Zenrin : Financial Summary for First 3 Quarters of Fiscal 2022

Financial Summary for First 3 Quarters of Fiscal 2022 [Japanese GAAP] [Consolidated]

Name of listed company	ZENRIN CO., LTD.
Securities code	9474	URL https://www.zenrin.co.jp/
Representative	[Title]	President and CEO
Contact	[Title]	Executive Officer and Head of
Corporate Management Division

Scheduled date of submission of quarterly securities report: Scheduled date of commencement of dividend payments:

January 31, 2022 Stock exchange listings: Tokyo and Fukuoka

[Name] Zenshi Takayama
[Name] Yumiko Toshima	TEL [phone]
February 1, 2022
－

Preparation of supplementary explanatory materials on quarterly results:	Yes
Holding of briefing session on quarterly results:	No

(Amounts are rounded down to the nearest million yen)

1. Consolidated Results of Operations in First 3 Quarters of Fiscal 2022

ZENRIN's first 3 quarters of fiscal 2022 is the period from April 1, 2021 to December 31, 2021.

(1) Consolidated Business Performance [cumulative]

[%figures represent the increase (decrease) compared to the same period of the previous fiscal year)]

	Net sales		Operating profit		Ordinary profit		Profit attributable to
				owners of parent
	million yen		%	million yen		%	million yen		%	million yen	%
First 3 quarters of fiscal 2022	39,990		－	61		－	321		－	2,067	－
First 3 quarters of fiscal 2021	38,429		(4.7)	(1,719)		－	(1,482)		－	(758)	－

[Note] Comprehensive income	First 3 quarters of fiscal 2022: 8,133 million yen [	－%]
First 3 quarters of fiscal 2021: (740) million yen [	－%]
	Earnings per share	Diluted earnings per
	share
	yen	yen
First 3 quarters of fiscal 2022	37.79	35.55
First 3 quarters of fiscal 2021	(13.65)	－

[Note] As the "Accounting Standard for Revenue Recognition" (ASBJ Statement No. 29, March 31, 2020), etc. have been applied from the beginning of the first quarter of fiscal 2022, the amounts for the first 3 quarters of fiscal 2022 reflect the application of the said accounting standard, etc., and the increase (decrease) compared to the same period of the previous fiscal year is not stated.

(2) Consolidated Financial Position

		Total assets		Net assets	Ratio of equity to total assets
		million yen		million yen	%
First 3 quarters of fiscal 2022	75,329		47,956	63.4
Fiscal 2021		71,320		44,723	60.5
[Reference] Equity	First 3 quarters of fiscal 2022: 47,728 million yen	Fiscal 2021: 43,149 million yen

[Note] As the "Accounting Standard for Revenue Recognition" (ASBJ Statement No. 29, March 31, 2020), etc. have been applied from the beginning of the first quarter of fiscal 2022, the amounts for the first 3 quarters of fiscal 2022 reflect the application of the said accounting standard, etc.

2. Dividends

			Annual dividend
	End of	End of	End of	Year-end	Total
	first quarter	second quarter	third quarter
	yen	yen	yen	yen	yen
Fiscal 2021	－	12.50	－	12.50	25.00
Fiscal 2022	－	12.50	－
Fiscal 2022 [forecast]				12.50	25.00

[Note] Revision from most recently announced forecast for dividends: None

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3. Forecast for Consolidated Results of Operations in Fiscal 2022

ZENRIN's fiscal 2022 is the period from April 1, 2021 to March 31, 2022.

[% figures for the fiscal year represent the increase (decrease) compared to the previous fiscal year]

	Net sales		Operating profit		Ordinary profit	Profit attributable to	Earnings
			owners of parent	per share
	million yen		%	million yen	%		million yen	%	million yen	%	yen
Fiscal year	58,200		-	2,300		-	2,500	-	3,400	-	62.14

[Note] Revision from most recently announced forecast for results of operations: None

As the "Accounting Standard for Revenue Recognition" (ASBJ Statement No. 29, March 31, 2020), etc. have been applied from the beginning of the first quarter of fiscal 2022, the figures of the above forecast for consolidated results of operations reflect the application of the said accounting standard, etc., and the increase (decrease) compared to the previous fiscal year are not stated.

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1. Qualitative Information on Quarterly Results

(1) Explanation of Business Performance

In the first 3 quarters of fiscal 2022 (from April 1, 2021 to December 31, 2021), although there were signs of a recovery in the Japanese economy as the challenging situation caused by COVID- 19 moderately eased, the outlook remains uncertain due to the emergence of new variant strains.

In this environment, sales of data for car navigation systems in the automotive-related business were up year on year, while contracted services for corporations using residential map data and stock-type services "GIS packages" also performed well. Additionally, sales related to marketing solutions business increased against the backdrop of a rebound in the demand for advertising and other factors. The result of this was a significant increase in profit.

With the application of the "Accounting Standard for Revenue Recognition" (ASBJ Statement No. 29, March 31, 2020), etc., the cost of sales decreased, primarily as a result of the change to the method of recognizing revenue as a net amount as an agent.

As a result, the ZENRIN Group in the first 3 quarters of fiscal 2022 reported net sales of 39,990 million yen (38,429 million yen in the same period of the previous fiscal year). operating profit of 61 million yen (1,719 million yen loss in the same period of the previous fiscal year), and ordinary profit of 321 million yen (1,482 million yen loss in the same period of the previous fiscal year). In addition, profit attributable to owners of parent was 2,067 million yen (758 million yen loss in the same period of the previous year), reflecting the recording of extraordinary income from the sale of shares in C.E. INFO SYSTEMS LIMITED.

Please note that past net sales of the ZENRIN Group have shown trends of large seasonal fluctuations and sales concentrating in the fourth quarter.

It should be noted that the "Accounting Standard for Revenue Recognition" (ASBJ Statement No. 29, March 31, 2020), etc. have been applied from the beginning of the first quarter of fiscal 2022. Thus, the Explanation of Business Performance for the first 3 quarters does not include the increase (decrease) amounts and rates (%) compared to the same period of the previous fiscal year. Details are as described in "2. (3) Notes to Quarterly Consolidated Financial Statements (Changes in Accounting Policies)."

Furthermore, from the first quarter of fiscal 2022, information by business segment is omitted because the ZENRIN Group's reportable segments have been aggregated to a single segment.

(2) Explanation of Financial Position

Total assets at the end of the first 3 quarters of fiscal 2022 amounted to 75,329 million yen (increased 4,008 million yen, or up 5.6%, compared to the end of the previous fiscal year), despite the decrease in notes and accounts receivable - trade, and contract assets due to the effects of seasonal fluctuations. This was mainly attributable to an increase in investment securities resulting from the fair market value of shares of C.E. INFO SYSTEMS LIMITED following its listing on the Bombay Stock Exchange and the National Stock Exchange of India.

Liabilities amounted to 27,372 million yen (increased 776 million yen, or up 2.9%, compared to the end of the previous fiscal year). This was mainly attributable to an increase in other current liabilities due to adjustments at the beginning of fiscal 2022 with the application of the Accounting Standard for Revenue Recognition, etc., despite a decrease in accounts payable - trade due to payment, etc.

Net assets amounted to 47,956 million yen (increased 3,232 million yen, or up 7.2%, compared to the end of the previous fiscal year), despite a decrease in retained earnings resulting from the adjustments at the beginning of fiscal 2022 with the application of the Accounting Standard for Revenue Recognition, etc. This was mainly due to an increase in valuation difference on available- for-sale securities resulting from the fair market value of shares of C.E. INFO SYSTEMS LIMITED following its listing on the Bombay Stock Exchange and the National Stock Exchange of India.

As a result, the ratio of equity to total assets at the end of the first 3 quarters of fiscal 2022 was 63.4% (up 2.9 points compared to the end of the previous fiscal year).

1. Explanation of Forecast for Consolidated Results of Operations and Other Forward-Looking Statements
   The forecast for the results of operations for fiscal 2022 remain unchanged from the forecast announced on December 17, 2021.

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2. Quarterly Consolidated Financial Statements

1. Quarterly Consolidated Balance Sheet

			[Unit: million yen]
		Fiscal 2021	First 3 quarters of
		fiscal 2022
		As of March 31, 2021	As of December 31, 2021
Assets
Current assets
Cash and deposits	16,853	15,506
Notes and accounts receivable - trade	12,675	－
Notes and accounts receivable - trade, and	－	9,091
contract assets
Electronically recorded monetary claims -	90	135
operating
Securities	5	5
Merchandise and finished goods	992	877
Work in process	426	992
Raw materials and supplies	78	91
Other	1,564	1,777
Allowance for doubtful accounts	(5)	(4)
Total current assets	32,682	28,473
Non-current assets
Property, plant and equipment	13,042	13,237
Intangible assets
Goodwill	395	308
Software	10,332	9,965
Other	3,203	3,381
Total intangible assets	13,931	13,655
Investments and other assets
Investment securities	4,144	12,860
Other	7,642	7,224
Allowance for doubtful accounts	(123)	(122)
Total investments and other assets	11,663	19,962
Total non-current assets	38,637	46,855
Total assets		71,320	75,329

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		[Unit: million yen]
	Fiscal 2021	First 3 quarters of
	fiscal 2022
	As of March 31, 2021	As of December 31, 2021
Liabilities
Current liabilities
Accounts payable - trade	3,401	1,983
Short-term borrowings	1,885	1,316
Income taxes payable	447	151
Provision for directors' bonuses	41	23
Provision for sales returns	6	－
Other	10,906	13,371
Total current liabilities	16,688	16,846
Non-current liabilities
Bonds payable	8,095	8,059
Long-term loans payable	572	20
Provision for directors' retirement benefits	128	128
Provision for management board benefit trust	52	50
Net defined benefit liability	306	312
Asset retirement obligations	73	78
Other	678	1,876
Total non-current liabilities	9,907	10,526
Total liabilities	26,596	27,372
Net assets
Shareholders' equity
Capital stock	6,557	6,557
Capital surplus	12,925	12,472
Retained earnings	25,299	24,493
Treasury shares	(3,311)	(3,563)
Total shareholders' equity	41,471	39,960
Accumulated other comprehensive income
Valuation difference on available-for-sale	661	6,658
securities
Foreign currency translation adjustment	46	165
Remeasurements of defined benefit plans	969	943
Total accumulated other comprehensive	1,677	7,767
income
Non-controlling interests	1,574	227
Total net assets	44,723	47,956
Total liabilities and net assets	71,320	75,329

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