NSK Ltd.
For Immediate Release | July 30, 2021 | ||||||||||||||||||||
CONSOLIDATED RESULTS FOR THE THREE MONTHS ENDED | |||||||||||||||||||||
JUNE 30, 2021 (Unaudited) | [IFRS] | ||||||||||||||||||||
Company name | NSK Ltd. | ||||||||||||||||||||
Stock exchange on which the shares are listed | Tokyo Stock Exchange in Japan | ||||||||||||||||||||
Code number | 6471 | ||||||||||||||||||||
URL | https://www.nsk.com/ | ||||||||||||||||||||
Representative | Akitoshi Ichii, President and CEO | ||||||||||||||||||||
Contact person | Keita Suzuki, Senior Vice President | ||||||||||||||||||||
Filing date of quarterly securities report | August 6, 2021 | ||||||||||||||||||||
Figures are rounded down to the nearest million yen | |||||||||||||||||||||
1. Consolidated financial highlights for the three months ended June 30, 2021 | |||||||||||||||||||||
(1) Consolidated financial results | % indicates changes from the previous year | ||||||||||||||||||||
Operating | Net income | Total | |||||||||||||||||||
Income before | Net income | attributable to | |||||||||||||||||||
Sales | comprehensive | ||||||||||||||||||||
income | income taxes | owners of the | income | ||||||||||||||||||
parent | |||||||||||||||||||||
Millions of Yen | Millions of Yen | Millions of Yen | Millions of Yen | Millions of Yen | Millions of Yen | ||||||||||||||||
Three months ended | 213,458 | 65.6 | 9,177 | 9,478 | 5,395 | 4,833 | 19,146 | ||||||||||||||
Jun. 30, 2021 | |||||||||||||||||||||
Three months ended | 128,870 | -42.2 | -12,903 | -12,527 | -9,910 | -9,699 | -2,838 | ||||||||||||||
Jun. 30, 2020 | |||||||||||||||||||||
Basic earnings | Diluted earnings | ||||||||||||||||||||
per share | per share | ||||||||||||||||||||
Yen | Yen | ||||||||||||||||||||
Three months ended | 9.43 | 9.40 | |||||||||||||||||||
Jun. 30, 2021 | |||||||||||||||||||||
Three months ended | -18.94 | -18.94 | |||||||||||||||||||
Jun. 30, 2020 | |||||||||||||||||||||
(2) Consolidated financial position | |||||||||||||||||||||
Total assets | Total equity | Total equity attributable | Ratio of equity | ||||||||||||||||||
attributable to owners of | |||||||||||||||||||||
to owners of the parent | |||||||||||||||||||||
the parent to total assets | |||||||||||||||||||||
Millions of Yen | Millions of Yen | Millions of Yen | |||||||||||||||||||
As of Jun. 30, 2021 | 1,172,294 | 587,661 | 569,165 | 48.6 | |||||||||||||||||
As of Mar. 31, 2021 | 1,167,498 | 573,428 | 554,375 | 47.5 |
2. Cash dividends | ||||||||
Cash dividends per share | ||||||||
(Record date) | End of the | End of the | End of the | Year-end | Full-year | |||
1st quarter | 2nd quarter | 3rd quarter | total | |||||
Yen | Yen | Yen | Yen | Yen | ||||
Year ended Mar. 31, 2021 | 10.00 | 10.00 | 20.00 | |||||
Year ending Mar. 31, 2022 | ||||||||
Year ending Mar. 31, 2022 | 10.00 | 15.00 | 25.00 | |||||
(Forecast) | ||||||||
Note | Revision to the forecast of cash dividends from the latest announcement: None |
3. Forecast of consolidated results for the year ending March 31, 2022
- indicates changes from same period of previous year Net income
Sales | Operating income | Income before | attributable to | Basic earnings | |||||
income taxes | owners of the | per share | |||||||
parent | |||||||||
Six months ending Sep. | Millions of Yen | Millions of Yen | Millions of Yen | Millions of Yen | Yen | ||||
425,000 | 34.5 | 18,000 | 18,000 | 13,000 | 25.36 | ||||
30, 2021 | |||||||||
Year ending Mar. 31, 2022 | 860,000 | 15.0 | 53,000 732.7 | 52,500 | 791.5 | 38,000 | 74.14 | ||
Note Revision to the forecast of consolidated results from the latest announcement: None |
- 1 -
Others
- Changes in the significant subsidiaries during the period (Changes in specified subsidiaries resulting in change in the scope of consolidation): None
- Changes in accounting policies, or changes in accounting estimates
- Changes in accounting policies required by IFRS: None
- Changes excluding the above: None
- Changes in accounting estimates: None
- Number of shares issued and outstanding (common stock)
- Number of shares issued and outstanding at the end of each period (including treasury stock):
As of Jun. 30, 2021 | 551,268,104 | shares | As of Mar. 31, 2021 | 551,268,104 shares |
(ii) Number of treasury stock at the end of each period: | ||||
As of Jun. 30, 2021 | 38,713,303 | shares | As of Mar. 31, 2021 | 38,717,721 shares |
(iii) Average number of shares issued and outstanding in each period: | ||||
Three months ended Jun. 30, 2021 | 512,553,816 | shares | Three months ended Jun. 30, 2020 | 512,164,857 shares |
This summary of quarterly financial results is out of scope of review by certified public accountants or an auditor.
Cautionary statement with respect to forward-looking statements
The forecasts in this document are based on currently available information and certain assumptions that the Company regards as reasonable, and actual results may materially differ from any future results expressed herein due to various factors.
- 2 -
1. Business overview
(1) Qualitative information regarding consolidated business results
The NSK Group is promoting a range of initiatives toward its 6th Mid-Term Management Plan, which spans the three years beginning April 2019 and sets a target of "building a business base and strengthening resources in preparation for the next growth phase." Positioning safety, quality, compliance and environment as NSK core values, we continue to implement two key policies of "operational excellence" and "challenging innovation" and are addressing three main management themes: new initiatives targeting growth, enhancement of managerial resources, and contribution to the environment and society.
Looking at the global economy during the first quarter of the fiscal year ending March 31, 2022, although COVID-19 infection rates varied by country and region, economic activity has gradually progressed and the global economy continued moving toward recovery.
In Japan, although exports increased due to economic recovery overseas, consumer spending remained weak in certain categories. In the US, large-scale economic stimulus measures and easing of restrictions supported consumer spending and the economy is steadily picking up. In Europe, the rollout of COVID- 19 vaccines put the brakes on the spread of infection and consumer spending and capital expenditure increased in line with the resumption of economic activity. In China, capital expenditure and exports to the US continued growth steadily and the economy is recovering.
In this economic environment, consolidated sales for the first quarter of the year ending March 31, 2022 totaled ¥213,458 million, a year-on-year increase of 65.6%, and operating income totaled ¥9,177 million (compared to an operating loss of ¥12,903 million in the same period last year). Income before income taxes was ¥9,478 million (compared to a loss before income taxes of ¥12,527 million in the same period last year). Net income attributable to owners of the parent was ¥4,833 million (compared to a net loss attributable to owners of the parent of ¥9,699 million in the same period last year).
Business segment information
1) Industrial Machinery Business segment
In the industrial machinery business, a global recovery in capital expenditure was seen in the first quarter due to improved business conditions in the manufacturing industry in addition to increasing demand in the semiconductor industry. Sales increased compared to the same period of the previous year.
Looking at the Company's results by geographic breakdown, demand in Japan increased, especially in the machine tool, semiconductor, electrical and electrical accessory sectors. In the Americas and Europe, sales in the electrical and electrical accessory and aftermarket sectors increased. In China, demand steadily increased in the machine tool and aftermarket sectors.
As a result, sales in the industrial machinery business totaled ¥82,193 million, a year-on-year increase of 40.6%, and operating income was ¥6,531 million (compared to an operating loss of ¥679 million in the same period last year).
- Automotive Business segment
With global vehicle production dropping significantly during the first quarter of the previous fiscal year due to the spread of COVID-19, a rebound in sales saw a year-on-year increase, although this was partially restricted by semiconductor supply shortages.
Looking at the Company's results by geographic breakdown, sales in Japan increased as demand recovered from the same period last year. In the Americas and Europe, sales increased due to recovery from the previous year's weak vehicle sales, which had been impacted by the COVID-19 lockdown restrictions. In China, sales increased slightly compared to the same period last year, as sales in the previous year had already shown recovery due to China's rapid recovery from the impact of COVID-19. In other Asian countries, mainly ASEAN nations and India, sales increased compared to the same period last year.
As a result, sales in the automotive business totaled ¥121,732 million, a year-on-year increase of 84.5%, and operating income was ¥1,675 million (operating loss was ¥11,939 million in the same period last year).
- 3 -
-
Qualitative information regarding consolidated financial position
Assets and liabilities
At the end of the period, following the recovery of overall business conditions, cash and cash equivalents and other financial liabilities (current) decreased due to repayment of part of the borrowings procured as a countermeasure for liquidity risks posed by the global spread of COVID-19. Cash and cash equivalents decreased by ¥15,032 million and other financial liabilities (current) decreased by ¥13,206 million compared to the same period of the previous year. There was an increase of ¥13,527 million in inventories due to increased production volume in anticipation of demand growth.
Total assets at the end of the period were ¥1,172,294 million, an increase of ¥4,796 million compared to total assets as of March 31, 2021. Total liabilities at the end of the period were ¥584,632 million, a decrease of ¥9,437 million compared to total liabilities as of March 31, 2021.
Total equity
Total equity at the end of the period was ¥587,661 million, an increase of ¥14,233 million compared to total equity as of March 31, 2021 primarily due to the increase in net income attributable to owners of the parent and other components of equity, which offset the payment of cash dividends.
Qualitative information regarding cash flow
Total cash and cash equivalents at the end of the period were ¥161,606 million, a decrease of ¥15,032 million compared to total cash and cash equivalents as of March 31, 2021. This represents a decrease of ¥24,284 million compared to total cash and cash equivalents as of the same period last year due to repayment of borrowings as the current business condition is improving.
-
Net cash flow provided by operating activities
Net cash flow provided by operating activities totaled ¥12,949 million, an increase of ¥3,540 million compared to the previous year. This includes the net income before income taxes of ¥9,478 million with subsequent adjustments including depreciation and amortisation, and change in working capital. - Net cash flow used in investing activities
Net cash flow used in investing activities totaled ¥5,984 million, a decrease of ¥2,820 million compared to the previous year. This includes purchases of property, plant and equipment totaling ¥6,078 million.
3) Net cash flow provided by financing activities
Net cash flow used by financing activities resulted in an outflow of ¥22,757million (net cash provided by financing activities was ¥47,313 million at the same period last year.) The main cash outflows were ¥5,005 million in dividends paid and ¥15,647 million in decrease in short-term loans.
(3) Explanation regarding future forecast information including consolidated business forecast
No revision has been made to the consolidated business forecasts for the year ending March 31, 2022 announced on May 11, 2021.
- 4 -
2. Quarterly consolidated financial statements and notes
(1) Quarterly consolidated statements of financial position
(Millions of yen) | |||
As of Mar. 31, 2021 | As of Jun. 30, 2021 | ||
Assets | |||
Current assets | |||
Cash and cash equivalents | 176,638 | 161,606 | |
Trade receivables and other receivables | 185,228 | 184,443 | |
Inventories | 150,046 | 163,574 | |
Other financial assets | 1,569 | 1,617 | |
Income tax receivables | 4,670 | 4,528 | |
Other current assets | 15,850 | 19,544 | |
Total current assets | 534,004 | 535,314 | |
Non-current assets | |||
Property, plant and equipment | 378,677 | 371,471 | |
Intangible assets | 39,435 | 39,501 | |
Investments accounted for using equity method | 29,773 | 27,138 | |
Other financial assets | 79,203 | 78,830 | |
Deferred tax assets | 10,962 | 11,296 | |
Net defined benefit assets | 88,809 | 101,943 | |
Other non-current assets | 6,632 | 6,798 | |
Total non-current assets | 633,493 | 636,980 | |
Total assets | 1,167,498 | 1,172,294 | |
Liabilities and Equity | |||
Liabilities | |||
Current liabilities | |||
Trade payables and other payables | 111,609 | 109,313 | |
Other financial liabilities | 130,205 | 116,998 | |
Provisions | 318 | 278 | |
Income tax payables | 3,203 | 5,635 | |
Other current liabilities | 54,888 | 59,411 | |
Total current liabilities | 300,224 | 291,637 | |
Non-current liabilities | |||
Financial liabilities | 223,211 | 218,837 | |
Provisions | 2,919 | 3,002 | |
Deferred tax liabilities | 42,225 | 45,301 | |
Net defined benefit liabilities | 17,349 | 17,657 | |
Other non-current liabilities | 8,139 | 8,196 | |
Total non-current liabilities | 293,845 | 292,994 | |
Total liabilities | 594,070 | 584,632 | |
Equity | |||
Issued capital | 67,176 | 67,176 | |
Capital surplus | 80,338 | 80,628 | |
Retained earnings | 397,837 | 398,687 | |
Treasury shares | -37,303 | -37,299 | |
Other components of equity | 46,325 | 59,973 | |
Total equity attributable to owners of the parent | 554,375 | 569,165 | |
Non-controlling interests | 19,052 | 18,496 | |
Total equity | 573,428 | 587,661 | |
Total liabilities and equity | 1,167,498 | 1,172,294 | |
- 5 -
This is an excerpt of the original content. To continue reading it, access the original document here.
Attachments
- Original document
- Permalink
Disclaimer
NSK Ltd. published this content on 30 July 2021 and is solely responsible for the information contained therein. Distributed by Public, unedited and unaltered, on 30 July 2021 06:08:09 UTC.