May 22, 2020

TBK Co., Ltd.

Representative: Takaaki Kishi, President

First Section, Tokyo Stock Exchange (Code no.: 7277)

Contact: Masahiko Kuramura, Executive Officer and

General Manager of Business Planning Division

Tel.: +81-42-739-1473

Notice concerning the recording of impairment loss and differences between actual FY2019 results and our consolidated earnings forecast

TBK Co., Ltd. hereby announces that it included impairment loss in its consolidated financial statements for FY2019 (ended March 31, 2020) and that actual FY2019 financial results differed from figures projected in the consolidated earnings forecast it released on November 11, 2019.

1. Recording of impairment loss

TBK and its consolidated subsidiaries have carefully examined the future recoverability of their facilities, equipment, and other fixed assets, incorporating considerations related to the current spread of the novel coronavirus pandemic. These investigations uncovered a decline in the profitability of these assets, and we have accordingly recorded a total impairment loss of ¥3,632 million for FY2019 (ended March 31, 2020). TBK's share of this impairment loss was ¥3,457 million and consolidated TBK subsidiary TBK America, Inc. accounted for ¥141 million.

2. Differences between actual results and our consolidated earnings forecast

  1. Differences between actual results and projected figures in our consolidated earnings forecast for FY2019 (April 1, 2019 through March 31, 2020)

Net

Net income

Operating

Ordinary

income

(loss) per

Net sales

income

income

(loss)

share

Millions of yen

Yen

Previously announced forecast (A)

52,000

900

800

500

17.05

Actual results (B)

51,340

1,261

944

(3,116)

(107.10)

Increase/decrease (B-A)

(659)

361

144

(3,616)

-

Increase/decrease (%)

(1.3)

40.2

18.1

-

-

Ref: Results of FY2018 (ended Mar. 31, 2019)

53,637

1,507

1,554

1,029

35.09

(2) Reasons for differences

Net sales fell somewhat short of expectations due in part to the spread of the novel coronavirus pandemic that lasted through the end of the year. However, both operating and ordinary income exceeded our earlier earnings forecast thanks to thorough cost reduction at all group companies and overall efforts to reduce manufacturing costs and streamline production. Despite higher operating and ordinary income, net loss was ¥3,116 million, substantially higher than our earlier projections, due to impairment loss of ¥3,632 million.

(3) Reduction in compensation for executives

We recognize the seriousness of the impact this impairment loss had on earnings and the tough circumstances currently surrounding TBK. Accordingly, we have decided to withhold bonuses for all executives with the rank of executive officer or higher and to reduce executive compensations by the amounts listed below:

(A)

Reductions to compensation for corporate officers

President

30% reduction to monthly compensation

Member of Board, Managing Executive Officer

25% reduction to monthly compensation

Member of Board

20% reduction to monthly compensation

Managing Executive Officer

20% reduction to monthly compensation

Executive Officer

15% reduction to monthly compensation

(B)

Planned effective period of reductions

Three months spanning from April through June 2020

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TBK Co. Ltd. published this content on 22 May 2020 and is solely responsible for the information contained therein. Distributed by Public, unedited and unaltered, on 28 May 2020 06:32:02 UTC