FYE September 2021 Financial Report [Japan GAAP] (Consolidated)
November 8, 2021 | ||||
Company Name | SK-Electronics Co., Ltd. | Stock Exchange Listing: Tokyo Stock Exchange | ||
Stock Code | 6677 | URL http://www.sk-el.co.jp | ||
Representative | (Title) | President | Masanori Ishida | |
Contact | (Title) | Director | Yasuhisa Mukaida | (TEL) +81-75-441-2333 |
Scheduled Date for Annual Shareholders' Meeting: December 17, 2021 | Scheduled Date for Commencement of Dividend Payments: December 20, 2021 | |||
Scheduled Date for Submitting Annual Security Report: December 17, 2021 | ||||
Preparation of Summary Supplementary Explanatory Materials: Yes | ||||
Earnings Presentations: Yes (for institutional investors and analysts) |
(Rounded down to the nearest million yen)
1. Consolidated Results of Operations for FYE 9/2021 (October 1, 2020, through September 30, 2021)
- Consolidated Results of Operations (% indicates increase/decrease vs. prior year)
Net sales | EBITDA | Operating Income | Ordinary Income | Net income attributable to | |||||||||||
owners of the parent | |||||||||||||||
FYE 9/2021 | ¥ millions | % | ¥ millions | % | ¥ millions | % | ¥ millions | % | ¥ millions | % | |||||
20,440 | 7.0 | 4,733 | 13.2 | 1,664 | ― | 1,371 | ― | 1,072 | ― | ||||||
FYE 9/2020 | 19,104 | -25.9 | 4,183 | -52.5 | (659) | ― | (708) | ― | (971) | ― | |||||
(Note) Comprehensive Income | FYE 9/2021 2,100 million yen (―%) FYE 9/2020 -564 million yen (―%) | ||||
Net Income per Share | Diluted Net Income per Share | Return on Equity | Ordinary Income to Total | Operating Income to Net | |
Assets Ratio | Sales Ratio | ||||
Yen | Yen | % | % | % | |
FYE 9/2021 | 102.24 | ― | 4.6 | 4.2 | 8.1 |
FYE 9/2020 | (92.67) | ― | -4.3 | -2.2 | -3.5 |
(Reference) Equity in Earnings (Loss) of Unconsolidated Subsidiaries and Affiliates FYE 9/2021 ―million yen FYE 9/2020 ― million yen | ||||||
(Note) EBITDA = Operating Income + Depreciation | ||||||
(2) Consolidated Financial Position | ||||||
Total Assets | Net Assets | Equity Ratio | Net Assets per Share | |||
¥ millions | ¥ millions | % | Yen | |||
FYE 9/2021 | 32,884 | 24,379 | 74.1 | 2,324.40 | ||
FYE 9/2020 | 31,778 | 22,385 | 70.4 | 2,134.25 | ||
(Reference) Owned Capital FYE 9/2021 24.379 million yen FYE 9/2020 22,385 million yen | ||||||
(3) Consolidated Cash Flow | ||||||
Cash Flows from Operating Activities | Cash Flows from Investing Activities | Cash Flows from Financing Activities | Cash and Cash Equivalents at End of Year | |||
¥ millions | ¥ millions | ¥ millions | ¥ millions | |||
FYE 9/2021 | 3,664 | (4,297) | (1,224) | 8,843 | ||
FYE 9/2020 | 1,991 | (3,393) | 3,312 | 10,331 |
2. Dividends
Dividend per Share | Total Cash | Dividend | Dividends on | |||||
First Quarter | Second Quarter | Third Quarter | Fiscal Year End | Total | Dividends (FY) | Payout Ratio | Equity | |
(Consolidated) | (Consolidated) | |||||||
FYE 9/2020 | Yen | Yen | Yen | Yen | Yen | ¥ millions | % | % |
― | 0.00 | ― | 10.00 | 10.00 | 105 | ― | 0.5 | |
FYE 9/2021 | ― | 0.00 | ― | 20.00 | 20.00 | 211 | 19.7 | 0.9 |
FYE 9/2022 (Projected) | ― | 0.00 | ― | 22.00 | 22.00 | 21.2 |
3. Projected Consolidated Results of Operations for FYE 9/2022 (October 1, 2021, through September 30, 2022)
(% indicates increase/decrease compared to prior year or prior year interim period)
Net sales | EBITDA | Operating Income | Ordinary Income | Net income | Net Income per | |||||||||
attributable to owners | ||||||||||||||
of the parent | Share | |||||||||||||
¥ millions | % | ¥ millions | % | ¥ millions | % | ¥ millions | % | ¥ millions | % | Yen | ||||
Second Quarter (Cumulative) | 10,500 | 17.6 | 2,100 | 12.9 | 600 | 64.2 | 600 | 300.6 | 400 | 396.8 | 38.14 | |||
Full Year | 22,000 | 7.6 | 4,700 | -0.7 | 1,600 | -3.9 | 1,600 | 16.7 | 1,100 | 2.6 | 104.88 |
*Notes
- Changes in significant subsidiaries during the period (Changes in specified subsidiaries due to changes in the scope of consolidation): None
- Changes in accounting policies and changes in accounting estimates and retrospective restatements
<1> Changes in accounting policies in conjunction with revisions of accounting standards: None
<2> Changes in accounting policies other than those in <1>: Yes
<3> Changes in accounting estimates: Yes
<4> Retrospective restatements: None
Note: The Company changed depreciation methods beginning with the consolidated fiscal year under review, which qualifies as a case in which it would be difficult to differentiate changes in accounting policies from changes in accounting estimates. For more details, see 3. "Consolidated Financial Statements and Notes," (5) "Notes to the Consolidated Financial Statements" on page 11 of the attachments.
(3) Number of shares issued and outstanding (common stock) | ||||
<1> Number of shares issued and outstanding at the end of the period | FYE 9/2021 | 11,368,400 shares | FYE 9/2020 | 11,368,400 shares |
(including treasury stock) | ||||
FYE 9/2021 | 879,782 shares | FYE 9/2020 | 879,782 shares | |
<2> Number of shares of treasury stock at the end of the period | ||||
FYE 9/2021 | 10,488,618 shares | FYE 9/2020 | 10,487,169 shares | |
<3> Average number of shares during the period | ||||
(Note) The number of treasury shares deducted when calculating the number of shares of treasury stock at the end of FYE 9/2021 and the average number of shares for FYE 9/2021 includes shares held in trust for the director stock-based compensation system.
(Reference) Overview of Unconsolidated Results of Operations
1. Unconsolidated Results of Operations for FYE 9/2021 (October 1, 2020, through September 30, 2021)
- Unconsolidated Results of Operations (% indicates increase/decrease vs. prior year)
Net sales | EBITDA | Operating Income | Ordinary Income | Net Income | ||||||||||||||
¥ millions | % | ¥ millions | % | ¥ millions | % | ¥ millions | % | ¥ millions | % | |||||||||
FYE 9/2021 | 15,131 | 10.2 | 2,558 | 85.5 | 980 | ― | 1,460 | ― | 1,163 | ― | ||||||||
FYE 9/2020 | 13,732 | -34.1 | 1,379 | -77.6 | (1,478) | ― | (915) | ― | (1,052) | ― | ||||||||
Net Income per Share | Diluted Net Income per Share | |||||||||||||||||
Yen | Yen | |||||||||||||||||
FYE 9/2021 | 110.92 | ― | ||||||||||||||||
FYE 9/2020 | (100.37) | ― | ||||||||||||||||
(2) Unconsolidated Financial Position | ||||||||||||||||||
Total Assets | Net Assets | Equity Ratio | Net Assets per Share | |||||||||||||||
¥ millions | ¥ millions | % | Yen | |||||||||||||||
FYE 9/2021 | 26,579 | 18,736 | 70.5 | 1,786.32 | ||||||||||||||
FYE 9/2020 | 26,428 | 17,555 | 66.4 | 1,673.73 |
(Reference) Owned Capital FYE 9/2021 18,736 million yen FYE 9/2020 17,555 million yen
2. Projected Unconsolidated Results of Operations for FYE 9/2022 (October 1, 2021, through September 30, 2022)
(% indicates increase/decrease compared to prior year or prior year interim period)
Net sales | EBITDA | Operating Income | Ordinary Income | Net Income | Net Income per | |||||||||
Share | ||||||||||||||
¥ millions | % | ¥ millions | % | ¥ millions | % | ¥ millions | % | ¥ millions | % | Yen | ||||
Second Quarter (Cumulative) | 7,400 | 13.5 | 1,100 | 21.0 | 250 | 82.7 | 450 | -1.1 | 350 | 7.5 | 33.37 | |||
Full Year | 15,700 | 3.8 | 2,650 | 3.6 | 750 | -23.5 | 950 | -34.9 | 700 | -39.8 | 66.74 |
*This financial report is exempt from audit procedures by either a certified public accountant or an audit firm.
*Explanation concerning the appropriate use of the projected operating results and other special remarks
The forward-looking statements, including the operating results forecasts, contained in these materials are based on information currently available to the Company and on certain assumptions deemed reasonable. Actual business results may differ substantially because of a number of factors. Please see page 3 section
1. "Qualitative Information on Consolidated Operating Results for FYE September 2021," (4) "Outlook for Consolidated FYE September 2022" concerning the assumptions used as the basis for the projected operating results and matters to note before using the projected operating results.
SK-Electronics Co., Ltd. (6677) FYE September 2021 Financial Report
- Attachments Table of Contents
1. Qualitative Information on Consolidated Operating Results for FYE September 2021............................................................ | 2 | |
(1) | Qualitative Explanation on Consolidated Results of Operations....................................................................................... | 2 |
(2) | Qualitative Explanation on Consolidated Financial Position ............................................................................................ | 2 |
(3) | Qualitative Explanation on Cash Flows ............................................................................................................................ | 2 |
(4) | Outlook for Consolidated FYE September 2021................................................................................................................ | 3 |
(5) | Basic Policy regarding Profit Distribution and Dividends for the Consolidated Fiscal Year under Review and | |
Subsequent Period ................................................................................................................................................................... | 3 | |
2. Basic Policy regarding Selection of Accounting Standards...................................................................................................... | 3 | |
3. Consolidated Financial Statements and Notes .......................................................................................................................... | 4 | |
(1) | Consolidated Balance Sheets............................................................................................................................................. | 4 |
(2) | Consolidated Statements of Income and Consolidated Statements of Comprehensive Income ......................................... | 6 |
(3) | Consolidated Statements of Changes in Stockholders' Equity.......................................................................................... | 8 |
(4) | Consolidated Statements of Cash Flows .......................................................................................................................... | 10 |
(5) | Notes to the Consolidated Financial Statements .............................................................................................................. | 11 |
(Notes Relating to the Assumptions of Going Concerns) ................................................................................................. | 11 | |
(Changes in Accounting Policies that are Difficult to Distinguish from Changes in Accounting Estimates) ................... | 11 | |
(Additional Information)................................................................................................................................................... | 11 | |
(Segment Information)...................................................................................................................................................... | 11 | |
(Per Share Information) .................................................................................................................................................... | 12 | |
(Material Events after the Close of the Consolidated Fiscal Year) ................................................................................... | 12 | |
4. Supplemental Information ...................................................................................................................................................... | 13 |
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SK-Electronics Co., Ltd. (6677) FYE September 2021 Financial Report
1. Qualitative Information on Consolidated Operating Results for FYE September 2021
(1) Qualitative Explanation on Consolidated Results of Operations
In the consolidated FYE September 2021, although there were signs of a recovery in economic activity as the number of COVID-19 cases decreased because of rising vaccination rates and other factors, even as states of emergency and other measures to stop the spread of the virus were implemented intermittently, the future outlook for the domestic and international economy remained uncertain because of the impact of highly infectious variants of the virus and other factors.
In the flat-panel display industry, demand for photomasks for OLED panel use increased in response to active development of OLED panels for 5G and other smartphone applications, in addition to the expansion of applications to laptop computers and tablets. Although demand for LCD panels slowed, centered on television applications, as the trend toward consumers spending more time at home showed signs of ending, panel manufacturers continued mass production. As a result, LCD panel prices, which had continued to rise since June 2020, began to fall in the fourth quarter. However, the business performance of panel manufacturers was favorable, since they had continued mass production over a lengthy period.
Under such conditions, the SK-Electronics Group strived actively to capture demand for photomasks for OLEDs for use in smartphones, laptops, and tablets. As a result, in the consolidated fiscal year under review the Group posted consolidated net sales of ¥20,440 million, an increase of 7.0% year-on-year, operating income of ¥1,664 million (versus an operating loss of ¥659 million in the previous fiscal year), ordinary income of ¥1,371 million (versus an ordinary loss of ¥708 million in the previous fiscal year), and net income attributable to owners of the parent of ¥1,072 million (versus net loss attributable to owners of the parent of ¥971 million in the previous fiscal year).
(2) Qualitative Explanation on Consolidated Financial Position
At the end of consolidated FYE September 2021, total assets came to ¥32,884 million, an increase of ¥1,105 million versus the end of the prior consolidated fiscal year. This mainly reflects increases in notes and accounts receivable - trade and property, plant, and equipment that offset the decreases in cash and deposits and in raw materials and supplies.
Total liabilities stood at ¥8,505 million, a decrease of ¥888 million versus the end of the prior consolidated fiscal year. This primarily reflects declines in other current liabilities and long-term loans payable, although notes and accounts payable - trade and income taxes payable both increased.
Total net assets were ¥24,379 million, an increase of ¥1,994 million versus the end of the prior consolidated fiscal year. This was due mainly to increases in retained earnings and in foreign currency translation adjustments.
(3) Qualitative Explanation on Cash Flows
Cash and cash equivalents ("cash") at the end of the consolidated fiscal year under review increased by ¥1,487 million compared to the end of the prior consolidated fiscal year to ¥8,843 million.
(Cash Flows from Operating Activities)
Capital stemming from operating activities in consolidated FYE September 2021 totaled ¥3,664 million, an increase versus ¥1,991 million a year earlier. This is primarily attributable to income before income taxes of ¥1,369 million, depreciation of ¥3,068 million, an increase in notes and accounts receivable - trade of ¥1,705 million, and a decrease of inventories of ¥521 million.
(Cash Flows from Investing Activities)
Cash flows used in investing activities in consolidated FYE September 2021 totaled ¥4,297 million, a decline versus ¥3,393 million a year earlier. This mainly reflects ¥4,273 million used in the purchase of property, plant, and equipment.
2
SK-Electronics Co., Ltd. (6677) FYE September 2021 Financial Report
(Cash Flows from Financing Activities)
Cash used in financing activities in consolidated FYE September 2021 amounted to ¥1,224 million (an increase versus ¥3,312 million a year earlier). This mainly reflects proceeds from repayments of long-term loans payable of ¥1,100 million.
(Reference) Cash Flows Indicator Trends
FYE 9/2017 | FYE 9/2018 | FYE 9/2019 | FYE 9/2020 | FYE 9/2021 | |
Equity Ratio (%) | 67.8 | 67.3 | 74.2 | 70.4 | 74.1 |
Market value equity ratio (%) | 55.6 | 81.1 | 63.1 | 35.6 | 30.7 |
Interest-bearing liabilities to | 0.3 | 0.2 | 0.1 | 2.2 | 0.9 |
cash flow (annual) | |||||
Interest coverage ratio (times) | 502.4 | 659.9 | 1,657.9 | 464.2 | 193.4 |
*Equity ratio: Owned capital/Total assets
Market value equity ratio: Market capitalization/Total assets
Interest-bearing liabilities to cash flow: Interest-bearing liabilities/Cash flows
Interest coverage ratio: Cash flows/Interest payments
(Notes)
- The above indicators have been calculated using consolidated financial figures.
- Market capitalization is calculated by multiplying the closing share price at year-end by total shares issued and outstanding at year-end (excluding treasury stock).
- Cash flows used are Cash Flows from Operating Activities.
- Interest-bearingliabilities are all consolidated liabilities from the balance sheet for which interest is being paid.
- Interest payments are the amount of interest paid from the Statements of Cash Flows.
- Outlook for Consolidated FYE September 2021
A trend is apparent in the flat-panel display industry toward applications of OLED panels expanding to include use in devices, such as laptop computers, tablets, monitors, and onboard vehicle display panels, while development of OLED panels for smartphone use progresses in response to demand for increasingly advanced functions, such as higher resolution and foldable displays. In addition, mass production of QD-OLED panels has begun, and future development activities will include expansion of screen sizes. Furthermore, capital investment in panel plants is planned, centered on the markets of South Korea and China. The Group plans to capture demand for photomasks related to such panel development.
In consolidated FYE September 2022, we forecast consolidated net sales of ¥22,000 million, an increase of 7.6% year-on-year, operating income of ¥1,600 million, a decrease of 3.9%, ordinary income of ¥1,600 million, an increase of 16.7%, and net income attributable to owners of the parent of ¥1,100 million, an increase of 2.6%.
- Basic Policy regarding Profit Distribution and Dividends for the Consolidated Fiscal Year under Review and Subsequent Period
The SK-Electronics Group believes that sharing Group profits with our shareholders is one of our most important management concerns, and our basic policy is to implement consistent profit distributions to our shareholders in the proper consideration of changes in the operating results of the Group. We aim to improve our earnings performance moving forward by fortifying our management structure in preparation for business development. In the medium/long term, we target a consolidated dividend payout ratio of 20%-plus having comprehensively taken into accounts factors, including earnings in each respective fiscal year, financial position trends, and our medium-term investment plan.
In this period, we plan to pay a dividend of ¥20 per share as our fiscal year-end dividend. In FYE September 2021, in line with the policy above, our distribution from retained earnings is expected to be ¥22 per share.
2. Basic Policy regarding Selection of Accounting Standards
The SK-Electronics Group prepares consolidated financial statements in accordance with generally accepted accounting principles in Japan. There are no scheduled changes in accounting standards for the time being. That being said, the SK- Electronics Group plans to adopt the International Financial Reporting Standards (IFRS) should the need arise to adequately respond to various circumstances in Japan and abroad.
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SK-Electronics Co. Ltd. published this content on 07 November 2021 and is solely responsible for the information contained therein. Distributed by Public, unedited and unaltered, on 17 November 2021 01:06:08 UTC.