Zenrin : Financial Summary for Fiscal 2024

Financial Summary for Fiscal 2024 [Japanese GAAP] [Consolidated]

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

Scheduled date of holding of ordinary general meeting of shareholders: Scheduled date of submission of annual securities report:

Scheduled date of commencement of dividend payouts:

Preparation of supplementary explanatory materials on financial results: Holding of briefing session on financial results:

April 26, 2024

Stock exchange listings: Tokyo and Fukuoka

Zenshi Takayama
Yumiko Toshima	TEL: [phone]

June 21, 2024

June 24, 2024

June 24, 2024

Yes

Yes (For institutional investors and analysts)

[Amounts are rounded down to the nearest million yen]

1. Consolidated Results of Operations in Fiscal 2024

ZENRIN's fiscal 2024 is the period from April 1, 2023 to March 31, 2024.

(1) Consolidated Business Performance

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

		Net sales				Operating income			Ordinary income		Profit attributable to
									owners of parent
		million yen	%		million yen	%		million yen	%		million yen	%
Fiscal 2024		61,335	4.1		1,981	10.1			2,060	(2.1)		2,078	(25.0)
Fiscal 2023		58,933	(0.2)		1,799	(32.6)			2,104	(30.9)		2,770	(24.3)
[Note] Comprehensive income	Fiscal 2024: 4,811 million yen [－%]			Fiscal 2023: (483) million yen [ －%]
		Earnings		Diluted earnings	Return on			Ratio of		Ratio of
				ordinary income		operating income
		per share			per share	equity
					to total assets		to net sales
		yen				yen	%					%				%
Fiscal 2024		38.94				－		4.4			2.8				3.2
Fiscal 2023		51.43				－		5.9			2.8				3.1

[Reference] Share of profit (loss) of entities accounted for using equity method	Fiscal 2024:	－ million yen
	Fiscal 2023:	－ million yen

(2) Consolidated Financial Position

	Total assets	Net assets	Ratio of equity to	Net assets
	total assets	per share
	million yen	million yen	%	yen
Fiscal 2024	75,402	49,321	65.3	922.18
Fiscal 2023	70,130	45,962	65.4	859.43
[Reference] Equity	Fiscal 2024: 49,220 million yen	Fiscal 2023: 45,871 million yen
(3) Consolidated Cash Flows
	Net cash	Net cash	Net cash	Cash and
	provided by (used in)	provided by (used in)	provided by (used in)	cash equivalents
	operating activities	investing activities	financing activities	at end of period
	million yen	million yen	million yen	million yen
Fiscal 2024	6,318	(4,155)	(3,114)	13,213
Fiscal 2023	6,541	(2,451)	(6,744)	13,965

2. Dividends

		Annual dividend					Ratio of
	First	Second	Third				Total	Payout ratio	dividends to
	quarter-	quarter-	quarter-	Year-end	Total	dividends	[Consolidated]	net assets
	end	end	end						[Consolidated]
	yen	yen	yen		yen	yen	million yen	%	%
Fiscal 2023	－	13.50	－		13.50	27.00	1,454	52.5	3.1
Fiscal 2024	－	13.50	－		15.00	28.50	1,529	73.2	3.2
Fiscal 2025 [forecast]	－	15.00	－		15.00	30.00		－

3. Forecast for Consolidated Results of Operations in Fiscal 2025

ZENRIN's fiscal 2025 is the period from April 1, 2024 to March 31,2025

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

	Net sales		Operating income	Ordinary income	Profit attributable to	Earnings
		owners of parent	per share
	million yen	%	million yen	%	million yen	%	million yen	%	yen
Fiscal 2025	64,300	4.8	3,600	81.7	3,700	79.6	2,500	20.3	46.84

*Disclaimer: 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.

ZENRIN Co., Ltd. (9474)

Financial Summary for Fiscal 2024

ATTACHMENT

1. Analysis of Business Performance

1. Overview of Business Performance for Fiscal 2024

1. Business Performance for Fiscal 2024

In fiscal 2024 (from April 1, 2023, to March 31, 2024), the Japanese economy was on a moderate recovery trend as it saw improvements in the employment and income environment although it appears to be stagnant most recently. However, the future outlook continued to be uncertain due to various concerns, including rising prices, the situation in the Middle East, and fluctuations in the financial and capital markets.

In such an environment, sales of data for in-car navigation systems in the automotive-related business increased significantly thanks to the recovery in automobile production despite the effect of a reactionary fall in entrusted services in the IoT-related business, which were recognized in the previous fiscal year, and the discontinuation of certain services provided by subsidiaries. In addition, provision of residential map data to and entrusted services from the national and local governments remained firm.

In terms of costs, there was an increase in cost of sales commensurate with increase in net sales, as well as an increase in expenses for developing map databases to improve the precision of location data. Moreover, factors such as wage increase in the first quarter caused operating expenses to increase from the previous fiscal year.

As a result, the ZENRIN Group reported business performance in fiscal 2024 as follows: net sales of 61,355 million yen (increased 2,401 million yen, or up 4.1% compared to the previous fiscal year), operating income of 1,981 million yen (increased 182 million yen, or up 10.1% compared to the previous fiscal year), and ordinary income of 2,060 million yen (decreased 44 million yen, or down 2.1% compared to the previous fiscal year). Profit attributable to owners of parent was 2,078 million yen (decreased 692 million yen, or down 25.0% compared to the previous fiscal year).

Profit attributable to owners of parent decreased compared to the previous fiscal because the ZENRIN Group recognized extraordinary income for the same period of the previous fiscal, such as gain on sale of non-current assets and gain on sale of investments in capital of subsidiaries arising from the reorganization of subsidiaries.

Furthermore, information by business segment is omitted because the ZENRIN Group has a single reportable segment.

2. Forecast for Fiscal 2025

As for the outlook for fiscal 2025, while operating expenses will likely rise due to wage increase and other factors, the Group expects growth in subscription-based business and sales-increasing effect of price revision, as well as strong performance in automotive-related business.

The forecast of consolidated results for fiscal 2025 expects net sales of 64,300 million yen (an increase of 2,964 million yen, or up 4.8% compared to the current fiscal year), operating income of 3,600 million yen (an increase of 1,618 million yen, or up 81.7% compared to the current fiscal year), ordinary income of 3,700 million yen (an increase of 1,639 million yen, or up 79.6% compared to the current fiscal year), and profit attributable to owners of parent of 2,500 million yen (a increase of 421 million yen, or up 20.3% compared to the current fiscal year).

It should be noted that the year-on-year increase in profit attributable to owners of parent is expected to be smaller than that in ordinary income mainly due to the recognition of a gain on sales of investment securities in extraordinary income for fiscal 2024.

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ZENRIN Co., Ltd. (9474)

Financial Summary for Fiscal 2024

1. Overview of Financial Position for Fiscal 2024

1. Overview of Fiscal 2024

Total assets at the end of fiscal 2024 amounted to 75,402 million yen (increased 5,271 million yen, or up 7.5% compared to the end of the previous fiscal year). Contributing factors include an increase in investment securities due to increases in market valuation.

Liabilities amounted to 26,081 million yen (increased 1,913 million yen, or up 7.9% compared to the end of the previous fiscal year). This was mainly attributable to an increase in advances received and deferred tax liabilities, despite a decrease in short-term loans payable.

Net assets amounted to 49,321 million yen (increased 3,358 million yen, or up 7.3% compared to the end of the previous fiscal year). Contributing factors include the recognition of profit attributable to owners of parent and an increase in valuation difference on available-for-sale securities as a result of market valuation of investment securities.

As a result, the ratio of equity to total assets at the end of fiscal 2024 was 65.3% (down 0.1 points compared to at the end of the previous fiscal year).

The following outlines the status of cash flows in fiscal 2024.

Cash and cash equivalents at the end of fiscal 2024 stood at 13,213 million yen (decreased 752 million yen, or down 5.4%, compared to at the end of the previous fiscal year).

Cash Flows from Operating Activities

Net cash provided by operating activities amounted to 6,318 million yen (decreased 222 million yen compared to the same period of the previous fiscal year). This was attributable to profit before income taxes in the amount of 3,412 million yen, gain on sale of investment securities in the amount of 1,486 million yen, income taxes paid in the amount of 510 million yen, and other factors of decrease, being offset by depreciation and amortization in the amount of 5,362 million yen and an increase in advances received in the amount of 460 million yen, and other factors for increase.

Cash Flows from Investing Activities

Net cash used in investing activities amounted to 4,155 million yen (increased 1,704 million yen compared to the same period of the previous fiscal year). This was attributable to proceeds from sale of investment securities in the amount of 1,663 million yen and other factors of increase, being offset by purchase of property, plant and equipment, and intangible assets in the amount of 4,772 million yen, purchase of investment securities in the amount of 937 million yen, and other factors of decrease.

Cash Flows from Financing Activities

Net cash used in financing activities amounted to 3,114 million yen (decreased 3,629 million yen compared to the previous fiscal year). This was mainly attributable to cash dividends paid in the amount of 1,447 million yen, a net decrease in short-term loans payable in the amount of 1,016 million yen, repayments of long-term loans payable in the amount of 409 million yen, and other factors of decrease.

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ZENRIN Co., Ltd. (9474)

Financial Summary for Fiscal 2024

2. Changes in Cash Flow Indicators

		Fiscal	Fiscal	Fiscal	Fiscal	Fiscal
		2020	2021	2022	2023	2024
Ratio of equity to total assets [%]	57.1	60.5	61.3	65.4	65.3
Ratio of equity to total assets [%]	79.4	102.0	68.3	63.5	60.1
(market value basis)
Ratio of interest-bearing liabilities to	1.3	1.7	1.2	0.9	0.7
operating cash flows [years]
Interest coverage ratio [times]	513.0	382.6	939.4	589.0	327.0
[Notes]	Each indicator is calculated in accordance with the following formulas, using consolidated financial figures.

• Ratio of equity to total assets: Equity / Total assets
• Ratio of equity to total assets (market value basis): Market capitalization / Total assets

*Market capitalization is calculated by multiplying the number of shares issued and outstanding at the end of the fiscal year (excluding treasury shares) by the closing price per share at the end of the fiscal year.

1. • Ratio of interest-bearing liabilities to operating cash flows: Interest-bearing liabilities / Operating cash flows
     *Operating cash flows are the net cash provided by (used in) operating activities recorded on consolidated statement of cash flows. *Interest-bearing liabilities include all liabilities recorded on consolidated balance sheets on which interest is paid.
   • Interest coverage ratio: Operating cash flows / Interest paid
     *Interest paid is the interest expenses paid recorded on consolidated statement of cash flows.
2. Basic Policy on Distribution of Income, and Payment of Dividends in Fiscal 2024 and 2025

Positioning the returning of income to shareholders as a top priority, ZENRIN adopts a basic policy of realizing stable, uninterrupted payments of dividends derived from income growth based on the medium- to long-term business plan on a consolidated basis. Under this policy, ZENRIN will aim for a dividend on equity (DOE) [Note] on a consolidated basis of 3% or higher while maintaining dividends at the current level.

In addition, by continuing to consider purchasing treasury shares and other undertakings with the aim of ensuring an agile capital policy and enhancing capital efficiency, ZENRIN will return income to shareholders in accordance with the level of income on a consolidated basis while taking into account the maintaining of an adequate amount of internal reserves.

The internal reserves will be used for capital investment, research and development investment and other expenditures that are indispensable for business development in the future in order to keep pace with the rapid market changes.

Based on the policy above, ZENRIN plans to pay a year-end dividend of 15.00 yen per share, an increase of 1.50 yen, for the fiscal year ended March 31, 2024. As a result, including the interim dividend of 13.50 yen per share, which has already been implemented, the annual dividend is expected to be 28.50 yen per share.

Please note that this matter will be decided by resolution at ZENRIN's 64th ordinary general meeting of shareholders that is scheduled to be held on June 21, 2024

ZENRIN expects 30 yen as the annual dividend per share for the fiscal 2025 with 15.00 yen as both the interim dividend per share and year-end dividend per share.

[Note] Dividend on equity on a consolidated basis (DOE)

= Total amount of dividends / Shareholders' equity

Shareholders' equity is the amount arrived at when the amount of treasury shares is subtracted from the sum total of common stock, capital surplus and retained earnings.

2. Basic approach to the selection of accounting standards

As a basic policy, the ZENRIN Group will continue to prepare its consolidated financial statements under the Japanese standards, in consideration of the comparability of its consolidated financial statements between periods and corporations.

Meanwhile, we intend to address the future application of IFRS appropriately upon taking into careful consideration various circumstances both in Japan and abroad surrounding the ZENRIN Group.

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ZENRIN Co., Ltd. (9474)

Financial Summary for Fiscal 2024

3. Consolidated Financial Statements

(1) Consolidated Balance Sheet

				[Unit: million yen]
			Fiscal 2023	Fiscal 2024
			As of March 31, 2023	As of March 31, 2024
	Assets
	Current assets
	Cash and deposits		13,971	13,218
	Notes receivable - trade	39	55
	Electronically recorded monetary claims - operating		118	80
	Accounts receivable - trade	11,652	12,414
	Contract assets		55	183
	Securities	6	7
	Merchandise and finished goods		897	827
	Work in process	314	245
	Raw materials and supplies		97	106
	Other	1,404	2,266
	Allowance for doubtful accounts		(3)	(3)
	Total current assets		28,553	29,403
	Non-current assets
	Property, plant and equipment
	Buildings and structures, net		5,217	4,990
	Machinery, equipment and vehicles, net	58	50
	Land		5,313	5,313
	Leased assets, net	1,494	1,346
	Construction in progress		2	26
	Other, net	941	910
	Total property, plant and equipment		13,026	12,638
	Intangible assets
	Goodwill		252	124
	Software	10,928	11,110
	Leased assets		11	34
	Other	2,943	2,861
	Total intangible assets		14,135	14,130
	Investments and other assets
	Investment securities		8,592	12,925
	Long-term loans receivable	2	2
	Net defined benefit asset		2,387	3,073
	Deferred tax assets	1,139	981
	Other		2,395	2,345
	Allowance for doubtful accounts	(101)	(98)
	Total investments and other assets		14,414	19,230
	Total non-current assets		41,577	45,999
	Total assets		70,130	75,402

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ZENRIN Co., Ltd. (9474)

Financial Summary for Fiscal 2024

[Unit: million yen]

			Fiscal 2023	Fiscal 2024
			As of March 31,2023	As of March 31,2024
	Liabilities
	Current liabilities
	Accounts payable - trade		3,030	2,958
	Short-term loans payable	4,476	3,460
	Lease obligations		234	213
	Accrued expenses	4,359	4,708
	Income taxes payable		369	723
	Advances received	6,881	7,409
	Provision for directors' bonuses		64	84
	Asset retirement obligations	2	44
	Other		2,058	2,793
	Total current liabilities		21,476	22,395
	Non-current liabilities
	Long-term loans payable	1,576	1,166
	Lease obligations		396	377
	Deferred tax liabilities	155	1,583
	Provision for retirement benefits for directors (and other officers)		104	104
	Provision for share awards for directors (and other officers)	51	53
	Net defined benefit liability		257	246
	Asset retirement obligations	64	62
	Other		84	90
	Total non-current liabilities		2,691	3,685
	Total liabilities		24,167	26,081
	Net assets
	Shareholders' equity
	Capital stock	6,557	6,557
	Capital surplus		12,451	12,447
	Retained earnings	27,389	28,018
	Treasury shares		(4,805)	(4,806)
	Total shareholders' equity		41,592	42,217
	Accumulated other comprehensive income
	Valuation difference on available-for-sale securities	3,567	6,099
	Foreign currency translation adjustment		129	195
	Remeasurements of defined benefit plans	582	708
	Total accumulated other comprehensive income		4,278	7,003
	Share acquisition rights		－	0
	Non-controlling interests		90	99
	Total net assets		45,962	49,321
	Total liabilities and net assets		70,130	75,402

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ZENRIN Co., Ltd. (9474)

Financial Summary for Fiscal 2024

(2) Consolidated Statement of Income and Consolidated Statement of Comprehensive Income

Consolidated Statement of Income

			[Unit: million yen]
		Fiscal 2023	Fiscal 2024
	From: April 1, 2022	From: April 1, 2023
	To:	March 31, 2023	To: March 31, 2024
Net sales		58,933	61,335
Cost of sales	35,246	36,577
Gross profit		23,687	24,757
Selling, general and administrative expenses
Personnel expenses		12,517	12,924
Provision for directors' bonuses	65	86
Provision for share awards for directors (and other officers)		11	2
Retirement benefit expenses	272	313
Provision of allowance for doubtful accounts		2	2
Other	9,018	9,446
Total selling, general and administrative expenses		21,888	22,775
Operating profit		1,799	1,981
Non-operating income
Interest income	6	3
Dividend income		85	97
Rental income from real estate	61	33
Dividend income of insurance		20	36
Compensation income	－	35
Foreign exchange gains		52	－
Interest on securities	47	－
Other		171	124
Total non-operating income	445	330
Non-operating expenses
Interest expenses	11	19
Foreign exchange losses		－	166
Taxes and dues	－	29
Non-deductible consumption taxes		93	－
Other	35	36
Total non-operating expenses		139	251
Ordinary profit		2,104	2,060
Extraordinary income
Gain on sale of non-current assets	893	－
Gain on sale of investment securities		1,294	1,519
Gain on sale of investments in capital of subsidiaries	436	－
Other		299	0
Total extraordinary income		2,924	1,520
Extraordinary losses
Loss on sales and retirement of non-current assets	38	12
Impairment loss		107	－
Loss on sale of investment securities	－	32
Loss on valuation of investment securities		561	123
Loss on liquidation of subsidiaries	212	－
Total extraordinary losses		919	168
Profit before income taxes	4,109	3,412
Income taxes - current		1,141	952
Income taxes - deferred	293	372
Total income taxes		1,435	1,324
Profit		2,673	2,087
Profit (loss) attributable to non-controlling interests		(97)	9
Profit attributable to owners of parent		2,770	2,078

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ZENRIN Co., Ltd. (9474)

Financial Summary for Fiscal 2024

Consolidated Statement of Comprehensive Income

			[Unit: million yen]
		Fiscal 2023	Fiscal 2024
	From: April 1,2022	From: April 1,2023
	To:	March 31,2023	To: March 31,2024
Profit		2,673	2,087
Other comprehensive income
Valuation difference on available-for-sale securities		(2,739)	2,531
Foreign currency translation adjustment	(26)	66
Remeasurements of defined benefit plans, net of tax		(391)	125
Total other comprehensive income		(3,157)	2,724
Comprehensive income		(483)	4,811
[Comprehensive income attributable to]
Comprehensive income attributable to owners of parent		(386)	4,802
Comprehensive income attributable to non-controlling interests	(97)	9

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ZENRIN Co., Ltd. (9474)

Financial Summary for Fiscal 2024

(3) Consolidated Statement of Changes in Equity

Fiscal 2023 (from April 1, 2022 to March 31, 2023)

																			[Unit: million yen]
						Shareholders' equity
		Capital stock		Capital surplus	Retained earnings			Treasury shares			Total
						shareholders' equity
Balance at beginning of fiscal 2023	6,557			12,484		26,084			(4,062)			41,064
Changes of items during period
Dividends of surplus							(1,465)												(1,465)
Profit attributable to owners of parent							2,770												2,770
Purchase of treasury shares																(761)			(761)
Disposal of treasury shares							(0)									18			18
Change in ownership interest of parent due					(32)														(32)
to transactions with non-controlling interests
Deferred tax adjustment due to change inequity																			－
Net changes in items other than
shareholders' equity
Total changes of items during period		－			(32)		1,304									(743)			528
Balance at end of fiscal 2023	6,557			12,451		27,389			(4,805)			41,592
		Accumulated other comprehensive income
		Valuation		Foreign			Total		Stoc	k			Non-	Total
			Remeasureme	accumulated		acquisition		controlling
		difference on	currency			net assets
		nts of defined	other			r	ights	interests
		available-for-	translation
		benefit plans	comprehensiv
		sale securities	adjustment
				e income
Balance at beginning of fiscal 2023		6,306		155	973	7,435						－		246	48,746
Changes of items during period
Dividends of surplus																				(1,465)
Profit attributable to owners of parent																				2,770
Purchase of treasury shares																				(761)
Disposal of treasury shares																				18
Change in ownership interest of parent due																				(32)
to transactions with non-controlling interests
Deferred tax adjustment due to change inequity																				－
Net changes in items other than		(2,739)		(26)	(391)	(3,157)						－		(155)	(3,312)
shareholders' equity
Total changes of items during period		(2,739)		(26)	(391)	(3,157)						－		(155)	(2,783)
Balance at end of fiscal 2023		3,567		129	582	4,278						－		90	45,962

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