Supplementary Material
Fourth Quarter Results for FY2024
Disclaimer:
The forward-looking statements, including results forecasts, provided in this document (and its appendix) are based on information obtained by Kanematsu Corporation (the Company) and certain reasonable assumptions made by the Company. The Company does not guarantee their achievement, and actual results may differ from forecasts due to various factors. This information is subject to change without prior notice, and users are advised to utilize this document alongside information acquired through other sources and exercise their own discretion. The Company bears no liability or responsibility for any loss or damage resulting from the use of this material Additionally, as the figures presented are rounded off to the nearest 1 billion yen, the total may not precisely match the sum of each item.
© KANEMATSU CORPORATION. All Rights Reserved.
Earnings Summary
- In the final year of the "future 135" medium-term vision, both operating profit and net profit attributable to owners of the parent reached a record-high profit.
- The net profit for the fiscal year ending March 2025 is expected an increase of 1.8 billion yen,
reaching a total of 25.0 billion yen.
Earnings Results | Forecast | |||||||||
FY2024 | FY2025 | |||||||||
(Unit: JPY Bn) | FY2023 | FY2024 | YoY | Growth | (Unit: JPY Bn) | (actual) | (forecast) | YoY | ||
Revenue | 911.4 | 986.0 | +74.6 | +8% | Revenue | 986.0 | 1,100.0 | +114.0 | ||
Operating profit | 38.9 | 43.9 | +5.0 | +13% | ||||||
Net profit1) | 18.6 | 23.2 | +4.6 | +25% | Operating profit | 43.9 | 42.5 | (1.4) | ||
CF from operating activities | (0.3) | 35.6 | +35.9 | Profit before tax | 23.2 | 25.0 | +1.8 | |||
CF from investing activities | (16.7) | (12.4) | +4.3 | |||||||
End of | End of | Annual dividend per share | 90 Yen | 100 Yen | +10 Yen | |||||
Mar 2023 | Mar 2024 | YoY | ||||||||
Net D/E ratio2) | 1.15x | 1.00x | (0.15x) | Dividend payout ratio | 32.4% | 33.4% | ||||
Equity ratio3) | 19.0% | 22.0% | +3.0% | |||||||
ROE | 12.9% | 16.1% | +3.2% | |||||||
ROIC | 5.6% | 6.4% | +0.8% | |||||||
1) Net profit = Profit attributable to owners of the parent | 3) Equity ratio = Shareholders' equity ÷ total assets | |||||||||
2) Net D/E Ratio = Net interest-bearing debt ÷ total equity attributable to owners of the parent | 4) Assumptions for the forecast: Exchange rate assumed at USD 1= JPY 135, with no anticipated changes in interest rates in |
Japan and expected decreases in interest rates overseas. | 1 | |
© KANEMATSU CORPORATION. All Rights Reserved. | ||
Profit and Loss
Earnings Results
(Unit: JPY Bn) | FY2023 | FY2024 | YoY | Growth |
Revenue | 911.4 | 986.0 | 74.6 | +8% |
Gross profit | 130.9 | 142.6 | 11.7 | +9% |
Selling, general and | (96.3) | (106.2) | (9.9) | - |
administrative expenses | ||||
Other income (expenses) | 4.3 | 7.5 | 3.2 | - |
- Revenue
Revenue increased by 74.6 billion yen primarily driven by growth in the Electronics & Devices and Steel, Materials & Plant segments.
Progress
FY2024 | FY2025 | ||
(Unit: JPY Bn) | (actual) | (forecast) | YoY |
Revenue | 986.0 | 1,100.0 | +114.0 |
Operating profit | 43.9 | 42.5 | (1.4) |
Operating profit
Interest income (expenses)
Dividend income Other finance income (costs)
Finance income (costs)
Share of profit (loss) of investments accounted for using the equity method, and impairment loss on equity method investments
Profit before tax
38.9 43.9 5.0 +13%
(3.4) | (5.0) | (1.6) | - |
1.1 | 1.3 | 0.3 | - |
(0.3) | (0.4) | (0.1) | - |
(2.7) | (4.1) | (1.4) | - |
(0.5) | (2.6) | (2.0) | - |
35.7 | 37.2 | 1.5 | +4% |
- Operating profit
Operating profit increased by 5.0 billion yen as a result of the revenue growth.
- Profit before tax
Despite increases in interest payments and impairment losses related to equity method investments, there was an increase of 1.5 billion yen due to the rise in profit from operating activities.
- Profit attributable to owners of
Profit before tax | 37.2 | 38.0 | +0.8 |
Profit attributable to | 23.2 | 25.0 | +1.8 |
owners of the parent |
Profit attributable to owners of the parent | |
23.2 | 25.0 |
18.6 |
Income tax expense | (11.0) | (12.7) | (1.7) | - |
Profit for the year | 24.7 | 24.6 | (0.1) | (1%) |
Profit attributable to | 18.6 | 23.2 | 4.6 | +25% |
owners of the parent |
the parent
Achieved a record-high profit of 23.2 billion yen. See page 4 for more details.
FY2023 | FY2024 | FY2025 (forecast) |
1) Assumptions for the forecast: Exchange rate assumed at USD 1= JPY 135, with no anticipated changes in interest rates in Japan and expected decreases in interest rates overseas.
© KANEMATSU CORPORATION. All Rights Reserved. | 2 |
Segment Information
(Unit: JPY Bn) | FY2023 | FY2024 | |
Electronics & Devices | |||
Revenue | 282.5 | 328.6 | |
Operating profit | 20.3 | 22.8 | |
Net profit1) | 8.8 | 14.8 | |
Foods, Meat & Grain | |||
Revenue | 340.4 | 341.7 | |
Operating profit | 4.1 | 8.0 | |
Net profit | 2.2 | 3.5 | |
Steel, Materials & Plant | |||
Revenue | 193.4 | 213.7 | |
Operating profit | 12.3 | 9.4 | |
Net profit | 6.7 | 2.6 | |
Motor Vehicles & Aerospace | |||
Revenue | 81.3 | 90.5 | |
Operating profit | 1.5 | 3.1 | |
Net profit | 0.8 | 1.7 | |
Other (Including adjustment) | |||
Revenue | 13.7 | 11.6 | |
Operating profit | 0.7 | 0.6 | |
Net profit | 0.1 | 0.5 | |
Total | |||
Revenue | 911.4 | 986.0 | |
Operating profit | 38.9 | 43.9 | |
Net profit | 18.6 | 23.2 |
1) Net profit = Profit attributable to owners of the parent
YoY Growth
+46.1 +16%
+2.5 +12%
+6.1 +69%
+1.2 +0%
+3.9 +96%
+1.3 +59%
+20.3 +11%
(2.9) (24%)
(4.1) (61%)
+9.1 +11%
+1.6 +108%
+0.9 +114%
(2.1) (16%)
(0.1) (16%)
+0.4 +398%
+74.6 +8%
+5.0 +13%
+4.6 +25%
Revenue
Operating profit
© KANEMATSU CORPORATION. All Rights Reserved. | 3 |
Net Profit Breakdown
Profit attributable to owners of the parent
■ Electronics & Devices ■ Foods, Meat & Grain ■ Steel, Materials & Plant ■ Motor Vehicles & Aerospace ■ Other (Including adjustment)
(Unit: JPY Bn)
Electronics & Devices | increased 6.1 billion yen |
- ICT Solution: The increase was primarily driven by the acquisition of all shares of Kanematsu Electronics, as well as solid performance in network and security-related businesses, reflecting the growing demand for security measures and DX.
- Mobile: The Increase was driven by the effects of store restructuring and increase in sales volume.
Foods, Meat & Grain | increased 1.3 billion yen |
0.8
8.8
2.2
6.7
+6.1
+1.3
(4.1)
14.8
3.5
2.6
- Foods: The increase was mainly driven by robust sales of frozen fruits and beverage ingredients, as well as the overseas processed food business.
- Meat Products: Despite the sluggish domestic markets, profit increased compared to the underperforming previous year, partly due to sales contributions from Uruguayan beef.
- Grain, Oilseeds & Feedstuff: Major grain prices remained weak, leading to a decrease in profits compared to the previous year, which had performed well.
Steel, Materials & Plant | decreased 4.1 billion yen |
- Steel: The decrease in profit primarily attributed to impairment losses on equity method investments.
- Energy: The decrease in profits from the previous year, which had performed well, was mainly due to a decline in domestic demand.
Motor Vehicles & Aerospace increased 0.9 billion yen
0.1
FY2023
+0.9
1.7 0.5
FY2024
- Aerospace: Profit increased due to robust transactions of aircraft/vessel related parts.
- Motor Vehicles & Parts: Profit increased due to the improved market conditions.
© KANEMATSU CORPORATION. All Rights Reserved. | 4 |
Segment Outlook(based on new segment)
- The ICT Solution business formerly categorized within the Electronics & Devices segment, has now been reclassified as the ICT Solution segment.
- The Machine Tools & Industrial Machinery business and Kanematsu Sustech's businesses, have been reclassified to different segments.
Previous segment | New segment | ||||
classification (FY2024) | reclassification (FY2025) | ||||
Electronics & Devices | ICT Solution | ||||
ICT Solution | Electronics & Devices | ||||
Foods, Meat & Grain | |||||
Foods, Meat & Grain | |||||
Steel, Materials & Plant | |||||
Steel, Materials & Plant | |||||
Machine Tools & Industrial | |||||
Machinery | Environment | ||||
FY2024 | FY2025 | |||
(Unit: JPY Bn) | (actual) | (forecast) | YoY | |
ICT Solution | ||||
Revenue | 88.9 | 90.0 | +1.1 | |
Operating profit | 13.8 | 13.7 | (0.1) | |
Net profit1) | 9.2 | 9.6 | +0.4 | |
Electronics & Devices | ||||
Revenue | 236.3 | 280.0 | +43.7 | |
Operating profit | 8.8 | 8.7 | (0.1) | |
Net profit | 5.4 | 5.3 | (0.1) | |
Foods, Meat & Grain | ||||
Revenue | 341.7 | 410.0 | +68.3 | |
Operating profit | 8.0 | 7.7 | (0.3) | |
Net profit | 3.5 | 3.3 | (0.2) | |
Steel, Materials & Plant | ||||
Revenue | 211.7 | 195.0 | (16.7) | |
Operating profit | 8.5 | 7.4 | (1.1) | |
Net profit | 2.0 | 3.8 | +1.8 | |
Motor Vehicles & Aerospace | ||||
Revenue | 105.4 | 120.0 | +14.6 | |
Operating profit | 4.9 | 5.0 | +0.1 | |
Net profit | 2.9 | 3.0 | +0.1 | |
Other(Including adjustment) |
Growth
+1%
(1%)
+4%
+19%
(1%)
(3%)
+20%
(3%)
(5%)
(8%)
(13%)
+94%
+14%
+3%
+2%
Motor Vehicles & Aerospace
Other (Inc. adjustment)
Ground inspection, wood processing, etc.
Motor Vehicles & Aerospace
Machine Tools & Industrial
Machinery
Other (Inc. adjustment)
Revenue | 2.0 | 5.0 | +3.0 | |
Operating profit | 0.03 | 0.00 | (0.03) | |
Net profit | 0.16 | 0.00 | (0.16) | |
Total | ||||
Revenue | 986.0 | 1,100.0 | +114.0 | |
Operating profit | 43.9 | 42.5 | (1.4) |
+154%
-
-
+12%
(3%)
1) | Net profit = Profit attributable to owners of the parent | Net profit | 23.2 | 25.0 | +1.8 |
2) | Assumptions for the forecast: Exchange rate assumed at USD 1= JPY 135, with no anticipated changes in interest rates in Japan and expected decreases in interest rates overseas. |
+8%
© KANEMATSU CORPORATION. All Rights Reserved. | 5 |
Cash Flows
- Cash flows from operating activities
The cash inflow of 35.6 billion yen was primarily due to the accumulation of operating revenue.
- Cash flows from investing activities
The cash outflow of 12.4 billion yen was mainly due to the execution of new business investments, while there was cash inflow from the sale of property, plant and equipment.
- Cash flows from financing activities
The cash outflow of 50.1 billion yen was primarily due to the repayment of short-term borrowings obtained for the tender offer for Kanematsu Electronics, and payments for the acquisition of its shares to make it a wholly owned subsidiary.
(Unit: JPY Bn) | FY2023 | FY2024 | YoY | FY2023 | FY2024 | |||||||||
35.6 | ||||||||||||||
CF from operating activities | (0.3) | 35.6 | +35.9 | |||||||||||
CF from investing activities | (16.7) | (12.4) | +4.3 | 4.8 | ||||||||||
Free cash flows | (17.0) | 23.2 | +40.1 | (0.3) | (12.4) | |||||||||
(16.7) | ||||||||||||||
CF from financing activities | 4.8 | (50.1) | (54.9) | |||||||||||
(50.1) | ||||||||||||||
Operating cash flows (adjusted)1) | 30.2 | 33.2 | +3.0 | CF from operating activities | CF from investing activities | CF from financing activities | ||||||||
1)Operating cash flows (adjusted) = Operating cash flows ± Change in working capital - Repayment of lease liabilities
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Financial Position
- Total assets
The increase of 47.8 billion yen was primarily due to the increase in trade receivables, reflecting the rise in commodity prices and the depreciation of the yen.
- Net interest-bearing debt
The increase of 11.5 billion yen was primarily due to the rise in operating capital, despite repaying debts.
- Shareholders' equity
The increase of 30.8 billion yen was mainly from the accumulation of profit attributable to owners of the parent and other equity components, driven by the yen depreciation and rising share prices. The equity ratio reached 22.0%, with a net D/E ratio of 1.00x.
End of | End of | 677.6 | 725.3 | 159.4 | ||||||
(Unit: JPY Bn) | Mar 2023 Mar 2024 | YoY | 147.9 | 159.3 | ||||||
Total assets | 677.6 | 725.3 | +47.8 | 128.5 | ||||||
Net interest-bearing debt | 147.9 | 159.4 | +11.5 | 22.0% | 1.15x | |||||
19.0% | ||||||||||
Shareholders' equity1) | 128.5 | 159.3 | +30.8 | 1.00x | ||||||
159.3 | ||||||||||
Equity ratio2) | 19.0% | 22.0% | +3.0% | 128.5 | ||||||
Net D/E ratio3) | 1.15x | 1.00x | (0.15x) | End of Mar 2023 | End of Dec 2023 | End of Mar 2023 | End of Dec 2023 | |||
PBR4) | 1.08x | 1.37x | +0.29x | Total assets | Shareholders' equity | Equity ratio | Net interest-bearing debt | Shareholders' equity | ||
Net D/E ratio | ||||||||||
1) Shareholders' equity = Total equity attribute to owners of the parent | 3) Equity ratio = Shareholders' equity ÷ total assets | |||||||||
2) Net D/E ratio = Net interest-bearing debt ÷ total equity attributable to owners of the parent | 4) PBR = Market cap at the end of the period (end stock price x number of issued shares) ÷ Equity capital |
© KANEMATSU CORPORATION. All Rights Reserved. | 7 |
Annual Net Profit
- Achieved the 20 billion yen target of the revised medium-term vision, "future 135."
- The net profit1) for the fiscal year 2025 is expected to be 25.0 billion yen.
Net profit attributable to owners of the parent | ||||||
23.2 | 25.0 | |||||
(Unit: JPY Bn) | ||||||
16.6 | 16.0 | 18.6 | 16.1% | |||
14.4 | ||||||
13.8% | 13.3 | 12.9% | ||||
11.2% | 10.5% | |||||
9.7% | ||||||
6.4% | 5.3% | 4.9% | 5.6% | 5.6% | 6.4% | |
FY2019 | FY2020 | FY2021 | FY2022 | FY2023 | FY2024 | FY2025 |
Annual | ROE | ROIC | (forecast) | |||
- Net profit = Profit attributable to owners of the parent
- Assumptions for the forecast: Exchange rate assumed at USD 1= JPY 135, with no anticipated changes in interest rates in Japan and expected decreases in interest rates overseas.
© KANEMATSU CORPORATION. All Rights Reserved. | 8 |
Dividends
- An annual dividend of a minimum of 90 yen, with progressive dividends.
- With a target total return ratio of 30-35%, the policy is to increase dividends in accordance with the growth of net profit1).
- The annual dividend per share for the fiscal year 2025 is expected to increase by 10 yen, reaching 100 yen.
(Unit: JPY) | 90 | 100 | ||||
65 | 75 | Minimum | ||||
60 | 60 | 60 | ||||
of 90 yen | ||||||
37.6% | ||||||
34.8% | 34.0% | 33.7% | 33.4% | |||
32.4% | ||||||
30.3% | ||||||
F2019 | F2020 | F2021 | F2022 | F2023 | FY2024 | F2025 |
Dividend per share | Dividend payout ratio | |
1) Net profit = Profit attributable to owners of the parent
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Disclaimer
Kanematsu Corporation published this content on 07 May 2024 and is solely responsible for the information contained therein. Distributed by Public, unedited and unaltered, on 07 May 2024 08:09:06 UTC.