TACHI S : Consolidated Financial Highlights for the First Quarter of FY2022

Published August 10, 2022 at 7:35 a.m. UTC

Source: MarketScreener

*Note: The original disclosure in Japanese was released on August 10, 2022

Consolidated Financial Highlights for the First Quarter of FY2022 [Japanese GAAP]

						August 10, 2022
Company name:	TACHI-S CO., LTD.		Stock exchange listings:	Tokyo Stock Exchange
Code number:	7239	URL	https://www.tachi-s.co.jp/
Representative:	(Title)	Representative Director,	(Name)	Yuichiro Yamamoto
		President, CEO & COO
Contact person:	(Title)	Representative Director,	(Name)	Atsushi Komatsu	(TEL) 042-546-8117
		Executive Managing Officer

Scheduled date of quarterly securities report submission:	August 10, 2022
Scheduled date of start of dividend payment:	―
The additional materials of the quarterly financial results	:	No
Holding of the quarterly financial results meeting	:	No

(Amounts less than one million yen are rounded down)

1. Consolidated Financial Results for the First Quarter of FY2022 (April 1, 2022 through June 30, 2022)

(1) Consolidated Operating Results

(% indicates the changes from the same period in the previous year)

Net income

Net sales

Operating income

Ordinary income

attributable to owners

of parent

Million yen

1Q of FY2022

49,778

1.4

-2,342

―

-2,422

―

-2,953

―

1Q of FY2021

49,089

29.2

-2,658

―

-2,636

―

-2,825

―

(Note) Comprehensive income 1Q of FY2022 1,739 Million yen ( ―%)

1Q of FY2021 53

Million yen ( ―%)

Net income per share

Diluted net income per share

yen

1Q of FY2022

-86.31

―

1Q of FY2021

-82.57

―

(2) Consolidated Financial Positions

Total assets

Shareholder's equity

Shareholder's equity ratio

Million yen

1Q of FY2022

157,484

79,820

46.2

FY2021

158,997

79,181

45.8

(Reference) Equity capital

1Q of FY2022

72,754 Million yen

FY2021 72,862

Million yen

2. Dividends

Annual dividends per share

End of 1st

End of 2nd

End of 3rd

End of fiscal year

Total

quarter

yen

FY2021

―

31.80

―

31.80

63.60

FY2022

―

FY2022 (Forecast)

36.80

―

36.80

73.60

(Note) Changes in forecast of dividend from the latest announcement: No

3. Consolidated Forecast for FY2022 (April 1, 2022 through March 31, 2023)

(% indicates the changes from the previous year)

							Net income	Net income per
	Net sales	Operating income	Ordinary income	attributable to
		share
							owners of parent

	Million yen	%	Million yen	%	Million yen	%	Million yen	%	yen
Full year	248,000	20.1	1,200	―	2,000	―	4,500	―	131.49

(Note) Changes in forecast of consolidated results from the latest announcement: No

* Notes

(1)	Major subsidiary changes during the first three months of the fiscal year under review	: No
	(changes affecting the scope of consolidation)
(2)	Adoption of special accounting treatment pertaining to the	:	No
	preparation of quarterly consolidated financial statements
(3)	Changes in accounting policies, changes in accounting estimation, and restatement.
	(i) Changes in accounting policies due to revisions to accounting	:	Yes
	standards and other regulations
	(ii) Changes in accounting policies except (i)	:	No
	(iii) Changes in accounting estimates	:	No
	(iv) Restatement	:	No
(4)	Number of outstanding shares (common stock)

Number of shares at the end of the period (including treasury shares)
Number of treasury shares at the end of the period
Average number of shares during the period (cumulative from the beginning of the fiscal year)

1Q of FY2022	35,242,846	FY2021	35,242,846
shares	shares


1Q of FY2022	1,020,382	FY2021	1,020,382
shares	shares


1Q of FY2022	34,222,464	1Q of FY2021	34,221,814
shares	shares

This financial highlights is not subject to audit procedures.
Note for appropriate use of this business forecast and other notices

The above business forecast was based on the information that the company obtained at this time and certain premises that the company judged appropriate. Actual results may differ from this forecast as the result of a variety of factors.

For cautionary notes regarding the assumptions that form the basis of the business forecast and the use of the business forecast, please refer to page 2 of the attachment "1. Qualitative Information for Quarterly Financial Results for the Period under Review (3) Explanation on consolidated financial results forecast and other forward-looking information."

Table of Contents of Attachments

1. Qualitative Information for Quarterly Financial Results for the Period under Review .........................	2
(1)	Explanation on operating results ...............................................................................................	2
(2)	Explanation on financial position ...............................................................................................	2

Explanation on consolidated financial results forecast and other forward-looking information .. 2

2. Quarterly Consolidated Financial Results Forecast and Primary Notes .............................................	3
(1) Quarterly consolidated statement of financial position ...............................................................	3

Quarterly consolidated statement of income and quarterly consolidated statement of

comprehensive income ..............................................................................................................	5
(3) Notes to Quarterly consolidated financial statements ................................................................	7
(Notes regarding going concern assumptions) ..........................................................................	7
(Notes when there was a substantial change in the amount of shareholders' equity) ...............	7
(Changes in accounting policies) ...............................................................................................	7
(Segment information, etc.) .......................................................................................................	7

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1. Qualitative Information for Quarterly Financial Results for the Period under Review

(1) Explanation on operating results

In the first three months of the fiscal year under review, the Japanese economy saw society as a whole resume economic activities from the COVID-19 pandemic. However, with no signs of the end of the crisis in Ukraine, which has caused a surge in prices of natural resources and disruptions in supply networks, in sight, the outlook remains uncertain. Furthermore, in looking ahead to the upcoming operating environment, there is a concern that an acceleration of the ongoing inflation may affect corporate sentiment and consumer confidence.

In the auto industry in which the Group operates, the number of vehicles sold is on a recovery path in general. However, the automotive manufacturers, which are customers of the Group, have fallen into a situation of being unable to keep initially planned production quantities mainly due to prolonged semiconductor shortages, loss of demand in China resulting from lockdowns, and global disruptions in supply chains. Although demand is so robust that the delivery of newly launched vehicles has lengthened from a few months to over a year due to constraints on supply, major economies have accelerated the pace of interest rate hikes in order to hold down inflation. We have to closely watch their impact on the automotive market down the road.

Amid the operating environment rapidly changing as mentioned above, we are responding to the changing situation with a sense of urgency while checking on the status of business frequently on a global basis. Simultaneously, we have steadily advanced activities to achieve the medium-term management plan, with which we aim to strengthen our medium-term earning power and competitiveness.

In this operating environment, the performance during the first three months of the fiscal year under review is: Net sales increased by 1.4% year on year to 49,778 million yen, which led to an operating loss of 2,342 million yen (compared to an operating loss of 2,658 million yen in the same period of the previous fiscal yea r), an ordinary loss of 2,422 million yen (compared to an ordinary loss of 2,636 million yen in the same period of the previous fiscal year) and a net loss attributable to owners of parent of 2,953 million yen (compared to a net loss attributable to owners of parent of 2,825 million yen in the same period of the previous fiscal year).

Earnings in the business segments are as follows.

(i) Japan

Net sales totaled 17,751 million yen (down 0.7% from the same period of the previous fiscal year), and operating loss was 1,400 million yen (compared to an operating loss of 660 million yen in the same period of the previous fiscal year).

(ii) North America

Net sales totaled 9,660 million yen (down 5.4% from the same period of the previous fiscal year), and operating loss was 329 million yen (compared to an operating loss of 760 million yen in the same period of the previous fiscal year).

(iii) Latin America

Net sales totaled 13,591 million yen (up 9.4% from the same period of the previous fiscal year), and operating loss was 1,140 million yen (compared to an operating loss of 1,254 million yen in the same period of the previous fiscal year).

(iv) Europe

Net sales totaled 77 million yen (down 75.0% from the same period of the previous fiscal year), and operating income was 41 million yen (compared to an operating loss of 95 million yen in the same period of the previous fiscal year).

(v) China

Net sales totaled 8,256 million yen (up 6.9% from the same period of the previous fiscal year), and operating income was 621 million yen (up 175.0% from the same period of the previous year).

(vi) Southeast Asia

Net sales totaled 439 million yen (down 18.4% from the same period of the previous fiscal year), and operating loss was 117 million yen (compared to an operating loss of 60 million yen in the same period of the previous fiscal year).

(2) Explanation on financial position

Total assets at the end of the first quarter of the fiscal year under review decreased by 1,513 million yen from the end of the previous fiscal year to 157,484 million yen. This is mainly due to a decrease of 5,392 million yen in notes and accounts receivable - trade despite an increase of 1,574 million yen in raw materials and supplies and a rise of 1,516 million yen in investments and other assets.

Total liabilities decreased by 2,152 million yen from the end of the previous fiscal year to 77,664 million yen. This is primarily due to a decrease of 2,495 million yen in notes and accounts payable - trade.

Total net assets increased by 638 million yen from the end of the previous fiscal year to 79,820 million yen. This is mainly caused by an increase of 4,085 million yen in foreign currency translation adjustment and an increase of 747 million yen in non-controlling interests despite a decrease of 4,054 million yen in retained earnings.

(3) Explanation on consolidated financial results forecast and other forward-looking information

Consolidated financial results forecast for the fiscal year ending March 2023 remains unchanged from the one that was announced on July 28, 2022.

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2. Quarterly Consolidated Financial Results Forecast and Primary Notes

(1) Quarterly consolidated statement of financial position

			(Unit: Millions of yen)
		Previous consolidated	First quarter of the fiscal
		fiscal year	Year under review
		(March 31, 2022)	(June 30, 2022)
Assets
	Current assets

	Cash and deposits	32,046	32,095
	Notes and accounts receivable - trade	39,880	34,488

	Securities	361	-
	Merchandise and finished goods	2,666	2,728

	Work in process	749	902
	Raw materials and supplies	13,254	14,829

	Other	5,077	4,994
	Allowance for doubtful accounts	-42	-36

	Total current assets	93,994	90,003
	Non-current assets

	Property, plant and equipment
	Buildings and structures, net	11,257	11,545

	Machinery, equipment and vehicles, net	10,898	11,420
	Other, net	14,600	14,767

	Total property, plant and equipment	36,756	37,734
	Intangible assets	1,302	1,285

	Investments and other assets
	Investment securities	12,733	12,908

	Other	14,639	16,092
	Allowance for doubtful accounts	-427	-538

	Total investments and other assets	26,944	28,461
	Total non-current assets	65,003	67,480

	Total assets	158,997	157,484

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