Consolidated Financial Highlights for FY2022 (Japanese GAAP)

May 15, 2023

Company name:

TACHI-S CO., LTD.

Stock exchange listings:

Tokyo Stock Exchange

Code number:

7239

URL

https://www.tachi-s.co.jp/

Representative:

(Title)

Representative Director, President, CEO & COO

(Name)

Yuichiro Yamamoto

Contact person:

(Title)

Representative Director,

(Name)

Atsushi Komatsu

(TEL) 0428-33-1917

Executive Managing Officer

Scheduled date of the annual general

June 20, 2023 Scheduled date of the payment of cash dividends: May 31, 2023

meeting of shareholders:

Scheduled date of submission of securities

June 20, 2023

report

Additional materials to financial results

:

Yes

Holding of the financial results briefing session

:

Yes

( for security analysts and institutional investors

)

(Amounts less than 1 million yen are rounded down)

1. Consolidated Financial Results for FY2022 (April 1, 2022 through March 31, 2023)

(1) Consolidated Operating Results

(% indicates change from previous year)

Net sales

Operating income

Ordinary income

Net income attributable to

owners of parent

Million yen

%

Million yen

%

Million yen

%

Million yen

%

FY2022

243,436

17.9

1,367

-

1,973

-

5,823

-

FY2021

206,441

4.0

(4,203)

-

(3,536)

-

(2,059)

-

(Note) Comprehensive income

FY2022

10,973

million yen(

308.1

%)

FY2021

2,689

million yen(

- %)

Net income per

Diluted net income

Capital adequacy

Total assets ordinary

Sales operating

share

per share

net income ratio

income ratio

income ratio

yen

yen

%

%

%

FY2022

170.09

-

7.6

1.2

0.6

FY2021

(60.19)

-

(2.8)

(2.3)

(2.0)

(Note) Equity in earnings (losses) of affiliated companies FY2022 937 million yen FY2021 1,339 million yen

(2) Consolidated Financial Position

Total assets

Net assets

Shareholders' equity ratio

Net assets per share

Million yen

Million yen

%

yen

FY2022

170,004

86,481

47.3

2,346.90

FY2021

158,997

79,181

45.8

2,129.09

(Note) Equity capital FY2022 80,369 million yen FY202172,862 million yen

(3) Consolidated Cash Flows

Cash flows from

Cash flows from investing

Cash flows from financing

Cash and cash equivalents at

operating activities

activities

activities

end of period

Million yen

Million yen

Million yen

Million yen

FY2022

3,740

6,666

(10,005)

32,863

FY2021

(354)

2,006

(812)

29,360

2. Dividends

Annual cash dividends per share

Total

Dividend

Total assets

dividend

payout

dividend rate

End of 1st

End of 2nd

End of 3rd

End of

Total

(Total)

(Consolidated)

(Consolidated)

quarter

quarter

quarter

fiscal year

yen

yen

yen

yen

yen

Million yen

%

%

FY2021

-

31.80

-

31.80

63.60

2,195

-

3.0

FY2022

-

36.80

-

36.80

73.60

2,547

43.3

3.3

FY2023 (forecast)

-

46.40

-

46.40

92.80

-

Since we are not planning any changes to the certain achievement of an ROE of 8%, one of our management target values for fiscal year 2024, the Company expects an ordinary annual dividend per share of 92.8 yen next term (an interim dividend of 46.4 yen and a term-end dividend of 46.4 yen) for a DOE of 4%. For details, please see "1. Overview of the Operating Results, etc. (5) Basic policy regarding profit distribution and dividends for fiscal year 2022 and 2023" on page 4 of the attached document.

3. Consolidated forecast for FY2023 (April 1, 2023 through March 31, 2024)

Following significant changes in the business environment since the formulation of "Transformative Value Evolution (TVE)," the Company's medium-term management plan for fiscal years 2021 to 2024, in May 2021, we are currently scrutinizing the progress of TVE and considering its partial revision so we have not yet determined the consolidated results forecast for the fiscal year ending March 31, 2024. We will disclose this information promptly when we become able to do so. For details, please see "1. Overview of the Operating Results, etc. (4) Outlook for the fiscal year ending March 31, 2024" on page 4 of the attached document.

* Notes

(1) Major subsidiary changes during the period (changes affecting the scope of consolidation):

Yes

Zhejiang TACHI-S

Newly

companies

(Company

, Excluded: 2 companies

(Company

Automotive Parts Co., Ltd.,

included:

name)

names)

Zhejiang Fu Chong Tai

Automotive Parts Co., Ltd.

  1. Changes in accounting policies, changes in accounting estimates, and restatement

(i) Changes in accounting policies owing to revisions to accounting standards:

Yes

(ii) Changes in accounting policies except (i) :

No

(iii) Changes in accounting estimates:

No

(iv)

Restatement:

No

(3) Number of outstanding shares (common stock)

(i)

Number of shares at the end of the fiscal year

FY2022

35,242,846

shares

FY2021

35,242,846

shares

(including treasury shares)

(ii)

Number of treasury shares at the end of

FY2022

997,882

shares

FY2021

1,020,382

shares

the fiscal year

(iii)

Average number of shares during the period

FY2022

34,236,310

shares

FY2021

34,222,247

shares

(Note) Outline of Non-Consolidated Financial Results

1. Non-Consolidated Financial Results for FY2022 (April 1, 2022 through March 31, 2023)

(1) Non-Consolidated Operating Results

(% indicates change from previous year)

Net sales

Operating income

Ordinary income

Net income

Million yen

%

Million yen

%

Million yen

%

Million yen

%

FY2022

95,756

27.4

(56)

-

3,648

-

8,732

-

FY2021

75,183

(9.5)

(1,790)

-

(5,888)

-

(2,852)

-

Net income

Diluted net income

per share

per share

yen

yen

FY2022

255.07

-

FY2021

(83.34)

-

(2) Non-Consolidated Financial Position

Total assets

Net assets

Shareholders' equity ratio

Net assets per share

Million yen

Million yen

%

yen

FY2022

100,664

52,996

52.6

1,547.58

FY2021

92,307

47,186

51.1

1,378.82

(Note) Equity capital

FY2022

52,996

million yen

FY2021

47,186

million yen

  • These financial highlights are not subject to audit procedures.
  • Note for appropriate use of this business forecast and other notices
    The above business forecast was based on the information that the company obtained at this time and certain premises that the company judged appropriate. Actual results may differ from this forecast as the result of a variety of factors.
    Please refer to the appended materials on page 4 "1. Overview of the Operating Results, etc. (4) Outlook for the fiscal year ending March 31, 2024" for the assumptions underlying the forecasts and precautions when using the earnings forecasts.

○ Table of Contents for Materials

1. Overview of the Operating Results, etc. ............................................................................................. 2

(1)

Overview of the operating results for the fiscal year under review

2

(2)

Overview of the financial position for the fiscal year under review

3

(3)

Overview of cash flows for the fiscal year under review

3

(4)

Outlook for the fiscal year ending March 31, 2024

4

(5)

Basic policy regarding profit distribution and dividends for fiscal year 2022 and 2023

4

2.

Basic Stance on Selecting Accounting Standards

4

3.

Consolidated Financial Statements and Significant Notes

5

(1)

Consolidated statement of financial position

5

(2)

Consolidated statements of income and comprehensive income

7

  1. Consolidated statement of changes in shareholders' equity, etc. .............................................. 9

(4)

Consolidated statements of cash flows

11

(5)

Notes to the consolidated financial statements

12

(Notes regarding going concern assumptions)

12

(Changes in accounting policies)

12

(Segment information, etc.)

13

(Earnings per share)

15

(Significant subsequent events)

15

4. Non-Consolidated Financial Statements

16

(1)

Statement of financial position

16

(2)

Statement of income

18

(3)

Statement of changes in shareholders' equity

19

-1-

1. Overview of the Operating Results,etc.

  1. Overview of the operating results for the fiscal year under review
    In the fiscal year under review, although the Japanese economy saw the revitalization of economic activity progress after a shift to living with COVID-19 infections, the future remains uncertain due to soaring raw material and logistics costs triggered by the impacts of semiconductor shortages and COVID-19 infections. Overseas too, economic activity is tending to recover due to the lifting of the lockdown in Shanghai, China and other factors. However, it is also difficult to perceive the future situation due to factors such as the global shortage of semiconductors and the impact on the global economy of the division of the world caused by the conflict in Ukraine.
    In the auto industry in which the Group operates, automobile manufacturers, our customers, continue to be unable to secure initially planned production volumes due to the prolonged shortage of semiconductors and other supply network problems. Although our customers have huge amounts of order backlogs caused by the ongoing supply constraints, the constraints mainly in semiconductor are expected to continue in 2023. Accordingly, in terms of business performance management, it is increasingly important for us to consider how to respond quickly to changes in the production volume of our customers.
    During the fiscal year under review, our main activities included improvement of our profit structure including structural reforms and other efforts, mainly in Japan, Latin America, and North America, as well as initiatives to reduce costs by strengthening our manufacturing competitiveness. We have also been striving to improve profitability by streamlining business and promoting thorough cost reductions globally, carrying out activities with certainty in areas that the company can control. In response to cost increases due to sudden production fluctuations at customers caused by the semiconductor shortage and soaring raw material and logistics costs, which we cannot control, we implementing production adjustments to keep the cost increases to a minimum and managed business while communicating appropriately with customers. For the "deepening" of our business portfolio, we are planning to expand not only seat business but also seat parts business, including trim covers, mechanical parts and frames, and in mechanical parts business, we established a new joint venture in India. For "evolution," we are working on the planning and proposal of new spatial experience value in future mobility as a space producer, as well as the development of system control technology as a basic technology required for its realization, and have completed a prototype of an integrated ECU in collaboration with other companies. For "modernizing," we are disseminating ideas through open innovation and implementing concept verification. In addition, we have expressed our support for the TCFD as a carbon neutral initiative, and have prepared information disclosure on climate change-related risks and opportunities.
    In this operating environment, net sales increased 17.9% over the previous fiscal year to 243,436 million yen, which led to operating income of 1,367 million yen (compared with an operating loss of 4,203 million yen in the previous fiscal year), ordinary income of 1,973 million yen (compared with an ordinary loss of 3,536 million yen in the previous fiscal year), and net income attributable to owners of parent of 5,823 million yen (compared with a net loss attributable to owners of parent of 2,059 million yen in the previous fiscal year) associated with the recording of extraordinary income from the transfer of non-current assets (gain on sale of non-current assets).
    Earnings in the business segments are as follows.
    (Japan)
    Net sales totaled 102,720 million yen (up 27.2% over the previous fiscal year), and operating income was 892 million yen (operating loss of 1,684 million yen in the previous fiscal year).
    (North America)
    Net sales totaled 50,433 million yen (up 31.0% over the previous fiscal year), and the operating loss totaled 2,052 million yen (operating loss of 2,454 million yen in the previous fiscal year).
    (Latin America)
    Net sales totaled 63,624 million yen (up 23.7% over the previous fiscal year), and operating income totaled 1,608 million yen (operating loss of 1,627 million yen in the previous fiscal year).
    (Europe)
    Net sales totaled 352 million yen (down 68.3% from the previous fiscal year), and operating income totaled 350 million yen (up 162.6% over the previous fiscal year).
    (China)
    Net sales totaled 24,850 million yen (down 23.8% from the previous fiscal year), and operating income totaled 1,072 million yen (down 45.5% from the previous fiscal year).
    (Southeast Asia)
    Net sales totaled 1,454 million yen (down 28.2% from the previous fiscal year), and the operating loss totaled 397 million yen (operating loss of 342 million yen in the previous fiscal year).

-2-

  1. Overview of the financial position for the fiscal year under review
    Total assets increased by 11,006 million yen from the end of the previous fiscal year to 170,004 million yen. This was primarily due to an increase of 2,066 million yen in cash and deposits and an increase of 5,299 million yen in accounts receivable.
    Total liabilities increased by 3,706 million yen from the end of the previous fiscal year to 83,523 million yen. This was primarily due to an increase of 5,546 million yen in notes and accounts payable, although short-term borrowings decreased by 1,004 million yen and long-term borrowings decreased by 1,000 million yen.
    Net assets increased by 7,299 million yen from the end of the previous fiscal year to 86,481 million yen. This was primarily because retained earnings increased by 3,448 million yen and in foreign currency translation adjustments increased by 4,784 million yen.
  2. Overview of the cash flows for the fiscal year under review
    Cash and cash equivalents at the end of the consolidated fiscal period under review (hereinafter referred to as "Funds") were 32,863 million yen, up 3,503 million yen (11.9%) compared with the end of the previous consolidated fiscal year.
    (Cash flow from operating activities)
    Funds obtained from operating activities totaled 3,740 million yen, down 4,095 million yen compared with the previous consolidated fiscal year (use of 354 million yen in the previous consolidated fiscal year). This was primarily due to profit before income taxes improving by 8,595 million yen compared with the previous consolidated fiscal year.
    (Cash flow from investing activities)
    Funds obtained from investing activities totaled 6,666 million yen, an increase of 4,659 million yen (232.2%) compared with the previous consolidated fiscal year. This was primarily due to proceeds from sale of property, plant and equipment increasing by 2,527 million yen.
    (Cash flows from financing activities)
    Funds used in financing activities totaled 10,005 million yen, an increase of 9,193 million yen compared with the previous consolidated fiscal year (use of 812 million yen in the previous consolidated fiscal year). This was primarily due to a decrease of 6,611 million yen in short-term borrowings and a decrease of 1,000 million yen in repayments of long-term borrowings.
    (Reference) Changes in cash flow-related financial indicators

Fiscal year

Fiscal year

Fiscal year

Fiscal year

Fiscal year

ended March

ended March

ended March

ended March

ended March

31, 2019

31, 2020

31, 2021

31, 2022

31, 2023

Ratio of shareholders'

52.5

52.7

48.0

45.8

47.3

equity (%)

Ratio of shareholders'

equity ratio at market value

31.5

20.7

27.2

21.4

24.2

(%)

Ratio of cash flows to

interest-bearing debt

6.8

56.8

-

-

5.3

(times)

Interest coverage ratio

32.5

0.6

-

-

7.4

(times)

Ratio of shareholders' equity: Shareholders' equity / Total assets

Ratio of shareholders' equity ratio at market value: Market capitalization / Total assets

Ratio of cash flows to interest-bearing debt: Interest-bearing debt / Cash flows

Interest coverage ratio: Cash flow / Interest payments

Note 1: All of the above indicators are calculated using consolidated financial figures.

Note 2: Market capitalization is calculated using the Company's total shares outstanding excluding treasury shares.

Note 3: Cash flows from operating activities are used for calculations.

Note 4: Interest-bearing debts cover all debts for which interest is paid among those that are included in the consolidated statement of financial position.

-3-

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TACHI-S Co. Ltd. published this content on 15 May 2023 and is solely responsible for the information contained therein. Distributed by Public, unedited and unaltered, on 15 May 2023 07:27:06 UTC.