October 26, 2007
Nihon Dempa Kogyo Co., Ltd.
Consolidated Financial Results for the Six Months Ended September 30, 2007
Tokyo, October 26, 2007 – Nihon Dempa Kogyo Co., Ltd. today announced its consolidated business results for
the six months ended September 30, 2007, the half-year of the fiscal year ending March 31, 2008. The following
summary of the business results and the attached financial statements are unaudited and prepared in accordance
with Japanese GAAP.
1. Consolidated Financial Results for the Six Months Ended September 30, 2007
(April 1, 2007 - September 30, 2007)
(Millions of Yen, Figures less than a million yen are omitted)
Six months ended September 30,
Year ended March 31,
(1) Results of Operations
2006
2007
Change
2007
Net sales
34,900
39,550
13.3%
73,307
Operating income
4,209
5,696
35.3%
9,427
Ordinary income
3,642
5,664
55.5%
8,551
Net income
2,107
3,962
88.1%
4,716
Earnings per share (Yen)
105.78
198.56
236.76
Earnings per share, diluted (Yen)
103.89
177.43
221.20
Note: Weighted-average number of shares outstanding during the period: 19,958 thousand shares for the six
months ended September 30, 2007; 19,921 thousand shares for the six months ended September 30, 2006;
19,920 thousand shares for the year ended March 31, 2007.
September 30,
March 31,
(2) Financial Position
2006
2007
2007
Total assets
88,442
92,126
88,449
Net assets
46,454
52,850
49,259
Owners' equity to total assets
52.4%
57.2%
55.6%
Owners' equity per share (Yen)
2,327.57
2,630.86
2,468.03
Note: Number of shares outstanding: 20,045 thousand shares as of September 30, 2007; 19,920 thousand shares
as of September 30, 2006; 19,919 thousand shares as of March 31, 2007.
Six months ended September 30,
(3) Conditions of Cash Flows
Net cash provided by operating activities
Net cash used in investing activities
Net cash (used in)/provided by financing activities
Cash and cash equivalents at end of period
2006
6,338
(4,582)
4,776
16,719
2007
6,075
(4,398)
(2,423)
14,772
Year ended March 31,
2007
14,677
(11,501)
1,991
15,526
(4) Change in Scope of Consolidation
There was no significant change in scope of consolidation for the six months ended September 30, 2007.
1
2. Consolidated business forecast for the Fiscal Year Ending March 31, 2008 (April 1, 2007 - March 31, 2008)
Millions of Yen,
Year ending March 31, 2008
Net sales
80,000
Operating income
11,500
Ordinary income
11,500
Net income
7,800
Earnings per share (Yen)
389.12
Note: The estimates showing above are based on information available to the Company on the date of the
report's announcement. Due to the unforeseen circumstances, actual results may differ from such estimates.
2
Consolidated Balance Sheets
October 26, 2007
Nihon Dempa Kogyo Co., Ltd.
(Millions of Yen, Figures less than a million yen are omitted)
September 30,
Composition
September 30,
Composition
March 31,
Composition
2006
%
2007
%
2007
%
ASSETS
Current assets:
Cash on hand and bank deposits
16,319
14,471
15,226
Notes and accounts receivable – trade
18,613
20,554
18,694
400
301
300
Inventories
8,758
8,800
8,528
Deferred tax assets
1,346
1,319
1,283
Others
1,208
2,442
2,360
(91)
(62)
(76)
Short-term investments
Allowances for doubtful receivables
Total current assets
46,553
52.6
47,827
51.9
46,317
52.4
Noncurrent assets:
Property, plant and equipment, net
Buildings and structures
8,627
9,848
8,993
Machinery and vehicles
19,117
20,628
19,695
Land
3,165
2,917
2,925
Construction in progress
2,147
2,342
1,538
Others
1,139
1,153
1,118
Total property, plant and equipment, net
34,197
38.7
36,890
40.1
34,271
38.7
Intangible assets
Goodwill
223
-
-
Patents
633
55
75
Others
1,122
992
1,059
Total intangible assets
1,979
2.2
1,047
1.1
1,134
1.3
Investments and other assets
Investment securities
2,477
2,000
2,675
Deferred tax assets
2,070
2,991
2,681
Others
1,240
1,370
1,371
(76)
(2)
(2)
Allowances for doubtful receivables
Total investments and other assets
5,712
6.5
6,360
6.9
6,726
7.6
Total noncurrent assets
41,889
47.4
44,299
48.1
42,132
47.6
Total assets
88,442
100.0
92,126
100.0
88,449
100.0
3
Consolidated Balance Sheets
Nihon Dempa Kogyo Co., Ltd.
October 26, 2007
(Millions of Yen, Figures less than a million yen are omitted)
September 30,
Composition
September 30,
Composition
March 31,
Composition
2006
%
2007
%
2007
%
LIABILITIES
Current liabilities:
Notes and accounts payable-trade
6,110
7,278
6,534
Short-term loans
1,429
-
600
Current portion of long-term loans
3,318
2,306
3,175
Accounts payable-other
2,350
3,530
1,222
Income taxes payable
1,269
1,647
2,399
Accrued expenses
3,168
3,779
3,403
42
60
120
Reserve for directors’ bonuses
Notes payable for property, plant and equipment
Others
Total current liabilities
1,321
196
430
419
275
234
19,430
22.0
19,074
20.7
18,121
20.5
Noncurrent liabilities:
Convertible bonds
11,324
11,258
11,291
Long-term loans
8,470
6,164
6,991
Employee benefit obligations
Retirement allowance for directors and
statutory corporate auditors
Deferred tax liabilities
2,182
2,187
2,188
569
582
588
Others
2
0
0
8
8
8
Total noncurrent liabilities
22,558
25.5
20,201
21.9
21,069
23.8
Total liabilities
41,988
47.5
39,275
42.6
39,190
44.3
NET ASSETS
Owners' equity:
Share capital
10,649
10,649
10,649
Capital surplus
10,634
10,817
10,634
Retained earnings
24,717
30,493
27,028
Treasury stock
(1,291)
(1,114)
(1,298)
Total owners' equity
44,710
50.6
50,845
55.2
47,013
53.2
Fair value reserve,
translation reserve and others:
Fair value reserve for
available-for-sale investment securities
Foreign currency translation reserve
Total fair value reserve,
translation reserve and others
Minority interests:
698
558
757
958
1,332
1,389
1,656
1.8
1,891
2.1
2,147
2.4
87
0.1
113
0.1
97
0.1
Total net assets
46,454
52.5
52,850
57.4
49,259
55.7
Total liabilities and net assets
88,442
100.0
92,126
100.0
88,449
100.0
4
Consolidated Statements of Income
Nihon Dempa Kogyo Co., Ltd.
October 26, 2007
(Millions of Yen, Figures less than a million yen are omitted)
Net sales
Cost of sales
Gross profit
Selling, general and administrative expenses
Operating income
Non-operating income
Interest income
Dividends income
Rental income
Other income
Non-operating expenses
Interest expenses
Bond issue expenses
Foreign exchange losses
Other expenses
Ordinary income
Extraordinary income
Gain on sales of property,
plant and equipment ("PPE")
Reversal of impairment for PPE
Gain on sales of investment securities
Reversal of allowances for
doubtful receivables
Extraordinary expenses
Loss on disposal of PPE
Loss on impairment of PPE
and intangible assets
Loss on sales of investment securities
Loss on impairment of
investment securities
Loss on impairment of
golf club memberships
Income before income taxes
Current tax expenses
Deferred tax expenses / (benefits)
Minority interests
Net income
September 30,
Composition
September 30,
Composition
March 31,
Composition
2006
%
2007
%
2007
%
34,900
25,157
9,743
5,533
4,209
145
48
11
9
76
712
89
316
241
65
3,642
45
100.0
72.1
27.9
15.8
12.1
0.4
2.1
10.4
0.2
39,550
28,124
11,425
5,729
5,696
238
114
29
3
91
270
59
141
69
5,664
31
100.0
71.1
28.9
14.5
14.4
0.6
0.7
14.3
0.1
73,307
52,487
20,819
11,392
9,427
313
144
21
18
130
1,189
157
317
520
194
8,551
146
8
18
11
-
-
25
5
37
12
104
623
115
1.8
240
65
0.6
1,829
166
508
93
1,662
-
35
-
-
42
-
-
2
-
3,064
1,307
(354)
3
2,107
8.8
3.8
(1.0)
0.0
6.0
5
5,454
1,709
(235)
17
3,962
13.8
4.3
(0.6)
0.1
10.0
6,869
3,067
(922)
7
4,716
100.0
71.6
28.4
15.5
12.9
0.4
1.6
11.7
0.2
2.5
9.4
4.2
(1.2)
0.0
6.4
Consolidated Statements of Changes in Net Assets
Nihon Dempa Kogyo Co., Ltd.
October 26, 2007
(Millions of Yen, Figures less than a million yen are omitted)
Owners’ equity
Share
capital
Capital
surplus
Total
owners’
equity
Treasury
stock,
at cost
Retained
earnings
10,649
10,634
27,028
(1,298)
47,013
Dividends declared
-
-
(497)
-
(497)
Net income
-
-
3,962
-
3,962
Balance at March 31, 2007
Changes during the period:
Purchase of treasury stock
-
-
-
(17)
(17)
-
182
-
201
384
-
-
-
-
-
-
182
3,464
183
3,831
10,649
10,817
30,493
(1,114)
50,845
Disposal of treasury stock
Net changes other than owners' equity
during the period
Total changes during the period
Balance at September 30, 2007
Fair value reserve, translation
reserve and others
Fair value
Total Fair
reserve for Foreign value
reserve,
available- currency
translation
for-sale translation reserve
and
investment reserve
others
securities
Minority
interests
Total net
assets
757
1,389
2,147
97
49,259
Dividends declared
-
-
-
-
(497)
Net income
-
-
-
-
3,962
Purchase of treasury stock
-
-
-
-
(17)
-
-
-
-
384
(199)
(56)
(255)
15
(240)
Balance at March 31, 2007
Changes during the period:
Disposal of treasury stock
Net changes other than owners’ equity
during the period
Total changes during the period
Balance at September 30, 2007
(199)
(56)
(255)
15
3,591
558
1,332
1,891
113
52,850
6
Consolidated Statements of Cash Flows
Nihon Dempa Kogyo Co., Ltd.
October 26, 2007
(Millions of Yen, Figures less than a million yen are omitted)
September 30,
September 30,
March 31,
2006
2007
2007
Operating activities:
Income before income taxes
3,064
5,454
6,869
Depreciation and amortisation
3,458
3,541
7,462
115
65
166
508
93
1,662
Loss on disposal of property, plant and equipment
Loss on impairment of property, plant, equipment
and intangible assets
Gain on sales of property, plant and equipment
Interest and dividends income
Interest expenses
(8)
(18)
(11)
(59)
(144)
(165)
89
59
157
316
-
317
(1,593)
(1,929)
(1,358)
(Increase)/decrease in inventories
(Increase)/decrease in consumption tax/
value-added tax receivables
Increase in trade payables
(86)
(287)
248
554
566
(174)
26
814
277
Other, net
455
190
419
6,841
8,406
15,871
54
108
125
(102)
(58)
(166)
Bond issue expenses
Increase in trade receivables
Sub-total
Interest and cash dividends received
Interest paid
Income taxes paid, net
Net cash provided by operating activities
(453)
(2,380)
(1,152)
6,338
6,075
14,677
(4,082)
(4,088)
(10,355)
Investing activities:
Purchase of property, plant and equipment
Proceeds from sales of property, plant and equipment
Purchase of intangible assets
Purchase of investment securities
Proceeds from sales of investment securities
9
15
13
(89)
(66)
(175)
(404)
(4)
(507)
-
269
10
(14)
(523)
(487)
(4,582)
(4,398)
(11,501)
(5,243)
(600)
(6,072)
Proceeds from long-term loans
1,000
-
1,000
Repayment of long-term loans
(1,859)
(1,696)
(3,481)
Proceeds from issuing convertible bonds
11,042
-
11,012
(159)
(493)
(457)
(3)
(17)
(10)
-
384
-
4,776
(2,423)
1,991
107
(7)
279
Other, net
Net cash used in investing activities
Financing activities:
Net decrease in short-term loans
Cash dividends paid
Purchase of treasury stock
Proceeds from exercise of stock option
Net cash (used in)/provided by financing activities
Net effect of currency translation on cash and cash equivalents
6,640
(754)
5,447
Cash and cash equivalents at beginning of year
10,079
15,526
10,079
Cash and cash equivalents at end of period
16,719
14,772
15,526
Net increase in cash and cash equivalents
7