Financial Results for the Fiscal Year Ended March 31, 2021 [Japanese GAAP]
(Consolidated Data)
Nikko Co., Ltd.
6306
Representative Director and President
Managing Director/General Manager of
Administrative Division
Scheduled date of Ordinary General Shareholders' Meeting: Scheduled date for filing the annual securities report:
May 14, 2021
Stock Exchange Listing: Tokyo Stock Exchange
URL http://www.nikko-net.co.jp
Masaru Tsuji
Hiroshi Fujii | TEL:078-947-3141 |
Scheduled date for | June 25, 2021 |
cash dividends: | |
Full-year earnings supplementary explanatory materials: | Yes | ||||||||||||
Financial results briefing session: | Yes (for analysts) | ||||||||||||
(Amounts rounded down to the nearest million yen) | |||||||||||||
1. Consolidated Performance for the Fiscal Year Ended March 31, 2021 (April 1, 2020 - March 31, 2021) | |||||||||||||
(1) Consolidated Operating Results | (% represents year-on-year change) | ||||||||||||
Net sales | Operating income | Ordinary income | Net income attributable | ||||||||||
to owners of parent | |||||||||||||
million yen | % | million yen | % | million yen | % | million yen | % | ||||||
Fiscal year ended | 37,866 | 7.7 | 2,302 | 12.1 | 2,973 | 38.8 | 2,082 | 31.1 | |||||
March 31, 2021 | |||||||||||||
Fiscal year ended | 35,151 | 10.6 | 2,053 | 43.9 | 2,142 | 35.9 | 1,588 | 18.1 | |||||
March 31, 2020 | |||||||||||||
Note: | Fiscal year | Fiscal year ended | |||||||||||
Comprehensive | ended March | 2,885 million yen 387.2%) | 592 million yen (-2.6%) | ||||||||||
March 31, 2020 | |||||||||||||
income: | 31, 2021 | ||||||||||||
Net income per share | Diluted net income | Return on equity | Ordinary profit to | Operating | |||||||||
per share | total assets | margin | |||||||||||
yen | yen | % | % | % | |||||||||
Fiscal year ended | 54.31 | - | 6.8 | 6.3 | 6.1 | ||||||||
March 31, 2021 | |||||||||||||
Fiscal year ended | 41.17 | - | 5.2 | 4.8 | 5.8 | ||||||||
March 31, 2020 | |||||||||||||
The Company carried out a one-to-five split of its common stock effective on October 1, 2019. Net income per share was calculated assuming that the split took place at the beginning of the previous fiscal year.
(2) Consolidated Financial Position
Total assets | Net assets | Equity ratio | Net assets per share | ||
million yen | million yen | % | yen | ||
As of March 31, 2021 | 48,697 | 31,451 | 64.5 | 823.01 | |
As of March 31, 2020 | 45,677 | 30,293 | 66.3 | 780.68 | |
(Reference) Capital: | As of March 31, 2021 | 31,427 million yen | As of March 31, 2020 | 30,267 million yen |
The Company carried out a one-to-five split of its common stock effective on October 1, 2019. Quarterly net assets per share was calculated assuming that the split took place at the beginning of the previous fiscal year.
(3) Consolidated Cash Flows
Cash flows from | Cash flows from investing | Cash flows from | Cash and cash equivalents | |
operating activities | activities | financing activities | at end of year | |
million yen | million yen | million yen | million yen | |
Fiscal year ended | 2,784 | (1,867) | (1,129) | 12,444 |
March 31, 2021 | ||||
Fiscal year ended | 3,809 | (609) | (868) | 12,575 |
March 31, 2020 | ||||
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2. Dividends
Total | Dividend | Rate of total | ||||||
Annual dividends | payout ratio | dividends to net | ||||||
dividends | ||||||||
(consolidated) | assets (consolidated) | |||||||
End | End of | End | Year- | Total | ||||
of 1Q | 2Q | of 3Q | end | |||||
Fiscal year ended | yen | yen | yen | yen | yen | million yen | % | % |
- | 100.00 | - | 20.00 | - | 1,550 | 97.6 | 5.1 | |
March 31, 2020 | ||||||||
Fiscal year ended | - | 15.00 | - | 18.00 | 33.00 | 1,260 | 60.5 | 4.1 |
March 31, 2021 | ||||||||
Fiscal year ending March | - | 15.00 | - | 15.00 | 30.00 | 67.4 | ||
31, 2022 (Forecasts) | ||||||||
The Company carried out a one-to-five split of its common stock effective as of October 1, 2019. The year-end dividend figure for the fiscal year ended March 31, 2020 takes this stock split into account and "-" is entered for the total annual dividends. The dividends for the fiscal year ended March 31, 2020 include commemorative dividend for the Company's 100th anniversary consisting of 50.00 yen per share as interim dividend and 10.00 yen per share as year-end dividend.
3. Consolidated Performance Forecast for the Fiscal Year Ending March 31, 2022 (April 1, 2021 - March 31, 2022) (Percentages indicate year-on-year changes from full fiscal year and first half of the previous fiscal year, respectively)
Net income per share | per share | |||||||||
Net sales | Operating income | Ordinary income | attributable to owners | |||||||
Net income | ||||||||||
of parent | ||||||||||
million yen | % | million yen | % | million yen | % | million yen | % | yen | ||
2Q (first half) | 19,000 | 4.3 | 1,100 | 10.0 | 1,300 | (18.1) | 850 | (22.7) | 22.16 | |
Full year | 39,000 | 3.0 | 2,300 | (0.1) | 2,500 | (15.9) | 1,700 | (18.3) | 44.33 |
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*Notes
- Changes in important subsidiaries during the period under review (changes in specific subsidiaries which involve changes in the scope of consolidation): None
- Changes in accounting policy, changes in accounting estimates, and retrospective restatements
- Changes in accounting policy arising from revision of accounting standards, etc.: Yes
- Changes in accounting policy other than those noted in (i) above: None
- Changes in accounting estimates: None
- Retrospective restatements: None
(Note) Please refer to (5) Notes to Consolidated Financial Statements (Changes in Accounting Policy) of
3. Consolidated Financial Statements and Notes to the Statements on page 15 of Accompanying Material for details.
- Shares issued (common stock)
(i) | Number of shares issued at end of | As of March | 40,000,000 shares | As of March | 40,000,000 shares |
period (including treasury stock) | 31, 2021 | 31, 2020 | |||
(ii) | Number of shares held in treasury | As of March | 1,814,260 shares | As of March | 1,229,230 shares |
at end of period | 31, 2021 | 31, 2020 | |||
(iii) | Average number of shares | As of March | 38,349,338 shares | As of March | 38,589,549 shares |
outstanding during the period | 31, 2021 | 31, 2020 | |||
- This report is exempt from audit procedures by certified public accountants or an auditing firm.
-
Explanation of the appropriate use of earnings forecasts, and other special notes (Cautionary statement with respect to forward-looking statements)
Any forecasts and forward-looking statements given herein are based on information available as of this report's publication and on certain assumptions that are deemed reasonable and these forecasts are not guarantees of future performance.
Actual results may differ significantly from forecasts due to various factors.
For the assumptions underlying the forecasts herein and other notice on the use of earnings forecasts, please refer to
(1) Overview of Operating Results for Fiscal Year Ended March 31, 2021 in 1. Overview of Operating Results, etc. on page 2 in the accompanying materials.
(How to obtain the earnings supplementary explanatory materials and the date of the financial results briefing session) The Company is scheduled to post the earnings supplementary explanatory materials on its website on Friday, May 14, 2021.
The Company has scheduled a financial results briefing session (live streaming) for analysts on Monday, June 7, 2021.
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Accompanying Material - Table of Contents | ||
1. | Overview of Operating Results, etc. .......................................................................................................................... | 5 |
(1) | Overview of Operating Results for Fiscal Year Ended March 31, 2021 ..................................................................... | 5 |
(2) | Overview of Financial Conditions for Fiscal Year Ended March 31, 2021.................................................................. | 6 |
(3) | Basic Policy Concerning Profit Distribution and Dividends for the Current Term and Next Term ............................... | 8 |
(4) | Risks Associated with Business, etc. ......................................................................................................................... | 8 |
2. | Status of the Nikko Corporate Group......................................................................................................................... | 9 |
3. | Basic Approach to the Selection of Accounting Standards ...................................................................................... | 10 |
4. | Consolidated Financial Statements and Notes to the Statements ........................................................................... | 11 |
(1) | Consolidated Balance Sheets.................................................................................................................................. | 11 |
(2) | Consolidated Statements of Income and Consolidated Statements of Comprehensive Income ............................. | 13 |
(Consolidated Statements of Income)...................................................................................................................... | 13 | |
(Consolidated Statements of Comprehensive Income)............................................................................................ | 14 | |
(3) | Consolidated Statements of Changes in Equity....................................................................................................... | 15 |
(4) | Consolidated Statements of Cash Flows ................................................................................................................. | 17 |
(5) | Notes to Consolidated Financial Statements ........................................................................................................... | 18 |
(Going Concern Assumption)................................................................................................................................... | 18 | |
(Changes in Accounting Policy) ............................................................................................................................... | 18 | |
(Change in the method of presentation) .................................................................................................................. | 18 | |
(Segment Information) ............................................................................................................................................. | 19 | |
(Per Share Information) ........................................................................................................................................... | 23 | |
(Significant Subsequent Events).............................................................................................................................. | 24 | |
5. | Other Information..................................................................................................................................................... | 25 |
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1. Overview of Operating Results, etc.
- Overview of Operating Results for Fiscal Year Ended March 31, 2021
-
Operating Results for Fiscal Year Ended March 31, 2021
During the fiscal year under review, the Japanese as well as global economies were unable to avoid a significant slowdown due to the impact of the lockdown imposed by various countries in response to the spread of the novel coronavirus infections and the state of emergency declared by Japan as a measure to prevent the spread of the infections. While expectations grow for the pandemic to subside with the spread of vaccination and for a recovery in economic activities, the outlook continues to be unclear given the concerns over the resurgence of the infections with coronavirus variants.
Under such circumstances, however, the construction-related industry, to which the Nikko Group is closely related, so far has not been much affected directly in Japan and has performed steadily. The Company expects the impact on the Japanese construction-related industry to continue to be small.
In the current fiscal year, which is the second year of the three-yearMedium-Term Management Plan, net sales totaled 37,800 million yen exceeding the target of 36,500 million yen, while operating income came to 2,300 million yen, lower than the target of 2,600 million yen. Compared with the net sales target of 38,000 million yen and operating income target of 3,000 million yen for the final fiscal year, the Company expects net sales of
39,000 million yen and operating income of 2,300 million yen, and the profitability remains as an issue. In particular, while the Japanese market share of the Company's mainstay Asphalt Plant-Related Business is high at 70%, the operating margin of the business for the current fiscal year remained largely unchanged from a year earlier at 6.4%, the lowest of all segments. At the same time, net sales have been exceeding the target thanks to more-than-expected growth of sales in new businesses such as mobile plants and waterproof boards as well as an increase in sales of the maintenance service business in Japan. Moreover, the Company has been steadily taking measures to achieve the Long-term Basic Policies formulated in the previous fiscal year, namely, to (i) improve profit margin in Japan to 10% by strengthening the domestic revenue base, (ii) double overseas sales from
4.5 billion yen by establishing business bases in the ASEAN region, (iii) promote new businesses, build a pillar with new products in the industrial and construction machinery fields and generate 10.0 billion yen in net sales of the new businesses, (iv) significantly improve labor productivity through work-style reform of centralization of office work and utilization of IoT and AI, and (v) set forth ROE as the KPI and achieve 8% or higher in ROE and simultaneously enhance returns to shareholders.
As for the Company's operating results for the period under review, net sales of the Asphalt Plant-Related Business, the Company's mainstay business, increased in Japan compared with the previous year. The increase is thanks to continued strong appetite for capital investment supported by robust performance by large road paving companies. Further, net sales of the Concrete Plant-Related Business rose compared with a year earlier. This was due to an increase in demand for replacement of aged plants given rising ready-mixed concrete market price. Overseas, net sales declined as a result of sales activities becoming restricted significantly in markets other than China. Also, the decline in net sales of the Asphalt Plant-Related Business in China remained small thanks to the early containment of the novel coronavirus infections.
As a result of these business activities, Nikko Group's consolidated operating results are as follows.
Net sales for the period under review increased 7.7% to 37,866 million yen compared with a year earlier, as sales at the Asphalt Plant-Related Business, Concrete Plant-Related Business, and Other Business increased, while those of Environment- and Conveyor-related Business declined.
In terms of profits, consolidated operating income increased 12.1% from a year earlier to 2,302 million yen, reflecting the sales growth. Consolidated ordinary income rose 38.8% compared with a year earlier to 2,973 million yen and net income attributable to owners of parent increased 31.1% from a year earlier to 2,082 million yen. Overview of operating results by segment is as follows.
Plant-Related Business>
Net sales of the Asphalt Plant-Related Business in Japan rose 19.8% compared with a year earlier to
15,790 million yen, as net sales of both products and maintenance business increased from a year earlier. Overseas net sales fell 15.2% compared with a year earlier, as both sales in China and exports declined from a year earlier. As a result, net sales of the business rose 11.1% from a year earlier to 19,467 million yen. New orders received and order backlog in the period under review increased compared with a year earlier.
Plant-Related Business>
Net sales of the Concrete Plant-Related Business rose 0.6% compared with a year earlier to 9,212 million yen, as net sales of maintenance business increased from a year earlier, offsetting a decline in those of products. New orders received and order backlog in the period under review increased compared with a year earlier. Conveyor-Related Business>
Net sales of environmental products declined 24.6% compared with a year earlier. Net sales of conveyor products declined 7.3% compared with a year earlier. As a result, net sales of the business declined 9.3% from a year earlier
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