Neturen Co., Ltd.TSE: 5976

Financial Results of the Fiscal Year Ended March 31, 2025 (FY2025)

· Issued by Neturen Co., Ltd.
Financial Results of the Fiscal Year Ended March 31, 2025

May 23, 2025

Neturen Co., Ltd.

Ⓒ2008 NETUREN designed by MONDO DESIGN



1. Overview of Consolidated Financial Results for the Fiscal Year Ended March 31, 2025

  • Sales increased by 0.5% compared to last year due to successful cost passing to the sales prices and exchange gain of the sales of overseas subsidiaries.

  • Operational profit reduced by 0.9% compared to last year because of

increased fixed cost caused by reduced production volume.

(Million yen)

FY2023



FY202４

Change

Change Rate (%)

Net Sales

57,205

57,563

358

0.6%

Operating income

1,632

1,617

▲１４

▲0.9%

Ordinary income

2,511

2,321

▲189

▲7.6%

Profit attributable to owners of parent

1,542

1,815

２７３

１７．７%

Return on equity (ＲＯＥ)

2.6%

3.0％

ー

ー

Return on assets （ROA)

3.1%

2.8％

ー

ー

Return on Investment Capital (ROIC)

2.6%

2.7%

ー

ー

  1. Consolidated Statements of Income

    (Million yen)

    Item

    Year

    FY2023

    FY2024

    Change

    Change Rate (%)

    Net sales

    57,205

    57,563

    358

    0.6%

    Cost of sales

    47,354

    47,217

    ▲136

    ▲0.3%

    Gross income

    9,850

    10,346

    495

    5.0%

    Selling, general and administrative expenses

    Operating income

    8,218

    1,632

    8,728

    1,617

    510

    ▲14

    6.2%

    ▲0.9%

    Non-operating income

    951

    811

    ▲139

    ▲14.7%

    Non-operating expenses

    72

    108

    35

    49.0%

    Ordinary income

    2,511

    2,321

    ▲189

    ▲7.6%

    Extraordinary income

    324

    1,263

    939

    289.4%

    Extraordinary losses

    189

    766

    576

    303.5%

    Profit before income taxes

    2,645

    2,818

    172

    6.5%

    Income taxes - current

    696

    572

    ▲123

    ▲17.7%

    Income taxes - deferred

    ▲105

    29

    135

    0.0%

    2,055

    2,216

    160

    7.8%

    1,542

    1,815

    273

    17.7%

    ５１２

    400

    ▲112

    ▲２１．９%

    Total income taxes Profit attributable to:

    interests

    Profit attributable to owners of parent Profit attributable to non-controlling



  2. Factors Affecting Changes in Consolidated Operating Income

    • Profit gain by ¥40M due to sales increase, and ¥280M by successful passing of material and electricity cost increase to our sales prices.

    • Profit decline by ¥340M because of worldwide rising labor cost and fixed cost increase because of sales reduction in construction, construction machinery and machine tool industry. (100million JPY)

    Passing on the

    Cost Increase to Sales Prices

    Worldwide

    Labor Cost Rising

    ０．４

    ▲3.4

    １６

１６

2.8

30

20

10

0

FY202３

Operating income

Net sales Variable costs Fixed costs FY2024

Operating income

  1. Breakdown of Extraordinary Income/Losses

    • Extraordinary income of ¥1,217M was recorded by sale of investment securities.

    • Extraordinary loss of ¥712M was recorded by recognizing impairment losses.

Extraordinary Income

Amount

Content

Sale of investment security

¥1,217M

  • All of Chita Kogyo Co.'s common shares which we had hold were tendered in the tender offer conducted by KYB Corporation and it was successfully completed.

Extraordinary Losses

Amount

Content

Impairment of equipment in Kani Plant

¥479M

  • Finish production of automobile models which our parts were installed.

  • Finish production of motorcycles

by insolvency of our customer.

Impairment of equipment in Kani NH Plant

¥233M

  • Reduction of heat treatment service to automobile companies.

5. Segment Information (Consolidated Net Sales)

  • Specialty Steel and Wire Products

Division：

Sales to construction industry increased even market was not good, but those to construction machinery decreased according to bad market condition. ITW for

automotive industry increased but rack bars and motorcycle parts decreased a lot.

  • Induction Heating Division：

Sales increased due to stable orders of equipment even sales to automobile parts declined in the latter half of the year and those to construction machinery and

machine tool remained downturn whole year.

(Million JPY)

Business segment

Main products/services

FY2023

FY202４

Change

Change (%)

Specialty Steel and Wire Products Division

Steel bars for prestressed concrete (PC)

High-strength shear reinforcement High-strength spring steel wire ITW®Hollow rack bars

Slewing bearings (construction equipment parts)

36,822



36,568

▲25３

▲0.7%

Induction Heating Division

Induction heat treatment-related services

Induction heating equipment/services

20,241

20,851

609

3.0％

Others

Leasing business others

140

143

２

1.7%

Total

57,205

57,563

358

0.6%

6．Segment Information (Consolidated Operating Income)

  • Specialty Steel and Wire Products

Division：

Income gained due to sales increase of the high strength shear reinforcement bars and successful passing on the escalated cost to sales prices even sales of

construction machine parts, rack bars and motorcycle parts declined a lot.

  • Induction Heating Division：

Income reduced by increased fixed cost caused by slow production of automobiles in the second half of the year and low demand of construction

machinery and machine tool whole year . (Million JPY)



Business segments

Main products/services

FY202３

FY202４

Change

Change Rate (%)

Specialty Steel and Wire Products Division

Steel bars for prestressed concrete (PC)

High-strength shear reinforcement High-strength spring steel wire ITW®Hollow rack bars

Slewing bearings (construction equipment parts)

123

180

5６

45.3%

Induction Heating Division

Induction heat treatment-related services

Induction heating equipment/services

1,448

1,377

▲71

▲4.9%

Others

Leasing business others

55

56

０

1.8%

Elimination of intersegment transactions

4

３

0

▲8.0%

Total

Copyright Neturen Co., Ltd. All Rights Reserved

1,632

1,617

▲14

▲0.9%

7

  1. YoY Consolidated Asset Trend

    • Total asset increased by 3.9% YoY because of increase in cash and deposits by borrowing long term loan.

    • The market value of policy-holding stocks included in investment securities has been on an upward trend due to rising share prices. However, the number of such stocks has decreased each year,

      declining by 34 stocks or 69.3% compared to FY2019.

      (100MJPY)

      1,000

      Account Receivables Investment Securities Tangible Fixed Assets Other Assets

      800

      755

      820 798 806 837

      600

      400

      143

      90

      291

      156

      90

      280

      150

      99

      254

      168

      102

      260

      152 101 262

      200

      229

      292

      294

      274

      320

      0

      FY2020 FY2021 FY2022 FY2023 FY2024

      14thBusiness Plan

      15thBusiness Plan

      １6th Business Plan

      ※ Other Assets include cash, deposits and inventories.

  2. YoY Consolidated Liabilities and Equity Trend

    • Liabilities increased by 23.3% compared to the previous year, mainly due to long-term borrowing from financial institutions for capital investment.



    • Net assets decreased by 0.2% compared to the previous year owing to share buybacks and dividend payments, despite an increase of 1.3 billion JPY in foreign currency translation adjustments.

    Account Payable

    Borrowings

    (100MJPY) 1,000

    Other Liabilities Net Asset

    820 798 806 837

    800

    600

    755 72

    58

    21 72

    14

    27 57 46

    43

    55

    81

    6 67

    53 51

    Liabilities: 17BJPY

    Net Asset: 66BJPY

    400

    627

    668

    665

    664

    663

    200

    0

    FY2020 FY2021 FY2022 FY2023 FY2024

    14thBusiness Plan

    15thBusiness Plan

    １６th Busines Plan

  3. FY2024 Cash Flows (Consolidated)

    • Operating cash flow remained flat compared to the previous year due in part to a decrease in account receivables.

    • Investing cash flow increased in outflows due to higher acquisition of fixed assets.

    • Financing cash flow increased due to long-term borrowings, despite dividend payments and share buybacks.

(Million yen)

Item

FY２０２３

FY２０２４

Change



Profit before income taxes

2,645

2,818

172

Depreciation

2,377

2,334

▲42

Impairment loss

ー

712

712

Decrease (increase) in trade receivables

▲1,617

1,973

3,591

Increase (decrease) in trade payables

745

▲2,771

▲3,516

Other, net

41

▲960

▲1,002

Cash flows from operating activities

4,193

4,107

▲85

Cash flows from investing activities

▲1,647

▲3,404

▲1,757

Free cash flows

2,546

703

▲1,842

Borrowings

▲75６

6,106

6,863

Purchase of treasury shares

▲1,500

▲2,000

▲500

Dividends paid

▲1,447

▲1,785

▲337

Other, net

▲1,376

▲608

768

Cash flows from financing activities

▲5,080

1,713

6,793

Cash flows at end of period

14,810

17,580

2,770