Consolidated Financial Results

for the Six Months Ended September 30, 2022

SAKAI HEAVY INDUSTRIES, LTD.

Stock code: 6358

URL https://www.sakainet.co.jp/en

November 11, 2022

Summary of Consolidated Financial Results

(Amounts less than one million yen are rounded down)

1. Consolidated financial results for the six months ended September 30, 2022 (from April 1, 2022 to September 30, 2022)

(1) Consolidated operating results (cumulative)

Percentages indicate year-on-year changes

Net sales

Operating profit

Ordinary profit

Profit attributable to

Earnings per

Diluted earnings

owners of parent

share

per share

Millions of yen

%

Millions of yen

%

Millions of yen

%

Millions of yen

%

Yen

Yen

Six months ended September 30, 2022

14,891

14.7

1,067

47.2

1,095

49.5

818

60.8

193.92

-

Six months ended September 30, 2021

12,987

27.8

725

279.2

732

332.8

509

-

119.52

-

(2) Consolidated financial position

Total assets

Net assets

Equity ratio

Millions of yen

Millions of yen

%

As of September 30, 2022

41,212

24,762

59.9

As of March 31, 2022

37,858

23,161

61.1

2. Cash dividends

Annual dividends per share

1st quarter-end

2nd quarter-end

3rd quarter-end

Fiscal year-end

Total

Yen

Yen

Yen

Yen

Yen

Year ended March 31, 2022

-

60.00

-

105.00

165.00

Year ending March 31, 2023

-

80.00

Year ending March 31, 2023 (Forecast)

-

100.00

180.00

3. Forecast of consolidated financial results for the year ending March 31, 2023 (from April 1, 2022 to March 31, 2023)

Percentages indicate year-on-year changes

Net sales

Operating profit

Ordinary profit

Profit attributable to

Earnings per share

owners of parent

Millions of yen

%

Millions of yen

%

Millions of yen

%

Millions of yen

%

Yen

Full year

30,000

12.8

2,020

46.0

2,050

45.6

1,520

6.5

360.08

1

Highlights of Consolidated Business Performance

1. Summary of Consolidated Business Performance for the Six Months Ended September 30, 2022

  1. Consolidated net sales : ¥14,891 million, up 14.7% YoY

Overseas sales was expanded by handling supply chain issues.

2) Operating profit

: ¥1,067 million, up 47.2% YoY

Profit structure reform made progress, especially in overseas business.

3) Sales in Japan

: ¥7,181 million, up 3.1% YoY

Sales remain firm against the backdrop of measures to accelerate national land resilience.

4) Sales in North America: ¥3,307 million, up 43.9% YoY

Strong recovery in demand made progress against the backdrop of robust investment in construction.

5) Sales in Asia

: ¥4,119 million, up 24.9% YoY

In addition to the shift to demand recovery in the Indonesian market, Vietnam market was strong.

2

Highlights of Consolidated Business Performance

2. Adapting to a Changing Business Environment

  1. Shifting to business management with a focus on a sound capital policy
  1. Formulating the medium-term management policy with the goals of achieving net sales of ¥30.0 billion, operating profit of ¥3.1 billion, ROE of 8%
    Six Months ended September 30, 2022 : Net sales of ¥14.89 billion, operating profit of ¥1.06 billion, ROE of 6.8%
    Fiscal year ending March 31, 2023 (Forecast): Net sales of ¥30.0 billion, operating profit of ¥2.02 billion, ROE of 6.4%
  2. Building a sustainable management structure by ESG and DX
  1. Adaptability to change
  1. Dealing with volatile demand
  • Inventories of ¥8,061 million (up 19.7% YoY, inventory turnover was reduced by 0.10 times)
    Reducing parts stockout risk by reviewing inventory levels of long delivery parts

(2) Strengthening product supply capabilities

  • Enhancement of supply chain (review of suppliers and dual sourcing)
  • Expansion of domestic production capacity (Increasing in production lines)

(3) Reforming our profit structure in the wake of rising of manufacturing component prices and transportation costs

  • Penetration of sales price revisions
  • Transportation cost reductions through improving efficiency

3

Highlights of Consolidated Business Performance

3. Mid- to Long-Term Growth Strategy

1) Make more significant inroads into the Asian market:

Expand the ASEAN market centered on our Indonesian hub

2) Expand the scope of overseas business:

Enter the overseas market for road maintenance equipment

3) Pursue business opportunities in North America:

Increase our market share through niche marketing

4) Start developing next-generation businesses:

Focus on developing emergency brakes, compaction management systems, and autonomous vibratory rollers

4. Outlook for Business Environment

1) Japan

Demand for construction machinery is projected to remain strong, buoyed by the Japanese

government's ¥15-trillion initiative to accelerate national land resilience over the next five years to prevent and mitigate natural disasters.

2) Overseas

Overseas construction machinery demand is firm with infrastructure investment totaling $1.2 trillion planned in the U.S., infrastructure investment and mine development becoming active in ASEAN and emerging countries, among other factors, although the demand has repeatedly fluctuated amid a rapidly changing global situation.

4

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

Attachments

  • Original Link
  • Original Document
  • Permalink

Disclaimer

SAKAI Heavy Industries Ltd. published this content on 01 December 2022 and is solely responsible for the information contained therein. Distributed by Public, unedited and unaltered, on 01 December 2022 02:33:00 UTC.