Inaba Denki Sangyo : Financial Results for the Fiscal Year Ended March 31, 2023(With transcripts)（2MB）

Inaba Denki Sangyo

Co., Ltd.

Financial Results for the Fiscal Year Ended March 31, 2023

Inaba Denki Sangyo Co., Ltd.

Tokyo Stock Exchange Prime: 9934

I would like to start explaining Inaba Denki Sangyo Co., Ltd.'s "Financial Results for the Fiscal Year Ended March 31, 2023" on the web.

I'm Kita, the President and Representative Director.

Thank you for attending this presentation.

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Contents

• Financial Results for the Fiscal Year Ended March 31, 2023
• Business Strategy
• Earnings Forecast for the Fiscal Year Ending March 31, 2024
• Shareholder Return

Forward‐looking statements such as forecasts, plans and targets, are based on information currently available to the Group and on certain assumptions that the Group deems reasonable.

Actual results may differ significantly from these forecasts due to various factors.

Copyright(C)Inaba Denki Sangyo Co., Ltd. All rights reserved.

2

First, I would like to give you an overview of our financial results for the fiscal year ended March 31, 2023 and business strategy.

After that, I will explain the earnings forecasts and shareholder returns.

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Consolidated Statements of

Income

(Millions of yen)

		FY21	Composition	FY22	Composition	Increase	Rate of
		ratio	ratio	(decrease)	change
	Net sales	289,071	100%	316,947	100%	27,875	9.6%
	Gross profit	48,160	16.7%	52,323	16.5%	4,162	8.6%
	SG&A	31,898		33,682		1,783	5.6%
	Operating profit	16,261	5.6%	18,641	5.9%	2,379	14.6%
	Non-operating income	1,296		1,631		334	25.8%
	and expenses
	Ordinary profit	17,558	6.1%	20,272	6.4%	2,714	15.5%
	Extraordinary income	146		811		664	453.8%
	and losses
	Profit before income	17,704	6.1%	21,083	6.7%	3,378	19.1%
	taxes
	Profit attributable to	12,266	4.2%	15,427	4.9%	3,161	25.8%
	owners of parent
	*Unless otherwise stated, figures in this document are rounded down to the nearest unit, and percentages and percentage changes are rounded off.
	If the rate of change exceeds 1,000%, or if one or both of the comparison targets are negative, this is indicated with "‐".
Copyright(C)Inaba Denki Sangyo Co., Ltd. All rights reserved.				3

The slide shows the consolidated statements of income.

Net sales increased 9.6% compared to the previous fiscal year, to ¥ 316.947 billion.

Gross profit increased 8.6% to ¥ 52.323 billion, and the gross profit rate declined 0.2 of a percentage point to 16.5%.

Although there were increases in selling, general and administrative expenses such as personnel expenses and expenses related to the Tokyo Head Office relocation,

operating profit increased 14.6% to ¥ 18.641 billion, and ordinary profit increased 15.5% to ¥ 20.272 billion.

Profit attributable to owners of parent increased 25.8% to ¥ 15.427 billion, due to the sale of cross-shareholdings and the application of a tax system to promote wage increase.

As a result, the Company posted record high results.

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Business Results by Segment

• Electrical Equipment and Materials
• Industrial Automation
• Proprietary Products

	Net sales				(100 millions of yen)			Segment			(100 millions of yen)
															Profit
										663
570			605	541	612
				307						399												125
320			278	338
													125
																121
													111
															103
																							21
1,894			2,024	1,953	1,939	2,106		15	12	8	14
													66	77	66	78	95
	FY18	FY19		FY20			FY21		FY22			FY18		FY19		FY20			FY21		FY22

*The accounting standard for revenue recognition has been applied from FY21. This standard has not been applied retroactively to FY20 or earlier.

Copyright(C)Inaba Denki Sangyo Co., Ltd. All rights reserved.

4

The following chart shows the performance trends of each segment.

There are three main segments: Electrical Equipment & Materials and Industrial Automation in the Trading Companies segment, and Proprietary Products in the Manufacturing segment.

Although there has been no significant change in the composition of sales and profits by segment over the past five years, due to the significant growth of the Industrial Automation segment, the composition of sales was 12.6%, up 0.9 percentage points from the previous fiscal year, and the composition of profits was 8.7%, up 2.1 percentage points from the previous fiscal year.

Next, I will explain the performance of each segment.

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Electrical Equipment & Materials

Net sales	(100 millions of yen)

2,106

1,953 1,939

Net sales +8.6% YoY

Although sales prices of a lot of equipment, including electric wire cables, rose due to soaring copper prices, and supply was constrained by a shortage of semiconductors, revenue increased due to the delivery of disaster prevention equipment and power distribution equipment for large-scale buildings such as the redevelopment of the Tokyo metropolitan area, the renovation of manufacturing facilities, and data centers.

Reference index

Floor area of non- residential private buildings

New housing construction

Year-on-year

FY21

FY22

+9.3% -1.0%

+6.6% -0.6%

FY20 FY21 FY22

Copyright(C)Inaba Denki Sangyo Co., Ltd. All rights reserved.

Source: Ministry of Land, Infrastructure, Transport and Tourism

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First, I would like to explain the performance of Electrical Equipment & Materials.

Electrical Equipment & Materials sells equipment such as electric wire cables, lighting, and power distribution equipment to office buildings, commercial facilities, factories, and residences.

Net sales increased 8.6% compared to the previous fiscal year, to a record ¥ 210.6 billion. Although there were constraints on the supply side due to factors such as a shortage of semiconductors, sales remained strong due to the redevelopment of the Tokyo metropolitan area, the renewal of manufacturing equipment, and the acquisition of large-scale projects such as data centers.

We also benefited from price increases in many equipment, including electric wire cables.

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