Takachiho Koheki : Financial Results for the Year Ended March 2021 (Consolidated)

Financial Results for the Year Ended March 2021 [Based on the Japanese Accounting Standards]

(Consolidated)

									May 14, 2021
Name of the company:Takachiho Koheki Co., Ltd.		Stock market: Tokyo Stock Exchange First Section
Code No.:2676						URL: https://www.takachiho-kk.co.jp
Representative (job title): Takanobu Ide (President and CEO)
Contact person (job title): Masaya Iwamoto (General Manager of Administrative Department)	TEL: [phone]
Date of the shareholder's meeting: June 25, 2021		Date of dividends payment: June 28, 2021
Registration date of annual securities report: June 28, 2021
Additional explanation materials; Yes
Financial results briefing; No
					(Amounts less than one million yen are rounded down.)
1. Consolidated Financial Results for the Year ended March 2021 (from April 1, 2020 to March 31, 2021)
(1) Consolidated Operating Results				(Percent figures represent year-on-year changes.)
	Net sales		Operating income	Ordinary income	Net income attributable to
		owners of parent
	million yen		%	million yen	%	million yen		%	million yen		%
FY 2020	20,591		(0.1)	886	12.4	926		4.6	548		187.7
FY 2019	20,616		3.6	788	(20.4)	885		18.5	190		(61.2)

Note: Comprehensive income:	801 million yen (--%) for FY 2020	27 million yen (-94.3%) for FY 2019
	Net income per share	Fully diluted net	Return on equity	Ratio of ordinary	Ratio of operating
	income per share	income to total assets	income to net sales
		Yen	Yen		%	%	%
FY 2020		61.56	－		4.0	4.9	4.3
FY 2019		21.40	－		1.4	4.7	3.8

Reference: Equity in earnings (losses) of affiliates: -2 million yen for FY 2020	1 million yen for FY 2019
(2) Consolidated Financial Position
		Total assets		Net assets	Equity ratio		Net assets per share
		million yen		million yen	%		yen
FY 2020		19,473		14,174	72.7		1,590.28
FY 2019		18,556		13,584	73.2		1,524.28
Reference: Owner's equity:	14,162 million yen for FY 2020	13,574 million yen for FY 2019
(3) Consolidated Cash Flow
		Cash flow from operating	Cash flow from	Cash flow from financing		Cash and cash equivalents
		activities		investment	activities		at the end of the period
		million yen		million yen	million yen		million yen
FY 2020		753		(774)	(214)		4,900
FY 2019		250		(111)	(214)		5,099

2. Dividends

		Annual cash dividends per share			Total cash	Payout ratio		Dividends to
	At 1st	At 2nd	At 3rd	At fiscal	Total		dividends	(Consolidated)		net assets
	quarter end	quarter end	quarter end	year end			(Annual)			(Consolidated)
	yen	yen	yen	yen	yen		million yen	%	%
FY 2019	―	12.00	―	12.00	24.00	213	112.1	1.6
FY 2020	―	12.00	―	13.00	25.00	222	40.6	1.6
FY 2021	―	12.00	―	―	―			―
forecast

Our dividend policy is to have a consolidated payout ratio of 40% or more, with a stable dividend amount (24 yen per year) as the lower limit. In accordance with this policy, the dividend amount is undecided at this time, but for the fiscal year ending March 2022, the dividend at the end of the second quarter will be 12 yen, and the year-end dividend will be the annual dividend with a consolidated payout ratio of 40% or more. As we are planning to do this, the year-end dividend and annual dividend are indicated as "-".

3. Forecast of Consolidated Operating Results for FY 2021 (from April 1, 2021 to March 31, 2022)
								(Percent figures represent	year-on-year changes.)
	Net sales		Operating income		Ordinary income	Net income attributable to	Net income
			owners of parent	per share
	million yen		%	million yen		%	million ye	%	million yen		%	yen
							n
FY 2021	9,720		4.8	220		0.5	200	12.8	122		100.1	13.70
1st half
FY 2021	21,700		5.4	1,130		27.5	1,100	18.7	770		40.4	86.46

* Notes:

1. Changes to principal subsidiaries during the period (changes to specified subsidiary companies accompanying a change to the scope of consolidation): None
2. Changes in accounting policies and estimates, and retrospective restatement:

(i) Changes in accounting policies due to amendments of accounting standards, etc.:	None
(ii) Changes in accounting policies other than (i) above:		None
(iii) Changes in accounting estimates:		None
(iv) Retrospective restatement:		None
(3) Number of shares issued (common stock)
(i) Number of shares issued at the end of the period (including treasury	FY 2020	10,171,800	FY	10,171,800
shares)			2019
(ii) Number of treasury shares at the end of the period	FY 2020	1,266,078	FY	1,266,058
(iii) Average number of shares issued during the period			2019
	FY 2020	8,905,732	FY	8,905,751
			2019

Reference: Non-consolidated Financial Results

Non-consolidated Financial Results for the Year ended March 2021 (from April 1, 2020 to March 31, 2021)

(1) Non-consolidated Operating Results

(Percent figures represent year-on-year changes.)

		Net sales			Operating income		Ordinary income			Net income
	million yen		%		million yen	%	million yen	%		million yen	%
FY 2020	16,721		8.6		1.075	32.5		1,380		44.9		752	30.7
FY 2019	15,402		4.5		811	(2.7)		952		0.1		575	25.7
							Net income per share			Fully diluted net income per share
										yen						yen
FY 2020										84.44						－
FY 2019										64.58						－
(2) Non-consolidated Financial Position
			Total assets		Net assets	Capital adequacy ratio		Net assets per share
				million yen		million yen			%			yen
FY 2020					19,510		15,044			77.0			1,687.87
FY 2019					18,509		14,408			77.8			1,616.77

Reference: Owner's equity: 15,031 million yen for FY 2020, 14,398 million yen for FY 2019

• This financial summary is not subject to audit procedure.
• Appropriate use of forecasts and other items warranting special mention: (Note on the forecasts, etc.)
  The operating result forecast and other forward-looking statements contained in this report are based on the information currently available to the Company and certain assumptions the Company considers reasonable, and the Company by no means guarantees such achievement. In addition, final results may differ significantly from forecasts due to a variety of factors. With regard to the assumptions for result forecasts, see P. 2 of the attached material, "1. Overview of Operating Results/Financial Position (1) Overview of Operating Results."

Table of Contents to the Attached Materials

1. Overview of Operating Results/Financial Position………………………………………………………………… P.2

1. Overview of Operating Results …………………………………………………………………………………………. P.2
2. Overview of Financial Position …………………………………………………………………………………………. P.5

(3) Basic Policy for distribution of profit and the Dividends for the current and next fiscal years………………………… P.6

1. Corporate Group Status…………………………………………………………………………………………………. P.7
2. Management Policies……………………………………………………………………………………………………. P.11
3. Basic stance relating to the selection of accounting standards…………………………………………………… P.13
4. Consolidated Financial Statements……………………………………………………………………………………. P.14
5. 1. Consolidated Balance Sheet……………………………………………………………………………………………… P.14
   2. Consolidated Income Statements and Statements of Comprehensive Income…………………………………………... P.16 (Consolidated Income Statements).……………………………………………………………………………………. P.16 (Consolidated Statements of Comprehensive Income) ………………………………………………………………... P.17
   3. Consolidated Statements of Changes in Net Assets……………………………………………………………………… P.18
   4. Consolidated Statements of Cash Flow …………………………………………………………………………………. P.20
   5. Note on going-concern assumption ……………………………………………………………………………………… P.21
   6. Significant matters constituting the basis for the preparation of consolidated financial statements……………………… P.21
   7. Notes on Consolidated Financial statements……………………………………………………………………………… P.23 (Consolidated Balance Sheet)…………………………………………………………………………………………… P.23 (Consolidated Income Statements)……………………………………………………………………………………… P.23

(Consolidated Statements of Comprehensive Income)…………………………………………………………………	P.26
(Consolidated Statements of Changes in Net Assets)…………………………………………………………………… P.27
(Consolidated Cash Flow Statements) …………………………………………………………………………………	P.29
(Segment Information, etc.)……………………………………………………………………………………………	P.29

(Per Share Information) ………………………………………………………………………………………………… P.33

(Significant Subsequent Event) ………………………………………………………………………………………… P.33

6. Non-consolidated Financial Statements……………………………………………………………………………… P.34

1. Balance sheet …………………………………………………………………………………………………………… P.34
2. Income statements………………………………………………………………………………………………………… P.36

(3) Statements of Changes in Net Assets…………………………………………………………………………………… P.37

7. Other ……………………………………………………………………………………………………………………… P.39

(1) Purchases, orders received and sales …………………………………………………………………………………… P.39

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1. Overview of Operating Results/Financial Position

1. Overview of Operating Results
2. 1. Operating Results for current consolidated fiscal year

For the current consolidated fiscal year, the Japanese economy has seen a gradual recovery, although it has retreated significantly due to the spread of the new coronavirus (COVID-19).

As for the outlook, it is expected that the recovery will continue due to the effects of various policies and the improvement of overseas economies while taking measures to prevent the spread of infectious diseases. However, it is necessary to pay close attention to the risks of a downturn in domestic and foreign economies triggered by the impact of the re-expansion of infections on socio-economic activities and fluctuations in the financial and capital markets.

Although the market environment for our Group remains harsh due to increasingly fierce competition, we are striving to strengthen competitiveness and improve profitability through added value to achieve further growth and create revenue bases by expanding our global business and new business.

In the System Segment, we have made efforts to increase the added value of our flagship products, Electronic Article Surveillance Systems and Access Control Systems. We are promoting sales for Cloud-based Wireless LAN Systems and remote access products related to teleworking and are developing new markets for RFID Systems and Retail Solutions related to labor saving systems. We are expanding the Advanced Fire Protection System Business, which is operated in Thailand and the ASEAN region.

In the Device Segment, we have promoted sales mainly in the telecom infrastructure area and the automotive area in the Semiconductor Business. In the Industrial Systems Business, we have focused on sales of Mechanical Components for residential equipment in North America, the ASEAN region and China, in addition to conventional sales of Mechanical Components for ATMs and the development of the automobile interior components market in Japan and overseas.

Under these circumstances, operating results in the current consolidated fiscal year cumulative period, sales were affected by the spread of the new corona virus, and sales of remote access products and semiconductor parts for communication terminals were strong due to rising demand for telework. However, due to the decline in markets that we are focusing on, such as the office- related market in Japan and overseas, the manufacturing industry, and the construction industry, sales decreased 0.1% year-on- year to 20,591 million yen.

In addition to the above reasons, due to efforts to reduce selling, general and administrative expenses, in terms of profit and loss, operating income increased by 12.4 percent YOY to 886 million yen. Ordinary income increased by 4.6 percent YOY to 926 million yen.

Net income attributable to shareholders of the parent company increased by 187.7 percent YOY to 548 million yen.

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