Performance trend of Nagai Levain <7447>

2. Financial situation. When looking at the financial situation of Inaboholdings <7539> as of the end of the second quarter of the fiscal year ending September 2024, the current assets increased by 1,954 million yen compared to the previous period end, reaching 32,121 million yen. In major subjects, cash and deposits decreased by 33 million yen, while the receivables from bills and unfinished construction work and other unearned income increased by 1,946 million yen, and construction costs of incomplete construction increased by 28 million yen. Fixed assets decreased by 700 million yen to 13,134 million yen. The breakdown is that tangible fixed assets decreased by 30 million yen to 6,575 million yen, intangible fixed assets increased by 231 million yen to 449 million yen (including goodwill increased by 223 million yen), and investment and other assets decreased by 901 million yen to 6,109 million yen. As a result of these, the total assets increased by 1,253 million yen to 45,255 million yen.

The financial situation continues to be good and stable. The total assets at the end of August 2024 decreased by 650 million yen compared to the previous year-end to 46,727 million yen. Current assets decreased by 709 million yen to 38,285 million yen, due to a decrease of 809 million yen in cash and deposits, an increase of 26 million yen in promissory notes and accounts receivable including electronic recording bonds, and an increase of 531 million yen in inventory assets etc. Although inventory assets increased due to lower than planned revenue and the impact of the weak yen, it is not a concerning level. On the other hand, fixed assets increased by 59 million yen to 8,441 million yen, due to an increase of 12 million yen in intangible fixed assets and an increase of 45 million yen in investments and other assets.

Total liabilities decreased by 133 million yen compared to the previous year to 4,029 million yen. The decrease is attributed to a reduction of 308 million yen in bills payable and accounts payable, and a decrease of 117 million yen in unpaid corporate taxes etc. Total net assets decreased by 516 million yen to 42,697 million yen, but increased retained earnings due to the recognition of current net income attributed to parent company shareholders by 895 million yen, while a decrease of 1,439 million yen due to an increase in treasury stock. As a result, the self-equity ratio at the end of August 2024 was 91.4% (compared to 91.2% at the end of the previous period).

The self-equity ratio and the cash and deposits on hand are at high levels, indicating a strong financial position.

3. Cash flow situation - In the fiscal year ending March 2024, cash flow from operating activities amounted to a revenue of ¥1,285 million. The main revenue sources were ¥13,157 million for net income before tax adjustments, ¥1,919 million for depreciation expenses, and an increase of ¥7,671 million in accounts payable. The main expenses were an increase of ¥20,326 million in accounts receivable and contract assets. Cash flow from investing activities had a revenue of ¥3,174 million, mainly from a net revenue of ¥3,000 million from the redemption of securities. Cash flow from financing activities had an expenditure of ¥6,069 million, mainly from an income of ¥674 million from short- and long-term borrowings, an expenditure of ¥2,549 million for the acquisition of treasury stock, and ¥4,083 million for the payment of dividends. As a result, cash and cash equivalents increased by ¥1,449 million, and the balance at the end of the period was ¥23,500 million.

The cash flow from operating activities for the fiscal year ended August 2024 was an income of 2,286 million yen. The main income includes the recognition of 4,074 million yen of current net income before tax adjustments, depreciation expenses of 266 million yen, and a decrease of 36 million yen in accounts receivable. The main expenses were an increase in inventory assets of 531 million yen, and a decrease of 308 million yen in accounts payable. The cash flow from investing activities resulted in an expenditure of 1,769 million yen, with the main expenses being the acquisition of tangible fixed assets of 142 million yen and an increase (net) in fixed deposits of 1,600 million yen. The cash flow from financing activities resulted in an expenditure of 2,929 million yen, with the main expenses being the amount of dividends paid of 1,925 million yen and the acquisition of treasury stock (including changes in deposits) of 1,004 million yen. As a result, cash and cash equivalents during the period decreased by 2,409 million yen, and the balance of cash and cash equivalents at the end of the period was 5,349 million yen.

(Written by FISCO guest analyst Noboru Terashima)