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.
August 7, 2023
Consolidated Financial Results
for the First Six Months of the Year Ending December 31, 2023
Company name: | ITOKI CORPORATION |
Listing: | Tokyo Stock Exchange |
Stock code: | 7972 |
URL: | https://www.itoki.jp/ |
Representative: | Koji Minato, President & Representative Director |
Yoshiaki Moriya, Director, Managing Executive Officer, General Manager of | |
Inquiries: | Administrative Division |
TEL: +81-3-6910-3910 (from overseas) |
Scheduled date to file Quarterly Report: | August 7, 2023 |
Scheduled date to commence dividend payments: | - |
Preparation of supplementary material on quarterly financial results: Yes | |
Holding of quarterly financial results presentation meeting: | Yes (for institutional investors and security |
analysts) |
(Millions of yen with fractional amounts discarded, unless otherwise noted)
1. Consolidated performance for the first six months of the fiscal year ending December 31, 2023 (from January 1, 2023 to June 30, 2023)
(1) Consolidated operating results (cumulative) | (Percentages indicate year-on-year changes.) | ||||||||||
Net sales | Operating profit | Ordinary profit | Profit attributable to | ||||||||
owners of parent | |||||||||||
First six months of the fiscal | Millions of yen | % | Millions of yen | % | Millions of yen | % | Millions of yen | % | |||
year ending | |||||||||||
December 31, 2023 | 68,190 | 7.0 | 7,002 | 60.2 | 7,095 | 60.7 | 4,707 | 28.1 | |||
December 31, 2022 | 63,756 | 3.4 | 4,371 | 47.0 | 4,416 | 56.0 | 3,676 | 60.5 |
Note: Comprehensive income
First six months of the fiscal year ending December 31, 2023 First six months of the fiscal year ending December 31, 2022
5,134 million of yen (40.1%)
3,664 million of yen (47.0%)
Earnings per share | Diluted earnings per share | |
First six months of the fiscal | Yen | Yen |
year ending | ||
December 31, 2023 | 103.90 | 91.23 |
December 31, 2022 | 81.27 | - |
(2) Consolidated financial position
Total assets | Net assets | Equity ratio | Net assets per share | ||
Millions of yen | Millions of yen | % | Yen | ||
First six months of the fiscal | |||||
year ending | December 31, | 111,693 | 53,418 | 47.7 | 1,176.10 |
2023 | |||||
Fiscal year ended December | 115,288 | 49,910 | 43.2 | 1,100.33 | |
31, 2022 | |||||
Reference: | Equity | ||||
First six months of the fiscal year ending December 31, 2023: | 53,334 million of yen | ||||
Fiscal year ended December 31, 2022: | 49,825 million of yen |
2. Cash dividends
Annual dividends | ||||||||
First quarter-end | Second quarter-end | Third quarter-end | Fiscal year-end | Total | ||||
Yen | Yen | Yen | Yen | Yen | ||||
Fiscal year ended December | - | 0.00 | - | 37.00 | 37.00 | |||
31, 2022 | ||||||||
Fiscal year ending December | - | 0.00 | ||||||
31, 2023 | ||||||||
Fiscal year ending December | - | 32.00 | 32.00 | |||||
31, 2023 (Forecast) | ||||||||
Note: | Revision to the forecasts of cash dividends most recently announced: Yes | |||||||
Note: | Breakdown of fiscal year-end dividends for the fiscal year ended December 31, 2022 | |||||||
Ordinary dividend: | 17.00 yen | |||||||
Special dividend: | 20.00 yen |
3. Consolidated earnings forecasts for the fiscal year ending December 31, 2023 (from January 1, 2023 to December 31, 2023)
(Percentages indicate year-on-year changes.)
Net sales | Operating profit | Ordinary profit | Profit attributable to | Earnings | ||||||
owners of parent | per share | |||||||||
Millions of | Millions of | Millions of | Millions of | |||||||
yen | % | yen | % | yen | % | yen | % | Yen | ||
Fiscal year ending December | 130,000 | 5.4 | 7,500 | 63.7 | 7,500 | 79.5 | 4,800 | (9.3) | 105.84 | |
31, 2023 | ||||||||||
Note: Revision to the consolidated earnings forecast most recently announced: | Yes |
* Notes
-
Changes in significant subsidiaries during the first six months of the fiscal year ending December 31, 2023:
(changes in specified subsidiaries accompanying changes in scope of consolidation)
New: -companies (Company names) | / Exception: -companies |
None
(Company names)
(2) Application of specific accounting for preparing the consolidated quarterly financial statements: | None |
- Changes in accounting policies, changes in accounting estimates, and restatement of prior period financial statements after error corrections
a. Changes in accounting policies due to revisions to accounting standards and other regulations: | Yes |
b. Changes in accounting policies due to other reasons: | None |
c. Changes in accounting estimates: | None |
d. Restatement of prior period financial statements after error corrections: | None |
(Note) For details, please refer to "2. Consolidated Quarterly Financial Statements and Main Notes" - "(4) Notes on Consolidated Quarterly Financial Statements (Changes in Accounting Policies)" on page 12 of the appendix.
-
Number of issued shares (common shares)
a. Total number of issued shares at the end of the period (including treasury shares)
As of June 30, 2023 | 45,664,437 | shares |
Fiscal year ended December 31, 2022 | 45,664,437 | shares |
b. Number of treasury shares at the end of the period | ||
As of June 30, 2023 | 316,086 | shares |
Fiscal year ended December 31, 2022 | 381,659 | shares |
c. Average number of shares during the period (cumulative from the beginning of the fiscal year) | ||
As of June 30, 2023 | 45,304,566 | shares |
As of June 30, 2022 | 45,231,921 | shares |
- Quarterly financial results reports are not required to be subjected to quarterly reviews conducted by certified public accountants or an audit corporation.
- Explanation concerning proper use of earnings forecasts and other specific matters
All forward-looking statements (earnings forecasts, etc.) in this document are prepared based on information currently available to the Company and on certain assumptions deemed to be reasonable. Actual results may differ significantly from the forecast figures due to various factors. For notes on assumptions for the earnings forecasts and notes on usage of the earnings forecasts, please refer to "1. Qualitative Information on Quarterly Financial Results" - "(3) Explanation of Forward Looking Information for Earnings Forecasts, Etc." on page 4 of the appendix.
- Appendix Table of Contents
-
Qualitative Information on Quarterly Financial Results …………………………………………………………………2
(1) Explanation of Operating Results …………………………………………………………………………… 2
(2) Explanation of Financial Position …………………………………………………………………………… 3
(3) Explanation of Forward Looking Information for Earnings Forecasts, Etc. ……………………………………………4 - . Consolidated Quarterly Financial Statements and Main Notes …………………………………………… 6
(1) Consolidated Quarterly Balance Sheets …………………………………………………………………………… 6
(2) Consolidated Quarterly Statements of Income and Consolidated Quarterly Statements of Comprehensive Income …8
(3) Consolidated Quarterly Statements of Cash Flows…………………………………………………………… 10
(4) Notes on the Consolidated Quarterly Financial Statements …………………………………………………………12
(Notes on Assumption of Going Concern)…………………………………………………………………1 2 (Notes in the Event of Significant Fluctuations in the Amount of Shareholders' Equity )………………12
(Changes in Accounting Policies)…………………………………………………………………………………12
(Additional Information)…………………………………………………………………………………………1 2 (Segment Information, Etc.)………………………………………………………………………………1 3
-
Qualitative Information on Quarterly Financial Results …………………………………………………………………2
1
1. Qualitative Information on Quarterly Financial Results
(1) Explanation of Operating Results
In the current fiscal year, which is the final year of the medium-term management plan RISE ITOKI 2023, the Group will continue to promote various measures based on the structural reform project. In the first six months of the current consolidated cumulative period, the Group aimed to become a highly profitable corporation with a robust structure. We strove to increase sales and profit through measures such as proposing new work styles and workplaces in order to fulfill a leading role in creating a post-COVID working environment, and conducting sales activities that focus on increasing value.
(Millions of yen)
Second quarter-end | Second quarter-end | |||
2022 | 2023 | Increase/decrease | Increase/decrease | |
Consolidated | Consolidated | (amount) | (%) | |
cumulative period | cumulative period | |||
Net sales | 63,756 | 68,190 | 4,434 | 7.0% |
Gross profit | 24,243 | 27,019 | 2,776 | 11.5% |
Selling, general and administrative | 19,871 | 20,017 | 145 | 0.7% |
expenses | ||||
Operating profit | 4,371 | 7,002 | 2,630 | 60.2% |
Non-operating income | 289 | 239 | (49) | (17.2%) |
Non-operating expenses | 245 | 147 | (98) | (40.0%) |
Ordinary profit | 4,416 | 7,095 | 2,679 | 60.7% |
Extraordinary income | 925 | 16 | (908) | (98.2%) |
Extraordinary losses | 108 | 31 | (76) | (70.7%) |
Profit before income taxes | 5,232 | 7,079 | 1,847 | 35.3% |
Total income taxes | 1,628 | 2,371 | 743 | 45.6% |
Profit per share | 3,604 | 4,708 | 1,104 | 30.6% |
Profit attributable to owners of | 3,676 | 4,707 | 1,031 | 28.1% |
parent | ||||
(i) Net sales
Net sales were 68,190 million yen, an increase of 4,434 million yen (7.0%) year-on-year.
- The workplace business performed well mainly due to renovation projects, office relocations, etc., to fit new hybrid work styles.
- In the equipment and public works-related business, demand remained strong for public facility equipment such as display cases for museums and art galleries and digital signage remained firm.
- In the IT and sharing business, there was strong performance by the system development business and the system verification business, which has been promoted as the second pillar. The sharing business for office space also performed well.
- Gross profit
Gross profit was 27,019 million yen, an increase of 2,776 million yen (11.5%) year-on-year.
- In the workplace business, while predicting the impact of soaring raw material prices, profit increased significantly due to an improved profit margin as the effect of increased revenue and an improvement in value provided.
- In the equipment and public works-related business, while predicting the impact of soaring raw material prices, profit increased due to the effect of increased revenue caused by increased demand and strong sales of equipment for public facilities, and due to an improved profit margin.
- In the IT and sharing business, the system development business, system verification business, and office sharing business performed well.
(iii) Selling, general and administrative expenses
Selling, general and administrative expenses were 20,017 million yen, a slight increase of 145 million yen (0.7%) year-on-year. This increase was the result of factors such as the planned implementation of strategic expenditures, etc., for future leaps in performance such as strengthening IT infrastructure to promote DX, and hiring of mid-career human resources. It was also the result of SG&A expenses reductions such as continuing to cut logistics costs through the structural reform project.
(iv) Operating profit
As a result of the above, operating profit was 7,002 million yen, an increase of 2,630 million yen (60.2%) year-on-year. This means that we were able to secure operating profit that exceeded expectations.
- In the workplace business, profit increased significantly due to an improved profit margin as the effect of increased revenue and an improvement in value provided.
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Itoki Corporation published this content on 22 August 2023 and is solely responsible for the information contained therein. Distributed by Public, unedited and unaltered, on 22 August 2023 06:17:02 UTC.