Rinnai Corporation TSE:5947

Rinnai : Financial Results

Published August 7, 2024 at 5:23 a.m. UTC

Source: MarketScreener

Financial Results for First Quarter of

Fiscal 2025, ending March 31, 2025

August 7, 2024

Fiscal 2025 (1Q): Consolidated Performance Overview

Net sales: ¥98.1 billion (up 9.3% year on year)

Record-high level

Record-higher net sales partly due to foreign exchange factors amid normalizing business conditions worldwide

Operating income: ¥8.7 billion

(up 180.0% year on year, operating income to net sales ratio: 8.9%)

Increase in operating income thanks to price revisions and cost reduction activities despite continued high domestic raw material costs

Ordinary income: ¥10.8 billion

(up 84.7% year on year, ordinary income to net sales ratio: 11.1%)

Increase with the help of foreign exchange gain, in addition to operating profit

Net income attributable to owners of the parent company: ¥6.8 billion

(up 107.3% year on year, net income to net sales ratio: 6.9%)

- Return to normal business environment and a smooth start toward achieving medium-term business plan

©Rinnai Corporation

Fiscal 2025 (1Q) : Consolidated Financial Results

Net Sales	Operating Income
[Billions of Yen]	[Billions of Yen]	Operating income to

120				12	10.9%	10.6%	net sales ratio


								8.9%
90				9
60				6			3.5%
30				3
0				0
FY2022 FY2023	FY2024	FY2025		FY2022 FY2023	FY2024	FY2025
１Q	１Q	１Q	１Q		１Q	１Q	１Q	１Q

Attributable to owners of the parent company

Net Income

[Billions of Yen]
12			Net income to

			net sales ratio
9	7.3%	7.4%		6.9%

6
			3.7%
3
0	FY2022 FY2023	FY2024	FY2025

	１Q	１Q	１Q	１Q

Record-highernet sales supported by price revisions and foreign exchange factors despite weak global housing market
The impact of elevated inventories in the major markets of Japan and the United States has dissipated, and earning power has recovered under normalized business conditions

©Rinnai Corporation

Fiscal 2025 (1Q): Net Sales by Product

	Fiscal 2024 1Q	Fiscal 2025 1Q	YOY
	Change
[Billions of yen]
Amount	% of total	Amount	% of total	Amount	(%)

Water heaters	53.72	59.8%	57.73	58.8%	+4.01	+7.5%
Kitchen
20.33	22.6%	22.38	22.8%	+2.05	+10.1%
appliances
Air	3.58	4.0%	3.81	3.9%	+0.23	+6.5%
conditioning
appliances

Commercial-	2.50	2.8%	2.72	2.8%	+0.21	+8.7%
use equipment
Others	9.70	10.8%	11.51	11.7%	+1.81	+18.7%

Total	89.85	100.0%	98.18	100.0%	+8.33	+9.3%

©Rinnai Corporation

Fiscal 2025 (1Q): Consolidated Sales/Income Results

[Billions of yen]	Net Sales	YOY	Operating	YOY Change	Operating	YOY
Change	Income	Margin	Change


Consolidated	98.18	+9.3%	8.71	+180.0%	8.9%	+5.4pt

[Billions of yen]	Net Sales	YOY	Operating	YOY Change	Operating	YOY
Change	Income	Margin	Change


Japan	44.16	+4.8%	4.93	+171.2%	11.2%	+6.9pt
United States	15.67	+24.8%	0.04	-	0.3%	+14.2pt
Australia	7.24	+7.0%	0.10	-50.6%	1.5%	-1.7pt
China	10.21	+2.2%	1.19	-16.3%	11.7%	-2.6pt
South Korea	8.64	+8.0%	0.31	+137.2%	3.7%	+2.0pt
Indonesia	4.31	+29.8%	0.93	+77.2%	21.7%	+5.8pt
Others	7.92	+12.3%	1.19	+20.2%	15.1%	+1.0pt
Adjustments	-	-	-0.01	-	-	-

©Rinnai Corporation

Fiscal 2025 (1Q): Consolidated Operating Income Analysis

[Billions of yen]

Effect of local

revenue

increase at

overseas

subsidiaries

Effect of domestic revenue increase

3.11+2.84

+1.55

+2.47

Increased

fixed

costs in

Japan

-0.83

Increased

fixed costs overseas

-2.07

-1.50

Cost-

cutting

efforts, etc.

Effect of raw materials prices

+0.20 +2.99

+0.21

*Overseas local

procurement

YOY change

+5.60 billion

8.71

FY2024

Forex effect +0.26

FY2025

- Improved production efficiency in line with normalized business activities. Expand effects of cost cutting efforts, etc.

©Rinnai Corporation

Japan Fiscal 2025 (1Q) Results

*From April to June 2024

Segment companies

Rinnai (non-consolidated basis), domestic consolidated subsidiaries (manufacture and sales of products)

Net sales by product, Fiscal 2025 (1Q) results

Commercial-use equipment 1.3%

Gas clothes	Others 16%
dryers
		Water
Air-conditioningKitchen	heaters
52.2%
appliances	appliances	Hybrid water
1.0%
Built-in hobs	29.2%	heater

(stovetops)

Segment results

[Billions of Yen]	Fiscal	Fiscal	YOY
2024	2025	change

Non-consolidatedresults of major company Rinnai (non-consolidated basis)
- The supply-demand imbalance caused by COVID-19 outbreak has settled down, enabling the fiscal year to begin under normal business conditions
- Significant growth in sales of highly distinctive hybrid water heaters and gas clothes dryers - Increase in operating income due to price revisions and higher production capacity
utilization despite soaring raw material prices

Rinnai (non-consolidated basis), Fiscal 2024 (1Q) Results

■：Net sales	■：Operating income
-●-：Operating income to net sales ratio	（Billions of yen）
56.90		52.04
	46.17

5.47	1.60		4.35

Fiscal 2023	Fiscal 2024	Fiscal 2025

Net Sales	42.14	44.16	+4.8%
Operating Income
1.81	4.93	+171.2%
Operating income
4.3%	11.2%	+6.9pt
to net sales ratio

[Billions of Yen]		Fiscal	Fiscal	YOY
2024	2025	change


Net Sales	46.17	52.04	＋12.7%
Operating Income
1.60	4.35	＋171.2%
Operating income to
3.5%	8.4%	＋4.9pt
net sales ratio

[Sales Volume in Japan]	YOY change

Water heater with heating		-17.5%
systems


Hybrid water heaters		+57.0%

Built-in hobs (stovetops)		-10.9%

Gas clothes dryers		+36.6%

©Rinnai Corporation	8

Japan Topics：ECO ONE hybrid water heater with heating systems

■ Subsidy for high-efficiency water heaters (including ECO ONE)

(Water Heater Energy Saving 2024 Project)

Total budget: ¥58 billion (Of which ¥4 billion used to subsidize removal of electric water heaters and electric space heaters)

Percentage of hybrid water heaters (new construction vs replacement)
■ ：New construction ■ ：Replacement

ECO ONE: ¥150,000/unit for all models

Fiscal 2024 (1Q) results	Fiscal 2025 (1Q) results

	Replacement

	Detached houses

	General housing	Narrow houses

	April 2024	Launched
model change
Jun. 2022

New
houses
	160-liter model	X5 (70-liter model)

Launched

Sep. 2023

Existing houses

X5 Plug-in model

Housing complexes

Launched

Sept. 2023

X5 PS (for balcony installation)

28％		+250% YOY

		44％
	72％	56％

・Driven by X5 plug-in model, which requires no dedicated power supply wiring for its heat pump

Subsidy applications as percentage of total budget

46％

36％

26％

7/31

Existing external power point can be used, when replacing gas water heaters

*Each wiring breaker must be 20A

14％

6/30

5/31

4/30

*From the website of the Ministry of Economy, Trade and Industry's Water Heater Energy Saving 2024 Project

https://kyutou-shoene2024.meti.go.jp

Japan Topics： New kitchen appliance DELICIA

Launch: August 20, 2024

100V type: ¥434,830~ (including tax)

3V type: ¥379,500~ (including tax) * Recommended retail prices

New cookware (The Cocotte Round with toast/pizza plate)

Large-capacitystovetop waterless cooking pot (The Cocotte Round) now available as option

Kitchenware	The Cocotte	The Cocotte Round


Capacity	2.4L	3.1L

Weight	1.7kg	1.7kg

Size	height 110 x width 228 x	height 139 x width 287 x
	depth 272mm	depth 232mm

Corresponding area	On the stove, grill	On the stove

+R RECIPE (smartphone app) allows continuous auto cooking and finishing touches

・Some recipes allow for continuous auto cooking ・Finishing touches can be adjusted according to preference

Basic hamburger steak Non-fried pork cutlet

Luxurious butter toast

Melty baked sweet potato

■ All-black lineup

・Launch of all-black model that comes entirely in highly popular black color

	Steamed cooking			Ovenstyle cooking
		Boiled cooking
Anhydrous cooking
Tomato curry	Shrimp Shumai		Boiled chicken	Apple cake


			and pumpkin

・Toast/pizza plate included with all models

・Surface of the toast comes into direct contact with the plate, preventing moisture from escaping and leaving a fluffy texture

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