KOITO MANUFACTURING CO., LTD. Consolidated Earnings Report for the First Quarter of Fiscal 2023
[Japanese GAAP]
July 27, 2022
Company Name: | KOITO MANUFACTURING CO., LTD. |
Stock Listing: | Prime Market, Tokyo Stock Exchange |
Code Number: | 7276 |
URL: | https://www.koito.co.jp |
Representative Director: | Michiaki Kato, President |
Inquiries: | Hideharu Konagaya, Senior Managing Director |
Tel: | +81-3-3443-7111 |
Filing of Quarterly Securities Report: | August 2, 2022 |
Scheduled Payment of Dividends: | － |
Supplementary explanatory materials prepared: | Yes |
Explanatory meeting: | Yes |
(¥ millions are rounded down)
1. Consolidated Results for the First Quarter of Fiscal 2023 (April 1, 2022 to June 30, 2022)
(1) Consolidated Operating Results | (¥ millions; percentage figures represent | changes) | |||||||
First Quarter | Net sales | Operating income | Recurring profit | Profit attributable to | |||||
owners of parent | |||||||||
Fiscal 2023 | 193,443 | 5.2% | 6,379 | △58.9% | 8,455 | △48.3% | △1,057 | － | |
Fiscal 2022 | 183,911 | 69.8% | 15,534 | － | 16,345 | － | 10,654 | － |
Note: Comprehensive income or loss : June 30, 2022: ¥20,701 million (44.9%), June 30, 2021: ¥14,286 million (－%)
First Quarter | Net income | Net income | |||||||||||
per share (¥) | per share (diluted) (¥) | ||||||||||||
Fiscal 2023 | △6.58 | △6.58 | |||||||||||
Fiscal 2022 | 66.28 | 66.26 | |||||||||||
(2) | Consolidated Financial Position | (¥ millions) | |||||||||||
Total assets | Net assets | Equity ratio | Net assets | ||||||||||
(%) | per share (¥) | ||||||||||||
June 30, 2022 | 862,269 | 641,960 | 70.0 | 3,757.17 | |||||||||
March 31, 2022 | 855,237 | 627,315 | 69.1 | 3,676.47 | |||||||||
Note: Equity: June 30, 2022: ¥603,930 million, March 31, 2022: ¥590,958 million | |||||||||||||
2. | Dividends | ||||||||||||
Dividend per share (¥) | |||||||||||||
First Quarter | Second Quarter | Third Quarter | Year End | Full Year | |||||||||
Fiscal 2022 | － | 24.00 | － | 30.00 | 54.00 | ||||||||
Fiscal 2023 | － | ||||||||||||
Fiscal 2023 (forecast) | － | － | － | － |
Notes: 1. Revisions to recent dividend forecasts: None
2. The dividend record dates are September 30 and March 31, as prescribed by KOITO's Articles of Incorporation; the dividend forecast for the September 30, 2022 and March 31, 2023 record date are currently undecided.
3. Forecast of Consolidated Results for Fiscal 2023 (April 1, 2022 to March 31, 2023)
(¥ | millions; percentage figures represent year-on-year changes) | ||||||||
Profit attributable to | Net income | ||||||||
Net sales | Operating income | Recurring profit | per share | ||||||
owners of parent | |||||||||
(¥) | |||||||||
First half | 403,000 | 14.3% | 18,000 | △25.5% | 20,000 | △23.2% | 6,500 | △59.3% | 40.44 |
Full year | 874,000 | 14.9% | 59,000 | 10.4% | 62,000 | 2.3% | 35,000 | △8.7% | 217.74 |
Note: Revisions to recent consolidated business forecasts: Yes
*Notes
- Changes to important subsidiaries during the first quarter of fiscal 2023 (changes in specified subsidiaries resulting in revised scope of consolidation): None
- Application of special accounting methods in the preparation of quarterly consolidated financial statements: None
- Changes in accounting principles, accounting estimates and restatements
① Changes in accounting policies in conjunction with revisions to accounting standards: Yes
②Other changes: None
③Changes in accounting estimates: None
④Restatements: None
Note: For details, please refer to the attached material P.10 "2. Quarterly Consolidated Financial Statements and Notes,
- Notes on Quarterly Consolidated Financial Statements (Note Regarding Changes in accounting policies in conjunction with revisions to accounting standards)"
(4) Number of shares issued (common stock)
① Number of shares issued (including treasury stock):
②Number of treasury stock:
③Average number of stock during the first quarter:
Fiscal 2023, 1Q | 160,789,436 | Fiscal 2022 | 160,789,436 |
Fiscal 2023, 1Q | 48,905 | Fiscal 2022 | 48,905 |
Fiscal 2023, 1Q | 160,740,531 | Fiscal 2022, 1Q | 160,735,817 |
*This quarterly financial report is not subject to the quarterly audit procedure to be conducted by certified public accountants or auditing firms.
*Explanations concerning proper use of business forecasts and other noteworthy matters (Notes on future assumptions)
The above forecasts are based on information available, and certain assumptions that are judged to be reasonable, at the time of the release of this report. KOITO is not promising that the Company will achieve these forecasts. Actual results could differ from forecasts due to a variety of factors.
The exchange conversion rate based on the full-year business forecast for fiscal 2023, the year ending March 2023, is calculated as 1.00 US$ = ¥126.6 and 1 CNY = ¥18.8.
(Supplementary materials for financial results)
KOITO is scheduled to have an earnings release conference for securities analysts and institutional investors on July 28, 2022. Supplementary materials will be available on our website.
- For Reference Only 》
Forecast of Non-consolidated Result for Fiscal 2023 (April 1, 2022 to March 31, 2023)
(¥ millions; percentage figures represent year-on-year changes)
Net sales | Operating income | Recurring profit | Net income | Net income | |||||
per share (¥) | |||||||||
First half | 140,000 | △4.2% | 5,000 | △51.8% | 19,500 | △18.4% | 10,000 | △48.1% | 62.21 |
Full year | 315,000 | 7.0% | 17,000 | △4.3% | 37,000 | △3.7% | 22,000 | △5.4% | 136.87 |
Note: Revisions to recent non-consolidated business forecasts: Yes
Table of Contents of Supplementary Materials
1. Qualitative Information Concerning Quarterly Financial Statements and Other Matters………………………………. | 2 |
2 | |
(1) Explanation Regarding Consolidated Operating Results…………………………………………………………… | 22 |
(2) Explanation Regarding Consolidated Financial Position…..……………………………………………………..… | 22 |
(3) Explanation Regarding Forecast of Consolidated Results for Fiscal 2023 and Other Future Projections………………2 | |
2. Quarterly Consolidated Financial Statements and Notes………………………………………………………………… | 4 |
(1) Quarterly Consolidated Balance Sheets……………………………………………………………………………… | 5 |
4 | |
(2) Quarterly Consolidated Statements of Income and Comprehensive Income……………………………………………6 | |
First quarter, for the three months ended June 30………………………………………………………………………6 | |
(3) Quarterly Consolidated Statements of Cash Flows……………………………………………………………………… | |
8 | |
(4) Notes on Quarterly Consolidated Financial Statements……………………………………………………………… 10 | |
(Going Concern Assumption) ……………………………………………………………………………………… | 10 |
(Note Regarding Significant Changes in Shareholders' Equity) ……………………………………………………… | |
10 | |
(Note Regarding Changes in accounting policies in conjunction with revisions to accounting standards)…………… | |
(Segment Information)……………………………………………………………………………………………… | 10 |
11 |
1
1. Qualitative Information Concerning Quarterly Financial Statements and Other Matters
(1) Explanation Regarding Consolidated Operating Results
Regarding the economic condition in Japan and overseas during the first quarter, recovery was slow and the outlook remained uncertain due to COVID-19, continued shortage of semiconductors, and the lockdown in Shanghai, China, as well as a rise in resources, raw material, and distribution costs, and geopolitical risks such as the situation in Ukraine.
Regarding the automobile industry as well, although automobile production volume was expected to recover in each region, the impact of the drastic fluctuations in production due to shortage of semiconductors and the lockdown in Shanghai was considerable. Year-on-year production volume increased only slightly in North America and Asia etc., and in Japan and China, there were significant reductions in production volume. Therefore, global automobile production volume decreased year on year.
Under these circumstances, net sales for the first quarter decreased in Japan (decrease of 16.9% year on year) and China (decrease of 9.0% year on year) due to decreased automobile production. However, in regions such as North America (increase of 34.6% year on year) and Asia (increase of 34.8% year on year), net sales increased year on year due to new orders, a shift in automobile lamps to LED, and the effect of exchange rate conversions. As a result, consolidated net sales increased 5.2% year on year to ¥193.4 billion.
Regarding profits, although each group company implemented initiatives to improve and rationalize operations, operating income decreased by 58.9% to ¥6.3 billion, and recurring profit decreased by 48.3% to ¥8.4billion year on year, due to an increase in fixed costs accompanying the sudden fluctuation in production especially in Japan, China and North America, as well as a rise in various costs such as raw material costs, distribution costs, and utility costs in each region. Net income attributable to owners of parents was a loss of 1.0 billion, mainly due to a loss on valuation of investment securities.
-
Explanation Regarding Consolidated Financial Position -1. Analysis of assets, liabilities and net assets
Total assets at the end of the first quarter increased by ¥7.0 billion from the end of the previous fiscal year to ¥862.2 billion due to an increase in property, plant and equipment for equipment investmemt.
Total liabilities decreased by ¥7.6 billion from the end of the previous period to ¥220.3 billion due to a decrease in trade notes and accounts payable.
Total net assets increased by ¥14.6 billion from the end of the previous period to ¥641.9 billion due to an increase in translation adjustments for the weak Yen.
-2. Analysis of cash flows
Cash flows from the operating activities provided ¥22.1 billion, mainly reflecting the net income before income taxes of ¥0.4 billion and depreciation of ¥9.1 billion, which secured net cash of ¥15.6 billion (first quarter of the previous fiscal year: ¥28.6 billion) after payment of taxes.
Cash flows from investing activities resulted in expenditures of ¥18.0 billion (first quarter of the previous fiscal year: ¥14.8 billion) as a result of proceeds from time deposits of ¥30.2 billion, payments into time deposits of 35.9 billion, and acquisitions of property and equipment of ¥8.2 billion.
Cash flows from financing activities resulted in expenditures of ¥5.2 billion (first quarter of the previous fiscal year: ¥4.7 billion), the result of mainly reflecting the dividend paid of ¥5.4 billion.
As a result, the balance of cash and cash equivalents at the end of the period decreased by ¥6.3 billion from the end of the previous fiscal year to ¥163.2 billion.
(3) Explanation Regarding Forecasts for Fiscal 2023 and Other Future Projections
Although the global automobile production volume is delayed to recover and remains uncertain as well as this second quarter due to continued impact of shortage of semiconductors and the lockdown in Shanghai, the impact of shortage of semiconductors is expected to gradually dissipate in the second half of the year and we forecast an increase in full year automobile production volume compared to the previous fiscal year.
Regarding the KOITO's business forecast for the fiscal year 2023, the year ending March 31, 2023, net sales are expected to increase year on year due to the gradual recovery of automobile production, an increase in new orders and a shift in automobile lamps to LED, as well as the effect of exchange rate conversions.
On the earnings front, operating income and recurring profit are expected to increase year on year despite the impact of a rise in various costs such as raw material costs and distribution costs, due to the continuous improvements and rationalization activities that the Group has been pursuing as one. Net income attributable to the owners of the parent is expected to decrease year on year due to the recording of a loss on valuation of investment securities in the first quarter.
2
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Koito Manufacturing Co. Ltd. published this content on 27 July 2022 and is solely responsible for the information contained therein. Distributed by Public, unedited and unaltered, on 27 July 2022 08:11:06 UTC.
