FY2020 Financial Results

Tsutomu Hiranaka, President & COO

Yorozu Corporation

This is an internal English translation of the YOROZU FY2020 Financial Report issued in the Japanese language and is provided solely for the convenience of English speaking readers. In case of discrepancy the Japanese version prevails.

Contents

Ⅰ . FY2020 Results

Ⅱ. FY2021 Forecast

Ⅲ. New Mid-Term Business Plan (YSP2023)

Ⅳ. Shareholder Return

(Explained in the New Mid-Term Business Plan)

© YOROZU CORPORATION. 2021 All Rights Reserved.

1

1

Ⅰ . FY2020 Results

Ⅱ. FY2021 Forecast

Ⅲ. New Mid-Term Business Plan (YSP2023)

Ⅳ. Shareholder Return

(Explained in the New Mid-Term Business Plan)

© YOROZU CORPORATION. 2021 All Rights Reserved.

2

FY2020 Consolidated Financial Summary

Million yen

1H FY2020

2H FY2020

FY2020 Full Year

Sales

43,930

74,933

118,863

Operating Income

- 4,160

4,537

377

Operating Income

- 9.5％

6.1%

0.3%

Ratio

Factors that pushed up 2H results

◆Effect of fixed costs reduction through swift optimization of production capacity to align with production volume, in addition to profit increase

as a result of production recovery in the 2nd half of FY2020

◆Effect of cost reduction through our hard efforts in Emergency Profit Kaizen activities, particularly "Won't waste, won't buy," that we had been working on since the 2nd half of FY2019

◆Rapid recovery of production at China sites contributed to the upturn

© YOROZU CORPORATION. 2021 All Rights Reserved.

3

2

FY2020 Consolidated Financial Summary

(year-on-year)

FY2020

Against

Million yen

FY2019

FY2020

Year-on-Year

Latest

latest

forecast*2

forecast

Sales

157,680

118,863

- 24.6%

118,000

+0.7％

Operating Income

2,206

377

- 82.9%

200

+88.6％

Ordinary Income

770

1,449

+88.1%

1,300

+11.5％

Net Income *1

- 12,933

- 6,195

ー

- 8,000

ー

*1 Net income attributable to parent company shareholders

*2 Estimated figures as of March 25, 2021

FY2019

FY2020

Difference

Percentage

A

B

B-A

change

Net Income per Share

- 544.05 yen

- 259.07 yen

284.98 yen

ー

Exchange Rate Applied

109.03 yen/$

106.76 yen/$

- 2.27 yen/$

- 2.1%

  • Sales: Decline caused by production reduction on a global scale due to COVID-19 outbreak
  • Operating income: While showing decline, profits increased due to recovery in production in the 2nd half, and profits were secured through fixed costs reduction efforts
  • Ordinary income: Profit margin expanded thanks to exchange gain and employment adjustment subsidies
  • Net income: Loss from impairment accounting of tangible fixed assets in the U.S. and Thailand, and corporate tax burden due to reversal of deferred tax assets

© YOROZU CORPORATION. 2021 All Rights Reserved.

4

Consolidated Sales by Customer（FY2019 vs. FY2020)

Million yen

Million yen

180,000

Customer

FY2019

(%)

FY2020

(%)

157,680

160,000

Nissan Gr *

104,453

66.2%

75,994

63.9%

Honda Gr

24,935

15.8%

20,070

16.9%

140,000

118,863

Toyota Gr

8,185

5.2%

7,191

6.0%

Toyota

120,000

Isuzu

4,917

3.1%

4,188

3.5%

Honda

-994

100,000

（-12.1％）

Mazda

4,705

3.0%

2,855

2.4%

Toyota

-4,865

Kubota

2,259

1.4%

2,027

1.7%

Honda

（-

19.5％）

80,000

VW

2,596

1.6%

1,576

1.3%

-28,459

Daimler

667

0.4%

1,539

1.3%

60,000

Nissan

（-27.2％）

Suzuki

1,851

1.2%

1,068

0.9%

40,000

Nissan

Others

3,112

2.1%

2,355

2.1%

Total

157,680

100.0%

118,863

100.0%

20,000

* Includes sales to Renault and Mitsubishi

0

Significant decline in sales due to the global spread of COVID-19

Percentage of sales to Nissan decreased as a result of sales

FY2019 actual

FY2020 actual

increase to Honda and Toyota

5

© YOROZU CORPORATION. 2021 All Rights Reserved.

3

Analysis of Impact on Consolidated Operating Income

Million yen

(FY2019 vs. FY2020)

10,000

8,000

Sales

decrease

966

192

171

Consolidation

6,000

COVID-19

Exchange adjustment

rate effect

related

1,493 extraordinary

Depreciation

loss

4,000

cost

2,769

－6,968

2,000

Dies and

Cost-saving

equipment

2,206

efforts

－452

377

0

FY2019 results

Operating income (－1,829）

FY2020 results

Despite loss due to the enormous impact of COVID-19 on the sales, we have

made untiring efforts to save costs and managed to secure profits

© YOROZU CORPORATION. 2021 All Rights Reserved.

6

Sales and Operating Income by Region

Before Consolidation Adjustment FY2019 vs. FY2020

◆Sales

Japan

Americas

Asia

Changes

-10,179

-22,742

-8,323

Million yen

% of change

100,000

-20.4％

-33.7％

-15.8％

67,571

52,563

50,000

49,977

39,798

44,829

44,240

0

FY19

FY20

FY19

FY20

FY19

FY20

◆Operating Income

-619

-602

-779

Million yen

-35.3％

-31.7％

-35.6％

5,000

1,755

2,186

1,407

1,136

0

-1,900

-5,000

-2,502

FY19

FY20

FY19

FY20

FY19

FY20

Sales and profits declined from the previous year level in all segments due to COVID-19 impact

  • Japan: Despite drop in parts sales and royalty income, our cost-saving efforts helped restore profits
  • The Americas: Massive production reduction due to long-term shutdown in the 1st half led to net loss despite making recovery in the 2nd half
  • Asia: Recovery in the 2nd half helped bring the bottom line back in black

© YOROZU CORPORATION. 2021 All Rights Reserved.

7

4

Financial Standing

for the year ended March 31, 2021

(Million Yen)

Mar. 31, 2020 A

Mar. 31, 2021 B Year on Year (B-A)

Net Worth

59,608

53,383

-6,225

-10.4％

Equity Ratio

42.7％

39.6%

--

--

D/E Ratio

Interest-bearing Debt

0.68

40,389

0.84

44,769

4,380

10.8%

Net D/E Ratio

0.36

0.29

Net Interest-bearing Debt

21,370

15,509

-5,861

-27.4%

Total Asset

139,700

134,723

-4,977

-3.6%

(Million Yen)

FY2019 A

FY2020 B

Year on Year (B-A)

(Full Term)

(Full Term)

Cash Flow from

10,824

13,029

2,205

20.5%

Operating Activities

Cash Flow from

-9,584

-6,859

2,725

--

Investing Activities

Cash Flow from

-7,718

3,775

11,493

--

Financing Activities

The net interest-bearing debt and the net D/E ratio decreased while cash on hand was secured. FCF was positive due to suppressed capital investment during the covid-19 pandemic.

© YOROZU CORPORATION. 2021 All Rights Reserved.

8

(Reference) Consolidated Balance Sheet Summary

for the year ended March 31, 2021

Million yen

Mar. 31,

Mar. 31,

Difference

2020 A

2021 B

B-A

Current Assets

58,386

63,721

+5,335

Fixed Assets

81,313

71,001

-10,312

Total Assets

139,700

134,723

-4,977

Current Liabilities

37,550

39,331

+1,781

Fixed Liabilities

27,598

29,653

+2,055

Total Liabilities

65,149

68,984

+3,835

Shareholders' Equity

67,677

61,295

-6,382

Other Accumulated

-8,068

-7,912

+156

Comprehensive Income

Non-controlling

14,941

12,355

-2,586

Interest, etc.

Total Net Assets

74,550

65,738

-8,812

Total Liabilities and Net

139,700

134,723

-4,977

Assets

© YOROZU CORPORATION. 2021 All Rights Reserved.

Cash & bank deposit

+10,240

Notes & accounts receivable +247

Inventories

-3,639

Other current assets

-1,513

Tangible fixed assets

-11,383

Investment securities

+2,241

Deferred tax assets

-1,381

Notes and accounts payable +1,372 Electronically recorded obligations -852

Short term debts

-2,936

Long term debts due within 1 year

＋5,185

Accrued expenses

-1,124

Long term debts

+2,740

Lease debts

-648

Net income (loss)

-6,195

Dividend payment

-309

Other securities

Valuation difference +1,389 Foreign currency translation

adjustment-1,180

9

5

This is an excerpt of the original content. To continue reading it, access the original document here.

Attachments

  • Original document
  • Permalink

Disclaimer

YOROZU Corporation published this content on 16 June 2021 and is solely responsible for the information contained therein. Distributed by Public, unedited and unaltered, on 16 June 2021 06:25:01 UTC.