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.

February 4, 2022

Consolidated Financial Results

for the Nine Months Ended December 31, 2021

(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:

February 8, 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 nine months ended December 31, 2021 (from April 1, 2021 to December 31, 2021)

(1) Consolidated operating results (cumulative)

(Percentages indicate year-on-year changes.)

Net sales

Operating profit

Ordinary profit

Profit attributable to

owners of parent

Nine months ended

Millions of yen

%

Millions of yen

%

Millions of yen

%

Millions of yen

%

December 31, 2021

326,190

-

6,945

21.5

6,512

0.8

4,701

9.2

December 31, 2020

311,620

(13.6)

5,718

(33.0)

6,458

(30.5)

4,306

(33.2)

Notes: 1. YUASA TRADING CO., LTD. (the "Company") has applied the "Accounting Standard for Revenue Recognition" (ASBJ Statement No. 29, March 31, 2020) and relevant revised ASBJ regulations from the beginning of the first quarter of the fiscal year ending March 31, 2022, and each figure for the nine months ended December 31, 2021, is the figure after applying said accounting standard and relevant revised ASBJ regulations. The percentage of year-on-year change is not shown for net sales. If said standard, etc. were not applied, net sales would be ¥339,170 million (up 8.8% year on year).

2. Comprehensive income

For the nine months ended December 31, 2021:

¥2,744 million

[(50.4)%]

For the nine months ended December 31, 2020:

¥5,528 million

[(11.2)%]

Basic earnings

Diluted earnings

per share

per share

Nine months ended

Yen

Yen

December 31, 2021

212.69

211.33

December 31, 2020

194.38

193.03

(2) Consolidated financial position

Total assets

Net assets

Equity-to-asset ratio

As of

Millions of yen

Millions of yen

%

December 31, 2021

249,713

90,358

35.9

March 31, 2021

237,487

90,242

37.7

Reference: Equity

As of December 31, 2021:

¥89,748 million

As of March 31, 2021:

¥89,601 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

-

30.00

-

70.00

100.00

March 31, 2021

Fiscal year ending

-

49.00

-

March 31, 2022

Fiscal year ending

March 31, 2022

74.00

123.00

(Forecast)

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

3. Consolidated earnings forecasts for the fiscal year ending March 31, 2022 (from April 1, 2021 to March 31, 2022)

(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

Full year

471,000

-

11,700

30.2

11,300

12.9

7,600

9.7

343.83

Notes: 1. Revisions to the earnings forecasts most recently announced: None

2. The Company has applied the "Accounting Standard for Revenue Recognition" (ASBJ Statement No. 29, March 31, 2020) and relevant revised ASBJ regulations from the beginning of the first quarter of the fiscal year ending March 31, 2022, and the consolidated earnings forecasts above are based on the figures after applying said accounting standard and relevant revised ASBJ regulations. The percentage of year-on-year change is not shown for net sales. If said standard, etc. were not applied, net sales would be ¥492,000 million for the full year (up 13.8% year on year).

* 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: Yes
    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 December 31, 2021

23,155,882 shares

As of March 31, 2021

23,155,882 shares

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

As of December 31, 2021

1,048,789 shares

As of March 31, 2021

1,071,190 shares

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

Nine months ended December 31, 2021

22,105,008 shares

Nine months ended December 31, 2020

22,157,340 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 December 31, 2021 and 196,129 shares as of March 31, 2021). 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) (191,321 shares for the nine months ended December 31, 2021 and 129,455 shares for the nine months ended December 31, 2020).

  • 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 Nine 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 Nine 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

Change in accounting policy...................................................................................................................................

10

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

11

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

12

1

1. Qualitative Information Regarding Results for the First Nine Months

  1. Explanation of operating results
    The Company has applied the "Accounting Standard for Revenue Recognition" (ASBJ Statement No. 29, March 31, 2020) and relevant revised ASBJ regulations from the beginning of the first quarter of the fiscal year ending March 31, 2022. Therefore, the following explanation of the operating results shows the actual values of the net sales for the same quarter during the previous fiscal year, which do not retroactively apply the "Accounting Standard for Revenue Recognition," without showing the net sales compared to the same quarter during the previous fiscal year (%).
    For details, please refer to "Change in accounting policy" of "(3) Notes to quarterly consolidated financial statements" in "2. Quarterly consolidated financial statements and significant notes thereto."
    While there was progress in normalization of economic activities in the Japanese economy during the nine months under review (April 1, 2021 to December 31, 2021), the situation remained uncertain due to the effect of the COVID-19 pandemic and tight global supply and demand for semiconductors.
    In the industrial field, although the recovery in demand for capital investment accelerated and the order environment for machine tools, etc. recovered, the shortage of semiconductors and related components had an impact on production activities, mainly in the automobile-related industry. In the housing and construction field, in addition to public works investments, the number of new housing starts, mainly for condominiums, was on a recovery trend.
    For overseas economies, although there were some suspensions of plant operations due to supply chain disruptions from the shortage of marine shipping containers in addition to shortages of components and materials, the economic recovery continued mainly in the US. In addition, Southeast Asian countries such as Thailand and Indonesia also had a pick-up in their economies.
    Under these circumstances, based on the Group Mid-term Management Plan "Growing Together 2023," aiming to evolve into a "TSUNAGU Service Integrated Shosha Group," we executed various policies under the basic policies of a "growth business strategy," "core business strategy," and "strengthening management foundation" while also strengthening our initiatives on "ESG" and "SDGs."
    In the "growth business strategy," we concentrated on the development of new products and services in fields such as climate change, infection countermeasures, labor-saving and automation measures, based on the understanding that growth businesses are businesses that solve social issues. As for "core business strategy," we strengthened and expanded our efforts 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. At the Kanto Grand Fair held in November 2021, we proposed innovations that resolve various social issues in order to realize a sustainable society throughout the supply chain.
    Under "strengthening management foundation," we worked on various measures to strengthen our competitiveness, launching initiatives aimed at transforming into a digital trading company shifting "From Single Item Business to Integrated Product-Service" through the promotion of DX. In October 2021, we established and formulated the "Sustainability Declaration" and "Action Plan" with the aim of promoting the resolution of social issues through our core business, and we established the Sustainability Promotion Committee as an advisory body to the Board of Directors. At the same time, we will express our support for the Task Force on Climate-Related Financial Disclosures (TCFD) and actively contribute to the establishment of a sustainable society.
    As a result, consolidated net sales for the nine months under review were ¥326,190 million (¥311,620 million in the same period of the previous fiscal year). Operating profit was ¥6,945 million (up 21.5% year on year), ordinary profit was ¥6,512 million (up 0.8% year on year), and profit attributable to owners of parent was ¥4,701 million (up 9.2% year on year).
    Furthermore, net sales show the actual value for the same quarter of the previous fiscal year, which does not retroactively apply the "Accounting Standard for Revenue Recognition."
    Results by reportable segment are as follows:

    In the Industrial Equipment & Tools Division, demand for cutting tools, measuring instruments, and control equipment recovered significantly, as production activities continued to be resilient and plant utilization

2

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Yuasa Trading Co. Ltd. published this content on 18 February 2022 and is solely responsible for the information contained therein. Distributed by Public, unedited and unaltered, on 18 February 2022 08:30:05 UTC.