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Financial results presentation7723Aichi Tokei Denki Co.,Ltd.Electrical & Precision Instruments

Earnings Presentation for the Second Quarter (Interim Period) of the Fiscal Year Ending March 2027

In the interim period of the fiscal year ending March 2027, domestic and overseas sales increased, driving revenue up 7.4% year on year and to a record high for an interim period. However, each profit measure from operating income downward declined due to changes in the product mix, higher raw material and component prices, and costs incurred to address product defects.

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Contents of this document

Financial results presentationSecond quarter (interim period) of the fiscal year ending March 20279 items taken from the company’s own explanation
Financial Results Figures (The key points of this material are explained below)
Net Sales¥29,572 million+7.4%
Operating profit¥229 million-86.0%
Ordinary income¥451 million-76.9%
Net income¥360 million-74.8%
Gross Profit Margin20.7
Operating profit margin0.8
Selling, general and administrative expenses¥5,887 million
What the company explained in this material
Self-assessment against the planThe company's self-assessment against its own plan.
Each profit measure is tracking above plan excluding costs to address product defects
Breakdown of Factors Affecting the ChangeReasons cited by the Company for the change in the figures.
  • Higher revenue and changes in the sales mix¥75 million
  • Cost reductions¥205 million
  • Selling Prices¥412 million
  • Higher raw material and purchased component costs¥-373 million
  • Increase in fixed costs¥-708 million
  • Costs for measures to address defects¥-948 million
  • Foreign exchange and other factors¥-70 million
Assumptions Underlying the Business OutlookThe assumptions used by the company in preparing its forecast.
  • ¥146.2
    BasisExchange rate in the first half of the previous fiscal year
  • ¥159
    BasisFirst-half actual exchange rates
Key KPIsA metric the company considers important as a management benchmark.
  • Cumulative number of cloud-connected units155 10,000 units
Segment results
  • Measurement Instruments-Related Business · Gas-Related Equipment
    Net Sales¥14,745 million
  • Measurement Instruments-Related Business · Water Supply-Related Equipment
    Net Sales¥11,427 million
  • Measurement Instruments-Related Business · Sensors and Systems for Private-Sector Demand
    Net Sales¥1,476 million
  • Measurement Instruments-Related Business · Instrumentation
    Net Sales¥1,888 million
  • Specialized Equipment-Related Business · Specialized Equipment
    Net Sales¥35 million
Medium-term management plan targets
  • Revenue
    Target for the fiscal year ending March 2027600
    Actuals and outlookRevenue is expected to meet the target
  • Ordinary income
    Target for the fiscal year ending March 202752
    Actuals and outlookExpected to fall below the target
  • Net income
    Target for the fiscal year ending March 202748
    Actuals and outlookExpected to fall below the target
  • ROE
    Target for the fiscal year ending March 20278
    Actuals and outlookExpected to fall below the target
Financial targets
ROE
Target for the fiscal year ending March 20278 %
Annual Dividend
Forecast for the fiscal year ending March 2027¥120
Payout ratio
51.6 %
TargetAim for a dividend payout ratio of 40% during the plan period
Contents of this document
ItemDetails
Document typeFinancial results presentation
Fiscal Period CoveredSecond quarter (interim period) of the fiscal year ending March 2027
Net Sales¥29,572 million (YoY +7.4%)
Operating profit¥229 million (YoY -86.0%)
Ordinary income¥451 million (YoY -76.9%)
Net income¥360 million (YoY -74.8%)
Gross Profit Margin20.7
Operating profit margin0.8
Selling, general and administrative expenses¥5,887 million
Self-assessment against the planEach profit measure is tracking above plan excluding costs to address product defects
Segment resultsSegment Measurement Instruments-Related Business · Gas-Related Equipment / Net Sales ¥14,745 million / yoy_pct 7.8, Segment Measurement Instruments-Related Business · Water Supply-Related Equipment / Net Sales ¥11,427 million / yoy_pct 7.6, Segment Measurement Instruments-Related Business · Sensors and Systems for Private-Sector Demand / Net Sales ¥1,476 million / yoy_pct 17.3, Segment Measurement Instruments-Related Business · Instrumentation / Net Sales ¥1,888 million / yoy_pct -2.2, Segment Specialized Equipment-Related Business · Specialized Equipment / Net Sales ¥35 million / yoy_pct 24.1
Breakdown of Factors Affecting the ChangeFactors Higher revenue and changes in the sales mix / Amount ¥75 million, Factors Cost reductions / Amount ¥205 million, Factors Selling Prices / Amount ¥412 million, Factors Higher raw material and purchased component costs / Amount ¥-373 million, Factors Increase in fixed costs / Amount ¥-708 million, Factors Costs for measures to address defects / Amount ¥-948 million, Factors Foreign exchange and other factors / Amount ¥-70 million
Key KPIsIndicator name Cumulative number of cloud-connected units / Value 155 10,000 units / Year on year against the same period last year Not disclosed
Assumptions Underlying the Business OutlookBasis Exchange rate in the first half of the previous fiscal year / Value ¥146.2, Basis First-half actual exchange rates / Value ¥159
Medium-term management plan targetsIndicator Revenue / Target for the fiscal year ending March 2027 ¥600 100 million / Actuals and outlook Revenue is expected to meet the target, Indicator Ordinary income / Target for the fiscal year ending March 2027 ¥52 100 million / Actuals and outlook Expected to fall below the target, Indicator Net income / Target for the fiscal year ending March 2027 ¥48 100 million / Actuals and outlook Expected to fall below the target, Indicator ROE / Target for the fiscal year ending March 2027 8 % / Actuals and outlook Expected to fall below the target
Financial targetsROE Target for the fiscal year ending March 2027 8 %
Annual DividendForecast for the fiscal year ending March 2027 ¥120 / Breakdown Not disclosed
Payout ratio51.6 %
Items this document does not state (13)
Results for the three months of the current quarterFull-year earnings forecastProgress against full-year forecastUnit price and quantity metricsNumber of stores and locationsNumber of employeesRisk amount incorporated into the outlookAcquisition of treasury sharesCapital expendituresOrders received and order backlogMarket Size / ShareKey points of the Q&ANew initiatives

These are items the company does not state in this document. We do not leave them blank, nor fill them in from other sources or by inference.

The reasons the company gives

The company's own explanation, not something inferred from the numbers.

Revenue remained firm in both the domestic and overseas markets. On the earnings side, factors contributing to lower profits included changes in the product mix, higher procurement prices for raw materials and components, and the additional recognition of costs to address defects in certain products.

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Earnings Presentation for the Second Quarter (Interim Period) of the Fiscal Year Ending March 2027 | Aichi Tokei Denki Co.,Ltd. (7723) timely disclosure | Komori