FY2021 First Half Financial Results

Tsutomu Hiranaka, President & COO

Yorozu Corporation

This is an internal English translation of the YOROZU FY2021 First Half Financial Report issued in the Japanese language and is provided solely for the convenience of English speaking readers. In case of discrepancy the Japanese version prevails.

The first section of the Tokyo Stock Exchange (Securities Code: 7294)

Contents

Ⅰ . FY2021 Second Quarter Financial Summary

Ⅱ. FY2021 First Half Results

Ⅲ. FY2021 Annual Forecast

  • Progress of YSP2023 Ⅴ. Shareholder Return

© YOROZU CORPORATION. 2021 All Rights Reserved.

2

1

FY2021 Second Quarter Financial Summary

1H Results

・Strong recovery in global automotive production boosted increase in both revenue and profit year-over-year.

・In the second quarter, the impact of semiconductor and part shortage and re-emerging novel coronaviruses mainly in Southeast Asian countries triggered a sharp drop in production volume, which led to a large decline in sales and profits compared to the latest announcement.

2H Outlook

・We have revised the financial forecast downward in consideration of uncertainties in semiconductor shortage and car production recovery. ・We will steadily move forward along with YSP2023 by strengthening our initiatives to fulfill the needs of customers and society and to respond to accelerated decarbonization.

Shareholder Return

・Payment of an interim dividend of 6 yen and year-end dividend of 7 yen per share is planned.

© YOROZU CORPORATION. 2021 All Rights Reserved.

3

Contents

  • FY2021 Second Quarter Financial Summary Ⅱ. FY2021 First Half Results
    Ⅲ. FY2021 Annual Forecast
  • Progress of YSP2023 Ⅴ. Shareholder Return

© YOROZU CORPORATION. 2021 All Rights Reserved.

4

2

Consolidated Financial Summary for 1H FY2021 (Year-on-Year)

Latest

Against

Million yen

1H FY20

1H FY21

Year-on-Year

Forecast for

Latest

1H 2021*2

Forecast

Sales

43,930

60,049

+36.7%

64,000

-6.2％

Operating Income

-4,160

277

ー

850

-67.4％

Ordinary Income

-3,615

307

ー

900

-65.8％

Net Income *1

-3,234

-129

ー

250

ー

*1 Net income attributable to parent company shareholders

*2 Estimated figures as of August 5, 2021

FY2020

FY2021

Difference

Percentage

A

B

B-A

of Change

Net Income per Share

-135.40 yen

-5.41 yen

＋129.99

ー

Exchange Rate Applied to

108.23 yen/$

107.82 yen/$

-0.41 yen/$

-0.4%

Consolidated Statements

  • Sales: Increased after recovery in demand in the automotive industry
  • Operating income: Turned a profit after the sales increase and fixed cost reduction
  • Ordinary income: An increase in revenue and employment adjustment subsidy boosted profits
  • Net income: Improved significantly year-over-year despite of losses attributable to corporate income tax, etc.

© YOROZU CORPORATION. 2021 All Rights Reserved.

5

Consolidated Sales by Customer (1H FY20 vs. 1H FY21)

Million yen

70,000

60,049

60,000

+1,193

43,930

（+41.8％）

50,000

Toyota

+1,975

Honda

（+25.1％）

40,000

+10,069

Toyota

（+37.3％）

30,000

Honda

20,000

Nissan

Nissan

10,000

0

1H FY2020

1H FY2021

© YOROZU CORPORATION. 2021 All Rights Reserved.

Million yen

Customer

FY2020

(%)

FY2021

(%)

*

26,996

61.5%

37,065

61.7%

Nissan Gr.

Honda Gr.

7,857

17.9%

9,832

16.4%

Toyota Gr.

2,856

6.5%

4,049

6.7%

Isuzu

1,710

3.9%

2,603

4.3%

Mazda

1,091

2.5%

1,436

2.4%

Kubota

873

2.0%

1,379

2.3%

Daimler

361

0.8%

949

1.6%

VW

530

1.2%

825

1.4%

Suzuki

417

0.9%

676

1.1%

Others

1,239

2.8%

1,235

2.1%

Total

43,930

100.0%

60,049

100.0%

    • Includes sales to Renault and Mitsubishi
  • Recovery in demand boosted sales at all customers

6

3

Analysis of Impact on Consolidated Operating Income

Million yen

(1H FY20 vs. 1H FY21)

Transfer of

2,000.0

extraordinary losses

from Covid-19

384

43

-970

1,000.0

Exchange

Profit from die

1,167

Consolidation

rate

equipment

effect

-448

adjustment

0.0

277

Cost-saving

1,332

efforts

-1,000.0

Depreciation

-2,000.0

-4,160

-3,000.0

2,929

-4,000.0

Sales

increase

-5,000.0

1H FY2020

1H FY2021

Operating Income (+4,437)

Results

Results

Become profitable on the back of an increase in sales that owes to recovery from

the impact of Covid-19, a decrease in depreciation, and steadily implemented

cost-saving measures, compared with the same period a year earlier

7

© YOROZU CORPORATION. 2021 All Rights Reserved.

Sales and Operating Income by Region (Before Consolidation Adjustment, 1H FY20 vs. 1H FY21)

◆Sales

Japan

Americas

Asia

Difference

% of Change

Million yen

+1,163

+6,744

+6,176

40,000

+7.6％

+39.9％

+37.8％

15,233

16,396

16,922

23,666

16,346

22,522

20,000

0

FY20

FY21

FY20

FY21

FY20

FY21

◆Operating Income

Million yen

+1,044

+1,545

+1,469

--％

--％

--％

2,000

730

0

-121

-546

-2,000

-739

-1,165

-2,091

-4,000

FY20

FY21

FY20

FY21

FY20

FY21

Sales increased in all segments compared to last year that was severely affected by Covid-19

  • Japan: Significant improvement after increases in part sales and royalty fees despite a net loss
  • Americas: Minimized losses for the sake of recovery in demand and improvement in the US and Mexico
  • Asia: Brought the bottom line back in black mainly because of demand recovery in China

© YOROZU CORPORATION. 2021 All Rights Reserved.

8

4

Financial Standing for the first half of FY2021

(Million yen)

Mar. 31, 2021 A

Sep. 30, 2021 B

Difference (B-A)

Net Worth

53,383

55,139

＋1,756

3.3％

Equity Ratio

39.6％

41.3%

--

--

D/E ratio

Interest-bearing Debt

0.84

44,769

0.72

39,821

-4,948

-11.1%

NET D/E Ratio

0.29

15,509

0.16

8,651

-6,858

-44.2%

Net Interest-bearing Debt

Total Assets

134,723

133,468

-1,255

-0.9%

(Million yen)

1H FY2020 A

1H FY2021 B

Difference (B-A)

(Accumulated)

(Accumulated)

Cash Flow from

6,491

10,669

＋4,178

64.4%

Operating Activities

Cash flow from

-4,420

-3,902

＋518

--

Investing Activities

Cash Flow from

-904

-7,188

-6,284

--

Financing Activities

The net interest-bearing debt and the net D/E ratio were reduced largely and

FCF was positive due to suppressed capital investment

© YOROZU CORPORATION. 2021 All Rights Reserved.

9

(Reference) Consolidated Balance Sheet Summary 1H FY2021

Cash & bank deposit

+1,910

Million yen

Mar. 2021 A

Sep. 2021 B

Diff B-A

Notes & accounts receivable -4,520

Inventories

＋1,889

Current Assets

63,721

62,589

-1,132

Tangible fixed assets

-634

Deferred tax assets

＋328

Fixed Assets

71,001

70,878

-123

Total Assets

134,723

133,468

-1,255

Notes and accounts payable -2,797

Electronically recorded obligations+293

Current Liabilities

39,331

40,037

＋706

Long term debts due within 1 year

-914

Fixed Liabilities

29,653

25,506

-4,147

Others

+4,167

Total Liabilities

68,984

65,543

-3,441

Shareholders' Equity

61,295

61,148

-147

Long term debts

-3,933

Accumulated Other

-7,912

-6,008

+1,904

Net income (loss)

-129

Comprehensive Income

Dividend payment

-311

Non-controlling interest,

12,355

12,784

＋429

Earned surplus corrected at the

start of the fiscal year

＋201

etc.

Total Net Assets

65,738

67,924

+2,186

Foreign currency translation

Total Liabilities and Net Assets

134,723

133,468

-1,255

adjustment

+1,883

10

© YOROZU CORPORATION. 2021 All Rights Reserved.

5

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YOROZU Corporation published this content on 02 December 2021 and is solely responsible for the information contained therein. Distributed by Public, unedited and unaltered, on 02 December 2021 09:30:05 UTC.