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Reference translation
Financial Results for the Year Ended March 31, 2018
May 11, 2018
Company Name: Takasago Thermal Engineering Co., Ltd. Stock Exchange Listing: Tokyo 1st section
Code Number: 1969 Company URL: https://www.tte-net.com/
Representative: Atsushi Ouchi, Chairman, President and Representative Director
Contact: Yoshiyuki Hara, Director and Managing Executive Officer, Group General Manager, Corporate Group
Phone: (03) 6369-8215
Scheduled date of ordinary general meeting of shareholders:
June 26, 2018
Scheduled date to commence
dividend payment:
June 27, 2018
Scheduled date to submit the Securities Report:
June 26, 2018
(Fraction less than one million yen has been omitted)
1. Consolidated Results for the Year Ended March 31, 2018 (April 1, 2017 to March 31, 2018) (1) Consolidated Results of Operations
(% indicates changes from the previous term)
Net sales Operating income Ordinary income Net income attributable to
owners of parent
(Millions of yen) (%) (Millions of yen) (%) (Millions of yen) (%) (Millions of yen) (%)
Year ended
March 31, 2018 289,933 11.4 16,362 32.1 17,461 30.0 11,804 36.2
Year ended
March 31, 2017 260,204 3.5 12,383 33.3 13,427 26.7 8,665 30.3
(Note) Comprehensive income: Year ended March 31, 2018: ¥14,398 million year on year: 54.2% Year ended March 31, 2017: ¥9,339 million year on year: -%
Basic earnings per share Diluted earnings per share Rate of return on
equity
Ratio of ordinary
income to total assets
Ratio of operating
income to net sales
(Yen) (Yen) (%) (%) (%)
Year ended
March 31, 2018 160.41 159.94 10.3 7.0 5.6
Year ended
March 31, 2017 117.83 117.49 8.2 5.8 4.8
(Reference) Equity in earnings (losses) of affiliated companies: Year ended March 31, 2018: ¥189 million
Year ended March 31, 2017: ¥249 million
(2) Consolidated Financial Positions
Total assets Net assets Equity ratio Net assets per share
(Millions of yen) (Millions of yen) (%) (Yen)
Year ended
March 31, 2018 265,326 124,484 45.4 1,637.63
Year ended
March 31, 2017 234,716 111,574 46.6 1,487.29
(Reference) Shareholders’ equity:
Year ended March 31, 2018: ¥120,546 million Year ended March 31, 2017: ¥109,382 million
(3) Consolidated Cash Flows
Cash flows from operating
activities
Cash flows from investing
activities
Cash flows from financing
activities
Cash and cash equivalents at the
end of the period
(Millions of yen) (Millions of yen) (Millions of yen) (Millions of yen)
Year ended
March 31, 2018 6,170 (5,685) 7,107 54,558
Year ended
March 31, 2017 23,528 2,329 (6,079) 46,556
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2. Dividends
Cash dividends per share
Total cash
dividends (annual)
Payout ratio
(consolidated)
First
quarter
end
Second
quarter
end
Third
quarter
end
Year-end Annual
Ratio of dividends
to net assets
(consolidated)
(Yen) (Yen) (Yen) (Yen) (Yen) (Millions of yen) (%) (%) Year ended
March 31, 2017 - 14.00 - 22.00 36.00 2,657 30.6 2.5
Year ended
March 31, 2018 - 15.00 - 35.00 50.00 3,693 31.2 3.2
Year ending
March 31, 2019
(estimated)
- 25.00 - 25.00 50.00 31.2
(Note) Breakdown of the ¥22 year-end dividends for the year ended March 31, 2017: Ordinary dividends of ¥16, special dividends of ¥6 3. Forecasts for the Consolidated Financial Results for the Year Ending March 31, 2019 (April 1, 2018 to March 31, 2019)
(% indicates changes from the previous corresponding term)
Net sales Operating income Ordinary income Net income attributable to
owners of parent Basic earnings
per share
(Millions of yen) (%) (Millions of yen) (%) (Millions of yen) (%) (Millions of yen) (%) (Yen)
End of second
quarter 140,000 7.9 6,100 (11.4) 6,500 (11.5) 4,200 (7.0) 57.07
Full year 300,000 3.5 16,500 0.8 17,500 0.2 11,800 (0.0) 160.34
(Reference) Orders received (estimated): (End of second quarter) ¥155,000 million
(Full year) ¥280,000 million
*Notes
(1) Changes in Important Subsidiary (Change in Specific Subsidiary Accompanying Change in Scope of Consolidation) During the Term: None
(2) Changes in Accounting Policies, Changes in Accounting Estimates and Restatements
(i) Changes in accounting policies in accordance with the revision of accounting standard, etc.: None (ii) Changes in accounting policies other than (i) above: None
(iii) Changes in accounting estimates: None (iv) Restatements: None
(3) Number of Issued Shares (Common Stock)
(i) Number of issued shares at fiscal year end (including treasury stock)
March 31, 2018: 82,765,768 shares
March 31, 2017: 82,765,768 shares
(ii) Number of treasury shares at fiscal year end
March 31, 2018: 9,155,382 shares
March 31, 2017: 9,220,817 shares
(iii) Average number of shares during the period
Year ended March 31, 2018: 73,594,611 shares
Year ended March 31, 2017: 73,539,820 shares
(References) Summary of Non-consolidated Financial Results 1. Non-consolidated Financial Results for the Year Ended March 31, 2018 (April 1, 2017 to March 31, 2018) (1) Non-consolidated Results of Operations
(% indicates changes from the previous term)
Net sales Operating income Ordinary income Net income
(Millions of yen) (%) (Millions of yen) (%) (Millions of yen) (%) (Millions of yen) (%) Year ended
March 31, 2018 217,474 8.2 13,570 17.7 15,023 18.3 10,306 19.8
Year ended
March 31, 2017 200,945 0.9 11,527 41.8 12,703 38.0 8,606 48.3
Basic earnings per share Diluted earnings per share
(Yen) (Yen)
Year ended
March 31, 2018 139.53 139.14
Year ended
March 31, 2017 116.60 116.26
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(2) Non-consolidated Financial Positions
Total assets Net assets Equity ratio Net assets per share
(Millions of yen) (Millions of yen) (%) (Yen) Year ended
March 31, 2018 229,223 108,806 47.4 1,469.76
Year ended
March 31, 2017 205,496 99,565 48.3 1,345.92
(Reference) Shareholders’ equity: Year ended March 31, 2018: ¥108,578 million Year ended March 31, 2017: ¥99,347 million
2. Forecasts for the Non-consolidated Financial Results for the Year Ending March 31, 2019 (April 1, 2018 to March 31, 2019) (% indicates changes from the previous corresponding term)
Net sales Operating income Ordinary income Net income Basic earnings
per share
(Millions of yen) (%) (Millions of yen) (%) (Millions of yen) (%) (Millions of yen) (%) (Yen)
End of second
quarter 106,000 8.7 5,250 (16.1) 6,200 (13.0) 4,300 (6.9) 58.22
Full year 228,000 4.8 13,100 (3.5) 14,600 (2.8) 10,400 0.9 140.81
(Reference) Orders received (estimated): (End of second quarter) ¥120,000 million (Full year) ¥205,000 million
* These consolidated financial results are outside the scope of audit by certified public accountants or audit corporations
*Explanation concerning proper use of the forecasts for the financial results and other special instructions
Forward-looking statements, including the financial results forecasts, in this document are based on currently available information held by the Company and on certain premises considered reasonable by the Company. It is not the intention of the Company to undertake the realization of these
statements. Actual business results may differ from the forecasts, depending on various factors.
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(References)
1. Consolidated Financial Statements
(1) Consolidated Balance Sheets
(Millions of yen)
Year ended March 31, 2017
(as of March 31, 2017) Year ended March 31, 2018
(as of March 31, 2018)
ASSETS:
Current assets:
Cash and time deposits 47,075 55,067
Notes receivable, accounts receivable from
completed contracts 107,392 116,665
Electronically recorded monetary claims—operating 9,559 12,190
Cost of uncompleted contracts 3,358 4,048
Deferred tax assets 1,744 1,765
Other current assets 5,261 8,246
Less allowance for doubtful accounts (210) (166)
Total current assets 174,181 197,817
Fixed assets:
Property, plant and equipment—at cost
Buildings and structures 9,568 8,431
Machinery and vehicles 961 1,677
Tools, furniture and fixtures 3,191 3,507
Land 1,942 3,787
Construction in progress 172 46
Less accumulated depreciation (8,869) (8,293)
Total property, plant and equipment 6,966 9,157
Intangible fixed assets:
Goodwill - 2,745
Other intangible assets 714 1,671
Total intangible assets 714 4,416
Investments and other assets:
Investment securities 41,376 42,017
Long-term debt 1,209 1,280
Net defined benefit asset 2,612 3,318
Deferred tax assets 451 444
Guarantee deposits paid 2,681 2,857
Insurance reserve fund 4,791 4,581
Other 1,045 651
Less allowance for doubtful accounts (1,314) (1,217)
Total investments and other assets 52,854 53,934
Total fixed assets 60,534 67,509
TOTAL ASSETS 234,716 265,326
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(Millions of yen)
Year ended March 31, 2017
(as of March 31, 2017) Year ended March 31, 2018
(as of March 31, 2018)
LIABILITIES
Current liabilities:
Notes payable, accounts payable for construction
contracts 57,096 62,068
Electronically recorded obligations - operating - 23,571
Short-term debt 5,527 6,123
Accounts payable—other 27,824 2,119
Income taxes payable 4,310 1,980
Advances received on uncompleted contracts 5,401 7,673
Deferred tax liabilities - 24
Allowance for bonuses to directors 137 137
Allowance for claim expenses 792 958
Allowance for losses on construction contracts 1,993 2,175
Other current liabilities 12,997 16,067
Total current liabilities 116,080 122,900
Non-current liabilities:
Bonds payable - 10,000
Net defined benefit liability 1,316 1,041
Allowance for accrued severance indemnities to
directors and corporate auditors 8 5
Long-term accounts payable—other 64 69
Deferred tax liabilities 5,166 6,271
Other non-current liabilities 505 554
Total non-current liabilities 7,061 17,942
TOTAL LIABILITIES 123,141 140,842
NET ASSETS
Shareholders’ equity:
Capital stock 13,134 13,134
Capital surplus 12,854 12,730
Retained earnings 80,767 89,839
Treasury stock (8,850) (8,789)
Total shareholders’ equity 97,906 106,916
Accumulated other comprehensive income:
Net unrealized holding gains on securities 11,603 13,230
Foreign currency translation adjustments (191) (360)
Remeasurements of defined benefit plans 64 760
Total accumulated other comprehensive income 11,476 13,630
Subscription rights to shares 218 228
Non-controlling interests 1,972 3,708
Total net assets 111,574 124,484
TOTAL LIABILITIES AND NET ASSETS 234,716 265,326
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(2) Consolidated Statements of Income and Comprehensive Income
Consolidated Statements of Income
(Millions of yen)
Year ended March 31, 2017
(from April 1, 2016 to March 31, 2017)
Year ended March 31, 2018
(from April 1, 2017 to March 31, 2018)
Net sales 260,204 289,933
Cost of sales 226,122 250,383
Gross profit 34,082 39,550
Selling, general and administrative expenses:
Employees’ salaries and allowances 8,540 9,507
Employees’ severance and retirement benefits 356 381
Provision for allowance for accrued severance
indemnities to directors and corporate auditors 1 1
Stationery expenses 1,474 1,762
Provision of allowance for doubtful accounts 90 (47)
Rents 2,316 2,365
Depreciation 412 357
Other 8,506 8,858
Total selling, general and administrative expenses 21,699 23,187
Operating income 12,383 16,362
Non-operating income:
Interest income 170 227
Dividends income 599 604
Insurance income 149 142
Equity in earnings of affiliates 249 189
Reversal of provision for loss on guarantees 47 -
Rent of real estate 451 483
Other 222 232
Total non-operating income 1,891 1,879
Non-operating expenses:
Interest expenses 52 163
Commission fee 21 3
Bond issuance cost - 70
Foreign currency exchange losses 181 60
Provision of allowance for doubtful accounts 294 199
Expenses on rent of real estate 223 222
Other 73 62
Total non-operating expenses 846 781
Ordinary income 13,427 17,461
Extraordinary gains:
Gain on sales of fixed assets - 327
Gain on sale of investment securities 1,026 46
Gain on step acquisitions - 152
Gain on repayment of securities to retirement benefit trust
432 -
Other 1 -
Total extraordinary gains 1,460 526
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(Millions of yen)
Year ended March 31, 2017
(from April 1, 2016 to March 31, 2017)
Year ended March 31, 2018
(from April 1, 2017 to March 31, 2018)
Extraordinary losses:
Loss on retirement of fixed assets 7 6
Impairment loss 909 -
Write-down of investment securities 310 753
Other 79 81
Total extraordinary losses 1,306 841
Income before income taxes 13,581 17,146
Income taxes-current 5,631 5,031
Income taxes-deferred (732) (41)
Total income taxes 4,898 4,989
Net income 8,683 12,157
Net income attributable to non-controlling interests 18 352
Net income attributable to owners of parent 8,665 11,804
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Consolidated Statements of Comprehensive Income
(Millions of yen)
Year ended March 31, 2017
(from April 1, 2016 to March 31, 2017)
Year ended March 31, 2018
(from April 1, 2017 to March 31, 2018)
Net income 8,683 12,157
Other comprehensive income:
Net unrealized holding gains on securities 912 1,622
Foreign currency translation adjustments (510) (163)
Remeasurements of defined benefit plans, net of tax 154 742
Share of other comprehensive income of associates
accounted for using equity method 98 40
Total other comprehensive income 655 2,241
Comprehensive income 9,339 14,398
Comprehensive income attributable to:
Comprehensive income attributable to owners of the parent
9,463 13,959
Comprehensive income (loss) attributable to non-controlling interests
(124) 439
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(3) Consolidated Statements of Cash Flows
(Millions of yen)
Year ended March 31, 2017
(from April 1, 2016 to March 31, 2017)
Year ended March 31, 2018
(from April 1, 2017 to March 31, 2018)
Cash flows from operating activities:
Income before income taxes 13,581 17,146
Depreciation and amortization 776 730
Impairment loss 909 -
Amortization of goodwill 27 101
Increase (decrease) in allowance for doubtful accounts
366 (145)
Increase (decrease) in allowance for claim expenses 106 164
Increase (decrease) in allowance for losses on
construction contracts 268 173
Increase (decrease) in provision for loss on
guarantees (47) -
Increase (decrease) in allowance for bonuses to
directors (1) 0
Increase (decrease) in provision for directors’
retirement benefits (0) (2)
Decrease (increase) in net defined benefit asset 1,218 298
Increase (decrease) in net defined benefit liability 68 (260)
Interest and dividends income (770) (832)
Interest expenses 52 163
Foreign currency exchange loss (gain) 12 (26)
Bond issuance cost - 70
Loss (gain) on sale of investment securities (1,026) (46)
Write-down of investment securities 310 753
Loss (gain) on step acquisitions - (152)
Equity in (earnings) losses of affiliates (249) (189)
Loss (gain) on sales of fixed assets 3 (327)
Loss on retirement of fixed assets 7 6
Decrease (increase) in trade receivable 5,923 (9,429)
Decrease (increase) in cost of uncompleted contracts (142) (211)
Increase (decrease) in notes and accounts
payable—trade (1,277) 5,488
Increase (decrease) in advances received on
uncompleted contracts 2,359 1,909
Increase (decrease) in accrued consumption tax 3,955 (4,028)
Decrease (increase) in consumption tax receivable (40) (2,183)
Other 244 3,384
Subtotal 26,640 12,555
Interests and dividends income 811 871
Interest paid (54) (141)
Income taxes paid (3,925) (7,114)
Income taxes refund 55 -
Net cash provided by (used in) operating activities 23,528 6,170
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(Millions of yen)
Year ended March 31, 2017
(from April 1, 2016 to March 31, 2017)
Year ended March 31, 2018
(from April 1, 2017 to March 31, 2018)
Cash flows from investing activities:
Increase in time deposits (1,699) (2,616)
Decrease in time deposits 3,129 2,672
Purchase of property, plant and equipment (718) (3,303)
Proceeds from sales of property, plant and
equipment and intangible fixed assets 6 659
Purchase of investment securities (8) (563)
Proceeds from sale of investment securities 2,413 244
Purchase of stocks of affiliates (346) (784)
Payments of guarantee deposits (219) (220)
Proceeds from collection of guarantee deposits 58 239
Purchase of shares of subsidiaries resulting in
change in scope of consolidation - (2,238)
Payments of loans receivable (576) (0)
Payments of insurance reserve fund (171) (133)
Proceeds from refund of insurance reserve fund 518 342
Other payments (112) (70)
Other proceeds 55 86
Net cash provided by (used in) investing activities 2,329 (5,685)
Cash flows from financing activities:
Net decrease in bank loans (3,785) (83)
Proceeds from long-term debt - 128
Repayments of long-term debt (36) (73)
Repayments of lease debt (78) (74)
Proceeds from issuance of bonds - 9,929
Cash dividends paid (2,176) (2,732)
Cash dividends paid to non-controlling shareholders (1) (1)
Other (0) 14
Net cash used in financing activities (6,079) 7,107
Effect of exchange rate changes on cash and cash
equivalents (269) 409
Net increase (decrease) in cash and cash equivalents 19,508 8,001
Cash and cash equivalents at beginning of year 26,342 46,556
Increase in cash and cash equivalents from newly
consolidated subsidiary 705 -
Cash and cash equivalents at end of year 46,556 54,558
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2. Non-consolidated Financial Statements
(1) Non-consolidated Balance Sheets
(Millions of yen)
Year ended March 31, 2017 (as of March 31, 2017)
Year ended March 31, 2018 (as of March 31, 2018)
ASSETS
Current assets:
Cash and time deposits 31,881 41,835
Notes receivable—trade 2,574 1,985
Electronically recorded monetary claims—operating 8,771 11,289
Accounts receivable from completed contracts 91,678 94,878
Cost of uncompleted contracts 2,294 2,454
Merchandise and finished goods - 23
Raw materials and supplies - 46
Prepaid expenses 133 179
Deferred tax assets 1,279 1,264
Accounts receivables—other 1,822 4,832
Advances paid 965 937
Other 452 217
Less allowance for doubtful accounts (105) (111)
Total current assets 141,748 159,833
Fixed assets:
Property, plant and equipment—at cost
Buildings 6,720 5,392
Accumulated depreciation (3,952) (2,920)
Buildings (net) 2,767 2,472
Structures 322 267
Accumulated depreciation (245) (199)
Structures (net) 76 67
Machinery 120 98
Accumulated depreciation (76) (65)
Machinery (net) 43 32
Tools, furniture and fixtures 1,968 2,005
Accumulated depreciation (1,091) (1,104)
Tools, furniture and fixtures (net) 876 900
Land 742 2,202
Construction in progress 172 39
Total property, plant and equipment 4,678 5,715
Intangible fixed assets
Software 357 1,218
Telephone rights 94 94
Other 2 2
Total intangible fixed assets 454 1,315
Investment and other assets
Investment securities 35,322 38,065
Stocks of affiliates 12,794 14,648
Investments in capital 2 5
Long-term debt 1,516 1,513
Bankruptcy claims and reorganization claims, etc. 355 61
Long-term prepaid expenses 105 98
Prepaid pension cost 2,464 2,165
Guarantee deposits paid 2,320 2,230
Insurance reserve fund 4,652 4,431
Other 392 356
Less allowance for doubtful accounts (1,311) (1,217)
Total investments and other assets 58,615 62,358
Total fixed assets 63,747 69,389
TOTAL ASSETS 205,496 229,223
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(Millions of yen)
Year ended March 31, 2017
(as of March 31, 2017) Year ended March 31, 2018
(as of March 31, 2018)
LIABILITIES
Current liabilities:
Notes payable—trade 10,036 10,407
Electronically recorded obligations - operating - 24,075
Accounts payable for construction contracts 38,680 41,873
Short-term debt 3,270 3,140
Lease debt 25 26
Accounts payable 27,546 1,429
Accrued expenses 3,600 4,473
Income taxes payable 3,849 1,548
Advances received on uncompleted contracts 4,558 5,996
Deposits received 6,461 8,494
Unearned revenue - 0
Allowance for bonuses to directors 70 79
Allowance for claim expenses 612 664
Allowance for losses on construction contracts 1,869 2,146
Total current liabilities 100,582 104,355
Non-current liabilities:
Bonds payable - 10,000
Long-term accounts payable—other 29 27
Lease debt 189 175
Deferred tax liabilities 5,056 5,786
Other 71 69
Total non-current liabilities 5,348 16,060
TOTAL LIABILITIES 105,930 120,416
NET ASSETS
Shareholders’ equity:
Capital stock 13,134 13,134
Capital surplus
Capital reserve 12,853 12,853
Total capital surplus 12,853 12,853
Retained earnings
Legal reserve 3,283 3,283
Other retained earnings
Dividend equalization reserve 656 656
Reserve for employees’ severance
and retirement benefits 940 940
General reserve 42,878 42,878
Retained earnings carried forward 22,812 30,385
Total retained earnings 70,571 78,144
Treasury stock (8,674) (8,615)
Total shareholders’ equity 87,885 95,517
Valuation and translation adjustments:
Net unrealized holding gains on securities 11,461 13,061
Total valuation and translation adjustments 11,461 13,061
Subscription rights to shares 218 228
Total net assets 99,565 108,806
TOTAL LIABILITIES AND ASSETS 205,496 229,223
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(2) Non-consolidated Statements of Income
(Millions of yen)
Year ended March 31, 2017
(from April 1, 2016 to March 31, 2017)
Year ended March 31, 2018
(from April 1, 2017 to March 31, 2018)
Net sales 200,945 217,474
Cost of sales 175,219 188,557
Gross profit 25,726 28,917
Selling, general and administrative expenses:
Compensation for directors and corporate
auditors 458 377
Provision for allowance for bonuses
to directors 70 79
Employees’ salaries and allowances 5,028 5,791
Share-based compensation expenses 55 51
Employees’ severance and retirement benefits 267 298
Legal welfare expenses 836 899
Welfare expenses 335 330
Repairs and maintenance expenses 98 112
Stationary expenses 1,246 1,497
Correspondence and transportation expenses 774 837
Power utilities expenses 103 101
Research study expenses 652 618
Advertising expenses 335 338
Provision of allowance for doubtful accounts 3 2
Entertainment expenses 361 374
Contribution 56 59
Rents 1,738 1,846
Depreciation 192 157
Taxes and dues 641 581
Insurance expenses 276 270
Miscellaneous expenses 665 719
Total selling, general and administrative
expenses 14,198 15,347
Operating income 11,527 13,570
Non-operating income:
Interest income 13 15
Interest on marketable securities 5 5
Dividends income 1,067 1,362
Insurance income 55 44
Insurance dividends income 146 141
Rent of real estate 451 483
Reversal of provision for loss on guarantees 47 -
Other 45 48
Total non-operating income 1,832 2,100
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(Millions of yen)
Year ended March 31, 2017
(from April 1, 2016 to March 31, 2017)
Year ended March 31, 2018
(from April 1, 2017 to March 31, 2018)
Non-operating expenses:
Interest expenses 25 59
Bond issuance cost - 70
Commission fee 21 3
Foreign currency exchange losses 28 21
Provision of allowance for doubtful accounts 294 201
Expenses on rent of real estate 223 222
Other 64 68
Total non-operating expenses 657 647
Ordinary income 12,703 15,023
Extraordinary gains:
Gain on sales of fixed assets - 305
Gain on sale of investment securities 1,026 46
Gain on repayment of securities to retirement
benefit trust 432 -
Other 1 -
Total extraordinary gains 1,460 352
Extraordinary losses:
Loss on retirement of fixed assets 4 4
Impairment loss 909 -
Write-down of investment securities 126 -
Valuation loss on stocks of affiliates 184 921
Other 0 47
Total extraordinary losses 1,224 973
Income before income taxes 12,939 14,402
Income taxes-current 5,013 4,132
Income taxes-deferred (680) (36)
Total income taxes 4,333 4,096
Net income 8,606 10,306
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3. Other
(1) Conditions of Orders Received and Sales (Consolidated)
(i) Orders received (Millions of yen; %)
Year ended March 31, 2017
(from April 1, 2016
to March 31, 2017)
Year ended March 31, 2018
(from April 1, 2017
to March 31, 2018)
Amount of
Increase
(Decrease)
Percentage of
Increase
(Decrease) Amount (%) Amount (%)
Construction
business
General-purpose systems 168,174 61.5 169,005 58.5 830 0.5
Industrial systems 97,296 35.5 112,845 39.1 15,549 16.0
Subtotal 265,471 97.0 281,851 97.6 16,380 6.2
Equipment manufacturing and sales business 7,845 2.9 6,645 2.3 (1,199) (15.3)
Other 148 0.1 149 0.1 0 0.3
Total
[overseas]
[repairs and maintenance]
273,464
[45,193]
[21,954]
100.0
[16.5]
[8.0]
288,646
[47,507]
[22,710]
100.0
[16.5]
[7.9]
15,181
[2,314]
[755]
5.6
[5.1]
[3.4]
(ii) Sales (Millions of yen; %)
Year ended March 31, 2017
(from April 1, 2016
to March 31, 2017)
Year ended March 31, 2018
(from April 1, 2017
to March 31, 2018)
Amount of
Increase
(Decrease)
Percentage of
Increase
(Decrease) Amount (%) Amount (%)
Construction
business
General-purpose systems 162,818 62.5 181,341 62.5 18,522 11.4
Industrial systems 88,664 34.1 101,373 35.0 12,709 14.3
Subtotal 251,483 96.6 282,714 97.5 31,231 12.4
Equipment manufacturing and sales business 8,572 3.3 7,068 2.4 (1,504) (17.5)
Other 148 0.1 149 0.1 0 0.3
Total
[overseas]
[repairs and maintenance]
260,204
[33,824]
[21,739]
100.0
[13.0]
[8.4]
289,933
[47,343]
[22,856]
100.0
[16.3]
[7.9]
29,728
[13,519]
[1,117]
11.4
[40.0]
[5.1]
(iii) Amount carried forward (Millions of yen; %)
Year ended March 31, 2017
(as of March 31, 2017)
Year ended March 31, 2018
(as of March 31, 2018)
Amount of
Increase
(Decrease)
Percentage of
Increase
(Decrease) Amount (%) Amount (%)
Construction
business
General-purpose systems 182,014 78.6 169,679 73.7 (12,335) (6.8)
Industrial systems 47,885 20.7 59,356 25.8 11,471 24.0
Subtotal 229,899 99.3 229,036 99.5 (863) (0.4)
Equipment manufacturing and sales business 1,605 0.7 1,182 0.5 (423) (26.4)
Other - - - - - -
Total
[overseas]
[repairs and maintenance]
231,505
[24,687]
[3,007]
100.0
[10.7]
[1.3]
230,218
[24,851]
[2,860]
100.0
[10.8]
[1.2]
(1,286)
[164]
[(146)]
(0.6)
[0.7]
[(4.9)]
(Note) Transactions made between segments with respect to orders received, sales and amounts carried forward are set off and deleted.
- 16 -
(2) Conditions of Orders Received and Sales (Non-consolidated)
(i) Orders received (Millions of yen; %)
Year ended March 31, 2017
(from April 1, 2016
to March 31, 2017)
Year ended March 31, 2018
(from April 1, 2017
to March 31, 2018)
Amount of
Increase
(Decrease)
Percentage of
Increase
(Decrease) Amount (%) Amount (%)
Construction
business
General-purpose systems 151,076 74.3 150,597 69.7 (478) (0.3)
Industrial systems 52,186 25.7 65,535 30.3 13,349 25.6
Total 203,262 100.0 216,133 100.0 12,870 6.3
(ii) Sales (Millions of yen; %)
Year ended March 31, 2017
(from April 1, 2016
to March 31, 2017)
Year ended March 31, 2018
(from April 1, 2017
to March 31, 2018)
Amount of
Increase
(Decrease)
Percentage of
Increase
(Decrease) Amount (%) Amount (%)
Construction
business
General-purpose systems 145,724 72.5 163,118 75.0 17,393 11.9
Industrial systems 55,220 27.5 54,355 25.0 (864) (1.6)
Total 200,945 100.0 217,474 100.0 16,529 8.2
(iii) Amount carried forward (Millions of yen; %)
Year ended March 31, 2017
(as of March 31, 2017)
Year ended March 31, 2018
(as of March 31, 2018)
Amount of
Increase
(Decrease)
Percentage of
Increase
(Decrease) Amount (%) Amount (%)
Construction
business
General-purpose systems 181,284 88.3 168,763 82.7 (12,520) (6.9)
Industrial systems 24,128 11.7 35,308 17.3 11,179 46.3
Total 205,412 100.0 204,071 100.0 (1,341) (0.7)
- 17 -
(3) Review of Operations (Consolidated)
(Financial results for the years ended March 31, 2014 to 2018)
(Financial forecasts for the year ending March 31, 2019)
(Fraction less than one million yen has been omitted) (Millions of yen; %)
Year
Item
Results Forecasts
Year ended
March 31, 2014
Year ended
March 31, 2015
Year ended
March 31, 2016
Year ended
March 31, 2017
Year ended
March 31, 2018
Year ending
March 31, 2019
Changes
from the
previous
term
(%)
Changes
from the
previous
term
(%)
Changes
from the
previous
term
(%)
Changes
from the
previous
term
(%)
Changes
from the
previous
term
(%)
Changes
from the
previous
term
(%)
Net sales 237,389 243,582 251,291 260,204 289,933 300,000
(4.4) 100.0 2.6 100.0 3.2 100.0 3.5 100.0 11.4 100.0 3.5 100.0
Gross profit 27,308 27,800 29,526 34,082 39,550
22.7 11.5 1.8 11.4 6.2 11.8 15.4 13.1 16.0 13.6
Selling, general and
administrative expenses 19,527 20,073 20,237 21,699 23,187
4.5 8.2 2.8 8.2 0.8 8.1 7.2 8.3 6.9 8.0
Operating income 7,780 7,727 9,289 12,383 16,362 16,500
117.9 3.3 (0.7) 3.2 20.2 3.7 33.3 4.8 32.1 5.6 0.8 5.5
Non-operating income 1,596 1,468 2,066 1,891 1,879
Non-operating expenses 268 613 753 846 781
Non-operating income
and expenses +1,328 +855 +1,313 +1,044 +1,098
Ordinary income 9,109 8,582 10,602 13,427 17,461 17,500
91.4 3.8 (5.8) 3.5 23.5 4.2 26.7 5.2 30.0 6.0 0.2 5.8
Extraordinary gains 336 586 309 1,460 526
Extraordinary losses 1,560 436 472 1,306 841
Extraordinary gains and
losses (1,224) +149 (163) +153 (314)
Income before
income taxes
7,884 8,732 10,438 13,581 17,146
67.3 3.3 10.8 3.6 19.5 4.2 30.1 5.2 26.2 5.9
Income taxes
—current 3,593 2,583 3,470 5,631 5,031
Income taxes
—deferred (5) 791 293 (732) (41)
Net income 4,296 5,356 6,674 8,683 12,157
Net income (loss)
attributable to
non-controlling
interests
284
160
24
18
352
Net income
attributable to
owners of parent
4,011 5,196 6,650 8,665 11,804 11,800
83.5 1.7 29.5 2.1 28.0 2.6 30.3 3.3 36.2 4.1 (0.0) 3.9
Orders received 264,280 255,648 265,301 273,464 288,646 280,000
4.1 (3.3) 3.8 3.1 5.6 (3.0)
Amount carried forward 192,170 204,236 218,245 231,505 230,218 210,218
16.3 6.3 6.9 6.1 (0.6) (8.7)
- 18 -
(4) Review of Operations (Non-consolidated)
(Financial results for the years ended March 31, 2014 to 2018)
(Financial forecasts for the year ending March 31, 2019)
(Fraction less than one million yen has been omitted) (Millions of yen; %)
Year
Item
Results Forecasts
Year ended
March 31, 2014
Year ended
March 31, 2015
Year ended
March 31, 2016
Year ended
March 31, 2017
Year ended
March 31, 2018
Year ending
March 31, 2019
Changes
from the
previous
term
(%)
Changes
from the
previous
term
(%)
Changes
from the
previous
term
(%)
Changes
from the
previous
term
(%)
Changes
from the
previous
term
(%)
Changes
from the
previous
term
(%)
Net sales 185,654 180,473 199,204 200,945 217,474 228,000
(5.6) 100.0 (2.8) 100.0 10.4 100.0 0.9 100.0 8.2 100.0 4.8 100.0
Gross profit 18,733 19,684 21,467 25,726 28,917
30.5 10.1 5.1 10.9 9.1 10.8 19.8 12.8 12.4 13.3
Selling, general and
administrative expenses 12,813 12,703 13,338 14,198 15,347
(1.0) 6.9 (0.9) 7.0 5.0 6.7 6.4 7.1 8.1 7.1
Operating income 5,920 6,981 8,129 11,527 13,570 13,100
316.9 3.2 17.9 3.9 16.4 4.1 41.8 5.7 17.7 6.2 (3.5) 5.7
Non-operating income 1,517 1,490 1,796 1,832 2,100
Non-operating expenses 303 562 719 657 647
Non-operating income
and expenses +1,214 +928 +1,076 +1,175 +1,453
Ordinary income 7,134 7,909 9,206 12,703 15,023 14,600
154.3 3.8 10.9 4.4 16.4 4.6 38.0 6.3 18.3 6.9 (2.8) 6.4
Extraordinary gains 308 281 293 1,460 352
Extraordinary losses 1,553 426 690 1,224 973
Extraordinary gains and
losses (1,244) (145) (397) +235 (621)
Income before
income taxes
5,889 7,764 8,808 12,939 14,402
113.2 3.2 31.8 4.3 13.5 4.4 46.9 6.4 11.3 6.6
Income taxes
—current 2,674 2,036 2,887 5,013 4,132
Income taxes
—deferred 28 835 116 (680) (36)
Net income 3,186 4,892 5,804 8,606 10,306 10,400
92.1 1.7 53.5 2.7 18.6 2.9 48.3 4.3 19.8 4.7 0.9 4.6
Orders received 200,897 208,658 214,489 203,262 216,133 205,000
4.7 3.9 2.8 (5.2) 6.3 (5.2)
Amount carried forward 159,625 187,810 203,094 205,412 204,071 181,071
10.6 17.7 8.1 1.1 (0.7) (11.3)