Neturen Co., Ltd.TSE: 5976

Consolidated Financial Results for the Nine Months Ended December 31, 2024

Feb 7, 2025 at 6:56 AM UTC · Issued by Neturen Co., Ltd.

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]

February 7, 2025

Company name: Neturen Co., Ltd.

Listing: Tokyo

Securities code: 5976

URL: https://www.k-neturen.co.jp/

Representative: Katsumi Omiya	, Representative Director, Member of the Board and President
Inquiries: Hideaki Shinohara	, General Manager, Accounting Department, Administrative Headquarters

Telephone: +81-3-3443-5441

Scheduled date to commence dividend payments: -

Preparation of supplementary material on financial results: None

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	41,947		(2.8)	1,079	(14.4)	1,626	(18.9)	888	(32.1)
December 31, 2023	43,163		0.3	1,260	(36.2)	2,006	(24.6)	1,308	(13.9)

(Note) Comprehensive income:	Nine months ended December 31, 2024:	¥	2,155 million	[(46.6) %]
		Nine months ended December 31, 2023:	¥	4,036 million	[(18.2) %]

		Basic earnings	Diluted earnings per
		per share	share
Nine months ended		Yen				Yen
December 31, 2024		25.04				-
December 31, 2023		35.36				-
(2) Consolidated Financial Position
		Total assets		Net assets			Capital adequacy ratio

As of		Millions of yen		Millions of yen				%
December 31, 2024		83,132		64,535				69.9
March 31, 2024		80,613		66,471				74.4

(Reference) Equity: As of	December 31, 2024:	¥	58,148 million
As of	March 31, 2024:	¥	60,005 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			-	24.00		-		25.00	49.00
Fiscal year ending March 31, 2025			-	25.00		-

Fiscal year ending March 31, 2025									25.00	50.00
(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		62,000		8.4	2,000	22.5	2,600	3.5	1,600	3.7	44.19
(Note) Revision to the financial results forecast announced most recently:	None
* Notes:
(1) Significant changes in the scope of consolidation during the period:	None
Newly included:	-	(Company name:							)
Excluded:	-	(Company name:							)

Adoption of accounting treatment specific to the preparation of quarterly consolidated financial statements: Yes
Changes in accounting policies, changes in accounting estimates, and restatement
1. Changes in accounting policies due to revisions to accounting standards and other regulations: Yes
2. Changes in accounting policies due to other reasons: None
3. Changes in accounting estimates: None
4. Restatement: None
Number of issued shares (common shares)
1. Total number of issued shares at the end of the period (including treasury shares):

December 31, 2024:	37,138,900	shares
March 31, 2024:	37,138,900	shares
2) Number of treasury shares at the end of the period:
December 31, 2024:	2,658,241	shares
March 31, 2024:	934,883	shares

3) Average number of shares outstanding during the period:
Nine months ended December 31, 2024:	35,469,207	shares
Nine months ended December 31, 2023:	36,995,194	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

(Notes on forward-looking statements, etc.)

The forward-looking statements contained in this document are based on judgments made in accordance with information available at the time of the release of this document and include many uncertain factors. Actual results may differ from these forecasts due to changes in business conditions and other factors.

For the assumptions used for the financial results forecast as well as precautions regarding the use of such forecast, please refer to "1. Qualitative Information on Quarterly Financial Results (3) Explanation Regarding Consolidated Financial Results Forecast and Other Forward-looking Information" on page 3 of the Attachments (Japanese version only).

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	15,904	17,267
Notes and accounts receivable - trade, and contract	12,707	12,348
assets

Electronically recorded monetary claims -	4,124	4,459
operating

Securities	276	273
Merchandise and finished goods	1,159	1,586
Work in process	2,845	2,387
Raw materials and supplies	3,471	3,439
Other	1,430	1,994
Allowance for doubtful accounts	(166)	(162)
Total current assets	41,753	43,594
Non-current assets
Property, plant and equipment
Buildings and structures, net	7,769	7,879
Machinery, equipment and vehicles, net	5,888	6,079
Land	9,940	9,937
Construction in progress	1,767	1,430
Other, net	702	693
Total property, plant and equipment	26,067	26,020
Intangible assets
Leasehold interests in land	925	937
Other	102	92
Total intangible assets	1,027	1,030
Investments and other assets
Investment securities	9,984	11,007
Long-term loans receivable	18	19
Retirement benefit asset	0	-
Other	1,840	1,552
Allowance for doubtful accounts	(78)	(91)
Total investments and other assets	11,765	12,487
Total non-current assets	38,860	39,538
Total assets	80,613	83,132

		(Millions of yen)
	As of March 31, 2024	As of December 31, 2024

Liabilities
Current liabilities
Notes and accounts payable - trade	3,958	3,443
Electronically recorded obligations - operating	4,149	2,911
Short-term borrowings	670	1,867
Income taxes payable	542	243
Provision for bonuses	685	404
Provision for bonuses for directors (and other	13	26
officers)

Provision for share awards for directors (and other	17	7
officers)

Other	2,756	3,370
Total current liabilities	12,794	12,275
Non-current liabilities
Long-term borrowings	16	4,860
Provision for share awards for directors (and other	8	8
officers)

Retirement benefit liability	36	12
Other	1,287	1,439
Total non-current liabilities	1,348	6,321
Total liabilities	14,142	18,597
Net assets
Shareholders' equity
Share capital	6,418	6,418
Capital surplus	1,725	1,719
Retained earnings	46,397	45,499
Treasury shares	(816)	(2,596)
Total shareholders' equity	53,724	51,041
Accumulated other comprehensive income
Valuation difference on available-for-sale	2,392	3,077
securities

Foreign currency translation adjustment	3,547	3,716
Remeasurements of defined benefit plans	341	312
Total accumulated other comprehensive income	6,281	7,106
Non-controlling interests	6,465	6,387
Total net assets	66,471	64,535
Total liabilities and net assets	80,613	83,132

Quarterly Consolidated Statements of Income and Comprehensive Income

Quarterly Consolidated Statements of Income and 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

Net sales	43,163	41,947
Cost of sales	35,688	34,402
Gross profit	7,475	7,544
Selling, general and administrative expenses	6,215	6,465
Operating profit	1,260	1,079
Non-operating income
Interest income	114	104
Dividend income	184	183
Share of profit of entities accounted for using equity	112	112
method

Foreign exchange gains	99	25
Gain on sale of scraps	122	102
Other	159	85
Total non-operating income	794	614
Non-operating expenses
Interest expenses	43	36
Other	4	30
Total non-operating expenses	47	67
Ordinary profit	2,006	1,626
Extraordinary income
Gain on sale of non-current assets	11	11
Gain on sale of investment securities	200	0
Insurance claim income	12	12
Subsidy income	-	10
Other	0	1
Total extraordinary income	225	35
Extraordinary losses
Loss on sale of non-current assets	0	0
Loss on retirement of non-current assets	10	39
Loss on sale of investment securities	58	-
Other	3	0
Total extraordinary losses	72	39
Profit before income taxes	2,159	1,622
Income taxes	542	447
Profit	1,617	1,175
Profit attributable to
Profit attributable to owners of parent	1,308	888
Profit attributable to non-controlling interests	309	287
Other comprehensive income
Valuation difference on available-for-sale securities	225	673
Foreign currency translation adjustment	1,897	349
Remeasurements of defined benefit plans, net of tax	(17)	(28)
Share of other comprehensive income of entities	313	(14)
accounted for using equity method

Total other comprehensive income	2,419	980
Comprehensive income	4,036	2,155
Comprehensive income attributable to
Comprehensive income attributable to owners of parent	3,346	1,713
Comprehensive income attributable to non-controlling	689	442
interests