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.
Financial Summary for the First 2 Quarters of Fiscal 2025 [Japanese GAAP] [Consolidated]
October 29, 2024 | |||
Name of listed company | ZENRIN CO., LTD. | Stock exchange listings: Tokyo and Fukuoka | |
Securities code | 9474 | URL https://www.zenrin.co.jp/ | |
Representative | [Title] | President and CEO | [Name] Zenshi Takayama |
Representative Director | |||
Director of the Board | |||
Contact | [Title] | Senior Executive Officer and | [Name] Yumiko Toshima TEL +81-93-882-9050 |
Head of Corporate Management Division |
Scheduled date of file semi-annual securities report: | October 30, 2024 |
Scheduled date of commencement of dividend payments: | December 3, 2024 |
Preparation of supplementary explanatory materials on financial results: | Yes |
Holding of financial results briefing: | Yes (For institutional investors and analysts) |
(Amounts are rounded down to the nearest million yen)
1. Consolidated Results of Operations in the First 2 Quarters of Fiscal 2025
ZENRIN's the First 2 quarters of fiscal 2025 is the period from April 1, 2024 to September 30, 2024.
(1) Consolidated Business Performance [cumulative]
The first 2 quarters of fiscal 2025 The first 2 quarters of fiscal 2024
[Note] Comprehensive income
The first 2 quarters of fiscal 2025 The first 2 quarters of fiscal 2024
(Percentages represent changes year on year) | |||||||
Net sales | Operating income | Ordinary income | Profit attributable to | ||||
owners of parent | |||||||
million yen | % | million yen | % | million yen | % | million yen | % |
28,712 | 5.7 | (275) | － | (341) | － | (116) | － |
27,153 | 4.7 | (1,581) | － | (1,626) | － | (1,221) | － |
The first 2 quarters of fiscal 2025: (50) million yen [ －%] | |||||||
The first 2 quarters of fiscal 2024: 2,438 million yen [ －%] | |||||||
Earnings per share | Diluted earnings per | ||||||
share | |||||||
yen | yen | ||||||
(2.19) | － | ||||||
(22.89) | － |
(2) Consolidated Financial Position
Total assets | Net assets | Ratio of equity to total assets | ||
million yen | million yen | % | ||
As of September 30, 2024 | 70,611 | 48,515 | 68.7 | |
As of March 31, 2024 | 75,402 | 49,321 | 65.3 | |
[Reference] Equity | As of September 30, 2024: 48,509 million yen | As of March 31, 2024: 49,220 million yen |
2. Dividends
Annual dividend | |||||
End of | End of | End of | Year-end | Total | |
the first quarter | the second quarter | the third quarter | |||
yen | yen | yen | yen | yen | |
Fiscal 2024 | － | 13.50 | － | 15.00 | 28.50 |
Fiscal 2025 | － | 15.00 | |||
Fiscal 2025 [forecast] | － | 15.00 | 30.00 |
[Note] Revision from most recently announced forecast for dividends: None
3. Forecast for Consolidated Results of Operations in Fiscal 2025 ZENRIN's fiscal 2025 is the period from April 1, 2024 to March 31, 2025.
(Percentages represent changes year on year) | |||||||||
Net sales | Operating income | Ordinary income | Profit attributable to | Earnings | |||||
owners of parent | per share | ||||||||
million yen | % | million yen | % | million yen | % | million yen | % | yen | |
Fiscal year | 64,300 | 4.8 | 3,600 | 81.7 | 3,700 | 79.6 | 2,500 | 20.3 | 46.84 |
[Note] Revision from most recently announced forecast for results of operations: None
1. Qualitative Information on Semi-annual Results
(1) Explanation of Business Performance
During the first two quarters of fiscal 2025 (from April 1, 2024 to September 30, 2024), the Japanese economy, while showing some signs of stagnation, continued its moderate recovery trend as the employment and income environment improved. However, the outlook remains uncertain due to factors such as rising prices, fluctuations in the financial and capital markets and the situation in the Middle East.
In such an environment, net sales in the automotive-related business increased as sales of data for in-car navigation systems grew. In the IoT-related business, API services also performed steadily. The growth in sales of data for in-car navigation systems includes the recording of one-time sales that are due to underreporting of quantities from previous fiscal years.
In terms of profit and loss, while personnel expenses increased due to the impact of base salary increases and other factors, each profit measure improved due to the effect of price revisions in addition to changes in the composition of sales.
As a result, the ZENRIN Group in the first two quarters of fiscal 2025 reported net sales of 28,712 million yen (an increase of 1,559 million yen, or up 5.7% compared to the same period of the previous fiscal year), operating loss of 275 million yen (improvement of 1,306 million yen compared to the same period of the previous fiscal year), ordinary loss of 341 million yen (improvement of 1,284 million yen compared to the same period of the previous fiscal year), and loss attributable to owners of parent of 116 million yen (improvement of 1,104 million yen compared to the same period of the previous fiscal year), due in part to the recording of gain on sale of shares of subsidiaries as extraordinary income.
It should be noted that while fixed costs, such as map database development expenses, are incurred throughout the year, expenses generally precede net sales due to the strong seasonal nature of net sales, which tend to be concentrated at the end of the fiscal year.
Information by business segment is omitted because the ZENRIN Group's reportable segment is a single segment.
(2) Explanation of Financial Position
Total assets at the end of the second quarter of fiscal 2025 amounted to 70,611 million yen (decreased 4,790 million yen, or down 6.4%, compared to the end of the previous fiscal year) reflecting a decrease in notes and accounts receivable - trade, and contract assets due to seasonal fluctuations and other factors.
Liabilities amounted to 22,096 million yen (decreased 3,985 million yen, or down 15.3%, compared to the end of the previous fiscal year). While advances received increased, accounts payable - trade decreased due to seasonal fluctuations and other factors, and short-term loans payable also decreased.
Net assets amounted to 48,515 million yen (decreased 805 million yen, or down 1.6%, compared to the end of the previous fiscal year) reflecting a decrease in retained earnings due to dividends of surplus and other factors.
As a result, the ratio of equity to total assets at the end of the second quarter of fiscal 2025 was 68.7% (up 3.4 points compared to the end of the previous fiscal year).
The following outlines the status of cash flows in the first two quarters of fiscal 2025.
Cash and cash equivalents at the end of the second quarter of fiscal 2025 stood at 12,325 million yen (decreased 888 million yen, or down 6.7%, compared to the end of the previous fiscal year).
Cash Flows from Operating Activities
Net cash provided by operating activities amounted to 4,859 million yen (increased 1,114 million yen compared to the same period of the previous fiscal year). This was attributable to loss before income taxes of 81 million yen, a decrease in trade payables of 901 million yen, income taxes paid in the amount of 674 million yen and other factors for decrease, being offset by decreases in trade receivables of 4,301 million yen, depreciation of 2,732 million yen, an increase in advances received of 1,831 million yen, and other factors for increase.
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Cash Flows from Investing Activities
Net cash used in investing activities amounted to 2,631 million yen (increased 45 million yen compared to the same period of the previous fiscal year). This was attributable mainly to purchase of property, plant and equipment and intangible assets of 2,332 million yen in total.
Cash Flows from Financing Activities
Net cash used in financing activities amounted to 3,174 million yen (increased 355 million yen compared to the same period of the previous fiscal year). This was attributable mainly to a net decrease in short-term borrowings of 2,050 million yen and dividends paid of 803 million yen.
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Explanation of Forecast for Consolidated Results of Operations and Other Forward- Looking Statements
The full-year forecast for the results of operations for fiscal 2025 remains unchanged from the forecast announced on April 26, 2024.
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2. Consolidated Interim Financial Statements
(1) Consolidated Interim Balance Sheet
[Unit: million yen] | ||
As of March 31, 2024 As of September 30, 2024 | ||
Assets | ||
Current assets | ||
Cash and deposits | 13,218 | 12,330 |
Notes and accounts receivable - trade, and contract assets | 12,653 | 8,072 |
Electronically recorded monetary claims - operating | 80 | 75 |
Securities | 7 | 8 |
Merchandise and finished goods | 827 | 768 |
Work in process | 245 | 857 |
Raw materials and supplies | 106 | 91 |
Other | 2,266 | 2,250 |
Allowance for doubtful accounts | (3) | (2) |
Total current assets | 29,403 | 24,452 |
Non-current assets | ||
Property, plant and equipment | 12,638 | 12,386 |
Intangible assets | ||
Goodwill | 124 | 468 |
Software | 11,110 | 11,278 |
Other | 2,895 | 2,328 |
Total intangible assets | 14,130 | 14,074 |
Investments and other assets | ||
Investment securities | 12,925 | 13,335 |
Other | 6,402 | 6,462 |
Allowance for doubtful accounts | (98) | (99) |
Total investments and other assets | 19,230 | 19,698 |
Total non-current assets | 45,999 | 46,159 |
Total assets | 75,402 | 70,611 |
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[Unit: million yen] | ||
As of March 31, 2024 As of September 30, 2024 | ||
Liabilities | ||
Current liabilities | ||
Accounts payable - trade | 2,958 | 2,080 |
Short-term borrowings | 3,460 | 1,110 |
Income taxes payable | 723 | 227 |
Advances received | 7,409 | 9,325 |
Provision for bonuses for directors (and other officers) | 84 | 25 |
Asset retirement obligations | 44 | － |
Other | 7,714 | 6,017 |
Total current liabilities | 22,395 | 18,785 |
Non-current liabilities | ||
Long-term borrowings | 1,166 | 992 |
Provision for retirement benefits for directors (and other officers) | 104 | 104 |
Provision for share awards for directors (and other officers) | 53 | 48 |
Retirement benefit liability | 246 | 249 |
Asset retirement obligations | 62 | 62 |
Other | 2,051 | 1,852 |
Total non-current liabilities | 3,685 | 3,310 |
Total liabilities | 26,081 | 22,096 |
Net assets | ||
Shareholders' equity | ||
Share capital | 6,557 | 6,557 |
Capital surplus | 12,447 | 12,585 |
Retained earnings | 28,018 | 27,096 |
Treasury shares | (4,806) | (4,801) |
Total shareholders' equity | 42,217 | 41,438 |
Accumulated other comprehensive income | ||
Valuation difference on available-for-sale securities | 6,099 | 6,190 |
Foreign currency translation adjustment | 195 | 226 |
Remeasurements of defined benefit plans | 708 | 655 |
Total accumulated other comprehensive income | 7,003 | 7,071 |
Share acquisition rights | 0 | － |
Non-controlling interests | 99 | 5 |
Total net assets | 49,321 | 48,515 |
Total liabilities and net assets | 75,402 | 70,611 |
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Consolidated Interim Statement of Income
and Consolidated Interim Statement of Comprehensive Income Consolidated Interim Statement of Income [cumulative]
[Unit: million yen] | ||
Six months ended | Six months ended | |
September 30, 2023 | September 30, 2024 | |
Net sales | 27,153 | 28,712 |
Cost of sales | 17,532 | 17,646 |
Gross profit | 9,621 | 11,066 |
Selling, general and administrative expenses | ||
Personnel expenses | 6,410 | 6,549 |
Provision for bonuses for directors (and other officers) | 25 | 23 |
Retirement benefit expenses | 155 | 154 |
Provision of allowance for doubtful accounts | 0 | 0 |
Other | 4,611 | 4,613 |
Total selling, general and administrative expenses | 11,202 | 11,341 |
Operating loss | (1,581) | (275) |
Non-operating income | ||
Interest income | 2 | 7 |
Dividend income | 64 | 169 |
Other | 100 | 85 |
Total non-operating income | 166 | 262 |
Non-operating expenses | ||
Interest expenses | 9 | 8 |
Share of loss of entities accounted for using equity method | － | 105 |
Foreign exchange losses | 163 | 209 |
Other | 38 | 5 |
Total non-operating expenses | 211 | 328 |
Ordinary loss | (1,626) | (341) |
Extraordinary income | ||
Gain on sale of non-current assets | － | 0 |
Gain on sale of shares of subsidiaries | － | 219 |
Other | － | 57 |
Total extraordinary income | － | 277 |
Extraordinary losses | ||
Loss on sale and retirement of non-current assets | 5 | 16 |
Loss on valuation of investment securities | 12 | － |
Total extraordinary losses | 17 | 16 |
Loss before income taxes | (1,644) | (81) |
Income taxes - current | 162 | 220 |
Income taxes - deferred | (545) | (183) |
Total income taxes | (382) | 37 |
Loss | (1,261) | (118) |
Loss attributable to non-controlling interests | (39) | (2) |
Loss attributable to owners of parent | (1,221) | (116) |
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Consolidated Interim Statement of Comprehensive Income [cumulative]
[Unit: million yen] | ||
Six months ended | Six months ended | |
September 30, 2023 | September 30, 2024 | |
Loss | (1,261) | (118) |
Other comprehensive income | ||
Valuation difference on available-for-sale securities | 3,775 | 91 |
Foreign currency translation adjustment | (36) | 30 |
Remeasurements of defined benefit plans, net of tax | (39) | (52) |
Total other comprehensive income | 3,700 | 68 |
Comprehensive income | 2,438 | (50) |
Comprehensive income attributable to | ||
Comprehensive income attributable to owners of parent | 2,478 | (48) |
Comprehensive income attributable to non-controlling interests | (39) | (2) |
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(3) Consolidated Interim Statement of Cash Flows
[Unit: million yen] | ||
Six months ended | Six months ended | |
September 30, 2023 | September 30, 2024 | |
Cash flows from operating activities | ||
Loss before income taxes | (1,644) | (81) |
Depreciation | 2,651 | 2,732 |
Amortization of goodwill | 64 | 55 |
Decrease (increase) in retirement benefit asset | (236) | (209) |
Increase (decrease) in retirement benefit liability | 1 | 3 |
Loss (gain) on valuation of investment securities | 12 | － |
Interest and dividend income | (66) | (176) |
Interest expenses | 9 | 8 |
Share of loss (profit) of entities accounted for using equity method | － | 105 |
Loss (gain) on sale and retirement of non-current assets | 5 | 16 |
Loss (gain) on sale of shares of subsidiaries | － | (219) |
Decrease (increase) in trade receivables | 3,708 | 4,301 |
Decrease (increase) in inventories | (248) | (548) |
Increase (decrease) in trade payables | (989) | (901) |
Increase (decrease) in accrued expenses | (129) | (262) |
Increase (decrease) in advances received | 1,235 | 1,831 |
Increase (decrease) in accrued consumption taxes | (229) | (374) |
Other, net | (230) | (917) |
Subtotal | 3,913 | 5,365 |
Interest and dividends received | 53 | 176 |
Interest paid | (9) | (8) |
Income taxes paid | (213) | (674) |
Net cash provided by (used in) operating activities | 3,744 | 4,859 |
Cash flows from investing activities | ||
Purchase of property, plant and equipment and intangible assets | (2,232) | (2,332) |
Purchase of investment securities | (265) | (130) |
Purchase of shares of subsidiaries resulting in change in | － | (405) |
scope of consolidation | ||
Proceeds from sale of shares of subsidiaries resulting in | － | 157 |
change in scope of consolidation | ||
Other, net | (88) | 79 |
Net cash provided by (used in) investing activities | (2,585) | (2,631) |
Cash flows from financing activities | ||
Net increase (decrease) in short-term borrowings | (1,766) | (2,050) |
Repayments of long-term borrowings | (204) | (204) |
Repayments of lease liabilities | (123) | (116) |
Dividends paid | (723) | (803) |
Other, net | (0) | (0) |
Net cash provided by (used in) financing activities | (2,819) | (3,174) |
Effect of exchange rate change on cash and cash equivalents | 95 | 58 |
Net increase (decrease) in cash and cash equivalents | (1,565) | (888) |
Cash and cash equivalents at beginning of period | 13,965 | 13,213 |
Cash and cash equivalents at end of period | 12,400 | 12,325 |
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Notes to Interim Consolidated Financial Statements Notes on Changes in Accounting Policies (Application of Accounting Standard for Income Taxes, etc.)
The "Accounting Standard for Current Income Taxes" (ASBJ Statement No. 27, October 28, 2022) and related guidance have been applied from the beginning of the first six months of fiscal 2025.
Previously, income taxes, inhabitant taxes and business taxes, etc. (hereinafter "income taxes, etc.") were recorded in profit or loss at the amount calculated in accordance with laws and regulations. Under the new standard, income taxes, etc. on income are allocated to profit or loss, shareholders' equity and other comprehensive income according to the transactions that gave rise to them. Regarding income taxes, etc. recorded in accumulated other comprehensive income, the corresponding tax amount is recorded in profit or loss at the point when the transactions that gave rise to these taxes are recorded in profit or loss. In addition, for temporary differences specific to consolidated financial statements arising from changes in a parent's ownership interest, where deferred tax assets or deferred tax liabilities were previously recorded with capital surplus as the corresponding account, when such temporary differences are reversed due to the sale of investments in subsidiaries, etc., the reversal of deferred tax assets or deferred tax liabilities, which was previously recorded in income taxes - deferred, is now recorded with capital surplus as the corresponding account.
The impact of this change on the interim consolidated financial statements for the first six months of fiscal 2025 is immaterial.
Notes in the Event of Material Change in the Amount of Shareholders' Equity Not applicable.
Notes on the Going Concern Assumption
Not applicable.
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3. Supplementary Information
Sales Turnover based on Business Categories under the Medium- to Long-Term Business Plan ZGP25
Six months | Six months | Amount of | Rate of | ||
ended | ended | ||||
Business | increase | increase | |||
September 30, | September 30, | Main products | |||
(decrease) | (decrease) | ||||
category | |||||
2023 | 2024 | ||||
million yen | million yen | million yen | % | ||
(for corporate customers and consumers) | |||||
Product | 7,315 | 7,420 | 105 | 1.4 | Printed residential maps, BLUE MAPS, |
business | GIS Package products, Residential map data | ||||
Special-purpose maps | |||||
Public | (for central government ministries/agencies | ||||
and local governments) | |||||
Solution | 2,903 | 2,936 | 32 | 1.1 | |
Printed residential maps, BLUE MAPS, | |||||
business | |||||
Residential map databases | |||||
Marketing | Provision of Marketing Solution, | ||||
Solution | 3,165 | 3,204 | 39 | 1.2 | |
General commercial printing | |||||
business | |||||
Services for smartphones, | |||||
IoT | 6,382 | 6,806 | 424 | 6.6 | Map data for internet services, |
business | Provision of location-based services and solutions, | ||||
Products of map design brands | |||||
Automotive | 7,386 | 8,344 | 957 | 13.0 | Data contents for in-car navigation systems, |
business | High-precision 3D data for AD/ADAS | ||||
Total | 27,153 | 28,712 | 1,559 | 5.7 |
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