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.
November 7, 2023
Consolidated Financial Results
for the Six Months Ended September 30, 2023
(Under Japanese GAAP)
Company name: | MITSUI-SOKO HOLDINGS Co., Ltd. |
Listing: | Tokyo Stock Exchange |
Securities code: | 9302 |
URL: | https://www.mitsui-soko.com/en/ |
Representative: | Hirobumi Koga, Representative Director, President & CEO |
Inquiries: | Takeshi Matsuki, General Manager of Finance and Accounting Division |
Telephone: | +81-3-6400-8006 |
Scheduled date to file quarterly securities report: | November 8, 2023 |
Scheduled date to commence dividend payments: | December 4, 2023 |
Preparation of supplementary material on quarterly financial results: Yes | |
Holding of quarterly financial results briefing: | Yes (for securities analysts and |
institutional investors) |
(Yen amounts are rounded down to millions, unless otherwise noted.)
1. Consolidated financial results for the six months ended September 30, 2023 (from April 1, 2023 to September 30, 2023)
(1) Consolidated operating results (cumulative) | (Percentages indicate year-on-year changes.) | |||||||||
Operating revenue | Operating profit | Ordinary profit | Profit attributable to | |||||||
owners of parent | ||||||||||
Six months ended | Millions of yen | % | Millions of yen | % | Millions of yen | % | Millions of yen | % | ||
September 30, 2023 | 131,862 | (16.1) | 11,843 | (13.4) | 12,206 | (15.5) | 7,182 | (21.7) | ||
September 30, 2022 | 157,252 | 12.3 | 13,673 | 17.5 | 14,446 | 23.2 | 9,169 | 36.1 | ||
Note: Comprehensive income | For the six months ended September 30, 2023: | ¥13,231 million | [(6.7)%] | |||||||
For the six months ended September 30, 2022: | ¥14,179 million | [72.5%] | ||||||||
Basic earnings per | Diluted earnings per | |||||||||
share | share | |||||||||
Six months ended | Yen | Yen | ||||||||
September 30, 2023 | 288.54 | - | ||||||||
September 30, 2022 | 368.90 | - |
(2) Consolidated financial position
Total assets | Net assets | ||
As of | Millions of yen | Millions of yen | |
September 30, 2023 | 264,799 | 111,947 | |
March 31, 2023 | 258,679 | 104,078 | |
Reference: Equity capital | |||
As of September 30, 2023: | ¥101,919 million | ||
As of March 31, 2023: | ¥93,285 million |
Equity ratio
%
38.5
36.1
2. Cash dividends
Annual dividends per share | |||||
First quarter-end | Second quarter-end | Third quarter-end | Fiscal year-end | Total | |
Yen | Yen | Yen | Yen | Yen | |
Fiscal year ended | - | 72.00 | - | 117.00 | 189.00 |
March 31, 2023 | |||||
Fiscal year ending | - | 67.00 | |||
March 31, 2024 | |||||
Fiscal year ending | - | 75.00 | 142.00 | ||
March 31, 2024 | |||||
(Forecast) | |||||
Note: Revisions to the forecast of cash dividends most recently announced: None
3. Consolidated earnings forecasts for the fiscal year ending March 31, 2024 (April 1, 2023 to March 31, 2024)
(Percentages indicate year-on-year changes.)
Operating revenue | Operating profit | Ordinary profit | Profit attributable to | Basic | |||||
earnings per | |||||||||
owners of parent | |||||||||
share | |||||||||
Millions of yen | % | Millions of yen | % | Millions of yen | % | Millions of yen | % | Yen | |
Fiscal year ending | 273,000 | (9.3) | 21,500 | (17.2) | 20,700 | (22.0) | 11,800 | (24.4) | 473.86 |
March 31, 2024 | |||||||||
Note: Revisions to the earnings forecasts most recently announced: None |
* Notes
-
Changes in significant subsidiaries during the period (changes in specified subsidiaries resulting in the change in scope of consolidation): None
Newly included: -
Excluded: - - Adoption of accounting treatment specific to the preparation of quarterly consolidated financial statements: None
- Changes in accounting policies, changes in accounting estimates, and restatement
- Changes in accounting policies due to revisions to accounting standards and other regulations: None
- Changes in accounting policies due to other reasons: None
- Changes in accounting estimates: None
- Restatement: None
- Number of issued shares (common shares)
- Total number of issued shares at the end of the period (including treasury shares)
As of September 30, 2023
As of March 31, 2023
24,957,602 shares
24,921,802 shares
(ii) Number of treasury shares at the end of the period
As of September 30, 2023
As of March 31, 2023
46,932 shares
46,808 shares
- Average number of shares outstanding during the period (cumulative from the beginning of the fiscal year)
Six months ended September 30, 2023
Six months ended September 30, 2022
24,892,859 shares
24,855,718 shares
- Quarterly financial results reports are exempt from quarterly review conducted by certified public accountants or an audit corporation.
-
Proper use of earnings forecasts, and other special matters
Figures for the forecasts, outlooks, and targets described in this report that are not historical facts are calculated based on the currently available information and uncertain factors that may have an effect on future performance. The actual results may differ from the forecasts. Regarding earnings forecasts, please refer to "(3) Explanation of earnings forecasts and other forward-looking statements," under "1. Qualitative information on quarterly financial results," on page 4 of the attached materials.
MITSUI-SOKO HOLDINGS Co., Ltd. (9302) | ||
Attached Materials | ||
Index | ||
1. Qualitative information on quarterly financial results | 2 | |
(1) | Explanation of operating results | 2 |
(2) | Explanation of financial position | 3 |
(3) | Explanation of earnings forecasts and other forward-looking statements | 4 |
2. Quarterly consolidated financial statements and significant notes thereto | 5 | |
(1) | Quarterly consolidated balance sheet | 5 |
(2) | Quarterly consolidated statement of income and quarterly consolidated statement of | |
comprehensive income | 7 | |
Quarterly consolidated statement of income | ||
[For the first six months] | 7 | |
Quarterly consolidated statement of comprehensive income | ||
[For the first six months] | 8 | |
(3) | Quarterly consolidated statement of cash flows | 9 |
(4) | Notes to quarterly consolidated financial statements | 10 |
Notes on premise of going concern | 10 | |
Notes when there are significant changes in amounts of shareholders' equity | 10 | |
Segment information, etc | 10 | |
3. Supplemental information | 11 |
- 1 -
MITSUI-SOKO HOLDINGS Co., Ltd. (9302)
1. Qualitative information on quarterly financial results
-
Explanation of operating results
The overview of the financial results for the six months ended September 30, 2023 is as follows.
(Millions of yen) | ||||
Consolidated total amount | Six months ended | Six months ended | Year-on-year | Changes |
September 30, | September 30, | |||
comparison | ||||
2022 | 2023 | |||
Operating revenue | 157,252 | 131,862 | (25,390) | (16.1)% |
Operating profit | 13,673 | 11,843 | (1,830) | (13.4)% |
Ordinary profit | 14,446 | 12,206 | (2,239) | (15.5)% |
Profit attributable to owners of parent | 9,169 | 7,182 | (1,986) | (21.7)% |
- Revenues and earnings declined year on year, mainly due to the impact of lower unit prices for ocean and air freight.
- As personnel expenses and other costs rose, MITSUI-SOKO HOLDINGS Co., Ltd. (the "Company") worked to streamline operations related to transportation and cargo handling.
Operating results by segment are as follows.
(a) | Logistics Business | ||||
(Millions of yen) | |||||
Logistics Business | Six months ended | Six months ended | Year-on-year | Changes | |
September 30, | September 30, | ||||
comparison | |||||
2022 | 2023 | ||||
Operating revenue | 152,996 | 127,616 | (25,379) | (16.6)% | |
Operating profit | 12,502 | 11,224 | (1,277) | (10.2)% | |
Business environment: The business environment surrounding the Company is as follows.
- As an inventory adjustment phase by companies persisted into the second quarter of this fiscal year, international transportation cargo movements remained sluggish.
- The disruption in the shipping market and supply constraints on cargo space due to reduced air passenger flights have been resolved, and as a result unit prices for ocean and air freight declined compared to the previous fiscal year. Currently, the unit price level for freight has remained unchanged.
Operating situation: The situation regarding the operating activities of the Company is as follows.
- Revenues and earnings in the forwarding business declined due to the effects of lower unit prices for ocean and air freight.
- In the home appliance-related logistics, the transportation, delivery and installation of large-sized home appliances performed well, with an increase in the number of items handled.
- The Company worked to improve truck loading efficiency in the domestic transportation and delivery of home appliances and daily necessities, as well as to streamline operations at logistics centers, to reduce costs while responding to rising personnel and fuel expenses.
- 2 -
MITSUI-SOKO HOLDINGS Co., Ltd. (9302)
- Real Estate Business
(Millions of yen) | ||||
Six months ended | Six months ended | Year-on-year | ||
Real Estate Business | September 30, | September 30, | Changes | |
comparison | ||||
2022 | 2023 | |||
Operating revenue | 4,658 | 4,655 | (2) | (0.1)% |
Operating profit | 2,832 | 2,820 | (11) | (0.4)% |
Business environment: The business environment surrounding the Company is as follows.
- The average vacancy rates for existing office properties in the Tokyo business district remained mostly unchanged, while average rents declined slightly.
Operating situation: The situation regarding the operating activities of the Company is as follows.
- There were no significant changes in the vacancy rate and rent levels for office properties owned by the Company, and both operating revenue and operating profit were nearly unchanged.
- Explanation of financial position
- Status of changes in financial position
(Millions of yen) | ||||
Consolidated total amount | As of March 31, | As of September | Comparison from | Changes |
2023 | 30, 2023 | March 31, 2023 | ||
Equity capital | 93,285 | 101,919 | 8,633 | 9.3% |
Total assets | 258,679 | 264,799 | 6,119 | 2.4% |
Equity ratio | 36.1% | 38.5% | +2.4 pt | 6.7% |
Interest-bearing debt | 92,621 | 89,392 | (3,228) | (3.5)% |
D/E ratio | 0.99 | 0.88 | (0.12) | (11.7)% |
- The increase in equity capital was due to the recording of profit attributable to owners of parent and an increase in foreign currency translation adjustment due to the weak yen.
- The increase in total assets was due mainly to an increase in cash and deposits.
- The decrease in interest-bearing debt was due to the repayments of borrowings.
- The Company will continue its operations policy that aims for a D/E ratio of approximately 1.0.
- 3 -
MITSUI-SOKO HOLDINGS Co., Ltd. (9302)
(ii) Status of cash flows
Consolidated total amount | Six months ended | Six months ended |
September 30, 2022 | September 30, 2023 | |
Cash and cash equivalents at beginning | 22,822 | 33,417 |
of period | ||
Net cash provided by (used in) operating | 19,180 | 15,579 |
activities | ||
Net cash provided by (used in) investing | (2,310) | (3,816) |
activities | ||
Net cash provided by (used in) | (9,145) | (9,020) |
financing activities | ||
Cash and cash equivalents at end of | 31,615 | 37,622 |
period | ||
(Millions of yen)
Year-on-year
comparison
-
(3,600)
(1,505)
124
-
- The main items in cash flows from operating activities are profit before income taxes, cash reserves due to recording of depreciation, and a decrease in trade receivables.
- The main items in cash flows from investing activities are software investment based on DX strategy, investment to maintain and update existing logistics facilities, and investments in partner companies working to commercialize trunk route transportation services using autonomous trucks.
- The main items in cash flows from financing activities are repayments of borrowings and payments of dividends.
- Changes in cash flow-related indicators
Fiscal year ended | Six months ended | Fiscal year ended | Six months ended | |
March 31, 2022 | September 30, 2022 | March 31, 2023 | September 30, 2023 | |
Equity ratio (%) | 30.8 | 33.8 | 36.1 | 38.5 |
Equity ratio based on market value (%) | 24.1 | 29.0 | 37.7 | 40.5 |
Interest-bearing debt to cash flow ratio | 4.3 | 2.5 | 2.9 | 2.9 |
Interest coverage ratio | 27.1 | 42.6 | 37.1 | 37.1 |
Notes: Equity ratio: Equity capital/Total assets
Equity ratio based on market value: Market capitalization/Total assets
Interest-bearing debt to cash flow ratio: Interest-bearing debt/Cash flow
Interest coverage ratio: Cash flow/Interest payments
- Each of the above indicators is calculated based on consolidated financial figures.
- Market capitalization is calculated as follows: Final stock price at the end of the period x Total number of issued shares at the end of the period (excluding treasury shares).
- The figure used for cash flow is "Net cash provided by (used in) operating activities" on the consolidated statement of cash flows. Interest-bearing debt includes all liabilities recorded on the consolidated balance sheet on which interest is paid. Furthermore, regarding the interest payments, the figure for "Interest paid" on the consolidated statement of cash flows is used.
- Interest-bearingdebt to cash flow ratio is calculated at 2 times for the period under review, since cash flow is converted to an annual amount.
- Explanation of earnings forecasts and other forward-looking statements
The consolidated earnings for the six months ended September 30, 2023 have mostly been in line with the forecast figures announced on August 2, 2023. Therefore, the full-year consolidated earnings forecasts have been left unchanged.
- 4 -
MITSUI-SOKO HOLDINGS Co., Ltd. (9302)
2. Quarterly consolidated financial statements and significant notes thereto
(1) Quarterly consolidated balance sheet
(Millions of yen) | |||
As of March 31, 2023 | As of September 30, 2023 | ||
Assets | |||
Current assets | |||
Cash and deposits | 34,480 | 38,506 | |
Notes and operation accounts receivable trade, and | 32,291 | 30,706 | |
contract assets | |||
Inventories | 1,999 | 1,465 | |
Other | 7,796 | 9,682 | |
Allowance for doubtful accounts | (52) | (29) | |
Total current assets | 76,515 | 80,330 | |
Non-current assets | |||
Property, plant and equipment | |||
Buildings and structures, net | 71,462 | 69,976 | |
Land | 56,724 | 57,356 | |
Other, net | 10,544 | 10,541 | |
Total property, plant and equipment | 138,730 | 137,874 | |
Intangible assets | |||
Goodwill | 1,670 | 1,651 | |
Other | 8,851 | 10,013 | |
Total intangible assets | 10,521 | 11,665 | |
Investments and other assets | |||
Investment securities | 11,068 | 13,508 | |
Other | 22,451 | 22,039 | |
Allowance for doubtful accounts | (609) | (619) | |
Total investments and other assets | 32,911 | 34,928 | |
Total non-current assets | 182,163 | 184,468 | |
Total assets | 258,679 | 264,799 |
- 5 -
MITSUI-SOKO HOLDINGS Co., Ltd. (9302)
(Millions of yen) | |||
As of March 31, 2023 | As of September 30, 2023 | ||
Liabilities | |||
Current liabilities | |||
Trade notes and accounts payable | 16,893 | 16,423 | |
Short-term borrowings | 706 | 716 | |
Current portion of long-term borrowings | 8,461 | 8,443 | |
Income taxes payable | 2,696 | 2,791 | |
Provision for bonuses | 3,884 | 3,964 | |
Other | 21,585 | 22,713 | |
Total current liabilities | 54,227 | 55,052 | |
Non-current liabilities | |||
Bonds payable | 25,000 | 25,000 | |
Long-term borrowings | 50,900 | 48,318 | |
Retirement benefit liability | 6,467 | 6,485 | |
Other | 18,005 | 17,995 | |
Total non-current liabilities | 100,373 | 97,799 | |
Total liabilities | 154,601 | 152,852 | |
Net assets | |||
Shareholders' equity | |||
Share capital | 11,156 | 11,219 | |
Capital surplus | 5,603 | 5,666 | |
Retained earnings | 64,244 | 68,516 | |
Treasury shares | (103) | (104) | |
Total shareholders' equity | 80,900 | 85,298 | |
Accumulated other comprehensive income | |||
Valuation difference on available-for-sale securities | 4,295 | 5,610 | |
Deferred gains or losses on hedges | (0) | 0 | |
Foreign currency translation adjustment | 6,560 | 9,560 | |
Remeasurements of defined benefit plans | 1,528 | 1,449 | |
Total accumulated other comprehensive income | 12,385 | 16,620 | |
Non-controlling interests | 10,792 | 10,027 | |
Total net assets | 104,078 | 111,947 | |
Total liabilities and net assets | 258,679 | 264,799 |
- 6 -
MITSUI-SOKO HOLDINGS Co., Ltd. (9302)
-
Quarterly consolidated statement of income and quarterly consolidated statement of comprehensive income
Quarterly consolidated statement of income [For the first six months]
(Millions of yen) | |||
Six months ended | Six months ended | ||
September 30, 2022 | September 30, 2023 | ||
Operating revenue | |||
Warehousing fee income | 18,806 | 19,149 | |
Stevedoring income | 16,943 | 16,375 | |
Port terminal fee income | 8,996 | 8,572 | |
Transportation income | 84,567 | 61,781 | |
Real estate income | 4,256 | 4,245 | |
Other | 23,681 | 21,737 | |
Total operating revenue | 157,252 | 131,862 | |
Operating costs | |||
Direct operation expenses | 81,097 | 57,614 | |
Rent expenses | 10,053 | 10,506 | |
Depreciation | 3,949 | 3,945 | |
Salaries and allowances | 18,977 | 19,239 | |
Other | 20,448 | 19,083 | |
Total operating costs | 134,526 | 110,388 | |
Operating gross profit | 22,726 | 21,473 | |
Selling, general and administrative expenses | |||
Depreciation | 697 | 846 | |
Remuneration, salaries and allowances | 4,227 | 4,370 | |
Amortization of goodwill | 223 | 75 | |
Other | 3,904 | 4,337 | |
Total selling, general and administrative expenses | 9,052 | 9,630 | |
Operating profit | 13,673 | 11,843 | |
Non-operating income | |||
Interest income | 113 | 258 | |
Dividend income | 205 | 214 | |
Foreign exchange gains | 496 | 265 | |
Share of profit of entities accounted for using equity | 280 | 82 | |
method | |||
Other | 333 | 278 | |
Total non-operating income | 1,429 | 1,100 | |
Non-operating expenses | |||
Interest expenses | 449 | 407 | |
Commission expenses | 36 | 46 | |
Loss on retirement of non-current assets | 26 | 64 | |
Other | 144 | 216 | |
Total non-operating expenses | 656 | 736 | |
Ordinary profit | 14,446 | 12,206 | |
Extraordinary income | |||
Gain on return of assets from retirement benefits trust | 496 | - | |
Gain on reversal of asset retirement obligations | - | 139 | |
Total extraordinary income | 496 | 139 | |
Profit before income taxes | 14,942 | 12,346 | |
Income taxes | 4,122 | 3,739 | |
Profit | 10,820 | 8,606 | |
Profit attributable to non-controlling interests | 1,650 | 1,424 | |
Profit attributable to owners of parent | 9,169 | 7,182 |
- 7 -
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Mitsui Soko Holdings Co. Ltd. published this content on 01 December 2023 and is solely responsible for the information contained therein. Distributed by Public, unedited and unaltered, on 01 December 2023 07:34:17 UTC.