SHIMANO INC. This document has been translated from the Japanese original for reference purposes only. In the event of any discrepancy between this translated document and the Japanese original, the original shall prevail. The Company assumes no responsibility for this translation or for direct, indirect or any other forms of damages arising from the translation.
Summary of Consolidated Financial Results
for the First Half of FY2023 (JGAAP)
(January 1, 2023 - June 30, 2023) [Japanese Standard] | (Consolidated) | July 25, 2023 | |
Company Name: | Shimano Inc. | Stock Exchange: Tokyo, Prime Market | |
Code Number: | 7309 | URL: https://www.shimano.com | |
Representative: | Taizo Shimano, President | ||
Contact: | Takuma Kanai, Executive Officer, General Affairs Administration Dept. | Telephone: +81-72-223-3254 |
and Supervising of Accounting Dept. | ||||||||||||
Date of filing of quarterly report to Ministry of Finance: | August 9, 2023 | Scheduled payment date for dividends: September 4, 2023 | ||||||||||
Supplemental information: | Yes | |||||||||||
Financial results briefing: | Yes | |||||||||||
(Amounts are rounded down to the nearest million yen.) | ||||||||||||
1. Consolidated financial results for the first half of FY2023 (January 1, 2023 - June 30, 2023) | ||||||||||||
(1) Consolidated income information | (The percentages represent the rates of increase (decrease) compared to the corresponding prior period.) | |||||||||||
Net sales | Operating income | Ordinary income | Net income attributable | |||||||||
to owners of parent | ||||||||||||
Million yen | % | Million yen | % | Million yen | % | Million yen | % | |||||
First half of FY2023 | 263,250 | (13.3) | 53,908 | (33.4) | 68,409 | (25.7) | 50,378 | (26.5) | ||||
First half of FY2022 | 303,686 | 14.7 | 80,909 | 15.7 | 92,123 | 24.7 | 68,558 | 22.4 | ||||
(Note) Comprehensive income First half of FY2023: 94,648 million yen (-26.8%) | First half of FY2022: 129,308 million yen (71.2%) | |||||||||||
Basic earnings | Diluted earnings | |||||||||||
per share | per share | |||||||||||
Yen | Yen | |||||||||||
First half of FY2023 | 556.81 | － | ||||||||||
First half of FY2022 | 750.68 | － | ||||||||||
(2) Consolidated balance sheet information | ||||||||||||
Total assets | Net assets | Shareholders' equity | ||||||||||
ratio | ||||||||||||
Million yen | Million yen | % | ||||||||||
First half of FY2023 | 890,633 | 817,908 | 91.7 | |||||||||
FY2022 | 826,413 | 741,095 | 89.6 | |||||||||
(Reference) Shareholders' equity First | half of FY2023: 816,724 | million yen | FY2022: 740,108 million yen |
2. Dividend information
Dividend per share | |||||
1st Quarter | 2nd Quarter | 3rd Quarter | Year-end | Total | |
Yen | Yen | Yen | Yen | Yen | |
FY2022 | － | 117.50 | － | 142.50 | 260.00 |
FY2023 | － | 142.50 | |||
FY2023 (Forecast) | － | 142.50 | 285.00 | ||
(Note) Change in forecasted dividend during the period: None |
3. Forecasted consolidated business performance for FY2023 (January 1, 2023 - December 31, 2023)
(The percentages represent the rates of increase (decrease) compared to the corresponding prior period.)
Net income | Basic earnings | ||||||||
Net sales | Operating income | Ordinary income | attributable to | ||||||
per share | |||||||||
owners of parent | |||||||||
Million yen | % | Million yen | % | Million yen | % | Million yen | % | Yen | |
FY2023 | 450,000 | (28.4) | 70,000 | (58.6) | 93,000 | (47.3) | 69,000 | (46.2) | 763.24 |
(Note) Change in forecasted consolidated business performance during the period: Yes
*Notes
- Changes in significant subsidiaries during the period (Changes in specified subsidiaries due to changes in scope of consolidation): None
- Application of accounting treatment specific to preparation of quarterly consolidated financial statements: None
- Changes in accounting policies, changes in accounting estimates, and retrospective restatement
① Changes in accounting policies in accordance with revision of accounting standards: | None |
② Changes in accounting policies other than ① above: | None |
③ Changes in accounting estimates: | None |
④ Retrospective restatement: | None |
(4) Number of shares of common stock issued | |||||
① | Number of shares of common stock issued at period-end | First half of | 90,460,000 | FY2022 | 91,160,100 |
(including treasury stock): | FY2023 | shares | shares | ||
② | Number of shares of treasury stock at period-end: | First half of | 56,289 | FY2022 | 531,034 |
FY2023 | shares | shares | |||
③ | Average number of shares during the period | First half of | 90,478,026 | First half of | 91,329,328 |
(cumulative from the beginning of the fiscal year): | FY2023 | shares | FY2022 | shares |
This quarterly financial report is outside the scope of quarterly review procedures by certified public accountants or audit corporations.
Explanation regarding the appropriate use of forecasts of business performance and other special items
The forecasts of consolidated business performance and other forward-looking statements contained in this document are based on information currently available to the Company and certain assumptions that management believes reasonable and actual business performance may differ materially from those described in such statements due to various factors. For details of assumptions for the forecasts and other related items, please refer to page 4 of the attached document. Shimano Inc. accepts no liability whatsoever for any direct or consequential loss arising from any use of this document.
Shimano Inc. (7309) Summary of Consolidated Financial Results for the First Half of FY2023 | ||
○Table of contents of the attached document | ||
1. Qualitative Information on Consolidated Financial Performance for the Period under Review | ............................... 2 | |
(1) | Results of Operations | 2 |
(2) | Financial Position | 3 |
(3) | Forecast for the Fiscal Year Ending December 31, 2023 | 4 |
2. Consolidated Financial Statements and Primary Notes | 5 | |
(1) | Consolidated Balance Sheets | 5 |
(2) | Consolidated Statements of Income and Comprehensive Income | 7 |
(3) | Consolidated Statements of Cash Flows | 9 |
(4) | Notes relating to Consolidated Financial Statements | 11 |
(Note concerning Assumption of Going Concern) | 11 | |
(Note on Significant Change in the Amount of Shareholders' Equity) | 11 | |
(Segment Information) | 12 |
1
Shimano Inc. (7309) Summary of Consolidated Financial Results for the First Half of FY2023
1. Qualitative Information on Consolidated Financial Performance for the Period under Review
- Results of Operations
During the first half of fiscal year 2023, the prolonged turmoil in Ukraine, interest rate hikes by the central banks of various countries to tame inflation, financial uncertainty in the U.S. and other factors exerted downward pressure on the global economy.
In Europe, inflation rates slowed down as energy prices fell, and consumer confidence started to pick up although at a low level.
In the U.S., while a default of the U.S. national debt was avoided, personal consumption was sluggish due to uncertainty against a backdrop of political ferment.
In China, normalization of economic activities progressed since the lifting of restrictions on activities.
In Japan, the social situation saw progress in its normalization, as seen in the increased foreign tourists, and economic recovery was supported by wage raise, public spending and continued easing of monetary policies, among others.
In this environment, demand for bicycles and fishing tackle continued to be weak, and for the first half of fiscal year 2023, net sales decreased 13.3% from the same period of the previous year to 263,250 million yen. Operating income decreased 33.4% to 53,908 million yen, ordinary income decreased 25.7% to 68,409 million yen, and net income attributable to owners of parent decreased 26.5% to 50,378 million yen.
Reportable Segment Overview
- Bicycle Components
Although the strong interest in bicycles cooled down, interest in bicycles continued as a long-term trend. On the other hand, market inventories generally remained high, despite ongoing supply and demand adjustments.
Overseas, in the European market, retail sales of completed bicycles were somewhat low, partly due to the impacts from unfavorable weather conditions in early spring. Market inventories generally remained at high levels.
In the North American market, retail sales of completed bicycles remained weak and market inventories were at a consistently high level.
In the Asian, Oceanian and Central and South American markets, although interest in bicycles was firm, sales remained somewhat sluggish due to cooling consumer confidence on account of rising inflation. However, in the Chinese market, sales remained strong, especially for road bikes, owing to the continued popularity of outdoor sports cycling.
In the Japanese market, sales were sluggish as affected by the soaring price of completed bicycles due to yen depreciation and other factors and market inventories remained somewhat high.
Under these market conditions, the Shimano Group received a favorable reception for high-end models for road bikes as a whole, including SHIMANO 105, and sport e-bike components, SHIMANO STEPS series and other products.
As a result, net sales from this segment decreased 17.7% from the same period of the previous year to 204,986 million yen, and operating income decreased 39.5% to 42,093 million yen.
- Fishing Tackle
Although the global high demand for fishing tackle cooled down, interest in fishing continued, having gained recognition again as an outdoor leisure activity.
In the Japanese market, willingness to buy new products was strong among long-time fishing enthusiasts, and demand for high-priced products remained firm.
Overseas, while sales in the North American market softened as demand cooled down, in the European market, sales remained strong backed by stable demand.
In the Asian market, sales continued to be favorable supported by the spread of fishing culture and strong interest in fishing, and coupled with the resumption of economic activity, there arose growing momentum for fishing trips.
In the Australian market, the year started with favorable market conditions, however, sales became somewhat stagnant due to slowing demand.
Under these market conditions, order-taking was brisk for the new spinning reels VANQUISH and the highest-end model lure fishing rods WORLD SHAULA LIMITED, and other products.
As a result, net sales from this segment increased 7.0% from the same period of the previous year to 58,027 million yen, and operating income increased 4.5% to 11,843 million yen.
2
Shimano Inc. (7309) Summary of Consolidated Financial Results for the First Half of FY2023
- Others
Net sales from this segment decreased 4.9% from the same period of the previous year to 236 million yen and operating loss of 28 million yen was recorded, following an operating loss of 7 million yen for the same period of the previous year.
-
Financial Position
Assets, Liabilities and Net Assets
Total assets as of the end of the first half of fiscal year 2023 amounted to 890,633 million yen, an increase of 64,219 million yen compared with the figure as of the previous fiscal year-end. The principal factors included an increase of 61,219 million yen in cash and time deposits, an increase of 7,758 million yen in merchandise and finished goods, and a decrease of 7,218 million yen in notes and accounts receivable-trade.
Total liabilities amounted to 72,724 million yen, a decrease of 12,593 million yen compared with the figure as of the previous fiscal year-end. The principal factors included a decrease of 6,892 million yen in income taxes payable and a decrease of 6,484 million yen in accounts payable-trade.
Net assets amounted to 817,908 million yen, an increase of 76,812 million yen compared with the figure as of the previous fiscal year-end. The principal factors included an increase of 43,060 million yen in foreign currency translation adjustments, an increase of 21,033 million yen in retained earnings, and an increase of 11,588 million yen in treasury stock.
Cash Flows
As of the end of the first half of fiscal year 2023, cash and cash equivalents amounted to 484,638 million yen, an increase of 67,371 million yen compared with the figure as of the previous fiscal year-end.
(Cash Flows from Operating Activities)
Net cash provided by operating activities amounted to 57,401 million yen compared with 48,615 million yen provided for the same period of the previous year. The main cash inflows included income before income taxes amounting to 68,086 million yen and depreciation and amortization amounting to 11,526 million yen. The main cash outflows included income taxes paid amounting to 26,021 million yen.
(Cash Flows from Investing Activities)
Net cash used in investing activities amounted to 5,018 million yen compared with 13,698 million yen used for the same period of the previous year. The main cash inflows included proceeds from maturities of time deposits amounting to 9,624 million yen. The main cash outflows included acquisition of property, plant and equipment amounting to 8,473 million yen, purchases of time deposits amounting to 2,966 million yen, and acquisition of intangible assets amounting to 2,776 million yen.
(Cash Flows from Financing Activities)
Net cash used in financing activities amounted to 19,361 million yen compared with 36,339 million yen used for the same period of the previous year. The main cash outflows included cash dividends to shareholders amounting to 12,926 million yen and acquisition of treasury stock amounting to 4,897 million yen.
3
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Shimano Inc. published this content on 25 July 2023 and is solely responsible for the information contained therein. Distributed by Public, unedited and unaltered, on 25 July 2023 07:26:02 UTC.
