Summary of Consolidated Financial Results for the Year Ended March 31, 2018 (Based on Japanese GAAP)

Transcription

1 Translation Notice: This document is an excerpt translation of the original Japanese document and is only for reference purposes. In the event of any discrepancy between this translated document and the original Japanese document, the latter shall prevail. Company name: Summary of Consolidated Financial Results for the Year Ended March 31, 2018 (Based on Japanese GAAP) Watabe Wedding Corporation Stock exchange listing: Tokyo Stock code: 4696 URL Representative: Executive President, Representative Director Nobuaki Hanafusa Inquiries: General Manager of Group Administration Division Chikaomi Hiraki TEL Scheduled date of ordinary general meeting of shareholders: June 28, 2018 Scheduled date to file Securities Report: June 29, 2018 Scheduled date to commence dividend payments: June 29, 2018 Preparation of supplementary material on financial results: Yes Holding of financial results meeting: Yes (for institutional investors and analysts) May 10, 2018 (Amounts less than one million yen are rounded down) 1. Consolidated financial results for the year ended March 31, 2018 (from April 1, 2017 to March 31, 2018) (1) Consolidated operating results Percentages indicate year-on-year changes Net sales Operating profit Ordinary profit Profit attributable to owners of parent Millions of yen % Millions of yen % Millions of yen % Millions of yen % Year ended March 31, , (23.3) Year ended March 31, , , Earnings per share Diluted earnings per share Profit attributable to owners of parent/equity Ordinary profit/total assets Operating profit/net sales Yen Yen % % % Year ended March 31, Year ended March 31, (2) Consolidated financial position Total assets Net assets Equity ratio Net assets per share Millions of yen Millions of yen % Yen As of March 31, ,354 10, , As of March 31, ,348 10, , (3) Consolidated cash flows Cash flows from operating activities Cash flows from investing activities Cash flows from financing activities Cash and cash equivalents at end of Millions of yen Millions of yen Millions of yen Millions of yen Year ended March 31, ,222 (4,174) 2,268 6,685 Year ended March 31, ,250 (1,850) (147) 5, Cash dividends Annual dividends per share 1st quarter-end 2nd quarter-end 3rd quarter-end Fiscal year-end Total Total cash dividends (Total) Dividend payout Ratio of dividends ratio (Consolidated) to net assets (Consolidated) Yen Yen Yen Yen Yen Millions of yen % % Year ended March 31, Year ended March 31, Year ending March 31, 2019 (Forecast) 1

2 3. Forecast of consolidated financial results for the year ending March 31, 2019 (from April 1, 2018 to March 31, 2019) Percentages indicate year-on-year changes Profit attributable to Net sales Operating profit Ordinary profit Earnings per share owners of parent Millions of yen % Millions of yen % Millions of yen % Millions of yen % Yen Full year 47, (34.9) 500 (26.1) Notes (1) Changes in significant subsidiaries during the year ended March 31, 2018 (changes in specified subsidiaries resulting in the change in scope of consolidation): No (2) Changes in accounting policies, changes in accounting estimates, and restatement of prior financial statements Changes in accounting policies due to revisions to accounting standards and other regulations: No Changes in accounting policies due to other reasons: No Changes in accounting estimates: No Restatement of prior financial statements: No (3) Number of issued shares (common shares) Total number of issued shares at the end of the (including treasury shares) As of March 31, ,909,400 shares As of March 31, ,909,400 shares Number of treasury shares at the end of the As of March 31, shares As of March 31, shares Average number of shares during the Year ended March 31, ,908,921 shares Year ended March 31, ,909,045 shares 2

3 Consolidated financial statements Consolidated balance sheets Assets Current assets As of March 31, 2017 As of March 31, 2018 Cash and deposits 5,436 6,689 Accounts receivable - trade 1,580 1,630 Merchandise Work in process 8 13 Raw materials and supplies Deferred tax assets Other 1,488 1,228 Allowance for doubtful accounts (15) (19) Total current assets 9,460 10,594 Non-current assets Property, plant and equipment Costumes for rent 1,128 1,045 Accumulated depreciation (980) (940) Costumes for rent,net Buildings and structures 10,493 11,927 Accumulated depreciation (6,480) (6,947) Buildings and structures, net 4,012 4,980 Furniture and fixtures 5,024 5,113 Accumulated depreciation (4,017) (3,921) Furniture and fixtures, net 1,006 1,191 Land 1,893 1,893 Construction in progress Other Accumulated depreciation (576) (562) Other, net Total property, plant and equipment 7,690 8,626 Intangible assets Goodwill Other Total intangible assets 1,009 1,171 Investments and other assets Deferred tax assets Guarantee deposits 2,666 2,718 Other 285 1,097 Allowance for doubtful accounts (3) (3) Total investments and other assets 3,187 3,962 Total non-current assets 11,887 13,759 Total assets 21,348 24,354 3

4 As of March 31, 2017 As of March 31, 2018 Liabilities Current liabilities Accounts payable - trade 1,549 1,801 Short-term loans payable 850 1,550 Current portion of long-term loans payable Accounts payable - other 1,185 1,450 Income taxes payable Advances received 2,466 2,788 Provision for bonuses Other 1,858 1,341 Total current liabilities 8,970 10,322 Non-current liabilities Long-term loans payable 1,400 Deferred tax liabilities for land revaluation 9 9 Net defined benefit liability 1,050 1,192 Asset retirement obligations Other Total non-current liabilities 1,836 3,579 Total liabilities 10,807 13,902 Net assets Shareholders' equity Capital stock 4,176 4,176 Capital surplus 4,038 4,052 Retained earnings 2,579 2,701 Treasury shares (0) (0) Total shareholders' equity 10,793 10,929 Accumulated other comprehensive income Valuation difference on available-for-sale securities Deferred gains or losses on hedges 25 (43) Revaluation reserve for land (903) (903) Foreign currency translation adjustment Remeasurements of defined benefit plans 36 (64) Total accumulated other comprehensive income (308) (503) Non-controlling interests Total net assets 10,540 10,451 Total liabilities and net assets 21,348 24,354 4

5 Consolidated statements of income and consolidated statements of comprehensive income Consolidated statements of income March 31, 2017 March 31, 2018 Net sales 43,908 45,135 Cost of sales 14,139 14,098 Gross profit 29,769 31,037 Selling, general and administrative expenses Salaries, allowances and bonuses 10,118 10,457 Provision for bonuses Retirement benefit expenses Rent expenses 4,964 5,073 Other 12,952 13,891 Total selling, general and administrative expenses 28,768 30,269 Operating profit 1, Non-operating income Insurance income 16 Foreign exchange gains 36 Other Total non-operating income Non-operating expenses Interest expenses 2 9 Foreign exchange losses 366 Expenses of inactive noncurrent assets 202 Other Total non-operating expenses Ordinary profit Extraordinary income Gain on sales of non-current assets 50 8 Gain on sales of investment securities 89 Gain on sales of shares of subsidiaries and associates 60 Other 2 Total extraordinary income Extraordinary losses Loss on sales and retirement of non-current assets Impairment loss Loss on restructuring wedding halls and branches Other 2 Total extraordinary losses Profit before income taxes Income taxes - current Refund of income taxes (140) Income taxes - deferred 225 (40) Total income taxes Profit Profit attributable to non-controlling interests 7 5 Profit attributable to owners of parent

6 Consolidated statements of comprehensive income March 31, 2017 March 31, 2018 Profit Other comprehensive income Valuation difference on available-for-sale securities (49) 3 Deferred gains or losses on hedges 285 (69) Foreign currency translation adjustment (142) (27) Remeasurements of defined benefit plans, net of tax 21 (100) Share of other comprehensive income of entities accounted for using equity method (0) (2) Total other comprehensive income 115 (196) Comprehensive income 247 (19) Comprehensive income attributable to Comprehensive income attributable to owners of parent 241 (24) Comprehensive income attributable to non-controlling interests 5 4 6

7 Consolidated statements of changes in equity March 31, 2017 Shareholders' equity Balance at beginning of current Changes of items during Total shareholders' Capital stock Capital surplus Retained earnings Treasury shares equity 4,176 4,038 2,504 (0) 10,718 Dividends of surplus (49) (49) Profit attributable to owners of parent Purchase of treasury shares (0) (0) Change in ownership interest of parent due to transactions with non-controlling interests Net changes of items other than shareholders' equity Total changes of items during 74 (0) 74 Balance at end of current 4,176 4,038 2,579 (0) 10,793 Accumulated other comprehensive income Balance at beginning of current Changes of items during Total accumulated other Noncontrolling interests Total net assets comprehensive income Valuation Deferred Foreign Revaluation Remeasurements difference on gains or currency reserve for of defined available-forsale securities hedges losses on translation land benefit plans adjustment 68 (260) (903) (425) 49 10,342 Dividends of surplus (49) Profit attributable to owners of parent 124 Purchase of treasury shares (0) Change in ownership interest of parent due to transactions with non-controlling interests Net changes of items other than shareholders' equity (49) 285 (141) Total changes of items during (49) 285 (141) Balance at end of current (903) (308) 55 10,540 7

8 March 31, 2018 Shareholders' equity Balance at beginning of current Changes of items during Total shareholders' Capital stock Capital surplus Retained earnings Treasury shares equity 4,176 4,038 2,579 (0) 10,793 Dividends of surplus (49) (49) Profit attributable to owners of parent Purchase of treasury shares (0) (0) Change in ownership interest of parent due to transactions with non-controlling interests Net changes of items other than shareholders' equity Total changes of items during (0) 135 Balance at end of current 4,176 4,052 2,701 (0) 10,929 Accumulated other comprehensive income Balance at beginning of current Changes of items during Total accumulated other Noncontrolling interests Total net assets comprehensive income Valuation Deferred Foreign Revaluation Remeasurements difference on gains or currency reserve for of defined available-forsale securities hedges losses on translation land benefit plans adjustment (903) (308) 55 10,540 Dividends of surplus (49) Profit attributable to owners of parent 171 Purchase of treasury shares (0) Change in ownership interest of parent due to transactions 14 with non-controlling interests Net changes of items other than shareholders' equity 3 (69) (28) (100) (195) (29) (224) Total changes of items during 3 (69) (28) (100) (195) (29) (89) Balance at end of current 23 (43) (903) 485 (64) (503) 25 10,451 8

9 Consolidated statements of cash flows March 31, 2017 March 31, 2018 Cash flows from operating activities Profit before income taxes Depreciation 1,278 1,406 Amortization of goodwill 32 Impairment loss Increase (decrease) in provision for bonuses Increase (decrease) in net defined benefit liability Interest and dividend income (8) (14) Interest expenses 2 9 Foreign exchange losses (gains) (64) 77 Loss on restructuring wedding halls and branches Loss (gain) on sales of shares of subsidiaries and associates (60) Loss (gain) on sales of investment securities (89) Decrease (increase) in notes and accounts receivable - trade 51 (33) Decrease (increase) in inventories Decrease (increase) in prepaid expenses (128) 21 Increase (decrease) in notes and accounts payable - trade Increase (decrease) in accounts payable - other Increase (decrease) in advances received Other, net (380) 397 Subtotal 2,103 3,519 Interest and dividend income received 9 14 Interest expenses paid (2) (10) Income taxes paid (362) (580) Income taxes refund Net cash provided by (used in) operating activities 2,250 3,222 Cash flows from investing activities Proceeds from sales of investment securities 187 Purchase of property, plant and equipment (1,759) (2,914) Proceeds from sales of property, plant and equipment Purchase of intangible assets (119) (208) Payments for guarantee deposits (90) (160) Proceeds from collection of guarantee deposits Purchase of investments in subsidiaries and affiliates resulting in change in scope of consolidation (128) Proceeds from sales of investments in subsidiaries and affiliates resulting in change in scope of consolidation 16 Payments for transfer of business (566) (16) Other, net 68 (854) Net cash provided by (used in) investing activities (1,850) (4,174) 9

10 March 31, 2017 March 31, 2018 Cash flows from financing activities Net increase (decrease) in short-term loans payable Proceeds from long-term loans payable 2,000 Repayments of long-term loans payable (625) (325) Proceeds from share issuance to non-controlling shareholders 14 Cash dividends paid (49) (49) Payments from changes in ownership interests in subsidiaries and affiliates that do not result in change in scope of (20) consolidation Other, net (37) (32) Net cash provided by (used in) financing activities (147) 2,268 Effect of exchange rate change on cash and cash equivalents (128) (62) Net increase (decrease) in cash and cash equivalents 124 1,253 Cash and cash equivalents at beginning of 5,307 5,431 Cash and cash equivalents at end of 5,431 6,685 10