Summary Financial Statements (Consolidated)
for 2nd Quarter of Fiscal Year 2023 (Year Ending March 31, 2024) (Japan GAAP)
October 27, 2023 | |||||
Company name: | Amano Corporation | Listed on: | TSE | ||
Securities code: | 6436 | URL https://www.amano.co.jp/English/ | |||
Representative: | Manabu Yamazaki, President & Representative Director | ||||
Inquiries: | Kunihiro Ihara, Director & Managing Operating Officer | Phone: +81 (45) 439-1591 | |||
General Manager, Corporate Planning | |||||
Scheduled date for filing of quarterly securities report: November 7, 2023 | |||||
Scheduled date for commencing of dividend payments: December 4, 2023 | |||||
Supplementary explanation materials prepared for quarterly financial results: Yes | |||||
Briefing held on quarterly financial results: Yes (for institutional investors and analysts) | |||||
(Amounts less than 1 million yen are rounded down) | |||||
1. Business results for 2nd Quarter of fiscal year 2023 (April 1, 2023 to September 30, 2023) | |||||
(1) Operating results | (Percentages represent year-on-year changes.) | ||||
Net income attributable | |||||
Net sales | Operating profit | Ordinary profit | to owners of the parent | ||
company |
2Q of FY 2023 (year ending March 2024)
2Q of FY 2022 (year ended March 2023)
Note: Comprehensive income
2Q of FY 2023 (year ending March 2024)
2Q of FY 2022 (year ended March 2023)
Millions of yen | % | Millions of yen | % | Millions of yen | % | Millions of yen | % |
70,163 | 16.1 | 8,012 | 43.0 | 8,609 | 37.9 | 5,557 | 50.1 |
60,455 | 9.3 | 5,604 | 24.3 | 6,244 | 25.6 | 3,703 | 15.1 |
2nd Quarter of FY 2023 (year ending March 2024): ¥10,351 million (24.7%) | |||||||
2nd Quarter of FY 2022 (year ended March 2023): ¥8,303 million (70.6%) | |||||||
Net income per share | Diluted net income per | ||||||
share | |||||||
Yen | Yen | ||||||
76.84 | ― | ||||||
50.52 | ― |
- Financial position
2Q of FY 2023 (as of September 30, 2023)
FY 2022 (as of March 31, 2023)
Reference: Equity capital
Total assets | Net assets | Equity ratio | Net assets per share |
Millions of yen | Millions of yen | % | Yen |
176,912 | 121,946 | 68.7 | 1,694.54 |
171,250 | 121,638 | 70.5 | 1,656.43 |
2nd Quarter of FY 2023 (as of September 30, 2023): ¥121,511 million
FY 2022 (as of March 31, 2023): ¥120,756 million
2. Dividends
FY 2022 (year ended March 2023)
FY 2023 (year ending March 2024)
FY 2023 (year ending March 2024) (est.)
Annual dividends | ||||
First quarter-end | 2nd Quarter-end | Third quarter-end | Year-end | Total |
Yen | Yen | Yen | Yen | Yen |
― | 30.00 | ― | 80.00 | 110.00 |
― | 40.00 | |||
― | 80.00 | 120.00 |
Note: Revisions to most recently released dividend forecast: None
3. Forecast earnings for fiscal year 2023 (April 1, 2023 to March 31, 2024)
(Percentages represent year-on-year changes.)
Net income attributable
Net sales Operating profit Ordinary profit to owners of the parent Net income per share
company
Millions of yen | % | Millions of yen | % | Millions of yen | % | Millions of yen | % | Yen | |
Full year | 140,000 | 5.4 | 17,700 | 12.1 | 18,500 | 9.1 | 12,500 | 10.7 | 174.32 |
Note: Revisions to most recently released earnings forecast: None
Notes
- Significant changes among subsidiaries during the fiscal year under review (i.e. changes among specific subsidiaries resulting in a change in the scope of consolidation)
- Application of accounting procedures specific to the preparation of the consolidated quarterly financial statements
- Changes to accounting policy, changes to accounting forecasts, and restatements
[1] | Changes arising from revision of accounting standards | : | None |
[2] | Changes to accounting policy other than those in [1] above | : | None |
[3] | Changes to accounting forecasts | : | None |
[4] | Restatements | : | None |
(4) Number of shares issued and outstanding (common stock)
[1] | Number of shares issued and outstanding at the end | As of 2Q ended |
of the period (including treasury stock) | September 30, 2023 | |
[2] | Number of shares of treasury stock at the end of the | As of 2Q ended |
period | September 30, 2023 | |
[3] | Average number of shares outstanding (over the | As of 2Q ended |
fiscal year under review up to September 30, 2023) | September 30, 2023 |
76,657,829 shares
3,756,315 shares
73,307,073 shares
Note: The number of shares of treasury stock as of September 30, 2023, includes the Company's shares held by the Director's Compensation BIP Trust and the Employee Stock Ownership Plan (J-ESOP) (796,484 shares as of September 30, 2023 and 398,219 shares as of March 31, 2023 respectively).
In addition, these Company's shares are included in the treasury stock which is deducted in calculating the average number of shares during the period.
Note: These quarterly Summary Financial Statements are not subject to the quarterly review procedures.
Note: Explanation concerning appropriate use of the earnings forecast, and other matters to note Caution regarding forward-lookingstatements
Earnings forecasts and other forward-looking statements contained in this document are based on information available at the time of preparing this document and on certain assumptions that are deemed to be reasonable. A variety of factors could cause actual results to differ significantly from the forecasts. For information on the earnings forecasts, please refer to "1. Qualitative Information on Consolidated Financial Results for the Current Quarter (3) Explanation of Forward-looking Information, including the Outlook for Consolidated Operating Results" on page 7 of the attached document.
Obtaining supplementary financial results materials and information on the scheduled financial results briefingSupplementary financial results materials are disclosed via TDnet on the same day as the date of this document. Also, a financial results briefing for institutional investors and analysts is scheduled for Tuesday, October 31, 2023. On the same day, the financial results materials to be distributed at this briefing are due to be published on the Amano Corporation website.
- Table of Contents for Attachment
1. | Qualitative Information on Consolidated Financial Results for the Current Quarter | 2 | |
(1) | Explanation of Business Results | 2 | |
(2) | Explanation of Financial Condition | 6 |
- Explanation of Forward-looking Information, including Outlook for Consolidated Operating
Results | 7 | ||
(4) | Basic Policy on Distribution of Profits and Payment of Dividends for This Second Quarter | 7 | |
2. | Consolidated Quarterly Financial Statements and Primary Explanatory Notes | 8 | |
(1) | Consolidated Quarterly Balance Sheets | 8 |
- Consolidated Quarterly Statements of Income and Consolidated Quarterly Statements of
Comprehensive Income | 10 |
(3) Consolidated Quarterly Statements of Cash Flows | 12 |
(4) Notes on Quarterly Consolidated Financial Statements | 14 |
Notes Regarding the Premise of a Going Concern | 14 |
Notes on Significant Changes in Shareholders' Equity | 14 |
Application of Accounting Procedures Specific to the Preparation of the Consolidated Quarterly Financial | |
Statements | 14 |
Additional information | 14 |
Segment Information | 15 |
Significant Subsequent Events | 15 |
1
1. Qualitative Information on Consolidated Financial Results for the Current Quarter
-
Explanation of Business Results
During the second quarter of the current consolidated cumulative period, the Japanese economy showed signs of recovery as economic activity normalized, but the economic outlook remains uncertain due to factors such as concerns about an economic slowdown overseas, the continued rise in various prices, and the impact of exchange rate fluctuations, etc.
Under this business environment, in our 9th Medium-Term Business Plan that started in April 2023, we the Amano Group set forth the management concept of "The 4th Stage Towards a 100-yearCompany-Initiatives for a Paradigm Shift Leading to Sustainable Management" in which we will promote DX in each business field and execute strategic investments in software-based assets, IoT, AI, etc., and further enhance our competitive advantage in terms of profitability. Furthermore, we will proactively work to solve social issues.
As a result, during the second quarter under review, net sales were ¥70,163 million (up 16.1% year-on-year), operating profit was ¥8,012 million (up 43.0% yoy), ordinary profit was ¥8,609 million (up 37.9% yoy), and net income attributable to owners of the parent company was ¥5,557 million (up 50.1% yoy).
Main factors behind the business results - At non-consolidated Amano, Parking Systems sales grew significantly indicating that the recovery trend is clearly positive. Clean Systems sales also increased significantly due to stronger sales of robotic floor scrubbers. Information Systems sales increased, reversing the decline in sales in the first quarter. Environmental Systems sales of standard dust collectors declined due to the impact of lower orders for machine tools, but large-scale systems sales grew, resulting positive overall sales.
- In domestic group companies, the consigned parking lot management service business performed well, exceeding pre-COVID results, and the cloud service business for T&A also continued to grow. The digital time stamp business continued to perform well, meeting the needs to respond to the requirements under the revised Electronic Books Preservation Act.
- In overseas markets, sales increased in North America, Europe, and Asia. In North America, Parking Systems sales increased due to the effect of new products, and earnings are also improving. In Europe, Information Systems sales performed well and grew significantly. In Asia, Parking Systems sales continued to grow in South Korea and Hong Kong.
The following are business results by segment: | ||||||
Sales by business division | (Millions of yen) | |||||
2Q of FY 2022 | 2Q of FY 2023 | Change | ||||
Category | (year ended March 2023) | (year ending March 2024) | ||||
Amount | Ratio (%) | Amount | Ratio (%) | Amount | % | |
Time Information System business: | ||||||
Information Systems | 14,596 | 24.1 | 16,187 | 23.1 | 1,590 | 10.9 |
Time Management Products | 1,305 | 2.2 | 1,241 | 1.8 | (64) | (4.9) |
Parking Systems | 28,805 | 47.7 | 35,106 | 50.0 | 6,301 | 21.9 |
Subtotal | 44,707 | 74.0 | 52,535 | 74.9 | 7,827 | 17.5 |
Environment System business: | ||||||
Environmental Systems | 9,263 | 15.3 | 10,803 | 15.4 | 1,539 | 16.6 |
Clean Systems | 6,484 | 10.7 | 6,824 | 9.7 | 340 | 5.3 |
Subtotal | 15,747 | 26.0 | 17,628 | 25.1 | 1,880 | 11.9 |
Total | 60,455 | 100.0 | 70,163 | 100.0 | 9,707 | 16.1 |
2
Time Information System business | |
Information Systems: | Time & Attendance (T&A), Human Resources (HR) systems, |
payroll information systems, access control, and digital time stamps | |
Time Management Products: | PC-linked time recorders, online time recorders, and time stamps |
Parking Systems: | Parking lot management systems, bicycle parking lot management |
systems, and consigned parking lot management service |
The sales in this business totaled ¥52,535 million, up by ¥7,827 million (17.5%) year-on-year. The following is a breakdown of sales by business division.
• Information Systems ¥16,187 million (up 10.9% year-on-year)
Domestic sales for the current term were as follows. For non-consolidated Amano, software sales increased by ¥118 million (2.7%) due to a continuing recovery trend in orders for small to medium-sized businesses, hardware sales increased by ¥188 million (16.7%), and sales generated by maintenance contracts and supplies services decreased by ¥59 million (2.7%) year-on-year. The cloud services developed by Amano Business Solutions Corporation continued to perform strongly.
Overall overseas sales increased by ¥1,288 million (20.7%), because sales for both Accu-Time Systems, Inc. in North America and Horoquartz S.A. in Europe increased.
• Time Management Products ¥1,241 million (down 4.9% year-on-year)
Overall domestic sales for the current term increased by ¥21 million (2.2%) year-on-year as the sales of standard time recorders including exports increased, although sales of PC-linked time recorders decreased.
Overall overseas sales decreased by ¥78 million (21.1%) as sales in North America and Asia decreased.
• Parking Systems ¥35,106 million (up 21.9% year-on-year)
Domestic sales for the current term were as follows. For non-consolidated Amano, domestic parking lot management systems sales increased by ¥1,947 million (38.2%) due to a recovery trend, while sales generated by maintenance contracts and supplies services increased by 346 million (7.4%). Sales continued to increase in the consigned parking lot management service business operated by Amano Management Service. As a result of the continued investment by them, the number of parking spaces under management increased by 20,500 (3.0%) from the end of the previous fiscal year.
Overall overseas sales increased by ¥3,995 million (30.4%) due to the increase in the sales of Amano McGann, Inc. in North America and the increase in sales of the consigned parking lot management service business in Korea and Hong Kong in Asia.
Environment System business | |
Environmental Systems: | Standard dust collectors, mist collectors, large dust collectors, pneumatic |
conveyors, deodorizing equipment, and industrial air purifiers | |
Clean Systems: | Industrial vacuum cleaners, automatic floor scrubbers, robotic floor |
scrubbers, wooden floor polishers, consigned janitorial management services, | |
and electrolyzed water generators |
The sales in this business totaled ¥17,628 million, up by ¥1,880 million (11.9%) year-on-year. The following is a breakdown of sales by business division.
• Environmental Systems ¥10,803 million (up 16.6% year-on-year)
During the current term for non-consolidated Amano, domestic sales of standard dust collectors decreased by ¥35 million (1.0%). On the other hand, sales of large-scale systems increased by ¥997 million (46.6%), while sales generated by maintenance contracts and supplies services increased by ¥119 million (5.7%) year-on-year.
3
Overall overseas sales increased by ¥422 million (29.4%) as sales in Asia increased due to a recovery in mainly Thailand.
• Clean Systems ¥6,824 million (up 5.3% year-on-year)
During the current term for non-consolidated Amano, overall domestic sales of cleaning equipment increased by ¥248 million (26.0%) due to increase in sales of robotic floor scrubbers, and domestic sales generated by maintenance contracts and supplies services increased by ¥2 million (0.2%) year-on-year.
Overall overseas sales increased by ¥85 million (2.1%) as Amano Pioneer Eclipse Corporation in North America achieved the increase in sales.
4
Reference information | ||||||||
Information by area | (Millions of yen) | |||||||
Net sales | Operating profit/loss | |||||||
2Q of | 2Q of | Percentage | 2Q of | 2Q of | Percentage | |||
FY 2022 | FY 2023 | FY 2022 | FY 2023 | |||||
Change | change | Change | change | |||||
(year ended | (year ending | (year ended | (year ending | |||||
(%) | (%) | |||||||
March 2023) March 2024) | March 2023) March 2024) | |||||||
Japan | 35,628 | 39,694 | 4,065 | 11.4 | 6,663 | 7,887 | 1,224 | 18.4 |
Other Asia | 11,289 | 14,606 | 3,316 | 29.4 | 584 | 1,047 | 462 | 79.2 |
North | 9,142 | 10,160 | 1,018 | 11.1 | (541) | (56) | 484 | ― |
America | ||||||||
Europe | 5,095 | 6,399 | 1,304 | 25.6 | 659 | 947 | 288 | 43.7 |
Total | 61,155 | 70,860 | 9,704 | 15.9 | 7,366 | 9,826 | 2,459 | 33.4 |
Eliminations/ | (700) | (697) | ― | ― | (1,761) | (1,814) | ― | ― |
Corporate | ||||||||
Consolidated | 60,455 | 70,163 | 9,707 | 16.1 | 5,604 | 8,012 | 2,407 | 43.0 |
Notes: 1. The national and regional demarcations are based on the degree of geographical proximity.
2. Major countries and territories included in areas other than Japan:
- Other Asia: Singapore, Thailand, Malaysia, Indonesia, South Korea, China, Philippines, and Vietnam
- North America: United States, Canada and Mexico
- Europe: France, Belgium and Spain
Overseas sales
Overseas sales | ||||
2Q of | 2Q of | Percentage | ||
FY 2022 | FY 2023 | |||
Change | change | |||
(year ended | (year ending | |||
(%) | ||||
March 2023) | March 2024) | |||
Other Asia | 11,402 | 14,645 | 3,243 | 28.4 |
North America | 8,520 | 9,598 | 1,078 | 12.7 |
Europe | 4,980 | 6,194 | 1,213 | 24.4 |
Other regions | 517 | 593 | 76 | 14.8 |
Total | 25,420 | 31,032 | 5,611 | 22.1 |
Consolidated net | 60,455 | 70,163 | ||
sales | ||||
(Millions of yen)
Proportion of consolidated net sales accounted
for by overseas sales (%)
2Q of | 2Q of | |
FY 2022 | FY 2023 | Change |
(year ended | (year ending | |
March 2023) | March 2024) | |
18.9 | 20.9 | 2.0 |
14.1 | 13.7 | (0.4) |
8.2 | 8.8 | 0.6 |
0.8 | 0.8 | 0.0 |
42.0 | 44.2 | 2.2 |
Notes: 1. The national and regional demarcations are based on the degree of geographical proximity.
- Major countries and territories included in areas other than Japan:
- Other Asia: Singapore, Thailand, Malaysia, Indonesia, South Korea, China, Philippines, and Vietnam
- North America: United States and Canada
- Europe: France, Belgium and Spain
- Other regions: Central and South America
- Overseas sales comprise sales by Amano Corporation and our consolidated subsidiaries to countries and regions other than Japan.
5
- Explanation of Financial Condition
- Assets, liabilities, and net assets
Total assets amounted to ¥176,912 million (up ¥5,661 million from the previous consolidated fiscal year-end).
- Current assets: an increase of ¥367 million due to increases in merchandise and finished goods, and raw materials and supplies, etc.
- Fixed assets: an increase of ¥5,294 million due to increases in lease assets (net), and investment securities, etc.
Total liabilities amounted to ¥54,966 million (up ¥5,354 million from the previous consolidated fiscal year-end).
- Current liabilities: an increase of ¥3,477 million due to an increase in lease liabilities, etc.
- Long-termliabilities: an increase of ¥1,876 million due to an increase in lease liabilities, etc.
Net assets amounted to ¥121,946 million (up ¥307 million from the previous consolidated fiscal year-end).
- Shareholders' equity: a decrease of ¥3,960 million due to dividends paid and acquisition of treasury stock, etc.
- Accumulated other comprehensive income: an increase of ¥4,715 million due to an increase in foreign currency translation adjustments, etc.
(ii) Cash flows
Consolidated cash and cash equivalents decreased by ¥6,123 million from the previous fiscal year-end, to a total of ¥48,961 million at the end of the first half. More specifically, the status of each type of cash flow during the first half and the underlying factors are as follows:
Net cash provided by operating activities totaled ¥10,366 million (an increase in income of ¥1,280 million year- on-year).
• Main income factors:
Posting of income before income taxes amounting to ¥8,524 million and posting of depreciation and amortization amounting to ¥4,855 million.
Posting of a decrease in trade notes and accounts receivable and contract assets amounting to ¥1,402 million.
• Main expenditure factors:
Posting of income taxes paid amounting to ¥3,462 million and posting of an increase in inventories amounting to ¥1,822 million.
Net cash used in investing activities totaled −¥5,242 million (an increase in cash outflow of ¥3,424 million year- on-year).
• Main income factors:
Posting of proceeds from withdrawal of time deposits amounting to ¥7,191 million.
• Main expenditure factors:
Posting of increase in time deposits amounting to ¥8,380 million and payment for purchase of tangible fixed assets amounting to ¥1,605 million
Payment for acquisition of intangible fixed assets amounting to ¥1,155 million and payment for acquisition of subsidiary shares involving change to the scope of consolidation amounting to ¥1,136 million.
Net cash used in financing activities amounted to −¥12,575 million (an increase in cash outflow of ¥3,193 million year-on-year).
• Main income factors:
Posting of proceeds from sale and leaseback amounting to ¥1,005 million.
• Main expenditure factors:
Posting of dividends paid amounting to ¥5,863 million and posting of payment for acquisition of treasury stock amounting to ¥3,716 million.
Posting of repayments of lease obligations amounting to ¥3,475 million.
6
- Explanation of Forward-looking Information, including the Outlook for Consolidated Operating Results Although the second quarter of consolidated fiscal year ended with significant increase both in sales and operating profit compared to the same period of the previous year, considering the changes in the business environment in countries with recessionary concerns and heightened geopolitical risks, we will not change the full-year earnings forecast for the fiscal year ending March 31, 2024, which were announced on April 26, 2023. However, based on the future business environment, we plan to review the numerical plan in a timely manner.
- Basic Policy on Distribution of Profits and Payment of Dividends for This Second Quarter
Amano Corporation places great importance on our policy of paying dividends to shareholders. Our fundamental policy to return profits to shareholders is to continue to make stable ordinary dividend payments, make appropriate performance-based distributions, and buy back shares, as it deems necessary. We aim to maintain a dividend payout ratio of at least 40% on a consolidated basis, a total return ratio of at least 55%, and a net asset dividend rate of at least 2.5%.
In line with this policy, taking into account the current business performance, we plan to pay an interim dividend of ¥40 per share, which an increase of ¥5 per share from the previous forecast announced on April 26, 2023.
7
2. Consolidated Quarterly Financial Statements and Primary Explanatory Notes
(1) Consolidated Quarterly Balance Sheets
(Millions of yen) | ||
(as of March 31, 2023) | (as of September 30, 2023) | |
Assets | ||
Current assets | ||
Cash and bank deposits | 62,399 | 58,940 |
Notes and accounts receivable-trade and contract assets | 30,958 | 30,591 |
Marketable securities | 3,357 | 3,062 |
Merchandise and finished goods | 4,663 | 6,120 |
Work in process | 791 | 1,173 |
Raw materials and supplies | 7,956 | 8,855 |
Other current assets | 4,112 | 5,872 |
Allowance for doubtful accounts | (491) | (500) |
Total current assets | 113,749 | 114,116 |
Fixed assets | ||
Tangible fixed assets | ||
Buildings and structures (net) | 8,597 | 8,462 |
Machinery and vehicles (net) | 892 | 855 |
Tools, furniture and fixtures (net) | 2,281 | 2,546 |
Land | 5,846 | 5,745 |
Lease assets (net) | 11,153 | 13,781 |
Construction in progress | 364 | 424 |
Total tangible fixed assets | 29,135 | 31,816 |
Intangible fixed assets | ||
Goodwill | 1,214 | 2,111 |
Software | 3,194 | 3,327 |
Software in progress | 702 | 866 |
Other | 1,729 | 1,749 |
Total intangible fixed assets | 6,840 | 8,054 |
Investments and other assets | ||
Investment securities | 14,974 | 16,533 |
Claims in bankruptcy and similar claims | 458 | 466 |
Fixed leasehold deposits | 1,661 | 1,775 |
Net defined benefit assets | 115 | 115 |
Deferred tax assets | 2,591 | 2,060 |
Other | 2,194 | 2,450 |
Allowance for doubtful accounts | (470) | (477) |
Total investments and other assets | 21,525 | 22,925 |
Total fixed assets | 57,501 | 62,796 |
Total assets | 171,250 | 176,912 |
8
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Amano Corporation published this content on 01 November 2023 and is solely responsible for the information contained therein. Distributed by Public, unedited and unaltered, on 21 November 2023 11:00:14 UTC.