October 27, 2006
Nihon Dempa Kogyo Co., Ltd.
Half-Year Consolidated Financial Results
Tokyo, October 27, 2006 – Nihon Dempa Kogyo Co., Ltd. today announced its consolidated business results for
the six months ended September 30, 2006, the half-year of the year ending March 31, 2007. 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, 2006
(April 1, 2006 - September 30, 2006)
(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
2005
Change
2006
Net sales
34,900
30,506
14.4%
63,642
Operating income
4,209
2,094
101.0%
5,270
Ordinary income
3,642
2,057
77.0%
5,183
Net income
2,107
1,558
35.2%
3,257
Earnings per share (Yen)
105.78
78.23
163.52
Earnings per share, diluted (Yen)
103.89
78.23
163.26
Note: Weighted-average number of shares outstanding during the period: 19,921,254 shares for the six months
ended September 30, 2006; 19,924,552 shares for the six months ended September 30, 2005; 19,923,519 shares
for the year ended March 31, 2006.
September 30,
March 31,
(2) Financial Position
2006
2005
2006
Total assets
88,442
77,176
78,054
Net Assets
46,454
41,747
44,253
Owners' equity to total assets
52.4%
54.1%
56.7%
Owners' equity per share (Yen)
2,327.57
2,095.35
2,221.40
Note: Number of shares outstanding: 19,920,729 shares as of September 30, 2006; 19,923,799 shares as of
September 30, 2005; 19,921,462 shares as of March 31, 2006.
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
2005
4,538
(3,264)
(1,197)
9,513
(4) Scope of Consolidated and Application of the Equity Method
Number of consolidated subsidiaries: 16
Number of non-consolidated subsidiaries accounted for on the equity method: 0
Number of equity method affiliates: 0
(5) Change in Scope of Consolidation
Consolidated subsidiaries
(addition) 0
Equity method companies
(addition) 0
(exclusion) 0
(exclusion) 0
1
Year ended March 31,
2006
9,285
(6,177)
(2,613)
10,079
2. Forecast for the Fiscal Year Ending March 31, 2007 (April 1, 2006 - March 31, 2007)
Millions of Yen,
(1) Results of Operations
Year ending March 31, 2007
Net sales
71,000
Operating income
8,400
Ordinary income
8,000
Net income
4,600
Earnings per share (Yen)
230.92
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 27, 2006
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
%
2005
%
2006
%
ASSETS
Current assets:
Cash on hand and bank deposits
16,319
9,513
10,079
Trade receivables
18,613
16,263
16,822
400
-
-
Inventories
8,758
7,826
8,623
Deferred tax assets
1,346
1,477
1,261
Others
1,208
1,387
1,997
(91)
(40)
(110)
Short-term investments
Allowances for doubtful receivables
Total current assets
46,553
52.6
36,428
47.2
38,674
49.5
Noncurrent assets:
Property, plant and equipment, net
Buildings and structures
8,627
8,491
8,528
Machinery and vehicles
19,117
19,107
18,005
Land
3,165
3,172
3,164
Construction in progress
2,147
1,185
871
Others
1,139
1,171
1,141
Total property, plant and equipment, net
34,197
38.7
33,127
42.9
31,711
40.6
Intangible assets
Goodwill
223
670
447
Patents
633
952
842
Others
1,122
1,245
1,180
Total intangible assets
1,979
2.2
2,868
3.7
2,470
3.2
Investments and other assets
Investment securities
2,477
2,112
2,335
Deferred tax assets
2,070
1,438
1,717
Others
1,240
1,317
1,229
(76)
(114)
(84)
Allowances for doubtful receivables
Total Investments and other assets
5,712
6.5
4,752
6.2
5,198
6.7
Total noncurrent assets
41,889
47.4
40,748
52.8
39,379
50.5
Total assets
88,442
100.0
77,176
100.0
78,054
100.0
3
Consolidated Balance Sheets
Nihon Dempa Kogyo Co., Ltd.
October 27, 2006
(Millions of Yen, Figures less than a million yen are omitted)
September 30,
Composition
September 30,
Composition
March 31,
Composition
2006
%
2005
%
2006
%
LIABILITIES AND EQUITY
Current liabilities:
Notes and accounts payable-trade
6,110
5,508
5,928
Short-term loans
1,429
6,342
6,704
Current portion of long-term debt
3,318
4,091
3,231
Accounts payable-other
2,350
1,053
902
Income taxes payable
1,269
814
655
Accrued expenses
3,168
2,782
2,830
42
42
85
1,321
1,085
865
419
543
364
Accrued bonuses for directors
Notes payable for property, plant and equipment
Others
Total current liabilities
19,430
22.0
22,264
28.8
21,569
27.6
Noncurrent liabilities:
Convertible bonds
11,324
-
-
Long-term debt
8,470
10,411
9,417
Employee benefit obligations
Retirement allowance for directors and
statutory corporate auditors
Deferred tax liabilities
2,182
2,094
2,144
569
536
556
2
36
23
Others
8
8
8
Total noncurrent liabilities
22,558
25.5
13,087
17.0
12,149
15.6
Total liabilities
41,988
47.5
35,352
45.8
33,718
43.2
-
-
77
0.1
83
0.1
Minority interests
Shareholders' equity:
Share capital
-
10,649
10,649
Capital surplus
-
10,634
10,634
Retained earnings
Fair value reserve for
available-for-sale investment securities
Foreign currency translation reserve
-
21,230
22,769
-
486
855
-
25
632
Treasury stock, at cost
-
(1,278)
(1,288)
Total shareholders' equity
Total liabilities, minority interests and
shareholders’ equity
Net assets:
-
-
41,747
54.1
44,253
56.7
-
-
77,176
100.0
78,054
100.0
Shareholders' equity
Share capital
10,649
12.0
-
-
-
-
Capital surplus
10,634
12.0
-
-
-
-
Retained earnings
24,717
28.0
-
-
-
-
Treasury stock, at cost
(1,291)
(1.4)
-
-
-
-
Total shareholders' equity
44,710
50.6
-
-
-
-
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
-
-
958
-
-
1,656
1.8
-
-
-
-
87
0.1
-
-
-
-
Total net assets
46,454
52.5
-
-
-
-
Total liabilities and net assets
88,442
100.0
-
-
-
-
4
Consolidated Statements of Income
Nihon Dempa Kogyo Co., Ltd.
October 27, 2006
(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
Dividend income
Rental income
Other income
Non-operating expenses
Interest expense
Bond issue expenses
Foreign exchange losses
Other expenses
Ordinary income
Extraordinary income
Gain on sales of property,
plant and equipment ("PPE")
Government grants
Reversal of reserve for doubtful
accounts receivable
Extraordinary expenses
Loss on retirement of PPE
Loss on impairment of PPE
Loss on impairment of golf and
resort club memberships
Loss on retirement of inventories
Loss from devaluation of inventories
Reserve for doubtful
accounts receivable
Others
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
%
2005
%
2006
%
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
30,506
22,929
7,576
5,482
2,094
173
16
20
7
128
209
108
43
58
2,057
149
100.0
75.2
24.8
17.9
6.9
0.5
0.7
6.7
0.5
63,642
47,448
16,194
10,923
5,270
330
44
39
15
231
417
204
39
173
5,183
234
8
-
37
-
135
170
37
13
25
623
115
508
1.8
562
149
129
1.8
2,095
755
966
-
3
9
-
104
76
126
70
-
99
137
3,064
1,307
(354)
3
2,107
1,644
806
(720)
(0)
1,558
29
3,322
1,089
(1,025)
0
3,257
8.8
3.8
(1.0)
0.0
6.0
5
5.4
2.7
(2.4)
(0.0)
5.1
100.0
74.6
25.4
17.1
8.3
0.5
0.7
8.1
0.4
3.3
5.2
1.7
(1.6)
0.0
5.1
Consolidated Statements of Changes in Net Assets
Nihon Dempa Kogyo Co., Ltd.
October 27, 2006
(Millions of Yen, Figures less than a million yen are omitted)
Shareholders’ equity
Share
capital
Capital
surplus
Total shareholders’
equity
Treasury
stock,
at cost
Retained
earnings
10,649
10,634
22,769
(1,288)
42,765
Dividends declared
-
-
(159)
-
(159)
Net income
-
-
2,107
-
2,107
Balance at March 31, 2006
Changes during the period:
Purchase of treasury shares
-
-
-
(3)
(3)
-
0
-
0
0
-
-
-
-
-
-
0
1,947
(3)
1,944
10,649
10,634
24,717
(1,291)
44,710
Disposal of treasury shares
Net changes other than shareholder's equity
during the period
Total changes during the period
Balance at September 30, 2006
Fair value reserve, translation
reserve and others
Fair value
Total Fair
reserve for Foreign
value
available- currency
reserve,
for-sale translation translation
investment reserve reserve and
securities
others
Stock
acquisition
right
Minority
interests
Total net
assets
855
632
1,488
-
83
44,336
Dividends declared
-
-
-
-
-
(159)
Net income
-
-
-
-
-
2,107
Purchase of treasury shares
-
-
-
-
-
(3)
-
-
-
-
-
0
(157)
325
168
-
4
172
(157)
325
168
-
4
2,117
698
958
1,656
-
87
46,454
Balance at March 31, 2006
Changes during the period:
Disposal of treasury shares
Net changes other than shareholder's equity
during the period
Total changes during the period
Balance at September 30, 2006
6
Consolidated Statements of Cash Flows
Nihon Dempa Kogyo Co., Ltd.
October 27, 2006
(Millions of Yen, Figures less than a million yen are omitted)
September 30,
September 30,
March 31,
2006
2005
2006
Operating activities:
Income before income taxes
3,064
1,644
3,322
Depreciation and amortisation
3,458
3,319
7,054
Loss on disposal of property, plant and equipment
115
149
755
Loss on impairment of property, plant and equipment
508
129
966
Interest and dividend income
(59)
(36)
(83)
89
108
204
Interest expense
Bond issue expenses
316
-
-
(Increase)/decrease in trade receivables
(1,593)
500
(248)
(Increase)/decrease in inventories
(Increase)/decrease in consumption tax/
value-added tax receivables
Increase/(decrease) in trade payables
(86)
(354)
(996)
554
456
(256)
26
(134)
8
Other, net
446
34
572
6,841
5,816
11,298
Sub-total
Interest and cash dividends received
54
37
83
Interest paid
(102)
(109)
(200)
Income taxes paid, net
(453)
(1,205)
(1,896)
6,338
4,538
9,285
(4,082)
(2,755)
(6,056)
9
0
121
Net cash provided by operating activities
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
Other, net
Net cash used in investing activities
(89)
(201)
(289)
(404)
(304)
(408)
-
-
500
(14)
(2)
(44)
(4,582)
(3,264)
(6,177)
Financing activities:
Net decrease in short-term loans
(5,243)
(1,729)
(1,119)
Proceeds from long-term debt
1,000
3,000
3,600
Repayment of long-term debt
(1,859)
(2,304)
(4,759)
Proceeds from issuing convertible bonds
11,042
-
-
(159)
(159)
(319)
(3)
(3)
(13)
4,776
(1,197)
(2,613)
107
165
313
Cash dividends paid
Purchase of treasury shares
Net cash (used in)/provided by financing activities
Net effect of currency translation on cash and cash equivalents
6,640
242
808
Cash and cash equivalents at beginning of year
10,079
9,270
9,270
Cash and cash equivalents at end of period
16,719
9,513
10,079
Net increase in cash and cash equivalents
7