ゼンリン（9474） – [Delayed]Financial Summary for Fiscal 2022

Financial Summary for Fiscal 2022 [Japanese GAAP] [Consolidated] April 28, 2022 Stock exchange listings: Tokyo and Fukuoka Name of listed company: ZENRIN Co., Ltd. Securities code: Representative: Contact: 9474 [Title] President and CEO [Title] Executive Officer and Head of URL: https://www.zenrin.co.jp/ Corporate Management Division [Name] Zenshi Takayama [Name] Yumiko Toshima TEL: +81-93-882-9050 Scheduled date of holding of ordinary general meeting of shareholders: Scheduled date of submission of annual securities report: Scheduled date of commencement of dividend payouts: Preparation of supplementary explanatory materials on financial results: Yes Holding of briefing session on financial results: June 17, 2022 June 20, 2022 June 20, 2022 Yes (For institutional investors and analysts) [Amounts are rounded down to the nearest million yen] 1. Consolidated Results of Operations in Fiscal 2022 ZENRIN’s fiscal 2022 is the period from April 1, 2021 to March 31, 2022. (1) Consolidated Business Performance Fiscal 2022 Fiscal 2021 [Note] Comprehensive income million yen 59,053 57,225 Net sales Operating income [% figures represent the increase (decrease) compared to the previous fiscal year] Profit attributable to owners of parent % － (52.6) million yen 2,670 1,436 million yen 3,044 1,683 million yen 3,658 1,248 % － (56.5) % － (54.6) % － (4.3) Ordinary income Fiscal 2022: 9,418 million yen [－%] Fiscal 2021: 2,294million yen [ 123.1%] Fiscal 2022 Fiscal 2021 Earnings per share Diluted earnings per share Return on equity yen yen 66.94 22.54 63.16 20.91 % 8.1 3.0 Ratio of ordinary income to total assets % 4.0 2.4 Ratio of operating income to net sales % 4.5 2.5 [Reference] Share of profit (loss) of entities accounted for using equity method Fiscal 2022: － million yen Fiscal 2021: － million yen [Note] As the “Accounting Standard for Revenue Recognition” (ASBJ Statement No. 29, March 31, 2020), etc. have been applied from the beginning of fiscal 2022, the amounts for fiscal 2022 reflect the application of the said accounting standard, etc., and the increase (decrease) compared to the same period of the previous fiscal year is not stated. (2) Consolidated Financial Position Fiscal 2022 Fiscal 2021 Total assets million yen Net assets million yen Ratio of equity to total assets % Net assets per share yen 79,164 71,320 48,746 44,723 61.3 60.5 894.73 785.98 [Reference] Equity [Note]As the “Accounting Standard for Revenue Recognition” (ASBJ Statement No. 29, March 31, 2020), etc. have been applied from the beginning of fiscal 2022, the amounts for fiscal 2022 reflect the application of the said accounting standard, etc. Fiscal 2022: 48,500 million yen Fiscal 2021: 43,149 million yen (3) Consolidated Cash Flows Fiscal 2022 Fiscal 2021 Net cash provided by (used in) operating activities million yen Net cash provided by (used in) investing activities million yen Net cash provided by (used in) financing activities million yen Cash and cash equivalents at end of period million yen 8,201 6,351 (3,784) (5,041) (4,629) (8) 16,455 16,529 2. Dividends First quarter-end yen － － － Annual dividend Third quarter-end yen － － － Second quarter-end yen 12.50 12.50 13.50 Fiscal 2021 Fiscal 2022 Fiscal 2023 [forecast] 3. Forecast for Consolidated Results of Operations in Fiscal 2023 ZENRIN’s fiscal 2023 is the period from April 1, 2022 to March 31,2023 yen 25.00 26.00 27.00 yen 12.50 13.50 13.50 Year-end Total Total dividends Payout ratio [Consolidated] Ratio of dividends to net assets [Consolidated] million yen 1,390 1,423 % 110.9 38.8 － % 3.2 3.1 [% figures for the fiscal year represent the increase (decrease) compared to the previous fiscal year; % figures for the first 2 quarters [cumulative] represent the increase (decrease) compared to the same period of the previous fiscal year] Earnings per share Profit attributable to owners of parent Operating income Ordinary income Net sales First 2 quarters [cumulative] Fiscal year million yen 26,200 60,500 % 1.2 2.4 Million yen (400) 3,000 % － 12.3 Million yen (300) 3,200 % － 5.1 Million yen 0 2,600 % yen － (28.9) 0.00 47.96 ZENRIN Co., Ltd. (9474) Financial Summary for Fiscal 2022 ATTACHMENT 1. Analysis of Business Performance (1) Overview of Business Performance for Fiscal 2022 1. Business Performance for Fiscal 2022 In fiscal 2022 (from April 1, 2021 to March 31, 2022), the effects of COVID-19 infection have been prolonged, and priority measures such as declarations of state of emergency and semi-emergency have been issued, and economic activities have continued to be restricted in the Japanese economy. In such an environment, although net sales partially decreased mainly as a result of the change to the method of recognizing revenue as a net amount as an agent with the application of the “Accounting Standard for Revenue Recognition” (ASBJ Statement No. 29, March 31, 2020), etc., sales of vehicles equipped with our data for in-car navigation systems were strong and the automotive-related business performed well, while sales of contracted services for corporations using residential map data and GIS packages for stock-type services remained firm. Additionally, sales related to marketing solutions business increased against the backdrop of a rebound in the demand for advertising and other factors. In terms of profit and loss, although personnel expenses increased, operating income increased due to the increase in sales. As a result, the ZENRIN Group reported business performance in fiscal 2022 as follows: net sales of 59,053 million yen ( 57,225 million yen in the same period of the previous year), operating income of 2,670 million yen ( 1,436 million yen in the same period of the previous year), ordinary income of 3,044 million yen (1,683 million yen in the same period of the previous year) and profit attributable to owners of parent was 3,658 million yen (1,248 million yen in the same period of the previous year) due to the recording of gain on sales of investment securities as extraordinary income with the sale of shares in C.E. INFO SYSTEMS LIMITED shares. It should be noted that the “Accounting Standard for Revenue Recognition” (ASBJ Statement No. 29, March 31, 2020), etc. have been applied from the beginning of fiscal 2022. Thus, the Explanation of Business Performance for fiscal 2022 does not include the increase (decrease) amounts and rates (%) compared to the same period of the previous fiscal year. Details are as described in “3. (5) Notes to Consolidated Financial Statements (Changes in Accounting Policies).” Furthermore, from fiscal 2022, information by business segment is omitted because the ZENRIN Group’s reportable segments have been aggregated to a single segment. 2. Forecast for Fiscal 2023 With regard to COVID-19 infection, it is expected that economic and social activities will be normalized by efforts to control the infection, but in addition to the global unrest caused by Russia’s invasion of Ukraine, there are risks such as semiconductor shortages and soaring raw material prices, therefore, we predict that the Japanese economy will remain uncertain in the future. Under these circumstances, the ZENRIN Group have decided on a rolling plan for the 2nd Stage (from fiscal 2023 to fiscal 2025) of the medium- to long-term business plan “ZENRIN GROWTH PLAN 2025 (hereinafter referred to as ZGP25)” that is currently underway, with the theme of “embodying business models” based on the results of the 1st Stage (from fiscal 2020 to fiscal 2022). The policy of the ZENRIN Group is sustainable management, which aims for sustainable corporate growth by supporting the resolution of social issues through the provision of location information. In the 2nd Stage, we aim to recover the business performance that was sluggish due to the coronavirus pandemic as soon as possible in order to leap to the next growth stage. Furthermore, in order to solve social issues that have become apparent, we will optimize location and distribution information, and work on innovation of location information to create new value. Please refer to “Rolling Plan of Medium- to Long-Term Management Plan ‘ZENRIN GROWTH PLAN 2025’”, which is announced separately today, for the efforts to achieve the goals of ZGP25 2nd Stage and the performance targets. Based on the above, the forecast of consolidated results for fiscal 2023 expects net sales of 60,500 million yen, operating income of 3,000 million yen, ordinary income of 3,200 million yen, and profit attributable to owners of parent of 2,600 million yen. ZENRIN Co., Ltd. (9474) Financial Summary for Fiscal 2022 (2) Overview of Financial Position for Fiscal 2022 1. Overview of Fiscal 2022 Total assets at the end of fiscal 2022 amounted to 79,164 million yen (increased 7,843 million yen, or up 11.0%, compared to the end of the previous fiscal year). This was mainly attributable to an increase in investment securities resulting from the fair market value of shares of C.E. INFO SYSTEMS LIMITED following its listing on the Bombay Stock Exchange and the National Stock Exchange of India. Liabilities amounted to 30,417 million yen (increased 3,820 million yen, or up 14.4%, compared to the end of the previous fiscal year). This was mainly attributable to an increase in accrued expenses due to the recording of accrued bonuses, etc., and an increase in advances received due to the opening adjustment accompanying the application of the “Accounting Standard for Revenue Recognition” (ASBJ Statement No. 29, March 31, 2020). Net assets amounted to 48,746 million yen (increased 4,022 million yen, or up 9.0%, compared to the end of the previous fiscal year), despite a decrease in non-controlling interests due to the additional acquisition of shares of consolidated subsidiaries. This was mainly due to an increase in valuation difference on available-for-sale securities resulting from the fair market value of shares of C.E. INFO SYSTEMS LIMITED following its listing on the Bombay Stock Exchange and the National Stock Exchange of India. As a result, the ratio of equity to total assets at the end of fiscal 2022 was 61.3% (up 0.8 points compared to at the end of fiscal 2021). The following outlines the status of cash flows in fiscal 2022. Cash and cash equivalents at the end of fiscal 2022 stood at 16,455 million yen (decreased 74 million yen, or down 0.5%, compared to at the end of fiscal 2021). Cash Flows from Operating Activities Net cash provided by operating activities stood at 8,201 million yen (increased 1,850 million yen compared to the previous fiscal year). This was attributable to profit before income taxes in the amount of 4,961 million yen, gain on sale of investment securities in the amount of 2,016 million yen and income taxes paid in the amount of 716 million yen and other factors of decrease, being offset by depreciation and amortization in the amount of 4,969 million yen, an increase in accrued expenses in the amounts of 1,052 million yen, and other factors of increase. Cash Flows from Investing Activities Net cash used in investing activities stood at 3,784 million yen (decreased 1,257 million yen compared to the previous fiscal year). This was attributable to proceeds from sale of investment securities in the amounts of 2,097 million yen, proceeds from sale of shares of subsidiaries and associates in the amounts of 686 million yen and other factors of increase, being offset by purchase of property, plant and equipment and intangible assets in the amounts of 5,608 million yen, purchase of investment securities in the amounts of 656 million yen and other factors of decrease. Cash Flows from Financing Activities Net cash used in financing activities stood at 4,629 million yen (increased 4,620 million yen compared to the previous fiscal year) , mainly due to purchase of shares of subsidiaries not resulting in change in scope of consolidation in the amount of 1,768 million yen, cash dividends paid in the amount of 1,376 million yen, purchase of treasury shares in the amount of 769 million yen, and repayments of long-term borrowings in the amount of 505 million yen. ZENRIN Co., Ltd. (9474) Financial Summary for Fiscal 2022 2. Changes in Cash Flow Indicators Ratio of equity to total assets [%] Ratio of equity to total assets [%] (market value basis) Ratio of interest-bearing liabilities to operating cash flows [years] Interest coverage ratio [times] Fiscal 2018 54.9 165.5 Fiscal 2019 56.7 183.2 1.0 1.2 Fiscal 2020 Fiscal 2021 Fiscal 2022 57.1 79.4 1.3 60.5 102.0 1.7 61.3 68.3 1.2 939.4 [Notes] Each indicator is calculated in accordance with the following formulas, using consolidated 337.3 425.5 513.0 382.6 financial figures. • Ratio of equity to total assets: Equity / Total assets • Ratio of equity to total assets (market value basis): Market capitalization / Total assets *Market capitalization is calculated by multiplying the number of shares issued and outstanding at the end of the fiscal year (excluding treasury shares) by the closing price per share at the end of the fiscal year. • Ratio of interest-bearing liabilities to operating cash flows: Interest-bearing liabilities / Operating cash flows *Operating cash flows are the net cash provided by (used in) operating activities recorded on consolidated statement of cash flows. *Interest-bearing liabilities include all liabilities recorded on consolidated balance sheets on which interest is paid. • Interest coverage ratio: Operating cash flows / Interest paid *Interest paid is the interest expenses paid recorded on consolidated statement of cash flows. (3) Basic Policy on Distribution of Income, and Payment of Dividends in Fiscal 2022 and 2023 Positioning the returning of income to shareholders as a top priority, ZENRIN adopts a basic policy of realizing stable, uninterrupted payments of dividends derived from income growth based on the medium- to long-term business plan on a consolidated basis. Under this policy, ZENRIN will aim for a dividend equity (DOE) [Note] on a consolidated basis of 3% or higher while maintaining dividends at the current level. In addition, by continuing to consider purchasing treasury shares and other undertakings with the aim of ensuring an agile capital policy and enhancing capital efficiency, ZENRIN will return income to shareholders in accordance with the level of income on a consolidated basis while taking into account the maintaining of an adequate amount of internal reserves. The internal reserves will be used for capital investment, research and development investment and other expenditures that are indispensable for business development in the future in order to keep pace with the rapid market changes. Based on the policy above, ZENRIN plans to increase the year-end dividend for fiscal 2022 by 1 yen to 13.50 yen per share. As a result, including the interim dividend of 12.50 yen per share, which has already been implemented, the annual dividend is expected to be 26 yen per share. Please note that this matter will be decided by resolution at ZENRIN’s 62nd ordinary general meeting of shareholders that is scheduled to be held on June 17, 2022 ZENRIN expects 27 yen as the annual dividend per share for the next fiscal year, an increase by 1 yen from fiscal 2022, with 13.50 yen as both the interim dividend per share and year-end dividend per share. [Note] Dividend on equity on a consolidated basis (DOE) = Total amount of dividends / Shareholders’ equity Shareholders’ equity is the amount arrived at when the amount of treasury shares is subtracted from the sum total of common stock, capital surplus and retained earnings. 2. Basic approach to the selection of accounting standards As a basic policy, the ZENRIN Group will continue to prepare its consolidated financial statements under the Japanese standards, in consideration of the comparability of its consolidated financial statements between periods and corporations. Meanwhile, we intend to address the future application of IFRS appropriately upon taking into careful consideration various circumstances both in Japan and abroad surrounding the ZENRIN Group. ZENRIN Co., Ltd. (9474) Financial Summary for Fiscal 2022 [Unit: million yen] Fiscal 2021 Fiscal 2022 As of March 31, 2021 As of March 31, 2022 3. Consolidated Financial Statements (1) Consolidated Balance Sheet Assets Current assets Cash and deposits Notes and accounts receivable – trade Notes receivable – trade Electronically recorded monetary claims – operating Accounts receivable – trade Contract assets Securities Merchandise and finished goods Work in process Raw materials and supplies Other Allowance for doubtful accounts Total current assets Non-current assets Property, plant and equipment Buildings and structures, net Machinery, equipment and vehicles, net Land Leased assets, net Construction in progress Other, net Total property, plant and equipment Intangible assets Goodwill Software Leased assets Other Total intangible assets Investments and other assets Investment securities Long-term loans receivable Net defined benefit asset Deferred tax assets Other Allowance for doubtful accounts Total investments and other assets Total non-current assets Total assets 16,853 12,675 － 90 － － 5 992 426 78 1,564 (5) 32,682 4,791 86 5,708 1,618 84 753 13,042 395 10,332 34 3,168 13,931 4,144 3 4,068 1,613 1,956 (123) 11,663 38,637 71,320 16,857 － 12,277 45 106 269 5 962 272 109 1,363 (4) 32,267 4,488 70 5,533 1,424 923 754 13,194 278 9,958 24 3,846 14,108 12,339 2 4,158 1,047 2,149 (105) 19,593 46,896 79,164 Liabilities Current liabilities Accounts payable – trade Short-term loans payable Current portion of bonds payable Lease obligations Accrued expenses Income taxes payable Advances received Provision for directors’ bonuses Provision for sales returns Asset retirement obligations Other Total current liabilities Non-current liabilities Bonds payable Long-term loans payable Lease obligations Deferred tax liabilities Provision for directors’ retirement benefits Provision for management board benefit trust Net defined benefit liability Asset retirement obligations Other Total non-current liabilities Total liabilities Net assets Shareholders’ equity Capital stock Capital surplus Retained earnings Treasury shares Total shareholders’ equity Accumulated other comprehensive income Valuation difference on available-for-sale securities Foreign currency translation adjustment Remeasurements of defined benefit plans Total accumulated other comprehensive income Non-controlling interests Total net assets Total liabilities and net assets ZENRIN Co., Ltd. (9474) Financial Summary for Fiscal 2022 [Unit: million yen] Fiscal 2021 Fiscal 2022 As of March 31,2021 As of March 31,2022 3,401 1,885 － 308 3,659 447 4,798 41 6 － 2,140 16,688 8,095 572 461 189 128 52 306 73 28 9,907 26,596 6,557 12,925 25,299 (3,311) 41,471 661 46 969 1,677 1,574 44,723 71,320 3,153 2,066 8,047 225 4,708 1,153 6,662 124 － 10 2,184 28,337 － 18 357 1,145 128 50 281 67 28 2,079 30,417 6,557 12,484 26,084 (4,062) 41,064 6,306 155 973 7,435 246 48,746 79,164 (2) Consolidated Statement of Income and Consolidated Statement of Comprehensive Income ZENRIN Co., Ltd. (9474) Financial Summary for Fiscal 2022 Consolidated Statement of Income Net sales Cost of sales Gross profit Selling, general and administrative expenses Personnel expenses Provision for directors’ bonuses Retirement benefit expenses Other Total selling, general and administrative expenses Operating profit Non-operating income Interest income Dividend income Rental income from real estate Subsidy income Compensation income Interest income on securities Other Total non-operating income Non-operating expenses Interest expenses Foreign exchange losses Non-deductible consumption taxes Depreciation of inactive non-current assets Other Total non-operating expenses Ordinary profit Extraordinary income Gain on sales of non-current assets Gain on sales of investment securities Gain on sale of shares of subsidiaries and associates Total extraordinary income Extraordinary losses Loss on sales and retirement of non-current assets Impairment loss Loss on valuation of investment securities Other Total extraordinary losses Profit before income taxes Income taxes – current Income taxes – deferred Total income taxes Profit Profit (loss) attributable to non-controlling interests Profit attributable to owners of parent Fiscal 2021 From: April 1, 2020 To: March 31, 2021 57,225 35,181 22,043 11,625 39 411 8,530 20,607 [Unit: million yen] Fiscal 2022 From: April 1, 2021 To: March 31, 2022 59,053 34,646 24,406 12,567 127 304 8,736 21,736 1,436 7 107 60 24 － 47 130 377 16 － 1 31 80 129 1,683 7 94 － 101 109 41 20 0 173 1,611 635 (196) 439 1,172 (76) 1,248 2,670 8 73 66 62 54 47 147 460 8 38 13 － 25 86 3,044 0 2,016 478 2,495 426 37 114 － 578 4,961 1,440 (139) 1,301 3,659 1 3,658 ZENRIN Co., Ltd. (9474) Financial Summary for Fiscal 2022 Consolidated Statement of Comprehensive Income Profit Other comprehensive income Valuation difference on available-for-sale securities Foreign currency translation adjustment Remeasurements of defined benefit plans, net of tax Total other comprehensive income Comprehensive income [Comprehensive income attributable to] Comprehensive income attributable to owners of parent Comprehensive income attributable to non-controlling interests Fiscal 2021 From: April 1,2020 To: March 31,2021 1,172 319 (24) 826 1,122 2,294 2,372 (77) [Unit: million yen] Fiscal 2022 From: April 1,2021 To: March 31,2022 3,659 5,645 108 4 5,758 9,418 9,417 1 ZENRIN Co., Ltd. (9474) Financial Summary for Fiscal 2022 (3) Consolidated Statement of Changes in Equity Fiscal 2021 (from April 1, 2020 to March 31, 2021) Capital stock Capital surplus Retained earnings Treasury shares Shareholders’ equity [Unit: million yen] Total shareholders’ equity Balance at beginning of fiscal 2021 6,557 13,624 27,796 (8,817) Restated balance 6,557 13,624 27,796 (8,817) Cumulative effects of changes in accounting policies Changes of items during period Dividends of surplus Profit attributable to owners of parent Purchase of treasury shares Disposal of treasury shares Capital increase of consolidated subsidiaries Purchase of shares of consolidated subsidiaries Change in ownership interest of parent due to transactions with non-controlling interests Net changes in items other than shareholders’ equity Balance at beginning of fiscal 2021 Cumulative effects of changes in accounting policies Restated balance Changes of items during period Dividends of surplus Profit attributable to owners of parent Purchase of treasury shares Disposal of treasury shares Capital increase of consolidated subsidiaries Purchase of shares of consolidated subsidiaries Change in ownership interest of parent due to transactions with non-controlling interests Net changes in items other than shareholders’ equity Total changes of items during period Balance at end of fiscal 2021 Total changes of items during period Balance at end of fiscal 2021 － 6,557 (698) (2,497) 12,925 25,299 5,506 (3,311) Accumulated other comprehensive income Valuation difference on available-for-sale securities Foreign currency translation adjustment Remeasurements of defined benefit plans Total accumulated other comprehensive income Non-controlling interests Total net assets 142 554 1,736 41,451 342 342 69 69 142 554 1,736 41,451 (1,358) 1,248 (552) (2,388) 7,531 (2,024) (11) (13) (121) 39,161 － 39,161 (1,358) 1,248 (2,024) 4,590 (11) (13) (121) 2,310 41,471 － (1,358) 1,248 (2,024) 4,590 (11) (13) (121) 319 319 661 (22) (22) 46 826 826 969 1,123 (161) 961 1,123 (161) 3,271 1,677 1,574 44,723 Total changes of items during period Balance at end of fiscal 2022 － 6,557 (441) 12,484 2,280 26,084 (751) (4,062) ZENRIN Co., Ltd. (9474) Financial Summary for Fiscal 2022 Fiscal 2022 (from April 1, 2021 to March 31,2022) Shareholders’ equity Capital stock Capital surplus Retained earnings Treasury shares [Unit: million yen] Total shareholders’ equity Balance at beginning of fiscal 2022 6,557 12,925 Restated balance 6,557 12,925 Cumulative effects of changes in accounting policies Changes of items during period Dividends of surplus Profit attributable to owners of parent Purchase of treasury shares Disposal of treasury shares Capital increase of consolidated subsidiaries Purchase of shares of consolidated subsidiaries Change in ownership interest of parent due to transactions with non-controlling interests Net changes in items other than shareholders’ equity Balance at beginning of fiscal 2022 Cumulative effects of changes in accounting policies Restated balance Changes of items during period Dividends of surplus Profit attributable to owners of parent Purchase of treasury shares Disposal of treasury shares Capital increase of consolidated subsidiaries Purchase of shares of consolidated subsidiaries Change in ownership interest of parent due to transactions with non-controlling interests Net changes in items other than shareholders’ equity Total changes of items during period Balance at end of fiscal 2022 (3,311) (3,311) (769) 17 (441) 46 46 108 108 155 25,299 (1,495) 23,804 (1,377) 3,658 (0) 969 969 4 4 973 41,471 (1,495) 39,976 (1,377) 3,658 (769) 17 － － (441) 1,088 41,064 (1,495) (1,377) 3,658 (769) 17 － － (441) 4,430 5,518 5,758 (1,328) 5,758 (1,328) 7,435 246 48,746 Accumulated other comprehensive income Valuation difference on available-for-sale securities Foreign currency translation adjustment Remeasurements of defined benefit plans Total accumulated other comprehensive income Non-controlling interests Total net assets 1,677 1,574 44,723 1,677 1,574 43,228 661 661 5,645 5,645 6,306 ZENRIN Co., Ltd. (9474) Financial Summary for Fiscal 2022 Fiscal 2021 From: April 1, 2020 To: March 31, 2021 [Unit: million yen] Fiscal 2022 From: April 1, 2021 To: March 31, 2022 (4) Consolidated Statement of Cash Flows Cash flows from operating activities Profit before income taxes Depreciation Impairment loss Amortization of goodwill Decrease (increase)in net defined benefit asset Increase (decrease) in net defined benefit liability Loss (gain) on valuation of investment securities Interest and dividend income Interest expenses Loss (gain) on sales and retirement of non-current assets Loss (gain) on sales of investment securities Loss (gain) on sale of shares of subsidiaries and associates Decrease (increase) in notes and accounts receivable – trade Decrease (increase) in inventories Increase (decrease) in notes and accounts payable – trade Increase (decrease) in accrued expenses Increase (decrease) in advances received Increase (decrease) in accrued consumption taxes Other Subtotal Interest and dividend income received Interest expenses paid Income taxes paid Net cash provided by (used in) operating activities Cash flows from investing activities Purchase of property, plant and equipment and intangible assets Purchase of investment securities Proceeds from sales of investment securities Proceeds from sale of shares of subsidiaries and associates Payments of leasehold and guarantee deposits Purchase of shares of subsidiaries resulting in change in scope of consolidation Other Net cash provided by (used in) investing activities Cash flows from financing activities Net increase (decrease) in short-term borrowings Repayments of long-term loans payable Repayments of lease obligations Purchase of treasury shares Cash dividends paid Dividends paid to non-controlling interests Payments from changes in ownership interests in subsidiaries that do not result in change in scope of consolidation Proceeds from share issuance to non-controlling shareholders Other Net cash provided by (used in) financing activities Effect of exchange rate change on cash and cash equivalents Net increase (decrease) in cash and cash equivalents Cash and cash equivalents at beginning of period Cash and cash equivalents at end of period 1,611 5,173 41 162 82 17 20 (114) 16 102 (93) － 1,382 97 (80) (721) 310 (13) (217) 7,779 122 (16) (1,534) 6,351 (5,029) (328) 232 － (33) (179) 296 (5,041) － (452) (511) (2,024) (1,356) (17) (328) 99 4,583 (8) (8) 1,292 15,237 16,529 4,961 4,969 37 136 (83) (24) 114 (81) 8 425 (2,016) (478) 561 181 (318) 1,052 (440) 89 (249) 8,846 80 (8) (716) 8,201 (5,608) (656) 2,097 686 (168) (97) (37) (3,784) 130 (505) (332) (769) (1,376) (2) (1,768) － (4) (4,629) 137 (74) 16,529 16,455 ZENRIN Co., Ltd. (9474) Financial Summary for Fiscal 2022 (5) Notes to Consolidated Financial Statements Notes on the Going Concern Assumption Not applicable. Changes in Accounting Policies Application of Accounting Standard for Revenue Recognition, Etc. The “Accounting Standard for Revenue Recognition” (ASBJ Statement No. 29, March 31, 2020), etc. have been applied from the beginning of fiscal 2022. The application of the Accounting Standard for Revenue Recognition, etc. is subject to the transitional treatment provided for in the proviso to paragraph 84 of the Accounting Standard for Revenue recognition. The cumulative effect of the retrospective application, assuming the new accounting policy had been applied to periods prior to the start of fiscal 2022, was added to or subtracted from the opening balance of retained earnings of fiscal 2022, and thus the new accounting policy was applied from such opening balance. However, the new accounting policy has not been retrospectively applied to contracts in which the amounts of almost all earnings are recognized in accordance with the previous treatment before the beginning of fiscal 2022 through the application of the method prescribed in paragraph 86 of the Accounting Standard for Revenue Recognition. It has thus recognized promised goods or services as revenue at the amount expected to be received upon exchange of said goods or services at the time the control of said goods or services is transferred to the customer. Major points of change in accounting method include (1) while revenue for some license transactions were usually recognized when the license was granted to the end user, revenue is now recognized for the period of time over which the performance obligation to customers is satisfied for the relevant license, (2) if the performance obligation is to arrange the provision of goods or services promised with customers through another party, revenue is recognized in net amount as an agent, and (3) regarding entrusted contracts in which performance obligation continues over a certain period of time, while revenue was recognized upon completion of the entrusted services, revenue is, as a basic rule, recognized as the satisfaction of performance obligations progresses. In addition, “notes and accounts receivable” displayed in “current assets” in the consolidated balance sheet of the previous consolidated fiscal year has been included in “notes receivable”, “accounts receivable” and “contract assets” from fiscal 2022. However, in accordance with the transitional treatment stipulated in paragraph 89-2 of the Accounting Standard for Revenue Recognition, it has not been reclassified regarding the previous consolidated fiscal year using the new presentation method. As a result, advances received increased by 2,394 million yen on the consolidated balance sheet for fiscal 2022 compared to one before the application of the Accounting Standard for Revenue Recognition, etc. In the consolidated statement of income for fiscal 2022, net sales decreased by 1,041 million yen and cost of sales decreased by 1,036 million yen, respectively, and the impact on operating income, ordinary income and profit before income taxes is minor. The impact on the consolidated statement of cash flows for fiscal 2022 is minor. Due to the cumulative impact on net assets at the beginning of fiscal 2022, the beginning balance of retained earnings on the consolidated statement of changes in equity decreased by 1,495 million yen. The impact on the information per share is described in the relevant section. Application of Accounting Standard for Fair Value Measurement, Etc. The “Accounting Standard for Fair Value Measurement” (ASBJ Statement No. 30, July 4, 2019), etc. have been applied from the beginning of fiscal 2022. The Group has decided to apply new accounting policies prospectively provided for in the Accounting Standard for Fair Value Measurement, etc. in accordance with the transitional treatment stipulated in paragraphs 19 of the Accounting Standard for Fair Value Measurement and 44-2 of the Accounting Standard for Financial Instruments” (ASBJ Statement No. 10, July 4, 2019). This will have no impact on the consolidated financial statements. ZENRIN Co., Ltd. (9474) Financial Summary for Fiscal 2022 Reportable Segment Information 1. Overview of Reportable Segments While the ZENRIN Group’s reportable segments were previously been classified into the Map Database segment and the General Printing segment, those segments have been aggregated in a single segment named “Map and Location Data Services business” from fiscal 2022. As the business environment is changing very rapidly due to the growing needs for location data, the ZENRIN Group has shifted to its business that provides services in response to customer needs by integrally managing location data and other related diverse data. In addition, considering that sales, profits, and assets in the General Printing segment have been less significant, we have determined that disclosing those two segments in aggregate as the “Map and Location Data Services business” would reflect the actual management status of the ZENRIN Group more properly, as a result of taking into account the ZENRIN Group’s business development and the process and actual conditions of decision-making on the allocation of management resources, etc. Through this change, as the ZENRIN Group’s reportable segment has been aggregated to a single segment of “Map and Location Data Services business,” the segment information for fiscal 2021 and fiscal 2022 has been omitted. 2. Basis for Calculating Reportable Segment Net Sales, Income or Loss, Assets, Liabilities and Other Account Items As the ZENRIN Group has a single segment named “Map and Location Data Services business” the segment information has been omitted. 3. Information on Reportable Segment Net Sales, Income or Loss, Assets, Liabilities and Other Account Items Fiscal 2021 (from April 1, 2020 to March 31,2021) As the ZENRIN Group has a single segment named “Map and Location Data Services business”, the segment information has been omitted. Fiscal 2022 (from April 1, 2021 to March 31,2022) As the ZENRIN Group has a single segment named “Map and Location Data Services business”, the segment information has been omitted. Per Share Information Net assets per share (yen) Net income per share (yen) Diluted earnings per share (yen) ZENRIN Co., Ltd. (9474) Financial Summary for Fiscal 2022 Fiscal 2021 From: April 1,2020 To: March 31, 2021 Fiscal 2022 From: April 1,2021 To: March 31, 2022 785.98 22.54 20.91 894.73 66.94 63.16 [Note 1] The Company’s shares held by Custody Bank of Japan, Ltd. (Trust E account) as trust assets under the Board Benefit Trust (BBT) and Employee Stock Ownership Plan (J-ESOP) are included in the number of treasury shares that are deducted from the total number of shares outstanding at the end of the fiscal year for reason of calculation of net assets per share (329 thousand shares for the previous consolidated fiscal year, 317 thousand shares for the consolidated fiscal year under review). They are also included in the number of treasury shares that are deducted from the average number of shares outstanding in the fiscal year for reason of calculation of earnings per share (335 thousand shares for the previous consolidated fiscal year, 322 thousand shares for the consolidated fiscal year under review). [Note 2] As described in “Changes in Accounting Policies”, the “Accounting Standard for Revenue Recognition” (ASBJ Statement No. 29, March 31, 2020), etc. are being applied, and ZENRIN follows the transitional handling stipulated in the proviso of paragraph 84 of the “Accounting Standards for Revenue Recognition”. As a result, net assets per share decreased by 27.65 yen in the consolidated fiscal year under review. In addition, the impact of this change on net income per share and diluted earnings per share for the consolidated fiscal year under review is minor. [Note 3] Earnings per share and diluted earnings per share are calculated under the following calculation basis Fiscal 2021 From: April 1, 2020 To: March 31, 2021 Fiscal 2022 From: April 1, 2021 To: March 31, 2022 Net Income Per Share Profit attributable to owners of parent (million yen) Amount not attributable to common stock (million yen) Profit attributable to owners of parent on common stock (million yen) Average number of common shares outstanding in the fiscal year (thousand shares) Diluted earnings per share Adjustment of profit attributable to owners of parent (million yen) Write-off in the fiscal year (after deduction of tax equivalent) (million yen) Fees (after deduction of tax equivalent) (million yen) Increase in the number of common shares (thousand shares) (thousand shares) Convertible bond-type bonds with subscription rights to shares Summary of diluted shares that were not included in the calculation of diluted earnings per share because they did not have dilutive effect. 55,415 54,651 1,248 － 1,248 (32) (33) (0) 3,658 － 3,658 (32) (33) (0) 2,759 2,761 (2,759) (2,761) － － [Note 4] Net assets per share are calculated under the following calculation basis. ZENRIN Co., Ltd. (9474) Financial Summary for Fiscal 2022 Total amount in net assets (million yen) Amount deducted from the total amount in net assets (million yen) Non-controlling interests (million yen) Net assets at the end of the fiscal year on common stock (million Fiscal 2021 As of March 31, 2021 Fiscal 2022 As of March 31, 2022 44,723 1,574 1,574 43,149 48,746 246 246 48,500 Number of common shares at the end of the fiscal year used in the calculation of net assets per share (thousand shares) 54,898 54,206 yen) Significant Subsequent Events Not applicable. ZENRIN Co., Ltd. (9474) Financial Summary for Fiscal 2022 4. Other Sales Turnover based on Business Composition under Medium- to Long-Term Business Plan ZGP25 [Unit: million yen] Business composition Fiscal 2021 Fiscal 2022 Main items Product business 15,083 15,678 Public Solution business 7,756 7,468 992 1,105 (for corporate customers) Printed residential maps, BLUE MAPS GIS Package products, Residential map data (for central government ministries/agencies and local governments) Printed residential maps, BLUE MAPS, Residential map databases Special-purpose maps, Map design stationary “mati mati” series, Original map design goods, Printed books 13,681 14,667 Data contents for Japanese in-car navigation systems, High-precision 3D data for AD/ADAS 14,189 14,221 Services for smartphones, Map data for internet services, Provision of location based services Marketing Solution business 5,521 5,910 Provision of Marketing Solution, General commercial printing Total 57,225 59,053 [Note] While figures for fiscal 2022 reflect the application of the “Accounting Standard for Revenue Recognition” (ASBJ Statement No. 29, March 31, 2020), etc., figures for fiscal 2021 are those computed prior to the application of the said accounting standard, etc. Therefore, the increase (decrease) amounts and rates (%) are not stated. Map Design business Automotive business IoT business