May 13, 2021
Summary of Consolidated Financial Results for the Fiscal Year Ended March 31, 2021 [Japanese GAAP]
Company name: | Japan System Techniques Co., Ltd. | Listing: Tokyo Stock Exchange, First Section | |
Stock code: | 4323 | URL: https://www.jast.jp | |
Representative: | Takeaki Hirabayashi, President and CEO | ||
Contact: | Hiroyuki Norimoto, General Manager of General Affairs Department, | Tel: +81-6-4560-1000 | |
Personnel & General Affairs Division | |||
Scheduled date of Annual General Meeting of Shareholders: | June 25, 2021 | ||
Scheduled date of payment of dividend: | June 11, 2021 | ||
Scheduled date of filing of Annual Security Report: | June 28, 2021 | ||
Preparation of supplementary materials for financial results: | Yes | ||
Holding of financial results meeting: | Yes (for analysts) |
Note: The original disclosure in Japanese was released on May 13, 2021 at 16:00 (GMT +9).
(All amounts are rounded down to the nearest million yen)
1. Consolidated Financial Results for the Fiscal Year Ended March 31, 2021 (April 1, 2020 - March 31, 2021)
(1) Consolidated results of operations | (Percentages represent year-on-year changes) | |||||||||
Net sales | Operating income | Ordinary income | Profit attributable to | |||||||
owners of parent | ||||||||||
Million yen | % | Million yen | % | Million yen | % | Million yen | % | |||
Fiscal year ended Mar. 31, 2021 | 18,789 | 4.3 | 1,216 | 25.3 | 1,310 | 28.3 | 578 | - | ||
Fiscal year ended Mar. 31, 2020 | 18,019 | 6.8 | 970 | 13.9 | 1,021 | 17.9 | (30) | - |
Note: Comprehensive income (million yen) | Fiscal year ended Mar. 31, 2021: | 749 | (-%) | |||||||||||
Fiscal year ended Mar. 31, 2020: | (119) | (-%) | ||||||||||||
Net income per | Diluted net | Return on equity | Ordinary income | Operating income | ||||||||||
share | income per share | on total assets | to net sales | |||||||||||
Yen | Yen | % | % | % | ||||||||||
Fiscal year ended Mar. 31, 2021 | 107.95 | 107.90 | 8.9 | 10.1 | 6.5 | |||||||||
Fiscal year ended Mar. 31, 2020 | (5.76) | - | (0.5) | 7.7 | 5.4 | |||||||||
Reference: Equity in earnings of affiliates (million yen): Fiscal year ended Mar. 31, 2021: - | Fiscal year ended Mar. 31, 2020: - | |||||||||||||
(2) Consolidated financial position | ||||||||||||||
Total assets | Net assets | Equity ratio | Net assets per share | |||||||||||
Million yen | Million yen | % | Yen | |||||||||||
As of Mar. 31, 2021 | 12,861 | 6,850 | 53.0 | 1,265.96 | ||||||||||
As of Mar. 31, 2020 | 12,988 | 6,218 | 47.7 | 1,154.07 |
Reference: Shareholders' equity (million yen) As of Mar. 31, 2021: 6,813 As of Mar. 31, 2020: 6,189
(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 | |
Million yen | Million yen | Million yen | Million yen | |
Fiscal year ended Mar. 31, 2021 | 2,131 | 87 | (1,247) | 4,853 |
Fiscal year ended Mar. 31, 2020 | 417 | (527) | (185) | 3,908 |
2. Dividends
Dividend per share | Total | Payout ratio | Dividend on | |||||||
equity | ||||||||||
1Q-end | 2Q-end | 3Q-end | Year-end | Total | dividends | (consolidated) | ||||
(consolidated) | ||||||||||
Yen | Yen | Yen | Yen | Yen | Million yen | % | % | |||
Fiscal year ended Mar. 31, 2020 | - | 0.00 | - | 28.00 | 28.00 | 151 | - | 2.4 | ||
Fiscal year ended Mar. 31, 2021 | - | 0.00 | - | 28.00 | 28.00 | 152 | 25.9 | 2.3 | ||
Fiscal year ending Mar. 31, 2022 | - | 0.00 | - | 30.00 | 30.00 | 19.7 | ||||
(forecasts) | ||||||||||
Note: Breakdown of the year-end dividend for the fiscal year ended March 31, 2021: Ordinary dividend: 28.00 yen
3. Consolidated Earnings Forecasts for the Fiscal Year Ending March 31, 2022 (April 1, 2021 - March 31, 2022)
(Percentages represent year-on-year changes)
Net sales | Operating income | Ordinary income | Profit attributable to | Net income per share | ||||||
owners of parent | ||||||||||
Million yen | % | Million yen | % | Million yen | % | Million yen | % | Yen | ||
Full year | 19,500 | 3.8 | 1,330 | 9.3 | 1,360 | 3.8 | 820 | 41.7 | 152.37 |
* Notes
(1) Changes in consolidated subsidiaries during the period (changes in scope of consolidation): None
Newly added: - | Excluded: - |
(2) Changes in accounting policies and accounting-based estimates, and restatements
1) | Changes in accounting policies due to revisions in accounting standards, others: | None |
2) | Changes in accounting policies other than 1) above: | None |
3) | Changes in accounting-based estimates: | None |
4) | Restatements: | None |
Please refer to "Notes to Consolidated Financial Statements" for further information.
(3) Number of outstanding shares (common shares)
1) Number of shares outstanding at the end of the period (including treasury shares)
As of Mar. 31, 2021: | 5,612,230 shares | As of Mar. 31, 2020: | 5,612,230 shares |
2) Number of treasury shares at the end of the period | |||
As of Mar. 31, 2021: | 230,423 shares | As of Mar. 31, 2020: | 248,984 shares |
3) Average number of shares outstanding during the period | |||
Fiscal year ended Mar. 31, 2021: | 5,362,310 shares | Fiscal year ended Mar. 31, 2020: | 5,324,711 shares |
Note: The Company's stock held by the Board Benefit Trust (BBT) is included in the number of treasury shares (47,800 shares each as of Mar. 31, 2021 and 2020, and is deducted from the number of shares that is used to calculate the average number of shares outstanding during the period.
Reference: Summary of Non-consolidated Financial Results
1. Non-consolidated Financial Results for the Fiscal Year Ended March 31, 2021 (April 1, 2020 - March 31, 2021)
(1) Non-consolidated results of operations | (Percentages represent year-on-year changes) | ||||||||||||
Net sales | Operating income | Ordinary income | Profit | ||||||||||
Million yen | % | Million yen | % | Million yen | % | Million yen | % | ||||||
Fiscal year ended Mar. 31, 2021 | 15,203 | 5.4 | 1,001 | (1.1) | 1,106 | (1.3) | 401 | - | |||||
Fiscal year ended Mar. 31, 2020 | 14,427 | 4.6 | 1,013 | 38.7 | 1,121 | 43.8 | 21 | (93.4) | |||||
Net income per share | Diluted net income per | ||||||||||||
share | |||||||||||||
Yen | Yen | ||||||||||||
Fiscal year ended Mar. 31, 2021 | 74.83 | 74.79 | |||||||||||
Fiscal year ended Mar. 31, 2020 | 4.07 | - | |||||||||||
(2) Non-consolidated financial position | |||||||||||||
Total assets | Net assets | Equity ratio | Net assets per share | ||||||||||
Million yen | Million yen | % | Yen | ||||||||||
As of Mar. 31, 2021 | 11,785 | 6,897 | 58.5 | 1,280.62 | |||||||||
As of Mar. 31, 2020 | 12,109 | 6,539 | 54.0 | 1,219.41 | |||||||||
Reference: Shareholders' equity (million yen) | As of Mar. 31, 2021: | 6,892 | As of Mar. 31, 2020: | 6,539 |
Note 1: The current financial report is not subject to audit by certified public accountants or auditing firms.
Note 2: Cautionary statement with respect to forward-looking statements
Forecasts of future performance in these materials are based on assumption judged to be valid and information available to the Company's management at the time the materials were prepared, but are not promises by the Company regarding future performance. Actual results may differ materially from the forecasts. Please refer to "1. Overview of Results of Operations, (4) Outlook" on page 3 for forecast assumptions and notes of caution for usage.
Japan System Techniques Co., Ltd. (4323) Financial Results for FY3/21
Contents of Attachments
1. Overview of Results of Operations | 2 | |
(1) | Results of Operations | 2 |
(2) | Financial Position | 2 |
(3) | Cash Flows | 3 |
(4) | Outlook | 3 |
2. Basic Approach to the Selection of Accounting Standards | 4 | |
3. Consolidated Financial Statements and Notes | 5 | |
(1) | Consolidated Balance Sheet | 5 |
(2) | Consolidated Statements of Income and Comprehensive Income | 7 |
Consolidated Statement of Income | 7 | |
Consolidated Statement of Comprehensive Income | 8 | |
(3) | Consolidated Statement of Changes in Equity | 9 |
(4) | Consolidated Statement of Cash Flows | 11 |
(5) | Notes to Consolidated Financial Statements | 12 |
Going Concern Assumption | 12 | |
Reclassifications | 12 | |
Additional Information | 12 | |
Segment and Other Information | 12 | |
Per-share Information | 15 | |
Subsequent Events | 15 |
1
Japan System Techniques Co., Ltd. (4323) Financial Results for FY3/21
1. Overview of Results of Operations
(1) Results of Operations
The Japanese economy was impacted by the global COVID-19 pandemic throughout the fiscal year that ended on March 31, 2021 and there are still concerns about the economy due to this crisis.
In the IT industry in Japan, according to the latest statistics in the "Survey of Selected Service Industries" by the Ministry of Economy, Trade and Industry (the final February 2021 figures), net sales continued to climb, rising 0.4% year on year in fiscal 2020 compared with 4.0% annual growth in fiscal 2019. However, due to the current increase in the impact of COVID-19 and other reasons, the outlook for the IT industry is extremely uncertain.
Consolidated sales and earnings of the Japan System Techniques Group (Japa n System Techniques Co., Ltd. (JAST) and its consolidated subsidiaries, hereafter "the Group") in the current fiscal year posted net sales of 18,789 million yen (up 4.3% year on year), operating income of 1,216 million yen (up 25.3% year on year), ordinary income of 1,310 million yen (up 28.3% year on year), and profit attributable to owners of parent of 578 million yen (vs. loss attributable to owners of parent of 30 million yen in the previous fiscal year) due to an impairment loss of 315 million yen. Business segment performance was as follows.
In the software business (individualized contracted software development), there was a decrease in orders from the service/retail industry but orders from the telecommunications and manufacturing industries and the finance/insurance/brokerage industry increased. As a result, net sales in this business totaled 12,687 million yen (up 5.0% year on year) and the operating income was 160 million yen (up 105.5% year on year).
In the GAKUEN business (sale and related services of operational reform packages for schools), there were increases in sales of program products (PP) to universities and implementation support and maintenance services sales. End user computing (EUC: individualized contracted development of related sys tems) sales decreased. Net sales in this business totaled 3,216 million yen (up 5.2% year on year) and the operating income was 856 million yen (up 20.4% year on year).
In the system sales business (IT equipment sales and IT/telecom infrastructure construc tion), sales in the core university and public sector categories decreased but there were strong sales at highly profitable projects and selling and other expenses decreased. Net sales in this business totaled 1,465 million yen (down 6.4% year on year) and operating income was 120 million yen (up 27.3% year on year).
In the medical big data business (inspections, analysis and related services for medical information data), sales of the automated inspection service for health insurance claims and services fo r notification of the cost of medical care decreased. Sales of support services for health insurance organizations and cloud services for managing welfare public assistance version of health insurance claims were higher than one year earlier. Despite strong sales, R&D and other expenses increased. As a result, net sales in this business totaled 1,419 million yen (up 8.0% year on year) and operating income was 90 million yen (down 3.0% year on year).
(2) Financial Position
The balance of current assets at the end of the current fiscal year was 9,696 million yen, up 1.0% over the end of the previous fiscal year. The balance of non-current assets was 3,165 million yen at the end of the current fiscal year, down 6.5% over the end of the previous fiscal year. This was mainly due to impairment loss for goodwill and customer-related assets.
The balance of current liabilities at the end of the current fiscal year was 4,388 million yen, down 15.1% over the end of the previous fiscal year. This was mainly due to a decrease in short-term borrowings. The balance of non-current liabilities was 1,623 million yen at the end of the current fiscal year, up 1.3% over the end of the previous year.
The balance of total net assets was 6,850 million yen at the end of the current fiscal year, up 10.2% over the end of the previous fiscal year.
2
Japan System Techniques Co., Ltd. (4323) Financial Results for FY3/21
(3) Cash Flows
Cash and cash equivalents increased 945 million yen from 3,908 million yen at the beginning of the current fiscal year to 4,853 million yen at the end of the current fiscal year.
Cash flows by category were as follows.
Cash flows provided by operating activities totaled 2,131 million yen, compared with 417 million yen provided in the previous fiscal year. This difference was mainly due to a decrease in payments of other payables, primarily accounts payable, and an increase in proceeds from the collection of trade receivables .
Cash flows provided by investing activities totaled 87 million yen, compared with 527 million yen used in the previous fiscal year. This difference was mainly due to a decrease in payment for the purchase of shares of subsidiaries and proceeds from redemption of investment securities.
Cash flows used in financing activities totaled 1,247 million yen, compared with 185 million yen used in the previous fiscal year. This difference was mainly due to a decrease in short-term borrowings.
Reference: Cash flow indicators
FY3/17 | FY3/18 | FY3/19 | FY3/20 | FY3/21 | ||||
Equity ratio (%) | 55.4 | 50.4 | 46.8 | 47.7 | 53.0 | |||
Equity ratio based on market value (%) | 50.0 | 56.4 | 55.5 | 42.1 | 64.2 | |||
Interest-bearing debt to cash flow ratio (years) | 0.5 | 0.4 | 1.2 | 3.6 | 0.2 | |||
Interest coverage ratio (times) | 78.0 | 431.8 | 478.5 | 94.1 | 615.0 | |||
Note: | 1. The above figures are calculated as follows. | |||||||
Equity ratio: Shareholders' equity / Total assets | ||||||||
Equity ratio based on market value: Market capitalization / Total assets | ||||||||
Interest-bearing debt to cash flow ratio: Interest-bearing debt / Operating cash flows | ||||||||
Interest coverage ratio: Operating cash flows / Interest payments |
- Market capitalization is calculated by multiplying the closing share price at the end of the period by the number of shares outstanding at the end of the period, excluding treasury shares.
- Interest-bearingdebt is calculated using total loans-payable on the consolidated balance sheet.
- Interest payments use the amount of interest expenses paid stated on the consolidated statement of cash flows.
- Outlook
The outlook for the business climate for the Group in the fiscal year ending in March 2022 is uncertain because of the continuing impact of the global COVID-19 pandemic. Particularly in the IT industry where the environment is extremely volatile, JAST understands that it will be difficult to achieve growth if it remains overly dependent on contract development, the IT industry's mainstay source of earnings to date.
Consequently, to define the medium to long-term basic policies for the management of the Group, we establish a new three-yearmedium-term plan every year. Each new plan starts with the fiscal year in which the plan was established. The plan includes the type of organization we want to become, our brand image, our business fields, the size of our operations and other goals. In this fiscal year, we will continue to take many actions in order to accomplish the goals of the current medium-term plan.
To express the central theme of the fiscal year ending in March 2022, the Group has selected the following slogan: Use innovations for a better future and create value -added businesses to conquer our markets. In the contracted development business, our goal is to increase the earnings of this core business while launching businesses that can become next-generation activities of our group. In the GAKUEN, medical big data and other businesses using our own brands, we will focus on making all our brands stronger and increasing our market share as well as on R&D for new technologies and products and on starting new businesses in order to continue the growth of these businesses.
Based on this outlook, we expect increases in sales and earnings in th e fiscal year ending March 31, 2022. We forecast net sales of 19,500 million yen (up 3.8% year on year), operating income of 1,330 million yen (up 9.3% year on year), ordinary income of 1,360 million yen (up 3.8% year on year), and profit attributable to owners of parent of 820 million yen (up 41.7% year on year).
3
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Japan System Techniques Co. Ltd. published this content on 01 June 2021 and is solely responsible for the information contained therein. Distributed by Public, unedited and unaltered, on 01 June 2021 02:01:00 UTC.