Ichikoh Industries : Summary of consolidated financial results as of December 31, 2024

Published February 14, 2025 at 10:55 a.m. UTC

Source: MarketScreener

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.

Consolidated Financial Results

for the Year Ended December 31, 2024

[Japanese GAAP]

February 14, 2025

Company name: ICHIKOH INDUSTRIES, LTD.

Listing: Tokyo

Securities code: 7244

URL: http://www.ichikoh.com/

Representative: Christophe Vilatte

President, CEO, Representative director

Inquiries: Tomonori Hisano

GM of Corporate Planning Department

Telephone: +81-463-96-1442

Scheduled date of annual general meeting of shareholders: March 27, 2025

Scheduled date to commence dividend payments: March 28, 2025

Scheduled date to file annual securities report: March 28, 2025

Preparation of supplementary material on financial results: Yes

Holding of financial results briefing: Yes

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

1. Consolidated Financial Results for the Fiscal Year Ended December 31, 2024 (January 1, 2024 to December 31, 2024)

(1) Consolidated Operating Results

(Percentages indicate year-on-year changes.)

Net sales

Operating profit

Ordinary profit

Profit attributable to

owners of parent

Fiscal year ended

Millions of yen

December 31, 2024

125,544

(14.0)

4,883

(34.2)

6,517

(19.8)

4,470

(43.0)

December 31, 2023

145,897

7.7

7,422

88.5

8,130

51.9

7,838

77.2

(Note) Comprehensive income:

Fiscal year ended December 31, 2024:

7,360 million

[

(31.3) %]

Fiscal year ended December 31, 2023:

10,716 million

[

99.3%]

Basic earnings per

Diluted earnings per

Rate of return on

Ordinary profit to

Operating profit to

equity

total assets ratio

net sales ratio

Fiscal year ended

Yen

December 31, 2024

46.48

6.7

5.0

3.9

December 31, 2023

81.53

13.2

6.4

5.1

(Reference) Equity in earnings (losses) of affiliated companies: Fiscal year ended December 31, 2024: Fiscal year ended December 31, 2023:

2,093 million
1,024 million

(2) Consolidated Financial Position

	Total assets	Net assets	Capital adequacy ratio	Net assets per share

As of	Millions of yen		Millions of yen	%	Yen
December 31, 2024	130,089		70,951	53.8	728.29
December 31, 2023	129,417		64,730	49.5	666.00
(Reference) Equity: As of	December 31, 2024:	¥	70,048 million
As of	December 31, 2023:	¥	64,038 million
(3) Consolidated Cash Flows

	Cash flows from	Cash flows from	Cash flows from	Cash and cash
	equivalents at the end
	operating activities	investing activities	financing activities
	of period

Fiscal year ended	Millions of yen	Millions of yen	Millions of yen	Millions of yen
December 31, 2024	11,047		(4,729)	(3,036)	12,642
December 31, 2023	13,372		(9,609)	(3,799)	8,937

―1―

2. Dividends

			Annual dividends				Payout	Dividends
					Total	to net
								ratio
	1st		2nd	3rd		Year-end	Total	dividends	assets
			(consolidated)
	quarter-end	quarter-end	quarter-end			(consolidated)
Fiscal year ended		Yen	Yen	Yen		Yen	Yen	Millions of yen	%	%
December 31, 2023		-	5.50	-		5.50	11.00	1,057	13.5	1.8
December 31, 2024		-	6.50	-		6.50	13.00	1,250	28.0	1.9

Fiscal year ending
December 31, 2025		-	7.00	-		7.00	14.00		34.5
(Forecast)

3. Consolidated Financial Results Forecast for the Fiscal Year Ending December 31, 2025 (January 1, 2025 to December 31, 2025) (Percentages indicate year-on-year changes.)

		Net sales			Operating profit	Ordinary profit	Profit attributable	Basic earnings per
				to owners of parent	share

		Millions of				Millions of		Millions of		Millions of
		yen		%		yen	%	yen	%	yen	%	Yen
Six months ending June		57,300		(7.9)		2,500	42.1	3,000	28.8	1,700	23.0	17.68
30, 2025

Full year		121,000		(3.6)		5,400	10.6	6,200	(4.9)	3,900	(12.8)	40.57
* Notes:
(1) Significant changes in the scope of consolidation during the period:			Yes
Newly included:	-	(Company name:							)
Excluded:	1	(Company name: PIAA Corporation					)

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
Number of issued shares (common shares)
1. Total number of issued shares at the end of the period (including treasury shares):

December 31, 2024:	96,363,161	shares
December 31, 2023:	96,334,226	shares
2) Number of treasury shares at the end of the period:
December 31, 2024:	181,424	shares
December 31, 2023:	180,942	shares

3) Average number of shares outstanding during the period:
Fiscal Year ended December 31, 2024:	96,170,820	shares
Fiscal Year ended December 31, 2023:	96,141,275	shares

―2―

(Reference) Overview of Non-consolidated Financial Results
1. Non-consolidated Financial Results for the Fiscal Year Ended December 31, 2024 (January 1, 2024 to December 31, 2024)
(1) Non-consolidated Operating Results							(Percentages indicate year-on-year changes.)

	Net sales			Operating profit			Ordinary profit	Net income

Fiscal year ended	Millions of yen		%		Millions of yen	%			Millions of yen	%	Millions of yen		%
December 31, 2024	87,042		(14.6)		2,012	(48.1)		2,929	(28.5)	3,428		(15.8)
December 31, 2023	101,871		8.0		3,877	275.2		4,097	31.5	4,072		99.6

	Basic earnings per share	Diluted earnings per share

Fiscal year ended			Yen		Yen
December 31, 2024			35.65			-
December 31, 2023			42.36			-
(2) Non-consolidated Financial Position

	Total assets		Net assets		Capital adequacy ratio	Net assets per share

As of	Millions of yen		Millions of yen				%			Yen
December 31, 2024			90,446			47,915				53.0			498.17
December 31, 2023			92,284			45,626				49.4			474.52
(Reference) Equity: As of	December 31, 2024:	¥	47,915 million
As of	December 31, 2023:	¥	45,626 million

Review of the Japanese-language originals of the attached consolidated quarterly financial statements by certified public accountants or an audit firm: None
Proper use of earnings forecasts, and other special matters

As for the future statements of performance forecast, etc. contained in this material, the statements are based on the information currently available to the company and certain information that the company deems reasonable. Please note that actual results may differ due to various factors

―3―

(1) Explanation of business results

During this consolidated fiscal year, the Japanese economy was on a recovery trend, with improvements in the employment and income environment and a recovery in capital investment, despite the impact of high prices on personal consumption. However, concerns remain about the outlook for overseas economies, including the stagnation of the Chinese real estate market, policy trends in the United States, and the situation in the Middle East.

In the automobile industry to which our group belongs, domestic production in Japan decreased compared to the previous year due to the issue of certification fraud by automobile manufacturers, etc. In ASEAN, automobile production volume increased compared to the previous year in Malaysia, but decreased compared to the previous year in Indonesia and Thailand due to sluggish sales caused by a decline in the utilization rate of automobile loans, etc., and the total for the three ASEAN countries decreased compared to the previous year.

Under this market environment, in the current consolidated fiscal year, sales decreased to 125,544 million yen (down 14.0% from the previous year) due to the impact of the decline in sales from the mirror business, which was sold in the previous consolidated fiscal year, and the after-market business, which was sold in the current consolidated fiscal year, as well as the impact of reduced production due to the certification fraud issue in Japan. In terms of profits, although there were positive aspects such as the promotion of price pass-through, improvement in defect rates, and improvement in productivity, the impact of the sales decline and other factors led to a decrease in operating profit to 4,883 million yen (down 34.2% from the previous year), ordinary profit to 6,517 million yen (down 19.8% from the previous year) due to the recording of investment profits under the equity method of 2,093 million yen, etc., and net profit attributable to parent company to 4,470 million yen (down 43.0% from the previous year) despite the recording of a gain on the sale of shares of affiliated companies by the transfer of PIAA shares of 869 million yen, etc.

The performance by segment is as follows:

1. Auto-Components business

In Japan, our main market, the year-on-year decline in our non-consolidated sales exceeded the market decline, due to the impact by reduction in production of many vehicle models. In ASEAN, the market for the three ASEAN countries in total declined year-on- year, while the total sales of our three ASEAN subsidiaries increased year-on-year due to the favorable sales of Malaysia . As a result, the sales for the auto-components business reduced to 121,345 million yen (down 12.0% year-on-year), and operating profit reduced to 4,679 million yen (down 33.8% year-on-year).

2.After-Market Business

The after-market business includes the results of our subsidiary PIAA, but due to the transfer of our shares in the company at the end of August, the record of the results are up to June in the current consolidated fiscal year. As a result, both sales and profits decreased compared to the previous year, with sales decreasing to 5,002 million yen (down 49.1% year-on-year) and operating profit decreasing to 206 million yen (down 42.2% year-on-year).

(3) Future outlook

Regarding the business outlook for the fiscal year ending December 2025, while we expect a recovery in production as the certification fraud issue is resolved, we also anticipate concerns such as a decline in consumption due to the economic slowdown, including the impact of U.S. policies, rising prices due to the weak yen, and the possibility of monetary tightening after overcoming deflation.

Under this market environment, we expect sales to be affected by the sale of the after-market business and concerns about a decline in production volume in the ASEAN market, leading to a forecast of sales of 121,000 million yen (down 3.6%). In terms of profits, although there will be an impact from the decline in sales, we expect operating profit to be 5,400 million yen (up 10.6%) due to the effects of productivity improvements, rationalization, and the promotion of price pass-through . Due to the loss of the one-off increase in investment profits accounted for using the equity method recorded in the previous year, we expect ordinary profit to be 6,200 million yen (down 4.9%), and due to the loss of the gain on sale of PIAA shares recorded in the previous year, we expect net profit attributable to parent company to be 3,900 million yen (down 12.8%).

Regarding dividends for the fiscal year ending December 2025, taking into consideration the improvement in the dividend payout ratio and dividend on equity (DOE) disclosed at the financial results briefing, etc., we plan to pay an annual dividend of 14 yen per share, an increase of 1 yen from the 13 yen per share for the fiscal year ending December 2024.

―4―

Consolidated Financial Statements

Consolidated Balance Sheets

					(Millions of yen)
				As of December 31, 2023	As of December 31, 2024

Assets
	Current assets

		Cash and deposits	8,937	12,642
		Notes and accounts receivable - trade	24,401	16,606

		Electronically recorded monetary claims -	379	19
		operating

		Merchandise and finished goods	4,172	1,888

		Work in process	782	3,210
		Raw materials and supplies	4,427	3,668

		Short-term loans receivable	21,648	25,917
		Other	2,671	2,639

		Allowance for doubtful accounts	(82)	(81)
		Total current assets	67,337	66,512

	Non-current assets
		Property, plant and equipment

			Buildings and structures	23,707	22,918
			Accumulated depreciation	(12,903)	(12,997)

			Buildings and structures, net	10,803	9,921
			Machinery, equipment and vehicles	40,642	42,318

			Accumulated depreciation	(23,304)	(25,962)
			Machinery, equipment and vehicles, net	17,337	16,355

			Tools, furniture and fixtures	11,524	11,543
			Accumulated depreciation	(9,252)	(9,751)

			Tools, furniture and fixtures, net	2,271	1,791
			Land	2,302	1,781

			Leased assets	7,503	7,988
			Accumulated depreciation	(4,120)	(4,468)

			Leased assets, net	3,383	3,520
			Construction in progress	3,602	5,089

			Total property, plant and equipment	39,701	38,461
		Intangible assets

			Other	123	38
			Total intangible assets	123	38

		Investments and other assets
			Investment securities	2,958	3,474

			Long-term loans receivable	737	769
			Investments in capital of subsidiaries and	10,527	12,921
			associates

			Retirement benefit asset	1,556	2,633
			Deferred tax assets	4,804	3,891

			Other	1,673	1,389
			Allowance for doubtful accounts	(2)	(2)

			Total investments and other assets	22,255	25,076
		Total non-current assets	62,079	63,577

	Total assets	129,417	130,089

―5―

			(Millions of yen)
		As of December 31, 2023	As of December 31, 2024

Liabilities
Current liabilities

	Notes and accounts payable - trade	15,724	14,091
	Electronically recorded obligations - operating	16,956	16,554

	Short-term borrowings	1,150	13
	Current portion of long-term borrowings	920	-

	Lease liabilities	640	635
	Income taxes payable	1,376	1,021

	Accrued expenses	5,480	6,406
	Accounts payable - other	3,770	3,366

	Provision for bonuses	910	910
	Provision for bonuses for directors (and other	25	34
	officers)

	Provision for product warranties	1,764	973
	Other	5,191	4,075

	Total current liabilities	53,910	48,082
Non-current liabilities

	Lease liabilities	3,257	3,731
	Retirement benefit liability	7,296	7,148

	Asset retirement obligations	26	26
	Other	195	149

	Total non-current liabilities	10,775	11,055
Total liabilities	64,686	59,138

Net assets
Shareholders' equity

	Share capital	8,996	9,003
	Capital surplus	2,515	2,523

	Retained earnings	51,536	54,853
	Treasury shares	(55)	(56)

	Total shareholders' equity	62,993	66,323
Accumulated other comprehensive income

	Valuation difference on available-for-sale	89	-
	securities

	Foreign currency translation adjustment	2,014	4,195

	Remeasurements of defined benefit plans	(1,058)	(470)
	Total accumulated other comprehensive income	1,044	3,724

Non-controlling interests	692	902
Total net assets	64,730	70,951

Total liabilities and net assets	129,417	130,089

―6―

Consolidated Statements of Income and Comprehensive Income

Consolidated Statements of Income

			(Millions of yen)
		For the fiscal year	For the fiscal year
		ended December 31, 2023	ended December 31, 2024

Net sales	145,897	125,544
Cost of sales	118,172	103,639

Gross profit	27,724	21,904
Selling, general and administrative expenses	20,301	17,021

Operating profit	7,422	4,883
Non-operating income

	Interest income	215	206
	Dividend income	10	6

	Share of profit of entities accounted for using equity	1,024	2,093
	method

	Other	22	18

	Total non-operating income	1,273	2,324
Non-operating expenses

	Interest expenses	130	166
	Commission expenses	6	6

	Foreign exchange losses	368	517
	Other	60	0

	Total non-operating expenses	565	690
Ordinary profit	8,130	6,517

Extraordinary income
	Gain on disposal of non-current assets	3,971	7

	Gain on sale of shares of subsidiaries and associates	-	869
	Total extraordinary income	3,971	876

Extraordinary losses
	Loss on disposal of non-current assets	651	100

	Impairment losses	40	-
	Loss on sale of shares of subsidiaries and associates	1,261	-

	Business restructuring expenses	341	432
	Total extraordinary losses	2,295	532

Profit before income taxes	9,806	6,861
Income taxes - current	1,647	1,877

Income taxes - deferred	266	394
Total income taxes	1,914	2,272

Profit	7,891	4,589
Profit attributable to non-controlling interests	53	118

Profit attributable to owners of parent	7,838	4,470

―7―

Consolidated Statements of Comprehensive Income

			(Millions of yen)
		For the fiscal year	For the fiscal year
		ended December 31, 2023	ended December 31, 2024

Profit	7,891	4,589
Other comprehensive income

	Valuation difference on available-for-sale securities	(2)	(89)
	Foreign currency translation adjustment	1,283	1,180

	Remeasurements of defined benefit plans, net of tax	836	588
	Share of other comprehensive income of entities	706	1,092
	accounted for using equity method

	Total other comprehensive income	2,825	2,771
Comprehensive income	10,716	7,360

Comprehensive income attributable to

Comprehensive income attributable to owners of parent

Comprehensive income attributable to non-controlling interests

10,6457,150

71210

―8―

Consolidated Statements of Changes in Equity

For the fiscal year ended December 31, 2023

				(Millions of yen)

		Shareholders' equity

			Retained		Total
	Share capital	Capital surplus	Treasury shares	shareholders'
	earnings
				equity

Balance at beginning	8,986	2,505	44,660	(55)	56,096
of period

Changes during
period
Profit attributable to			7,838		7,838
owners of parent

Issuance of new	10	10			20
shares

Dividends of			(961)		(961)
surplus

Purchase of				(0)	(0)
treasury shares

Net changes in
items other than
shareholders' equity
Total changes	10	10	6,876	(0)	6,897
during period

Balance at end of	8,996	2,515	51,536	(55)	62,993
period


	Accumulated other comprehensive income

	Valuation			Total	Non-controlling
	Foreign currency	Remeasurements	accumulated	Total net assets
	difference on
	translation	of defined	other	interests

	available-for-

	adjustment	benefit plans	comprehensive
	sale securities
			income

Balance at beginning	91	41	(1,895)	(1,762)	673	55,007
of period

Changes during
period
Profit attributable to						7,838
owners of parent

Issuance of new						20
shares

Dividends of						(961)
surplus

Purchase of						(0)
treasury shares

Net changes in
items other than	(2)	1,972	836	2,807	18	2,825
shareholders' equity
Total changes	(2)	1,972	836	2,807	18	9,722
during period

Balance at end of	89	2,014	(1,058)	1,044	692	64,730
period

―9―

For the fiscal year ended December 31, 2024

				(Millions of yen)

		Shareholders' equity

			Retained		Total
	Share capital	Capital surplus	Treasury shares	shareholders'
	earnings
				equity

Balance at beginning	8,996	2,515	51,536	(55)	62,993
of period

Changes during
period
Profit attributable to			4,470		4,470
owners of parent

Issuance of new	7	7			14
shares

Dividends of			(1,154)		(1,154)
surplus

Purchase of				(0)	(0)
treasury shares

Net changes in
items other than
shareholders' equity
Total changes	7	7	3,316	(0)	3,330
during period

Balance at end of	9,003	2,523	54,853	(56)	66,323
period


	Accumulated other comprehensive income

	Valuation			Total	Non-controlling
	Foreign currency	Remeasurements	accumulated	Total net assets
	difference on
	translation	of defined	other	interests

	available-for-

	adjustment	benefit plans	comprehensive
	sale securities
			income

Balance at beginning	89	2,014	(1,058)	1,044	692	64,730
of period

Changes during
period
Profit attributable to						4,470
owners of parent

Issuance of new						14
shares

Dividends of						(1,154)
surplus

Purchase of						(0)
treasury shares

Net changes in
items other than	(89)	2,180	588	2,679	210	2,890
shareholders' equity
Total changes	(89)	2,180	588	2,679	210	6,220
during period

Balance at end of	-	4,195	(470)	3,724	902	70,951
period

―10―