Performance Trends of SIG Group <4386>

3. Financial situation

From a financial perspective, the total assets as of the end of March 2024 increased by JPY304 million from the previous period to JPY4,581 million. While the stake in related companies decreased by JPY717 million, cash and deposits increased by JPY631 million, accounts receivable increased by JPY115 million, and investment securities increased by JPY233 million. The stake in related companies decreased due to the part transfer of shares in Acro Holdings, resulting in the increase of cash and deposits. Total liabilities increased by JPY140 million to JPY2,520 million, largely due to the increase of accounts payable by JPY26 million, bonus reserve by JPY36 million, and the liability for retirement benefits by JPY54 million. However, the balance of interest-bearing liabilities (total long and short-term borrowings) decreased by JPY68 million to JPY1,034 million. Total net assets increased by JPY163 million to JPY2,061 million, due to the increase of retained earnings by JPY154 million. As a result, the self-capital ratio increased by 0.6 percentage points from the previous period to 45.0%.

In the case of the company, there is a possibility of an increase in interest-bearing liabilities during M&A, but there were no particularly large items of volatility for the March 2024 period, except for the part transfer of shares in Acro Holdings, and the self-capital ratio increased steadily, albeit slightly, due to the accumulation of retained earnings. Considering that there are no special concerns about the cash flow situation, we believe that the financial soundness is maintained.

(Authored by FISCO guest analyst Masanobu Mizuta)