Settlement Summary
Consolidated financial results for fiscal year ended September 2011
| FY 2010/9 | FY 2011/9 | |||
| Million yen | (%) | Million yen | (%) | |
| Sales | 3,778 | △0.4 | 4,744 | 25.6 |
|---|---|---|---|---|
| Operating profit | 213 | - | 802 | 275.7 |
| Ordinary profit | 244 | - | 824 | 236.9 |
| Net profit | 72 | - | 499 | 592.5 |
| Net profit per share (yen Sen) | 14.04 | 99.95 | ||
| Fully diluted net profit per share (yen Sen) | - | - | ||
| Return on equity (%) | 1.5 | 10.2 | ||
| Ordinary profit to total assets (%) | 3.0 | 10.0 | ||
| Operating margin ratio (%) | 5.7 | 16.9 | ||
| Total assets (Million yen) | 7,977 | 8,554 | ||
| Net assets (Million yen) | 4,693 | 5,128 | ||
| Capital adequacy ratio (%) | 58.8 | 59.8 | ||
| Net assets per share (yen Sen) | 938.96 | 1,023.34 | ||
| Cash flows from operating activities (Million yen) | 530 | 811 | ||
| Cash flows from Investing activities (Million yen) | △106 | △31 | ||
| Cash flows from Financing activities (Million yen) | △669 | △673 | ||
| Cash and cash equivalents, end of period (Million yen) | 3,670 | 3,776 | ||
| Dividends per share (yen Sen) | 15.00 | 30.00 | ||
| Dividends payout ratio (%) | 106.8 | 30.0 | ||
| Dividends on equity (%) | 1.6 | 2.9 | ||
*”%” indicates an increase-decrease rate over the previous year
*Investment profit on equity method: FY 2011 - ___ million yen, FY 2010 - ___ million yen
*Shareholders' equity: FY 2011 - 5,115 million yen, FY 2010 – 4,693 million yen
Business Performance for the Current Year
Overall Condition
Our country’s economy during this consolidated fiscal year showed gradual recovery led by external demands. Improvement of corporate earnings and decrease in corporate bankruptcies indicate brightness in business, however, since summer, due to the effect of yen surge and deflation and unstable overseas economy, the stalemate continues.
In this economic environment, our Group, subsequent to last year, performed positive expansion into overseas including the Chinese market. For the purpose of sales expansion and improvement of quality, quantity and speed of customer service in the Chinese market, we established a subsidiary company, Unipulse Trading (Wuxi) Co., Ltd and started business on January 1st, 2011.
Furthermore, in order to improve further operational efficiency and reduce costs of our Group, our Yokohama office moved to Naka-ku, Yokohama-city, Kanagawa on October 18th, 2010.
As a result, the current consolidated fiscal year reported sales of 4,744 million yen (up 25.6% from the previous year), an operating profit of 802 million yen (up 275.7% from the previous year), an ordinary profit of 824 million yen (up 236.9% from the previous year) and a net profit of 499 million yen (up 592.5% from the previous year).
Conditions by business segment
[Electronics Equipment Manufacturing Business]
(a) Overall conditionThe electronics equipment manufacturing business reported sales of 4,076 million yen (up 24.3% from the previous year) and an operating profit of 756 million yen (up 185.8% from the previous year).
Concerning our development activities,
We developed 6 models (3 models of them are still under development) and related options as new products of weighing and measuring instruments and obtained standard acquisition of each product.
Also we started selling 2 approved models which correspond to the specific meter (JISB7611-2). In addition, development of model changes of 7 models (including discontinued parts correspondence) and standard acquisition were performed.
We developed 7 models for OEM products.
We developed a dynamic torque meter which has minimum initial shock torque and compact vibration measurement device.
We developed a capacitance type displacement sensor(OEM) for the semiconductor manufacturing equipment, which will be sequentially supplied from next fiscal year.
As for the logistics system, we developed 1 model of new type of cart and application.
The installation operation was carried out at six places as new centers. In the information and communication facility, development of the line adapter for satellite telephones for major carrier was completed. We started supplying them this fiscal year.
Regarding to the optical measurement apparatus, we narrowed down the functions, pursued the cost efficiency and released a new style MTF measuring device.
We have 292 new customers.
In the weighing and factory automation sector, we, subsequent to last year, performed positive expansion into overseas including the Chinese market therefore high profitability products such as measurement apparatuses remained steady. Sales in the weighing sector amounted to 1,124 million yen (up 8.0% from the previous year), while the factory automation sector amounted to 1,075 million yen (up 17.9% from the previous year).
In the environment sector, sales amounted to 132 million yen (down 2.7% from the previous year).
With regard to the logistics sector, as a result of big sales and profit improvements, sales amounted to 657 million yen (up 273.1% from the previous year).
In the security sector, sales amounted to 9 million yen (down 27.8% from the previous year).
In the information and telecommunications sector, sales amounted to 78 million yen (down 9.7% from the previous year).
In the mechatronics sector, sales amounted to 430 million yen (up 4.8% from the previous year).
As for the optical measurement sector, sales amounted to 43 million yen (down 26.0% from the previous year).
Regarding load cells and other electronics equipment, sales amounted to 420 million yen (up 21.0% from the previous year) and 103 million yen (up 6.7% from the previous year).
Electric Equipment Business
In addition to the increase in Narita Airport-related work, we developed customer acquisition and active sales of small construction work. Also we made efforts to curtail fixed costs and to decrease costs.
As a result, sales ended at 668 million yen (up 34.1% from the previous year) and operating profit amounted to 40 million yen (operating loss of 56 million yen in the previous year).
Analysis of Financial Conditions
Analysis of Assets, Liabilities, Net Assets and Cash Flows
(a) Assets, Liabilities and Net Assets
Current assets increased 625 million yen from the previous consolidated fiscal year to 6,368 million yen. Cash and deposits decreased 2,394 million yen, however, the increase is mainly due to 66 million yen in notes and accounts receivable, 2500 million yen in securities, 49 million yen in goods and products, 109 yen million yen in work in progress, 162 million yen in raw materials and stored goods, 53 million yen in construction in progress disbursements, 40 million yen in deferred tax assets, and an increase of 24 million yen in accounts receivable of completed work.
Fixed assets decreased 47 million yen from the previous consolidated fiscal year to 2,186 million yen. This was mainly due to a decrease of 54 million yen in depreciation of tangible fixed assets and intangible assets despite the increase of 27 million yen in investment securities.
Currents assets increased 784 million yen from the previous consolidated fiscal year to 2,175 million yen. This was mainly due to an increase of 276 million yen in notes and accounts payable and 66 million yen in accounts payable-construction, 30 million yen in corporate bond which is supposed to repaid within a year and an increase of 291 million in income taxes payable.
Fixed liabilities decreased 641 million yen from the previous consolidated fiscal year to 1,250 million yen. This was mainly due to a decrease of 140 million yen in corporate bond and 473 million yen in long-term debt.
Net assets increased 435 million yen from the previous consolidated fiscal year to 5,128 million yen. This was mainly due to an increase of 13 million yen as the stock acquisition rights and an increase of 424 million yen in retained earnings due to net income.
(b) Conditions of Cash Flows
Cash flows in the current consolidated fiscal year increased 811 million yen by operating activities and decreased 31 million yen by investing activities and 673 million yen by financing activities. As a result, cash and cash equivalents increased 105 million yen and the balance of cash flows amounted to 3,776 million yen at the end of the year.
(1) Cash flows from operating activities
Cash flow from operating activities increased 811 million yen (up 52.9% from the previous year), in spite of a decrease of 380 million yen for the inventory increase and 91 million yen for the trade receivables increase, there was an increase of 825 million yen for current term net profit such as a tax, 343 million yen for an increase of trade payable and 69 million yen for an increase of arrears.
(2) Cash flows from investing activities
Cash flows from investing activities decreased 31 million yen (a decrease of 106 million yen in the previous year), due to an expenditure of 31 million yen for acquisition of investment securities.
(3) Cash flows from financing activities
Cash flows from financing activities decreased 673 million yen (a decrease of 669 million yen in the previous year), due to 488 million yen by the repayment of long-term debt, an expenditure of 110 million yen through redemption of corporate bonds and an expenditure of 75 million yen for the payment of dividends.
| FY 2007/9 | FY 2008/9 | FY 2009/9 | FY 2010/9 | FY 2011/9 | |
| Capital adequacy ratio | 61.3% | 64.4% | 57.8% | 58.8% | 59.8% |
|---|---|---|---|---|---|
| Capital adequacy ratio at market value | 35.2% | 33.4% | 30.1% | 28.8% | 35.1% |
| Ratio of Interest-beating debt to cash flows | 4.0 year | 1.1 year | 24.3 year | 3.9 year | 1.8 year |
| Interest coverage ratio | 17.86 | 53.96 | 3.41 | 15.65 | 31.30 |
Capital adequacy ratio: Treasury stock/Total assets
Capital adequacy ratio at market value: Aggregate market value of stock/Total assets
Ratio of Interest-beating debt to cash flows: Interest-bearing debt/Operating cash flows
Interest coverage ratio: Operating cash flows/Interest payment
- Each indicator is calculated by using the consolidated financial figures.
- The aggregate market value of stock is calculated by the formula of "closing stock price at end of year × total number of stock issued at the end of year (after deducting treasury stock)."
- For operating cash flows, cash flows from operating activities in the statement of consolidated cash flows are used.
Interest-bearing debt covers all debts for which interest is paid out of debts reported in the consolidated balance sheets. For interest payments, the amount of payment of interest reported in the statement of consolidated cash flows is used.
Basic Policy on Distribution of Profit and Dividends for the Current and Next Fiscal Years
Our group makes it a basic policy of management to return our profits to our shareholders. Based on this policy, we will maintain stable dividends and appropriately return our profits to our shareholders. Retained earnings will be used as funds for the enhancement of our business structure, such as proactive investment in growth and new businesses, research and development activities, cost reductions, rationalization of equipment for improvements in quality and acquisitions of businesses.
With regard to the dividend of this year, the year-end dividend per share was going to be 15 yen but as a result of strengthening the profit structure and business structure by steady management efforts, our management structure can provide stable dividend of 30 yen. It is resolved that dividend is increasing 15 yen per share and the year-end dividend per share is revised to 30 yen.
We will maintain this dividend.
Dividends of the surplus are annually paid at the end of the year as our basic policy.
In the 35th annual meeting of shareholders held on December 6, 2003, the Articles of Association were amended so that treasury stock can be acquired by a resolution of the Board of Directors to implement an agile capital policy, and in the 38th annual meeting of shareholders held on December 20, 2006, the Articles of Association were amended so that dividends can be paid by a resolution of the Board of Directors.
Risks of Business
Risks that may have a substantial effect on the financial position and business performance of our Group include the following, which we think may have a substantial impact on the judgment of our investors:
(1) Risk relating to economic conditions
Business of our Group is subject to the effects of change in economic trends centered on private capital investment. Reductions in customer capital investments and payment of expenses, which derive from vulnerability of the Japanese economy, may have an effect on the financial position and business performance of our Group.
(2) Developmental capability of new products
The development of new products and the process of sales are complicated and uncertain from their very nature and contain various risks including the following:
- There is no guarantee to be able to appropriate sufficient funds and resources for investments in new products and new technologies.
- It is not assured that long-term investments and injections of large amounts of resources may lead to the creation of successful new products and new technologies.
- It is not necessarily the case that our Group can exactly forecast new products and new technologies that may gain support from the market, and it is also not assured that sales of these new products will be successful.
- There is no guarantee of protection of newly developed products or technologies by our proprietary intellectual property rights.
(3) Risk of defectives in products
Our Group provides for strict quality control standards and maintains a quality check system for each product in conformity with such standards, and makes continuous efforts to improve the quality of our products and services. However, it is not guaranteed that there will be no defectiveness in all products and recalls will not take place in the future. Defectiveness that may lead to a large-scale recall and product liability compensation may involve large costs and have a significant impact on the evaluation of our Group, and consequently it may result in a decline in sales and have an impact on the financial position and business performance of our Group.
(4) Regulated chemical substances
The products of our Group use parts and materials that contain regulated chemical substances, such as lead and cadmium, the use of which was prohibited from July 2006 in the European Union (EU). Our Group established a Regulated Chemical Substances Project to investigate the current status of content of regulated chemical substances in all parts and materials that we handle in collaboration with our suppliers and take proper steps to switch over to substitute parts and materials that do not contain regulated chemical substances. If any problem arises for the procurement of such alternative parts and materials, it may have an impact on the financial position and business performance of our Group.
(5) Dependence on the business performance of OEMs
The products that our Group supplies as an OEM business include seismometers and inventory terminals. Sales of these products to our OEMs are greatly affected by the business performance of such customers and other factors that are beyond our control. Possible poor business performance of our customers, unexpected cancellation of contracts and changes in procurement policy in OEMs may have an impact on the financial position and business performance of our Group.
(1) Risk relating to economic conditions
- Our Group's electric equipment business may be subject to the trends of capital investment resulting from business fluctuations.
Accordingly, a decrease in public works investment and customer capital investment may have an impact on the financial position and business performance of our Group. - An increase in the market prices of materials and raw materials may have an impact on the financial position and business performance of our Group, as it is directly linked to the prices of producing machines and materials for electric facilities such as electric wires.
- Since our Group's main business is execution management, an increase in labor costs at a site may have an impact on the financial position and business performance of our Group.
(2) Risk relating to customers
Any failure or delay in collection of receivables resulting from unexpected problems of management in customers such as bankruptcy may have an impact on the financial position and business performance of our Group.
(3) Risk relating to the occurrence of accidents and trouble
Any natural disasters and trouble in construction works such as accidents may have an impact on the financial position and business performance of our Group.
