Summary of Financial Results for the Second Quarter of the Fiscal Year
Ending December 31, 2023
August 1, 2023
KOKUYO Co., Ltd.
© 2023 KOKUYO Co.,Ltd.
Contents
- Second Quarter FY2023 Results
- Update on Third Medium-Term Plan (2022-2024): Field Expansion 2024
- Full-YearFY2023 Forecasts
- Reference Materials
* The business segments are as follows:
Furniture Businesses: FN
Business Supply Distribution:
BS Stationery Businesses:
ST Interior Retail Businesses: IR
- Unless otherwise indicated, monetary figures are rounded down to the nearest hundred million yen. As such, the sum of the figures in a breakdown may not match the stated total.
© 2023 KOKUYO Co.,Ltd.
Executive Summary
Second Quarter FY2023 Results
✔Net sales, while falling short of the initial forecast, grew year on year thanks to a steady increase in orders in the furniture business.
✔Operating income grew year on year and far exceeded our initial forecast. Factors included better profitability in the furniture business, better margins in the Indian stationery business, and a postponement of SG&A expenditures.
Update on Third Medium-Term Plan
✔Reaching the halfway point in our third medium-term plan (2022-2024), we reviewed progress and noted that we're on track with our four priority tasks and business strategies for field expansion.
✔Of the priority tasks, we made huge progress in dynamic investment by enacting M&As. We made progress in the task of balancing social value and business value by launching diversity and circular economy initiatives that are highly relevant to our businesses.
✔Progress in each field: To expand the Workstyle field, we drove forward a global business expansion while expanding our office space lineup in Japan. For the Lifestyle field, we expanded our stationery brands in China and India.
Full-Year FY2023 Forecasts
✔We've upgraded full-yearperformance forecasts in view of recent performance and expenditures.
✔Net sales forecast: Huge growth is expected with Kokuyo Hong Kong contributing to full-year earnings and with recovered growth in the Chinese and Indian stationery businesses.
✔Operating income forecast: Despite higher strategic expenditures, growth is expected in view of good business progress such as the continued winning of orders in the furniture business.
✔Net income forecast: Net income is expected to rise to an all-timehigh with the sale of cross-shareholdings more than offsetting a post-bounce dip from last year's recording of gain on sale of equity-method investment (in Pentel's shares).
✔Dividends: Committed to a stable increase in dividend with a payout ratio of at least 40%, we're going to pay a dividend of ¥65 (interim dividend:
¥32.5), ¥8 more than the initial forecast.
✔Capital policy: We continued identifying and discussing medium- and long-term strategic challenges. We decided to repurchase ¥5.0 billion worth of shares by the end of 2024, for a total return ratio of 50%, gradually reduce our cross-shareholdings,and to retire treasury stock in excess of 5% of 3 our total issued shares.
© 2023 KOKUYO Co.,Ltd.
1. Second Quarter FY2023 Results
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© 2023 KOKUYO Co.,Ltd.
Second Quarter FY2023 Results: Year on Year
Net sales and operating income increased YoY.
Net income decreased YoY. The decrease is a comedown from the recorded gain on sales of investment
securities in FY2022.
Jan-Jun FY2022
result
Jan-Jun FY2023 | Jan-Jun FY2023 |
forecast | result |
YoY change
Divergence from
forecast
(Millions of yen)
Net sales | 156,424 | 176,100 | 173,585 | +11.0% | -1.4% |
Gross profit | 61,219 | 68,800 | 68,010 | +11.1% | -1.1% |
(ratio) | 39.1% | 39.1% | 39.2% | ||
SG&A expenses | 48,487 | 55,600 | 52,236 | +7.7% | -6.1% |
(ratio) | 31.0% | 31.6% | 30.1% | ||
Operating income | 12,731 | 13,200 | 15,773 | +23.9% | +19.5% |
(ratio) | 8.1% | 7.5% | 9.1% | ||
Ordinary income | 14,614 | 14,000 | 17,266 | +18.1% | +23.3% |
(ratio) | 9.3% | 8.0% | 9.9% | ||
Net income attributable | 10,845 | 9,600 | 11,747 | +8.3% | +22.4% |
to owners of parent | |||||
(ratio) | 6.9% | 5.5% | 6.8% | ||
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© 2023 KOKUYO Co.,Ltd.