Okamura : Financial Results for Third Quarter of Fiscal YearEnding March 31, 2022 (Consolidated)(PDF 429KB)

(% Figures indicate year-over-yearincrease/decrease.)

Financial Results for Third Quarter of Fiscal Year

Ending March 31, 2022 [Japanese GAAP] (Consolidated)

		February 3, 2022
Okamura Corporation	Listing: Tokyo Stock Exchange
Code Number: 7994	URL: https://www.okamura.co.jp/
Representative:	Masayuki Nakamura, Representative Director, President and Chief Executive Officer
Contact:	Sakae Fukuda, Director and Executive Officer, CFO	TEL: [phone]
Scheduled date for filing of quarterly report:	February 14, 2022
Scheduled date for commencement of dividend payments:	-
Preparation of supplementary materials to explain quarterly financial results:	None
Scheduling of meeting to explain quarterly financial results:	None

(Amounts less than 1 million yen have been rounded down.)

1. Consolidated Operating Results for Third Quarter (April 1, 2021 to December 31, 2021) of FY Ending March 2022 (April 1, 2021 to March 31, 2022)

(1) Operating Results (cumulative)

	Net sales		Operating income	Ordinary income	Profit attributable to
		owners of parent
	Millions of yen	%	Millions of yen	%	Millions of yen	%	Millions of yen	%
Third quarter of FY ending March 2022	182,767	9.4	9,386	53.8	10,640	48.0	7,782	40.6
Third quarter of FY ended March 2021	167,036	(5.8)	6,102	4.3	7,191	1.1	5,536	10.7

Note:

Comprehensive income

¥6,734 million (-33.6%) for the third quarter of FY ending March 2022

¥10,141 million (57.5%) for the third quarter of FY ended March 2021

Profit per share

Diluted profit per share

yen

yen

Third quarter of FY ending March 2022

78.39

-

Third quarter of FY ended March 2021

51.17

-

(2) Financial Position

Total assets

Net assets

Equity ratio

Millions of yen

Millions of yen

%

Third quarter of FY ending March 2022

237,379

139,948

58.4

FY ended March 2021

245,473

139,776

56.5

Reference: Total equity

¥138,618 million for the third quarter of FY ending March 2022

¥138,757 million for FY ended March 2021

2. Dividend

Annual dividend

End of first quarter

End of second quarter

End of third quarter

Year-end

Total

yen

yen

yen

yen

yen

FY ended March 2021

-

12.00

-

20.00

32.00

FY ending March 2022

-

20.00

-

FY ending March 2022 (forecast)

20.00

40.00

Note:

Revision of the most recently released dividend forecasts: None

3. Forecast of Consolidated Performance for FY Ending March 2022 (April 1, 2021 to March 31, 2022)

(% Figures indicate year-over-year increase/decrease.)

	Net sales		Operating income	Ordinary income	Profit attributable to	Profit per share
		owners of parent
	Millions of yen		%	Millions of yen	%	Millions of yen	%	Millions of yen	%	yen
Full year	247,000		1.0	16,500	16.4	17,500	13.8	14,300	19.4	144.03

Note: Revision of the most recently released performance forecasts: Yes

* Notes

1. Changes in the number of material subsidiaries during the quarter under review (This indicates whether there have been changes in the number of specified subsidiaries involving changes in the scope of consolidation): None

New	- company(ies) (	-)
Excluded	- company(ies) (	-)

1. Adoption of a special accounting method applicable to the preparation of consolidated quarterly financial statements: None
2. Changes in accounting policy or accounting estimates, or restatement
    Changes in accounting policy in accordance with revisions to accounting standards: Yes

 Changes other than those in  above in accounting policy: None

 Changes in accounting estimates: None

 Restatement: None

(4) Number of shares of stock (common stock)
 Number of shares issued (including treasury stock) at the end of the term	3Q of FY ending	100,621,021	FY ended	100,621,021
	March 2022		March 2021
 Number of shares of treasury stock at the end of the term	3Q of FY ending	1,621,860	FY ended	189,377
	March 2022		March 2021
 Average number of shares during the term (cumulative quarters)	3Q of FY ending	99,284,618	3Q of FY ended	108,198,313
	March 2022		March 2021

• The Summary of Quarterly Financial Results is not subject to quarterly audit by a Certified Public Accountant or an audit firm.
• Explanation of Appropriate Use of Performance Forecasts and Other Issues Requiring Particular Mention

• The performance forecasts and other forward-looking statements contained herein are based on the information available to the Company at the time, and contain certain assumptions that the Company considers to be reasonable. They are subject to diverse factors that may cause actual results of operations and other items to differ significantly from the statements and forecasts. For a description of the assumptions underlying the performance forecasts and the points to note when using the performance forecasts in this document, etc., please refer to (3) Explanation of the performance forecast in 1. Qualitative Information Concerning Consolidated Quarterly Financial Results on page 3 of the Appendix.

Okamura Corporation (7994) Financial Results for Third Quarter of Fiscal Year Ending March 31, 2022 (Consolidated)

• Table of Contents for Appendix

1.	Qualitative Information Concerning Consolidated Quarterly Financial Results ...............................................................	2
	(1)	Explanation of the progress in (consolidated) operating results...............................................................................	2
	(2)	Explanation of the changes in (consolidated) financial position ..............................................................................	3
	(3)	Explanation of the performance forecast .................................................................................................................	4
2.	Consolidated Quarterly Financial Statements and Important Notes..................................................................................	5
	(1)	Consolidated Quarterly Balance Sheet.....................................................................................................................	5

1. Consolidated Quarterly Statements of Income and Consolidated Quarterly Statements of Comprehensive

Income .....................................................................................................................................................................	7
(3) Consolidated Quarterly Statements of Cash Flows ..................................................................................................	9
(4) Notes regarding Consolidated Quarterly Financial Statements..............................................................................	10
Note regarding the assumption of going concern................................................................................................	10
Note regarding occurrence of significant change in amount of shareholders' equity ..........................................	10
Changes in accounting policies...........................................................................................................................	10
Note regarding Consolidated Quarterly Statements of Income............................................................................	11
Segment information ...........................................................................................................................................	11
Matters related to business combinations ...........................................................................................................	12
Significant subsequent events .............................................................................................................................	14

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Okamura Corporation (7994) Financial Results for Third Quarter of Fiscal Year Ending March 31, 2022 (Consolidated)

1. Qualitative Information Concerning Consolidated Quarterly Financial Results

1. Explanation of the progress in (consolidated) operating results
   During the third quarter of the consolidated fiscal year under review, the Japanese economy continued to experience severe difficulties amid the lingering effect of the novel coronavirus pandemic despite some signs of recovery. In particular, the price of materials soared due to the tight supply-demand conditions caused mainly by lockdown measures taken by some of the Asian countries to control the resurgence of infection cases and delays in delivery due to the global shortage of transport ships. The outlook for the Japanese economy remains uncertain given the sharp rise in the number of infection cases due to the spread of Omicron and other variants, although economic activities are expected to recover supported by, among other things, the spread of vaccination.
   Under these circumstances, the Okamura Group disseminated information by leveraging our internal expertise in the form of, for example, releasing the report "Workplace Strategy toward a Post-COVID-19 Society," while challenging itself to try new pandemic-era workstyles. Through these activities, we focused on developing a new market by creating distinctive products and offering total solutions, while taking measures to absorb the effect of rising material prices, such as cost reduction and price revisions.
   As a result of the above, during the third quarter of the consolidated fiscal year under review, the Company posted net sales of ¥182,767 million (¥167,036 million in the same period of the previous fiscal year), operating income of ¥9,386 million (¥6,102 million in the same period of the previous fiscal year), ordinary income of ¥10,640 million (¥7,191 million in the same period of the previous fiscal year), and profit attributable to owners of parent of ¥7,782 million (¥5,536 million in the same period of the previous fiscal year). The Company posted record-high quarterly net sales, operating income, ordinary income, and profit for the third quarter of the consolidated fiscal year ending March 31, 2022.
   In July 2021, the Okamura Group revised part of our existing management philosophy and systematically reorganized it into the "Okamura Way" to align with changing values that reflect the increasing importance of realizing a sustainable society. We aim to further enhance our corporate value and contribute to resolving social issues.
   The "Accounting Standard for Revenue Recognition" (ASBJ Statement No. 29, March 31, 2020), etc. has been applied since the beginning of the first quarter of the consolidated fiscal year. As such, percentage changes from the same period of the previous consolidated fiscal year have been omitted in our explanation of the progress in (consolidated) operating results for the third quarter of the consolidated fiscal year under review.
   Performance results by segment are discussed below.

	Net sales (Millions of yen)		Segment income or loss (Millions of yen)
Segment name	Third quarter of FY	Third quarter of FY	Increase/	Third quarter of FY	Third quarter of FY	Increase/
	ended March 2021	ending March 2022	decrease	ended March 2021	ending March 2022	decrease
Office Furniture	86,438	94,541	8,102	3,707	7,037	3,330
Store Displays	66,470	75,606	9,136	1,514	2,744	1,230
Material Handling	10,972	8,443	(2,529)	1,053	(449)	(1,502)
Systems
Others	3,154	4,176	1,021	(172)	53	226
Total	167,036	182,767	15,730	6,102	9,386	3,283

Note: The total of segment income or loss corresponds to the operating income on Consolidated Quarterly Statements of Income.

Office Furniture

In the Office Furniture segment, the trend to create new office environments, such as work style reform, is expanding nationwide, reaching a broad base of companies, regardless of industry or scale. This trend is further intensifying due to rapid changes in the ways that people work amid the novel coronavirus pandemic. Under these circumstances, the Company engaged in proposal-based sales to meet customer needs, such as demand for the rightsizing of office floor areas, and the expansion of new products to serve the change in work styles, leveraging the results obtained from our proof-of-concept office "LABO Office" to put into practice and verify new ways of working, in addition to the experience and knowledge gained from the Company's own work style reform. Owing to these efforts, both net sales and income increased significantly in comparison to the third quarter of the previous consolidated fiscal year.

As a result, net sales in this segment amounted to ¥94,541 million (¥86,438 million in the same period of the previous fiscal year), and the segment income amounted to ¥7,037 million (a segment income of ¥3,707 million in the same period of the previous fiscal year), a record high income.

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Okamura Corporation (7994) Financial Results for Third Quarter of Fiscal Year Ending March 31, 2022 (Consolidated)

Store Displays

In the Store Displays segment, renovation demand remained firm particularly among retailers such as supermarkets and drug stores, which represent the Company's main customer base. Under these circumstances, the Company stepped up efforts to deliver total solutions for display fixtures, store carts, store security products, and the like by leveraging the organization's comprehensive capabilities. The Company also made efforts to cater to new demand, for example, for infection prevention measures such as self-checkout registers and for checkout counter fixtures and fittings that can accommodate increasingly diverse payment methods. Owing to these efforts, both net sales and income increased significantly in comparison to the third quarter of the previous consolidated fiscal year.

As a result, net sales in this segment amounted to ¥75,606 million (¥66,470 million in the same period of the previous fiscal year), and the segment income amounted to ¥2,744 million (a segment income of ¥1,514 million in the same period of the previous fiscal year).

Material Handling Systems

In the Material Handling Systems segment, demand for automated storage systems remained at high levels. This was mainly among major logistics facilities on the back of expanding stay-at-home demand and growing labor-saving needs arising from labor shortages. Under these circumstances, the Company has actively engaged in promotion activities for proposals that maximize the strengths of its products, which stand out due to their superiority. Despite these efforts, both net sales and income declined in comparison to the third quarter of the previous consolidated fiscal year, mainly due to stagnation in sales negotiations since the beginning of the previous fiscal year and customers' postponement of investment resulting from the spread of novel coronavirus infections. However, new orders are currently increasing steadily.

As a result, net sales in this segment amounted to ¥8,443 million (¥10,972 million in the same period of the previous fiscal year), and the segment loss amounted to ¥449 million (a segment income of ¥1,053 million in the same period of the previous fiscal year).

1. Explanation of the changes in (consolidated) financial position
   The Company's consolidated financial position at the end of the third quarter of the fiscal year under review is as follows:
   Total assets amounted to ¥237,379 million, down ¥8,094 million compared with the end of the previous consolidated fiscal year. Current assets decreased by ¥9,329 million, mainly because of a decrease in cash and deposits, notes and accounts receivable-trade, and contract assets and an increase in inventories, and non-current assets increased by ¥1,235 million, mainly because of an increase in goodwill and a decrease in investment securities.
   Liabilities amounted to ¥97,431 million, down ¥8,266 million compared with the end of the previous consolidated fiscal year, mainly as a result of a decrease in notes and accounts payable-trade, income taxes payable, and provision for bonuses.
   Net assets amounted to ¥139,948 million, increased by ¥171 million from the end of the previous fiscal year, mainly because of an increase in retained earnings, a decrease in the valuation difference on available-for-sale securities, and an increase in treasury stock.
   As a result, the equity ratio amounted to 58.4%, up 1.9 percentage points compared with the end of the previous fiscal year. A review of cash flows for the third quarter of the current fiscal year is as follows:
   Operating activities generated a net cash increase of ¥4,404 million (an increase of ¥21,584 million in the same period of the previous fiscal year), reflecting inflows including profit before income taxes for the quarter of ¥11,301 million, depreciation and amortization of ¥4,182 million, and a decrease in notes and accounts receivable-trade and contract assets of ¥8,961 million. Outflows included an increase in inventories of ¥4,146 million, a decrease in notes and accounts payable-trade of ¥8,676 million, and income taxes paid of ¥6,142 million.
   Investment activities resulted in a net cash outflow of ¥5,468 million (a net cash outflow of ¥2,416 million in the same period of the previous fiscal year), reflecting inflows including proceeds from sales and redemption of investment securities of ¥1,088 million and outflows including disbursements of ¥3,231 million for the purchase of property, plant and equipment, ¥567 million for the purchase of intangible assets, and ¥2,457 million for the purchase of shares of subsidiaries resulting in change in scope of consolidation.
   Financing activities resulted in a net cash outflow of ¥4,503 million (a net cash outflow of ¥11,127 million in the same period of the previous fiscal year), reflecting inflows including an increase of short-term loans payable of ¥2,046 million and outflows including the purchase of treasury stock of ¥2,038 million and cash dividends paid of ¥3,773 million.
   Consequently, consolidated cash and cash equivalents at the end of the current fiscal year's third quarter decreased by ¥5,394 million from the end of the previous fiscal year (an increase of ¥7,865 million in the same period of the previous fiscal year) to ¥39,025 million.

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