Consolidated Financial Statements for the First Nine Months of Fiscal Year ending March 31, 2023

30/Jan/2023 These financial statements have been prepared in accordance with accounting principals generally accepted in Japan.

NEC Networks & System Integration Corporation

Stock exchange listing:

Tokyo

Code number:

1973

https://www.nesic.co.jp/english/index.html

1. Consolidated Results for the First Nine Months (April 1, 2022 to December 31, 2022) of Fiscal Year ending March 31, 2023

(Rounded down to the nearest million yen.)

(1) Net Sales and Income

Net sales

Year-on-year

Operating

Year-on-year

Ordinary

Year-on-year

income

income

(¥ million)

change (%)

change (%)

change (%)

(¥ million)

(¥ million)

9 months/FY Mar

221,881

1.4

11,174

-8.2

11,206

-10.5

2023

9 months/FY Mar

218,824

-6.3

12,168

-11.8

12,516

-9.7

2022

Net income

Net income

attributable

Net income

Year-on-year

per share

to owners of

per share

the parent

change (%)

(¥)

(diluted)

(¥)

(¥ million)

9 months/FY Mar

6,111

-20.5

41.03

-

2023

9 months/FY Mar

7,685

-8.0

51.60

-

2022

c.f. Comprehensive income: 9 Months/FY Mar 2023: ¥8,026 million (-2.8%); 9 Months/FY Mar 2022: ¥8,255 million (-6.0%)

(2) Financial Position

Total assets

Net assets

Owner's

Net assets

equity ratio

per share

(¥ million)

(¥ million)

(%)

(¥)

31/Dec/2022

246,435

139,065

54.7

905.41

31/Mar/2022

254,701

138,149

52.9

904.66

c.f. Owner's equity: 31/Dec/2022: ¥134,864 million; 31/Mar/2022 ¥134,742million

2. Dividends

Dividends per share (¥)

1st

Interim

3rd

Year-end

Full year

quarter

quarter

FY ending Mar.

-

23.00

-

23.00 ※

46.00 ※

※ Forecast

2023

FY ended Mar. 2022

-

19.00

-

24.00

43.00

Note: Revisions to projected dividends for the quarter under review: no

3. Financial Forecasts for Fiscal Year ending March 31, 2023 (April 1, 2022 to March 31, 2023)

(Percentages represent change compared to the previous corresponding period.)

Net sales

Operating income

Ordinary income

Net income attributable

Net income

to owners of the parent

per share

(¥ million)

(%)

(¥ million)

(%)

(¥ million)

(%)

(¥ million)

(%)

(¥)

FY ending Mar. 2023

322,000

3.8

22,000

-5.1

22,000

-6.6

13,000

-13.5

87.28

Note: Revisions to projected results for the quarter under review: yes

Cautionary Statement

Forecasts of results mentioned in this document are future estimates and are thus inclusive of risks and uncertain factors since they are not based on definite facts. Please be aware that a variety of factors could cause actual results to differ significantly from those projected. The major factors affecting actual results include the economic climate and social trends surrounding the business of this Company's group, consumer trends vis-a-vis systems and services provided by this Company's group, as well as pressure to lower prices and ability to cope with the market in response to intensified competition.

Factors affecting results are not limited to the ones mentioned above.

4. Consolidated Financial Statements

(1) Consolidated Balance Sheets

(Millions of yen)

As of

As of

March 31, 2022

Dec 31, 2022

Assets

Current assets

Cash and cash equivalents

79,732

68,132

Notes and accounts receivable, and contract assets

111,539

102,767

Electronically recorded monetary claims

987

1,714

Purchased goods,materials and supplies

2,623

2,932

Work in process

8,155

13,713

Other

11,204

12,452

Allowance for doubtful accounts

(80)

(85)

Total current assets

214,161

201,627

Non-current assets

Property and equipment

12,807

12,640

Intangible assets

Goodwill

388

212

Other

3,901

3,681

Total intangible assets

4,290

3,894

Investments and other assets

Deferred tax assets

13,639

13,318

Other

9,853

15,005

Allowance for doubtful accounts

(50)

(50)

Total investments and other assets

23,442

28,273

Total non-current assets

40,540

44,807

Total assets

254,701

246,435

Liabilities

Current liabilities

Notes and accounts payable

40,486

36,221

Electronically recorded obligations

1,217

1,572

Short-term bank loans

9,190

8,668

Current installments of long-term debt

264

231

Accrued income taxes

4,019

447

Accrued bunuses to directors and corporate auditors

145

35

Accrued warranty on products

114

138

Accrued losses on sales contracts

2,107

756

Provision for compensation for damage

4

3

Provision for office transfer cost

－

605

Other current liabilities

26,087

25,264

Total current liabilities

83,636

73,946

Non-curret liabilities

Long-term debt

3,202

3,028

Liabilities for retirement benefits

27,714

28,563

Other liabilities

1,998

1,831

Total non-current liabilities

32,914

33,423

Total liabilities

116,551

107,369

Net assets

Shareholders' equity

Common stock

13,122

13,122

Capital surplus

16,694

16,708

Retained earnings

105,673

104,785

Treasury stock, at cost

(259)

(251)

Total shareholders' equity

135,230

134,364

Accumulated other comprehensive income

Net unrealized holding gain on available-for-sale securities

1,242

1,705

Deferred gains or losses on hedges

－

(41)

Foreign currency translation adjustments

(517)

(231)

Accumulated adjustments for retirement benefits

(1,213)

(932)

Total accumulated other comprehensive income

(488)

499

Non-controlling interests

3,407

4,201

Total net assets

138,149

139,065

Total liabilities and net assets

254,701

246,435

(2) Consolidated Statements

of Income and Comprehensive Income

(Consolidated Statements of

Income)

(Millions of yen)

1Q-3Q, FY March 2022

1Q-3Q, FY March 2023

(9 months ended Dec 2021)

(9 months ended Dec 2022)

Net sales Cost of sales Gross profit

Selling, general and administrative expenses Operating income (loss)

Non-operating income Interest income

Dividend income of insurance Other

Total non-operating income

Non-operating expenses

Interest expenses

Foreign exchange loss

Other

Total non-operating expenses

Ordinary income (loss)

Extraordinary income

Gain on sale of investment in affiliates Total extraordinary inocome

Extraordinary losses

Expenses relating to move of the head office Loss on liquidation of subsidiaries

Loss on revision of retirement benefit plan Provision of allowance for compensation for damage Total extraordinary losses

Income (loss) before income taxes Income taxes

Net income (loss)

Net income (loss) attributable to non- controlling interests

Net income (loss) attributable to owners of the parent

218,824

221,881

176,827

178,341

41,996

43,539

29,828

32,365

12,168

11,174

9

12

156

164

349

310

516

487

77

139

2

146

87

168

168

455

12,516

11,206

141

－

141

－

－

671

－

147

－

99

324

－

324

917

12,333

10,288

4,912

3,383

7,421

6,905

(263)

793

7,685

6,111

(Millions of yen)

1Q-3Q, FY March 2022

1Q-3Q, FY March 2023

(9 months ended Dec 2021)

(9 months ended Dec 2022)

Net income (loss)

7,421

6,905

Other comprehensive income

Net unrealized holding loss on other securities

621

463

Deferred gains or losses on hedges

－

(41)

Foreign currency translation adjustments

(91)

419

Adjustments for retirement benefit

303

281

Share of other comprehensive income of associates

accounted for using equity method

0

(2)

Total other comprehensive income

834

1,121

Comprehensive income (loss)

8,255

8,026

Comprehensive income (loss) attributable to:

Owners of the parent

8,590

7,100

Non-controlling interests

(335)

926

(3) Consolidated Statements of Cash Flows

(Millions of yen)

1Q-3Q, FY March 2022

1Q-3Q, FY March 2023

(9 months ended Dec 2021)

(9 months ended Dec 2022)

Cash flows from operating activities

Net income (loss) before income taxes

12,333

10,288

Depreciation and amortization

2,415

2,947

Amortization of goodwill

176

176

Expenses relating to move of the head office

－

671

Loss (gain) on liquidation of subsidiaries

－

147

Loss (gain) on revision of retirement benefit plan

－

99

Increase (decrease) in allowance for doubtful receivables

(4)

(1)

Increase (decrease) in asset for retirement benefit

15

(111)

Increase (decrease) in liability for retirement benefits

(134)

83

Increase (decrease) in accrued bonuses to directors and

corporate auditors

(126)

(110)

Increase (decrease) in accrued warranty on products

17

24

Increase (decrease) in accrued losses on sales contracts

1,822

(1,503)

Increase (decrease) in provision for compensation for damage

(707)

0

Interest and dividend income

(47)

(42)

Interest expense

77

139

(Increase) decrease in notes and accounts receivable,

and contract assets

23,569

9,855

(Increase) decrease in inventories

(930)

(5,875)

Increase (decrease) in notes and accounts payable

(11,736)

(4,061)

Increase (decrease) in accrued consumption taxes

(1,240)

(1,442)

Other, net

(2,572)

(2,333)

Subtotal

22,928

8,951

Interest and dividend income received

47

42

Interest paid

(74)

(137)

Income taxes paid

(9,778)

(7,339)

Net cash provided by (used in) operating activities

13,122

1,517

Cash flows from investing activities

Purchase of property and equipment

(2,440)

(1,329)

Proceeds from sale of property and equipment

19

0

Purchase of intangibles

(602)

(810)

Purchase of investment securities

(683)

(754)

Payments for sale of shares of subsidiaries

189

－

Loans receivable made

(17)

(7)

Collection of loans receivable

0

1

Other, net

(367)

(964)

Net cash used in investing activities

(3,902)

(3,864)

Cash flows from financing activities

Net increase (decrease) in short-term bank loans

1,080

(2,101)

Repayments of long-term debt

(223)

(206)

Net (increase) decrease in treasury shares

21

22

Dividends paid to shareholders

(5,943)

(6,984)

Dividends paid to minority shareholders of subsidiaries

(29)

(25)

Other, net

(213)

(156)

Net cash provided by used in financing activities

(5,307)

(9,452)

Effect of exchange rate changes on cash and cash

equivalents

(22)

199

Net increase (decrease) in cash and cash equivalents

3,889

(11,599)

Cash and cash equivalents at beginning of period

68,426

79,732

Cash and cash equivalents at end of period

72,316

68,132

(4) Segment Information

Business Segment Information

First nine months of fiscal March 2022 (9 months ended December 2021)

(Millions of yen)

DX Solutions

Network

Environmental &

Others

Adjustments

Total

Solutions

Social Solutions

Sales

(1)

Sales to third parties

77,728

57,347

79,252

4,496

-

218,824

(2)

Intersegment sales

-

-

-

-

-

-

Total

77,728

57,347

79,252

4,496

-

218,824

Operating income and loss

8,896

6,298

3,191

655

(6,872)

12,168

First nine months of fiscal March 2023 (9 months ended December 2022)

(Millions of yen)

DX Solutions

Network

Environmental &

Others

Adjustments

Total

Solutions

Social Solutions

Sales

(1)

Sales to third parties

80,202

55,511

80,598

5,569

-

221,881

(2)

Intersegment sales

-

-

-

-

-

-

Total

80,202

55,511

80,598

5,569

-

221,881

Operating income and loss

8,192

5,448

5,002

157

(7,627)

11,174

※Segment information for FY22/3 has been reclassified numbers to reflect the segment change in April 2022.

Attachments

  • Original Link
  • Original Document
  • Permalink

Disclaimer

NEC Networks & System Integration Corporation published this content on 26 January 2023 and is solely responsible for the information contained therein. Distributed by Public, unedited and unaltered, on 30 January 2023 09:43:09 UTC.