Consolidated Financial Results for the Second Quarter ended September 30, 2023

November 7, 2023

Name of Company:

USS Co., Ltd.

Stock Exchanges Listing:

Tokyo Stock Exchange, Nagoya Stock Exchange

Stock Code:

4732

URL:

https://www.ussnet.co.jp/en/

Representative:

Title:

Chairman and Representative

Name:

Yukihiro Ando

Director

Contact Person:

Title:

Executive Vice President and

Name:

Masafumi Yamanaka

Officer of Supervisory Office

Tel:

+81-52-689-1129

Scheduled date of filing of quarterly securities report

November 9, 2023

Scheduled date of commencement of dividend payment

December 8, 2023

Supplementary materials for quarterly financial results

Yes

Information meeting for quarterly financial results

Yes

1.

Consolidated Results for the Second Quarter ended September 30, 2023 (April 1, 2023 - September 30, 2023)

(1)

Consolidated Operating Results (year-to-date)

(Percentage figures represent year on year changes)

Net sales

Operating profit

Ordinary profit

Million yen

%

Million yen

%

Million yen

%

Six months ended September 30, 2023

48,093

13.3

23,779

12.1

24,131

11.8

Six months ended September 30, 2022

42,429

6.6

21,220

3.2

21,586

3.1

Profit attributable to

Profit

Diluted profit

owners of parent

per share

per share

Million yen

%

Yen

Yen

Six months ended September 30, 2023

16,164

10.6

66.85

66.71

Six months ended September 30, 2022

14,614

2.7

59.74

59.64

Note: Comprehensive income (million yen): Six months ended September 30, 2023: 16,480

12.0%

Six months ended September 30, 2022: 14,712

－3.1%

(2)

Consolidated Financial Position

Total assets

Net assets

Equity ratio

(Million yen)

(Million yen)

(%)

As of September 30, 2023

250,126

190,422

74.8

As of March 31, 2023

242,352

194,154

78.8

Note: Equity capital (million yen): As of September 30, 2023: 187,120

As of March 31, 2023

: 190,997

2.

Dividends

Dividend per share (Yen)

(Reference date)

First quarter

Second quarter

Third quarter

Fiscal year

Total

- end

- end

- end

- end

Year ended March 31, 2023

―

33.70

―

33.80

67.50

Year ending March 31, 2024

―

34.70

Year ending March 31,

―

38.40

73.10

2024(Forecast)

Note: Revision of dividend forecast of this period: Yes

3. Forecast of Consolidated Financial Results for the year ending March 31, 2024 (April 1, 2023 - March 31, 2024)

(Percentage figures represent year on year changes)

Net sales

Operating profit

Ordinary profit

Profit attributable to

Profit per share

owners of parent

Million yen

%

Million yen

%

Million yen

%

Million yen

%

Yen

For the year

95,400

7.5

47,100

7.6

47,810

7.5

31,900

6.3

132.47

Note: Revision of financial forecast for this period: Yes

1

*Notes:

  1. Changes in significant subsidiaries during the term (Changes in specific subsidiaries accompanied by changes in the scope of consolidation): None
  2. Use of simplified accounting method and special accounting policy for quarterly financial reporting: Yes

Calculation of tax expenses

Taxes are calculated by determining a reasonable estimate of the effective tax rate, after the application of tax effect accounting, for income before income taxes in the current fiscal year (including the second quarter). Quarterly income before income taxes is then multiplied by this estimated effective tax rate to calculate taxes.

  1. Changes in accounting principles, estimates and retrospective restatement
    1. Changes due to revision of accounting standards: None

2)

Changes other than in 1)

: None

3)

Changes in accounting estimates

: None

4)

Retrospective restatement

: None

  1. Number of shares outstanding (common shares)
    1. Shares outstanding (including treasury shares)

As of September 30, 2023

: 257,000,000 shares

As of March 31, 2023

: 257,000,000 shares

2)

Treasury shares

As of September 30, 2023

:

17,334,386 shares

As of March 31, 2023

:

12,414,086 shares

3)

Average number of shares outstanding for each period (cumulative term)

As of September 30, 2023

: 241,768,828 shares

As of September 30, 2022

: 244,606,256 shares

Note: Treasury shares includes 348,700 shares as of September 30, 2023 and 41,100 shares as of March 31, 2023 held by the USS employee stock ownership plan trust.

  • This quarterly financial results is not subject to the audit procedure.
  • Cautionary statement regarding forecasts of operating results and special notes (Note regarding the forward-looking statements)
    Forward-looking statements in these materials are based on information available to management at the time this report was prepared and assumptions that management believes are reasonable. These statements are not promises by the Company regarding future performance. Actual results may differ significantly from these statements for a number of reasons.

(Supplementary explanatory documents)

Supplementary explanatory documents will be posted on the Company's website on November 8, 2023.

2

4. Quarterly Consolidated Financial Statements

(Million yen)

(1) Quarterly Consolidated Balance Sheet

FY 2022

FY 2023 Second Quarter

(As of March 31, 2023)

(As of September 30, 2023)

Assets

Current assets

Cash and deposits

92,692

93,086

Receivables due from member dealers at auction

13,314

20,161

Notes and accounts receivable-trade, and contract assets

2,982

2,960

Securities

3,000

3,000

Inventories

1,843

1,354

Other

2,260

4,680

Allowance for doubtful accounts

(35)

(57)

Total current assets

116,057

125,185

Non-current assets

Property, plant and equipment

Buildings and structures, net

34,313

33,339

Land

63,577

63,577

Construction in progress

126

410

Other, net

2,586

2,610

Total property, plant and equipment

100,604

99,938

Intangible assets

Goodwill

7,826

7,556

Other

5,718

5,471

Total intangible assets

13,545

13,028

Investments and other assets

Investments and other assets

12,288

12,131

Allowance for doubtful accounts

(143)

(157)

Total investments and other assets

12,144

11,973

Total non-current assets

126,295

124,940

Total assets

242,352

250,126

3

(Million yen)

FY 2022

FY 2023 Second Quarter

(As of March 31, 2023)

(As of September 30, 2023)

Liabilities

Current liabilities

Payables due to member dealers at auction

22,595

33,651

Notes and accounts payable-trade

855

1,026

Short-term borrowings

340

200

Current portion of long-term borrowings

220

220

Income taxes payable

7,864

7,767

Provisions

889

917

Other

6,507

6,196

Total current liabilities

39,273

49,979

Non-current liabilities

Long-term borrowings

1,794

2,504

Provisions

40

67

Retirement benefit liability

Asset retirement obligations

Other

Total non-current liabilities

Total liabilities

Net assets

Shareholders' equity

Share capital

Capital surplus

Retained earnings

Treasury shares

Total shareholders' equity

Accumulated other comprehensive income Valuation difference on available-for-salesecurities Revaluation reserve for land

927

975

633

637

5,529

5,537

8,925

9,724

48,198

59,704

18,881

18,881

8,992

9,385

180,137

188,033

(12,034)

(24,073)

195,976

192,226

660

533

(5,636)

(5,636)

Remeasurements of defined benefit plans

(3)

(2)

Total accumulated other comprehensive income

(4,979)

(5,105)

Share acquisition rights

457

457

Non-controlling interests

2,699

2,844

Total net assets

194,154

190,422

Total liabilities and net assets

242,352

250,126

4

(2) Quarterly Consolidated Statements of Income and Consolidated Statements of Comprehensive Income

(Quarterly Consolidated Statements of Income)

(Million yen)

FY 2022 Second Quarter

FY 2023 Second Quarter

(April 1, 2022 to

(April 1, 2023 to

September 30, 2022)

September 30, 2023)

Net sales

42,429

48,093

Cost of sales

16,467

19,115

Gross profit

25,962

28,978

Selling, general and administrative expenses

4,741

5,198

Operating profit

21,220

23,779

Non-operating income

Interest income

3

5

Rental income from real estate

360

354

Miscellaneous income

98

96

Total non-operating income

463

456

Non-operating expenses

Interest expenses

5

5

Rental costs on real estate

85

91

Miscellaneous losses

6

7

Total non-operating expenses

97

104

Ordinary profit

21,586

24,131

Extraordinary income

Gain on sale of non-current assets

50

30

Other

3

1

Total extraordinary income

54

31

Extraordinary losses

Loss on retirement of non-current assets

5

33

Loss on disaster

11

-

Other

0

-

Total extraordinary losses

17

33

Profit before income taxes

21,623

24,128

Income taxes

6,735

7,522

Profit

14,887

16,606

Profit attributable to non-controlling interests

273

442

Profit attributable to owners of parent

14,614

16,164

5

(Quarterly Consolidated Statement of Comprehensive Income)

(Million yen)

FY 2022 Second Quarter

FY 2023 Second Quarter

(April 1, 2022 to

(April 1, 2023 to

September 30, 2022)

September 30, 2023)

Profit

14,887

16,606

Other comprehensive income

Valuation difference on available-for-sale securities

(176)

(127)

Remeasurements of defined benefit plans, net of tax

1

0

Total other comprehensive income

(175)

(126)

Comprehensive income

14,712

16,480

(Comprehensive income attributable to)

Comprehensive income attributable to owners of parent

14,438

16,037

Comprehensive income attributable to non-controlling

273

442

interests

6

(3) Quarterly Consolidated Statement of Cash Flows

(Million yen)

FY 2022 Second Quarter

FY 2023 Second Quarter

(April 1, 2022 to

(April 1, 2023 to

September 30, 2022)

September 30, 2023)

Cash flows from operating activities

Profit before income taxes

21,623

24,128

Depreciation and amortization

2,318

2,290

Amortization of goodwill

269

269

Increase (decrease) in allowance for doubtful accounts

(3)

35

Increase (decrease) in provision for bonuses

(11)

2

Increase (decrease) in retirement benefit liability

63

49

Interest and dividend income

(32)

(28)

Interest expenses

5

5

Loss (gain) on sale and retirement of property, plant and

(45)

2

equipment

Net change in due from/to member dealers at auction

5,684

4,209

Decrease (increase) in trade receivables

100

21

Increase (decrease) in trade payables

179

170

Increase (decrease) in accounts payable-other

(532)

168

Increase (decrease) in deposits received

(757)

(677)

Other, net

(1,627)

(1,924)

Subtotal

27,233

28,724

Interest and dividends received

40

31

Interest paid

(5)

(5)

Income taxes paid

(7,217)

(7,425)

Net cash provided by (used in) operating activities

20,051

21,324

Cash flows from investing activities

Net decrease (increase) in time deposits

(2,000)

-

Purchase of property, plant and equipment

(960)

(1,098)

Proceeds from sale of property, plant and equipment

52

42

Purchase of intangible assets

(241)

(161)

Purchase of investment securities

(1,001)

-

Other, net

(0)

(36)

Net cash provided by (used in) investing activities

(4,150)

(1,254)

Cash flows from financing activities

Net increase (decrease) in short-term borrowings

253

(140)

Proceeds from long-term borrowings

-

880

Repayments of long-term borrowings

(283)

(169)

Guarantee deposits received from member dealers

119

93

Refund of guarantee deposits received from member

(87)

(79)

dealers

Purchase of treasury shares

(1,632)

(12,697)

Proceeds from sale of treasury shares

167

1,024

Decrease (increase) in money trust to acquire treasury

2,026

-

stock

Dividends paid

(9,079)

(8,268)

Dividends paid to non-controlling interests

(111)

(297)

Repayments of finance lease liabilities

(26)

(23)

Net cash provided by (used in) financing activities

(8,653)

(19,676)

Net increase (decrease) in cash and cash equivalents

7,247

394

Cash and cash equivalents at beginning of period

75,480

86,192

Cash and cash equivalents at end of period

82,728

86,586

7

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USS Co. Ltd. published this content on 01 November 2023 and is solely responsible for the information contained therein. Distributed by Public, unedited and unaltered, on 21 November 2023 11:19:05 UTC.