• Table of Contents of Attachments

1. Qualitative Information for Quarterly Financial Results for the Period under Review ················2

  1. Explanation on operating results ···············································································2
  2. Explanation on financial position ···············································································2
  3. Explanation on consolidated financial forecast and other forward-looking information ···········2

2. Quarterly Consolidated Financial Statements and Primary Notes ········································3

  1. Quarterly consolidated balance sheets ·······································································3
  2. Quarterly consolidated statement of income and quarterly consolidated statement of comprehensive income ·············································································· 5
  3. Quarterly consolidated statement of cash flows ··················································· 7
  4. Notes regarding quarterly consolidated financial statements ···········································8 (Notes regarding going concern assumptions) ···························································8 (Notes when there was a substantial change in the amount of shareholders' equity) ··········8 (Changes in accounting policies)·············································································8 (Segment information, etc.)····················································································8

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1. Qualitative Information for Quarterly Financial Results for the Period under Review

  1. Explanation on operating results
    In the consolidated cumulative first six months of the fiscal year under review, the Japanese economy continued to grow, led by domestic demand, as the economic recovery gathered momentum in the post-COVID-19 environment. Personal consumption has been on a recovery trend against the backdrop of rising wages, despite downward pressure due to higher prices. As for capital investment, investments from a medium- to long-term perspective, such as for digitalization and decarbonization, have been underway due to strong corporate performance. Despite lingering concerns over a downturn due to rising prices and a slowdown in overseas economies, the moderate economic recovery is expected to continue, particularly in terms of domestic demand.
    In the auto industry in which the Group operates, the automotive manufacturers, which are customers of the Group, have been seeking to expand sales in response to the easing of semiconductor supply constraints. In looking ahead to the upcoming business trends, it is necessary to monitor the effect of prolonged high interest rates in major countries on automobile sales and the trends of the Chinese market, where sales of Japanese cars have generally been sluggish.
    In this operating environment, the performance during the consolidated cumulative first six months of the fiscal year under review was as follows: Net sales increased by 27.6% year on year to 137,726 million yen, which led to an operating profit of 1,792 million yen (compared to an operating loss of 4,347 million yen in the same period of the previous fiscal year), an ordinary profit of 1,874 million yen (compared to an ordinary loss of 3,904 million yen in the same period of the previous fiscal year) and profit attributable to owners of parent of 1,291 million yen (up 669.8% from the same period of the previous fiscal year).
    Earnings in the business segments are as follows.
    1. Japan
      Net sales totaled 58,953 million yen (up 38.5% from the same period of the previous fiscal year), and operating profit was 1,031 million yen (compared to an operating loss of 2,163 million yen in the same period of the previous fiscal year).
    2. North America
      Net sales totaled 27,985 million yen (up 32.5% from the same period of the previous fiscal year), and operating loss was 40 million yen (compared to an operating loss of 1,145 million yen in the same period of the previous fiscal year).
    3. Latin America
      Net sales totaled 41,434 million yen (up 44.8% from the same period of the previous fiscal year), and operating profit was 803 million yen (compared to an operating loss of 1,615 million yen in the same period of the previous fiscal year).
    4. Europe
      Net sales totaled 0 million yen (down 99.9% from the same period of the previous fiscal year), and operating profit was 72 million yen (down 29.2% from the same period of the previous year).
    5. China
      Net sales totaled 7,899 million yen (down 46.0% from the same period of the previous fiscal year), and operating loss was 34 million yen (compared to an operating profit of 671 million yen in the same period of the previous fiscal year).
    6. Southeast Asia
      Net sales totaled 1,452 million yen (up 70.9% from the same period of the previous fiscal year), and operating profit was 17 million yen (compared to an operating loss of 191 million yen in the same period of the previous fiscal year).
  3. Explanation on financial position
    Total assets at the end of the consolidated second quarter of the fiscal year under review increased by 12,226 million yen from the end of the previous consolidated fiscal year to 182,230 million yen. This was mainly due to an increase of 5,670 million yen in cash and deposits and an increase of 2,493 million yen in investment securities.
    Total liabilities increased by 5,351 million yen from the end of the previous consolidated fiscal year to 88,874 million yen. This is mainly due to an increase of 3,080 million yen in notes and accounts payable and an increase of 4,184 million yen in "Other" under current liabilities due to an increase in accrued expenses, etc.
    Total net assets increased by 6,875 million yen from the end of the previous consolidated fiscal year to 93,356 million yen. This is primarily due to an increase of 5,107 million yen in foreign currency translation adjustment.
  4. Explanation on consolidated financial forecast and other forward-looking information
    The financial forecast for the fiscal year ending March 2024 had not been determined because, in relation to the "FY2021 to 2024 medium-term management plan, Transformative Value Evolution (TVE)," announced in May 2021, the Company had closely examined the progress of TVE in response to significant changes in the business environment following its formulation. This time, the Company has made forecasts on the basis of currently available information and forecasts. For details, please refer to "Notice of revision of financial forecast" released today (November 10, 2023).

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2. Quarterly Consolidated Financial Statements and Primary Notes

  1. Quarterly consolidated balance sheets

(Unit: Millions of yen)

Previous consolidated fiscal

Second quarter of the fiscal

year

year under review

(March 31, 2023)

(September 30, 2023)

Assets

Current assets

Cash and deposits

34,113

39,783

Notes and accounts receivable - trade

46,635

47,829

Securities

-

199

Merchandise and finished goods

2,606

2,347

Work in process

1,027

1,387

Raw materials and supplies

14,382

15,201

Other

7,062

6,709

Allowance for doubtful accounts

(21)

(32)

Total current assets

105,804

113,425

Non-current assets

Property, plant and equipment

Buildings and structures, net

9,996

10,253

Machinery, equipment and vehicles, net

11,071

11,280

Other, net

13,620

14,217

Total property, plant and equipment

34,688

35,751

Intangible assets

999

1,251

Investments and other assets

Investment securities

11,709

14,202

Other

17,284

18,155

Allowance for doubtful accounts

(482)

(556)

Total investments and other assets

28,511

31,802

Total non-current assets

64,199

68,805

Total assets

170,004

182,230

- 3 -

(Unit: Millions of yen)

Previous consolidated fiscal

Second quarter of the fiscal

year

year under review

(March 31, 2023)

(September 30, 2023)

Liabilities

Current liabilities

Notes and accounts payable - trade

40,095

43,176

Short-term borrowings

14,495

11,769

Income taxes payable

847

640

Provision for bonuses for directors

30

-

Provision for loss on litigation

312

334

Asset retirement obligations

217

238

Other

14,883

19,067

Total current liabilities

70,880

75,226

Non-current liabilities

Long-term borrowings

5,500

5,000

Provision for share-based remuneration

227

302

Retirement benefit liability

2,199

2,818

Asset retirement obligations

54

38

Other

4,661

5,488

Total non-current liabilities

12,642

13,648

Total liabilities

83,523

88,874

Net assets

Shareholders' equity

Share capital

9,040

9,040

Capital surplus

8,713

8,713

Retained earnings

50,734

50,752

Treasury shares

(1,426)

(1,368)

Total shareholders' equity

67,061

67,137

Accumulated other comprehensive income

Valuation difference on available-for-sale

630

1,902

securities

Foreign currency translation adjustment

12,723

17,830

Remeasurements of defined benefit plans

(46)

(54)

Total accumulated other comprehensive

13,307

19,678

income

Non-controlling interests

6,111

6,540

Total net assets

86,481

93,356

Total liabilities and net assets

170,004

182,230

- 4 -

  1. Quarterly consolidated statement of income and quarterly consolidated statement of comprehensive income Quarterly Consolidated Statement of Income
    First six months of the fiscal year

(Unit: Millions of yen)

First six months of the previous

First six months of the fiscal

fiscal year

year under review

(April 1, 2022 through

(April 1, 2023 through

September 30, 2022)

September 30, 2023)

Net sales

107,925

137,726

Cost of sales

103,105

126,089

Gross profit

4,820

11,637

Selling, general and administrative expenses

Employees' salaries and benefits

3,103

3,543

Shipping expenses

1,154

1,468

Other

4,909

4,832

Total selling, general and administrative

9,167

9,844

expenses

Operating profit (loss)

(4,347)

1,792

Non-operating income

Interest income

153

343

Dividend income

103

117

Share of profit of entities accounted for using

243

303

equity method

Miscellaneous income

326

160

Total non-operating income

826

925

Non-operating expenses

Interest expenses

230

455

Foreign exchange losses

105

313

Miscellaneous expenditures

46

74

Total non-operating expenses

382

843

Ordinary profit (loss)

(3,904)

1,874

Extraordinary income

Gain on sale of non-current assets

5,347

28

Total extraordinary income

5,347

28

Extraordinary losses

Loss on disposal of non-current assets

78

25

Business structurer improvement expenses

71

10

Total extraordinary losses

149

36

Profit (loss) before income taxes

1,293

1,866

Income taxes - current

1,298

893

Income taxes - deferred

(588)

(415)

Total income taxes

709

478

Profit

583

1,388

Profit attributable to non-controlling interests

416

96

Profit attributable to owners of parent

167

1,291

- 5 -

Quarterly Consolidated Statement of Comprehensive Income

First six months of the fiscal year

(Unit: Millions of yen)

First six months of the previous

First six months of the fiscal

fiscal year

year under review

(April 1, 2022 through

(April 1, 2023 through

September 30, 2022)

September 30, 2023)

Profit

583

1,388

Other comprehensive income

Valuation difference on available-for-sale

(636)

1,271

securities

Foreign currency translation adjustment

6,720

4,629

Remeasurements of defined benefit plans

(19)

(8)

Share of other comprehensive income of

associates accounted for under the equity

1,673

1,003

method

Total other comprehensive income Comprehensive income

(Breakdown)

Comprehensive income attributable to owners of parent

Comprehensive income attributable to non- controlling interests

7,737

6,896

8,321

8,285

7,008

7,662

1,313

622

- 6 -

  1. Quarterly consolidated statement of cash flows

Cash flows from operating activities Profit (loss) before income taxes

Depreciation

Increase (decrease) in allowance for doubtful accounts

Interest and dividend income Interest expenses

Share of loss (profit) of entities accounted for using equity method

Loss (gain) on disposal of non-current assets Decrease (increase) in trade receivables

Decrease (increase) in inventories Increase (decrease) in trade payables

Other

Subtotal

Interest and dividends received Interest paid

Income taxes paid

Cash flows from operating activities Cash flows from investing activities

Payments into time deposits

Proceeds from withdrawal of time deposits

Net decrease (increase) in short-term investment securities

Purchase of property, plant and equipment

Proceeds from sale of property, plant and equipment

Purchase of investment securities

Payments for investments in capital of subsidiaries and associates

Other

Cash flows from investing activities Cash flows from financing activities

Net increase (decrease) in short-term borrowings Repayments of long-term borrowings

Decrease (increase) in treasury shares Dividends paid to non-controlling interests

Dividends paid Other

Cash flows from 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

(Unit: Millions of yen)

First six months of the previous

First six months of the fiscal

fiscal year

year under review

(April 1, 2022 through

(April 1, 2023 through

September 30, 2022)

September 30, 2023)

1,293

1,866

2,729

2,637

(38)

(5)

(256)

(461)

230

455

(243)

(303)

(5,269)

(2)

2,708

1,140

(85)

284

(817)

869

925

4,532

1,177

11,014

548

626

(195)

(597)

(1,462)

(997)

67

10,046

-

(60)

1,440

-

375

-

(1,764)

(1,602)

6,862

79

(22)

(25)

-

(39)

111

1,785

7,002

138

(714)

(4,223)

(500)

(500)

36

57

(923)

(194)

(1,099)

(1,272)

(835)

(508)

(4,037)

(6,640)

3,263

1,965

6,296

5,510

29,360

32,863

35,656

38,373

- 7 -

  1. Notes regarding quarterly consolidated financial statements (Notes regarding going concern assumptions)
    Not applicable
    (Notes when there was a substantial change in the amount of shareholders' equity) Not applicable
    (Changes in accounting policies)
    Some subsidiaries that have adopted the International Financial Reporting Standards have applied the amendment to IAS No. 12, "Deferred Tax Related to Assets and Liabilities Arising from a Single Transaction," since the consolidated first quarter of the fiscal year. This application clarifies the accounting treating at the time of initial recognition regarding a transaction that causes a taxable temporary difference and a deductible temporary difference. For the taxable temporary difference and the deductible temporary difference, deferred tax liabilities and assets are recognized, respectively, on the consolidated balance sheet. The impact of this accounting policy change on the Quarterly Consolidated Financial Statements is insignificant.
    (Segment information, etc.)
    Information related to net sales and profit/loss for each reportable segment and information on disaggregation of revenue
    First six months of the previous fiscal year (April 1, 2022 through September 30, 2022)

(Unit: Millions of yen)

Reportable Segment

Amount

reported on

North

Latin

Southeast

Adjustments

quarterly

Japan

Europe

China

Total

(Note) 1

consolidated

America

America

Asia

statement of

income

(Note) 2

Net sales

Revenue from

contracts with

42,565

21,125

28,622

128

14,634

850

107,925

-

107,925

customers

Sales to outside

42,565

21,125

28,622

128

14,634

850

107,925

-

107,925

customers

Intersegment

1,563

380

1,172

546

5,271

217

9,153

(9,153)

-

sales or transfers

Total

44,129

21,505

29,794

674

19,905

1,067

117,079

(9,153)

107,925

Segment profit

(2,163)

(1,145)

(1,615)

103

671

(191)

(4,341)

(6)

(4,347)

(loss)

(Note) 1.

Adjustments of segment profit (loss) are after elimination of inter-segment transactions

2. Segment profit (loss) is adjusted with operating loss under quarterly consolidated statement of income

First six months of the fiscal year under review (April 1, 2023 through September 30, 2023)

(Unit: Millions of yen)

Reportable Segment

Amount

reported on

North

Latin

Southeast

Adjustments

quarterly

Japan

Europe

China

Total

(Note) 1

consolidated

America

America

Asia

statement of

income

(Note) 2

Net sales

Revenue from

contracts with

58,953

27,985

41,434

0

7,899

1,452

137,726

-

137,726

customers

Sales to outside

58,953

27,985

41,434

0

7,899

1,452

137,726

-

137,726

customers

Intersegment

2,224

498

1,546

498

7,502

49

12,320

(12,320)

-

sales or transfers

Total

61,178

28,484

42,980

499

15,401

1,502

150,046

(12,320)

137,726

Segment profit

1,031

(40)

803

72

(34)

17

1,851

(58)

1,792

(loss)

(Note) 1.

Adjustments of segment profit (loss) are after elimination of inter-segment transactions

2. Segment profit (loss) is adjusted with operating profit under quarterly consolidated statement of income.

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TACHI-S Co. Ltd. published this content on 09 November 2023 and is solely responsible for the information contained therein. Distributed by Public, unedited and unaltered, on 15 November 2023 07:19:02 UTC.