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.
Consolidated Financial Results for the First Half of Fiscal Year Ending March 31, 2024
(Six Months Ended September 30, 2023) (Based on J-GAAP)
November 1, 2023 | |||
Company name: | T-Gaia Corporation | Listing: | Tokyo Stock Exchange |
Stock code: | 3738 | URL: | https://www.t-gaia.co.jp/english/ir/ |
Representative: | Masato Ishida, President and Representative Director | ||
Contact: | Kaoru Hayashi, Senior Executive Officer & General Manager of Corporate Planning & Strategy Dept. |
Tel: +81-3-6409-1010
Scheduled date of filing Quarterly Securities Report: November 2, 2023
Scheduled commencement date of dividend payout: December 5, 2023
Quarterly financial results supplementary explanatory documents: Yes
Quarterly financial results presentation: Yes (for institutional investors & analysts)
(All amounts are rounded down to the nearest million yen)
1. Consolidated Financial Results for the First Half of Fiscal Year Ending March 31, 2024 (April 1, 2023 - September
30, 2023)
(1) Consolidated results of operations (six months)
Net sales | Operating profit | Ordinary profit | Profit attributable to | |||||||||||
owners of parent | ||||||||||||||
1H FY 2024 | Million yen | % | Million yen | % | Million yen | % | Million yen | % | ||||||
202,850 | (4.7) | 2,574 | (29.1) | 4,356 | (22.9) | 2,840 | (31.4) | |||||||
1H FY 2023 | 212,828 | (3.4) | 3,632 | (25.8) | 5,650 | (24.0) | 4,140 | (23.3) | ||||||
Note: Comprehensive | income (million | yen): | 1H FY | 2024: 2,919 / | [(33.5)%] 1H | FY 2023: 4,393 / | [(19.0)%] | |||||||
Earnings per | Diluted earnings | |||||||||||||
share | per share | |||||||||||||
1H FY 2024 | Yen | Yen | ||||||||||||
50.91 | - | |||||||||||||
1H FY 2023 | 74.23 | - | ||||||||||||
(2) Consolidated financial position | ||||||||||||||
Total assets | Net assets | Equity ratio | ||||||||||||
1H FY 2024 | Million yen | Million yen | % | |||||||||||
240,520 | 75,824 | 31.3 | ||||||||||||
FY 2023 | 246,068 | 74,887 | 30.2 | |||||||||||
Reference: Shareholders' | equity (million yen): | 1H FY | 2024: 75,367 | FY 2023: | 74,385 |
2. Dividends
Annual dividends | |||||
1Q-end | Interim | 3Q-end | Year-end | ||
FY 2023 | Yen | Yen | Yen | Yen | |
- | 37.50 | - | 37.50 | ||
FY 2024 | - | 37.50 | |||
FY 2024 | - | 37.50 | |||
(forecasts) | |||||
Annual
Yen 75.00
75.00
Note: Revisions to the dividend forecast most recently announced: None
3. Consolidated Forecasts for the Fiscal Year Ending March 31, 2024 (April 1, 2023 - March 31, 2024)
(Percentages represent year-over-year changes) | |||||||||||
Net sales | Operating profit | Ordinary profit | Profit attributable to | Earnings per | |||||||
owners of parent | share | ||||||||||
Million yen | % | Million yen | % | Million yen | % | Million yen | % | Yen | |||
Full year | 459,500 | 1.3 | 8,200 | 17.2 | 12,400 | 6.5 | 8,000 | 0.8 | 143.39 | ||
Note: Revisions to the financial forecast most recently announced: None
Notes
(1) Changes in significant subsidiaries during the period (six months) under review (Changes in subsidiaries accompanying change in the scope of consolidation): Yes
Newly included: | 1 company (T-Gaia Asia Pacific Pte. Ltd.) |
- Application of accounting procedures specific to creation of quarterly consolidated financial statements: None
- Changes in accounting principles, estimates and restatements
- Changes in accounting principles caused by revision of accounting standards, etc.: None
- Changes in accounting principles other than those mentioned above: None
- Changes in accounting estimates: None
- Restatement: None
- Number of shares issued and outstanding (common shares)
- Number of issued shares (including treasury shares) at the end of the period
- Number of treasury shares at the end of the period
- Average number of shares outstanding during the period (six months)
1H FY 2024 | 56,074,000 shares | FY 2023 | 56,074,000 shares |
1H FY 2024 | 253,709 shares | FY 2023 | 282,309 shares |
1H FY 2024 | 55,802,943 shares | 1H FY 2023 | 55,775,599 shares |
- Quarterly financial results reports are exempt from quarterly reviews conducted by certified public accountants or an audit corporation.
- Cautionary statement with respect to forward-looking statements
(Disclaimer on forward-looking statements, etc.)
These materials contain forward-looking information including earnings projections based on information currently available to the Company and certain assumptions considered reasonable in the judgment of the Company. Nothing contained in these materials is meant to suggest that the Company promises to attain the said projections. Moreover, due to various factors, actual results may materially differ from projections.
(How to obtain quarterly supplementary documents on financial results)
The Company is scheduled to hold an online financial results presentation meeting for institutional investors and analysts on November 1, 2023 (Wednesday). The Company plans to post the documents used in this presentation on its website on the same day the meeting is held.
T-Gaia Corporation (3738) / Consolidated Financial Results for the First Half of Fiscal Year Ending March 31, 2024 (Six Months Ended September 30, 2023) (Based on J-GAAP)
- Attachment: Table of Contents
1. Qualitative Information Concerning the First Half Financial Results | 2 | |
(1) | Explanation of operating performance | 2 |
(2) | Explanation of financial position | 4 |
(3) | Explanation of forward-looking information including the consolidated financial forecasts | 4 |
2. Quarterly Consolidated Financial Statements and Notes | 5 | |
(1) | Quarterly consolidated balance sheets | 5 |
(2) | Quarterly consolidated statements of income and quarterly consolidated statements of comprehensive income | 6 |
(Quarterly consolidated statements of income) | ||
(Consolidated six months period) | 6 | |
(Quarterly consolidated statements of comprehensive income) | ||
(Consolidated six months period) | 6 | |
(3) | Quarterly consolidated statements of cash flows | 7 |
(4) | Notes to quarterly consolidated financial statements | 8 |
(Notes on the going-concern assumption) | 8 | |
(Notes on significant changes in shareholders' equity) | 8 | |
(Segment information) | 8 |
- 1 -
T-Gaia Corporation (3738) / Consolidated Financial Results for the First Half of Fiscal Year Ending March 31, 2024 (Six Months Ended September 30, 2023) (Based on J-GAAP)
1. Qualitative Information Concerning the First Half Financial Results
- Explanation of operating performance
In the period under review (April to September 2023), amid the continuation of global monetary tightening, etc., the downturn in overseas business conditions has been a downward risk on the business conditions in Japan. Looking ahead, careful attention needs to be paid to the impacts of rises in commodity prices, fluctuations in the financial and capital markets, etc.
In the market for mobile phone handsets, which is the main business field of the Group (the Company, its consolidated subsidiaries, and its equity-method affiliates), the replacement cycle of mobile phone handsets is lengthening due to soaring smartphone prices and other factors. In addition, some telecommunications carriers have been optimizing carrier shops. Meanwhile, in telecommunications services provided by telecommunications carriers, progress has been made on the shift to 5G. Smartphones are more than just communication devices: they play an important role in realizing a smart life for each and every customer by linking with various services such as finance, payment, and entertainment. In this way, great change is underway in the role played by mobile phone distributors, including the Company, and the competitive environment.
Under this business environment, the Group steadily worked toward the realization of the TG Universe (the ecosystem within T- Gaia), the Group-wide strategy in our medium-term management plan (FY2022-FY2024), and initiatives to achieve the TG Material Issues (eight priority issues). With the aim of transforming the well-balanced business portfolio so that it is not dependent on the Consumer Mobile Business Segment, we are actively carrying out growth investments, particularly in the Enterprise Solutions Business Segment and Smart Life & QUO Card Business Segment.
We also set up a project organization in April 2023 to transform our shops, mainly carrier shops, to adopt a customer-centric business model. This is a foothold to promote horizontal collaboration across all businesses, under which, we are working on "provision of smart life-related services at shops," "DX support for small and medium-sized businesses," and "collaboration with local governments." Both our consumer and enterprise client businesses are shifting focus from a product-out approach, or product sales-oriented approach, to a market-in approach, in which we provide services in line with customer requests, aiming to expand revenue.
Consolidated business results for the period under review marked net sales of 202,850 million yen (-4.7% compared with the year- earlier period), with operating profit of 2,574 million yen (-29.1%). Ordinary profit marked 4,356 million yen (-22.9%) and profit attributable to owners of parent posted 2,840 million yen (-31.4%).
The main reasons for the decrease in both sales and profit were a decline in commission income due to a fall in the number of contracts for mobile phones such as smartphones (below, "mobile phone contracts") as well as increases in both temporary costs for invoice compliance and depreciation associated with IT system investment.
Results by business segment for the period under review are described below.
Consumer | Enterprise | Smart Life & | ||
Solutions | QUO Card | |||
Mobile Business | ||||
Business | Business | |||
Segment | ||||
Segment | Segment | |||
Net sales | 168,667 | 19,388 | 14,776 | |
(4.8%) | 7.2% | (16.1%) | ||
Profit attributable to | 1,382 | 331 | 1,105 | |
owners of parent | (13.9%) | (72.4%) | (11.8%) | |
Supplementary | 2,414 | 585 | (281) | |
information - | ||||
11.3% | (54.2%) | - | ||
Operating profit (loss) | ||||
* Percentages represent | year-over-year changes |
Others
18
(49.6%)
21
(73.7%)
(143)
-
(Millions of yen)
Consolidated
financial results
202,850
(4.7%)
2,840
(31.4%)
2,574
(29.1%)
- 2 -
T-Gaia Corporation (3738) / Consolidated Financial Results for the First Half of Fiscal Year Ending March 31, 2024 (Six Months Ended September 30, 2023) (Based on J-GAAP)
[Consumer Mobile Business Segment]
The Consumer Mobile Business Segment is engaged in intermediary services specializing in contracts for telecommunications services, and other types of contracts provided by each telecommunications carrier, as well as the sales of smartphones, etc. For the Group's shops across Japan, we are aiming to realize shops that are "regional ICT hubs" rather than mere "points of sale," and which provide impressive experience to customers through high quality services and proposals with utility value that meets customer requirements.
The number of mobile phone contracts in the Consumer Mobile Business Segment was 1,441,000 (a decrease of 9.2% compared to the same period of the previous fiscal year) due to the lengthening replacement cycle of mobile phones caused by soaring smartphone prices and other factors. Meanwhile, some telecommunications carriers released new rate plans in the second quarter of the current fiscal year, which has helped bring about a recovery trend in the number of customer visits to our directly managed shops relative to the number prior to release of such rate plans.
We have introduced Smart Online Support at our carrier shops, which provides remote support for initial setup and instructions on smartphone use, to make our operations more efficient and increase customer satisfaction through the provision of support tailored to each customer by specialist staff. Also, in addition to consolidating or abolishing shops throughout the previous fiscal year, we have been more effective in providing on-site sales services at shopping malls and for remote locations where there are no local carrier shops, thereby controlling selling, general and administrative expenses.
Sales of original products, especially glass coatings and security products, remained solid, which contributed to the increase in operating profit.
As a result, net sales marked 168,667 million yen (-4.8% compared with the year-earlier period), with profit attributable to owners of parent of 1,382 million yen (-13.9%). The decrease in profit attributable to owners of parent is attributable to factors that include effects of having posted extraordinary income in the same period of the previous fiscal year.
[Enterprise Solutions Business Segment]
The Enterprise Solutions Business Segment is engaged in the sales of smartphones, etc. to enterprise clients, the provision of solution services related to devices and network management services, etc., and sales and intermediary services specializing in optical communication line service contracts for enterprise clients and individual customers. The Group is expanding products and services to create a one-stop channel for meeting customers' requirements through its Life Cycle Management (LCM) business which revolves around administrative and support services for device life cycles spanning from procurement, propositions, and introduction support for smart devices including PCs, to building Wi-Fi environment, maintenance, operations, and updating services.
The number of mobile phone contracts in the Enterprise Solutions Business Segment was 152,000 (a decrease of 2.8% compared to the same period of the previous fiscal year). Moreover, whereas net sales and commission income also decreased due in part to languishing sales particularly with respect to smart devices, we have been focusing on expanding sales channels while seeking to enhance our sales capabilities in part by engaging in human resource development on a Group-wide basis.
We expanded products and services in the LCM business and the number of management IDs for network administrative services (movino star), helpdesks, and the like surpassed the same period of the previous fiscal year. In addition to proposing new business areas such as proposing the building, operation and maintenance of networks that use edge functions, we continue to focus on local government sales against the background of the "Vision for a Digital Garden City Nation" advocated by the Japanese government. On the other hand, depreciation and other expenses increased from the same period of the previous fiscal year due to the enhancement of sales system functions.
In products related to fixed-line telecommunications, despite a steadily increasing cumulative number of lines owned by the Company's own "TG Hikari" fiber-optics access service, such gains were not sufficient to compensate for the decreases in net sales and commission income that were due to factors such as languishing sales.
As a result, net sales marked 19,388 million yen (+7.2% compared with the year-earlier period), with profit attributable to owners of parent of 331 million yen (-72.4%).
[Smart Life & QUO Card Business Segment]
The Smart Life & QUO Card Business Segment is mainly engaged in sales of PIN (prepaid codes), gift cards, and smartphone accessories through major nationwide convenience store chains, as well as ESG-related businesses such as renewable energy, healthcare, ICT schools for children, and e-sports. It also includes the Company's consolidated subsidiary QUO CARD Co., Ltd. which is tasked with the issuance and settlement of "QUO CARD" and "QUO CARD Pay" and the sales and repair/maintenance of card-handling equipment, etc.
In the Smart Life Business, PIN and gift card transaction volumes were down compared with the same period of the previous fiscal year. The demand for a variety of digital content, including games, music, and video streaming, is gradually declining along with changing lifestyles. Sales in the wholesale of smartphone accessories mainly to convenience stores were robust, and sales of wearable device "Fitbit" were also strong.
We are also working on new businesses, including the launch of VOYAGEESIM, an eSIM data service for travelers to Europe, in April 2023 and to Taiwan and Southeast Asia, in August 2023.
In the QUO Card Business, the amount of issuance for QUO CARD and QUO CARD Pay decreased compared to the same period of the previous fiscal year, primarily due to effects of significant initiatives undertaken for local governments during the same period of the previous fiscal year. Since July 2023, we have been striving to expand our network of member stores in part by adding major convenience stores as QUO CARD Pay member stores. Moreover, we have added QUO CARD Pay to our selection of benefits for the Company's shareholders on the record date of September 30, 2023, with the aims of promoting more widespread use of the service enhancing convenience.
As a result, net sales marked 14,776 million yen (-16.1% compared with the year-earlier period), with profit attributable to owners of parent of 1,105 million yen (-11.8%).
- 3 -
T-Gaia Corporation (3738) / Consolidated Financial Results for the First Half of Fiscal Year Ending March 31, 2024 (Six Months Ended September 30, 2023) (Based on J-GAAP)
-
Explanation of financial position (Assets)
Current assets at the end of the period under review were 196,277 million yen, which was 4,143 million yen lower than at the end of the previous fiscal year. This was mainly due to a 1,697 million yen decrease in notes and accounts receivable - trade and a 2,904 million yen decrease in inventories. Non-current assets at the end of the period under review were 44,242 million yen, which was 1,405 million yen lower than at the end of the previous fiscal year. This was mainly due to a 1,270 million yen decrease in investment securities due to change in the scope of consolidation.
As a result, total assets posted 240,520 million yen, which was 5,548 million yen lower than at the end of the previous fiscal year.
(Liabilities)
Current liabilities at the end of the period under review were 161,259 million yen, which was 4,940 million yen lower than at the end of the previous fiscal year. This was mainly due to a 3,002 million yen decrease in card deposits, a 1,516 million yen decrease in accounts payable - trade and a 1,257 million yen decrease in accounts payable - other. Non-current liabilities at the end of the period under review were 3,436 million yen, which was 1,545 million yen lower than at the end of the previous fiscal year.
As a result, total liabilities posted 164,695 million yen, which was 6,485 million yen lower than at the end of the previous fiscal year.
(Net assets)
Net assets at the end of the period under review were 75,824 million yen, which was 936 million yen higher than at the end of the previous fiscal year. This was mainly due to 2,840 million yen recognized in profit attributable to owners of parent and 2,097 million yen in payment of dividends of surplus. - Explanation of forward-looking information including the consolidated financial forecasts
There is no change to the full-year consolidated financial forecasts announced on May 1, 2023.
Six months (April to September 2023) net sales represent 44.1% of the full-year estimate, with percentages for operating profit, ordinary profit, and profit attributable to owners of parent at 31.4%, 35.1%, and 35.5%, respectively.
- 4 -
T-Gaia Corporation (3738) / Consolidated Financial Results for the First Half of Fiscal Year Ending March 31, 2024 (Six Months Ended September 30, 2023) (Based on J-GAAP)
2. Quarterly Consolidated Financial Statements and Notes
- Quarterly consolidated balance sheets
(Millions of yen) | |||
FY 2023 | 2Q FY 2024 | ||
(As of March 31, 2023) | (As of September 30, 2023) | ||
Assets | |||
Current assets | |||
Cash and deposits | 47,652 | 47,952 | |
Notes and accounts receivable - trade | 19,687 | 17,989 | |
Inventories | 25,855 | 22,951 | |
Accounts receivable - other | 11,258 | 9,611 | |
Guarantee deposits | 93,219 | 95,280 | |
Other | 2,765 | 2,509 | |
Allowance for doubtful accounts | (18) | (16) | |
Total current assets | 200,420 | 196,277 | |
Non-current assets | |||
Property, plant and equipment | 4,227 | 4,641 | |
Intangible assets | |||
Goodwill | 16,502 | 16,657 | |
Contract-related intangible assets | 1,193 | 1,159 | |
Other | 5,484 | 5,519 | |
Total intangible assets | 23,179 | 23,336 | |
Investments and other assets | 18,240 | 16,265 | |
Total non-current assets | 45,648 | 44,242 | |
Total assets | 246,068 | 240,520 |
Liabilities
Current liabilities
Accounts payable - trade
Current portion of long-term borrowings
Accounts payable - other
Income taxes payable
Refund liability
Provision for bonuses
Card deposits
Other
Total current liabilities
Non-current liabilities
Years of service gratuity reserve provisions
Retirement benefit liability
Asset retirement obligations
Other
Total non-current liabilities
Total liabilities
Net assets
Shareholders' equity
Share capital
Capital surplus
Retained earnings
Treasury shares
Total shareholders' equity
Accumulated other comprehensive income
Valuation difference on available-for-sale securities Foreign currency translation adjustment
10,104 | 8,587 |
3,751 | 3,754 |
16,723 | 15,465 |
971 | 1,140 |
87 | 73 |
2,486 | 2,680 |
131,028 | 128,026 |
1,046 | 1,530 |
166,199 | 161,259 |
187 | 188 |
369 | 554 |
1,991 | 2,092 |
2,432 | 601 |
4,981 | 3,436 |
171,181 | 164,695 |
3,154 | 3,154 |
5,141 | 5,165 |
65,892 | 66,641 |
(260) | (233) |
73,927 | 74,726 |
318 | 334 |
139 | 306 |
Total accumulated other comprehensive income | 458 | 641 | |
Non-controlling interests | 501 | 456 | |
Total net assets | 74,887 | 75,824 | |
Total liabilities and net assets | 246,068 | 240,520 |
- 5 -
T-Gaia Corporation (3738) / Consolidated Financial Results for the First Half of Fiscal Year Ending March 31, 2024 (Six Months Ended September 30, 2023) (Based on J-GAAP)
-
Quarterly consolidated statements of income and quarterly consolidated statements of comprehensive income (Quarterly consolidated statements of income)
(Consolidated six months period)
(Millions of yen) | ||||
1H FY 2023 | 1H FY 2024 | |||
(From April 1, 2022 to | (From April 1, 2023 to | |||
September 30, 2022) | September 30, 2023) | |||
Net sales | 212,828 | 202,850 | ||
Cost of sales | 178,209 | 167,044 | ||
Gross profit | 34,618 | 35,806 | ||
Selling, general and administrative expenses | 30,985 | 33,231 | ||
Operating profit | 3,632 | 2,574 | ||
Non-operating income | ||||
Delay damages income | 360 | - | ||
Hoard profit of prepaid card | 1,724 | 1,778 | ||
Other | 150 | 141 | ||
Total non-operating income | 2,235 | 1,920 | ||
Non-operating expenses | ||||
Share of loss of entities accounted for using equity | 8 | 45 | ||
method | ||||
Delay damages | 171 | - | ||
Other | 38 | 93 | ||
Total non-operating expenses | 218 | 138 | ||
Ordinary profit | 5,650 | 4,356 | ||
Extraordinary income | ||||
Gain on sale of investment securities | - | 163 | ||
Gain on bargain purchase | 244 | - | ||
Gain on step acquisitions | 305 | - | ||
Other | 19 | 9 | ||
Total extraordinary income | 570 | 173 | ||
Extraordinary losses | ||||
Loss on retirement of non-current assets | 21 | 49 | ||
Other | 0 | - | ||
Total extraordinary losses | 22 | 49 | ||
Profit before income taxes | 6,197 | 4,480 | ||
Income taxes - current | 1,594 | 1,029 | ||
Income taxes - deferred | 496 | 714 | ||
Total income taxes | 2,091 | 1,744 | ||
Profit | 4,106 | 2,736 | ||
Loss attributable to non-controlling interests | (33) | (104) | ||
Profit attributable to owners of parent | 4,140 | 2,840 | ||
(Quarterly consolidated statements of comprehensive income) | ||||
(Consolidated six months period) | (Millions of yen) | |||
1H FY 2023 | 1H FY 2024 | |||
(From April 1, 2022 to | (From April 1, 2023 to | |||
September 30, 2022) | September 30, 2023) | |||
Profit | 4,106 | 2,736 | ||
Other comprehensive income | ||||
Valuation difference on available-for-sale securities | 142 | 16 | ||
Foreign currency translation adjustment | 133 | 164 | ||
Share of other comprehensive income of entities | 10 | 2 | ||
accounted for using equity method | ||||
Total other comprehensive income | 287 | 183 | ||
Comprehensive income | 4,393 | 2,919 | ||
Comprehensive income attributable to | ||||
Comprehensive income attributable to owners of parent | 4,427 | 2,987 | ||
Comprehensive income attributable to non-controlling | (33) | (67) | ||
interests | ||||
- 6 -
T-Gaia Corporation (3738) / Consolidated Financial Results for the First Half of Fiscal Year Ending March 31, 2024 (Six Months Ended September 30, 2023) (Based on J-GAAP)
(3) Quarterly consolidated statements of cash flows
(Millions of yen) | ||
1H FY 2023 | 1H FY 2024 | |
(From April 1, 2022 to | (From April 1, 2023 to | |
September 30, 2022) | September 30, 2023) | |
Cash flows from operating activities | ||
Profit before income taxes | 6,197 | 4,480 |
Depreciation | 1,143 | 1,332 |
Amortization of goodwill | 654 | 655 |
Increase (decrease) in refund liability | 100 | (13) |
Increase (decrease) in provision for bonuses | (5) | 83 |
Increase (decrease) in retirement benefit liability | 39 | (3) |
Increase (decrease) in years of service gratuity reserve | 16 | 1 |
provisions | ||
Delay damages income | (360) | - |
Delay damages | 171 | - |
Share of loss (profit) of entities accounted for using equity | 8 | 45 |
method | ||
Loss (gain) on sale of investment securities | - | (163) |
Loss (gain) on step acquisitions | (305) | - |
Gain on bargain purchase | (244) | - |
Decrease (increase) in trade receivables | 5,595 | 2,904 |
Decrease (increase) in accounts receivable - other | 928 | 1,848 |
Decrease (increase) in inventories | 237 | 2,991 |
Decrease (increase) in guarantee deposits | (5,470) | (2,710) |
Increase (decrease) in trade payables | (2,333) | (2,214) |
Increase (decrease) in accounts payable - other | 869 | (1,216) |
Increase (decrease) in card deposits | 9,663 | (3,002) |
Other, net | (547) | 866 |
Subtotal | 16,358 | 5,886 |
Interest and dividends received | 132 | 12 |
Delay damages received, net | 189 | - |
Interest paid | (25) | (11) |
Income taxes refund (paid) | (856) | (1,069) |
Net cash provided by (used in) operating activities | 15,798 | 4,818 |
Cash flows from investing activities | ||
Purchase of property, plant and equipment | (228) | (1,285) |
Purchase of intangible assets | (746) | (901) |
Proceeds from sale of investment securities | - | 171 |
Purchase of investment securities | (129) | (50) |
Purchase of shares of subsidiaries resulting in change in | (375) | - |
scope of consolidation | ||
Proceeds from purchase of shares of subsidiaries resulting in | 230 | - |
change in scope of consolidation | ||
Payments of guarantee deposits | (654) | (7) |
Proceeds from refund of guarantee deposits | 5 | 657 |
Other, net | 79 | 75 |
Net cash provided by (used in) investing activities | (1,819) | (1,339) |
Cash flows from financing activities | ||
Repayments of long-term borrowings | (10,875) | (1,959) |
Dividends paid | (2,091) | (2,092) |
Dividends paid to non-controlling interests | - | (5) |
Proceeds from sale and leaseback transactions | - | 45 |
Repayments of lease liabilities | (1) | (13) |
Other, net | - | (5) |
Net cash provided by (used in) financing activities | (12,968) | (4,029) |
Effect of exchange rate change on cash and cash equivalents | 51 | 61 |
Net increase (decrease) in cash and cash equivalents | 1,062 | (489) |
Cash and cash equivalents at beginning of period
Increase in cash and cash equivalents resulting from inclusion of subsidiaries in consolidation
Cash and cash equivalents at end of period
56,16245,652
172789
57,39745,952
- 7 -
T-Gaia Corporation (3738) / Consolidated Financial Results for the First Half of Fiscal Year Ending March 31, 2024 (Six Months Ended September 30, 2023) (Based on J-GAAP)
-
Notes to quarterly consolidated financial statements (Notes on the going-concern assumption)
Not applicable.
(Notes on significant changes in shareholders' equity) Not applicable.
(Segment information)
I 1H FY 2023 (from April 1, 2022 to September 30, 2022)
1. Information by reportable segment on net sales, profit / loss amounts and information on disaggregation of revenue (Millions of yen)
Reportable segments | ||||||
Consumer | Enterprise | Smart Life & | Other | Total | ||
Mobile | Solutions | QUO Card | ||||
Total | (Note) | |||||
Business | Business | Business | ||||
Segment | Segment | Segment | ||||
Net sales | ||||||
Smart device | 103,073 | 5,576 | - | 108,650 | - | 108,650 |
Prepaid cards, etc. | - | - | 6,810 | 6,810 | - | 6,810 |
Fees related to smart | 71,308 | 5,564 | - | 76,873 | - | 76,873 |
device | ||||||
Sales commissions of | - | - | 6,421 | 6,421 | - | 6,421 |
prepaid card, etc. | ||||||
Own solution | - | 3,267 | - | 3,267 | - | 3,267 |
services | ||||||
TG Hikari & NW | - | 3,506 | - | 3,506 | - | 3,506 |
related | ||||||
Other | 2,718 | 173 | 4,294 | 7,186 | 36 | 7,223 |
Revenue from | ||||||
contracts with | 177,100 | 18,088 | 17,526 | 212,715 | 36 | 212,751 |
customers | ||||||
Other revenue | - | - | 76 | 76 | - | 76 |
Sales to external | 177,100 | 18,088 | 17,602 | 212,791 | 36 | 212,828 |
customers | ||||||
Intersegment sales or | - | 37 | 58 | 95 | 743 | 838 |
transfers | ||||||
Total | 177,100 | 18,125 | 17,660 | 212,886 | 779 | 213,666 |
Segment profit | 1,605 | 1,197 | 1,254 | 4,057 | 83 | 4,140 |
Note: The "Other" segment is a segment for businesses that do not fall under reportable segments and includes the Company's systems development, operation, and maintenance operations.
2. The difference between total profit or loss of reportable segments and profit or loss reported in the quarterly consolidated statements of income for the period under review, and main items responsible for the difference (Matters concerning difference adjustment)
(Millions of yen) | |
Profit | Amount |
Reportable segments total | 4,057 |
Profit categorized as "Other" | 83 |
Profit attributable to owners of parent in the quarterly consolidated | 4,140 |
statements of income | |
3. Matters concerning the impairment loss from non-current assets or goodwill of reportable segments (Material change in the goodwill amount)
In the Enterprise Solutions Business Segment, Relay2, Inc. was made into a consolidated subsidiary from 1Q FY 2023. The increase in the amount of goodwill caused by this event was 1,137 million yen.
(Information concerning gain on bargain purchase)
In the Consumer Mobile Business Segment, we recognized a gain on bargain purchase associated with the acquisition of shares of CCC FRONTIER Inc. (name changed to UNiCASE Corporation on October 1, 2022) and its conversion into a consolidated subsidiary in 2Q FY 2023. This gain on bargain purchase amounted to 244 million yen.
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T-Gaia Corporation published this content on 24 November 2023 and is solely responsible for the information contained therein. Distributed by Public, unedited and unaltered, on 24 November 2023 08:35:07 UTC.