Results for the Year Ended March 31, 2014 (Fiscal 2013)
Financial Results | (Billions of Yen) |
| |
FY2012 |
FY2013 |
|
FY2013 |
| Full Year |
1H |
|
2H |
Full Year |
|
Previous
Forecast |
| 3Q |
4Q |
Diffe-
rence
from
previous
forecast |
Change
(Y on Y) |
| Net Sales |
2,478.5 |
1,342.0 |
815.2 |
769.8 |
1,585.1 |
2,927.1 |
+27.1 |
+18.1% |
2,900.0 |
| Operating
Income
(margin) |
-146.2 (-5.9%) |
33.8 (2.5%) |
47.6 (5.8%) |
27.0 (3.5%) |
74.7 (4.7%) |
108.5 (3.7%) |
+8.5
|
-
|
100.0 (3.4%) |
| Net Income (margin) |
-545.3 (-22.0%) |
-4.3 (-0.3%) |
22.0 (2.7%) |
-6.1 (-0.8%) |
15.8 (1.0%) |
11.5 (0.4%) |
+6.5
|
-
|
5.0 (0.2%) |
Consolidated financial results for the year ended March 31, 2014, recorded net sales of 2,927.1 billion yen, up 18.1% compared to the previous year. Operating income was 108.5 billion yen, and net income was 11.5 billion yen.
All these figures surpassed the forecasts announced on February 4, 2014. As well, the income figures increased greatly over the previous year and put us back into the black.
Sales by Product Group | (Billions of Yen) |
*Sales of each product group include internal sales between segments (Product Business / Device Business)
| |
FY2012 |
FY2013 |
| Full Year |
1H |
2H |
Full Year |
|
Difference
(Y on Y) |
Change
(Y on Y) |
| |
Digital Information Equipment |
732.6 |
334.6 |
398.7 |
733.3 |
+0.7 |
+0.1% |
| Health and Environmental
Equipment |
309.6 |
159.8 |
167.0 |
326.8 |
+17.2 |
+5.6% |
| Solar Cells |
259.9 |
168.2 |
270.7 |
439.0 |
+179.1 |
+68.9% |
| Business Solutions |
296.9 |
158.4 |
160.4 |
318.8 |
+21.8 |
+7.4% |
| Product Business |
1,599.2 |
821.2 |
996.9 |
1,818.1 |
+218.9 |
+13.7% |
| |
LCDs |
846.8 |
478.5 |
512.5 |
991.0 |
+144.1 |
+17.0% |
| Electronic Devices |
270.6 |
147.8 |
178.5 |
326.3 |
+55.7 |
+20.6% |
| Device Business |
1,117.5 |
626.4 |
691.0 |
1,317.4 |
+199.9 |
+17.9% |
| Sub Total |
2,716.7 |
1,447.6 |
1,687.9 |
3,135.6 |
+418.8 |
+15.4% |
| Adjustments |
-238.1 |
-105.6 |
-102.8 |
-208.4 |
+29.7 |
- |
| Total |
2,478.5 |
1,342.0 |
1,585.1 |
2,927.1 |
+448.6 |
+18.1% |
Operating Income by Product Group | (Billions of Yen) |
*The percentage figures noted in brackets show operating margin
| |
FY2012 |
FY2013 |
| Full Year |
1H |
2H |
Full Year |
|
Difference
(Y on Y) |
Change
(Y on Y) |
| |
Digital Information Equipment |
-9.8 (-1.3%) |
0.8 (0.3%) |
11.9 (3.0%) |
12.8 (1.8%) |
+22.6
|
-
|
| Health and Environmental Equipment |
32.2
(10.4%) |
9.6
(6.0%) |
11.3
(6.8%) |
21.0
(6.4%) |
-11.1
|
-34.7%
|
| Solar Cells |
-4.4
(-1.7%) |
9.8
(5.9%) |
22.5
(8.3%) |
32.4
(7.4%) |
+36.8
|
-
|
| Business Solutions |
24.3
(8.2%) |
15.9
(10.1%) |
14.6
(9.1%) |
30.5
(9.6%) |
+6.2
|
+25.5%
|
| Product Business |
42.1
(2.6%) |
36.3
(4.4%) |
60.4
(6.1%) |
96.8
(5.3%) |
+54.6
|
2.3-fold
|
| |
LCDs |
-138.9
(-16.4%) |
8.6
(1.8%) |
32.9
(6.4%) |
41.5
(4.2%) |
+180.5
|
-
|
| Electronic Devices |
-15.5
(-5.7%) |
5.2
(3.5%) |
-1.9
(-1.1%) |
3.2
(1.0%) |
+18.7
|
-
|
| Device Business |
-154.5
(-13.8%) |
13.9
(2.2%) |
30.9
(4.5%) |
44.8
(3.4%) |
+199.3
|
-
|
| Sub Total |
-112.3
(-4.1%) |
50.2
(3.5%) |
91.3
(5.4%) |
141.6
(4.5%) |
+253.9
|
-
|
| Adjustments |
-33.9 |
-16.4 |
-16.6 |
-33.0 |
+0.8 |
- |
| Total |
-146.2
(-5.9%) |
33.8
(2.5%) |
74.7
(4.7%) |
108.5
(3.7%) |
+254.8
|
-
|
Looking at sales for fiscal 2013 by product group, Solar Cells, LCDs, and Electronic Devices increased significantly compared to the previous year, and overall sales were up 18.1%.
As for operating income, Health and Environmental Equipment showed a decrease in earnings, owing to worsening profits of imported products caused by a yen depreciation. But Digital Information Equipment, Solar Cells, and LCDs improved significantly, resulting in an overall earnings increase over the previous year of 254.8 billion yen.
Breakdown of Operating Income by Factors
Looking at a breakdown of operating income by key contributing factors with a comparison between fiscal 2012 and fiscal 2013, the improvement in operating income was due to the effects of business restructuring, which include a 76.9 billion yen reduction in fixed costs, and a 69.4 billion yen reduction in assets. It was also due to a 108.6 billion yen effect mainly from increased revenue in each business.
Other Income (Expenses)
In the fourth quarter of fiscal 2013 (January to March 2014), a 4.7 billion yen gain on sales of investment securities was recorded as other income, and an impairment loss of 11.7 billion yen, related to goodwill of the development subsidiaries for solar power generation plants and the production facilities, etc. for Digital Information Equipment, was recorded as other expenses.
For the fiscal 2013 full year, other income (expenses) improved by 257.3 billion yen compared to the previous year, when a significant amount of expenses were recorded, including restructuring charges.
Consolidated Balance Sheets
Various efforts, including a capital increase through a public offering and third-party allotments, led to a result of 379.5 billion yen in cash, time deposits and restricted cash—an increase of 187.6 billion yen compared to the end of March 2013. Regarding net assets, however, retirement benefit obligation on the balance sheet had a negative effect of 109.3 billion yen, resulting in net assets of 207.1 billion yen—an increase of only 72.3 billion yen compared to the end of March 2013.
The equity ratio improved from 6.0% to 8.9%.
Transition of Interest-bearing Debt
Due to inventory reduction and a sell-off of assets such as investment securities, interest-bearing debt fell by 80.9 billion yen compared to the end of March 2013, to 1,093.5 billion yen. Net interest-bearing debt, which is interest-bearing debt minus, cash, time deposits and restricted cash, decreased by 268.5 billion yen, to 713.9 billion yen.
We will continue to work to improve cash flows to further reduce interest-bearing debt.
“Asset Light” Approach
Thanks to thorough company-wide efforts, inventory was 295.1 billion yen, a decrease of 15.5 billion yen compared to the end of March 2013. The ratio vs. monthly sales decreased from 1.50 months to 1.21 months.