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Disclaimer: This is a Japanese-English translation of the summary of financial statements of the Company produced for your convenience. Since no auditor audited this report, officially only the Japanese version is assumed to be the summary of financial statements of the Company. This summary does not constitute any guarantee and the Company will not compensate any losses and/or damage stemming from actions taken based on these statements. Should there be any discrepancy between the Japanese and English versions, the Japanese version is assumed to be correct.
April 11, 2022
Consolidated Financial Results for the Third Quarter of the Fiscal Year Ending May 31, 2022
Listed company: INTER ACTION Corporation
Listed stock exchange: Tokyo
Securities code: | 7725 |
URL: | https://www.inter-action.co.jp/en/ |
Representative: | Nobuo Kiji, CEO & President |
Contact: | Kaori Kawaguchi, Chief, Business Planning Team |
Telephone number: | +81-45-263-9220 |
Submission of quarterly report: April 12, 2022 Dividend payment commencement date: -
Preparation of explanatory materials for quarterly financial results: None Holding of a briefing on quarterly financial results: Yes
(Amounts of less than one million yen are truncated)
1. Consolidated Financial Results for the Cumulative Third Quarter of the Fiscal Year Ending May 31, 2022 (June 1, 2021 to February 29, 2022)
(1) Consolidated operating results (Cumulative)
(% figures show year-on-year change)
Net sales | Operating income | Ordinary income | Profit attributable to owners of parent | |||||
Nine months ended February 28, 2022 Nine months ended February 28, 2021 | Millions of yen 4,131 5,108 | % (19.1) 3.2 | Millions of yen 741 1,391 | % (46.7) 45.6 | Millions of yen 768 1,408 | % (45.4) 47.4 | Millions of yen 482 932 | % (48.3) 50.8 |
(Note) Comprehensive income:
Nine months ended February 28, 2022: ¥481 million / -49.1%
Nine months ended February 28, 2021: ¥946 million / 57.2%
Profit per share | Profit per share-diluted | |
Nine months ended February 28, 2022 Nine months ended February 28, 2021 | Yen 43.99 85.03 | Yen ― ― |
(2) Consolidated financial position
Total assets | Net assets | Shareholders' equity ratio | |
As of February 28, 2022 As of May 31, 2021 | Millions of yen 10,860 11,564 | Millions of yen 9,043 9,038 | % 83.3 78.2 |
(Reference) Shareholders' equity: As of February 28, 2022: ¥9,043 million
As of May 31, 2021: ¥9,038 million
2. Dividends
Annual dividends | |||||
First quarter-end | Second quarter-end | Third quarter-end | Fiscal year-end | Total | |
Fiscal year ended May 31, 2021 Fiscal year ending May 31, 2022 | Yen − − | Yen 0.00 0.00 | Yen − − | Yen 20.00 | Yen 20.00 |
Fiscal year ending May 31, 2022 (Forecast) | 20.00 | 20.00 |
(Note) Amendment to forecasts of dividends recently announced: None
3. Forecast of Consolidated Financial Results for the Fiscal Year Ending May 31, 2022
(June 1, 2021 to May 31, 2022)
(% figures show year-on-year change for the full year and quarter)
Net sales
Operating incomeOrdinary incomeProfit attributable to owners of parent
Profit per share
Millions of yen
% Millions of yen
% Millions of yen
% Millions of yen
%
Yen
Full year
5,903 (10.9)
1,123
1,153 (34.0)
(40.9)
(Note) 1. Amendment to forecasts of dividends recently announced: Yes
2. The Company has implemented an ESOP and Directors' stock compensation plan both in the form of stock benefit trusts. Accordingly, profit per share is calculated based on the average number of shares during the fiscal year, excluding the number of treasury shares, which includes Inter Action stock held by the stock benefit ESOP trust accounts and Directors' compensation stock benefit trust accounts.
* Notes
(1) Change in significant subsidiaries during nine months ended February 28, 2022 (changes in specified subsidiaries affecting the scope of consolidation): None
New: -
(Company name:
)
Excluded: -
(Company name:
)
(2) Application of special accounting for preparing quarterly consolidated financial statements: None
(3) Changes in accounting policies and estimates, and retrospective restatements
(i) Changes in accounting policies in accordance with revision of accounting standards: Yes
(ii) Changes in accounting policies other than item (i) above: None
(iii) Changes in accounting estimates: None
(iv) Retrospective restatements: None
(Note) For details, refer to "(3) Note regarding the quarterly consolidated financial statements (Changes in accounting policies)" under "2. Quarterly Consolidated Financial Statements and Notes" (page 10) of the Attached Materials.
(4) Number of shares issued (common stock)
(i) Number of shares outstanding at end of period (including treasury shares)
As of February 28, 2022
11,510,200 shares
As of May 31, 2021
11,510,200 shares
(ii) Number of treasury shares at end of period
As of February 28, 2022
647,164 shares
As of May 31, 2021
514,513 shares
(iii) Average number of shares during period
For the nine months ended February 28, 2022
10,964,962 shares
For the nine months ended February 28, 2021
10,970,172 shares
(Note) The Company has implemented an ESOP and Directors' stock compensation plan both in the form of stock benefit trusts. Accordingly, treasury shares, as stated, include Inter Action stock held by the stock benefit ESOP trust accounts and Directors' compensation stock benefit trust accounts.
* Quarterly financial results are not subject to auditing by a certified public accountant or an audit firm.
* Proper use of earnings forecasts, and other special matters
The above forecasts of consolidated financial results are based on certain assumptions on economic situation, market trends, etc. deemed to be reasonable when the forecasts were made. Consequently, actual results may differ from the forecasts due to a variety of future factors. Consequently, actual results may differ from the forecasts due to a variety of future factors. For details of the above forecasts, refer to"(3) Explanation of forward-looking information including consolidated earnings forecasts" under "1. Qualitative Information on Quarterly Results" (page 5) of the Attached Materials.
[Attached Materials]
Index
1. Qualitative Information on Quarterly Results ………………………………………………………………………………
2
(1) Explanation of operating results …………………………………………………………………………………………
2
(2) Explanation of financial position …………………………………………………………………………………………
5
(3) Explanation of forward-looking information including consolidated earnings forecasts …………………………………
5
2. Quarterly Consolidated Financial Statements and Notes ……………………………………………………………………
6
(1) Quarterly consolidated balance sheets ……………………………………………………………………………………
6
(2) Quarterly consolidated statements of income and consolidated statements of comprehensive income …………………
8
(Quarterly consolidated statements of income)
June 1, 2021 - February 28, 2022 ……………………………………………………………………………… (Quarterly consolidated statements of comprehensive income)
8
June 1, 2021 - February 28, 2022 ………………………………………………………………………………
9
(3) Note regarding the quarterly consolidated financial statements …………………………………………………………
10
(Notes on premise of going concern) …………………………………………………………………………………… (Notes on significant changes in the amount of shareholders' equity) ………………………………………………… (Changes in accounting policies) ……………………………………………………………………………………… (Additional information) ……………………………………………………………………………………………… (Segment information) ………………………………………………………………………………………………… (Revenue recognition-related information) ………………………………………………………………………………
10
10
10
11
12
13
3. Supplementary Explanation of Consolidated Financial Results for the Third Quarter of the Fiscal Year Ending May 31, 2022 ……………………………………………………………
14
(1) Status of orders ……………………………………………………………………………………………………………
14
1. Qualitative Information on Quarterly Result
(1) Explanation of operating results
The Inter Action Group conducts business in three segments: Internet of things related works; environmental energy related works; and promotion business of Industry 4.0. The business environment in each segment is as described below.
In the Internet of things related works segment, we manufacture inspection illuminators and pupil lens modules used for quality inspections in the image sensor production process and sell them to image sensor manufacturers. Currently, in the image sensor market, there are a dozen or so manufacturers of image sensors, of which Japanese and Korean companies account for over 60% of the market share. Aside from these existing makers, there have recently been moves by Chinese manufacturers to enter the business. Judging from the trends of image sensor manufacturers, we anticipate that the image sensor market will continue to expand.
The market for image sensors tends to hinge on the manufacturing and selling situation of smartphones, as such devices currently account for about 60-70% of image sensor applications. Demand for smartphones remains firm compared with the previous fiscal year, driven in particular by increased time spent at home amid the COVID-19 pandemic and the spread of 5G-compatible devices. However, a shortage of semiconductors and other components continues to affect the production and shipment of smartphones, in volume terms, calling for close monitoring of the market trend in the period ahead.
The increasing number of image sensors (cameras) installed per smartphone and the growing popularity of smartphones equipped with multiple image sensors (cameras) in recent years means that image sensor manufacturers will probably need to continue increasing production capacity.
In the short-term, demand for image sensors remains focused on conventional imaging devices that capture visible light in order to take photos and videos.
In the medium to long term, we anticipate the demand trend to shift from imaging to sensing needs, driving up demand for image sensors that can capture three-dimensional information needed for self-driving vehicles, industrial applications (machine-vision, surveillance cameras, etc.), and IoT devices equipped with image sensors as deployment of 5G mobile communication expands.
Specific devices envisaged are ToF (time-of-flight) sensors and LiDAR (light detection and ranging) sensors, which aim to capture three-dimensional information such as the distance between objects. Use of these sensors in smartphones is gaining momentum and a further increase in demand is anticipated with the development of various applications.
In the environmental energy related works segment, we manufacture and sell drying deodorizers used together with rotary presses (commercial printing presses) for large-volume printing and exhaust gas treatment systems for factories.
In the printing machinery industry, although new capital investment is diminishing due to the growing prevalence of information technologies, a certain number of rotary presses are replaced every year due to age-related degradation, and there is also demand for periodic maintenance. As there is minimal competition, the Inter Action Group is able to stably accommodate this demand at present. At present, customers' appetite for capital investment in new and large-scale projects is gradually beginning to recover in anticipation of a post-COVID-19 future.
In the promotion business of Industry 4.0 segment, we mainly manufacture precision vibration isolation systems for removing vibrations that are a hindrance in the production process for displays and sell the systems to display manufacturers. We also manufacture testing systems for investigating whether gears are of the shape designed and sell them to gear manufacturers. In addition, as new businesses for the Group, we are actively working on businesses related to FA (factory automation) image processing and laser processing equipment.
Currently, in the flat panel and OLED display industries, although appetite for capital investment is showing signs of gradual recovery particularly among overseas customers, uncertainties persist including the impact of the COVID-19 pandemic.
Moreover, the gear testing systems market has essentially conformed to conditions of the machine tools market and is susceptible to economic fluctuations. While the COVID-19 pandemic led to a plunge in market conditions that at one point went deeper than that observed during the global financial crisis, a recovery trend is emerging notably among the robotics and automobile industries and in overseas (emerging country) industries.
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Inter Action Corporation published this content on 11 April 2022 and is solely responsible for the information contained therein. Distributed by Public, unedited and unaltered, on 11 April 2022 07:28:09 UTC.