Notice: This document is a translation of the original Japanese document and is only for reference purposes. In the event of any discrepancy between this translated document and the original Japanese document, the latter shall prevail.
April 24, 2025
Summary of Consolidated Financial Results for the Year Ended March 31 2025
(Based on Japanese GAAP)
Company name: | TOMEN DEVICES CORPORATION |
Listing: | Tokyo Stock Exchange |
Securities code: | 2737 |
URL: | https://www.tomendevices.co.jp |
Representative: | Kiyotaka Nakao, President |
Inquiries: | Hideki Hara, General Manager, Accounting Department |
Telephone: | 03-3536-9150 |
Scheduled date of ordinary general meeting of shareholders: | June 26, 2025 |
Scheduled date to file Securities Report: | June 23, 2025 |
Scheduled date to commence dividend payments: | June 27, 2025 |
Preparation of supplementary material on financial results: | Yes |
Holding of financial results briefing: | Yes |
(Amounts less than million yen are rounded down.)
1. Consolidated financial results for the year ended March 31, 2025 (from April 1, 2024 to March 31, 2025)
(1) Consolidated operating results (cumulative) | (Percentages indicate year-on-year changes.) | |||||||||
Net sales | Operating profit | Ordinary profit | Profit attributable to | |||||||
owners of parent | ||||||||||
Year ended | Millions of yen | % | Millions of yen | % | Millions of yen | % | Millions of yen | % | ||
March 31, 2025 | 421,671 | 13.8 | 10,169 | 7.3 | 7,377 | 18.9 | 5,588 | 166.6 | ||
March 31, 2024 | 370,676 | (11.2) | 9,480 | (22.5) | 6,203 | (5.9) | 2,096 | (57.3) | ||
Note: Comprehensive income Year ended March 31, 2025 | ¥5,473 million | [ 25.2% ] | |||||
Year ended March 31, 2024 | ¥4,372 million | [ (36.4)% ] | |||||
Earnings per share | Profit attributable to | Ordinary profit/total assets | Operating profit/net sales | ||||
owners of parent/equity | |||||||
Year ended | Yen | % | % | % | |||
March 31, 2025 | 821.69 | 11.7 | 6.0 | 2.4 | |||
March 31, 2024 | 308.23 | 4.7 | 5.2 | 2.6 | |||
Reference: Share of profit (loss) of entities accounted for using equity method | Year ended March 31, 2025 | ¥27 million | |||||
Year ended March 31, 2024 | ¥22 million | ||||||
(2) Consolidated financial position | |||||||
Total assets | Net assets | Equity-to-asset ratio | Net assets per share | ||||
As of | Millions of yen | Millions of yen | % | yen | |||
March 31, 2025 | 113,970 | 49,621 | 43.5 | 7,296.29 | |||
March 31, 2024 | 130,213 | 45,508 | 34.9 | 6,691.54 | |||
Reference: Equity | As of March 31, 2025 | ¥49,621 million | |||||
As of March 31, 2024 | ¥45,508 million |
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(3) Consolidated cash flows
Cash flows from | Cash flows from | Cash flows from | Cash and cash equivalents | |
operating activities | investing activities | financing activities | at end of period | |
Year ended | Millions of yen | Millions of yen | % | yen |
March 31, 2025 | 9,210 | (21) | (16,853) | 13,172 |
March 31, 2024 | 4,425 | 494 | 2,904 | 20,865 |
2. Cash dividends
Annual dividends per share | ||||
1st quarter-end | 2nd quarter-end | 3rd quarter-end | Fiscal year-end | |
Yen | Yen | Yen | Yen | |
Year ended March 31, 2024 | - | 0.00 | - | 200.00 |
Year ended March 31, 2025 | - | 0.00 | - | 300.00 |
Year ending March 31, 2026 | - | 0.00 | - | 260.00 |
(Forecast) | ||||
Total
Yen
200.00
300.00
260.00
Total cash | Dividend | Ratio of |
dividends | payout ratio | dividends to net |
(Total) | (Consolidated) | assets |
(Consolidated) | ||
Millions of yen | % | % |
1,360 | 64.9 | 3.1 |
2,040 | 36.5 | 4.3 |
36.8 | ||
3. Forecast of consolidated financial results for the year ending March 31, 2026 (from April 1, 2025 to
March 31, 2026) | Percentages indicate year-on-year changes | |||||||||
Net sales | Operating profit | Ordinary profit | Profit attributable to | Earnings per share | ||||||
owners of parent | ||||||||||
Millions of yen | % | Millions of yen | % | Millions of yen | % | Millions of yen | % | Yen | ||
Full year | 400,000 | (5.1) | 8,800 | (13.5) | 6,500 | (11.9) | 4,800 | (14.1) | 705.78 |
4. Notes
- Changes in significant subsidiaries during the year ended March 31, 2024 (changes in specified subsidiaries resulting in the change in the scope of consolidation) : No
- Changes in accounting policies, changes in accounting estimates, and restatement of prior period financial statement Changes in accounting policies due to revisions to accounting standards and other regulations: Yes
Changes in accounting policies due to other reasons: No
Changes in accounting estimates: No
Restatement of prior period financial statements: No - Number of issued shares (common shares)
Total number of issued shares at the end of the period (including treasury shares)
As of March 31, 2025
As of March 31, 2024
6,802,000 shares
6,802,000 shares
Number of treasury shares at the end of the period
As of March 31, 2025
As of March 31, 2024
1,082 shares
1,032 shares
Average number of shares outstanding during the period (cumulative from the beginning of the fiscal year)
Year ended March 31, 2025
Year ended March 31, 2024
6,800,959 shares
6,801,012 shares
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Reference: Summary of non-consolidated financial results
1. Non-consolidated financial results for the year ended March 31, 2025 (from April 1, 2024 to March 31, 2025)
(1) Non-consolidated operating results
Net sales | Operating profit | Ordinary profit | Profit | |||||||||
Year ended | Millions of yen | % | Millions of yen | % | Millions of yen | % | Millions of yen | % | ||||
March 31, 2025 | 179,033 | 20.9 | 4,385 | 8.1 | 3,841 | 27.6 | 2,769 | - | ||||
March 31, 2024 | 148,087 | (27.0) | 4,058 | (43.6) | 3,010 | (8.1) | (557) | - | ||||
Earnings per share | ||||||||||||
Year ended | Yen | |||||||||||
March 31, 2025 | 407.25 | |||||||||||
March 31, 2024 | (82.04) |
(2) Non-consolidated financial position
Total assets | Net assets | Equity-to-asset ratio | Net assets per share | |
As of | Millions of yen | Millions of yen | % | yen |
March 31, 2025 | 70,762 | 26,268 | 37.1 | 3,862.52 |
March 31, 2024 | 74,731 | 24,647 | 33.0 | 3,624.07 |
Reference: Equity | As of March 31, 2025: | ¥26,268 million | ||
As of March 31, 2024: | ¥24,647 million |
- Financial results reports are exempt from audit conducted by certified public accountants or an audit firm.
- Proper use of forecasts of financial results, and other special matters
(Caution regarding forward-looking statements and others)
The forward-looking statements, including earnings forecasts, contained in these materials are based on information currently available to the Company and on certain assumptions deemed to be reasonable. Consequently, any statements herein do not constitute assurances regarding actual results by the Company. Actual business and other results may differ substantially due to various factors.
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Contents of the Attachment
1. Overview of Operating Results, etc.……………………………………………………………………. 5
- Overview of Operating Results………………………………………………………………………. 5
- Overview of Financial Position………………………………………………………………………. 5
- Overview of Cash Flows …………………………………………………………………………….. 6
- Future Outlook……………………………………………………………………………………….. 7
(5) | Basic Policy on Profit Distribution and Dividends for the Current and Next Fiscal Years………….. | 7 | |
2. | Basic Approach to Selecting Accounting Standards …………………………………………………… | 8 | |
3. | Consolidated Financial Statements and Primary Notes………………………………………………… | 9 | |
(1) | Consolidated Balance Sheet …………………………………………………………………………. | 9 | |
(2) | Consolidated Statements of Income and Comprehensive Income …………………………………... | 11 | |
Consolidated Statement of Income………………………………………………………………… | 11 | ||
Consolidated Statement of Comprehensive Income………………………………………………. 12 | |||
(3) | Consolidated Statement of Changes in Shareholders' Equity, etc.…………………………………… | 13 |
- Consolidated Statements of Cash Flows……………………………………………………………... 15
- Notes to Consolidated Financial Statements…………………………………………………………. 16 (Notes on Going Concern Assumption) ……………………………………………………………... 16 (Notes on changes in accounting policies) …………………………………………………………... 16 (Segment Information) …………………………………………………………………………….. 17 (Per Share Information) ……………………………………………………………………………… 18 (Significant Subsequent Events) …………………………………………………………………….. 18
4. Supplementary Information ……………………………………………………………………………. 19
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1. Overview of Operating Results, etc
- Overview of Operating Results
During the consolidated fiscal year under review, the Japanese economy achieved a moderate recovery as personal consumption picked up in response to an improvement of the employment and income environment and inbound tourism generated strong demand. The outlook for the global economy remained uncertain, mainly reflecting concerns about the outlook for the Chinese economy, the prolonged conflict in Ukraine, the instability in the Middle East, and a spreading trade war driven by the U.S.
In the electronics industry, demand for some general servers, storage, PCs, smartphones, and other products increased with the growth of AI-related and other demand and progress in inventory adjustment. However, the momentum has remained insufficient for a full-scale market recovery. Meanwhile, in the in-car product market, there was an increase in the number of semiconductors used in cars, chiefly due to ADAS, autonomous driving, electrification, and the shift to integrated driver consoles.
In these circumstances, the Tomen Devices Group posted net sales of 421,671 million yen (up 13.8% year on year) due to an increase in sales of products for servers and storage and products for automotive applications, as well as the upward trend in prices of memory products, which are its mainstay products, in the second quarter of the fiscal year under review. Operating profit stood at 10,169 million yen (up 7.3% year on year), ordinary profit was 7,377 million yen (up 18.9% year on year), and profit attributed to owners of parent was 5,588 million yen (up 166.6% year on year).
Operating results by segment for the fiscal year under review are as follows:
(Japan)
While sales from the SiP and foundry businesses decreased, sales of memory products for servers and storage and products for automotive applications (memory products and OLEDs) increased, which resulted in net sales in this segment of 127,314 million yen (up 17.1% year on year). Segment profit was 4,396 million yen (up 8.3% year on year).
(Overseas)
Net sales in this segment were 294,356 million yen (up 12.4% year on year) due to strong sales of memory products for servers and storage and an increase in sales of memory products for PCs and products for smartphones (high-resolution CIS and OLED products). Segment profit stood at 5,884 million yen (up 13.0% year on year).
For results by product category, see 4. Supplementary Information on page 19.
(2) Overview of Financial Position
Total assets at the end of the consolidated fiscal year under review stood at 113,970 million yen (down 12.5% from the end of the previous fiscal year). This was chiefly attributable to decreases of notes and accounts receivable - trade, deposits paid, cash and deposits and merchandise.
Liabilities totaled 64,349 million yen (down 24.0% from the end of the previous fiscal year). This mainly reflects decreases in short-term borrowings and accounts payable - trade.
Net assets were 49,621 million yen (up 9.0% from the end of the previous fiscal year). This increase was mainly due to the recording of profit attributable to owners of parent and the payment of dividends.
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(3) Overview of Cash Flows
Regarding cash flows as of the end of the fiscal year under review, cash and cash equivalents (hereafter, "cash") decreased 7,692 million yen from the end of the previous fiscal year, to 13,172 million yen, due to a decrease in cash flows from financing activities despite an increase in cash flows from operating activities, among other factors.
The situation of the cash flows in each category as of the end of the fiscal year under review is as follows.
(Cash flows from operating activities）
Net cash provided by operating activities amounted to 9,210 million yen (up 4,785 million yen year on year). Contributing factors included a decrease in cash attributed to a decrease in trade payables (6,132 million yen) and an increase in cash reflecting the recording of profit before income taxes (7,484 million yen) and a decrease in trade receivables (5,151 million yen).
(Cash flows from investing activities）
Net cash used in investing activities was 21 million yen (compared to a cash inflow of 494 million yen in the previous fiscal year). This was a result chiefly of a decrease in cash caused by the purchase of intangible assets (23 million yen).
(Cash flows from financing activities)
Net cash used in financing activities was 16,853 million yen (compared to a cash inflow of 2,904 million yen in the previous fiscal year). This change was primarily attributable to a decrease in cash which resulted from a decrease in short-term borrowings (15,547 million yen).
(Reference) Trends in cash flow-related indicators
Fiscal Year ended | Fiscal Year ended | Fiscal Year ended | Fiscal Year ended | Fiscal Year ended | |
March 31, 2021 | March 31, 2022 | March 31, 2023 | March 31, 2024 | March 31, 2025 | |
Equity-to-asset ratio (%) | 26.8 | 33.0 | 40.3 | 34.9 | 43.5 |
Equity-to-asset ratio based on | 22.8 | 37.1 | 41.6 | 34.3 | 33.4 |
market value (%) | |||||
Cash Flow Interest-Bearing | － | 1.6 | － | 6.7 | 1.5 |
Debt Ratio (year) | |||||
Interest Coverage Ratio (times) | － | 54.4 | － | 2.9 | 5.1 |
Equity-to-asset ratio: Equity / Net assets | |||||
Equity-to-asset ratio based on market value: Market capitalization / Net assets | |||||
Cash Flow Interest-Bearing Debt Ratio: Interest bearing debt / Cash Flow | |||||
Interest Coverage Ratio: Cash flow / Interest payment | |||||
(Notes) 1. Each indicator is calculated based on consolidated financial figures. |
- Total market capitalization is calculated on the basis of the total number of issued shares excluding treasury shares.
- Cash flows denote cash flows from operating activities.
- Interest-bearingdebt refers to all liabilities on the consolidated balance sheets for which interest is paid.
- Cash flow/interest-bearing debt ratio and interest coverage ratio are not shown for fiscal years when there were negative cash flows from operating activities.
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- Future Outlook
Regarding the forecast consolidated financial results for the fiscal year ending March 31, 2026, while the trend of companies expanding their capital expenditures is expected to continue reflecting initiatives for digitalization, decarbonization, and the development of resilient supply chains, the outlook is expected to remain uncertain mainly due to the impact of the expansion of the trade war attributed to the continuing shift to protectionism by the U.S., concerns regarding the future of the Chinese economy, and the prolonged instability of the situations in Ukraine and the Middle East. Memory is the Company's mainstay product, and the trend in the memory market continues to be a growth trend driven by demand for data centers, mainly generative AI data centers, and there has been an increase in demand for some general servers, storage, PCs, smartphones, and other products. However, the momentum of the recovery has remained insufficient overall, and it is expected to be some time before the market has fully recovered.
In this business environment, the Company will work on comprehensive solutions, including proposals involving leading-edge products, in sectors where growth potential and competitiveness are expected, such as by driving the development of the generative AI server business and reinforcing the sales structure of the automotive business. Currently, the momentum of the recovery of the pace of assembly manufacturers' procurement activities has been weak, and a decline is expected due to the impact of fiercer competition caused by the emergence of Chinese memory manufacturers and the global increase in the cost of trade.
Regarding the financial results forecasts for the fiscal year ending March 31, 2026, the Company expects net sales to be 400,000 million yen (down 5.1% year on year), operating profit to be 8,800 million yen (down 13.5% year on year), ordinary profit to be 6,500 million yen (down 11.9% year on year), and profit attributable to owners of parent to be 4,800 million yen (down 14.1% year on year).
(Note) The forecasts are based on information currently available and actual results may differ from these forecasts due to a variety of factors.
- Basic Policy on Profit Distribution and Dividends for the Current and Next Fiscal Years
The Company's dividend policy is to pay performance-based dividends based on its consolidated financial results. The Company will respond flexibly to continue its stable payment of dividends, taking an increase in the payout ratio into consideration, in addition to the changes in the economic environment, demands for funds and other factors.
In accordance with this dividend policy, the Company plans to pay a dividend for the fiscal year under review of 300 yen per share (with a consolidated payout ratio of 36.5%) in light of the revisions to the consolidated financial results forecasts and other factors.
Next fiscal year, the Company plans to pay 260 yen per share (with a consolidated payout ratio of 36.8%). However, the Company intends to use retained earnings to strengthen its management foundation, meet the
demand for funds accompanying the expansion of the business and strengthen its financial standing.
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2. Basic Approach to Selecting our Accounting Standard
Tomen Devices Tomen Devices Group currently prepares consolidated financial statements using the Generally Accepted Accounting Principles in Japan to permit comparisons of the consolidated financial statements and in consideration of the rarity of the need to procure funds in overseas markets, among other factors. At present, the Group does not see a positive benefit from transitioning to the International Financial Reporting Standards (IFRS). Accordingly, the Group will consider the application of the IFRS based on trends in the foreign shareholder ratio and the actions of other companies which belong to the same industry as the Group going forward.
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3. Consolidated Financial Statements and Primary Notes
- Consolidated balance sheets
(Millions of yen) | ||
As of March 31, 2024 | As of March 31, 2025 | |
Assets | ||
Current assets | ||
Cash and deposits | 8,514 | 5,801 |
Notes and accounts receivable - trade | 60,595 | 55,613 |
Electronically recorded monetary claims - operating | 2,010 | 1,436 |
Merchandise | 42,609 | 41,219 |
Advance payments to suppliers | 745 | 629 |
Deposits paid | 12,350 | 7,371 |
Other | 1,740 | 703 |
Allowance for doubtful accounts | (80) | (72) |
Total current assets | 128,486 | 112,703 |
Non-current assets | ||
Property, plant and equipment | ||
Buildings | 115 | 115 |
Accumulated depreciation | (100) | (103) |
Buildings, net | 14 | 12 |
Other | 677 | 727 |
Accumulated depreciation | (518) | (517) |
Other, net | 158 | 210 |
Total property, plant and equipment | 173 | 222 |
Intangible assets | 318 | 264 |
Investments and other assets | ||
Investment securities | 213 | 231 |
Deferred tax assets | 852 | 389 |
Other | 169 | 159 |
Total investments and other assets | 1,235 | 780 |
Total non-current assets | 1,727 | 1,267 |
Total assets | 130,213 | 113,970 |
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(Millions of yen) | |||
As of March 31, 2024 | As of March 31, 2025 | ||
Liabilities | |||
Current liabilities | |||
Accounts payable - trade | 46,962 | 40,649 | |
Accounts payable - other | 4,529 | 5,488 | |
Short-term borrowings | 29,661 | 14,054 | |
Income taxes payable | － | 1,146 | |
Advances received | 1,072 | 1,486 | |
Provision for bonuses | 348 | 339 | |
Other | 1,430 | 401 | |
Total current liabilities | 84,005 | 63,566 | |
Non-current liabilities | |||
Retirement benefit liability | 565 | 592 | |
Other | 134 | 189 | |
Total non-current liabilities | 699 | 782 | |
Total liabilities | 84,705 | 64,349 | |
Net assets | |||
Shareholders' equity | |||
Share capital | 2,054 | 2,054 | |
Capital surplus | 16 | 16 | |
Retained earnings | 37,708 | 41,936 | |
Treasury shares | (3) | (3) | |
Total shareholders' equity | 39,775 | 44,003 | |
Accumulated other comprehensive income | |||
Deferred gains or losses on hedges | (122) | 90 | |
Foreign currency translation adjustment | 5,855 | 5,527 | |
Total accumulated other comprehensive income | 5,733 | 5,617 | |
Total net assets | 45,508 | 49,621 | |
Total liabilities and net assets | 130,213 | 113,970 |
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