Please note that this document is a translation of the official announcement that was released on February 10, 2017. The translation is prepared and
provided for the purpose of the reader’s convenience only. All readers are strongly recommended to refer to the original Japanese version of the
news release for complete and accurate information.
Consolidated Financial Results for the
Third Quarter Ended December 31, 2016
[Japanese GAAP]
February 10, 2017
Company name: Raysum Co., Ltd.
Stock exchange listing: Tokyo Securities Exchange
Code number: 8890
URL: http://www.raysum.co.jp/
Representative: Takeshi Tanaka, President and Representative Director
Contact: Yasuhiro Katayama, Operating Officer, General Manager of Administration Division
Phone: +81-3-5157-8881
Scheduled date for filing of quarterly securities report: February 10, 2017
Scheduled date of commencing dividend payments: —
Availability of supplementary briefing material on financial results: None
Schedule of financial results briefing session: None
(Figures are rounded down to the nearest million yen)
1.
Consolidated Financial Results for the Third Quarter Ended December 31, 2016 (April 1, 2016 to December 31, 2016)
(1) Consolidated Results of Operations
(% indicates changes from the previous corresponding period)
Net sales
million yen
Operating income
million yen
%
Ordinary income
million yen
%
Third quarter ended
29,037
39.8
6,003
49.7
5,873
December 31, 2016
Third quarter ended
20,773
12.1
4,010
27.5
3,857
December 31, 2015
(Note) Comprehensive income: Third quarter ended December 31, 2016: ¥5,837 million (54.6%)
Third quarter ended December 31, 2015: ¥3,776 million (1.2%)
Net income
per share
yen
Third quarter ended
December 31, 2016
Third quarter ended
December 31, 2015
%
Net income
million yen
52.3
5,861
54.8
19.7
3,786
5.2
Diluted net income
per share
yen
127.21
－
82.17
82.05
(2) Consolidated Financial Position
Total assets
million yen
Net assets
million yen
54,035
As of December 31, 2016
54,005
As of March 31, 2016
(Reference) Equity: As of December 31, 2016: ¥40,249 million
As of March 31, 2016: ¥35,426 million
Equity ratio
%
40,249
74.5
35,548
65.6
2. Dividends
Annual Dividends
1st quarter end
yen
2nd quarter end
yen
3rd quarter end
yen
Fiscal year ended March 31,
–
0.00
2016
Fiscal year ending March 31,
–
0.00
2017
Fiscal year ending March 31,
2017 (Forecast)
(Note) Changes to the most recent dividend forecast announced: Not applicable
–
%
Year end
yen
Total
yen
22.00
22.00
27.00
27.00
–
3. Consolidated Financial Results Forecast for the Fiscal Year Ending March 31, 2017 (April 1, 2016 to March 31, 2017)
Net sales
(% indicates changes from the previous corresponding period)
Net income
Net income
Operating income
Ordinary income
attributable to
per share
owners of parent
million yen
% million yen
%
million yen
%
yen
million yen
%
Full year
36,620
31.5
6,280
12.0
6,070
14.7
(Note) Changes to the most recent financial results forecast announced: Not applicable
6,030
21.2
130.86
*Notes
(1) Significant changes of subsidiaries in the first quarter of the consolidated fiscal year under review (affecting specified
subsidiaries resulting in changes in scope of consolidation): Not applicable
(2)
(3)
Application of accounting method specific to preparation of quarterly consolidated financial statements:
Not applicable
Changes in accounting policies, changes in accounting estimates and restatements
1) Changes in accounting policies due to the revision of accounting standards: Applicable
2) Any changes in accounting policies other than 1) above: Not applicable
3) Changes in accounting estimates: Not applicable
4) Restatements: Not applicable
(4) Total number of issued shares (common stock)
1) Total number of issued shares at the end of the period (including treasury stock):
Third quarter ended December 31, 2016
46,081,400 shares
Fiscal year ended March 31, 2016
46,081,400 shares
2) Total number of treasury stock at the end of the period:
Third quarter ended December 31, 2016
33 shares
Fiscal year ended March 31, 2016
33 shares
3) Average number of shares during the period:
Third quarter ended December 31, 2016
46,081,367 shares
Third quarter ended December 31, 2015
46,081,387 shares
* Presentation regarding the implementation status of the audit process
At the time of disclosure of this report, audit procedures of the consolidated financial statements pursuant to the Financial
Instruments and Exchange Act were completed.
* Explanation of the proper use of performance forecast and other note
(Note on forward-looking statements, etc.)
Performance forecasts and other forward-looking statements presented in this report are based on information currently available to
the Company and certain assumptions deemed to be reasonable, and are not to be read as guarantees of future performance by the
Company. In addition, actual performance may differ substantially due to various factors.
Contents of Appendix
1. Qualitative Information on Quarterly Financial Results ............................................................................................ 2
(1) Explanation of Results of Operations ............................................................................................................... 2
(2) Explanation of Financial Position .................................................................................................................... 3
(3) Explanation of Consolidated Financial Results Forecast and Other Information on Future Forecasts ....................... 3
2. Quarterly Consolidated Financial Statements .......................................................................................................... 4
(1) Quarterly Consolidated Balance Sheets ............................................................................................................ 4
(2) Quarterly Consolidated Statements of Income and Quarterly Consolidated Statements of Comprehensive Income ... 6
(3) Quarterly Consolidated Statements of Cash Flows ............................................................................................. 7
(4) Notes on Quarterly Consolidated Financial Statements ...................................................................................... 8
(Notes on the Going Concern Assumption) ........................................................................................................ 8
(Notes in the Event of Material Change in the Amount of Shareholders’ Equity) ................................................... 8
(Segment Information, Etc.) ............................................................................................................................. 8
－
1
－
1. Qualitative Information on Quarterly Financial Results
(1) Explanation of Results of Operations
The consolidated financial results for the first three quarters of the consolidated fiscal year under review recorded net sales
of 29,037 million yen (year-on-year increase of 39.8%), operating income of 6,003 million yen (year-on-year increase of
49.7%), ordinary income of 5,873 million yen (year-on-year increase of 52.3%) and net income attributable to owners of parent
of 5,861 million yen (year-on-year decrease of 54.8%).
Business results by segment are as follows.
1) Wealth Management Business
In this business, we not only consider the appropriate structure and methods of property management based on details of the
assets of each high-net-worth individual, but also aim to commercialize properties with future potential. The products cover a
wide range of properties from commercial/office buildings, residential and hotels to medical facilities among others, with also
a diversified price range from some hundred million yen to some ten billion yen.
We believe that, in order to meet clients’ expectations and respond to their confidence in Japanese society which is facing a
low birth rate and an aging population as well as falling population and seeing a rapid rise in redundant buildings, abilities to
create tenants who can respond to social changes are required in addition to an ability to attract tenants who bring out the
potential of properties, and are therefore we are focusing on new businesses.
As for sales in the first three quarters of the consolidated fiscal year under review, both income and profits increased yearon-year with the addition of the community hostel project of new businesses, centering on the provision of several projects
including large projects at a scale of 3 billion yen or more.
In the first three quarters of the consolidated fiscal year under review, the Wealth Management Business posted 25,269
million yen (year-on-year increase of 39.0%) in net sales and 5,328 million yen (year-on-year increase of 47.5%) in segment
income.
2) Property Management Business
In order to achieve the property-owning objectives of clients who own income properties purchased from our company, this
business seeks to attract optimal tenants and make various arrangements in order to make the most efficient use of properties in
various usage categories and provides detailed building leasing and management services.
In the first three quarters of the consolidated fiscal year under review, the Property Management Business posted 1,576
million yen (year-on-year increase of 13.8%) in net sales and 575 million yen (year-on-year increase of 6.3%) in segment
income.
3) Servicing Business
In this business, principally Global Asset Management Co., Ltd. a consolidated subsidiary of the Company purchases
receivables from financial institutions mainly on its own account and engages in collection and management of these
receivables.
In the first three quarters of the consolidated fiscal year under review, the Servicing Business posted 1,558 million yen
(year-on-year increase of 129.9%) in net sales and 351 million yen (year-on-year increase of 77.8%) in segment income.
Steady progress was made in the careful collection of receivables that had already been purchased and owned and in new
acquisition of receivables. Furthermore, going forward, we intend to devote efforts to hiring staff and also in enhancing our
capacity to increase the value of real estate securities.
4) Other Business
This segment runs Raysum Golf & Spa Resort, a golf course owned by Asset Holdings, Ltd., a consolidated subsidiary of
the Company.
The segment net sales were 633 million yen (year-on-year increase of 18.4%) and segment income was 50 million yen (yearon-year decrease of 6.1%) in the first three quarters of the consolidated fiscal year under review.
－
2
－
(2) Explanation of Financial Position
1) Changes in Financial Position
[Assets]
Current assets decreased 1,322 million yen compared to the end of the previous consolidated fiscal year to 48,304 million
yen.
This was primarily attributable to cash and deposits increasing 9,287 million yen to 21,585 million yen, real estate for sale in
process increasing 1,043 million yen to 10,640 million yen and purchased receivables increasing 187 million yen to 3,875
million yen while real estate for sale decreased 11,915 million yen to 8,277 million yen.
The change in cash and deposits was mainly due to the increase of 25,521 million yen in sales of real estate for sale, a
decrease of 6,104 million yen in purchases of real estate for sale, the decrease of 1,233 million yen due to payment for
construction in line with the progressing development of real estate for sale in process and payment for repair works on real
estate for sale, the decrease of 4,790 million yen due to the difference between new fundraising and repayment of loans
payable, the increase of 1,567 million yen through collection activities and the decrease of 1,256 million yen due to new
acquisition of receivables in the Servicing Business and the decrease of 1,011 million yen through payment of dividends.
Noncurrent assets increased 1,351 million yen from the end of the previous consolidated fiscal year to 5,730 million yen.
As a result, total assets as at the end of the first three quarters of the consolidated fiscal year under review increased 29
million yen compared to the end of the previous consolidated fiscal year to 54,035 million yen.
[Liabilities]
Liabilities decreased 4,672 million yen compared to the end of the previous consolidated fiscal year to 13,785 million yen.
This was primarily attributed to loans payable decreasing 4,790 million yen due to the difference between new fundraising and
repayment of loans payable.
[Net Assets]
Total net assets increased 4,701 million yen compared to the end of the previous consolidated fiscal year to 40,249 million
yen. This was due primarily to increase in retained earnings of 5,861 million yen while conducting payment of 1,011 million
yen of dividends following the recording of quarterly net income attributable to owners of parent.
Furthermore, equity ratio as of the end of the first three quarters of the consolidated fiscal year under review has become
74.5%.
2) Cash Flows
Cash and cash equivalents (hereinafter, “funds”) at the end of the first three quarters of the consolidated fiscal year under
review increased 9,512 million yen compared to the end of the previous consolidated fiscal year to 21,485 million yen.
Cash flows in the first three quarters of the consolidated fiscal year under review and the major contributory factors are as
follows.
[Net cash provided by (used in) operating activities]
Net cash provided by operating activities increased 16,044 million yen. The main factors for increase were increased funds
related to 25,269 million yen in net sales in the Wealth Management Business and 1,567 million yen in collection of
receivables in the Servicing Business. The main factors for decrease were the decrease in funds related to the 6,104 million yen
of payment for purchases of real estate for sale and the decrease of 1,233 million yen due to payment in line with the
progressing development of real estate for sale in process and payment for repair works on real estate for sale in the Wealth
Management Business, the expenditure of 1,256 million yen related to new acquisition of receivables in the Servicing
Business, and decrease in funds related to expenditure of selling, general and administrative expenses.
[Net cash provided by (used in) investing activities]
Net cash provided by investing activities decreased 659 million yen. The main factors for decrease include the expenditure
of 194 million yen related to purchase of property, plant and equipment, purchase of intangible assets and expenditure of 667
million yen from acquisition of stocks of affiliated companies.
[Net cash provided by (used in) financing activities]
Net cash provided by financing activities decreased 5,901 million yen. This was a result of an increase of 3,575 million yen
from new loans payable aside from changes due to refinancing long-term loans payable of 3,100 million yen and bonds
－
3
－
payable of 800 million yen with the same amount each, a decrease of 8,364 million yen from repayment of interest-bearing
liabilities, a decrease of 100 million yen from expenditure for acquiring securities of other related companies that do not result
in changes in scope of consolidation, a decrease of 1,011 million yen from the payment of dividends and such.
(3) Explanation of Consolidated Financial Results Forecast and Other Information on Future Forecasts
The consolidated financial results forecast remain unchanged from the full year consolidated financial results forecast on
“Consolidated Financial Results for the Fiscal Year Ending March 31, 2016” announced on May 13, 2016.
－
4
－
2. Quarterly Consolidated Financial Statements
(1) Quarterly Consolidated Balance Sheets
(Millions of yen)
As of March 31, 2016
Assets
Current assets
Cash and deposits
Operating accounts receivable
Operational investment securities
Real estate for sale
Real estate for sale in process
Purchased receivables
Advance payments - trade
Deferred tax assets
Income taxes receivable
Other
Allowance for doubtful accounts
Total current assets
Non-current assets
Property, plant and equipment
Buildings, net
Land
Other, net
Total property, plant and equipment
Intangible assets
Other
Total intangible assets
Investments and other assets
Investment securities
Deferred tax assets
Investments in capital
Other
Allowance for doubtful accounts
Total investments and other assets
Total non-current assets
Total assets
－
5
－
As of December 31, 2016
12,298
220
236
20,192
9,597
3,688
698
2,785
24
550
-666
49,626
21,585
95
186
8,277
10,640
3,875
662
2,790
12
841
-664
48,304
615
656
142
1,414
660
1,058
188
1,907
309
309
379
379
1,786
263
10
594
－
2,654
4,379
54,005
2,709
264
10
581
-122
3,443
5,730
54,035
(Millions of yen)
As of March 31, 2016
Liabilities
Current liabilities
Short-term loans payable
Current portion of long-term loans payable
Income taxes payable
Advances received
Provision for bonuses
Other
Total current liabilities
Non-current liabilities
Bonds payable
Long-term loans payable
Provision for adjustment of securitization
Asset retirement obligations
Deposits received from tenants
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
Total accumulated other comprehensive income
Subscription rights to shares
Non-controlling interests
Total net assets
Total liabilities and net assets
－
6
－
As of December 31, 2016
300
592
5
143
11
1,147
2,200
300
187
25
195
3
1,400
2,111
800
12,961
14
4
2,476
16,256
18,457
800
8,576
0
4
2,292
11,673
13,785
100
12,253
22,867
-0
35,220
100
12,253
27,715
-0
40,068
155
122
51
206
22
99
35,548
54,005
58
180
－
0
40,249
54,035
(2) Quarterly Consolidated Statements of Income and Quarterly Consolidated Statements of Comprehensive Income
(Quarterly Consolidated Statements of Income – Third Quarter of Consolidated Fiscal Year)
(Millions of yen)
Nine months ended
December 31, 2015
Net sales
Cost of sales
Gross profit
Selling, general and administrative expenses
Operating income
Non-operating income
Interest income
Foreign exchange gains
Other
Total non-operating income
Non-operating expenses
Interest expenses
Commission for a financial loan
Foreign exchange losses
Other
Total non-operating expenses
Ordinary income
Extraordinary income
Gain on reversal of subscription rights to shares
Total extraordinary income
Extraordinary losses
Loss on sales and retirement of non-current assets
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
－
7
－
Nine months ended
December 31, 2016
20,773
14,524
6,248
2,238
4,010
29,037
20,645
8,392
2,388
6,003
9
－
1
10
11
19
4
34
88
10
63
0
164
3,857
73
87
－
3
164
5,873
－
－
22
22
26
26
3,830
15
28
44
3,786
-0
3,786
1
1
5,894
24
5
30
5,863
1
5,861
(Quarterly Consolidated Statements of Comprehensive Income – Third Quarter of Consolidated Fiscal Year)
(Millions of yen)
Nine months ended
December 31, 2015
Profit
Other comprehensive income
Valuation difference on available-for-sale securities
Foreign currency translation adjustment
Total other comprehensive income
Comprehensive income
Comprehensive income attributable to
Comprehensive income attributable to owners of
parent
Comprehensive income attributable to noncontrolling interests
－
8
－
Nine months ended
December 31, 2016
3,786
5,863
-0
-9
-9
3,776
-32
7
-25
5,837
3,776
5,836
-0
1
(3) Quarterly Consolidated Statements of Cash Flows
(Millions of yen)
Nine months ended
December 31, 2015
Cash flows from operating activities
Profit before income taxes
Depreciation
Increase (decrease) in provision for bonuses
Increase (decrease) in allowance for doubtful accounts
Increase (decrease) in provision for adjustment of securitization
Interest and dividend income
Gain on reversal of subscription rights to shares
Interest expenses
Loss (gain) on sales and retirement of non-current assets
Decrease (increase) in notes and accounts receivable - trade
Decrease (increase) in investment securities for sale
Decrease (increase) in real estate for sale
Decrease (increase) in real estate for sale in process
Decrease (increase) in purchased receivables
Decrease (increase) in advance payments
Increase (decrease) in advances received
Increase (decrease) in accounts payable - other
Increase (decrease) in accrued consumption taxes
Increase (decrease) in lease deposits received
Decrease (increase) on investments in silent partnership
Other, net
Subtotal
Interest and dividend income received
Interest expenses paid
Income taxes (paid) refund
Net cash provided by (used in) operating activities
Cash flows from investing activities
Payments into time deposits
Proceeds from withdrawal of time deposits
Purchase of property, plant and equipment
Proceeds from sales of property, plant and equipment
Purchase of intangible assets
Purchase of shares of subsidiaries and associates
Other, net
Net cash provided by (used in) investing activities
Cash flows from financing activities
Net increase (decrease) in short-term loans payable
Proceeds from long-term loans payable
Repayments of long-term loans payable
Proceeds from issuance of bonds
Redemption of bonds
Payments from changes in ownership interests in other securities
of subsidiaries and affiliates that do not result in change in scope
of consolidation
Cash dividends paid
Other, net
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
－
9
－
Nine months ended
December 31, 2016
3,830
95
-8
-32
41
-9
－
88
26
39
94
-8,464
-367
134
10,076
39
52
-240
339
-246
-52
5,440
2
-86
-86
5,269
5,894
110
-8
119
-14
-11
-22
73
1
125
－
11,406
-1,024
-187
13
53
-167
560
-168
-255
-381
16,116
4
-76
0
16,044
-487
－
-84
9
-7
-500
-3
-1,074
-0
206
-86
0
-107
-667
-3
-659
-50
4,810
-6,332
－
－
－
6,675
-11,464
800
-800
－
-100
-826
-0
-2,398
-21
1,773
11,449
13,223
-1,011
－
-5,901
28
9,512
11,972
21,485
(4) Notes on Quarterly Consolidated Financial Statements
(Notes on the Going Concern Assumption)
Not applicable.
(Notes in the Event of Material Change in the Amount of Shareholders’ Equity)
Not applicable.
(Segment Information, Etc.)
[Segment Information]
Information on net sales, income (loss), assets, liabilities and other items by reporting segment
Third Quarters of the Fiscal Year ended December 31, 2015 (April 1, 2015 to December 31, 2015)
Reportable segments
Wealth
Management
Property
Management
Servicing
Total
Others
(Millions of yen)
Per
quarterly
Reconciling
consolidated
items
financial
statements
Sales
Revenues from
external customers
Transactions with
other segments
18,176
1,385
677
534
20,773
－
20,773
－
－
307
15
322
-322
－
Net sales
18,176
1,385
984
550
21,096
-322
20,773
Operating income (loss)
3,613
541
197
53
4,406
-395
4,010
(Note) The amount of (-395 million yen) in adjustments of segment profit (loss) is the elimination of inter-segment
transactions (-32 million yen) and the company-wide expenses of administrative expenses (-362million yen) that
are not allocated to each segment. The amount of segment profit (loss) after deduction of this adjustment is the
same as the amount of 4,010 million yen of operating income stated in the consolidated statements of income.
Third Quarters of the Fiscal Year ended December 31, 2016 (April 1, 2016 to December 31, 2016)
Reportable segments
Wealth
Management
Property
Management
Servicing
Total
Others
(Millions of yen)
Per quarterly
Reconciling
consolidated
financial
items
statements
Sales
Revenues from
external customers
Transactions with
other segments
25,269
1,576
1,558
633
29,037
－
29,037
－
－
－
20
20
-20
－
Net sales
25,269
1,576
1,558
654
29,058
-20
29,037
Operating income (loss)
5,328
575
351
50
6,306
-302
6,003
(Note) The amount of (-302 million yen) in adjustments of segment profit (loss) is the elimination of inter-segment
transactions (32 million yen) and the company-wide expenses of administrative expenses (-335 million yen) that
are not allocated to each segment. The amount of segment profit (loss) after deduction of this adjustment is the
same as the amount of 6,003 million yen of operating income stated in the consolidated statements of income.
－
10
－