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. The Company assumes no responsibility for this translation or for direct, indirect or any other forms of damages arising from the translation.
Summary of Consolidated Financial Results for the First Nine Months of FY2024 (JGAAP)
(January 1, 2024 -September 30, 2024) | October 29, 2024 | |||||||||
Company Name: | Shimano Inc. | Stock Exchange: Tokyo, Prime Market | ||||||||
Code Number: | 7309 | URL: https://www.shimano.com | ||||||||
Representative: | Taizo Shimano, President | |||||||||
Contact: | Takuma Kanai, Executive Officer, Supervising of ESG Development | Telephone: +81-72-223-3254 | ||||||||
Dept., Corporate Governance Administration Dept. and | ||||||||||
Accounting Dept. | ||||||||||
Scheduled payment date for dividends: | － | |||||||||
Supplemental information: | Yes | |||||||||
Financial results briefing: | No | |||||||||
(Amounts are rounded down to the nearest million yen.) | ||||||||||
1. Consolidated financial results for the first nine months of FY2024 (January 1, 2024 - September 30, 2024) | ||||||||||
(1) Consolidated income information | (The percentages represent the rates of increase (decrease) compared to the corresponding prior period.) | |||||||||
Net sales | Operating income | Ordinary income | Net income attributable | |||||||
to owners of parent | ||||||||||
Million yen | % | Million yen | % | Million yen | % | Million yen | % | |||
First nine months of FY2024 | 334,879 | (10.8) | 50,651 | (29.7) | 58,262 | (39.4) | 41,343 | (31.3) | ||
First nine months of FY2023 | 375,264 | (19.8) | 72,086 | (43.0) | 96,221 | (35.8) | 60,169 | (47.0) | ||
(Note) Comprehensive income First nine months of FY2024: 65,204 million yen (-44.3%) | First nine months of FY2023: 117,059 million yen (-36.4%) | |||||||||
Basic earnings | Diluted earnings | |||||||||
per share | per share | |||||||||
Yen | Yen | |||||||||
First nine months of FY2024 | 461.71 | － | ||||||||
First nine months of FY2023 | 665.35 | － | ||||||||
(2) Consolidated balance sheet information | ||||||||||
Total assets | Net assets | Shareholders' equity | ||||||||
ratio | ||||||||||
Million yen | Million yen | % | ||||||||
First nine months of FY2024 | 896,089 | 824,793 | 91.9 | |||||||
FY2023 | 871,731 | 802,396 | 91.9 | |||||||
(Reference) Shareholders' equity First nine months of FY2024: 823,711 million yen FY2023: 801,166 million yen
2. Dividend information
Dividend per share | |||||
1st Quarter | 2nd Quarter | 3rd Quarter | Year-end | Total | |
Yen | Yen | Yen | Yen | Yen | |
FY2023 | － | 142.50 | － | 142.50 | 285.00 |
FY2024 | － | 154.50 | － | ||
FY2024 (Forecast) | 154.50 | 309.00 | |||
(Note) Change in forecasted dividend during the period: None |
3. Forecasted consolidated business performance for FY2024 (January 1, 2024 - December 31, 2024)
(The percentages represent the rates of increase (decrease) compared to the corresponding prior period.)
Net income | Basic earnings | ||||||||
Net sales | Operating income | Ordinary income | attributable to | ||||||
per share | |||||||||
owners of parent | |||||||||
Million yen | % | Million yen | % | Million yen | % | Million yen | % | Yen | |
FY2024 | 450,000 | (5.1) | 66,000 | (21.1) | 77,500 | (25.0) | 56,000 | (8.4) | 626.92 |
(Note) Change in forecasted consolidated business performance during the period: Yes
*Notes
- Significant changes in the scope of consolidation during the period: None
- Application of accounting treatment specific to preparation of quarterly consolidated financial statements: None
- Changes in accounting policies, changes in accounting estimates, and retrospective restatement
① Changes in accounting policies in accordance with revision of accounting standards: | None |
② Changes in accounting policies other than ① above: | None |
③ Changes in accounting estimates: | None |
④ Retrospective restatement: | None |
(4) Number of shares of common stock issued | |||||
① | Number of shares of common stock issued at period-end | First nine months of | 89,380,000 | FY2023 | 90,022,000 |
(including treasury stock): | FY2024 | shares | shares | ||
② | Number of shares of treasury stock at period-end: | First nine months of | 53,981 | FY2023 | 56,027 |
FY2024 | shares | shares | |||
③ | Average number of shares during the period | First nine months of | 89,543,816 | First nine months of | 90,433,672 |
(cumulative from the beginning of the fiscal year): | FY2024 | shares | FY2023 | shares |
Review of the Japanese-language originals of the attached quarterly consolidated financial statements by certified public accountants or an audit firm: None
Explanation regarding the appropriate use of forecasts of business performance and other special items
The forecasts of consolidated business performance and other forward-looking statements contained in this document are based on information currently available to the Company and certain assumptions that management believes reasonable and actual business performance may differ materially from those described in such statements due to various factors. For details of assumptions for the forecasts and other related items, please refer to page 3 of the attached document. Shimano Inc. accepts no liability whatsoever for any direct or consequential loss arising from any use of this document.
Shimano Inc. (7309) Summary of Consolidated Financial Results for the First Nine Months of FY2024 | ||
○Table of contents of the attached document | ||
1. Qualitative Information on Consolidated Financial Performance for the Period under Review | ............................... 2 | |
(1) | Results of Operations | 2 |
(2) | Financial Position | 3 |
(3) | Forecast for the Fiscal Year Ending December 31, 2024 | 3 |
2. Consolidated Financial Statements and Primary Notes | 4 | |
(1) | Consolidated Balance Sheets | 4 |
(2) | Consolidated Statements of Income and Comprehensive Income | 6 |
(3) | Notes relating to Consolidated Financial Statements | 8 |
(Note concerning Assumption of Going Concern) | 8 | |
(Note on Significant Change in the Amount of Shareholders' Equity) | 8 | |
(Note on Segment Information) | 9 | |
(Note on Statements of Cash Flows) | 10 |
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Shimano Inc. (7309) Summary of Consolidated Financial Results for the First Nine Months of FY2024
1. Qualitative Information on Consolidated Financial Performance for the Period under Review
- Results of Operations
During the first nine months of fiscal year 2024, geopolitical risks caused by the prolonged invasion of Ukraine and rising tensions in the Middle East, as well as stagnant Chinese economy, among other factors, exerted downward pressure on the economic climate. However, mainly on the back of subsided high inflation, the global economy emerged from the stagnant period and started to show signs of a pickup.
In Europe, the impact of cumulative tightening of monetary policies had lessened. As a result, personal consumption continued to pick up and the economy started to show some signs of recovery.
In the U.S., although firm personal consumption supported the economy, the pace of economic expansion was moderate due to a slowdown in the labor market.
In China, the economy was lackluster due to the prolonged recession in the real estate sector and sluggish personal consumption.
In Japan, the economy continued to recover moderately, backed by a pickup in personal consumption in tandem with the improved income environment and rising demand from inbound tourists.
In this environment, demand for bicycles and fishing tackle continued to be weak, and for the first nine months of fiscal year 2024, net sales decreased 10.8% from the same period of the previous year to 334,879 million yen. Operating income decreased 29.7% to 50,651 million yen, ordinary income decreased 39.4% to 58,262 million yen, and net income attributable to owners of parent decreased 31.3% to 41,343 million yen.
Reportable Segment Overview
- Bicycle Components
While the strong interest in bicycles continued as a long-term trend, retail inventories at retailers started to show signs of progress. However, market inventories of completed bicycles remained high.
Overseas, in the European market, retail sales of completed bicycles remained weak due to unfavorable weather conditions in early spring, and market inventories of completed bicycles remained at a somewhat high level.
In the North American market, retail sales softened, although interest in bicycles was firm and adjustments of market inventories of completed bicycles were progressing.
In the Asian, Oceanian and Central and South American markets, personal consumption continued to be sluggish, retail sales of completed bicycles were weak, and market inventories were at a high level. In the Chinese market, the popularity of cycling in general continued, retail sales of completed bicycles were favorable, especially for road bikes, and market inventories remained at an appropriate level.
In the Japanese market, retail sales were sluggish as affected by the soaring price of completed bicycles, and adjustments of market inventories continued.
Under these market conditions, the Shimano Group received a favorable reception for its products, including SHIMANO 105, a component for road bikes, and a gravel-specific component SHIMANO GRX.
As a result, net sales from this segment decreased 12.3% from the same period of the previous year to 253,861 million yen, and operating income decreased 26.1% to 41,342 million yen.
- Fishing Tackle
Demand for fishing tackle that had been overly strong globally cooled down and sales remained weak. Meanwhile, adjustments of market inventories started to show signs of progress.
In the Japanese market, buying motives among fishing enthusiasts were firm. On the other hand, adjustments of market inventories continued, and sales were lackluster as affected by extreme heat and adverse weather conditions.
Overseas, in the North American market, sales were strong backed by stable demand, and market inventories progressed toward an appropriate level.
In the European market, sales continued to be weak, but there was progress in adjustments of market inventories.
In the Asian market, sales were lackluster as affected by a slowdown in personal consumption and adverse weather conditions, and market inventories remained high.
In the Australian market, backed by favorable weather and fishing conditions, sales were favorable and market inventories remained at an appropriate level.
Under these market conditions, the new baitcasting reels OCEA CONQUEST CT and the new spinning reels BB-X TECHNIUM FIRE BLOOD were well-received in the market. In addition, order-taking continued to be brisk for the spinning reels TWINPOWER.
As a result, net sales from this segment decreased 5.6% from the same period of the previous year to
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Shimano Inc. (7309) Summary of Consolidated Financial Results for the First Nine Months of FY2024
80,690 million yen, and operating income decreased 42.4% to 9,323 million yen.
- Others
Net sales from this segment decreased 5.9% from the same period of the previous year to 327 million yen and operating loss of 14 million yen was recorded, following an operating loss of 31 million yen for the same period of the previous year.
-
Financial Position
Assets, Liabilities and Net Assets
Total assets as of the end of the first nine months of fiscal year 2024 amounted to 896,089 million yen, an increase of 24,357 million yen compared with the figure as of the previous fiscal year-end. The principal factors included an increase of 15,904 million yen in construction in progress, an increase of 4,205 million yen in work in process, an increase of 3,797 million yen in notes and accounts receivable-trade, an increase of 3,247 million yen in buildings and structures, a decrease of 3,536 million yen in merchandise and finished goods, and a decrease of 1,993 million yen in machinery and vehicles.
Total liabilities amounted to 71,295 million yen, an increase of 1,960 million yen compared with the figure as of the previous fiscal year-end. The principal factors included an increase of 4,322 million yen in accounts payable-trade, and a decrease of 2,093 million yen in provision for product warranties.
Net assets amounted to 824,793 million yen, an increase of 22,397 million yen compared with the figure as of the previous fiscal year-end. The principal factors included an increase of 22,822 million yen in foreign currency translation adjustments, and a decrease of 1,086 million yen in retained earnings. - Forecast for the Fiscal Year Ending December 31, 2024
The consolidated business performance forecasts have been revised as follows, in light of factors such as non-operating expenses that were recorded due to the appreciation of Asian currencies caused by the weaker U.S. dollar during the first nine months of fiscal year 2024.
Revisions to consolidated business performance forecast figures for FY2024 (January 1, 2024 - December 31, 2024)
Net income | Basic earnings | |||||
Net sales | Operating income | Ordinary income | attributable to | |||
per share | ||||||
owners of parent | ||||||
Million yen | Million yen | Million yen | Million yen | Yen | ||
Previous forecast (A) | 450,000 | 66,000 | 100,000 | 77,000 | 862.01 | |
Revised forecast (B) | 450,000 | 66,000 | 77,500 | 56,000 | 626.92 | |
Difference (B-A) | － | － | (22,500) | (21,000) | ||
Change (%) | － | － | (22.5) | (27.3) | ||
Full year results for FY2023 | 474,362 | 83,653 | 103,369 | 61,142 | 676.77 | |
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Shimano Inc. (7309) Summary of Consolidated Financial Results for the First Nine Months of FY2024
2. Consolidated Financial Statements and Primary Notes
(1) Consolidated Balance Sheets
(Millions of yen) | ||||||||
FY2023 | First nine months of FY2024 | |||||||
As of Dec. 31, 2023 | As of Sep. 30, 2024 | |||||||
Assets | ||||||||
Current | assets | |||||||
Cash | and time | deposits | 493,933 | 495,762 | ||||
Notes and accounts receivable-trade | 31,602 | 35,400 | ||||||
Merchandise | and | finished | goods | 74,293 | 70,756 | |||
Work in process | 31,771 | 35,976 | ||||||
Raw | materials | and supplies | 6,424 | 7,159 | ||||
Others | 15,071 | 14,300 | ||||||
Allowance for | doubtful accounts | (342) | (445) | |||||
Total | current assets | 652,753 | 658,909 | |||||
Fixed assets | ||||||||
Property, plant | and equipment | |||||||
Buildings | and | structures | (net) | 76,763 | 80,010 | |||
Machinery | and | vehicles | (net) | 33,005 | 31,012 | |||
Land | 14,317 | 14,575 | ||||||
Leased assets (net) | 5,433 | 5,405 | ||||||
Construction | in progress | 22,994 | 38,899 | |||||
Others (net) | 5,468 | 5,042 | ||||||
Total property, plant and equipment | 157,982 | 174,945 | ||||||
Intangible assets | ||||||||
Goodwill | 1,898 | 1,564 | ||||||
Software | 13,225 | 13,349 | ||||||
Others | 6,864 | 9,277 | ||||||
Total intangible assets | 21,989 | 24,191 | ||||||
Investments | and | other assets | ||||||
Investment securities | 23,781 | 24,026 | ||||||
Deferred income taxes | 9,693 | 8,449 | ||||||
Net defined | benefit asset | 2,804 | 2,668 | |||||
Others | 3,174 | 3,349 | ||||||
Allowance | for | doubtful accounts | (447) | (450) | ||||
Total investments and other assets | 39,006 | 38,042 | ||||||
Total | fixed assets | 218,977 | 237,179 | |||||
Total assets | 871,731 | 896,089 | ||||||
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Shimano Inc. (7309) Summary of Consolidated Financial Results for the First Nine Months of FY2024
(Millions of yen) | |||||
FY2023 | First nine months of FY2024 | ||||
As of Dec. 31, 2023 | As of Sep. 30, 2024 | ||||
Liabilities | |||||
Current liabilities | |||||
Accounts | payable-trade | 11,025 | 15,348 | ||
Income taxes | payable | 5,737 | 5,450 | ||
Accrued employee bonuses | 3,041 | 4,344 | |||
Accrued | officer bonuses | 141 | 108 | ||
Provision | for | product warranties | 16,017 | 13,924 | |
Others | 25,870 | 25,122 | |||
Total current | liabilities | 61,834 | 64,298 | ||
Long-term liabilities | |||||
Deferred | income taxes | 3,179 | 2,663 | ||
Net defined benefit liability | 1,253 | 1,340 | |||
Others | 3,067 | 2,992 | |||
Total long-term liabilities | 7,500 | 6,997 | |||
Total liabilities | 69,334 | 71,295 | |||
Net assets | |||||
Shareholders' equity | |||||
Common stock | 35,613 | 35,613 | |||
Capital surplus | 5,640 | 5,640 | |||
Retained | earnings | 647,172 | 646,086 | ||
Treasury | stock | (1,264) | (1,415) | ||
Total shareholders' equity | 687,162 | 685,924 | |||
Accumulated other comprehensive income | |||||
Unrealized gain (loss) on other securities | 4,902 | 5,863 | |||
Foreign currency translation adjustments | 109,101 | 131,923 | |||
Total accumulated other comprehensive income | 114,003 | 137,786 | |||
Non-controlling | interests | 1,230 | 1,082 | ||
Total net assets | 802,396 | 824,793 | |||
Total liabilities | and | net assets | 871,731 | 896,089 | |
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Shimano Inc. (7309) Summary of Consolidated Financial Results for the First Nine Months of FY2024
- Consolidated Statements of Income and Comprehensive Income Consolidated Statements of Income
(Millions of yen) | ||||||
First nine months of FY2023 | First nine months of FY2024 | |||||
Jan. 1, 2023 to | Jan. 1, 2024 to | |||||
Sep. 30, 2023 | Sep. 30, 2024 | |||||
Net | sales | 375,264 | 334,879 | |||
Cost | of | sales | 228,687 | 204,402 | ||
Gross profit | 146,576 | 130,476 | ||||
Selling, general and administrative expenses | 74,489 | 79,825 | ||||
Operating income | 72,086 | 50,651 | ||||
Non-operating income | ||||||
Interest | income | 13,773 | 17,653 | |||
Dividend income | 615 | 481 | ||||
Foreign | exchange gains | 10,227 | － | |||
Others | 816 | 1,442 | ||||
Total non-operating income | 25,432 | 19,577 | ||||
Non-operating expenses | ||||||
Interest | expenses | 152 | 80 | |||
Contribution | 943 | 875 | ||||
Foreign | exchange losses | － | 9,037 | |||
Others | 202 | 1,973 | ||||
Total non-operating expenses | 1,298 | 11,966 | ||||
Ordinary income | 96,221 | 58,262 | ||||
Extraordinary losses | ||||||
Loss | on | free inspection | 17,074 | － | ||
Loss | on | factory reconstruction | 833 | 66 | ||
Total | extraordinary losses | 17,908 | 66 | |||
Income before income taxes | 78,312 | 58,196 | ||||
Income | taxes-current | 22,111 | 16,446 | |||
Income | taxes-deferred | (4,166) | 211 | |||
Total income taxes | 17,945 | 16,658 | ||||
Net income | 60,367 | 41,538 | ||||
Net income attributable to non-controlling interests | 197 | 195 | ||||
Net | income attributable to owners of parent | 60,169 | 41,343 | |||
6
Shimano Inc. (7309) Summary of Consolidated Financial Results for the First Nine Months of FY2024
Consolidated Statements of Comprehensive Income
(Millions of yen) | ||
First nine months of | First nine months of | |
FY2023 | FY2024 | |
Jan. 1, 2023 to | Jan. 1, 2024 to | |
Sep. 30, 2023 | Sep. 30, 2024 | |
Net income | 60,367 | 41,538 |
Other comprehensive income | ||
Unrealized gain (loss) on other securities | 1,758 | 960 |
Foreign currency translation adjustments | 54,934 | 22,705 |
Total other comprehensive income | 56,692 | 23,666 |
Comprehensive income | 117,059 | 65,204 |
(Breakdown) | ||
Comprehensive income attributable to owners of parent | 116,692 | 65,126 |
Comprehensive income attributable to non-controlling interests | 367 | 78 |
7
Shimano Inc. (7309) Summary of Consolidated Financial Results for the First Nine Months of FY2024
-
Notes relating to Consolidated Financial Statements (Note concerning Assumption of Going Concern)
Not applicable.
(Note on Significant Change in the Amount of Shareholders' Equity) (Acquisition of treasury stock)
The Company acquired 200,000 shares of common stock on February 27, 2024 through Off-auction Own Share Repurchase Trading (ToSTNeT-3) on the Tokyo Stock Exchange, based on the resolution of the Board of Directors meeting held on April 25, 2023, and acquired 442,000 shares of common stock on May 17, 2024 through Off-auction Own Share Repurchase Trading (ToSTNeT-3) on the Tokyo Stock Exchange, based on the resolution of the Board of Directors meeting held on April 23, 2024. As a result, treasury stock increased by 16,015 million yen during the first nine months of fiscal year 2024, including the increase due to acquisition of fractional shares.
(Cancellation of treasury stock)
The Company canceled 200,000 shares of treasury stock on March 27, 2024 based on the resolution of the Board of Directors meeting held on March 19, 2024, and canceled 442,000 shares of treasury stock on August 6, 2024 based on the resolution of the Board of Directors meeting held on July 30, 2024. As a result, capital surplus, retained earnings and treasury stock decreased by 6 million yen, 15,808 million yen and 15,814 million yen, respectively, during the first nine months of fiscal year 2024.
8