Note: This English translation is for reference purposes only. In the event of any discrepancy between the Japanese original and this English translation, the Japanese original shall prevail.
transcosmos inc.
Consolidated Financial Results for the Six Months Ended September 30, 2023 [J-GAAP]
October 31, 2023
(Amounts are rounded down to the nearest million yen.)
1. Consolidated Financial Results for the Second Quarter of the Fiscal Year Ending March 31, 2024 (April 1, 2023 through September 30, 2023)
(1) Consolidated operating results (For the six months ended September 30)
(% of change from the previous corresponding period)
Net sales | Operating income | Ordinary income | Net income attributable | ||||||||
to shareholders of | |||||||||||
transcosmos inc. | |||||||||||
Million yen | % | Million yen | % | Million yen | % | Million yen | % | ||||
Six | months | ended | 180,047 | (1.8) | 5,841 | (54.0) | 7,290 | (43.7) | 4,388 | (44.7) | |
Sep. 30, 2023 | |||||||||||
Six | months | ended | 183,390 | 9.1 | 12,695 | 17.9 | 12,941 | 20.2 | 7,932 | (9.6) | |
Sep. 30, 2022 |
(Note) Comprehensive income: Six months ended September 30, 2023: 6,809 million yen 4.2%. Six months ended September 30,
2022: 6,536 million yen (64.6%)
Earnings per share - Basic | Earnings per share - Diluted | |||
Yen | Yen | |||
Six | months | ended | 117.12 | 109.70 |
Sep. 30, 2023 | ||||
Six | months | ended | 191.27 | 180.39 |
Sep. 30, 2022 |
(2) Consolidated financial position
Total assets | Net assets | Equity ratio | Net assets | ||
per share | |||||
Million yen | Million yen | % | Yen | ||
As of Sep. 30, 2023 | 198,986 | 114,582 | 53.0 | 2,811.83 | |
As of Mar. 31, 2023 | 193,842 | 112,381 | 53.4 | 2,761.61 | |
(Reference) Equity ratio: As of September 30, 2023: 105,367 million yen. As of March 31, 2023: 103,486 million yen |
2. Cash dividends
Annual dividends | |||||
End of first | End of second | End of third | Year-end | Total | |
quarter | quarter | quarter | |||
Yen | Yen | Yen | Yen | Yen | |
Year ended Mar. 31, | - | 0.00 | - | 117.00 | 117.00 |
2023 | |||||
Year ending Mar. 31, | - | 0.00 | |||
2024 | |||||
Year ending Mar. 31, | - | - | - | ||
2024 (Forecast) |
(Note) Revisions to the forecast of cash dividends since the latest announcement: None
Please note that the dividend forecast for the fiscal year ending March 31, 2024 has not been finalized.
3. Forecasts for Consolidated Financial Results for the Fiscal Year Ending March 31, 2024 (April 1, 2023 through March 31, 2024)
Please note that this document does not include the forecasts for consolidated financial results for the fiscal year ending March 31, 2024, due to the difficulty in making reasonably accurate projections for such period.
Unaudited Quarterly Consolidated Balance Sheet transcosmos inc. AND ITS CONSOLIDATED SUBSIDIARIES As of September 30, 2023 and March 31, 2023
Thousands of U.S. | |
Millions of yen | dollars (Note 1) |
As of September | As of March 31, | As of September | ||||||
ASSETS | 30, 2023 | 2023 | 30, 2023 | |||||
Current assets: | ||||||||
Cash and deposits | ¥ | 59,692 | ¥ | 51,176 | $ | 399,069 | ||
Notes and accounts receivable - trade, and contract | 65,762 | 70,985 | 439,644 | |||||
assets | ||||||||
Merchandise and finished goods | 5,097 | 4,825 | 34,075 | |||||
Work in process | 315 | 196 | 2,108 | |||||
Supplies | 93 | 92 | 621 | |||||
Others | 10,399 | 8,444 | 69,523 | |||||
Less - allowance for doubtful accounts | (357) | (297) | (2,386) | |||||
Total current assets | 141,002 | 135,423 | 942,657 | |||||
Non-current assets: | ||||||||
Property, plant and equipment: | ||||||||
Buildings and structures, net | 6,557 | 6,652 | 43,841 | |||||
Tools, furniture and fixtures, net | 7,354 | 7,779 | 49,168 | |||||
Land | 845 | 839 | 5,649 | |||||
Others, net | 1,211 | 1,279 | 8,097 | |||||
Total property, plant and equipment, net | 15,968 | 16,550 | 106,756 | |||||
Intangible assets: | ||||||||
Goodwill | 971 | 604 | 6,496 | |||||
Software | 3,144 | 3,135 | 21,021 | |||||
Others | 1,016 | 783 | 6,798 | |||||
Total intangible assets | 5,133 | 4,523 | 34,316 | |||||
Investments and other assets: | ||||||||
Investment securities | 8,266 | 8,111 | 55,266 | |||||
Shares of unconsolidated subsidiaries and affiliates | 11,653 | 10,718 | 77,908 | |||||
Investments of capital subsidiaries and affiliates | 1,575 | 1,442 | 10,535 | |||||
Deferred tax assets | 3,509 | 5,305 | 23,461 | |||||
Guarantee deposits | 10,716 | 10,456 | 71,646 | |||||
Others | 1,523 | 1,644 | 10,184 | |||||
Less - allowance for doubtful accounts | (363) | (333) | (2,433) | |||||
Total investments and other assets | 36,881 | 37,345 | 246,569 | |||||
Total non-current assets | 57,983 | 58,419 | 387,642 | |||||
Total assets | ¥ | 198,986 | ¥ | 193,842 | $ | 1,330,299 | ||
See accompanying notes to unaudited quarterly consolidated financial statements.
1
Unaudited Quarterly Consolidated Balance Sheet
transcosmos inc. AND ITS CONSOLIDATED SUBSIDIARIES As of September 30, 2023 and March 31, 2023
Thousands of U.S. | |
Millions of yen | dollars (Note 1) |
As of September | As of March 31, | As of September | ||||||
LIABILITIES | 30, 2023 | 2023 | 30, 2023 | |||||
Current liabilities: | ||||||||
Accounts payable - trade | ¥ | 14,526 | ¥ | 16,230 | $ | 97,114 | ||
Short-term borrowings | 1,740 | 1,629 | 11,634 | |||||
Current portion of bonds payable | 75 | 79 | 501 | |||||
Current portion of long-term debt | 2,068 | 2,060 | 13,829 | |||||
Accounts payable - other | 6,727 | 7,785 | 44,972 | |||||
Accrued expenses | 20,628 | 18,918 | 137,910 | |||||
Income taxes payable | 1,705 | 4,849 | 11,405 | |||||
Accrued consumption taxes | 5,626 | 4,601 | 37,617 | |||||
Accrued compensation | 6,042 | 6,233 | 40,399 | |||||
Others | 6,783 | 4,046 | 45,352 | |||||
Total current liabilities | 65,925 | 66,433 | 440,737 | |||||
Non-current liabilities: | ||||||||
Bonds payable | 157 | 194 | 1,049 | |||||
Convertible bond-type bonds with subscription rights to | 10,064 | 10,074 | 67,282 | |||||
shares | ||||||||
Long-term debt | 6,243 | 2,222 | 41,737 | |||||
Liability for retirement benefits | 404 | 402 | 2,702 | |||||
Others | 1,610 | 2,133 | 10,764 | |||||
Total non-current liabilities | 18,478 | 15,027 | 123,535 | |||||
Total liabilities | ||||||||
84,403 | 81,461 | 564,272 | ||||||
NET ASSETS | ||||||||
Shareholders' equity: | ||||||||
Capital stock | 29,065 | 29,065 | 194,317 | |||||
Capital surplus | 19,331 | 19,330 | 129,241 | |||||
Retained earnings | 77,744 | 77,739 | 519,749 | |||||
Treasury stock, at cost | (28,567) | (28,567) | (190,985) | |||||
Total shareholders' equity | 97,574 | 97,568 | 652,322 | |||||
Accumulated other comprehensive income: | ||||||||
Unrealized holding gain on securities | 2,437 | 2,452 | 16,297 | |||||
Foreign currency translation gains adjustments | 5,355 | 3,464 | 35,802 | |||||
Total accumulated other comprehensive income | 7,793 | 5,917 | 52,100 | |||||
Stock acquisition rights | 3 | 3 | 21 | |||||
Non-controlling interests | 9,211 | 8,892 | 61,582 | |||||
Total net assets | 114,582 | 112,381 | 766,027 | |||||
Total liabilities and net assets | ¥ | 198,986 | ¥ | 193,842 | $ | 1,330,299 | ||
See accompanying notes to unaudited quarterly consolidated financial statements.
2
Unaudited Quarterly Consolidated Statement of Income transcosmos inc. AND ITS CONSOLIDATED SUBSIDIARIES
For the six months ended September 30, 2023 and 2022
Thousands of U.S. | |||||||||
Millions of yen | dollars (Note 1) | ||||||||
2023 | 2022 | 2023 | |||||||
Net sales | ¥ | 180,047 | ¥ | 183,390 | $ | 1,203,685 | |||
Cost of sales | 146,822 | 144,500 | 981,562 | ||||||
Gross profit | 33,225 | 38,890 | 222,122 | ||||||
Selling, general and administrative expenses | 27,383 | 26,194 | 183,069 | ||||||
Operating income | 5,841 | 12,695 | 39,053 | ||||||
Non-operating income (expenses): | |||||||||
Interest income | 122 | 80 | 816 | ||||||
Interest expenses | (71) | (39) | (475) | ||||||
Dividend income | 17 | 39 | 115 | ||||||
Share of profits (losses) of entities accounted for using | 363 | (510) | 2,428 | ||||||
equity method | |||||||||
Foreign exchange gains | 837 | 519 | 5,600 | ||||||
Gains on sale of investment securities | 155 | 70 | 1,042 | ||||||
Losses on valuation of investment securities | (164) | (1) | (1,100) | ||||||
Impairment losses on fixed assets | (26) | (9) | (178) | ||||||
Gains on change in equity | 45 | 4 | 303 | ||||||
Gains on sale of shares of subsidiaries and affiliates | - | 373 | - | ||||||
Losses on change in equity | - | (182) | - | ||||||
Other income (expenses), net | 149 | 157 | 1,000 | ||||||
Total non-operating income (expenses) | 1,429 | 500 | 9,553 | ||||||
Income before income taxes and non-controlling interests | 7,270 | 13,196 | 48,607 | ||||||
Income taxes: | |||||||||
Current | 1,350 | 4,676 | 9,031 | ||||||
Deferred | 1,014 | (13) | 6,783 | ||||||
Total income taxes | 2,365 | 4,663 | 15,815 | ||||||
Net income | 4,905 | 8,532 | 32,792 | ||||||
Net income attributable to non-controlling interests | 516 | 600 | 3,450 | ||||||
Net income attributable to shareholders of transcosmos inc. | |||||||||
¥ | 4,388 | ¥ | 7,932 | $ | 29,341 | ||||
See accompanying notes to unaudited quarterly consolidated financial statements.
3
Unaudited Quarterly Consolidated Statement of Comprehensive Income transcosmos inc. AND ITS CONSOLIDATED SUBSIDIARIES
For the six months ended September 30, 2023 and 2022
Thousands of U.S. | |||||||||
Millions of yen | dollars (Note 1) | ||||||||
2023 | 2022 | 2023 | |||||||
Net income | ¥ | 4,905 | ¥ | 8,532 | $ | 32,792 | |||
Other comprehensive income: | |||||||||
Unrealized holding gains (losses) on securities | (13) | (6,549) | (92) | ||||||
Foreign currency translation gains adjustments | 1,151 | 2,720 | 7,695 | ||||||
Share of other comprehensive income from ownership in | |||||||||
entities accounted for using equity method | 767 | 1,833 | 5,130 | ||||||
Total other comprehensive income | 1,904 | (1,996) | 12,733 | ||||||
Comprehensive income | ¥ | 6,809 | ¥ | 6,536 | $ | 45,525 | |||
Total comprehensive income attributable to: | |||||||||
Shareholders of transcosmos inc. | ¥ | 6,264 | ¥ | 5,905 | $ | 41,883 | |||
Non-controlling interests | 544 | 631 | 3,642 |
See accompanying notes to unaudited quarterly consolidated financial statements.
4
Unaudited Quarterly Consolidated Statement of Cash Flows transcosmos inc. AND ITS CONSOLIDATED SUBSIDIARIES
For the six months ended September 30, 2023 and 2022
Thousands of U.S. | |||||||||||
Millions of yen | dollars (Note 1) | ||||||||||
2023 | 2022 | 2023 | |||||||||
Operating activities: | |||||||||||
Income before income taxes and non-controlling interests | ¥ | 7,270 | ¥ | 13,196 | $ | 48,607 | |||||
Depreciation of property, plant and equipment | 1,974 | 1,790 | 13,198 | ||||||||
Impairment losses on fixed assets | 26 | 9 | 178 | ||||||||
Amortization of goodwill | 91 | 96 | 611 | ||||||||
Amortization of intangible assets | 752 | 744 | 5,033 | ||||||||
Increase (decrease) in allowance for doubtful accounts | 60 | 25 | 407 | ||||||||
Increase (decrease) in accrued compensation | (219) | (15) | (1,464) | ||||||||
Changes in liability for retirement benefits, nets | (1) | 17 | (8) | ||||||||
Interest and dividend income | (139) | (119) | (932) | ||||||||
Interest expenses | 71 | 39 | 475 | ||||||||
Foreign exchange losses (gains) | (837) | (519) | (5,600) | ||||||||
Share of losses (profits) of entities accounted for using equity method | (363) | 510 | (2,428) | ||||||||
Losses (gains) on investments in investment partnerships | 12 | 18 | 84 | ||||||||
Losses on disposal of fixed assets | 12 | 22 | 83 | ||||||||
Losses (gains) on sales of investment securities | (155) | (70) | (1,042) | ||||||||
Losses on valuation of investment securities | 164 | 1 | 1,100 | ||||||||
Losses (gains) on sales of shares of subsidiaries and affiliates | - | (373) | - | ||||||||
Losses (gains) on changes in ownership interests in subsidiaries and | (45) | 177 | (303) | ||||||||
affiliates | |||||||||||
Decrease (increase) in notes and accounts receivable - trade | 6,255 | 7,111 | 41,819 | ||||||||
Decrease (increase) in inventories | (194) | (340) | (1,301) | ||||||||
Increase (decrease) in trade payables | (1,957) | (1,453) | (13,088) | ||||||||
Increase (decrease) in accrued consumption taxes | 982 | (1,224) | 6,566 | ||||||||
Others, net | 1,352 | (2,417) | 9,043 | ||||||||
Subtotal | 15,113 | 17,227 | 101,040 | ||||||||
Interest and dividends received | 194 | 546 | 1,298 | ||||||||
Interest paid | (80) | (116) | (540) | ||||||||
Income taxes paid | (4,471) | (5,174) | (29,892) | ||||||||
Income taxes refund | 586 | - | 3,921 | ||||||||
Net cash provided by operating activities | ¥ | 11,342 | ¥ | 12,483 | $ | 75,826 | |||||
5
Unaudited Quarterly Consolidated Statement of Cash Flows transcosmos inc. AND ITS CONSOLIDATED SUBSIDIARIES
For the six months ended September 30, 2023 and 2022
2023 | 2022 | 2023 | |||||||
Investing activities: | |||||||||
Payments into time deposits | ¥ | (330) | ¥ | (631) | $ | (2,208) | |||
Proceeds from withdrawal of time deposits | 819 | 436 | 5,481 | ||||||
Purchases of property, plant and equipment | (1,359) | (2,036) | (9,087) | ||||||
Purchases of intangible assets | (705) | (536) | (4,717) | ||||||
Purchases of investment securities | (128) | (466) | (862) | ||||||
Proceeds from sales of investment securities | 171 | 143 | 1,149 | ||||||
Purchase of shares of subsidiaries and affiliates | (137) | (23) | (921) | ||||||
Proceeds from sale of shares of subsidiaries and affiliates | - | 236 | - | ||||||
Payments for guarantee deposits | (245) | (985) | (1,641) | ||||||
Proceeds from collection of guarantee deposits | 122 | 948 | 820 | ||||||
Purchase of shares of subsidiaries resulting in change in scope of | (453) | - | (3,029) | ||||||
consolidation | |||||||||
Payments of loans receivable | (75) | (90) | (508) | ||||||
Collection of loans receivable | 92 | 48 | 619 | ||||||
Other payments | (316) | (716) | (2,118) | ||||||
Other proceeds | 189 | 23 | 1,267 | ||||||
Net cash used in investing activities | |||||||||
(2,356) | (3,650) | (15,756) | |||||||
Financing activities: | |||||||||
Proceeds from short-term borrowings | 11 | 15 | 76 | ||||||
Repayment of short-term borrowings | (111) | (16) | (748) | ||||||
Proceeds from long-term borrowings | 6,050 | - | 40,446 | ||||||
Repayment of long-term borrowings | (2,029) | (12,031) | (13,565) | ||||||
Cash dividends paid | (4,378) | (5,775) | (29,268) | ||||||
Cash dividends paid to non-controlling interests | (221) | (206) | (1,482) | ||||||
Others, net | (328) | (317) | (2,195) | ||||||
Net cash used in financing activities | (1,007) | (18,332) | (6,737) | ||||||
Effect of exchange rate changes on cash and cash equivalents | 954 | 1,653 | 6,383 | ||||||
Increase (decrease) in cash and cash equivalents | 8,932 | (7,846) | 59,716 | ||||||
Cash and cash equivalents at the beginning of the period | 49,366 | 63,858 | 330,035 | ||||||
Cash and cash equivalents at the end of the period | ¥ | 58,299 | ¥ | 56,012 | $ | 389,752 | |||
See accompanying notes to unaudited quarterly consolidated financial statement
6
Notes to Unaudited Quarterly Consolidated Financial Statements
transcosmos inc. AND ITS CONSOLIDATED SUBSIDIARIES
1. U.S. Dollar Amounts
The accompanying quarterly consolidated financial statements are expressed in yen, and solely for the convenience of the reader, have been translated into United States (U.S.) dollars at the rate of ¥149.58=$1, the approximate exchange rate on the Tokyo Foreign Exchange Market as of September 30, 2023. This translation should not be construed as a representation that the amounts shown could be converted to U.S. dollars at such rate.
7
Notes to Unaudited Quarterly Consolidated Financial Statements
transcosmos inc. AND ITS CONSOLIDATED SUBSIDIARIES
2. Segment Information
- Information on net sales and profit or loss for each reportable segment for the six months ended September 30, 2023 and 2022 Millions of yen
2023 | ||||||||||||||||||
Reportable segments | ||||||||||||||||||
Domestic | Overseas | |||||||||||||||||
Parent | subsidiaries and | subsidiaries | ||||||||||||||||
company | affiliates | and affiliates | Total | Eliminations | Consolidated | |||||||||||||
Net sales | ||||||||||||||||||
Sales to third parties | ¥ | 117,085 | ¥ | 17,756 | ¥ | 45,205 | ¥ | 180,047 | ¥ | - | ¥ | 180,047 | ||||||
Inter-segment | sales | |||||||||||||||||
and transfers | 518 | 3,306 | 2,141 | 5,966 | (5,966) | - | ||||||||||||
Total | ||||||||||||||||||
¥ | 117,604 | ¥ | 21,062 | ¥ | 47,346 | ¥ | 186,013 | ¥ | (5,966) | ¥ | 180,047 | |||||||
Segment profit | ||||||||||||||||||
¥ | 3,726 | ¥ | 1,191 | ¥ | 932 | ¥ | 5,850 | ¥ | (8) | ¥ | 5,841 | |||||||
Thousands of U.S. dollars (Note 1) | ||||||||||||||||||
2023 | ||||||||||||||||||
Reportable segments | ||||||||||||||||||
Domestic | Overseas | |||||||||||||||||
Parent | subsidiaries and | subsidiaries | ||||||||||||||||
company | affiliates | and affiliates | Total | Eliminations | Consolidated | |||||||||||||
Net sales | ||||||||||||||||||
Sales to third parties | $ | 782,764 | $ | 118,707 | $ | 302,213 | $ | 1,203,685 | $ | - | $ | 1,203,685 | ||||||
Inter-segment | sales | |||||||||||||||||
and transfers | 3,467 | 22,104 | 14,314 | 39,886 | (39,886) | - | ||||||||||||
Total | ||||||||||||||||||
$ | 786,231 | $ | 140,812 | $ | 316,528 | $ | 1,243,572 | $ | (39,886) | $ | 1,203,685 | |||||||
Segment profit | ||||||||||||||||||
$ | 24,909 | $ | 7,967 | $ | 6,235 | $ | 39,113 | $ | (59) | $ | 39,053 | |||||||
Note A: Segment profit of ¥(8) million ($(59) thousand) in "Eliminations" consists of inter-segment elimination. | ||||||||||||||||||
Note B: Total consolidated segment profit agrees with consolidated operating income. | ||||||||||||||||||
Millions of yen | ||||||||||||||||||
2022 | ||||||||||||||||||
Reportable segments | ||||||||||||||||||
Domestic | Overseas | |||||||||||||||||
Parent | subsidiaries and | subsidiaries | ||||||||||||||||
company | affiliates | and affiliates | Total | Eliminations | Consolidated | |||||||||||||
Net sales | ||||||||||||||||||
Sales to third parties | ¥ | 122,493 | ¥ | 17,557 | ¥ | 43,340 | ¥ | 183,390 | ¥ | - | ¥ | 183,390 | ||||||
Inter-segment | sales | |||||||||||||||||
and transfers | 551 | 3,285 | 2,156 | 5,993 | (5,993) | - | ||||||||||||
Total | ||||||||||||||||||
¥ | 123,044 | ¥ | 20,842 | ¥ | 45,496 | ¥ | 189,384 | ¥ | (5,993) | ¥ | 183,390 | |||||||
Segment profit | ¥ | 9,223 | ¥ | 2,153 | ¥ | 1,324 | ¥ | 12,701 | ¥ | (6) | ¥ | 12,695 |
Note A: Segment profit of ¥(6) million in "Eliminations" consists of inter-segment elimination.
Note B: Total consolidated segment profit agrees with consolidated operating income.
8
Notes to Unaudited Quarterly Consolidated Financial Statements
transcosmos inc. AND ITS CONSOLIDATED SUBSIDIARIES
3. Revenue recognition
Information of disaggregated revenue from contracts with customers for the six months ended September 30, 2023 and 2022 Millions of yen
2023 | |||||||||||||
Reportable segments | |||||||||||||
Domestic | Overseas | ||||||||||||
Parent | subsidiaries | subsidiaries | |||||||||||
company | and affiliates | and affiliates | Total | ||||||||||
Japan | |||||||||||||
¥ | 115,406 | ¥ | 17,751 | ¥ | 2,349 | ¥ | 135,507 | ||||||
Korea | - | - | 19,043 | 19,043 | |||||||||
China | 80 | 1 | 13,813 | 13,895 | |||||||||
Southeast Asia | 992 | 1 | 7,322 | 8,316 | |||||||||
Other | 606 | 1 | 2,675 | 3,283 | |||||||||
Revenue from contracts with customers | |||||||||||||
117,085 | 17,756 | 45,205 | 180,047 | ||||||||||
Other revenue | - | - | - | - | |||||||||
Sales to third parties | |||||||||||||
¥ | 117,085 | ¥ | 17,756 | ¥ | 45,205 | ¥ | 180,047 | ||||||
Thousands of U.S. dollars (Note 1) | |||||||||||||
2023 | |||||||||||||
Reportable segments | |||||||||||||
Domestic | Overseas | ||||||||||||
Parent | subsidiaries | subsidiaries | |||||||||||
company | and affiliates | and affiliates | Total | ||||||||||
Japan | |||||||||||||
$ | 771,539 | $ | 118,675 | $ | 15,707 | $ | 905,922 | ||||||
Korea | - | - | 127,314 | 127,314 | |||||||||
China | 538 | 11 | 92,348 | 92,898 | |||||||||
Southeast Asia | 6,632 | 12 | 48,956 | 55,601 | |||||||||
Other | 4,053 | 8 | 17,887 | 21,949 | |||||||||
Revenue from contracts with customers | |||||||||||||
782,764 | 118,707 | 302,213 | 1,203,685 | ||||||||||
Other revenue | - | - | - | - | |||||||||
Sales to third parties | |||||||||||||
$ | 782,764 | $ | 118,707 | $ | 302,213 | $ | 1,203,685 | ||||||
Note: Revenue from contracts with customers above is disaggregated based on customers' locations into countries or areas.
9
Attachments
- Original Link
- Original Document
- Permalink
Disclaimer
transcosmos Inc. published this content on 31 October 2023 and is solely responsible for the information contained therein. Distributed by Public, unedited and unaltered, on 31 October 2023 07:39:42 UTC.