Note: This document has been translated from the Japanese original for reference purposes only. In the event of any discrepancy between this translated document and the Japanese original, the original shall prevail.
Summary of Consolidated Financial Results
for the Six Months Ended September 30, 2021 (J-GAAP)
October 29, 2021 | ||||
Listed Company Name: Sanwa Holdings Corporation | Listing: Tokyo Stock Exchange | |||
Securities Code: | 5929 | URL https://www.sanwa-hldgs.co.jp/english/ | ||
Representative: | Yasushi Takayama, Representative Director, President | |||
Contact: | Katsumi Fujii, General Manager, Corporate Planning Department | Tel.: +81-3-3346-3019 | ||
Scheduled Date to Submit Quarterly Securities Report: November 12, 2021 | ||||
Scheduled Date to Start Dividend Payment: | December 3, 2021 | |||
Preparation of Results Briefing Materials: | Yes | |||
Holding of Financial Results Briefing: | Yes |
(Amounts of less than one million yen have been truncated)
1. Consolidated Financial Results for the Six Months Ended September 30, 2021 (from April 1, 2021 to September 30, 2021)
(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 | % | ||||||||||||||
Six months ended | 216,500 | 13.4 | 14,356 | 49.9 | 13,927 | 53.6 | 9,135 | 57.3 | |||||||||||||
September 30, 2021 | |||||||||||||||||||||
Six months ended | 190,949 | -4.1 | 9,579 | -13.4 | 9,069 | -15.9 | 5,807 | -16.4 | |||||||||||||
September 30, 2020 | |||||||||||||||||||||
Note: Comprehensive income | Six months ended September 30, 2021: 14,151 million yen | (144.7%) | |||||||||||||||||||
Six months ended September 30, 2020: | 5,784 million yen | (61.5%) | |||||||||||||||||||
Earnings per share | Diluted earnings per share | ||||||||||||||||||||
Yen | Yen | ||||||||||||||||||||
Six months ended | 41.35 | 41.25 | |||||||||||||||||||
September 30, 2021 | |||||||||||||||||||||
Six months ended | 26.29 | 26.22 | |||||||||||||||||||
September 30, 2020 | |||||||||||||||||||||
(2) Consolidated Financial Position | |||||||||||||||||||||
Total assets | Net assets | Equity ratio | |||||||||||||||||||
Millions of yen | Millions of yen | % | |||||||||||||||||||
As of September 30, 2021 | 377,405 | 192,109 | 50.5 | ||||||||||||||||||
As of March 31, 2021 | 375,159 | 181,387 | 47.9 | ||||||||||||||||||
Reference: Shareholders' equity | As of September 30, 2021: | 190,435 million yen | |||||||||||||||||||
As of March 31, 2021: | 179,827 million yen | ||||||||||||||||||||
2. Dividends | |||||||||||||||||||||
Full-year dividend | |||||||||||||||||||||
First | Second | Third | Year-end | Total | |||||||||||||||||
quarter-end | quarter-end | quarter-end | |||||||||||||||||||
Fiscal year ended | Yen | Yen | Yen | Yen | Yen | ||||||||||||||||
− | 17.00 | − | 17.00 | 34.00 | |||||||||||||||||
March 31, 2021 | |||||||||||||||||||||
Fiscal year ending | − | 17.00 | |||||||||||||||||||
March 31, 2022 | |||||||||||||||||||||
Fiscal year ending | − | 17.00 | 34.00 | ||||||||||||||||||
March 31, 2022 (Forecast) | |||||||||||||||||||||
Note: Revision of dividends forecast since last announcement: None
3. Consolidated Financial Results Forecast for the Fiscal Year Ending March 31, 2022 (from April 1, 2021 to March 31, 2022)
(Percentages indicate year-on-year changes)
Net sales | Operating profit | Ordinary profit | Profit attributable | Earnings per | |||||||||
to owners of parent | share | ||||||||||||
Full year | Millions of yen | % | Millions of yen | % | Millions of yen | % | Millions of yen | % | Yen | ||||
457,000 | 7.0 | 34,000 | 2.8 | 32,700 | 1.7 | 21,600 | 1.6 | 97.77 |
Note: Revision of consolidated results forecast since last announcement: Yes
Notes:
- Changes in significant subsidiaries during the period (changes in specified subsidiaries due to changes in the scope of consolidation): None
New: ―Excluded: ―
(2) Application of special accounting treatments in preparing quarterly consolidated financial statements: Yes
Note: For details, please refer to "2. Quarterly Consolidated Financial Statements and Primary Notes (4) Notes to Quarterly Consolidated Financial Statements (Application of Accounting Treatments Specific to the Preparation of Quarterly Consolidated Financial Statements)" on page 10 of the attached materials.
- Changes in accounting policies, accounting estimates, and retrospective restatements
- Changes in accounting policies in accordance with revision of accounting standards: Yes
- Changes in accounting policies other than item 1) above: None
- Changes in accounting estimates: None
- Retrospective restatements: None
Note: For details, please refer to "2. Quarterly Consolidated Financial Statements and Primary Notes (4) Notes to Quarterly Consolidated Financial Statements (Changes in Accounting Policies)" on page 10 of the attached materials.
- Number of shares issued (common stock)
- Number of shares issued at the end of the period (including treasury shares)
As of September 30, 2021 | 231,000,000 shares | |
As of March 31, 2021 | 231,000,000 shares | |
2) | Number of treasury shares at the end of the period | |
As of September 30, 2021 | 10,063,425 shares | |
As of March 31, 2021 | 10,107,727 shares | |
3) | Average number of shares during the period | |
April−September 2021 | 220,911,250 shares | |
April−September 2020 | 220,872,780 shares |
The quarterly review procedure by a certified public accountant or an auditing firm does not apply to this Summary of Consolidated Financial Results.
Explanation regarding appropriate use of results forecast and additional notes
(Earnings forecasts and other forward-looking statements)
(1) Forward-looking statements
This document includes projections based on assumptions, forecasts, and plans for the future that are available on the day of its publication, and actual results may differ from the forecast figures stated in the document due to various risk factors and uncertainties. For further details regarding the earnings forecasts, please see "1. Qualitative Information regarding Financial Results for the Six Months Ended September 30, 2021, (3) Explanation of Consolidated Results Forecasts and Other Forward-looking Statements" on page 3 of the attached materials.
(2) Business results briefing for securities analysts and institutional investors
The Company will not be holding a business results briefing at a physical location, in light of the spread of the COVID-19 infection. However, the Company will hold an online business results briefing, and a streaming video of the briefing will be posted on the Company's website at a later date.
(Supplementary presentation materials for the quarterly results)
Supplementary materials for the quarterly results will be posted on the Company's website, along with a summary of the quarterly financial results report.
Contents of the Attachment
1. Qualitative Information regarding Financial Results for the Six Months Ended September 30, 2021……… 2
- Explanation of Operating Results……………………………………………………………………………… 2
- Explanation of Financial Position……………………………………………………………………………… 2
(3) | Explanation of Consolidated Results Forecasts and Other Forward-looking Statements……………… | 3 |
2. Quarterly Consolidated Financial Statements and Primary Notes…………………………………………… | 4 | |
(1) Quarterly Consolidated Balance Sheets……………………………………………………………………… | 4 | |
(2) | Quarterly Consolidated Statements of Income and Comprehensive Income…………………………… | 6 |
(3) | Quarterly Consolidated Statements of Cash Flows………………………………………………………… | 8 |
- Notes to Quarterly Consolidated Financial Statements…………………………………………………… 10 (Notes on the Going Concern Assumption)…………………………………………………………………… 10
(Notes on Significant Changes in the Amount of Shareholders' Equity)…………………………………… 10
(Application of Accounting Treatments Specific to the Preparation of Quarterly Consolidated Financial 10 Statements)………………………………………………………………………………………………………
(Changes in Accounting Policies)……………………………………………………………………………… 10
(Segment Information, etc.)…………………………………………………………………………………… 12
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1. Qualitative Information regarding Financial Results for the Six Months Ended September 30, 2021
- Explanation of Operating Results
During the six months ended September 30, 2021, the external environment surrounding the Sanwa Group continued to be challenging, primarily due to the government's intermittent declarations of a state of emergency in Japan. However, signs of a gradual recovery were observed in corporate activities, on the back of expectations for an economic recovery due to the full-scale implementation of vaccinations against COVID-19. In the U.S., a trend toward recovery continued due to the effects of additional economic stimulus measures and the spread of vaccinations. In Europe, although harsh conditions continued, expectations for an economic recovery grew as restrictions on activities were gradually eased, on the back of the spread of vaccinations. In Asia, the Chinese economy, in particular continued on a trend toward recovery. Meanwhile, there are concerns regarding the impact on the economic recovery of tight supply and demand associated with a recovery of economic activities, supply shortages and soaring prices of raw materials and components due to supply chain disruptions amidst the COVID- 19 pandemic, as well as global labor shortages.
Under these circumstances, the Sanwa Group has extended the period of the Third Mid-Term Management Plan, "Sanwa Global Vision 2020," which was originally planned to be completed in fiscal 2020, by one year to fiscal 2021, and has continued to work on the following strategies, in addition to appropriate responses to the COVID-19 pandemic in order to accomplish the strategies set forth in the Mid-Term Management Plan, which were affected by the spread of COVID-19.
As basic strategies for our core business, in Japan, the Group worked to strengthen systems to grow and expand business as an access system company, by establishing our position in each business field. In the U.S., Overhead Door Corporation, which celebrated the 100th anniversary of its founding, maintained and expanded its core business segments while focusing on entering adjacent business fields, and in April 2021 acquired Won-Door Corporation, a manufacturer and seller of horizontal sliding doors. In Europe, the Group strove to further expand the industrial segment and promote digitalization in the entire European area. As basic strategies for our growing business, the Group promoted a strengthening of service businesses in Japan, the U.S., and Europe, while working on restructuring sales and production systems and strengthening its management structure, with the aim of enhancing operation bases of its Asia business. In addition, in order to respond to supply shortages and soaring prices of raw materials and components, Group companies strived to secure procurement, pass on costs to sale prices, and reduce costs.
As a result, net sales for the six months ended September 30, 2021 amounted to ¥216,500 million, a 13.4% year- on-year increase. In terms of profits, operating profit amounted to ¥14,356 million, a 49.9% year-on-year increase, ordinary profit amounted to ¥13,927 million, a 53.6% year-on-year increase, and profit attributable to owners of parent amounted to ¥9,135 million, a 57.3% year-on-year increase.
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Explanation of Financial Position
(Assets, Liabilities, and Net Assets)
As of September 30, 2021, total assets increased by ¥2,245 million from the end of the previous fiscal year, to ¥377,405 million, due to an increase in non-current assets resulting from the acquisition of Won-Door Corporation, despite a decrease in inventories due mainly to the application of the accounting standard for revenue recognition. Liabilities decreased by ¥8,475 million from the end of the previous fiscal year, to ¥185,296 million, due mainly to decreases in accrued consumption taxes and income taxes payable. Net assets increased by ¥10,721 million from the end of the previous fiscal year, to ¥192,109 million, due mainly to increases in retained earnings and foreign currency translation adjustment.
As a result, the shareholders' equity ratio rose by 2.5 points from the end of the previous fiscal year, to 50.5%.
(Cash Flows)
As of September 30, 2021, cash and cash equivalents (hereinafter, "cash") decreased by ¥5,792 million from the end of the previous fiscal year, to ¥82,003 million. Cash flows by category during the six months ended September 30, 2021 are as follows.
Net cash provided by operating activities amounted to ¥9,636 million (net cash of ¥23,067 million was provided in the same period of the previous fiscal year), due mainly to an increase in working capital, in addition to the
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recording of profit before income taxes.
Net cash used in investing activities amounted to ¥12,589 million (net cash of ¥2,296 million was used in the same period of the previous fiscal year), due mainly to the purchase of shares of subsidiaries and purchase of property, plant and equipment and intangible assets.
Net cash used in financing activities amounted to ¥4,311 million (net cash of ¥977 million was used in the same period of the previous fiscal year), due mainly to dividends paid.
(3) Explanation of Consolidated Results Forecasts and Other Forward-looking Statements
The consolidated results forecasts for the fiscal year ending March 31, 2022 that were announced on May 14, 2021 were revised, as follows.
Compared to the forecasts at the beginning of the fiscal year, the net sales forecast has been revised to ¥457,000 million, an increase of ¥7,000 million. Profit forecasts have remained unchanged at ¥34,000 million for operating profit, ¥32,700 million for ordinary profit, and ¥21,600 million for profit attributable to owners of parent.
The forecast for net sales was revised upward in light of progress in passing on soaring prices of raw materials to sale prices, mainly at overseas subsidiaries. Meanwhile, although results for the first half of the fiscal year exceeded the forecasts at the beginning of the fiscal year, the forecasts for profits have remained unchanged, taking into account soaring prices of raw materials and the impact of supply chain issues.
The dividend forecasts for the current fiscal year have remained unchanged, at an annual dividend of ¥34.0 per share (¥17.0 per share for both interim and year-end dividends).
The above results forecasts were calculated based on the information available as of the date of the announcement. Actual results may differ from the forecast figures due to changes in the environment and business conditions.
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Sanwa Holdings Corporation published this content on 24 December 2021 and is solely responsible for the information contained therein. Distributed by Public, unedited and unaltered, on 24 December 2021 02:36:05 UTC.