ESPEC CORP. Financial Accounting Standards Foundation Member
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.
February 10, 2022
Consolidated Financial Results | |
for the Nine Months Ended December 31, 2021 | |
(Under Japanese GAAP) | |
Company name: | ESPEC CORP. |
Listing: | Tokyo Stock Exchanges, First Section |
Securities code: | 6859 |
URL: | https://www.espec.co.jp |
Representative: | Masaaki Ishida, President |
Inquiries: | Keiji Oshima, Chief Officer of Corporate Control Headquarters |
Telephone: | +81-6-6358-4741 |
Scheduled date to file quarterly securities report: | February 14, 2022 |
Preparation of supplementary material on quarterly financial results: | Yes |
Holding of quarterly financial results briefing: | None |
(Yen amounts are rounded down to millions, unless otherwise noted.)
1. Consolidated financial results for the nine months ended December 31, 2021 (from April 1, 2021 to December 31, 2021)
(1) Consolidated operating results (cumulative)
(Percentages indicate year-on-year changes.)
Net sales | Operating profit | Ordinary profit | Profit attributable to | ||||||
owners of parent | |||||||||
Nine months ended | Millions of yen | % | Millions of yen | % | Millions of yen | % | Millions of yen | % | |
December 31, 2021 | 28,131 | 6.1 | 1,172 | (11.9) | 1,386 | (7.0) | 834 | (11.6) | |
December 31, 2020 | 26,526 | (11.0) | 1,330 | (52.7) | 1,491 | (50.1) | 943 | (55.0) | |
Note: Comprehensive income For the nine months ended December 31, 2021 | ¥ 1,433 million (5.0) % | |||||
For the nine months ended December 31, 2020 | ¥ 1,508 million (31.3) % | |||||
Basic earnings | Diluted earnings | |||||
per share | per share | |||||
Nine months ended | Yen | Yen | ||||
December 31, 2021 | 37.12 | - | ||||
December 31, 2020 | 41.27 | - | ||||
Note: The Company has applied the "Accounting Standard for Revenue Recognition" (ASBJ Statement No. 29, March 31, 2020) from the beginning of the first quarter of fiscal 2021 ending March 31, 2022, and the figures for the nine months ended December 31, 2021 are shown after the application of this accounting standard.
(2) Consolidated financial position
Total assets | Net assets | Equity-to-asset ratio | Net assets per share | |||
As of | Millions of yen | Millions of yen | % | Yen | ||
December 31, 2021 | 59,398 | 44,205 | 74.1 | 1,966.65 | ||
March 31, 2021 | 58,607 | 44,984 | 76.8 | 1,967.34 | ||
Reference: Equity | ||||||
As of December 31, 2021 | ¥43,996 million | |||||
As of March 31, 2021 | ¥44,984 million |
2. Cash dividends
Annual dividends per share | |||||||
First quarter-end | Second quarter-end | Third quarter-end | Fiscal year-end | Total | |||
Yen | Yen | Yen | Yen | Yen | |||
Fiscal year ended | - | 10.00 | - | 41.00 | 51.00 | ||
March 31, 2021 | |||||||
Fiscal year ending | - | 18.00 | - | ||||
March 31, 2022 | |||||||
Fiscal year ending | |||||||
March 31, 2022 | 42.00 | 60.00 | |||||
(Forecast) | |||||||
Note: Revisions to the forecast of cash dividends most recently announced: None |
3. Forecast of consolidated operating results for the fiscal year ending March 31, 2022 (From April 1, 2021 to March 31, 2022) (Percentages indicate year-on-year changes.)
Net sales | Operating profit | Ordinary profit | Profit attributable to | Basic earnings | |||||
owners of parent | per share | ||||||||
Fiscal year ending | Millions of yen | % | Millions of yen | % | Millions of yen | % | Millions of yen | % | Yen |
March 31, 2022 | 42,200 | 9.1 | 2,400 | (6.7) | 2,600 | (8.5) | 1,900 | (3.1) | 84.62 |
Note: Revisions to the forecast of consolidated operating results most recently announced: Yes
For the consolidated financial forecast, please see the "Notice Concerning Revisions to Consolidated Full-Year Financial Results Forecasts for the Fiscal Year Ending March 31, 2022" issued on February 10, 2022.
*Notes
(1) Changes in significant subsidiaries during the period
(changes in specified subsidiaries resulting in the change in scope of consolidation): None
Newly included: (Company name: | ) |
Excluded: (Company name: ) |
(2) Adoption of accounting treatment specific to the preparation of quarterly consolidated financial statements: Yes
For details, see "Application of special accounting methods in the creation of quarterly consolidated financial statements" on p.8.
- Changes in accounting policies, changes in accounting estimates, and restatement
- Changes in accounting policies due to revisions to accounting standards and other regulations: Yes
- Changes in accounting policies due to other reasons: None
- Changes in accounting estimates: None
- Restatement: None
For details, see "Changes in accounting policies" on p.8.
- Number of issued shares (common shares)
- Total number of issued shares at the end of the period (including treasury shares)
As of December 31, 2021 | 23,781,394 shares | |
As of March 31, 2021 | 23,781,394 shares | |
2) Number of treasury shares at the end of the period | ||
As of December 31, 2021 | 1,410,246 shares | |
As of March 31, 2021 | 915,593 shares |
3) Average number of shares outstanding during the period（cumulative from the beginning of the fiscal year）
Nine months ended December 31, 2021 | 22,480,482 shares |
Nine months ended December 31, 2020 | 22,865,991 shares |
- Quarterly financial results reports are exempt from quarterly review conducted by certified public accountants or an audit corporation.
- Proper use of earnings forecasts, and other special matters
Statements concerning the future such as the results forecasts, etc., included in this document are based on currently available information and certain assumptions judged reasonable and actual results, etc., may differ due to various factors. Please refer to "Description of consolidated operating forecasts and other forward-looking information" on p.3 for forecast assumptions and notes of caution for usage.
1. Qualitative information concerning consolidated financial results --------------------------------------------------------------------------------- | 2 |
(1) Description of operating results ------------------------------------------------------------------------------------------------------------------------ | 2 |
(2) Description of financial position ----------------------------------------------------------------------------------------------------------------------- | 3 |
(3) Description of consolidated operating forecasts and other forward-looking information ------------------------------------------------------ | 3 |
2. Quarterly consolidated financial statements and significant notes --------------------------------------------------------------------------------- | 4 |
(1) Quarterly consolidated balance sheets ---------------------------------------------------------------------------------------------------------------- | 4 |
(2) Quarterly consolidated statements of income and quarterly consolidated statements of comprehensive income --------------------------- | 6 |
Quarterly consolidated statements of income | |
(Nine months ended December 31, 2021) ---------------------------------------------------------------------------------------------------------- | 6 |
Quarterly consolidated statements of comprehensive income | |
(Nine months ended December 31, 2021) ---------------------------------------------------------------------------------------------------------- | 7 |
(3) Notes to the quarterly consolidated financial statements ------------------------------------------------------------------------------------------- | 8 |
Notes on the assumption of a going concern --------------------------------------------------------------------------------------------------------- | 8 |
Notes on significant changes in shareholders' equity ----------------------------------------------------------------------------------------------- | 8 |
Application of special accounting methods in the creation of quarterly consolidated financial statements --------------------------------- | 8 |
Changes in accounting policies ------------------------------------------------------------------------------------------------------------------- | 8 |
Additional information ------------------------------------------------------------------------------------------------------------------------------ | 8 |
Segment information ------------------------------------------------------------------------------------------------------------------------------------ | 9 |
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1. Qualitative Information concerning consolidated financial results
Forward-looking statements contained herein are based on the Group's judgment as of December 31, 2021. The Company has applied the "Accounting Standard for Revenue Recognition" (ASBJ Statement No. 29, March 31, 2020) from the beginning of the first quarter of fiscal 2021, the year ending March 31, 2022, and the figures for the nine months ended December 31, 2021 are shown after the application of this accounting standard.
(1) Description of operating results
During the nine months ended December 31, 2021, the Japanese economy saw economic activity increasingly return to normal, supported by broad distributing COVID-19 vaccinations, in addition to a recovery trend in the Chinese, Europe and U.S. economies. However, concerns emerged about the economic impact of surging prices for raw materials and supplies and shortages in semiconductor and electronic components, disruptions to logistics networks and, furthermore, the outbreak of a new variant strain in Japan.
Among the Group's main customers, investments were strong in relation to electronics, and automobile-related investments were also firm, underpinned by digitization and decarbonization in society. The Group's initiatives included strengthening activities centered on markets related to 5G and IoT where investment is likely to expand and markets related to automated driving and electrification of automobiles. Orders received have been brisk. On the manufacturing front, delays in the procurement of electronic components and other items continued to occur. In response, the Group kept on implementing countermeasures such as procuring alternatives and making design changes.
As a result, in the consolidated results for the nine months ended December 31, 2021, the amount of orders received increased 41.2% year on year to ¥38,752 million. However, net sales were held to an increase of only 6.1% to ¥28,131 million. This result mainly reflected impacts such as longer product delivery times due to component shortages. On the earnings front, operating profit decreased 11.9% year on year to a profit of ¥1,172 million, driven by increase of sales, general, and administrative expenses. Profit attributable to owners of parent decreased 11.6% year on year to ¥834 million.
Previous consolidated | This consolidated | |||||||
3rd quarter (fiscal 2020) | 3rd quarter (fiscal 2021) | Change (%) | ||||||
(Millions of yen) | (Millions of yen) | |||||||
Orders received | 27,448 | 38,752 | 41.2 | |||||
Net sales | 26,526 | 28,131 | 6.1 | |||||
Operating profit | 1,330 | 1,172 | (11.9) | |||||
Ordinary profit | 1,491 | 1,386 | (7.0) | |||||
Profit attributable to owners of parent | 943 | 834 | (11.6) | |||||
Performance by segment | ||||||||
This consolidated 3rd quarter (Fiscal 2021) | ||||||||
Orders received | Net sales | Operating profit (loss) | ||||||
(Millions of yen) | (Millions of yen) | (Millions of yen) | ||||||
Equipment business | 33,007 | 23,237 | 951 | |||||
Service business | 4,993 | 4,472 | 311 | |||||
Other business | 956 | 612 | (89) | |||||
Elimination | (205) | (190) | (0) | |||||
Total | 38,752 | 28,131 | 1,172 | |||||
Equipment business
In the environmental test chambers field, particularly the Japanese market, orders received increased year on year both for versatile standardized products and customized products, but net sales decreased. In overseas markets, orders received were strong. Net sales increased year on year in China, North America, Europe, Southeast Asia and Taiwan, but decreased in South Korea.
In the energy devices equipment field, both orders received and net sales increased year on year and orders were acquired for evaluation systems for secondary batteries due to recovery in automotive-related investment.
In the semiconductor equipment field, orders received were on a par with the same period of the previous fiscal year while investment related to memory and automobiles continued, but net sales decreased.
As a result, the equipment business on the whole saw orders received increase 47.8% to ¥33,007 million and net sales increase 12.0% year on year to ¥23,237 million. On the profit front, operating profit decreased 11.4% year on year to ¥951 million mainly due to an increase in selling, general and administrative expenses.
Previous consolidated | This consolidated | ||
3rd quarter (fiscal 2020) | 3rd quarter (fiscal 2021) | Change (%) | |
(Millions of yen) | (Millions of yen) | ||
Orders received | 22,340 | 33,007 | 47.8 |
Net sales | 20,745 | 23,237 | 12.0 |
Operating profit | 1,073 | 951 | (11.4) |
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Service business
In the after-sales service and engineering field, both orders received and net sales increased year on year, due to a strong performance in preventive maintenance services such as maintenance agreements.
In laboratory testing services and facility rentals, both orders received and net sales increased year on year as laboratory testing services, centered on automotive-related matters, recovered in Japan, and performed steadily in China.
As a result, the service business on the whole saw orders received increase 9.3% year on year to ¥4,993 million and net sales increase 8.7% to ¥4,472 million. On the profit front, operating profit was ¥311 million, an increase of 63.1% year on year due to an increase in net sales.
Previous consolidated | This consolidated | ||
3rd quarter (fiscal 2020) | 3rd quarter (fiscal 2021) | Change (%) | |
(Millions of yen) | (Millions of yen) | ||
Orders received | 4,567 | 4,993 | 9.3 |
Net sales | 4,114 | 4,472 | 8.7 |
Operating profit | 191 | 311 | 63.1 |
Other business
In the other business, which is centered on the environmental preservation and plant factory businesses, orders received increased 22.9% year on year to ¥956 million, due to an increase in orders received for forest and waterside creation, and capturing orders for plant factories. Net sales decreased 66.9% year on year to ¥612 million because of a large plant factory project in the same period of the previous fiscal year. The segment posted an operating loss of ¥89 million, which marked a deterioration of ¥154 million year on year.
Previous consolidated | This consolidated | ||
3rd quarter (fiscal 2020) | 3rd quarter (fiscal 2021) | Change (%) | |
(Millions of yen) | (Millions of yen) | ||
Orders received | 778 | 956 | 22.9 |
Net sales | 1,848 | 612 | (66.9) |
Operating profit (loss) | 64 | (89) | - |
- There are marked seasonal fluctuations in the Group's performance based on quarterly sales because of a strong trend toward contractual deliveries occurring in the 2nd and 4th consolidated quarters as a result of customers' budget implementation.
(2) Description of financial position
Total assets at the end of the third quarter consolidated accounting period were ¥59,398 million, an increase of ¥790 million over the end of the previous consolidated fiscal year. Major factors included a decrease of ¥2,933 million resulting from recovery of trade receivables (notes and accounts receivable-trade, contract assets, and electronically recorded monetary claims-operating) recorded at the end of the previous fiscal year, and an increase of ¥3,978 million in inventories such as work in process owing to an increase in order backlog, and a decrease of ¥167 million in property, plant and equipment. Liabilities were ¥15,193 million, an increase of ¥1,570 million from the end of the previous consolidated fiscal year. Major factors included an increase of ¥1,436 million in other current liabilities owing to an increase in orders received. Net assets were ¥44,205 million, a decrease of ¥779 million from the end of the previous fiscal year. Major factors included a decrease of ¥1,055 million due to the acquisition of treasury shares in accordance with a flexible capital policy in response to changes in the business environment and an increase of ¥208 million in non-controlling interests.
(3) Description of consolidated operating forecasts and other forward-looking information
The Company has revised its consolidated full-year financial forecast for fiscal 2021, the year ending March 31, 2022, from the forecast announced on August 6, 2021. For details, please refer to the "Notice Concerning Revisions to Consolidated Full-Year Financial Results Forecasts for the Fiscal Year Ending March 31, 2022" announced on February 10, 2022.
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Espec Corporation published this content on 21 February 2022 and is solely responsible for the information contained therein. Distributed by Public, unedited and unaltered, on 21 February 2022 06:10:11 UTC.
