Financial Results
For the six months ended September 30, 2023
November 13, 2023
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Highlights
- Overall Performance
Mainly due to the Electricity Business recovery, recurring profits and operating profits, excluding onetime gains and losses, rose by 46% and 92%, respectively.
Quarterly profit attributable to the parent company's owners mainly increased due to foreign exchange gains.
- Insights through Segments
The Electricity Business continues to perform well. Significant increase in profits, rise in the number of acquisitions, and a decrease in the churn rate.
Other businesses are also progressing mostly as planned from the beginning of the period.
- Shareholder Return
- Decided on dividend increase. Increased the initial forecast for the second quarter dividend by 2 yen, and the full-year dividend forecast by 6 yen.
- Resolved share repurchase for 5 billion yen (0.78% of issued shares).
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Performance
(Billions JPY) | ||||||||
FY2022 | FY2023 | FY2024 | YoY | |||||
H1 | H1 | H1 | ||||||
Revenue | 271.3 | 310.0 | 296.4 | (4%) | ||||
Operating Profit | 49.0 | 46.1 | 48.4 | +5% | ||||
Quarterly Net Income | 40.2 | 59.8 | Record- | 61.7 | +3% | |||
(Quarterly net income attributable | ||||||||
high | ||||||||
to owners of parent) | ||||||||
Recurring Profit | 66.7 | 52.21 | Record- | 77.6 | +48% | |||
high | ||||||||
Number of In-House | 595 | 605 | 612 | +1% | ||||
Products Acquired | ||||||||
(Thousand Units) | ||||||||
(Reference) Subsidiary acquisition costs | (19.3) | (27.1) | (29.1) | +7% | ||||
excluding one-time gains and losses | ||||||||
(Reference) Operating profit excluding | 44.5 | 25.1 | 48.4 | +92% | ||||
one-time gains and losses | ||||||||
- One-timegains and losses mainly indicate gains and losses on acquisition of or loss of control of subsidiaries, gains and losses on business transfers, gains and losses on sale of fixed assets and impairment losses.
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Significant Profit Increase Mainly in Electricity Business
(Billions JPY)
- Recurring Profit
YoY+48%、+25.3billion yen
- Operating Profit
YoY+5%、+2.3 billion yen |
- Operating profit excluding one-time gains and losses
YoY+92%、+23.3 billion yen |
66.7
52.2
77.6
Excluding electricity business
49.0 | 48.4 |
46.1 | |
Excluding | |
electricity | |
business |
484. | |||||
44.5 | |||||
Excluding | |||||
Excluding | |||||
electricity | |||||
electricity | |||||
251. | business | ||||
business | |||||
Electricity
business
22/3 23/3 24/3
FY2022上期 FY2023上期 FY2024上期
H1 H1 H1
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Electricity | ||||||
business | ||||||
22/3 | 24/3 | |||||
2Q | 2Q | 2Q | ||||
FY2022 | FY2023 | FY2024 | ||||
H1 | 1H | H1 |
Electricity | ||||
Electricity | ||||
business | ||||
business | ||||
FY2022 | FY2023 | FY2024 | ||
H1 | H1 | H1 | 3 | |
Electricity Business : Major indicators
■ JEPX quarterly average of spot market | ■ Churn rate Decrease |
system price |
(yen/kWh) | 25 | |
23 | 23 | |
16 | 19 | |
15 | ||
12
7 | 8 | 9 |
22/3 | 22/3 | 22/3 | 22/3 | 23/3 | 23/3 | 23/3 | 23/3 | 24/3 | 24/3 | ||||||
Q1 | Q2 | Q3 | Q4 | Q1 | Q2 | Q3 | Q4 | Q1 | Q2 |
- Operating Profit
Significant H1 YoY profit increase
22/3 | 22/3 | 23/3 | 23/3 | 24/3 |
H1 | H2 | H1 | H2 | H1 |
22/3 | 22/3 | 22/3 | 22/3 | 23/3 | 23/3 | 23/3 | 23/3 | 24/3 | 24/3 |
Q1 | Q2 | Q3 | Q4 | Q1 | Q2 | Q3 | Q4 | Q1 | Q2 |
- Number of Acquisitions
H1 YoY +13% | ||||
22/3 | 22/3 | 23/3 | 23/3 | 24/3 |
H1 | H2 | H1 | H2 | H1 |
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Financial Results by Segment
(Billions JPY)
Revenue decreased but profits increased
Revenue and profits
increased
Revenue and profits
decreased
Corporate Service
FY2022 | FY2023 | FY2024 | |||||
H1 | H1 | H1 | |||||
Revenue | 128.3 | 151.2 | 132.7 | ||||
a | |||||||
Recurring | 31.1 | 17.1 | 36.1 | ||||
Profit | |||||||
b | |||||||
Operating | 22.3 | 5.8 | 21.6 | ||||
Profit | |||||||
b | |||||||
Individual Customer
Service
FY2022 | FY2023 | FY2024 | |
H1 | H1 | H1 | |
70.5 | 97.3 | 111.6 | ||
a, c | ||||
23.4 | 23.5 | 34.1 | ||
b, c | ||||
17.1 | 14.6 | 21.5 | ||
b | ||||
Commission-based
Sales
FY2022 | FY2023 | FY2024 | |||
H1 | H1 | H1 | |||
73.3 | 62.7 | 53.4 | |||
12.1 | 11.5 | 7.3 | |||
10.7 | 27.2 | 7.1 | |||
d | |||||
Main reasons for change
- decline in electricity transaction prices, (b) application of the electricity new plan,
- acquisition of the Electricity Business, (d) off-balancing of insurance sales agency business.
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Outlook for main in-house products
Operating profit year-on-year change
Unchanged | ||||||
FY2024(E) | FY2025(E) | |||||
Internet connection | Corporate Service | Profit | crease | Profit increase | ||
(Expe | bottom | |||||
line | in | half) | ||||
Corporate Service/ | ||||||
Electricity | Individual Customer | Large | increase | Profit increase | ||
Service | ||||||
Industry-specific | Corporate Service | Profit | crease | Profit increase | ||
IT Solutions | ||||||
Insurance | Individual Customer | Profit | crease | Profit increase | ||
Service | ||||||
Water delivery | Individual Customer | Profit | crease | Profit increase | ||
Service | ||||||
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Non-Operating Profit
Foreign exchange gains: current H1 24.4 billion yen, previous H1 19.7 billion yen.
(Billions JPY)
FY2022 | FY2023 | FY2024 | |||||
H1 | H1 | H1 | |||||
Operating Profit | 49.0 | 46.1 | 48.4 | ||||
Financial revenue + Financial expenses | 3.0 | 26.4 | 32.0 | ||||
Share of loss (profit) of entities accounted | 8.4 | 9.6 | 5.5 | ||||
for using equity method | |||||||
Other non-operating expenses (income) | 0.2 | 0.0 | 1.1 | ||||
Quarterly profit (loss) before | 60.8 | 82.2 | Record- | 87.2 | |||
income taxes | high | ||||||
Corporate income tax expenses | (17.5) | (22.3) | (24.6) | ||||
Non-controlling interests | (2.9) | (0.1) | (0.7) | ||||
Quarterly net income attributable | 40.2 | 59.8 | Record- | 61.7 | |||
to owners of parent | high | ||||||
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Steady Performance
(Billions JPY)
FY2024 H1 | FY2024(E) | ||
Actual Results | Forecast | Progress Rate | |
Revenue | 296.4 | 625.0 | 47% |
Operating Profit | 48.4 | 93.0 | 52% |
Quarterly net income | |||
and net income | 61.7 | 76.0 | 81% |
attributable to owners | |||
of parent | |||
Forecast for net income attributable to parent is kept unchanged in preparation
for foreign exchange fluctuations.
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Consolidated Cash Flows
(Billions JPY) | |||||
FY2022 | FY2023 | FY2024 | |||
H1 | H1 | H1 | |||
Cash Flow from | +27.2 | +2.4 | +71.6 | ||
Operating Activities | |||||
Cash Flow from | (55.8) | (33.8) | (29.5) | ||
Investing Activities | |||||
Excluding trading in | (7.1) | +18.1 | (11.0) | ||
investment securities | |||||
Free Cash Flow | (28.6) | (31.4) | +42.1 | ||
Excluding trading in | +20.1 | +20.6 | +60.6 | ||
investment securities | |||||
Cash Flow from | +0.8 | +76.7 | (3.7) | ||
Financial Activities | |||||
Main factors for the increase in operating cash flow
- Improvement in working capital due to fluctuations in electricity transaction prices, among other factors, 2) increase in operating profit excluding one-time gains and losses, 3) increase in received interest and dividends.
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Hikari Tsushin Inc. published this content on 13 November 2023 and is solely responsible for the information contained therein. Distributed by Public, unedited and unaltered, on 24 November 2023 14:32:18 UTC.