Nikkon : Summary of Consolidated Financial Results for the Year Ended March 31, 2022

Yasunori Matsuda

June 29, 2022

June 30, 2022

June 8, 2022 No

Yes (for analysts)

Translation

Notice: This document is an excerpt translation of the original Japanese document and is only for reference purposes. In the event of any discrepancy between this translated document and the original Japanese document, the latter shall prevail.

Summary of Consolidated Financial Results

for the Year Ended March 31, 2022

(Based on Japanese GAAP)

Company name:	NIKKON Holdings Co., Ltd.
Stock exchange listing:	Tokyo
Stock code:	9072	URL http://www.nikkon-hd.co.jp
Representative:	President & Representative Director	Masakatsu Kuroiwa

May 13, 2022

Inquiries:

Director, Managing Executive Officer, and General Manager of Accounting Department

TEL [phone]

Scheduled date of ordinary general meeting of shareholders:

Scheduled date to file Securities Report:

Scheduled date to commence dividend payments:

Preparation of supplementary material on financial results:

Holding of financial results meeting:

				(Amounts less than one million yen are rounded down)
1. Consolidated financial results for the year ended March 31, 2022 (from April 1, 2021 to March 31, 2022)
(1) Consolidated operating results					Percentages indicate year-on-year changes
	Net sales		Operating profit	Ordinary profit		Profit attributable to
			owners of parent
	Millions of yen	%	Millions of yen	%	Millions of yen		%	Millions of yen	%
Year ended March 31, 2022	198,159	8.6	19,512	7.3	21,584		4.9	14,741	1.4
Year ended March 31, 2021	182,536	(8.5)	18,191	(12.9)	20,572		(8.7)	14,544	(13.0)

Note: Comprehensive income Year ended March 31, 2022

15,710 million yen [(20.1)%]

Year ended March 31, 2021

19,667 million yen [55.0%]

Diluted earnings per

Profit attributable to

Ordinary profit/total

Operating profit/net

Earnings per share

owners of

share

parent/equity

assets

sales

Yen

Yen

%

%

%

Year ended March 31, 2022

224.41

223.81

6.9

6.5

9.8

Year ended March 31, 2021

221.26

220.51

7.3

6.6

10.0

Reference: Investment profit (loss) on equity method

Year ended March 31, 2022

460 million yen

Year ended March 31, 2021

484 million yen

(2) Consolidated financial position

Total assets

Net assets

Equity ratio

Net assets per share

Millions of yen

Millions of yen

%

Yen

As of March 31, 2022

339,475

219,035

64.4

3,334.70

As of March 31, 2021

322,139

208,290

64.5

3,160.46

Reference: Equity

As of March 31, 2022

218,478 million yen

As of March 31, 2021

207,747 million yen

(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

Millions of yen

Millions of yen

Millions of yen

Millions of yen

Year ended March 31, 2022

28,985

(31,567)

759

29,157

Year ended March 31, 2021

23,229

(25,402)

1,473

30,366

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2. Cash dividends

		Annual dividends per share		Total cash	Dividend payout	Ratio of dividends
						to net assets
	1st quarter-end	2nd quarter-end	3rd quarter-end	Fiscal year-end	Total	dividends (Total)	ratio (Consolidated)	(Consolidated)
	Yen	Yen	Yen	Yen	Yen	Millions of yen	%	%
Year ended March 31, 2021	−	33.00	−	34.00	67.00	4,404	30.3	2.1
Year ended March 31, 2022	−	34.00	−	35.00	69.00	4,531	30.7	2.1
Year ending March 31, 2023	−	48.00	−	48.00	96.00		40.1
(Forecast)

3. Forecast of consolidated financial results for the year ending March 31, 2023 (from April 1, 2022 to March 31, 2023)

Percentages indicate year-on-year changes

	Net sales		Operating profit	Ordinary profit		Profit attributable to	Earnings per share
			owners of parent
Six months ending	Millions of yen	%	Millions of yen	%	Millions of yen	%	Millions of yen	%	Yen
102,000	7.8	10,200	10.1	11,000	10.5		7,300	11.6	111.42
September 30, 2022
Full year	215,000	8.5	21,500	10.2	23,000	6.6		15,700	6.5	239.63
4. Notes
(1) Changes in significant subsidiaries during the year ended March 31, 2022			No
(changes in specified subsidiaries resulting in the change in scope of consolidation):
(2) Changes in accounting policies, changes in accounting estimates, and restatement of prior period financial statements
Changes in accounting policies due to revisions to accounting standards and other regulations:	Yes
Changes in accounting policies due to other reasons:					No
Changes in accounting estimates:							No
Restatement of prior period financial statements:					No

Note: For details, please refer to "Changes in accounting policies" of "3. Consolidated financial statements and significant notes thereto,

1. 1. Notes on consolidated financial statements" on page 17 of the attached documents.
2. Number of issued shares (common shares)

Total number of issued shares at the end of the period (including treasury shares)

	As of March 31, 2022	68,239,892	shares	As of March 31, 2021	68,239,892	shares
Number of treasury shares at the end of the period
	As of March 31, 2022	2,723,278	shares	As of March 31, 2021	2,506,469	shares
Average number of shares during the period
	Year ended March 31, 2022	65,689,004	shares	Year ended March 31, 2021	65,733,467	shares

Note: The number of treasury shares at the end of the period and the number of treasury shares excluded from the calculation of the average number of shares outstanding during the period include shares of the Company held by a trust whose beneficiaries are Directors (26,900 shares as of March 31, 2022).

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Reference: Summary of non-consolidated financial results

Non-consolidated financial results for the year ended March 31, 2022 (from April 1, 2021 to March 31, 2022)

(1) Non-consolidated operating results								Percentages indicate year-on-year changes
		Net sales			Operating profit	Ordinary profit	Profit
		Millions of yen		%	Millions of yen	%	Millions of yen		%	Millions of yen		%
Year ended March 31, 2022		9,767	(19.9)	8,101	(23.6)	8,843		(18.6)	8,425		(21.2)
Year ended March 31, 2021		12,197		10.8	10,601	9.8	10,864		9.1	10,693		3.6
		Earnings per share		Diluted earnings per
							share
			Yen			Yen
Year ended March 31, 2022		128.26			127.92
Year ended March 31, 2021		162.69			162.14
(2) Non-consolidated financial position
		Total assets			Net assets	Equity ratio		Net assets per share
			Millions of yen	Millions of yen			%			Yen
As of March 31, 2022			214,252			123,712			57.6		1,884.78
As of March 31, 2021			209,301			120,947			57.6		1,835.10
Reference: Equity	As of March 31, 2022				123,484 million yen
	As of March 31, 2021				120,627 million yen

• Financial results reports are exempt from audit conducted by certified public accountants or an audit corporation.
• Proper use of forecasts of financial results, and other special matters

(Caution regarding forward-looking statements)

Forward-looking statements, including financial results forecasts stated in these materials, are based on information currently available to the Company and certain assumptions deemed reasonable. Actual financial and other results may differ substantially from the statements herein due to various factors.

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Index of attached documents
1. Overview of operating results and others ...........................................................................................................	5
(1)	Overview of operating results for the period ...............................................................................................	5
(2)	Explanation of financial position for the fiscal year under review ..............................................................	5
(3)	Overview of cash flows for the period.........................................................................................................	6
(4)	Future outlook..............................................................................................................................................	6
(5)	Basic policy on distribution of profits, and dividends in period under review and subsequent period........	6
2. Basic philosophy for selecting accounting standards .........................................................................................	7
3. Consolidated financial statements and significant notes thereto ........................................................................	8
(1)	Consolidated balance sheets.........................................................................................................................	8
(2)	Consolidated statements of income and consolidated statements of comprehensive income ....................	10
	(Consolidated statements of income)......................................................................................................	10
	(Consolidated statements of comprehensive income)............................................................................	12
(3)	Consolidated statements of changes in equity............................................................................................	13
(4)	Consolidated statements of cash flows ......................................................................................................	15
(5)	Notes on consolidated financial statements ...............................................................................................	17
	(Notes on going concern assumption)........................................................................................................	17
	(Changes in accounting policies) ...............................................................................................................	17
	(Change in method of presentation)...........................................................................................................	17
	(Segment information) ...............................................................................................................................	18
	(Per share information) ..............................................................................................................................	20
	(Subsequent events) ...................................................................................................................................	20

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1. Overview of operating results and others

1. Overview of operating results for the period
   During the fiscal year ended March 31, 2022, the Japanese economy continued to experience harsh conditions despite ongoing signs of recovery amid the persisting impact of the novel coronavirus disease (COVID-19). The number of new COVID-19 cases has been declining due to vaccination followed by the signs that economic activities are returning to normal. Economic condition, however, is expected to remain uncertain as social and economic activities have fully recovered yet.
   In the logistics industry, the severe business situation has continued due to a chronic labor shortage and intensified competition in addition to rising fuel prices and other factors.
   Under these circumstances, the Group's consolidated sales for the fiscal year ended March 31, 2022 were 198,159 million yen, up 8.6% from the previous fiscal year, mainly due to a recovery in business volume.
   Operating profit was 19,512 million yen, up 7.3% from the previous fiscal year, due to the effects of sales increase and efficiency improvement of operations.
   Ordinary profit was 21,584 million yen, up 4.9% from the previous fiscal year, following the increase in operating profit. Profit attributable to owners of parent was 14,741 million yen, up 1.4% from the previous fiscal year.
   Business results by segment are as follows. Transportation business
   Sales were 90,338 million yen, up 6.8% from the previous fiscal year, mainly due to a recovery in the volume of cargo handled. Operating profit was 4,498 million yen, down 4.0% from the previous fiscal year, due to the effect of higher fuel price. Warehousing business
   Sales were 34,600 million yen, up 7.8% from the previous fiscal year, due to an increase in the volume of cargo stored, which is the result of our ongoing efforts in Japan and overseas to establish or expand warehouses. Operating profit was 8,050 million yen, up 6.6% from the previous fiscal year, mainly due to the effect of higher sales.
   Packaging business
   Sales were 44,363 million yen, up 10.5% from the previous fiscal year, mainly due to a recovery in the volume handled. Operating profit was 2,354 million yen, down 0.5% from the previous fiscal year, mainly due to the effects of higher personnel expenses and outsourcing expenses.
   Testing business
   Sales were 21,863 million yen, up 6.8% from the previous fiscal year, mainly due to a recovery in the volume handled. Operating profit was 3,739 million yen, up 33.1% from the previous fiscal year, due to the effects of higher sales and efficiency improvement of operations.
2. Explanation of financial position for the fiscal year under review
   (Assets)
   Current assets at the end of the fiscal year under review totaled 74,655 million yen, an increase of 113 million yen from the end of the previous fiscal year. The increase mainly came from an increase of 1,729 million yen in notes and accounts receivable - trade, despite decreases of 1,172 million yen in cash and deposits and 494 million yen in securities. Non-current assets totaled 264,819 million yen, an increase of 17,222 million yen from the end of the previous fiscal year. The increase mainly came from an increase of 18,400 million yen in property, plant and equipment due to purchase of warehouses (in Ota City, Gunma Prefecture, Yorii Machi, Saitama Prefecture, Asaka City, Saitama Prefecture, Inzai City, Chiba Prefecture, Niigata City, Niigata Prefecture, Takaoka City, Toyama Prefecture, Kani City, Gifu Prefecture, Seto City, Aichi Prefecture, Ibaraki City, Osaka Prefecture, and Thailand), business sites (in Tokai City, Aichi Prefecture, Oura Machi, Gunma Prefecture, and Furukawa City, Ibaragi Prefecture), and an income property (in Wako City, Saitama Prefecture).
   As a result, total assets were 339,475 million yen, an increase of 17,336 million yen from the end of the previous fiscal year.
   (Liabilities)
   Current liabilities at the end of the fiscal year under review totaled 44,367 million yen, a decrease of 1,901 million yen from the end of the previous fiscal year. This decrease mainly came from decreases of 2,541 million yen in electronically recorded obligations - non-operating and 2,020 million yen in short-term borrowings, partially offset by increases of 1,737 million yen in notes and accounts payable - trade and 679 million yen in electronically recorded obligations - operating. Non-current liabilities totaled 76,072 million yen, an increase of 8,493 million yen from the end of the previous fiscal year. This increase mainly came as the company financed 10,000 million yen through issuing bonds to fund facilities, partially offset by repaying long-term borrowings of 1,823 million yen.
   As a result, total liabilities were 120,440 million yen, an increase of 6,591 million yen from the end of the previous fiscal year.
   (Net assets)
   Net assets at the end of the fiscal year under review were 219,035 million yen, an increase of 10,744 million yen from the end of the previous fiscal year. This increase mainly came from an increase of 10,209 million yen in retained earnings.
   As a result, the equity ratio at the end of the period under review was 64.4% (64.5% at the end of the previous fiscal year).

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