners of parent | ||||||||||
Six months ended | Millions of yen | % | Millions of yen | % | Millions of yen | % | Millions of yen | % | ||
September 30, 2024 | 123,732 | (0.2) | 4,733 | 26.5 | 5,337 | 64.7 | 3,384 | 74.0 | ||
September 30, 2023 | 124,010 | (8.6) | 3,741 | (49.9) | 3,240 | (62.4) | 1,944 | (55.9) |
(Note) Comprehensive income: | Six months ended September 30, 2024: |
Six months ended September 30, 2023: |
¥ | 3,210 million | [ | (22.3) %] |
¥ | 4,132 million | [ | (48.8) %] |
Basic earnings | Diluted earnings per | ||||
per share | share | ||||
Six months ended | Yen | Yen | |||
September 30, 2024 | 157.14 | - | |||
September 30, 2023 | 90.31 | - | |||
(2) Consolidated Financial Position | |||||
Total assets | Net assets | Capital adequacy ratio | |||
As of | Millions of yen | Millions of yen | % | ||
September 30, 2024 | 1,096,920 | 139,228 | 10.7 | ||
March 31, 2024 | 1,117,363 | 136,790 | 10.4 | ||
(Reference) Equity: As of | September 30, 2024: | ¥ | 117,754 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 semi-annual 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):
September 30, 2024: | 21,544,538 | shares |
March 31, 2024: | 21,539,071 | shares |
2) Number of treasury shares at the end of the period: | ||
September 30, 2024: | 4,550 | shares |
March 31, 2024: | 4,502 | shares |
3) Average number of shares outstanding during the period: | ||
Six months ended September 30, 2024: | 21,537,285 | shares |
Six months ended September 30, 2023: | 21,531,816 | shares |
- Semi-annualfinancial results reports are exempt from review conducted by certified public accountants or an audit firm.
- 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.
Semi-annual Consolidated Financial Statements
Semi-annual Consolidated Balance Sheets
(Millions of yen) | ||
As of March 31, 2024 | As of September 30, 2024 | |
Assets | ||
Current assets | ||
Cash and deposits | 53,844 | 37,162 |
Installment receivables | 36,639 | 37,570 |
Lease receivables and investments in leases | 489,455 | 455,597 |
Accounts receivable - lease | 23,814 | 23,551 |
Accounts receivable - operating loans | 230,267 | 224,025 |
Purchased receivables | 9,140 | 8,510 |
Operational investment securities | 25,851 | 26,377 |
Real estate for sale | 33,969 | 37,035 |
Real estate for sale in process | 3,285 | 4,859 |
Securities | - | 546 |
Other | 31,703 | 33,079 |
Allowance for doubtful accounts | (8,384) | (7,725) |
Total current assets | 929,587 | 880,591 |
Non-current assets | ||
Property, plant and equipment | ||
Assets for lease | 84,671 | 99,525 |
Other operating assets | 7,969 | 9,090 |
Own-used assets | 312 | 279 |
Total property, plant and equipment | 92,953 | 108,895 |
Intangible assets | ||
Assets for lease | 1,084 | 893 |
Goodwill | 1,521 | 1,355 |
Other | 8,543 | 10,041 |
Total intangible assets | 11,149 | 12,290 |
Investments and other assets | ||
Investment securities | 71,113 | 82,612 |
Other | 17,493 | 16,964 |
Allowance for doubtful accounts | (4,934) | (4,433) |
Total investments and other assets | 83,672 | 95,143 |
Total non-current assets | 187,775 | 216,329 |
Total assets | 1,117,363 | 1,096,920 |
(Millions of yen) | ||
As of March 31, 2024 | As of September 30, 2024 | |
Liabilities | ||
Current liabilities | ||
Notes payable - trade | 79 | 224 |
Accounts payable - trade | 12,009 | 9,243 |
Short-term borrowings | 40,366 | 40,588 |
Current portion of long-term borrowings | 110,145 | 207,243 |
Current portion of bonds payable | 15,000 | 15,000 |
Commercial papers | 272,000 | 257,000 |
Payables under securitization of lease receivables | 483 | 431 |
Income taxes payable | 1,047 | 1,536 |
Provision for bonuses | 933 | 1,240 |
Provision for bonuses for directors (and other | 14 | 20 |
officers) | ||
Other | 34,020 | 33,418 |
Total current liabilities | 486,101 | 565,948 |
Non-current liabilities | ||
Bonds payable | 85,750 | 75,700 |
Long-term borrowings | 392,982 | 301,771 |
Long-term payables under securitization of lease | 2,215 | 1,998 |
receivables | ||
Retirement benefit liability | 1,914 | 1,905 |
Other | 11,609 | 10,368 |
Total non-current liabilities | 494,471 | 391,743 |
Total liabilities | 980,573 | 957,692 |
Net assets | ||
Shareholders' equity | ||
Share capital | 3,783 | 3,783 |
Capital surplus | 4,655 | 4,664 |
Retained earnings | 101,192 | 103,176 |
Treasury shares | (9) | (9) |
Total shareholders' equity | 109,620 | 111,615 |
Accumulated other comprehensive income | ||
Valuation difference on available-for-sale | 1,600 | 1,514 |
securities | ||
Deferred gains or losses on hedges | 413 | 739 |
Foreign currency translation adjustment | 4,044 | 3,854 |
Remeasurements of defined benefit plans | 62 | 31 |
Total accumulated other comprehensive income | 6,122 | 6,139 |
Non-controlling interests | 21,047 | 21,474 |
Total net assets | 136,790 | 139,228 |
Total liabilities and net assets | 1,117,363 | 1,096,920 |
Semi-annual Consolidated Statements of Income and Comprehensive Income
(Millions of yen) | ||
For the six months | For the six months | |
ended September 30, 2023 | ended September 30, 2024 | |
Net sales | 124,010 | 123,732 |
Cost of sales | 109,497 | 108,801 |
Gross profit | 14,512 | 14,931 |
Selling, general and administrative expenses | 10,771 | 10,197 |
Operating profit | 3,741 | 4,733 |
Non-operating income | ||
Interest income | 32 | 21 |
Dividend income | 51 | 30 |
Share of profit of entities accounted for using equity | 11 | 293 |
method | ||
Gain on investments in partnerships | 215 | 848 |
Other | 75 | 162 |
Total non-operating income | 386 | 1,356 |
Non-operating expenses | ||
Interest expenses | 246 | 174 |
Loss on investments in partnerships | 53 | 71 |
Foreign exchange losses | 517 | 495 |
Other | 69 | 11 |
Total non-operating expenses | 886 | 753 |
Ordinary profit | 3,240 | 5,337 |
Extraordinary income | ||
Gain on sale of shares of subsidiaries and associates | 9 | 5 |
Gain on reversal of foreign currency translation | 114 | - |
adjustment | ||
Total extraordinary income | 124 | 5 |
Extraordinary losses | ||
Loss on sale of shares of subsidiaries and associates | - | 16 |
Total extraordinary losses | - | 16 |
Profit before income taxes | 3,364 | 5,326 |
Income taxes - current | 1,119 | 1,703 |
Income taxes - deferred | 494 | 429 |
Total income taxes | 1,614 | 2,132 |
Profit | 1,750 | 3,193 |
Loss attributable to non-controlling interests | (194) | (190) |
Profit attributable to owners of parent | 1,944 | 3,384 |
(Millions of yen) | ||
For the six months | For the six months | |
ended September 30, 2023 | ended September 30, 2024 | |
Profit | 1,750 | 3,193 |
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
147 | (242) |
(13) | 345 |
1,226 | 444 |
18 | (31) |
1,004 | (499) |
2,382 | 16 |
4,132 | 3,210 |
4,326 | 3,401 |
(194) | (190) |
Semi-annual Consolidated Statements of Cash Flows
(Millions of yen) | ||
For the six months | For the six months | |
ended September 30, 2023 | ended September 30, 2024 | |
Cash flows from operating activities | ||
Profit before income taxes | 3,364 | 5,326 |
Depreciation | 9,246 | 10,964 |
Amortization of goodwill | 97 | 103 |
Increase (decrease) in allowance for doubtful accounts | 1,645 | (1,160) |
Increase (decrease) in provision for bonuses | 351 | 306 |
Increase (decrease) in provision for bonuses for | (12) | 5 |
directors (and other officers) | ||
Increase (decrease) in net defined benefit asset and | (57) | (19) |
liability | ||
Interest and dividend income | (83) | (52) |
Capital costs and interest expenses | 3,866 | 4,526 |
Share of loss (profit) of entities accounted for using | (11) | (293) |
equity method | ||
Foreign exchange losses (gains) | 6,950 | (898) |
Loss (gain) on sale of shares of subsidiaries and | (9) | 10 |
associates | ||
Reversal of provision incurred from foreign currency | (114) | - |
translation adjustment | ||
Decrease (increase) in installment receivables | 422 | (931) |
Net decrease (increase) in lease receivables and | 38,383 | 33,113 |
investments in leases | ||
Decrease (increase) in accounts receivable - operating | 828 | 5,836 |
loans | ||
Decrease (increase) in trade receivables | (754) | 262 |
Decrease (increase) in purchased receivable-trade | (652) | 630 |
Decrease (increase) in operational investment | (3,055) | (525) |
securities | ||
Decrease (increase) in real estate for sale | (5,414) | (3,350) |
Decrease (increase) in real estate for sale in process | (567) | (1,574) |
Purchase of assets for lease | (32,960) | (25,837) |
Proceeds from sale of assets for lease | 1,377 | 1,768 |
Increase in other operating assets by purchase | (252) | (2,202) |
Increase (decrease) in trade payables | (5,143) | (1,869) |
Increase (decrease) in advances received-lease | (2,811) | (2,714) |
Other, net | (2,443) | (5,654) |
Subtotal | 12,188 | 15,773 |
Interest and dividends received | 109 | 57 |
Interest paid | (3,488) | (4,833) |
Income taxes paid | (198) | (954) |
Net cash provided by (used in) operating activities | 8,610 | 10,041 |
(Millions of yen) | ||
For the six months | For the six months | |
ended September 30, 2023 | ended September 30, 2024 | |
Cash flows from investing activities | ||
Purchase of own-used assets | (1,249) | (1,697) |
Purchase of investment securities | (10,068) | (16,183) |
Proceeds from sale of investment securities | - | 61 |
Proceeds from redemption of investment securities | 3,725 | 6,958 |
Proceeds from liquidation of affiliates | 354 | - |
Other, net | 129 | 110 |
Net cash provided by (used in) investing activities | (7,108) | (10,750) |
Cash flows from financing activities | ||
Net increase (decrease) in short-term borrowings | (7,807) | 4,876 |
Net increase (decrease) in commercial papers | (9,000) | (15,000) |
Proceeds from long-term borrowings | 66,979 | 47,585 |
Repayments of long-term borrowings | (57,548) | (40,855) |
Repayments of payables under securitization of lease | (675) | (268) |
receivables | ||
Proceeds from issuance of bonds | 10,000 | - |
Redemption of bonds | (10,000) | (10,050) |
Dividends paid | (1,660) | (1,400) |
Dividends paid to non-controlling interests | (587) | (602) |
Proceeds from share issuance to non-controlling | 2,309 | 405 |
shareholders | ||
Other, net | (7) | (0) |
Net cash provided by (used in) financing activities | (7,996) | (15,310) |
Effect of exchange rate change on cash and cash | (907) | (692) |
equivalents | ||
Net increase (decrease) in cash and cash equivalents | (7,401) | (16,711) |
Cash and cash equivalents at beginning of period | 35,557 | 53,722 |
Cash and cash equivalents at end of period | 28,155 | 37,011 |