STANLEY ELECTRIC CO., LTD. Consolidated Financial Results
for the Six Months Ended September 30, 2023
＜Under Japanese GAAP＞
October 31, 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 filing of the quarterly financial report (Shihanki Houkokusho): November 10, 2023
Scheduled date of commencement of dividend payments: November 30, 2023
Availability of supplementary briefing material on quarterly results: Yes
Schedule of quarterly 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 Six Months Ended September 30, 2023 (from April 1, 2023 to September 30, 2023)
(1) Consolidated Results of Operations (cumulative)
(% figures | denote year-on-year | change.) | ||||||
Net Sales | Operating Income | Ordinary Income | Net Income Attributable to | |||||
Owners of Parent | ||||||||
Six months ended | Millions of Yen | % | Millions of Yen | % | Millions of Yen | % | Millions of Yen | % |
September 30, 2023 | 226,163 | 5.7 | 14,077 | (9.1) | 20,186 | 0.7 | 8,015 | (22.2) |
September 30, 2022 | 213,959 | 19.0 | 15,488 | 13.9 | 20,052 | 23.8 | 10,302 | 10.4 |
Note: Comprehensive income: Six months ended September 30, 2023: ¥50,564 million [21.7%]
Six months ended September 30, 2022: ¥41,535 million [166.1%] | ||
Net Income per Share | Net Income per Share | |
(Basic) | (Diluted) | |
Six months ended | Yen | Yen |
September 30, 2023 | 48.78 | 48.78 |
September 30, 2022 | 64.40 | - |
Note: Effective from the three months ended June 30, 2023, the Company changed the method of presentation. Year-on-year percentage changes are based on comparison with the figures after reclassification to reflect the change.
(2) Consolidated Financial Position
Total Assets | Net Assets | Shareholders' Equity Ratio | |
Millions of Yen | Millions of Yen | % | |
Six months ended | 687,953 | 571,942 | 74.3 |
September 30, 2023 | |||
Fiscal year ended | 629,611 | 536,128 | 75.6 |
March 31, 2023 | |||
(Reference) Equity: As of September 30, 2023: ¥511,243 million; As of March 31, 2023: ¥476,217 million |
2. Dividends
Cash Dividends per Share | |||||
End of First Quarter | End of Second Quarter | End of Third Quarter | Year-end | Annual | |
Yen | Yen | Yen | Yen | Yen | |
Fiscal year ended | - | 25.00 | - | 25.00 | 50.00 |
March 31, 2023 | |||||
Fiscal year ending | - | 27.00 | |||
March 31, 2024 | |||||
Fiscal year ending | |||||
March 31, 2024 | - | 27.00 | 54.00 | ||
(Forecast) |
Note: Revision to the dividend forecast from recently released figures: Yes
- 1 -
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 | |
Full year | 464,000 | 5.6 | 35,000 | (4.7) | 42,500 | (5.3) | 25,500 | (3.8) | 155.30 |
Note: Revision to the consolidated business forecasts from recently released figures: No
Effective from the three months ended June 30, 2023, the Company changed the method of presentation. Year-on-year percentage changes are based on comparison with the figures after reclassification to reflect the change.
4. Others
- Changes in significant subsidiaries during the period (changes in specified subsidiaries resulting in changes in scope of consolidation): No
- Adoption of special accounting treatment for preparing quarterly consolidated financial statements: No
- Changes in accounting policies, changes in accounting estimates, and corrections of errors
- Changes in line with revision to accounting standards: No
- Other changes in accounting policies: No
- Changes in accounting estimates: No
- Corrections of errors: No
- Number of shares issued and outstanding (common stock)
- Number of shares issued and outstanding at the end of the period (including treasury stock)
Six months ended September 30, 2023: | 171,200,000 shares | |
Fiscal year ended March 31, 2023: | 173,000,000 shares | |
2) | Number of shares of treasury stock at the end of the period | |
Six months ended September 30, 2023: | 7,152,422 shares | |
Fiscal year ended March 31, 2023: | 7,367,901 shares | |
3) | Average number of shares during the period | |
Six months ended September 30, 2023: | 164,329,411 shares | |
Six months ended September 30, 2022: | 159,978,068 shares |
- These quarterly financial statements are outside the scope of quarterly review by certified public accountants or audit corporations.
- Explanation for the appropriate use of performance forecasts and other special notes:
In the six months ended September 30, 2023, net sales and operating income exceeded our forecasts due to an increase in automobile production as well as the positive effect of foreign exchange rates. Ordinary income also exceeded our forecast due to a foreign exchange gain resulting from the change in foreign exchange rates. While net income attributable to owners of parent exceeded our forecast, impairment losses and a loss on retirement of noncurrent assets were recorded in line with the revision of existing facilities in order to introduce new facilities with higher productivity, thereby promoting asset efficiency.
From the third quarter of the fiscal year ending March 31, 2024 onward, it is expected that automobile production will remain generally robust globally and the positive effect of foreign exchange rates will continue. However, the impact of lower production in China is also expected to continue. Therefore, we made no changes to the consolidated business forecasts for the fiscal year ending March 31, 2024, announced on April 27, 2023.
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.
- 2 -
5. Quarterly Consolidated Financial Statements and Major Notes
(1) Quarterly Consolidated Balance Sheets
(Millions of Yen) | ||
As of March 31, 2023 | As of September 30, 2023 | |
Assets | ||
Current assets | ||
Cash and deposits | 173,408 | 193,318 |
Notes and accounts receivable-trade | 70,317 | 78,843 |
Inventories | 46,226 | 56,482 |
Other | 31,490 | 28,898 |
Allowance for doubtful accounts | (7) | (14) |
Total current assets | 321,435 | 357,529 |
Noncurrent assets | ||
Property, plant and equipment | ||
Buildings and structures, net | 73,148 | 76,703 |
Machinery, equipment and vehicles, net | 63,908 | 66,341 |
Tools, furniture and fixtures, net | 22,671 | 17,656 |
Land | 14,795 | 14,973 |
Lease assets, net | 3,429 | 3,384 |
Construction in progress | 16,936 | 11,475 |
Total property, plant and equipment | 194,889 | 190,534 |
Intangible assets | ||
Goodwill | 704 | 726 |
Other | 7,364 | 8,073 |
Total intangible assets | 8,069 | 8,799 |
Investments and other assets | ||
Investment securities | 98,863 | 123,595 |
Net defined benefit asset | 584 | 807 |
Deferred tax assets | 2,645 | 3,510 |
Other | 3,123 | 3,175 |
Total investments and other assets | 105,217 | 131,089 |
Total noncurrent assets | 308,175 | 330,423 |
Total assets | 629,611 | 687,953 |
- 3 -
Liabilities Current liabilities
Notes and accounts payable-trade Current portion of bonds payable Lease obligations
Income taxes payable Provision for product warranties Provision for bonuses Provision for directors' bonuses Other
Total current liabilities Noncurrent liabilities
Bonds payable Lease obligations Deferred tax liabilities
Provision for directors' retirement benefits Other provisions
Net defined benefit liability Asset retirement obligations Other
Total noncurrent liabilities Total liabilities
Net assets Shareholders' equity
Capital stock Capital surplus Retained earnings Treasury stock
Total shareholders' equity Accumulated other comprehensive income
Valuation difference on available-for-sale securities
Foreign currency translation adjustment Remeasurements of defined benefit plans Total accumulated other comprehensive income
Subscription rights to shares Non-controlling interests Total net assets
Total liabilities and net assets
(Millions of Yen) | |
As of March 31, 2023 | As of September 30, 2023 |
37,902 | 43,307 |
- | 10,000 |
1,348 | 1,552 |
3,234 | 4,590 |
4,522 | 5,232 |
5,087 | 5,261 |
342 | 142 |
17,412 | 25,309 |
69,849 | 95,396 |
10,000 | - |
2,820 | 3,038 |
7,820 | 14,849 |
53 | 53 |
274 | 344 |
2,011 | 1,683 |
496 | 476 |
155 | 169 |
23,633 | 20,614 |
93,483 | 116,010 |
30,514 | 30,514 |
29,852 | 29,852 |
373,682 | 372,820 |
(18,938) | (18,859) |
415,111 | 414,328 |
26,163 | 42,926 |
34,898 | 54,003 |
44 | (14) |
61,106 | 96,915 |
425 | 467 |
59,485 | 60,231 |
536,128 | 571,942 |
629,611 | 687,953 |
- 4 -
-
Quarterly Consolidated Statements of Income and Comprehensive Income Quarterly Consolidated Statements of Income
Six-month period
(Millions of Yen) | ||
Six months ended | Six months ended | |
September 30, 2022 | September 30, 2023 | |
Net sales | 213,959 | 226,163 |
Cost of sales | 175,513 | 188,456 |
Gross profit | 38,445 | 37,707 |
Selling, general and administrative expenses | 22,957 | 23,629 |
Operating income | 15,488 | 14,077 |
Non-operating income | ||
Interest income | 1,077 | 2,159 |
Dividends income | 617 | 1,113 |
Equity in earnings of affiliates | 1,358 | 1,232 |
Foreign exchange gains | 1,289 | 1,546 |
Miscellaneous income | 493 | 373 |
Total non-operating income | 4,836 | 6,424 |
Non-operating expenses | ||
Interest expenses | 75 | 75 |
Foreign withholding tax | 62 | 65 |
Commission expenses | - | 90 |
Miscellaneous loss | 134 | 85 |
Total non-operating expenses | 272 | 316 |
Ordinary income | 20,052 | 20,186 |
Extraordinary income | ||
Gain on sales of noncurrent assets | 57 | 70 |
Gain on sales of investment securities | 26 | 0 |
Total extraordinary income | 84 | 70 |
Extraordinary losses | ||
Impairment losses | 304 | 1,867 |
Loss on retirement of noncurrent assets | 440 | 2,193 |
Provision for environmental measures | - | 69 |
Total extraordinary losses | 745 | 4,130 |
Income before income taxes | 19,391 | 16,126 |
Income taxes | 4,992 | 5,198 |
Net income | 14,399 | 10,927 |
Net income attributable to non-controlling interests | 4,096 | 2,912 |
Net income attributable to owners of parent | 10,302 | 8,015 |
- 5 -
Quarterly Consolidated Statements of Comprehensive Income
Six-month period
(Millions of Yen) | ||
Six months ended | Six months ended | |
September 30, 2022 | September 30, 2023 | |
Net income | 14,399 | 10,927 |
Other comprehensive income | ||
Valuation difference on available-for-sale | (283) | 16,763 |
securities | ||
Foreign currency translation adjustment | 26,501 | 21,407 |
Remeasurements of defined benefit plans | (137) | (54) |
Share of other comprehensive income of | 1,055 | 1,521 |
affiliates accounted for using equity method | ||
Total other comprehensive income | 27,136 | 39,636 |
Comprehensive income | 41,535 | 50,564 |
Comprehensive income attributable to | 32,694 | 43,824 |
owners of parent | ||
Comprehensive income attributable to non- | 8,840 | 6,739 |
controlling interests | ||
- 6 -
(3) Quarterly Consolidated Statements of Cash Flows
Net cash provided by (used in) operating activities Income before income taxes
Depreciation and amortization Impairment losses
Increase (decrease) in allowance for doubtful accounts
Increase (decrease) in provision for bonuses Increase (decrease) in provision for product warranties
Increase (decrease) in net defined benefit liability
Interest and dividends income Interest expenses
Equity in (earnings) losses of affiliates Net loss (gain) on sales and retirement of noncurrent assets
Decrease (increase) in notes and accounts receivable-trade
Decrease (increase) in inventories Increase (decrease) in notes and accounts payable-trade
Other, net Subtotal
Interest and dividends income received Interest expenses paid
Income taxes (paid) refund
Net cash provided by (used in) operating activities
Net cash provided by (used in) investing activities Payments into time deposits
Proceeds from withdrawal of time deposits Purchase of property, plant and equipment Proceeds from sales of property, plant and equipment
Purchase of intangible assets
Proceeds from sale and redemption of short-term and long-term investment securities
Other, net
Net cash provided by (used in) investing activities
(Millions of Yen) | |
Six months ended | Six months ended |
September 30, 2022 | September 30, 2023 |
19,391 | 16,126 |
20,201 | 18,283 |
304 | 1,867 |
(0) | 5 |
135 | 35 |
(3,757) | 547 |
(873) | (640) |
(1,695) | (3,272) |
75 | 75 |
(1,358) | (1,232) |
382 | 2,122 |
1,636 | (3,800) |
733 | (7,606) |
(1,431) | 1,795 |
3,744 | 5,076 |
37,487 | 29,381 |
2,665 | 5,658 |
(66) | (86) |
(3,847) | (4,370) |
36,239 | 30,583 |
(31,746) | (36,991) |
30,154 | 34,818 |
(15,020) | (9,102) |
70 | 48 |
(353) | (1,233) |
461 | 69 |
(414) | 266 |
(16,848) | (12,125) |
- 7 -
Net cash provided by (used in) financing activities Purchase of treasury stock
Decrease (increase) in money held in trust for purchase of treasury stock
Cash dividends paid
Dividends paid to non-controlling interests Other, net
Net cash provided by (used in) financing activities
Effect of exchange rate change on cash and cash equivalents
Net increase (decrease) in cash and cash equivalents Cash and cash equivalents at beginning of period Cash and cash equivalents at end of period
(Millions of Yen) | |
Six months ended | Six months ended |
September 30, 2022 | September 30, 2023 |
(2) | (4,737) |
- | 4,738 |
(3,999) | (4,140) |
(3,618) | (6,004) |
(792) | (891) |
(8,412) | (11,035) |
7,089 | 6,811 |
18,068 | 14,234 |
112,004 | 130,881 |
130,072 | 145,116 |
- 8 -
-
Review of Segment Operations Segment information
I. Six months ended September 30, 2022 (from April 1, 2022 to September 30, 2022)
1. Sales and income or loss by reportable segment
(Millions of Yen) | ||||||
Total amount | ||||||
Applied | recognized in | |||||
Automotive | Electronic | quarterly | ||||
Electronic | Others | Adjustment | ||||
Equipment | Components | consolidated | ||||
Products | (Note 1) | (Note 2) | ||||
Business | Business | statements of | ||||
Business | ||||||
income | ||||||
(Note 3) | ||||||
Sales | ||||||
Sales to outside customers | 171,043 | 12,356 | 30,547 | 12 | - | 213,959 |
Intersegment sales or transfer | 845 | 8,160 | 23,539 | 1,195 | (33,740) | - |
Total | 171,888 | 20,517 | 54,086 | 1,207 | (33,740) | 213,959 |
Segment income (loss) | 11,331 | 2,602 | 5,304 | (40) | (3,709) | 15,488 |
Notes: 1. "Others" mainly includes the following project and services not included in the reportable segments: the project for promotion of employment of the physically disabled; and financial and management services provided within the Stanley Group.
- (3,709) million yen adjustment to segment income (loss) includes company-wide expenses not allocated to the reportable segments of (3,588) million yen. The company-wide expenses are mainly general research and development expenses and administrative expenses, which are not attributable to the reportable segments.
- Segment income (loss) is adjusted to be consistent with operating income shown on the quarterly consolidated statements of income.
2. Information concerning impairment loss on noncurrent assets by reportable segment
(Significant impairment loss on noncurrent assets) The information is omitted due to lack of materiality.
- Six months ended September 30, 2023 (from April 1, 2023 to September 30, 2023)
1. Sales and income or loss by reportable segment
(Millions of Yen) | ||||||
Total amount | ||||||
Applied | recognized in | |||||
Automotive | Electronic | quarterly | ||||
Electronic | Others | Adjustment | ||||
Equipment | Components | consolidated | ||||
Products | (Note 1) | (Note 2) | ||||
Business | Business | statements of | ||||
Business | ||||||
income | ||||||
(Note 3) | ||||||
Sales | ||||||
Sales to outside customers | 184,168 | 11,205 | 30,730 | 58 | - | 226,163 |
Intersegment sales or transfer | 626 | 8,015 | 25,077 | 1,081 | (34,801) | - |
Total | 184,795 | 19,221 | 55,808 | 1,140 | (34,801) | 226,163 |
Segment income (loss) | 10,690 | 2,009 | 5,693 | (44) | (4,270) | 14,077 |
Notes: 1. "Others" mainly includes the following project and services not included in the reportable segments: the project for promotion of employment of the physically disabled; and financial and management services provided within the Stanley Group.
- (4,270) million yen adjustment to segment income (loss) includes company-wide expenses not allocated to the reportable segments of (3,865) million yen. The company-wide expenses are mainly general research and development expenses and administrative expenses, which are not attributable to the reportable segments.
- Segment income (loss) is adjusted to be consistent with operating income shown on the quarterly consolidated statements of income.
- 9 -
2. Matters concerning changes to reportable segments
Effective from the three months ended June 30, 2023, the accessories & devices products previously included in the Electronic Components Business is now reclassified into Automotive Equipment Business, and certain products utilizing ultraviolet lights also previously included in the Electronic Components Business is now reclassified into Applied Electronic Products Business.
The segment information for the six months ended September 30, 2022 above was prepared based on the method of classification after the revision.
3. Information concerning losses on impairment of noncurrent assets by reportable segment (Significant impairment loss on noncurrent assets)
Losses on impairment of noncurrent assets were recorded in the "Automotive Equipment Business", the "Electronic Components Business", the "Applied Electronic Products Business", and for corporate assets which are not attributable to the reportable segments. The breakdown of the impairment losses for the six months ended September 30, 2023 was 978 million yen in the "Automotive Equipment Business", 870 million yen in the "Electronic Components Business", 0 million yen in the "Applied Electronic Products Business", and 17 million yen for corporate assets which are not attributable to the reportable segments.
- Significant Subsequent Events
(Plan to make an affiliate accounted for by the equity method to a consolidated subsidiary and the establishment of a subsidiary by a subsidiary of the Company)
The Company's Board of Directors, at a meeting held on October 31, 2023, resolved to, (a) make Thai Stanley Electric Public Co., Ltd. ("THS"), which is an affiliate accounted for by the equity method in Thailand, a consolidated subsidiary. Stanley Electric Holding Asia-Pacific Pte. Ltd. ("SEAP"), which is a subsidiary of the Company in Singapore, has an equity stake in THS. (b) In order to process related transactions, it was also resolved that SEAP will establish a subsidiary (a "New Investment Company") in Thailand. The details of the resolutions are as follows: - Making THS a consolidated subsidiary
-
Name and line of business of the acquired company Name: Thai Stanley Electric Public Co., Ltd.
Line of business: Manufacture and sales of electric bulbs for automobiles, motorcycles, and other vehicles and lighting equipment - Main reason for the business combination
-
Name and line of business of the acquired company Name: Thai Stanley Electric Public Co., Ltd.
THS has been our partner since its establishment in 1980, and is responsible for the development and manufacture of lamps for Japanese car manufacturers in Thailand. THS has grown along with the Thai automobile market, but competition has become increasingly severe, and reform is urgently needed.
As car manufacturers are promoting the shift to battery electric vehicles (BEVs) in Asia and Oceania, it is necessary to transform THS into a "lamp system manufacturer" capable of responding to the needs of car manufacturers at the same level and speed as the Company.
We also aim to further improve cost competitiveness by applying all our know-how to THS and strengthening each function.
To achieve this aim, we will make THS a consolidated subsidiary, and we will strive to achieve THS's further growth as a "hub for Asia and Oceania" under the Group philosophy of "One Stanley."
- Date of the business combination April 1, 2024 or after (plan)
- Legal form of the business combination Acquisition of shares for cash consideration
- Name of the company after the business combination No change
- 10 -
Attachments
- Original Link
- Original Document
- Permalink
Disclaimer
Stanley Electric Co. Ltd. published this content on 30 November 2023 and is solely responsible for the information contained therein. Distributed by Public, unedited and unaltered, on 01 December 2023 01:24:11 UTC.
