For the Fiscal Year Ended March 31, 2022
2-16-46Minami-Kamata,Ohta-ku, Tokyo
Established in 1896 as Japan's first manufacturer of measuring instruments, TOKYO KEIKI INC. had its start as a producer of pressure gauges. For 126 years, we have embraced the themes of world-class technology, quality that responds to the expectations of our customers and creation of new value in the development and manufacture of numerous new products that are reflective of the times and dramatic advances in technology.
TOKYO KEIKI INC. is comprised of the Marine Systems, Measurement Systems, Fluid Power & Control Systems, Inspection Systems, Electronics Systems, and Communication & Control Systems Companies. The products and services provided to customers by these six companies contribute to the enhancement of our society.
Navigational safety and energy savings of ships have been greatly improved by technologies such as autopilot, radar, electronic chart display & information systems, and other products which have been provided to the large and diverse maritime market by the Marine Systems Company. The Measurement Systems Company's highly regarded and proven ultrasonic flowmeter and its radar level gauge products are vital components in water and wastewater management systems and river monitoring disaster prevention systems. Addressing the themes of energy savings, environmental compatibility, and computerization, the Fluid Power & Control Systems Company provides a wide variety of hydraulic products for injection molding machinery and machine tools. The remote control of construction equipment enabled by the wireless control systems and other products manufactured by the Company factors greatly in the realization of unmanned construction and labor savings. Inspection equipment provided by the Inspection Systems Company is utilized by the printing industry to detect imperfections in printed material as well as problems in the printing process, issues that are critical for rigorous quality control. The Communication & Control Systems Company supplies microwave devices which are core components in wireless information equipment and power electronics. The Company also provides helicopter broadcasting systems that optimize television relay circuits and inertial sensors that are essential for attitude control of autonomous mobile robots and other applications. Advanced aerospace electronic equipment for the defense market and marine traffic systems for the Japan Coast Guard are among the products offered by the Electronics Systems Company.
I. Summary of Selected Financial Data (Consolidated)
Net cash provided by (used
Net cash provided by (used
Net cash provided by (used
Cash and cash equivalents at
Notes: 1. Diluted earnings per share is not described since no dilutive shares exist.
FY2021 Operating Results and FY2022 Forecast
I would like to extend my sincerest appreciation for your patronage of TOKYO KEIKI.
In fiscal 2021 (fiscal year ended March 31, 2022), there were signs of recovery in the global economy amid the rollout of the novel coronavirus disease (COVID-19) vaccines, progress in economic activity due to the easing of restrictions and the implementation of monetary and fiscal policies in each country. However, disruptions in the supply chain continued due to factors such as the prolonged shortages of components such as semiconductors and the higher price of crude oil and raw materials. The outlook also remains uncertain due to the deteriorating situation in Ukraine, increased inflation and hikes in policy interest rates across the world, as well as China's protracted zero COVID policy.
There were signs of economic recovery in Japan with the decline in the number of COVID-19 cases. However, uncertainty persisted due to factors such as a resurgence
in infections with the emergence of new strains, protracted turmoil in the supply chain and the depreciation of the yen.
Under these economic conditions, the Group has taken initiatives based on three basic policies of the Medium- term Business Plan in our TOKYO KEIKI Vision 2030, released in June 2021: "Expanding business domains," "Promoting globalization," and "Continuously strengthening existing business."
Regarding "Expanding business domains," we made progress in the Defense & Communications Equipment Business with the commercial production of microwave amplifiers that are installed in domestically produced small Synthetic Aperture Radar (SAR) satellites. These microwave amplifiers are developed from microwave application technology, which is one of our core technologies.
Regarding "Promoting globalization," in the Defense & Communications Equipment Business, we undertook its first delivery and installation of the high-resolution semiconductor radar for coastal surveillance "SeaKu" in Europe, which was developed for overseas markets. Furthermore, we promoted overseas sales, including decisions to adopt the river radar for river surveillance for Europe.
Regarding "Continuously strengthening existing business," in the Marine Systems Business, we completed the development of the new model Electronic Chart Display and Information Systems (ECDIS) "EC-9000," which is to increase sales and market share of the existing vessels market. The actual system was displayed at the International Maritime Exhibition and Conference "Sea Japan 2022" held in April 2022 and was well-received by a large number of attendees. It was also featured in multiple media.
As a result of the above, with regard to the Group's consolidated earnings for fiscal 2021, net sales fell by 1.4% compared with the previous fiscal year to ¥41,510 million. This was mainly due to the large decline in the Defense & Communications Equipment Business, which had suffered a dip in defense business projects up until
fiscal 2021, despite increased revenue in the Marine Systems Business, Hydraulics and Pneumatics Business, Fluid Measurement Equipment Business, and Other Businesses. On the other hand, the improvement in the cost of sales ratio in our major businesses resulted in substantial improvements in all profit items, with a 30.8% increase in operating profit from the previous fiscal year to ¥1,640 million, a 32.1% increase in ordinary profit to ¥1,930 million, and a 58.1% increase in profit attributable to owners of parent to ¥1,490 million.
The operating profit margin rose 0.9 percentage points compared with the previous fiscal year to 3.9% and the return on equity (ROE) rose 1.5 percentage points compared with the previous fiscal year to 4.6%. We are aiming for further increases.
In fiscal 2022 (fiscal year ending March 31, 2023), amid the persistent concerns of a resurgence of COVID-19, we expect to continue to face highly uncertain conditions including the deteriorating situation in Ukraine, disruptions to the supply chain and higher energy prices, higher inflation, further depreciation of the yen, and China's protracted zero COVID policy.
Amid this business environment, our outlook for fiscal 2022 anticipates increased revenue and profits. We forecast net sales will increase by 9.4% to ¥45,400 million, operating profit will increase by 13.2% to ¥1,850 million, ordinary profit will increase by 9.0% to ¥2,100 million, and profit attributable to owners of parent will increase by 3.8% to ¥1,550 million. This is attributed to firm demand for equipment for new ships in the Marine Systems Business, the anticipation of ongoing recovery in demand in each market in the Hydraulics and Pneumatics Business, the anticipation of ongoing favorable demand in the Fluid Measurement Equipment Business, the anticipation of increased sales through the supply of radar warning systems for fighters and electronic support measures for patrol helicopters in the defense business under the Defense & Communications Equipment Business, and the anticipation of increased sales through the supply of ultrasonic railway inspection cars in the railway maintenance business under Other Businesses.
The currently anticipated impact on our business performance from factors including the recent difficulties in obtaining materials and the higher price of raw materials has been factored in to a certain extent. We will continue to take measures necessary to minimize the impact on our business performance including early procurement of parts and passing on of price increases. If any matter to be disclosed arises, such information will be promptly announced.
For the fiscal 2021 dividend we distributed a special commemorative dividend of ¥5 for the 125th anniversary in addition to the ordinary dividend of ¥25 per share for a total of ¥30 per share. Furthermore, for fiscal 2022, we intend to increase the ordinary dividend by ¥5 to ¥30 per share.
On behalf of the senior management and workforce at TOKYO KEIKI, I would like to close by asking all stakeholders for your ongoing and further support and cooperation.
Representative Director, President & CEO
This is an excerpt of the original content. To continue reading it, access the original document here.
Tokyo Keiki Inc. published this content on 22 July 2022 and is solely responsible for the information contained therein. Distributed by Public, unedited and unaltered, on 22 July 2022 05:13:03 UTC.