Assets | ||
---|---|---|
End of FY2021 (March 31, 2022) |
End of FY2022 (March 31, 2023) |
|
Current assets | ||
Cash and deposits | 117,687 | 121,438 |
Notes receivable - trade | 11,572 | 10,318 |
Accounts receivable - trade | 116,601 | 133,654 |
Contract assets | 58,155 | 65,297 |
Merchandise and finished goods | 16,662 | 18,467 |
Work in process | 4,584 | 4,932 |
Raw materials and supplies | 21,758 | 25,006 |
Other | 22,479 | 24,251 |
Allowance for doubtful accounts | (5,304) | (6,106) |
Total current assets | 364,195 | 397,261 |
Non-current assets | ||
Property, plant and equipment | ||
Buildings and structures, net | 46,089 | 46,183 |
Machinery, equipment and vehicles, net | 8,159 | 9,354 |
Tools, furniture and fixtures, net | 6,144 | 6,550 |
Land | 15,448 | 15,570 |
Leased assets, net | 57 | 22 |
Right-of-use assets | 8,083 | 8,097 |
Construction in progress | 2,961 | 1,780 |
Total property, plant and equipment | 86,943 | 87,559 |
Intangible assets | ||
Software | 13,997 | 14,137 |
Goodwill | 11,993 | 14,614 |
Other | 12,472 | 19,782 |
Total intangible assets | 38,463 | 48,534 |
Investments and other assets | ||
Investment securities | 53,241 | 70,786 |
Deferred tax assets | 7,154 | 8,921 |
Other | 7,124 | 6,433 |
Allowance for doubtful accounts | (1,154) | (859) |
Total investments and other assets | 66,366 | 85,281 |
Total non-current assets | 191,773 | 221,375 |
Total assets | 555,968 | 618,637 |
Liabilities | ||
---|---|---|
End of FY2021 (March 31, 2022) |
End of FY2022 (March 31, 2023) |
|
Current liabilities | ||
Notes and accounts payable - trade | 26,590 | 31,226 |
Electronically recorded obligations - operating | 10,119 | 10,098 |
Short-term borrowings | 1,576 | 20,475 |
Commercial papers | 20,000 | 25,000 |
Accounts payable - other | 19,046 | 18,741 |
Income taxes payable | 5,926 | 6,472 |
Contract liabilities | 41,124 | 45,837 |
Lease liabilities | 2,758 | 2,219 |
Provision for bonuses | 17,127 | 20,776 |
Provision for loss on construction contracts | 6,499 | 7,380 |
Other | 26,424 | 24,869 |
Total current liabilities | 177,192 | 213,097 |
Non-current liabilities | ||
Long-term borrowings | 24,095 | 4,087 |
Deferred tax liabilities | 2,240 | 2,519 |
Retirement benefit liability | 4,687 | 5,081 |
Lease liabilities | 5,619 | 5,292 |
Other | 1,792 | 1,732 |
Total non-current liabilities | 38,435 | 18,713 |
Total liabilities | 215,628 | 231,811 |
Net assets | ||
---|---|---|
End of FY2021 (March 31, 2022) |
End of FY2022 (March 31, 2023) |
|
Shareholders' equity | ||
Share capital | 43,401 | 43,401 |
Capital surplus | 54,392 | 54,392 |
Retained earnings | 221,431 | 251,277 |
Treasury shares | (1,407) | (1,410) |
Total shareholders' equity | 317,817 | 347,660 |
Accumulated other comprehensive income | ||
Valuation difference on available-for-sale securities | 11,592 | 19,106 |
Deferred gains or losses on hedges | - | (98) |
Foreign currency translation adjustment | 5,137 | 13,812 |
Remeasurements of defined benefit plans | (976) | (854) |
Total accumulated other comprehensive income | 15,753 | 31,965 |
Non-controlling interests | 6,769 | 7,200 |
Total net assets | 340,340 | 386,825 |
Total liabilities and net assets | 555,968 | 618,637 |
FY2021 (April 1, 2021-March 31, 2022) |
FY2022 (April 1, 2022-March 31, 2023) |
|
---|---|---|
Net sales | 389,901 | 456,479 |
Cost of sales | 217,091 | 252,019 |
Gross profit | 172,810 | 204,459 |
Selling, general and administrative expenses | 142,142 | 160,050 |
Operating profit | 30,668 | 44,409 |
Non-operating income | ||
Interest income | 605 | 1,058 |
Dividend income | 1,785 | 1,970 |
Foreign exchange gains | 1,346 | - |
Share of profit of entities accounted for using equity method | 3,128 | 3,374 |
Miscellaneous income | 679 | 1,617 |
Total non-operating income | 7,546 | 8,021 |
Non-operating expenses | ||
Interest expenses | 684 | 1,091 |
Foreign exchange losses | - | 1,009 |
Provision of allowance for doubtful accounts | 294 | 21 |
Commission expenses | 244 | 332 |
Miscellaneous losses | 1,252 | 1,365 |
Total non-operating expenses | 2,475 | 3,821 |
Ordinary profit | 35,739 | 48,608 |
Extraordinary income | ||
Gain on sale of non-current assets | 33 | 526 |
Gain on sale of investment securities | 58 | 834 |
Gain on step acquisitions | - | *1 1,066 |
Total extraordinary income | 92 | 2,428 |
Extraordinary losses | ||
Loss on sale of non-current assets | 1 | 5 |
Loss on retirement of non-current assets | 372 | 432 |
Impairment losses | *2 1,410 | *2 558 |
Loss on valuation of investment securities | 1,758 | - |
Loss on sale of shares of subsidiaries and associates | 139 | - |
Business restructuring expenses | *3 2,058 | 240 |
Total extraordinary losses | 5,740 | 1,237 |
Profit before income taxes | 30,092 | 49,799 |
Income taxes - current | 8,165 | 11,662 |
Income taxes - deferred | (1,732) | (3,799) |
Total income taxes | 6,432 | 7,863 |
Profit | 23,659 | 41,936 |
Profit attributable to non-controlling interests | 2,392 | 3,015 |
Profit attributable to owners of parent | 21,267 | 38,920 |
*1 Gain on Step Acquisitions
FY2022 (April 1, 2022-March 31, 2023)
This was recognized as a result of the step acquisition of shares of Yokogawa Fluence Analytics, Inc. (former Fluence Analytics Inc.).
*2 Impairment Losses
I. (Reference) FY2021 (April 1, 2021-March 31, 2022)
Impairment losses were recorded for the following asset groups.
Millions of yen
Location | Use | Category | Impairment losses |
---|---|---|---|
Denmark | Business assets | Goodwill | 1,084 |
Japan | Business assets | Buildings and structures | 7 |
Machinery, equipment and vehicles | 8 | ||
Tools, furniture and fixtures | 50 | ||
Software | 68 | ||
United States | Idle assets | Leased assets | 191 |
Total | 1,410 |
The Group's business assets are grouped based on management accounting classification. Furthermore, idle assets have been grouped by individual property.
The book values mainly with respect to the goodwill arising at the time of acquisition of shares of the Denmark based consolidated subsidiary, Grazper Technologies ApS were reduced to their respective recoverable amounts and the amount of said reductions have been recorded as impairment losses on account of the business results of these companies falling below the initially forecasted business plans due to the impact of changes in the business environments surrounding the company. The recoverable amounts for the said asset group are measured by value in use and are calculated by discounting future cash flows at a rate of 10%.
As no future use is expected for idle assets, the book values for each asset group have been reduced to their respective recoverable amounts (true cash value), and the reductions have been recorded as impairment losses.
II. FY2022 (April 1, 2022-March 31, 2023)
Impairment losses were recorded for the following asset groups.
Millions of yen
Location | Use | Category | Impairment losses |
---|---|---|---|
United Kingdom | Business assets | Goodwill | 261 |
Norway | Business assets | Other intangible assets | 296 |
Total | 558 |
The Group's business assets are grouped based on management accounting classification.
The book value with respect to the goodwill arising at the time of acquisition of shares of the UK-based consolidated subsidiary, Yokogawa RAP Limited, was reduced to its recoverable amount and the amount of said reduction has been recorded as impairment loss because the non-consolidated business performance of the company is expected to fall below the initially forecasted business plans in line with changes made to the company's positioning with respect to business expansion.
The recoverable amount for the said asset group is measured by value in use and is calculated by discounting future cash flows at a rate of 10%.
The book value with respect to the other intangible assets arising at the time of acquisition of shares of the Norway based consolidated subsidiary, Yokogawa TechInvent AS, was reduced to its recoverable amount and the amount of said reduction has been recorded as impairment loss on account of the business results of the company falling below the initially forecasted business plans due to the impact of changes in the business environments surrounding the company.
The recoverable amounts for the said asset group are measured by value in use and are calculated by discounting future cash flows at a rate of 10%.
*3 Business Restructuring Expenses
(Reference) FY2021 (April 1, 2021-March 31, 2022)
Business restructuring expenses pertaining to extraordinary measures with the aim of optimizing the Group overall were recorded and the expenses were mainly related to the transfer of the aviation equipment business.
FY2021 (April 1, 2021-March 31, 2022) |
FY2022 (April 1, 2022-March 31, 2023) |
|
---|---|---|
Cash flows from operating activities | ||
Profit before income taxes | 30,092 | 49,799 |
Depreciation | 16,935 | 18,037 |
Amortization of goodwill | 1,020 | 1,659 |
Increase (decrease) in allowance for doubtful accounts | 185 | 128 |
Increase (decrease) in provision for bonuses | 123 | 3,091 |
Increase (decrease) in retirement benefit liability | (64) | 49 |
Interest and dividend income | (2,391) | (3,029) |
Interest expenses | 684 | 1,091 |
Share of loss (profit) of entities accounted for using equity method | (3,128) | (3,374) |
Loss (gain) on sale of investment securities | (58) | (834) |
Loss (gain) on valuation of investment securities | 1,758 | - |
Loss (gain) on sale of non-current assets | (32) | (520) |
Loss on retirement of non-current assets | 372 | 432 |
Loss (gain) on step acquisitions | - | (1,066) |
Increase (decrease) in allowance for soft error | (259) | (272) |
Impairment losses | 1,410 | 558 |
Decrease (increase) in trade receivables | 13,684 | (13,692) |
Decrease (increase) in inventories | (4,906) | (5,415) |
Increase (decrease) in trade payables | 858 | 3,421 |
Increase (decrease) in accounts payable - other | 714 | 587 |
Increase (decrease) in accrued expenses | (173) | (874) |
Other, net | 1,822 | (253) |
Subtotal | 58,648 | 49,521 |
Interest and dividends received | 2,214 | 2,983 |
Interest paid | (690) | (1,002) |
Income taxes refund (paid) | (8,528) | (11,080) |
Net cash provided by (used in) operating activities | 51,644 | 40,422 |
Cash flows from investing activities | ||
Payments into time deposits | (892) | (3,284) |
Proceeds from withdrawal of time deposits | 705 | 278 |
Purchase of property, plant and equipment | (8,281) | (8,637) |
Proceeds from sale of property, plant and equipment | 140 | 554 |
Purchase of intangible assets | (9,838) | (12,205) |
Purchase of investment securities | (1,310) | (2,540) |
Proceeds from sale and redemption of investment securities | 807 | 1,087 |
Proceeds from sale of businesses | - | 428 |
Purchase of shares of subsidiaries and associates | (438) | (2,021) |
Purchase of shares of subsidiaries resulting in change in scope of consolidation | (9,330) | (6,744) |
Other, net | 111 | 145 |
Net cash provided by (used in) investing activities | (28,327) | (32,939) |
FY2021 (April 1, 2021-March 31, 2022) |
FY2022 (April 1, 2022-March 31, 2023) |
|
Cash flows from financing activities | ||
Net increase (decrease) in short-term borrowings | (1,388) | (1,144) |
Net increase (decrease) in commercial papers | - | 5,000 |
Proceeds from long-term borrowings | 4,000 | - |
Repayments of long-term borrowings | (4,080) | - |
Repayments of lease liabilities | (3,116) | (3,432) |
Dividends paid | (9,072) | (9,078) |
Dividends paid to non-controlling interests | (2,261) | (2,274) |
Purchase of shares of subsidiaries not resulting in change in scope of consolidation | (242) | - |
Other, net | (3) | (2) |
Net cash provided by (used in) financing activities | (16,165) | (10,932) |
Effect of exchange rate change on cash and cash equivalents | 7,186 | 4,286 |
Net increase (decrease) in cash and cash equivalents | 14,337 | 836 |
Cash and cash equivalents at beginning of period | 101,204 | 115,541 |
Cash and cash equivalents at end of period | 115,541 | 116,378 |