Financial Results for the Year Ended March 31, 2018

Transcription

1 Reference translation Financial Results for the Year Ended May 11, 2018 Company Name: Takasago Thermal Engineering Co., Ltd. Stock Exchange Listing: Tokyo 1st section Code Number: 1969 Company URL: Representative: Contact: Phone: (03) Scheduled date of ordinary general meeting of shareholders: June 26, 2018 Scheduled date to submit the Securities Report: June 26, 2018 Atsushi Ouchi, Chairman, President and Representative Director Yoshiyuki Hara, Director and Managing Executive Officer, Group General Manager, Corporate Group 1. Consolidated Results for the Year Ended (April 1, 2017 (1) Consolidated Results of Operations Scheduled date to commence dividend payment: June 27, 2018 (Fraction less than one million yen has been omitted) (% indicates changes ) Net sales Operating income Ordinary income Net income attributable to owners of parent (Millions of yen) (Millions of yen) (Millions of yen) (Millions of yen) 289, , , , , , , , (Note) Comprehensive income: : 14,398 million year on year: 54.2% : 9,339 million year on year: -% Basic earnings per share Diluted earnings per share Rate of return on Ratio of ordinary Ratio of operating equity income to total assets income to net sales (Yen) (Yen) (Reference) Equity in earnings (losses) of affiliated companies: : 189 million : 249 million (2) Consolidated Financial Positions Total assets Net assets Equity ratio Net assets per share (Millions of yen) (Millions of yen) (Yen) 265, , , , , , (Reference) Shareholders equity: : 120,546 million : 109,382 million (3) Consolidated Cash Flows Cash flows from operating activities Cash flows from investing activities Cash flows from financing activities Cash and cash equivalents at the end of the period (Millions of yen) (Millions of yen) (Millions of yen) (Millions of yen) 6,170 (5,685) 7,107 54,558 23,528 2,329 (6,079) 46,

2 2. Dividends First quarter end Second quarter end Cash dividends per share Third quarter end Year-end Annual Total cash dividends (annual) Payout ratio (consolidated) Ratio of dividends to net assets (consolidated) (Yen) (Yen) (Yen) (Yen) (Yen) (Millions of yen) , , Year ending March 31, 2019 (estimated) (Note) Breakdown of the 22 year-end dividends for the year ended : Ordinary dividends of 16, special dividends of 6 3. Forecasts for the Consolidated Financial Results for the Year Ending March 31, 2019 (April 1, 2018 to March 31, 2019) End of second quarter (% indicates changes corresponding ) Net income attributable to Basic earnings Net sales Operating income Ordinary income owners of parent per share (Millions of yen) (Millions of yen) (Millions of yen) (Millions of yen) (Yen) 140, ,100 (11.4) 6,500 (11.5) 4,200 (7.0) Full year 300, , , ,800 (0.0) (Reference) Orders received (estimated): (End of second quarter) 155,000 million (Full year) 280,000 million *Notes (1) in Important Subsidiary (Change in Specific Subsidiary Accompanying Change in Scope of Consolidation) During the Term: None (2) in Accounting Policies, in Accounting Estimates and Restatements (i) in accounting policies in accordance with the revision of accounting standard, etc.: None (ii) in accounting policies other than (i) above: None (iii) in accounting estimates: None (iv) Restatements: None (3) Number of Issued Shares (Common Stock) (i) Number of issued shares at fiscal year end (including treasury stock) : : 82,765,768 shares 82,765,768 shares (ii) Number of treasury shares at fiscal year end : : 9,155,382 shares 9,220,817 shares (iii) Average number of shares during the period : 73,594,611 shares : 73,539,820 shares (References) Summary of Non-consolidated Financial Results 1. Non-consolidated Financial Results for the Year Ended (April 1, 2017 (1) Non-consolidated Results of Operations (% indicates changes ) Net sales Operating income Ordinary income Net income (Millions of yen) (Millions of yen) (Millions of yen) (Millions of yen) 217, , , , , , , , Basic earnings per share Diluted earnings per share (Yen) (Yen)

3 (2) Non-consolidated Financial Positions Total assets Net assets Equity ratio Net assets per share (Millions of yen) (Millions of yen) (Yen) 229, , , ,496 99, , (Reference) Shareholders equity: : 108,578 million : 99,347 million 2. Forecasts for the Non-consolidated Financial Results for the Year Ending March 31, 2019 (April 1, 2018 to March 31, 2019) End of second quarter (% indicates changes corresponding ) Basic earnings Net sales Operating income Ordinary income Net income per share (Millions of yen) (Millions of yen) (Millions of yen) (Millions of yen) (Yen) 106, ,250 (16.1) 6,200 (13.0) 4,300 (6.9) Full year 228, ,100 (3.5) 14,600 (2.8) 10, (Reference) Orders received (estimated): (End of second quarter) 120,000 million (Full year) 205,000 million * These consolidated financial results are outside the scope of audit by certified public accountants or audit corporations *Explanation concerning proper use of the forecasts for the financial results and other special instructions Forward-looking statements, including the financial results forecasts, in this document are based on currently available information held by the Company and on certain premises considered reasonable by the Company. It is not the intention of the Company to undertake the realization of these statements. Actual business results may differ forecasts, depending on various factors

4 (References) 1. Consolidated Financial Statements (1) Consolidated Balance Sheets (Millions of yen) (as of ) (as of ) ASSETS: Current assets: Cash and time deposits 47,075 55,067 Notes receivable, accounts receivable from completed contracts 107, ,665 Electronically recorded monetary claims operating 9,559 12,190 Cost of uncompleted contracts 3,358 4,048 Deferred tax assets 1,744 1,765 Other current assets 5,261 8,246 Less allowance for doubtful accounts (210) (166) Total current assets 174, ,817 Fixed assets: Property, plant and equipment at cost Buildings and structures 9,568 8,431 Machinery and vehicles 961 1,677 Tools, furniture and fixtures 3,191 3,507 Land 1,942 3,787 Construction in progress Less accumulated depreciation (8,869) (8,293) Total property, plant and equipment 6,966 9,157 Intangible fixed assets: Goodwill - 2,745 Other intangible assets 714 1,671 Total intangible assets 714 4,416 Investments and other assets: Investment securities 41,376 42,017 Long- debt 1,209 1,280 Net defined benefit asset 2,612 3,318 Deferred tax assets Guarantee deposits paid 2,681 2,857 Insurance reserve fund 4,791 4,581 Other 1, Less allowance for doubtful accounts (1,314) (1,217) Total investments and other assets 52,854 53,934 Total fixed assets 60,534 67,509 TOTAL ASSETS 234, ,

5 (Millions of yen) (as of ) (as of ) LIABILITIES Current liabilities: Notes payable, accounts payable for construction contracts 57,096 62,068 Electronically recorded obligations - operating - 23,571 Short- debt 5,527 6,123 Accounts payable other 27,824 2,119 Income taxes payable 4,310 1,980 Advances received on uncompleted contracts 5,401 7,673 Deferred tax liabilities - 24 Allowance for bonuses to directors Allowance for claim expenses Allowance for losses on construction contracts 1,993 2,175 Other current liabilities 12,997 16,067 Total current liabilities 116, ,900 Non-current liabilities: Bonds payable - 10,000 Net defined benefit liability 1,316 1,041 Allowance for accrued severance indemnities to directors and corporate auditors 8 5 Long- accounts payable other Deferred tax liabilities 5,166 6,271 Other non-current liabilities Total non-current liabilities 7,061 17,942 TOTAL LIABILITIES 123, ,842 NET ASSETS Shareholders equity: Capital stock 13,134 13,134 Capital surplus 12,854 12,730 Retained earnings 80,767 89,839 Treasury stock (8,850) (8,789) Total shareholders equity 97, ,916 Accumulated other comprehensive income: Net unrealized holding gains on securities 11,603 13,230 Foreign currency translation adjustments (191) (360) Remeasurements of defined benefit plans Total accumulated other comprehensive income 11,476 13,630 Subscription rights to shares Non-controlling interests 1,972 3,708 Total net assets 111, ,484 TOTAL LIABILITIES AND NET ASSETS 234, ,

6 (2) Consolidated Statements of Income and Comprehensive Income Consolidated Statements of Income (Millions of yen) Net sales 260, ,933 Cost of sales 226, ,383 Gross profit 34,082 39,550 Selling, general and administrative expenses: Employees salaries and allowances 8,540 9,507 Employees severance and retirement benefits Provision for allowance for accrued severance indemnities to directors and corporate auditors 1 1 Stationery expenses 1,474 1,762 Provision of allowance for doubtful accounts 90 (47) Rents 2,316 2,365 Depreciation Other 8,506 8,858 Total selling, general and administrative expenses 21,699 23,187 Operating income 12,383 16,362 Non-operating income: Interest income Dividends income Insurance income Equity in earnings of affiliates Reversal of provision for loss on guarantees 47 - Rent of real estate Other Total non-operating income 1,891 1,879 Non-operating expenses: Interest expenses Commission fee 21 3 Bond issuance cost - 70 Foreign currency exchange losses Provision of allowance for doubtful accounts Expenses on rent of real estate Other Total non-operating expenses Ordinary income 13,427 17,461 Extraordinary gains: Gain on sales of fixed assets Gain on sale of investment securities 1, Gain on step acquisitions Gain on repayment of securities to retirement benefit trust Other 1 - Total extraordinary gains 1,

7 (Millions of yen) Extraordinary losses: Loss on retirement of fixed assets 7 6 Impairment loss Write-down of investment securities Other Total extraordinary losses 1, Income before income taxes 13,581 17,146 Income taxes-current 5,631 5,031 Income taxes-deferred (732) (41) Total income taxes 4,898 4,989 Net income 8,683 12,157 Net income attributable to non-controlling interests Net income attributable to owners of parent 8,665 11,

8 Consolidated Statements of Comprehensive Income (Millions of yen) Net income 8,683 12,157 Other comprehensive income: Net unrealized holding gains on securities 912 1,622 Foreign currency translation adjustments (510) (163) Remeasurements of defined benefit plans, net of tax Share of other comprehensive income of associates accounted for using equity method Total other comprehensive income 655 2,241 Comprehensive income 9,339 14,398 Comprehensive income attributable to: Comprehensive income attributable to owners of the parent Comprehensive income (loss) attributable to non-controlling interests 9,463 13,959 (124)

9 (3) Consolidated Statements of Cash Flows Cash flows from operating activities: (Millions of yen) Income before income taxes 13,581 17,146 Depreciation and amortization Impairment loss Amortization of goodwill (decrease) in allowance for doubtful accounts 366 (145) (decrease) in allowance for claim expenses (decrease) in allowance for losses on construction contracts (decrease) in provision for loss on guarantees (decrease) in allowance for bonuses to directors (decrease) in provision for directors retirement benefits (47) - (1) 0 (0) (2) Decrease (increase) in net defined benefit asset 1, (decrease) in net defined benefit liability 68 (260) Interest and dividends income (770) (832) Interest expenses Foreign currency exchange loss (gain) 12 (26) Bond issuance cost - 70 Loss (gain) on sale of investment securities (1,026) (46) Write-down of investment securities Loss (gain) on step acquisitions - (152) Equity in (earnings) losses of affiliates (249) (189) Loss (gain) on sales of fixed assets 3 (327) Loss on retirement of fixed assets 7 6 Decrease (increase) in trade receivable 5,923 (9,429) Decrease (increase) in cost of uncompleted contracts (142) (211) (decrease) in notes and accounts payable trade (decrease) in advances received on uncompleted contracts (1,277) 5,488 2,359 1,909 (decrease) in accrued consumption tax 3,955 (4,028) Decrease (increase) in consumption tax receivable (40) (2,183) Other 244 3,384 Subtotal 26,640 12,555 Interests and dividends income Interest paid (54) (141) Income taxes paid (3,925) (7,114) Income taxes refund 55 - Net cash provided by (used in) operating activities 23,528 6,

10 Cash flows from investing activities: (Millions of yen) in time deposits (1,699) (2,616) Decrease in time deposits 3,129 2,672 Purchase of property, plant and equipment (718) (3,303) Proceeds from sales of property, plant and equipment and intangible fixed assets Purchase of investment securities (8) (563) Proceeds from sale of investment securities 2, Purchase of stocks of affiliates (346) (784) Payments of guarantee deposits (219) (220) Proceeds from collection of guarantee deposits Purchase of shares of subsidiaries resulting in change in scope of consolidation - (2,238) Payments of loans receivable (576) (0) Payments of insurance reserve fund (171) (133) Proceeds from refund of insurance reserve fund Other payments (112) (70) Other proceeds Net cash provided by (used in) investing activities 2,329 (5,685) Cash flows from financing activities: Net decrease in bank loans (3,785) (83) Proceeds from long- debt Repayments of long- debt (36) (73) Repayments of lease debt (78) (74) Proceeds from issuance of bonds - 9,929 Cash dividends paid (2,176) (2,732) Cash dividends paid to non-controlling shareholders (1) (1) Other (0) 14 Net cash used in financing activities (6,079) 7,107 Effect of exchange rate changes on cash and cash equivalents (269) 409 Net increase (decrease) in cash and cash equivalents 19,508 8,001 Cash and cash equivalents at beginning of year 26,342 46,556 in cash and cash equivalents from newly consolidated subsidiary Cash and cash equivalents at end of year 46,556 54,

11 2. Non-consolidated Financial Statements (1) Non-consolidated Balance Sheets (Millions of yen) (as of ) (as of ) ASSETS Current assets: Cash and time deposits 31,881 41,835 Notes receivable trade 2,574 1,985 Electronically recorded monetary claims operating 8,771 11,289 Accounts receivable from completed contracts 91,678 94,878 Cost of uncompleted contracts 2,294 2,454 Merchandise and finished goods - 23 Raw materials and supplies - 46 Prepaid expenses Deferred tax assets 1,279 1,264 Accounts receivables other 1,822 4,832 Advances paid Other Less allowance for doubtful accounts (105) (111) Total current assets 141, ,833 Fixed assets: Property, plant and equipment at cost Buildings 6,720 5,392 Accumulated depreciation (3,952) (2,920) Buildings (net) 2,767 2,472 Structures Accumulated depreciation (245) (199) Structures (net) Machinery Accumulated depreciation (76) (65) Machinery (net) Tools, furniture and fixtures 1,968 2,005 Accumulated depreciation (1,091) (1,104) Tools, furniture and fixtures (net) Land 742 2,202 Construction in progress Total property, plant and equipment 4,678 5,715 Intangible fixed assets Software 357 1,218 Telephone rights Other 2 2 Total intangible fixed assets 454 1,315 Investment and other assets Investment securities 35,322 38,065 Stocks of affiliates 12,794 14,648 Investments in capital 2 5 Long- debt 1,516 1,513 Bankruptcy claims and reorganization claims, etc Long- prepaid expenses Prepaid pension cost 2,464 2,165 Guarantee deposits paid 2,320 2,230 Insurance reserve fund 4,652 4,431 Other Less allowance for doubtful accounts (1,311) (1,217) Total investments and other assets 58,615 62,358 Total fixed assets 63,747 69,389 TOTAL ASSETS 205, ,

12 (Millions of yen) (as of ) (as of ) LIABILITIES Current liabilities: Notes payable trade 10,036 10,407 Electronically recorded obligations - operating - 24,075 Accounts payable for construction contracts 38,680 41,873 Short- debt 3,270 3,140 Lease debt Accounts payable 27,546 1,429 Accrued expenses 3,600 4,473 Income taxes payable 3,849 1,548 Advances received on uncompleted contracts 4,558 5,996 Deposits received 6,461 8,494 Unearned revenue - 0 Allowance for bonuses to directors Allowance for claim expenses Allowance for losses on construction contracts 1,869 2,146 Total current liabilities 100, ,355 Non-current liabilities: Bonds payable - 10,000 Long- accounts payable other Lease debt Deferred tax liabilities 5,056 5,786 Other Total non-current liabilities 5,348 16,060 TOTAL LIABILITIES 105, ,416 NET ASSETS Shareholders equity: Capital stock 13,134 13,134 Capital surplus Capital reserve 12,853 12,853 Total capital surplus 12,853 12,853 Retained earnings Legal reserve 3,283 3,283 Other retained earnings Dividend equalization reserve Reserve for employees severance and retirement benefits General reserve 42,878 42,878 Retained earnings carried forward 22,812 30,385 Total retained earnings 70,571 78,144 Treasury stock (8,674) (8,615) Total shareholders equity 87,885 95,517 Valuation and translation adjustments: Net unrealized holding gains on securities 11,461 13,061 Total valuation and translation adjustments 11,461 13,061 Subscription rights to shares Total net assets 99, ,806 TOTAL LIABILITIES AND ASSETS 205, ,

13 (2) Non-consolidated Statements of Income (Millions of yen) Net sales 200, ,474 Cost of sales 175, ,557 Gross profit 25,726 28,917 Selling, general and administrative expenses: Compensation for directors and corporate auditors Provision for allowance for bonuses to directors Employees salaries and allowances 5,028 5,791 Share-based compensation expenses Employees severance and retirement benefits Legal welfare expenses Welfare expenses Repairs and maintenance expenses Stationary expenses 1,246 1,497 Correspondence and transportation expenses Power utilities expenses Research study expenses Advertising expenses Provision of allowance for doubtful accounts 3 2 Entertainment expenses Contribution Rents 1,738 1,846 Depreciation Taxes and dues Insurance expenses Miscellaneous expenses Total selling, general and administrative expenses 14,198 15,347 Operating income 11,527 13,570 Non-operating income: Interest income Interest on marketable securities 5 5 Dividends income 1,067 1,362 Insurance income Insurance dividends income Rent of real estate Reversal of provision for loss on guarantees 47 - Other Total non-operating income 1,832 2,

14 (Millions of yen) Non-operating expenses: Interest expenses Bond issuance cost - 70 Commission fee 21 3 Foreign currency exchange losses Provision of allowance for doubtful accounts Expenses on rent of real estate Other Total non-operating expenses Ordinary income 12,703 15,023 Extraordinary gains: Gain on sales of fixed assets Gain on sale of investment securities 1, Gain on repayment of securities to retirement benefit trust Other 1 - Total extraordinary gains 1, Extraordinary losses: Loss on retirement of fixed assets 4 4 Impairment loss Write-down of investment securities Valuation loss on stocks of affiliates Other 0 47 Total extraordinary losses 1, Income before income taxes 12,939 14,402 Income taxes-current 5,013 4,132 Income taxes-deferred (680) (36) Total income taxes 4,333 4,096 Net income 8,606 10,

15 3. Other (1) Conditions of Orders Received and Sales (Consolidated) (i) Orders received (Millions of yen; %) Amount Amount Amount of Percentage of Construction business General-purpose systems 168, , Industrial systems 97, , , Subtotal 265, , , Equipment manufacturing and sales business 7, , (1,199) (15.3) Other Total [overseas] [repairs and maintenance] 273,464 [45,193] [21,954] [16.5] [8.0] 288,646 [47,507] [22,710] [16.5] [7.9] 15,181 [2,314] [755] 5.6 [5.1] [3.4] (ii) Sales (Millions of yen; %) Amount Amount Amount of Percentage of Construction business General-purpose systems 162, , , Industrial systems 88, , , Subtotal 251, , , Equipment manufacturing and sales business 8, , (1,504) (17.5) Other Total [overseas] [repairs and maintenance] 260,204 [33,824] [21,739] [13.0] [8.4] 289,933 [47,343] [22,856] [16.3] [7.9] 29,728 [13,519] [1,117] 11.4 [40.0] [5.1] (iii) Amount carried forward (Millions of yen; %) (as of ) (as of ) Amount Amount Amount of Percentage of Construction business General-purpose systems 182, , (12,335) (6.8) Industrial systems 47, , , Subtotal 229, , (863) (0.4) Equipment manufacturing and sales business 1, , (423) (26.4) Other Total [overseas] [repairs and maintenance] 231,505 [24,687] [3,007] [10.7] [1.3] 230,218 [24,851] [2,860] [10.8] [1.2] (1,286) [164] [(146)] (0.6) [0.7] [(4.9)] (Note) Transactions made between segments with respect to orders received, sales and amounts carried forward are set off and deleted

16 (2) Conditions of Orders Received and Sales (Non-consolidated) (i) Orders received (Millions of yen; %) Amount Amount Amount of Percentage of Construction business General-purpose systems 151, , (478) (0.3) Industrial systems 52, , , Total 203, , , (ii) Sales (Millions of yen; %) Amount Amount Amount of Percentage of Construction business General-purpose systems 145, , , Industrial systems 55, , (864) (1.6) Total 200, , , (iii) Amount carried forward (Millions of yen; %) (as of ) (as of ) Amount Amount Amount of Percentage of Construction business General-purpose systems 181, , (12,520) (6.9) Industrial systems 24, , , Total 205, , (1,341) (0.7)

17 (3) Review of Operations (Consolidated) (Financial results for the years ended March 31, 2014 to 2018) (Financial forecasts for the year ending March 31, 2019) (Fraction less than one million yen has been omitted) (Millions of yen; %) Item Net sales Gross profit Year Selling, general and administrative expenses March 31, 2014 March 31, 2015 Results March 31, 2016 Forecasts Year ending March 31, , , , , , ,000 (4.4) ,308 27,800 29,526 34,082 39, ,527 20,073 20,237 21,699 23, ,780 7,727 9,289 12,383 16,362 16,500 Operating income (0.7) Non-operating income 1,596 1,468 2,066 1,891 1,879 Non-operating expenses Non-operating income and expenses +1, ,313 +1,044 +1,098 9,109 8,582 10,602 13,427 17,461 17,500 Ordinary income (5.8) Extraordinary gains , Extraordinary losses 1, , Extraordinary gains and losses (1,224) +149 (163) +153 (314) Income before income taxes 7,884 8,732 10,438 13,581 17, Income taxes current 3,593 2,583 3,470 5,631 5,031 Income taxes deferred (5) (732) (41) Net income 4,296 5,356 6,674 8,683 12,157 Net income (loss) attributable to non-controlling interests Net income attributable to 4,011 5,196 6,650 8,665 11,804 11,800 owners of parent (0.0) 3.9 Orders received Amount carried forward 264, , , , , , (3.3) (3.0) 192, , , , , , (0.6) (8.7)

18 (4) Review of Operations (Non-consolidated) (Financial results for the years ended March 31, 2014 to 2018) (Financial forecasts for the year ending March 31, 2019) (Fraction less than one million yen has been omitted) (Millions of yen; %) Item Net sales Gross profit Year Selling, general and administrative expenses March 31, 2014 March 31, 2015 Results March 31, 2016 Forecasts Year ending March 31, , , , , , ,000 (5.6) (2.8) ,733 19,684 21,467 25,726 28, ,813 12,703 13,338 14,198 15,347 (1.0) 6.9 (0.9) ,920 6,981 8,129 11,527 13,570 13,100 Operating income (3.5) 5.7 Non-operating income 1,517 1,490 1,796 1,832 2,100 Non-operating expenses Non-operating income and expenses +1, ,076 +1,175 +1,453 7,134 7,909 9,206 12,703 15,023 14,600 Ordinary income (2.8) 6.4 Extraordinary gains , Extraordinary losses 1, , Extraordinary gains and losses (1,244) (145) (397) +235 (621) Income before income taxes Income taxes current Income taxes deferred Net income 5,889 7,764 8,808 12,939 14, ,674 2,036 2,887 5,013 4, (680) (36) 3,186 4,892 5,804 8,606 10,306 10, Orders received Amount carried forward 200, , , , , , (5.2) 6.3 (5.2) 159, , , , , , (0.7) (11.3)