Neturen Co., Ltd.TSE: 5976

Consolidated Financial Results for the Three Months Ended June 30, 2024

Aug 9, 2024 at 6:34 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 Three Months Ended June 30, 2024

[Japanese GAAP]

								August 7, 2024
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 Three Months Ended June 30, 2024 (April 1, 2024 to June 30, 2024)
(1) Consolidated Operating Results					(Percentages indicate year-on-year changes.)
		Net sales		Operating profit	Ordinary profit	Profit attributable to
			owners of parent

Three months ended	Millions of yen	%	Millions of yen	%	Millions of yen	%	Millions of yen	%
June 30, 2024		13,975	0.1	394	45.6	679	21.3	374	35.3
June 30, 2023		13,962	0.3	270	(60.3)	560	(45.8)	276	(52.6)

(Note) Comprehensive income:	Three months ended June 30, 2024:	¥	1,792 million	[ 113.8%]
		Three months ended June 30, 2023:	¥	838 million	[ (61.2) %]
		Basic earnings		Diluted earnings per
		per share		share
Three months ended				Yen			Yen
June 30, 2024				10.37			-
June 30, 2023				7.37			-
(2) Consolidated Financial Position
		Total assets		Net assets	Capital adequacy ratio
As of		Millions of yen	Millions of yen		%
June 30, 2024			81,285		66,829		74.1
March 31, 2024			80,613		66,471		74.4
(Reference) Equity: As of	June 30, 2024:	¥	60,214 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			-
Fiscal year ending March 31, 2025					25.00	-	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.)
								Profit attributable	Basic earnings
		Net sales		Operating profit	Ordinary profit	to owners of
			per share
								parent

Six months ending		Millions of yen	% Millions of yen	% Millions of yen	% Millions of yen	%	Yen
	30,000	6.0	800	15.9	1,000	(15.4)	500	(26.3)	13.81
September 30, 2024

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:							)

(2) Adoption of accounting treatment specific to the preparation of quarterly consolidated financial statements: Yes

(Note) For details, please see "2. Quarterly Consolidated Financial Statements (3) Notes to Quarterly Consolidated Financial Statements (Adoption of accounting treatment specific to the preparation of quarterly consolidated financial statements)" on page 7 of the appendix (Japanese version only).

Changes in accounting policies, changes in accounting estimates, and restatement
1. Changes in accounting policies due to revisions to accounting standards and other regulations: None
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):

June 30, 2024:	37,138,900	shares
March 31, 2024:	37,138,900	shares
2) Number of treasury shares at the end of the period:
June 30, 2024:	1,253,323	shares
March 31, 2024:	934,883	shares

3) Average number of shares outstanding during the period:
Three months ended June 30, 2024:	36,077,072	shares
Three months ended June 30, 2023:	37,521,527	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 June 30, 2024
Assets
Current assets
Cash and deposits	15,904	14,337
Notes and accounts receivable - trade, and contract	12,707	12,118
assets

Electronically recorded monetary claims -	4,124	4,247
operating

Securities	276	281
Merchandise and finished goods	1,159	1,276
Work in process	2,845	3,507
Raw materials and supplies	3,471	3,609
Other	1,430	2,212
Allowance for doubtful accounts	(166)	(170)
Total current assets	41,753	41,420
Non-current assets
Property, plant and equipment
Buildings and structures, net	7,769	8,277
Machinery, equipment and vehicles, net	5,888	5,861
Land	9,940	9,964
Construction in progress	1,767	1,677
Other, net	702	710
Total property, plant and equipment	26,067	26,492
Intangible assets
Leasehold interests in land	925	962
Other	102	108
Total intangible assets	1,027	1,070
Investments and other assets
Investment securities	9,984	10,364
Long-term loans receivable	18	18
Retirement benefit asset	0	-
Other	1,840	1,997
Allowance for doubtful accounts	(78)	(78)
Total investments and other assets	11,765	12,301
Total non-current assets	38,860	39,865
Total assets	80,613	81,285

Liabilities Current liabilities

Notes and accounts payable - trade Electronically recorded obligations - operating

Short-term borrowings Income taxes payable

Provision for bonuses

Provision for bonuses for directors (and other officers)

Provision for share awards for directors (and other officers)

Other

Total current liabilities Non-current liabilities

(Millions of yen)

As of March 31, 2024

As of June 30, 2024

3,958	4,153
4,149	3,863
670	669
542	220
685	396
13	17
17	19
2,756	3,561
12,794	12,902

Long-term borrowings	16	14
Provision for share awards for directors (and other	8	11
officers)

Retirement benefit liability	36	23
Other	1,287	1,504
Total non-current liabilities	1,348	1,553
Total liabilities	14,142	14,456
Net assets
Shareholders' equity
Share capital	6,418	6,418
Capital surplus	1,725	1,725
Retained earnings	46,397	45,866
Treasury shares	(816)	(1,163)
Total shareholders' equity	53,724	52,845
Accumulated other comprehensive income
Valuation difference on available-for-sale	2,392	2,586
securities

Foreign currency translation adjustment	3,547	4,451
Remeasurements of defined benefit plans	341	331
Total accumulated other comprehensive income	6,281	7,368
Non-controlling interests	6,465	6,614
Total net assets	66,471	66,829
Total liabilities and net assets	80,613	81,285

Quarterly Consolidated Statements of Income and Comprehensive Income

Quarterly Consolidated Statements of Income and Comprehensive Income (For the three months)

		(Millions of yen)
	For the three months	For the three months
	ended June 30, 2023	ended June 30, 2024
Net sales	13,962	13,975
Cost of sales	11,661	11,394
Gross profit	2,300	2,580
Selling, general and administrative expenses	2,029	2,185
Operating profit	270	394
Non-operating income
Interest income	10	21
Dividend income	128	125
Share of profit of entities accounted for using equity	37	32
method

Foreign exchange gains	41	65
Other	87	59
Total non-operating income	305	303
Non-operating expenses
Interest expenses	14	14
Other	2	4
Total non-operating expenses	16	18
Ordinary profit	560	679
Extraordinary income
Gain on sale of non-current assets	11	10
Gain on sale of investment securities	13	-
Insurance claim income	6	1
Subsidy income	-	3
Other	0	0
Total extraordinary income	31	15
Extraordinary losses
Loss on sale of non-current assets	0	-
Loss on retirement of non-current assets	1	5
Total extraordinary losses	1	5
Profit before income taxes	590	689
Income taxes	222	227
Profit	367	462
Profit attributable to
Profit attributable to owners of parent	276	374
Profit attributable to non-controlling interests	91	88
Other comprehensive income
Valuation difference on available-for-sale securities	135	168
Foreign currency translation adjustment	424	1,022
Remeasurements of defined benefit plans, net of tax	(6)	(9)
Share of other comprehensive income of entities	(82)	148
accounted for using equity method

Total other comprehensive income	470	1,330
Comprehensive income	838	1,792
Comprehensive income attributable to
Comprehensive income attributable to owners of	633	1,461
parent

Comprehensive income attributable to non-controlling	205	331
interests