Consolidated Financial Results

for the Fiscal Year Ended March 31, 2023

＜Under Japanese GAAP＞

April 27, 2023

Company name: Stanley Electric Co., Ltd.

Securities code: 6923

(URL: https://www.stanley.co.jp/)

Stock exchange listing: Tokyo Stock Exchange

Representative: Yasuaki Kaizumi, President and Representative Director

Contact: Ikuo Kuwata, Executive Officer, Executive General Manager, Accounting & Finance Control Division

Phone: +81 3 6866 2222

Scheduled date of annual general meeting of shareholders: June 29, 2023

Scheduled date of commencement of dividend payments: June 8, 2023

Scheduled date of filing of the annual securities report (Yukashouken Houkokusho): June 29, 2023

Availability of supplementary briefing material on financial results: Yes

Schedule of financial results briefing session: Yes (for securities analysts and institutional investors)

(Figures are rounded down to the nearest million yen.)

1. Consolidated Financial Results for the Fiscal Year Ended March 31, 2023 (from April 1, 2022 to March 31, 2023)

(1) Consolidated Results of Operations

(% figures

denote year-on-year

change)

Net Sales

Operating Income

Ordinary Income

Net Income Attributable to

Owners of Parent

Fiscal year ended

Millions of Yen

%

Millions of Yen

%

Millions of Yen

%

Millions of Yen

%

March 31, 2023

437,790

14.4

34,926

25.9

44,872

22.2

26,496

23.6

March 31, 2022

382,561

6.4

27,743

(22.7)

36,714

(11.1)

21,445

(6.4)

Note: Comprehensive income: Fiscal year ended March 31, 2023: ¥45,412 million [(20.3)%]

Fiscal year ended March 31, 2022: ¥56,971 million [ (3.1)%]

Net Income per

Net Income per

Ratio of Ordinary

Ratio of Operating

Share

Share

Return on Equity

Income to Total

Income to Net Sales

(Basic)

(Diluted)

Assets

Fiscal year ended

Yen

Yen

%

%

%

March 31, 2023

162.32

-

5.8

7.4

8.0

March 31, 2022

133.75

133.73

5.1

6.5

7.3

(Reference) Equity in losses (earnings) of affiliates: Fiscal year ended March 31, 2023: ¥3,123 million Fiscal year ended March 31, 2022: ¥2,089 million

(2) Consolidated Financial Position

Total Assets

Net Assets

Shareholders' Equity Ratio

Net Assets per Share

Fiscal year ended

Millions of Yen

Millions of Yen

%

Yen

March 31, 2023

629,611

536,128

75.6

2,875.15

March 31, 2022

585,382

488,962

74.2

2,715.84

(Reference) Equity: As of March 31, 2023: ¥476,217 million; As of March 31, 2022: ¥434,461 million

(3) Consolidated Cash Flows

Cash Flows from Operating

Cash Flows from Investing

Cash Flows from Financing

Cash and Cash Equivalents at

Activities

Activities

Activities

End of Period

Fiscal year ended

Millions of Yen

Millions of Yen

Millions of Yen

Millions of Yen

March 31, 2023

76,275

(56,426)

(3,821)

130,881

March 31, 2022

36,881

(20,257)

(13,485)

112,004

- 1 -

2. Dividends

Cash Dividends per Share

Total Cash

Ratio of

Payout Ratio

Dividends to

End of First

End of Second

End of Third

Dividends

Year-end

Annual

(Consolidated)

Net Assets

(Total)

Quarter

Quarter

Quarter

(Consolidated)

Yen

Yen

Yen

Yen

Yen

Millions of

%

%

Yen

Fiscal year ended

-

25.00

-

25.00

50.00

8,013

37.4

1.9

March 31, 2022

Fiscal year ended

-

25.00

-

25.00

50.00

8,140

30.8

1.8

March 31, 2023

Fiscal year ending

March 31, 2024

-

26.00

-

26.00

52.00

33.8

(Forecast)

3. Consolidated Business Forecasts for the Fiscal Year Ending March 31, 2024 (from April 1, 2023 to March 31, 2024)

(% figures denote year-on-year change)

Net Sales

Operating Income

Ordinary Income

Net Income Attributable

Net Income

to Owners of Parent

per Share

Millions of Yen

%

Millions of Yen

%

Millions of Yen

%

Millions of Yen

%

Yen

First half

217,000

1.8

11,000

(24.8)

14,500

(27.7)

6,000

(41.8)

36.22

Full year

464,000

6.0

35,000

0.2

42,500

(5.3)

25,500

(3.8)

153.96

Note: The Company plans to change the basis for recording sales from the fiscal year ending March 31, 2024. Year-on-year percentage changes are based on comparison with the figures before retrospective application. For details, please refer to "Future Outlook" on page 3.

4. Others

  1. Changes in significant subsidiaries during the period (changes in specified subsidiaries resulting in changes in scope of consolidation): No
  2. Changes in accounting policies, changes in accounting estimates, and corrections of errors
    1. Changes in line with revision to accounting standards: Yes (Application of "ASC 842 Leases")
      Effective from the beginning of the fiscal year ended March 31, 2023, the Company's consolidated oversea subsidiaries applying U.S. GAAP had adopted FASB Accounting Standards Codification (ASC) 842 Leases. Accordingly, all leases under lease transactions by lessees at those subsidiaries are, in principle, recognized as assets and liabilities on the balance sheet.
      The impact of this change on the consolidated financial statements for the fiscal year ended March 31, 2023 is immaterial.
    2. Other changes in accounting policies: No
    3. Changes in accounting estimates: No
    4. Corrections of errors: No
  4. Number of shares issued and outstanding (common stock)
    1. Number of shares issued and outstanding at the end of the period (including treasury stock)

Fiscal year ended March 31, 2023:

173,000,000 shares

Fiscal year ended March 31, 2022:

173,000,000 shares

2)

Number of shares of treasury stock at the end of the period

Fiscal year ended March 31, 2023:

7,367,901 shares

Fiscal year ended March 31, 2022:

13,026,964 shares

3)

Average number of shares during the period

Fiscal year ended March 31, 2023:

163,236,459 shares

Fiscal year ended March 31, 2022:

160,341,336 shares

- 2 -

[Reference] Overview of Non-consolidated Financial Results

Non-consolidated Financial Results for the Fiscal Year Ended March 31, 2023 (from April 1, 2022 to March 31, 2023)

(1) Non-consolidated Results of Operations

(% figures denote year-on-year change)

Net Sales

Operating Income

Ordinary Income

Net Income

Fiscal year ended

Millions of Yen

%

Millions of Yen

%

Millions of Yen

%

Millions of Yen

%

March 31, 2023

155,955

(2.8)

(619)

-

25,985

37.6

23,657

43.6

March 31, 2022

160,429

0.6

(282)

-

18,891

(33.6)

16,473

(23.1)

Net Income per Share

Net Income per Share

(Basic)

(Diluted)

Fiscal year ended

Yen

Yen

March 31, 2023

144.93

-

March 31, 2022

102.74

102.73

(2) Non-consolidated Financial Position

Total Assets

Net Assets

Shareholders' Equity Ratio

Net Assets per Share

Fiscal year ended

Millions of Yen

Millions of Yen

%

Yen

March 31, 2023

289,687

238,300

82.1

1,436.16

March 31, 2022

265,089

208,472

78.5

1,300.18

(Reference) Equity: As of March 31, 2023: ¥237,874 million; As of March 31, 2022: ¥207,994 million

  • These financial statements are outside the scope of audit by certified public accountants or audit corporations.
  • Explanation for the appropriate use of performance forecasts and other special notes:

Future Outlook

The performance of the global economy is expected to improve owing to the effects of various policies based on living with COVID-19. On the other hand, various risks still persist, such as the global shortage of semiconductors and soaring raw material prices. In the operation of its business, the Company will take in full consideration of these risks and other relevant factors.

In this business environment, the Stanley Group's financial results for the fiscal year ending March 31, 2024 are projected to be net sales of 464.0 billion yen (up 6.0% year on year), operating income of 35.0 billion yen (up 0.2% year on year), ordinary income of 42.5 billion yen (down 5.3% year on year), and net income attributable to owners of parent of 25.5 billion yen (down 3.8% year on year).

The Company made these projections in forecasts based on currently available economic and business information; as such, these projections include certain risks and other uncertainties, and the Company does not intend to guarantee the achievement of these projections. Actual business performance may differ significantly from current projections resulting from various critical factors.

[Note] Plan change in revenue recognition policy from the fiscal year ending March 31, 2024 Previously, the Company recorded technical assistance fee income from licensees as "royalty income"

under non-operating income. From the fiscal year ending March 31, 2024, the Company plans to record it under "net sales."

As for the impact of the above change on the forecasts for the next fiscal year, net sales and operating income are projected to increase by 1.8 billion yen, respectively, compared with the figures before the change. There will be no impact on ordinary income and income before income taxes.

- 3 -

5. Consolidated Financial Statements and Major Notes

(1) Consolidated Balance Sheets

(Millions of Yen)

As of March 31, 2022

As of March 31, 2023

Assets

Current assets

Cash and deposits

150,454

173,408

Notes and accounts receivable-trade

68,027

69,817

Securities

300

-

Inventories

49,308

46,226

Other

31,240

31,990

Allowance for doubtful accounts

(34)

(7)

Total current assets

299,295

321,435

Noncurrent assets

Property, plant and equipment

Buildings and structures, net

74,891

73,148

Machinery, equipment and vehicles, net

62,365

63,908

Tools, furniture and fixtures, net

24,101

22,671

Land

15,238

14,795

Lease assets, net

2,398

3,429

Construction in progress

15,894

16,936

Total property, plant and equipment

194,890

194,889

Intangible assets

Goodwill

748

704

Other

8,181

7,364

Total intangible assets

8,930

8,069

Investments and other assets

Investment securities

74,681

98,863

Net defined benefit asset

890

584

Deferred tax assets

2,772

2,645

Other

3,922

3,123

Total investments and other assets

82,265

105,217

Total noncurrent assets

286,086

308,175

Total assets

585,382

629,611

- 4 -

(Millions of Yen)

As of March 31, 2022

As of March 31, 2023

Liabilities

Current liabilities

Notes and accounts payable-trade

39,246

37,902

Lease obligations

802

1,348

Income taxes payable

3,153

3,234

Provision for product warranties

10,478

4,522

Provision for bonuses

4,650

5,087

Provision for directors' bonuses

177

342

Other

16,131

17,412

Total current liabilities

74,641

69,849

Noncurrent liabilities

Bonds payable

10,000

10,000

Lease obligations

1,780

2,820

Deferred tax liabilities

8,356

7,820

Provision for directors' retirement benefits

51

53

Other provisions

-

274

Net defined benefit liability

950

2,011

Asset retirement obligations

494

496

Other

145

155

Total noncurrent liabilities

21,779

23,633

Total liabilities

96,420

93,483

Net assets

Shareholders' equity

Capital stock

30,514

30,514

Capital surplus

29,869

29,852

Retained earnings

354,782

373,682

Treasury stock

(32,313)

(18,938)

Total shareholders' equity

382,854

415,111

Accumulated other comprehensive income

Valuation difference on available-for-sale

25,658

26,163

securities

Foreign currency translation adjustment

23,739

34,898

Remeasurements of defined benefit plans

2,209

44

Total accumulated other comprehensive

51,607

61,106

income

Subscription rights to shares

478

425

Non-controlling interests

54,022

59,485

Total net assets

488,962

536,128

Total liabilities and net assets

585,382

629,611

- 5 -

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Stanley Electric Co. Ltd. published this content on 22 June 2023 and is solely responsible for the information contained therein. Distributed by Public, unedited and unaltered, on 22 June 2023 09:16:04 UTC.