Note: This document has been translated from the Japanese original for reference purposes only. In the event of any discrepancy between this translated document and the Japanese original, the original shall prevail.

August 5, 2022

Consolidated Financial Results

for the Three Months Ended June 30, 2022

(Under Japanese GAAP)

Company name:

YUASA TRADING CO., LTD.

Listing:

Tokyo Stock Exchange

Securities code:

8074

URL:

https://www.yuasa.co.jp

Representative:

Hiroyuki Tamura, Representative Director, President & CEO

Inquiries:

Hideki Tani, General Manager Finance Dept.

Telephone:

+81-3-6369-1366

Scheduled date to file quarterly securities report:

August 9, 2022

Scheduled date to commence dividend payments:

-

Preparation of supplementary material on quarterly financial results: None

Holding of quarterly financial results briefing:

None

(Yen amounts are rounded down to millions, unless otherwise noted.)

1. Consolidated financial results for the three months ended June 30, 2022 (from April 1, 2022 to June 30, 2022)

(1) Consolidated operating results (cumulative)

(Percentages indicate year-on-year changes.)

Net sales

Operating profit

Ordinary profit

Profit attributable to

owners of parent

Three months ended

Millions of yen

%

Millions of yen

%

Millions of yen

%

Millions of yen

%

June 30, 2022

109,314

15.2

1,425

71.1

1,669

47.2

1,034

41.2

June 30, 2021

94,925

-

833

(43.4)

1,134

(35.2)

732

(36.9)

Note: Comprehensive income

For the three months ended June 30, 2022:

¥906 million

[311.2%]

For the three months ended June 30, 2021:

¥220 million

[(86.5)%]

Basic earnings

Diluted earnings

per share

per share

Three months ended

Yen

Yen

June 30, 2022

46.94

46.68

June 30, 2021

33.16

32.94

(2) Consolidated financial position

Total assets

Net assets

Equity-to-asset ratio

As of

Millions of yen

Millions of yen

%

June 30, 2022

245,538

91,319

37.0

March 31, 2022

259,413

92,605

35.5

Reference: Equity

As of June 30, 2022:

¥90,727 million

As of March 31, 2022:

¥91,981 million

2. Cash dividends

Annual dividends per share

First quarter-end

Second quarter-end

Third quarter-end

Fiscal year-end

Total

Yen

Yen

Yen

Yen

Yen

Fiscal year ended

-

49.00

-

74.00

123.00

March 31, 2022

Fiscal year ending

-

March 31, 2023

Fiscal year ending

March 31, 2023

60.00

-

80.00

140.00

(Forecast)

Note: Revisions to the forecast of cash dividends most recently announced: None

3. Consolidated earnings forecasts for the fiscal year ending March 31, 2023 (from April 1, 2022 to March 31, 2023)

(Percentages indicate year-on-year changes.)

Net sales

Operating profit

Ordinary profit

Profit attributable to

Basic earnings

owners of parent

per share

Millions of yen

%

Millions of yen

%

Millions of yen

%

Millions of yen

%

Yen

Six months ending

230,000

8.9

5,600

25.6

6,100

62.5

4,040

50.2

182.89

September 30, 2022

Full year

490,000

5.9

13,500

13.6

14,500

23.5

9,570

18.7

433.23

Note: Revisions to the earnings forecasts most recently announced: None

* Notes

  1. Changes in significant subsidiaries during the period (changes in specified subsidiaries resulting in the change in scope of consolidation): None
  2. Adoption of accounting treatment specific to the preparation of quarterly consolidated financial statements: None
  3. Changes in accounting policies, changes in accounting estimates, and restatement
    1. Changes in accounting policies due to revisions to accounting standards and other regulations: None
    2. Changes in accounting policies due to other reasons: None
    3. Changes in accounting estimates: None
    4. Restatement: None
  5. Number of issued shares (common shares)
    1. Total number of issued shares at the end of the period (including treasury shares)

As of June 30, 2022

23,155,882 shares

As of March 31, 2022

23,155,882 shares

(ii) Number of treasury shares at the end of the period

As of June 30, 2022

1,196,120 shares

As of March 31, 2022

1,048,982 shares

  1. Average number of shares outstanding during the period (cumulative from the beginning of the fiscal year)

Three months ended June 30, 2022

22,045,324 shares

Three months ended June 30, 2021

22,100,444 shares

Note: The shares of the Company held by the "Board Incentive Plan (BIP) Trust" are included in the number of treasury shares at the end of the period (188,917 shares as of June 30, 2022 and 188,917 shares as of March 31, 2022). Also, the shares of the Company held by the "Board Incentive Plan (BIP) Trust" are included in treasury shares that are deducted for calculation of the average number of shares outstanding during the period (cumulative from the beginning of the fiscal year) (188,917 shares for the three months ended June 30, 2022 and 196,129 shares for the three months ended June 30, 2021).

  • Quarterly financial results reports are exempt from quarterly review conducted by certified public accountants or an audit corporation.
  • Proper use of earnings forecasts, and other special matters (Caution regarding forward-looking statements)
    The forward-looking statements, including earnings forecasts, contained in this document are based on information currently available to the Company and on certain assumptions deemed to be reasonable. These statements do not purport that the Company pledges to realize such statements. Actual business and other results may differ substantially due to various factors. For the suppositions that form the assumptions for earnings forecasts and cautions concerning the use thereof, please refer to "1. Qualitative Information Regarding Results for the First Three Months, (3) Explanation of consolidated earnings forecasts and other forward-looking statements" on page 5 of the attached material.

Attached Materials

1. Qualitative Information Regarding Results for the First Three Months .......................................................................

2

(1)

Explanation of operating results................................................................................................................................

2

(2)

Explanation of financial position ..............................................................................................................................

5

(3)

Explanation of consolidated earnings forecasts and other forward-looking statements............................................

5

2. Quarterly Consolidated Financial Statements and Significant Notes Thereto ..............................................................

6

(1)

Consolidated balance sheet .......................................................................................................................................

6

(2)

Consolidated statement of income and consolidated statement of comprehensive income ......................................

8

Consolidated statement of income (cumulative) .......................................................................................................

8

Consolidated statement of comprehensive income (cumulative) ..............................................................................

9

(3)

Notes to quarterly consolidated financial statements ..............................................................................................

10

Notes on going concern assumption........................................................................................................................

10

Notes on significant changes in the amount of shareholders' equity ......................................................................

10

Additional information............................................................................................................................................

10

Segment information...............................................................................................................................................

11

1

1. Qualitative Information Regarding Results for the First Three Months

  1. Explanation of operating results
    During the three months under review (April 1, 2022 to June 30, 2022), the Japanese economy continued to face uncertainties, including soaring crude oil prices due to the prolonged situation in Ukraine and the rapid depreciation of the yen, in addition to the lack of prospects for the COVID-19 pandemic coming under control, despite signs of normalization of economic activities.
    In the industrial field, while demand for capital investment picked up at an accelerated pace and orders for machine tools, etc. increased, supply chain disruptions and the shortage of semiconductor-related parts, etc. due to lockdowns continued for a long period of time, resulting in production adjustments and other effects, mainly in the automobile-related industry. In the housing and construction field, public works investment and housing construction, mainly condominiums, remained firm.
    For overseas economies also, economic recovery continued mainly in the U.S., although some suspensions of plant operations and price rises for parts and materials were observed. In Southeast Asian countries such as Thailand, Vietnam, and Indonesia, there were also signs of economic pickup, while in China, there were continued concerns of an economic slowdown due to curtailed economic activities.
    Under these circumstances, the Yuasa Trading Group entered the final year of the second stage of its Mid- term Management Plan "Growing Together 2023," toward realizing "Yuasa Vision 360." Aiming to evolve into a "TSUNAGU Service Integrated Shosha Group," we are executing various measures under the basic policies of "growth business strategy," "core business strategy," and "strengthening management foundation."
    For "growth business strategy," we concentrated on the proposal of new products and services in fields such as climate change, infection countermeasures, labor-saving and automation measures, etc., by developing products and services both in-house and jointly with other companies, based on the understanding that growth businesses are businesses that solve social issues.
    For "core business strategy," we are strengthening and expanding our AI-based initiatives toward becoming a "TSUNAGU Service Integrated Shosha Group," which enables us to demonstrate our comprehensive strengths in one-stop, while promoting the deep cultivation of our core businesses. We are promoting proposal-based sales and marketing aimed at connecting AI with customers' manufacturing, home, environmental, and community development sites to enhance the advancement and efficiency of customers' on-site operations.
    For "strengthening management foundation," in order to improve shareholder returns and capital efficiency, and to enable the execution of flexible capital policies in response to changes in the business environment, the Company has commenced a share buyback program totaling up to 1,700,000 shares, for a total amount of ¥4.0 billion. In addition, as part of our efforts toward "ESG" and "SDGs," based on the Yuasa Trading Group's "Sustainability Declaration," we aim to be carbon neutral across the entire Yuasa Trading Group by 2030, as well as to actively disclose information related to ESG and climate change to contribute to building a sustainable society through our business activities.
    As a result, consolidated net sales for the three months under review increased 15.2% from the same period of the previous fiscal year to ¥109,314 million. In terms of profits, operating profit was ¥1,425 million (up 71.1% year on year), ordinary profit was ¥1,669 million (up 47.2% year on year), and profit attributable to owners of parent was ¥1,034 million (up 41.2% year on year).
    Results by reportable segment are as follows:

    In the Industrial Equipment & Tools Division, demand for cutting tools, measuring instruments, and other equipment increased, as plant utilization rates in the logistics and semiconductor-related industries were high, despite the effect of production cuts in the automobile-related industry due to the shortage of semiconductor- related parts, etc.
    Under these circumstances, we promoted efforts to become carbon neutral by expanding sales of control- related equipment such as compressors with high energy-saving performance, and focused on proposals for automation and streamlining of production sites to realize smart factories, and as a result, net sales were ¥17,595 million (up 8.7% year on year).

2

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Yuasa Trading Co. Ltd. published this content on 05 August 2022 and is solely responsible for the information contained therein. Distributed by Public, unedited and unaltered, on 19 August 2022 08:13:00 UTC.