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 Quarter of Fiscal 2025 [Japanese GAAP] [Consolidated]
July 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] | Executive Officer and Head of Corporate | [Name] Yumiko Toshima TEL +81-93-882-9050 |
Management Division |
Scheduled date of commencement of dividend payments: | － |
Preparation of supplementary explanatory materials on quarterly results: | Yes |
Holding of briefing session on quarterly results: | No |
(Amounts are rounded down to the nearest million yen)
1. Consolidated Results of Operations in the First Quarter of Fiscal 2025
ZENRIN's the first quarter of fiscal 2025 is the period from April 1, 2024 to June 30, 2024.
(1) Consolidated Business Performance [cumulative]
[%figures represent the increase (decrease) compared to the same period of the previous fiscal year)]
Net sales | Operating income | Ordinary income | Profit attributable to | ||||||
owners of parent | |||||||||
million yen | % | million yen | % | million yen | % | million yen | % | ||
The first quarter of fiscal 2025 | 14,130 | 10.4 | (274) | － | (255) | － | 9 | － | |
The first quarter of fiscal 2024 | 12,793 | 4.4 | (1,344) | － | (1,378) | － | (989) | － |
[Note] Comprehensive income | The first quarter of fiscal 2025: 1,320 million yen [ －%] | ||
The first quarter of fiscal 2024: 48 million yen [ －%] | |||
Earnings per share | Diluted earnings per | ||
share | |||
yen | yen | ||
The first quarter of fiscal 2025 | 0.19 | － | |
The first quarter of fiscal 2024 | (18.55) | － |
(2) Consolidated Financial Position
Total assets | Net assets | Ratio of equity to total assets | ||||
million yen | million yen | % | ||||
The first quarter of fiscal 2025 | 73,765 | 49,884 | 67.6 | |||
Fiscal 2024 | 75,402 | 49,321 | 65.3 | |||
[Reference] Equity | The first quarter of fiscal 2025: 49,876 million yen | Fiscal 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 | － | ||||
Fiscal 2025 [forecast] | 15.00 | － | 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.
[% figures for the fiscal year represent the increase (decrease) compared to the previous fiscal 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 Quarterly Results
(1) Explanation of Business Performance
During the first quarter of fiscal 2025 (from April 1, 2024 to June 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, the continued depreciation of the yen 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.
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 changes in the composition of sales in the first quarter of fiscal 2025.
As a result, the ZENRIN Group in the first quarter of fiscal 2025 reported net sales of 14,130 million yen (an increase of 1,336 million yen, or up 10.4% compared to the same period of the previous fiscal year), operating loss of 274 million yen (improvement of 1,069 million yen compared to the same period of the previous fiscal year), ordinary loss of 255 million yen (improvement of 1,123 million yen compared to the same period of the previous fiscal year), and profit attributable to owners of parent of 9 million yen (improvement of 999 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 in the fourth quarter.
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 first quarter of fiscal 2025 amounted to 73,765 million yen (decreased 1,637 million yen, or down 2.2%, compared to the end of the previous fiscal year). While investment securities increased due to market valuation, notes and accounts receivable - trade, and contract assets decreased due to seasonal fluctuations and other factors.
Liabilities amounted to 23,880 million yen (decreased 2,200 million yen, or down 8.4%, 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 49,884 million yen (increased 563 million yen, or up 1.1%, compared to the end of the previous fiscal year). While retained earnings decreased due to dividends of surplus and other factors, valuation difference on available-for-sale securities increased as a result of market valuation of investment securities
As a result, the ratio of equity to total assets at the end of the first quarter of fiscal 2025 was 67.6% (up 2.3 points compared to at the end of the previous fiscal year).
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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. Quarterly Consolidated Financial Statements
(1) Quarterly Consolidated Balance Sheet
[Unit: million yen] | ||
Fiscal 2024 | The first quarter of | |
fiscal 2025 | ||
As of March 31, 2024 | As of June 30, 2024 | |
Assets | ||
Current assets | ||
Cash and deposits | 13,218 | 13,981 |
Notes and accounts receivable - trade, and contract assets | 12,653 | 7,489 |
Electronically recorded monetary claims - operating | 80 | 70 |
Securities | 7 | 7 |
Merchandise and finished goods | 827 | 930 |
Work in process | 245 | 524 |
Raw materials and supplies | 106 | 87 |
Other | 2,266 | 2,433 |
Allowance for doubtful accounts | (3) | (2) |
Total current assets | 29,403 | 25,522 |
Non-current assets | ||
Property, plant and equipment | 12,638 | 12,559 |
Intangible assets | ||
Goodwill | 124 | 496 |
Software | 11,110 | 11,891 |
Other | 2,895 | 1,825 |
Total intangible assets | 14,130 | 14,214 |
Investments and other assets | ||
Investment securities | 12,925 | 15,078 |
Other | 6,402 | 6,490 |
Allowance for doubtful accounts | (98) | (99) |
Total investments and other assets | 19,230 | 21,469 |
Total non-current assets | 45,999 | 48,243 |
Total assets | 75,402 | 73,765 |
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[Unit: million yen] | |||
Fiscal 2024 | The first quarter of | ||
fiscal 2025 | |||
As of March 31, 2024 | As of June 30, 2024 | ||
Liabilities | |||
Current liabilities | |||
Accounts payable - trade | 2,958 | 1,773 | |
Short-term borrowings | 3,460 | 909 | |
Income taxes payable | 723 | 128 | |
Advances received | 7,409 | 9,473 | |
Provision for bonuses for directors (and other officers) | 84 | 18 | |
Asset retirement obligations | 44 | 40 | |
Other | 7,714 | 7,564 | |
Total current liabilities | 22,395 | 19,909 | |
Non-current liabilities | |||
Long-term borrowings | 1,166 | 1,094 | |
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 | 251 | |
Asset retirement obligations | 62 | 62 | |
Other | 2,051 | 2,409 | |
Total non-current liabilities | 3,685 | 3,970 | |
Total liabilities | 26,081 | 23,880 | |
Net assets | |||
Shareholders' equity | |||
Share capital | 6,557 | 6,557 | |
Capital surplus | 12,447 | 12,585 | |
Retained earnings | 28,018 | 27,223 | |
Treasury shares | (4,806) | (4,803) | |
Total shareholders' equity | 42,217 | 41,562 | |
Accumulated other comprehensive income | |||
Valuation difference on available-for-sale securities | 6,099 | 7,436 | |
Foreign currency translation adjustment | 195 | 196 | |
Remeasurements of defined benefit plans | 708 | 681 | |
Total accumulated other comprehensive income | 7,003 | 8,314 | |
Share acquisition rights | 0 | － | |
Non-controlling interests | 99 | 7 | |
Total net assets | 49,321 | 49,884 | |
Total liabilities and net assets | 75,402 | 73,765 |
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(2) Quarterly Consolidated Statement of Income and Quarterly Consolidated Statement of Comprehensive Income
Quarterly Consolidated Statement of Income [cumulative]
[Unit: million yen] | ||||
The first quarter of | The first quarter of | |||
fiscal 2024 | fiscal 2025 | |||
From: | April 1, 2023 | From: | April 1, 2024 | |
To: | June 30, 2023 | To: | June 30, 2024 | |
Net sales | 12,793 | 14,130 | ||
Cost of sales | 8,469 | 8,617 | ||
Gross profit | 4,323 | 5,512 | ||
Selling, general and administrative expenses | ||||
Personnel expenses | 3,198 | 3,314 | ||
Provision for bonuses for directors (and other officers) | 12 | 10 | ||
Retirement benefit expenses | 77 | 77 | ||
Provision of allowance for doubtful accounts | － | 0 | ||
Other | 2,380 | 2,384 | ||
Total selling, general and administrative expenses | 5,668 | 5,786 | ||
Operating loss | (1,344) | (274) | ||
Non-operating income | ||||
Interest income | 1 | 3 | ||
Dividend income | 49 | 154 | ||
Other | 44 | 33 | ||
Total non-operating income | 95 | 191 | ||
Non-operating expenses | ||||
Interest expenses | 4 | 4 | ||
Share of loss of entities accounted for using equity method | － | 56 | ||
Foreign exchange losses | 94 | 108 | ||
Taxes and dues | 28 | － | ||
Other | 2 | 2 | ||
Total non-operating expenses | 130 | 173 | ||
Ordinary loss | (1,378) | (255) | ||
Extraordinary income | ||||
Gain on sale of non-current assets | － | 0 | ||
Gain on sale of shares of subsidiaries | － | 219 | ||
Other | － | 2 | ||
Total extraordinary income | － | 221 | ||
Extraordinary losses | ||||
Loss on sale and retirement of non-current assets | 4 | 4 | ||
Loss on valuation of investment securities | 7 | － | ||
Total extraordinary losses | 12 | 4 | ||
Loss before income taxes | (1,390) | (37) | ||
Income taxes - current | 95 | 171 | ||
Income taxes - deferred | (472) | (219) | ||
Total income taxes | (376) | (47) | ||
Profit (loss) | (1,013) | 9 | ||
Loss attributable to non-controlling interests | (23) | － | ||
Profit (loss) attributable to owners of parent | (989) | 9 |
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Quarterly Consolidated Statement of Comprehensive Income [cumulative]
[Unit: million yen]
The first quarter of | The first quarter of | |||
fiscal 2024 | fiscal 2025 | |||
From: | April 1, 2023 | From: | April 1, 2024 | |
To: | June 30, 2023 | To: | June 30, 2024 | |
Profit (loss) | (1,013) | 9 | ||
Other comprehensive income | ||||
Valuation difference on available-for-sale securities | 1,083 | 1,337 | ||
Foreign currency translation adjustment | (1) | 0 | ||
Remeasurements of defined benefit plans, net of tax | (19) | (26) | ||
Total other comprehensive income | 1,062 | 1,310 | ||
Comprehensive income | 48 | 1,320 | ||
Comprehensive income attributable to | ||||
Comprehensive income attributable to owners of parent | 72 | 1,320 | ||
Comprehensive income attributable to non-controlling interests | (23) | － |
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Notes to Quarterly 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 quarter 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 quarterly consolidated financial statements for the first quarter of fiscal 2025 is immaterial.
Notes on Segment Information, etc.
As the ZENRIN Group has a single segment "Map and Location Data Services Business", segment information is omitted.
Notes in the Event of Material Change in the Amount of Shareholders' Equity Not applicable.
Notes on the Going Concern Assumption
Not applicable.
Notes on Quarterly Consolidated Statement of Cash Flows
A quarterly consolidated statement of cash flows for the first quarter of fiscal 2025 has not been prepared. Depreciation (including amortization of intangible assets other than goodwill) and amortization of goodwill for the first quarter of the consolidated fiscal year are as follows:
First quarter of fiscal 2024 | First quarter of fiscal 2025 | |
From: April 1, 2023 | From: April 1, 2024 | |
To: June 30, 2023 | To: June 30, 2024 | |
Depreciation | 1,323 million yen | 1,357 million yen |
Amortization of goodwill | 32 million yen | 27 million yen |
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3. Supplementary Information
Sales Turnover based on Business Categories under the Medium- to Long-Term Business Plan ZGP25
The first quarter | The first quarter | Amount of | Rate of | ||
Business | of fiscal 2024 | of fiscal 2025 | increase | increase | Main products |
(decrease) | (decrease) | ||||
category | |||||
million yen | million yen | million yen | % | ||
(for corporate customers and consumers) | |||||
Product | 3,388 | 3,481 | 92 | 2.7 | 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 | 1,281 | 1,268 | (13) | (1.0) | |
Printed residential maps, BLUE MAPS, | |||||
business | |||||
Residential map databases | |||||
Marketing | Provision of Marketing Solution, | ||||
Solution | 1,629 | 1,650 | 20 | 1.2 | |
General commercial printing | |||||
business | |||||
Services for smartphones, | |||||
IoT | 3,092 | 3,388 | 296 | 9.6 | Map data for internet services, |
business | Provision of location-based services and solutions, | ||||
Products of map design brands | |||||
Automotive | 3,400 | 4,342 | 941 | 27.7 | Data contents for in-car navigation systems, |
business | High-precision 3D data for AD/ADAS | ||||
Total | 12,793 | 14,130 | 1,336 | 10.4 | |
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