SMC CORPORATION May 14, 2024
Consolidated Financial Highlights for the Year ended March 31, 2024
[under Japanese GAAP]
Company name : | SMC Corporation | |||||||||||||
Stock exchange listing : | Tokyo Stock Exchange, Prime Market | |||||||||||||
Security code : | 6273 | |||||||||||||
URL : | https://www.smcworld.com/ir/en/ | |||||||||||||
Representative : | Yoshiki Takada, President | |||||||||||||
Contact person : | Masahiro Ota, | Director and Executive Officer | ||||||||||||
Projected date of annual shareholders' meeting : | June 27, 2024 | |||||||||||||
Projected date of filing Annual report : | June 27, 2024 | |||||||||||||
Projected starting date of dividend payment : | June 28, 2024 | |||||||||||||
1. Consolidated Financial Highlights for the Year ended March 31, 2024 | ||||||||||||||
(April 1, 2023 to March 31, 2024) | (Millions of yen, except per share figures) | |||||||||||||
(1) Consolidated Operating Results | ||||||||||||||
Fiscal Year | Profit | |||||||||||||
Net sales | Operating profit | Ordinary profit | attributable to | |||||||||||
ended March 31 | ||||||||||||||
owners of parent | ||||||||||||||
2024 | 776,873 | (5.8%) | 196,226 | (24.0%) | 251,008 | (18.0%) | 178,321 | (20.6%) | ||||||
2023 | 824,772 | 13.4% | 258,200 | 13.3% | 305,980 | 12.1% | 224,609 | 16.4% | ||||||
Fiscal Year | Net income | Net income per share | Return on | Return on | Operating | |||||||||
ended March 31 | per share (Yen) | (diluted basis) (Yen) | equity | assets | income ratio | |||||||||
2024 | 2,766.92 | − | 10.0% | 12.5% | 25.3% | |||||||||
2023 | 3,444.55 | − | 13.8% | 16.5% | 31.3% |
(Note) | Comprehensive income | Year ended March 31, 2024 : |
Year ended March 31, 2023 : |
¥ | 272,259 | million | 6.0% |
¥ | 256,933 | million | (4.6%) |
(2) Consolidated Financial Positions
As of March 31 | Total assets | Net assets | Equity ratio | Net assets | |||
per share (Yen) | |||||||
2024 | 2,094,559 | 1,885,871 | 89.8% | 29,338.63 | |||
2023 | 1,927,940 | 1,702,325 | 88.1% | 26,331.72 | |||
(Reference) | Shareholders' equity | As of March 31, 2024 : | ¥ | 1,881,586 million | |||
As of March 31, 2023 : | ¥ | 1,698,413 million | |||||
(3) Consolidated Cash Flows | |||||||
Fiscal Year | Cash flows from | Cash flows from | Cash flows from | Cash and cash | |||
ended March 31 | operating activities | investing activities | financing activities | equivalents at the | |||
end of period | |||||||
2024 | 98,207 | (131,900) | (87,928) | 405,586 | |||
2023 | 101,617 | (87,086) | (113,299) | 491,324 |
2. Dividends
For the year | Dividend per share (Yen) | Total dividends | Dividend | Dividend | ||||
ended March 31 | 1Q | 2Q | 3Q | 4Q | Total | (Millions of yen) | ratio | on equity |
2023(Actual) | − | 450.00 | − | 450.00 | 900.00 | 58,430 | 26.1% | 3.6% |
2024(Actual) | − | 450.00 | − | 500.00 | 950.00 | 61,098 | 34.3% | 3.4% |
2024(Projected) | − | 500.00 | − | 500.00 | 1,000.00 | 33.1% |
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SMC Corporation
3. Forecasts of Consolidated Operating Results for the Year ending March 31, 2025
) | |||||||||
(Millions of yen, except per share figures | |||||||||
Operating | Ordinary | Profit | Net income | ||||||
Net sales | attributable to | ||||||||
profit | profit | per share (Yen) | |||||||
owners of parent | |||||||||
Year ending | 840,000 | 8.1% | 234,000 | 19.3% | 274,000 | 9.2% | 194,000 | 8.8% | 3,024.94 |
March 31, 2025 | |||||||||
＊Notes
- Changes in significant subsidiaries during the fiscal year ended March 31, 2024: None
- Changes in accounting policies, changes in accounting estimates and retrospective restatement
- Changes in accounting policies applied due to revisions of accounting standards: None
- Changes in accounting policies other than the above: None
- Changes in accounting estimates: None
- Retrospective restatement: None
(3) Number of shares issued | As of March 31,2024 | As of March 31,2023 |
1. Number of common shares issued (including treasury shares) | 67,369,359 | 67,369,359 |
2. Number of treasury shares | 3,235,951 | 2,868,732 |
3. Average number of common shares for the year | 64,447,483 | 65,207,145 |
(Note) The company's shares held by the Board Benefit Trust (BBT) for the Directors' Stock Compensation Plan (2,600 shares as of March 31, 2023, and 11,200 shares as of March 31, 2024) is included in the number of treasury shares, which is deducted in the calculation for the above: 2. Number of treasury shares and 3. Average number of common shares for the year.
< Reference >
Non-consolidated Financial Highlights for the Year ended March 31, 2024
(April 1, 2023 to March 31, 2024) | (Millions of yen, except per share figures) | |||||||||||||
(1) Non-consolidated Operating Results | ||||||||||||||
Fiscal Year | Net sales | Operating profit | Ordinary profit | Profit | Net income | |||||||||
ended March 31 | per share (Yen) | |||||||||||||
2024 | 446,070 | (12.6%) | 99,575 | (30.2%) | 227,250 | (11.6%) | 180,018 | (11.4%) | 2,793.25 | |||||
2023 | 510,431 | 9.3% | 142,759 | 10.9% | 257,002 | 42.3% | 203,180 | 55.5% | 3,115.92 | |||||
(2) Non-consolidated Financial Positions | ||||||||||||||
As of March 31 | Total assets | Net assets | Equity ratio | Net assets per share (Yen) | ||||||||||
2024 | 1,329,020 | 1,201,517 | 90.4% | 18,734.65 | ||||||||||
2023 | 1,253,875 | 1,103,130 | 88.0% | 17,102.62 | ||||||||||
(Reference) | Shareholders' equity | As of March 31, 2024 : | ¥ 1,201,517 million | |||||||||||
As of March 31, 2023 : | ¥ 1,103,130 million |
These Consolidated Financial Highlights are not subject to audit procedures by the independent accounting auditor.
Explanation of appropriate use of financial forecasts; other special items
Forecasts are based on information and certain premises that we consider to be reasonable at the time we released these Consolidated Financial Highlights. Some factors could cause actual results to differ from expectations.
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SMC Corporation
1. Overview of Operating Results
(1) Overview of the fiscal year 2023
During this fiscal year (April 1, 2023 to March 31, 2024) the outlook remains uncertain due to the situation of continued turmoil in Ukraine, the outbreak of conflict in the Middle East, the global monetary tightening, the delicate U.S.-China relations, and concerns about a slowdown in Chinese economy, which continued held backs in capital investments across a wide range of industry.
As for the demand for automatic control equipment, in the semi-conductor and electrical machinery-related industries, there was continued restraint and postponement of capital investment in Japan, Asia, and the U.S. In the automotive-related industry, there were capital investment in EV-related areas mainly in Europe and the U.S., however, the overall growth rate slowed down, due to the sharp fall in EV-battery demand in Greater China, which was high in the previous year. Machine tool-related industry continued to be in an adjustment phase due to the sluggish semi-conductor-related demand and the economic slowdown in China. Sales to medical equipment-related, food machinery-related, and other industries remained sluggish, despite new post-covid demand for labor-saving and automation.
Under these circumstances, the SMC Group has continued to make aggressive capital investments to enhance its supply capability of products to be ready for the mid- to long-term demand growth, has also continued developing new products and proposing solutions which contribute to a significant CO2 emission reduction for its customers, establishing a BCP system, and utilizing it global human resources.
Within the business environment described above, the summary of consolidated business results for the fiscal year ended March 31, 2024 is as follows:
Net sales were 776,873 million yen (decreased by 5.8%, yoy). From the geographic segment point of view, Greater China (China, Hong Kong, Taiwan) decreased 14.8% from the previous year. By the customer industry, the continued low tone in the semi-conductor market resulted the decrease in revenue.
Operating profit was 196,226 million yen (decreased by 24.0%, yoy) due to the decrease in sales volume, and increase in production costs and expenses resulted from the increases in raw material costs, personnel costs, and depreciation costs.
Ordinary profit was 251,008 million yen (decreased by 18.0%, yoy). Although the foreign exchange gains decreased, the larger increase in interest income contributed to narrow the yoy decline compared to the operating profit.
Profit before income taxes was 252,653 million yen (decreased by 18.2%, yoy) and profit attributable to owners of parent was 178,321 million yen (decreased by 20.6%, yoy). The gain on the sale of investment securities decreased, resulting extraordinary income and losses to decrease.
ROE became 10.0%, decreased by 3.8 points from the previous fiscal year end.
(2) Overview of financial positions
Total assets in SMC Group's consolidated balance sheet as of the end of this fiscal year was 2,094,559 million yen (a 166,619 million yen or 8.6% increase from the previous fiscal year end). Cash and deposits decreased by 92,313 million yen, mainly due to the payment of tax, build-up of inventories, acquisition of investment securities, payment of dividends, allocation of funds for capital investments, and acquisition of own shares. In addition, an 11,176 million yen decrease in trade receivables due to the decrease in business activity, a 100,956 million yen increase in inventories from increase in raw materials and parts, an 86,563 million yen increase in property, plant and equipment mainly from capital investments in the production bases, and an 80,015 million yen increase in investment securities from the acquisition of additional U.S. treasuries.
Total liabilities were 208,688 million yen (a 16,926 million yen or 7.5% decrease, yoy), mainly due to the decreases of 14,817 million yen in trade payables and 13,119 million yen in income taxes payable.
Total net assets were 1,885,871 million yen (a 183,546 million yen or 10.8% increase, yoy), mainly due to a 120,268 million yen increase in retained earnings, a 30,628 million yen increase in purchase of treasury shares, and an 83,233 million yen increase in foreign currency translation adjustment.
― 3 ―
SMC Corporation
(3) Overview of cash flows
The balance of cash and cash equivalents as of the end of the fiscal year 2023 was 405,586 million yen, an 85,737 million yen decrease, yoy.
(Cash flows from operating activities)
Net cash provided by operating activities was 98,207 million yen (a 3,409 million yen revenue decrease, yoy). The main factors were:- a revenue of 169,140 million yen (a 9,492 million yen decrease, yoy) gained from
sales activities, a revenue of 18,820 million yen (a 4,128 million yen increase, yoy) gained from interest and dividends, and 89,671 million yen (a 1,910 million yen decrease, yoy) of income taxes paid.
(Cash flows from investing activities)
Net cash used by investing activities was 131,900 million yen (a 44,814 million yen increase, yoy).
The main factors were:- Net proceeds from time deposits of 15,060 million yen (a 1,994 million yen decrease, yoy), purchase of property, plant and equipment, and intangible assets of 104,308 million yen (a 29,931 million yen increase, yoy), and net purchase of securities of 43,138 million yen (a 1,074 million yen increase, yoy).
With the above factors, the free cash flow for this fiscal year was a negative of 33,693 million yen (a 48,224 million yen increase yoy).
(Cash flows from financing activities)
Net cash used in financing activities was 87,928 million yen (a 25,370 million yen decrease, yoy).
The main factor was the purchase of treasury shares of 30,628 million yen (a 24,401 million yen decrease, yoy).
(4) Outlook for the next fiscal year
We estimate that the FY2024 outlook will remain uncertain, due to the prolonged war in Ukraine and in the Middle East, the trade friction between the U.S. and China, concerns on the economic slowdown by the global monetary tightening in various countries, rising prices, and the impacts from the exchange fluctuations.
Looking by sectors, in the semi-conductor and electrical machinery-related industries, although the current capital investment is sluggish, we see some signs of gradual recovery that we expect to see a full recovery mainly in semi-conductor-related in the mid- to latter half of the year. In the automotive-related industry, we expect EV- related demand increase mainly in Europe and the U.S. In the machine-tool, food machinery and medical equipment-related industries, we expect the demands for automation and labor-savings to increase from shortages in labor.
Within this business environment, the SMC Group sets its mid-term sales target of "JPY 1 Trillion by FY2026" and will strive to achieve by increasing its market share, reduce costs and increase its productivity in each region by making aggressive capital investments, establishing SMC's Business Continuity Plan (BCP) structure, initiating sales expansion activities of its energy-saving products and non-pneumatic instruments, and proposing its customers with solutions such as lowering and reducing the air pressure used throughout the factory.
The consolidated financial results for the next fiscal year are forecasted to be as follows, assuming average exchange rates of the U.S. dollar, the euro, the Chinese yuan against Japanese yen are 146 yen, 158 yen, and 20.50 yen respectively. Net sales 840,000 million yen, operating profit 234,000 million yen, ordinary profit 274,000 million yen and profit attributable to owners of parent 194,000 million yen.
2. Basic concept on selection of accounting standards
In order to maintain the adequacy in figure comparison at all times, SMC Group will continue to disclose consolidated financial statements in accordance with the accounting principles (GAAP) generally adopted in Japan.
We will appropriately consider adopting IFRS through addressing internal and external factors which affect both within and outside of Japan when necessary.
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SMC Corporation
3. Consolidated Financial Statements
(1) Consolidated Balance Sheet
(Millions of yen) | |||
As of March 31, 2023 | As of March 31, 2024 | ||
[ASSETS] | |||
Current assets | |||
Cash and deposits | 603,570 | 511,257 | |
Notes and accounts receivable-trade | 228,848 | 217,671 | |
Securities | 19,926 | 33 | |
Merchandise and finished goods | 165,288 | 197,300 | |
Work in process | 31,388 | 37,236 | |
Raw materials and supplies | 221,925 | 285,021 | |
Other | 53,641 | 60,500 | |
Allowance for doubtful accounts | (740) | (1,030) | |
Total current assets | 1,323,848 | 1,307,990 | |
Non-current assets | |||
Property, plant and equipment | |||
Buildings and structures, net | 123,752 | 148,360 | |
Machinery, equipment and vehicles, net | 52,097 | 68,166 | |
Tools, furniture and fixtures, net | 13,897 | 21,288 | |
Land | 87,746 | 90,484 | |
Construction in progress | 49,501 | 85,258 | |
Total property, plant and equipment | 326,995 | 413,558 | |
Intangible assets | |||
Leasehold interests in land | 11,759 | 11,719 | |
Other | 4,832 | 5,612 | |
Total intangible assets | 16,591 | 17,332 | |
Investments and other assets | |||
Investment securities | 92,420 | 172,436 | |
Retirement benefit asset | 11,639 | 17,492 | |
Insurance funds | 143,902 | 147,188 | |
Deferred tax assets | 7,456 | 10,868 | |
Other | 6,540 | 9,366 | |
Allowance for doubtful accounts | (1,454) | (1,675) | |
Total investments and other assets | 260,505 | 355,677 | |
Total non-current assets | 604,092 | 786,568 | |
Total assets | 1,927,940 | 2,094,559 | |
― 5 ―
SMC Corporation
(Millions of yen) | |||
As of March 31, 2023 | As of March 31, 2024 | ||
[LIABILITIES] | |||
Current liabilities | |||
Notes and accounts payable-trade | 73,636 | 58,818 | |
Short-term borrowings | 7,137 | 7,342 | |
Income taxes payable | 42,435 | 29,316 | |
Provision for bonuses | 5,143 | 5,162 | |
Other | 60,494 | 63,960 | |
Total current liabilities | 188,847 | 164,600 | |
Non-current liabilities | |||
Long-term borrowings | 5,049 | 5,728 | |
Deferred tax liabilities | 16,094 | 21,802 | |
Provision for retirement benefits for directors | 458 | 720 | |
Provision for share awards for directors | 114 | 265 | |
Retirement benefit liability | 7,577 | 8,034 | |
Other | 7,472 | 7,538 | |
Total non-current liabilities | 36,767 | 44,088 | |
Total liabilities | 225,615 | 208,688 | |
[NET ASSETS] | |||
Shareholders' equity | |||
Share capital | 61,005 | 61,005 | |
Capital surplus | 73,342 | 73,342 | |
Retained earnings | 1,596,086 | 1,716,354 | |
Treasury shares | (164,167) | (194,795) | |
Total shareholders' equity | 1,566,266 | 1,655,906 | |
Accumulated other comprehensive income | |||
Valuation difference on available-for-sale securities | 7,573 | 14,777 | |
Foreign currency translation adjustment | 120,275 | 203,508 | |
Remeasurements of defined benefit plans | 4,298 | 7,394 | |
Total accumulated other comprehensive income | 132,146 | 225,680 | |
Non-controlling interests | 3,912 | 4,284 | |
Total net assets | 1,702,325 | 1,885,871 | |
Total liabilities and net assets | 1,927,940 | 2,094,559 |
― 6 ―
SMC Corporation
-
Consolidated Statement of Income and Consolidated Statement of Comprehensive Income
1. Consolidated Statement of Income
(Millions of yen) | ||||
Year ended | Year ended | |||
March 31, 2023 | March 31, 2024 | |||
Net sales | 824,772 | 776,873 | ||
Cost of sales | 403,613 | 413,796 | ||
Gross profit | 421,159 | 363,077 | ||
Selling, general and administrative expenses | 162,958 | 166,851 | ||
Operating profit | 258,200 | 196,226 | ||
Non-operating income | ||||
Interest income | 11,722 | 18,461 | ||
Gain on sale of securities | 2,368 | 6,114 | ||
Foreign exchange gains | 28,203 | 24,486 | ||
Other | 5,722 | 5,900 | ||
Total non-operating income | 48,016 | 54,963 | ||
Non-operating expenses | ||||
Interest expenses | 105 | 82 | ||
Commission for purchase of treasury shares | 20 | 19 | ||
Other | 110 | 79 | ||
Total non-operating expenses | 236 | 180 | ||
Ordinary profit | 305,980 | 251,008 | ||
Extraordinary income | ||||
Gain on sale of non-current assets | 447 | 732 | ||
Gain on sale of investment securities | 3,208 | 1,236 | ||
Other | 7 | − | ||
Total extraordinary income | 3,663 | 1,968 | ||
Extraordinary losses | ||||
Loss on retirement of non-current assets | 352 | 315 | ||
Impairment losses | 35 | − | ||
Extra retirement payments | 370 | − | ||
Other | 109 | 8 | ||
Total extraordinary losses | 867 | 324 | ||
Profit before income taxes | 308,777 | 252,653 | ||
90,677 | ||||
Income taxes-current | 75,995 | |||
Income taxes-deferred | (6,806) | (1,695) | ||
Total income taxes | 83,871 | 74,300 | ||
Profit | 224,905 | 178,353 | ||
Profit attributable to non-controlling interests | 296 | 32 | ||
Profit attributable to owners of parent | 224,609 | 178,321 | ||
― 7 ―
SMC Corporation
2. Consolidated Statement of Comprehensive Income
(Millions of yen) | ||||
Year ended | Year ended | |||
March 31, 2023 | March 31, 2024 | |||
Profit | 224,905 | 178,353 | ||
Other comprehensive income | ||||
Valuation difference on available-for-sale securities | (3,650) | 7,525 | ||
Foreign currency translation adjustment | 32,383 | 83,274 | ||
Remeasurements of defined benefit plans, net of tax | 3,295 | 3,106 | ||
Total other comprehensive income | 32,028 | 93,906 | ||
Comprehensive income | 256,933 | 272,259 | ||
Comprehensive income attributable to: | ||||
Comprehensive income attributable to owners of parent | 256,616 | 271,854 | ||
Comprehensive income attributable to non-controlling interests | 316 | 404 |
― 8 ―
SMC Corporation
(3) Consolidated Statement of Changes in Equity
Previous consolidated fiscal year (from April 1, 2022 to March 31, 2023)
(Millions of yen) | |||||||||||||
Shareholders' equity | |||||||||||||
Retained | Treasury | Total | |||||||||||
Share capital | Capital surplus | shareholders' | |||||||||||
earnings | shares | ||||||||||||
equity | |||||||||||||
Net assets at | 61,005 | 73,335 | 1,430,285 | (109,136) | 1,455,489 | ||||||||
beginning of period | |||||||||||||
Changes during period | |||||||||||||
Dividends of surplus | (58,808) | (58,808) | |||||||||||
Profit attributable to owners | 224,609 | 224,609 | |||||||||||
of parent | |||||||||||||
Purchase of treasury shares | (55,030) | (55,030) | |||||||||||
Change in ownership interest | 6 | 6 | |||||||||||
of parent due to transactions | |||||||||||||
with non-controlling interests | |||||||||||||
Net changes in items other | |||||||||||||
than shareholders' equity | |||||||||||||
Total changes during period | − | 6 | 165,801 | (55,030) | 110,777 | ||||||||
Net assets at end of period | 61,005 | 73,342 | 1,596,086 | (164,167) | 1,566,266 | ||||||||
Accumulated other comprehensive income | |||||||||||||
Valuation | Foreign | Remeasurements | Total | Non-controlling | Total net assets | ||||||||
difference on | currency | accumulated | |||||||||||
of defined | other | interests | |||||||||||
available-for- | translation | benefit plans | comprehensive | ||||||||||
sale securities | adjustment | ||||||||||||
income | |||||||||||||
Net assets at | 11,235 | 87,893 | 1,010 | 100,139 | 3,645 | 1,559,274 | |||||||
beginning of period | |||||||||||||
Changes during period | |||||||||||||
Dividends of surplus | (58,808) | ||||||||||||
Profit attributable to | 224,609 | ||||||||||||
owners of parent | |||||||||||||
Purchase of treasury | (55,030) | ||||||||||||
shares | |||||||||||||
Change in ownership | |||||||||||||
Interest of parent due | 6 | ||||||||||||
to transactions with | |||||||||||||
non-controlling | |||||||||||||
interests | |||||||||||||
Net changes in items | |||||||||||||
other than | (3,662) | 32,381 | 3,288 | 32,007 | 266 | 32,273 | |||||||
shareholders' equity | |||||||||||||
Total changes during | (3,662) | 32,381 | 3,288 | 32,007 | 266 | 143,051 | |||||||
period | |||||||||||||
Net assets at end of | 7,573 | 120,275 | 4,298 | 132,146 | 3,912 | 1,702,325 | |||||||
period | |||||||||||||
― 9 ―
SMC Corporation
Current consolidated fiscal year (from April 1, 2023 to March 31, 2024)
(Millions of yen) | ||||||||
Shareholders' equity | ||||||||
Retained | Treasury | Total | ||||||
Share capital | Capital surplus | shareholders' | ||||||
earnings | shares | |||||||
equity | ||||||||
Net assets at | 61,005 | 73,342 | 1,596,086 | (164,167) | 1,566,266 | |||
beginning of period | ||||||||
Changes during period | ||||||||
Dividends of surplus | (58,052) | (58,052) | ||||||
Profit attributable to owners | 178,321 | 178,321 | ||||||
of parent | ||||||||
Purchase of treasury shares | (30,628) | (30,628) | ||||||
Net changes in items other | ||||||||
than shareholders' equity | ||||||||
Total changes during period | － | − | 120,268 | (30,628) | 89,639 | |||
Net assets at end of period | 61,005 | 73,342 | 1,716,354 | (194,795) | 1,655,906 |
Accumulated other comprehensive income | |||||
Valuation | Foreign | Remeasurements | Total | Non-controlling | |
currency | accumulated | ||||
difference on | of defined | other | interests | ||
available-for- | translation | benefit plans | comprehensive | ||
sale securities | adjustment | ||||
income | |||||
Net assets at | 7,573 | 120,275 | 4,298 | 132,146 | 3,912 |
beginning of period | |||||
Changes during period | |||||
Dividends of surplus | |||||
Profit attributable to | |||||
owners of parent | |||||
Purchase of treasury | |||||
Shares | |||||
Net changes in items | |||||
other than | 7,204 | 83,233 | 3,096 | 93,533 | 372 |
shareholders' equity | |||||
Total changes during | 7,204 | 83,233 | 3,096 | 93,533 | 372 |
Period | |||||
Net assets at end of | 14,777 | 203,508 | 7,394 | 225,680 | 4,284 |
period | |||||
Total net assets
1,702,325
(58,052)
178,321
(30,628)
93,906
183,546
1,885,871
― 10 ―
SMC Corporation
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SMC Corporation published this content on 14 May 2024 and is solely responsible for the information contained therein. Distributed by Public, unedited and unaltered, on 14 May 2024 06:08:47 UTC.
