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TS TECH : Consolidated Financial Summary for the First Quarter of FY2021 (under IFRS)
TS TECH : Consolidated Financial Summary for the First Quarter of FY2021 (under
About this update from Ts Tech Co., Ltd.
Consolidated Financial Summary First Quarter of FY2021 (April 1, 2020 - June 30, 2020) This document is an English translation of the Japanese language version of the consolidated financial summary that TS TECH Co., Ltd. has produced as a reference purpose. In the event of any discrepancy between this translated document and the Japanese original, the original shall prevail. Consolidated Financial Summary for the First Quarter of FY2021 (under IFRS) July 31, 2020 Company name: TS TECH CO., LTD. Stock exchange listing: Tokyo Stock Exchange Stock code: 7313 URL: https://www.tstech.co.jp Representative: Masanari Yasuda, President Contact: Yoshitoshi Goma, Manager, Tel. 048-462-1121 Public Relations Section, Administration Department Scheduled date for filing of quarterly securities report: August 6, 2020 Scheduled date of commencement of dividend payment: ─ Preparation of supplementary explanatory material: Yes Quarterly results briefing: Yes (for institutional investors and analysts) (Amounts of less than one million yen are rounded down to the nearest million yen) 1. Consolidated Financial Results for the First Quarter of FY2021 (April 1, 2020 - June 30, 2020) (1) Consolidated Financial Results (Cumulative Total) (%: year-on-year change) Operating Income before Income attributable to Total Revenue Net income comprehensive income tax owners of parent income Million yen % Million yen % Million yen % Million yen % Million yen % Million yen % First quarter of 54,739 -45.7 (1,792) ─ (1,221) ─ (1,956) ─ (3,757) ─ (480) ─ FY2021 First quarter of 100,722 -2.9 10,374 4.1 10,942 3.8 8,032 10.4 6,383 14.3 2,676 -57.5 FY2020 Basic earnings Diluted earnings per share per share Yen Yen First quarter of FY2021 (55.26) ─ First quarter of FY2020 93.87 ─ (2) Consolidated Financial Position Equity attributable to Ratio of equity Equity attributable to Total assets Total equity attributable to owners owners of parent owners of parent of parent to total assets per share Million yen Million yen Million yen % Yen First quarter of 338,527 267,012 249,511 73.7 3,669.42 FY2021 FY2020 341,820 274,552 254,745 74.5 3,746.40 2. Cash Dividends Annual cash dividends per share End of 1Q End of 2Q End of 3Q End of year Annual Yen Yen Yen Yen Yen FY2020 ─ 43.00 ─ 43.00 86.00 FY2021 ─ FY2021 (forecast) 43.00 ─ 47.00 90.00 (Note) 1 Revision from the most recent announcement of cash dividends forecasts: Yes 2 FY2021 end-of-year dividend (forecast) breakdown: Standard dividend: 43.00 yen Commemorative dividend: 4.00 yen 3. Consolidated Forecasts for FY2021 (April 1, 2020 - March 31, 2021) (%: year-on-year change) Revenue Operating Income before Net income Income attributable to Basic earnings income tax owners of parent per share Million yen % Million yen % Million yen % Million yen % Million yen % Yen First half of 152,000 -20.7 8,300 -53.3 9,300 -51.2 6,700 -52.8 3,100 -72.1 45.59 FY2021 FY2021 350,000 -2.7 26,000 -1.2 28,100 -2.3 20,000 -1.0 13,400 -11.0 197.07 (Note) Revision from the most recent announcement of consolidated financial forecasts: Yes *Notes (1) Changes in important subsidiaries during the quarter : None (Changes in significant subsidiaries affecting the scope of consolidation during this period) New subsidiaries ― companies Excluded subsidiaries ― companies (2) Changes in accounting policies and accounting estimates 1) Changes in accounting policies required by IFRS : None 2) Changes other than 1) : None 3) Changes in accounting estimates : None (3) Number of shares issued (common stock) Number of shares issued at the end of the term including treasury stock Number of treasury stock at the end of the term Average number of shares during the term (cumulative) 1Q of FY2021 68,000,000 FY2020 68,000,000 shares shares 1Q of FY2021 2,434 FY2020 2,434 shares shares 1Q of FY2021 67,997,566 1Q of FY2020 67,997,697 shares shares *This quarterly financial statement is exempt from quarterly reviews. *Explanation regarding the appropriate use of forecasts of financial results and other notes The consolidated forecasts presented on the previous page are projections made by management at TS TECH Co., Ltd. (hereinafter the "Company") on the basis of information available at the time of preparation. For that reason, they involve risks and uncertainties. Accordingly, we request that readers of this document avoid making investment decisions based exclusively on these forecasts. Please bear in mind the possibility that actual results may differ materially from these forecasts due to various important factors. Readers are asked to proceed to "(3) Qualitative Information Concerning Consolidated Forecasts" on page 4 for assumptions and other information that form the premise for the operating results forecast on the previous page. Materials to be used during the results briefing scheduled for August 4, 2020 are available via the following link on our website ( https://www.tstech.co.jp/english/) . (IR Information) https://www.tstech.co.jp/english/ir ○Table of Contents 1. Qualitative Information Concerning Quarterly Results .................................................................................... 2 (1) Qualitative Information Concerning Consolidated Financial Results.......................................................... 2 (2) Qualitative Information Concerning Consolidated Financial Positions ....................................................... 4 (3) Qualitative Information Concerning Consolidated Forecasts .................................................................... 4 2. Condensed Quarterly Consolidated Financial Statements and Significant Notes Thereto ................................ 5 (1) Condensed Quarterly Consolidated Statement of Financial Position ........................................................ 5 (2) Condensed Quarterly Consolidated Statements of Income and Comprehensive Income ............................ 7 (3) Condensed Quarterly Consolidated Statement of Changes in Equity .......................................................... 9 (4) Condensed Quarterly Consolidated Statement of Cash Flows................................................................... 11 (5) Notes Concerning Condensed Quarterly Consolidated Financial Statements ........................................... 13 - 1 - Difference -33,971 -6,438 First quarter of FY2020 50,634 4,043 First quarter of FY2021 16,662 (2,394) (Unit: Million yen) Change -67.1% ─ % First quarter of FY2020 19,971 1,794 Difference -6,345 -2,256 First quarter of FY2021 13,625 (462) (Unit: Million yen) Change -31.8% ─ % 1. Qualitative Information Concerning Quarterly Results Qualitative Information Concerning Consolidated Financial Results Revenue for the first quarter of FY2021 (April 1, 2020 - June 30, 2020) reached 54,739 million yen on a consolidated basis, a decrease of 45,982 million yen (45.7%) from the same period in FY2020, due to the impact of the COVID-19 pandemic. Production stoppages in the Americas and Asia and Europe segments and lower production volume in the Japan segment caused by the pandemic offset increased production in the China segment. All plants have since resumed operations. Looking at profits, operating loss stood at 1,792 million yen, a decrease of 12,167 million yen ( ─ %) year on year due to the impact of lower revenue, offsetting various cost containment measures. Loss attributable to owners of parent amounted to 3,757 million yen, a decrease of 10,140 million yen ( ─ %) year on year. *USD/JPY average 1Q exchange rate… FY2020: ¥109.9 FY2021: ¥107.6 *CNY/JPY average 1Q exchange rate… FY2020: ¥16.1 FY2021: ¥15.2 Operating performance by segment is as follows. (Japan) Revenue Operating income/loss Main factors for year-on-year change Revenue Revenue decreased primarily due lower production volume stemming from the COVID-19 pandemic and a decrease in royalty revenue from overseas subsidiaries. Operating income Operating income decreased primarily due to the impact of lower revenue, offsetting cost containment measures. *While production did not stop due to the COVID-19 pandemic, select locations made adjustments to production volume. (Americas) Revenue Operating income/loss Main factors for year-on-year change Revenue Revenue decreased primarily due to lower production volume stemming from the COVID-19 pandemic. Operating income Operating income decreased primarily due to the impact of lower revenue, offsetting cost containment measures. *Production stoppages caused by the COVID-19 pandemic began in late March, but production largely resumed by mid-May. - 2 - Revenue Operating income (China) (Unit: Million yen) First quarter of First quarter of Difference Change FY2020 FY2021 Revenue 22,914 25,418 2,503 10.9% Operating income 4,704 5,423 718 15.3% Main factors for year-on-year change Revenue Revenue increased on higher production volume and an improved model mix, offsetting the impact of foreign currency translation. Operating income Operating income increased primarily due to the impact of higher revenue and cost- cutting measures. *Production stoppages caused by the COVID-19 pandemic began in early February, but all locations resumed production by early March. There were no production stoppages during the period under review. (Asia and Europe) (Unit: Million yen) First quarter of First quarter of Difference Change FY2020 FY2021 Revenue 13,510 3,196 -10,314 -76.3% Operating income/loss 931 (2,921) -3,852 ─ % Main factors for year-on-year change Revenue decreased primarily due to lower production stemming from the COVID-19 pandemic. Despite cost containment efforts, operating income decreased primarily due to the impact of lower revenue and expenses related to the reorganization of automobile seat production in India. *Production stoppages caused by the COVID-19 pandemic began late March. Segment production resumed in early May, with the timing of the restart of operations varying by country. Sales by business segment are as follows: (Unit: Million yen) First quarter of FY2020 First quarter of FY2021 Difference Change Sales ratio Sales ratio Motorcycles 1,116 1.1% 915 1.7% -200 -17.9% Automobiles 98,299 97.6% 53,086 97.0% -45,213 -46.0% （ Seats ） 86,985 86.4% 47,684 87.1% -39,300 -45.2% （ Interior products ） 11,314 11.2% 5,401 9.9% -5,912 -52.3% Other businesses 1,306 1.3% 737 1.3% -568 -43.5% Total 100,722 100.0% 54,739 100.0% -45,982 -45.7% - 3 - Qualitative Information Concerning Consolidated Financial Positions (Assets) Assets at the end of the first quarter of FY2021 stood at 338,527 million yen, a decrease of 3,293 million yen from the end of FY2020. This change is mainly due to a decrease in cash and cash equivalents stemming from the allocation of net loss and payment of cash dividends. This offset an increase in trade and other receivables primarily on higher order volume from major customers in China. (Liabilities) Liabilities at the end of the first quarter of FY2021 amounted to 71,514 million yen, up 4,246 million yen from the end of FY2020. This change resulted mainly from an increase in other current liabilities stemming primarily from the addition of Honda Cars SAITAMAKITA as a subsidiary. (Equity) Equity at the end of the first quarter of FY2021 was 267,012 million yen, down 7,539 million yen from the end of FY2020. This change is primarily the result of a decrease in retained earnings stemming from the allocation of net loss. (3) Qualitative Information Concerning Consolidated Forecasts Consolidated forecasts for FY2021, which were previously pending as it was not possible to make reasonable calculations due to the impact of the COVID-19 pandemic, have been calculated based upon the information currently available. (Unit: Million yen) First half of FY2021 forecasts Year-on-year change Revenue 152,000 -20.7% Operating income 8,300 -53.3% Income before tax 9,300 -51.2% Net income 6,700 -52.8% Income attributable to owners of parent 3,100 -72.1% FY2021 forecasts Year-on-year change Revenue 350,000 -2.7% Operating income 26,000 -1.2% Income before tax 28,100 -2.3% Net income 20,000 -1.0% Income attributable to owners of parent 13,400 -11.0% - 4 - 2. Condensed Quarterly Consolidated Financial Statements and Significant Notes Thereto Condensed Quarterly Consolidated Statement of Financial Position (Unit: Million yen) FY2020 First quarter of FY2021 (As of March 31, 2020) (As of June 30, 2020) Assets Current assets Cash and cash equivalents 149,628 129,177 Trade and other receivables 41,500 53,964 Other financial assets 11,540 8,361 Inventories 28,233 30,637 Income tax receivables 2,281 2,999 Other current assets 4,667 4,624 Total assets 237,852 229,765 Non-current assets Property, plant and equipment 68,530 69,089 Intangible assets 9,366 10,685 Investments accounted for using the equity method 1,596 1,183 Other financial assets 20,307 23,403 Net defined benefit asset 1,879 1,868 Deferred tax assets 1,055 1,063 Other non-current assets 1,231 1,466 Total non-current assets 103,967 108,761 Total assets 341,820 338,527 - 5 - (Unit: Million yen) FY2020 First quarter of FY2021 (As of March 31, 2020) (As of June 30, 2020) Liabilities and equity Current liabilities Trade and other payables 51,084 50,296 Current borrowings 75 75 Other financial liabilities 1,109 1,122 Income taxes payable 575 1,796 Provisions 156 129 Other current liabilities 2,965 6,245 Total current liabilities 55,965 59,665 Non-current liabilities Other financial liabilities 2,841 3,532 Net defined benefit liability 1,372 1,473 Provisions 2,378 2,364 Deferred tax liabilities 3,598 3,441 Other non-current liabilities 1,111 1,036 Total non-current liabilities 11,302 11,849 Total liabilities 67,268 71,514 Equity Capital stock 4,700 4,700 Capital surplus 5,171 5,171 Treasury stock (5) (5) Retained earnings 249,367 242,686 Other components of equity (4,487) (3,039) Total equity attributable to owners of parent 254,745 249,511 Non-controlling interests 19,806 17,500 Total equity 274,552 267,012 Total liabilities and equity 341,820 338,527 - 6 - Condensed Quarterly Consolidated Statements of Income and Comprehensive Income Condensed Quarterly Consolidated Statement of Income Consolidated First Quarter (Unit: Million yen) First quarter of FY2020 First quarter of FY2021 (April 1, 2019 - (April 1, 2020 - June 30, 2019) June 30, 2020) Revenue 100,722 54,739 Cost of sales (81,755) (50,015) Gross profit 18,966 4,724 Selling, general and administrative expenses (8,601) (7,253) Other income 384 1,121 Other expenses (374) (385) Operating profit (loss) 10,374 (1,792) Finance income 606 521 Finance costs (147) (25) Share of profit (loss) of investments accounted 108 75 for using the equity method Income (loss) before tax 10,942 (1,221) Income tax expense (2,909) (735) Net income (loss) 8,032 (1,956) Income (loss) attributable to Owners of parent 6,383 (3,757) Non-controlling interests 1,649 1,801 Net income (loss) 8,032 (1,956) Earnings (losses) per share Basic earnings (losses) per share (yen) 93.87 (55.26) Diluted earnings per share (yen) ─ ─ - 7 - Condensed Quarterly Consolidated Statement of Comprehensive Income Consolidated Cumulative First Quarter (Unit: Million yen) First quarter of FY2020 First quarter of FY2021 (April 1, 2019 - (April 1, 2020 - June 30, 2019) June 30, 2020) Net income (loss) 8,032 (1,956) Other comprehensive income Components that will not be reclassified subsequently to net profit or loss Remeasurements of defined benefits plans Financial assets measured at fair value through other comprehensive income 2 (52) (793) 1,073 Total components that will not be reclassified subsequently to net profit or loss Components that may be reclassified subsequently to net profit or loss Differences on translation from foreign operations Share of other comprehensive income of associates accounted for using the equity method (790) 1,020 (4,594) 505 28 (50) Total components that may be reclassified subsequently to net profit or loss Other comprehensive income, net or tax Comprehensive income for the period Comprehensive income for the period attributable to: (4,566) 455 (5,356) 1,476 2,676 (480) Owners of parent 1,780 (2,310) Non-controlling interests 895 1,829 Comprehensive income for the period 2,676 (480) - 8 - Condensed Quarterly Consolidated Statement of Changes in Equity First quarter of FY2020 (April 1, 2019 - June 30, 2019) (Unit: Million yen) Equity attributable to owners of parent Capital stock Capital surplus Treasury stock Retained earnings Other components of equity Balance as at the end of 4,700 5,171 (5) 240,038 5,712 the previous fiscal year Cumulative effect of 44 accounting policy change Balance as at the end of the previous fiscal year reflective of 4,700 5,171 (5) 240,083 5,712 accounting policy change Comprehensive income Net income (loss) 6,383 Other comprehensive income (4,602) Total comprehensive income ─ ─ ─ 6,383 (4,602) Transactions with owners, etc. Dividends (2,855) Acquisition of treasury stock (0) Total transactions with ─ ─ (0) (2,855) ─ owners, etc. Balance as at 4,700 5,171 (5) 243,610 1,110 the end of the fiscal year Total equity Non-controlling attributable to Total equity interests owners of parent Balance as at the end of 255,617 21,807 277,424 the previous fiscal year Cumulative effect of 44 44 accounting policy change Balance as at the end of the previous fiscal year reflective of 255,662 21,807 277,469 accounting policy change Comprehensive income Net income (loss) 6,383 1,649 8,032 Other comprehensive income (4,602) (754) (5,356) Total comprehensive income 1,780 895 2,676 Transactions with owners, etc. Dividends (2,855) (5,435) (8,291) Acquisition of treasury stock (0) (0) Total transactions with (2,856) (5,435) (8,292) owners, etc. Balance as at 254,587 17,266 271,853 the end of the fiscal year - 9 - First quarter of FY2021 (April 1, 2020 - June 30, 2020) (Unit: Million yen) Equity attributable to owners of parent Capital stock Capital surplus Treasury stock Retained earnings Other components of equity Balance as at the end of 4,700 5,171 (5) 249,367 (4,487) the previous fiscal year Cumulative effect of accounting policy change Balance as at the end of the previous fiscal year reflective of 4,700 5,171 (5) 249,367 (4,487) accounting policy change Comprehensive income Net income (loss) (3,757) Other comprehensive income 1,447 Total comprehensive income ─ ─ ─ (3,757) 1,447 Transactions with owners, etc. Dividends (2,923) Acquisition of treasury stock Total transactions with ─ ─ ─ (2,923) ─ owners, etc. Balance as at 4,700 5,171 (5) 242,686 (3,039) the end of the fiscal year Total equity Non-controlling attributable to Total equity interests owners of parent Balance as at the end of 254,745 19,806 274,552 the previous fiscal year Cumulative effect of accounting policy change Balance as at the end of the previous fiscal year reflective of 254,745 19,806 274,552 accounting policy change Comprehensive income Net income (loss) (3,757) 1,801 (1,956) Other comprehensive income 1,447 28 1,476 Total comprehensive income (2,310) 1,829 (480) Transactions with owners, etc. Dividends (2,923) (4,135) (7,059) Acquisition of treasury stock ─ ─ Total transactions with (2,923) (4,135) (7,059) owners, etc. Balance as at 249,511 17,500 267,012 the end of the fiscal year - 10 - (4) Condensed Quarterly Consolidated Statement of Cash Flows (Unit: Million yen) First quarter of FY2020 First quarter of FY2021 (April 1, 2019 - (April 1, 2020 - June 30, 2019) June 30, 2020) Cash flows from operating activities Income (loss) before tax 10,942 (1,221) Depreciation and amortization 3,084 3,001 Impairment loss ─ 90 Loss (gain) on disposal of non-current assets 111 146 Finance income and finance costs (582) (413) Share of loss (profit) of investments accounted (108) (75) for using the equity method Decrease (increase) in trade and other receivables 732 (12,177) Net decrease (increase) in leased receivables 496 383 and investment assets Decrease (increase) in inventories 40 (1,518) Increase (decrease) in trade and other payables 2,658 (1,691) Increase (decrease) in net defined benefit asset 63 55 or liability Increase (decrease) in provisions (78) (39) Other (1,969) 741 Subtotal 15,391 (12,717) Interest income received 379 345 Dividend income received 206 168 Interest expenses paid (40) (25) Income taxes paid (2,556) (1,080) Cash flows from operating activities 13,379 (13,309) Cash flows from investing activities Payments into time deposits (1,753) (1,482) Proceeds from withdrawal of time deposits 781 2,553 Purchase of property, plant and equipment (1,763) (998) Proceeds from sales of property, plant and 26 98 equipment Purchase of intangible assets (706) (453) Purchase of equity instruments (13) (14) Proceeds from sales of equity instruments 0 ─ Payments of loans receivable (27) (16) Collection of loans receivable 60 62 Purchase of shares of consolidated subsidiaries ─ (1,564) Other 7 6 Cash flows from investing activities (3,389) (1,809) - 11 - (Unit: Million yen) First quarter of FY2020 First quarter of FY2021 (April 1, 2019 - (April 1, 2020- June 30, 2019) June 30, 2020) Cash flows from financial activities Net increase (decrease) in short-term loans 0 ─ payable Repayments of lease liabilities (347) (529) Purchase of treasury stock (0) ─ Cash dividends paid (2,855) (2,923) Payment to acquire interests in subsidiaries (2,717) (2,067) from non-controlling interests Net cash provided by (used in) financing (5,921) (5,520) activities Effect of exchange rate change on cash and cash (2,828) 188 equivalents Net increase (decrease) in cash and cash 1,240 (20,450) equivalents Cash and cash equivalents at beginning of period 128,647 149,628 Cash and cash equivalents at end of period 129,888 129,177 - 12 - (5) Notes Concerning Condensed Quarterly Consolidated Financial Statements (Notes Concerning Going Concern Assumption) Not applicable (Segment Information, etc.) Information about revenue, profits or losses for reportable segments First quarter of FY2020 (April 1, 2019 - June 30, 2019) (Unit: Million yen) Reportable segments Amounts stated Adjustments in consolidated Japan Americas China Asia and Total F/S Europe Revenue External revenue 15,801 50,266 21,621 13,032 100,722 ─ 100,722 Inter-segment transfer 4,170 368 1,292 477 6,308 (6,308) ─ Total 19,971 50,634 22,914 13,510 107,031 (6,308) 100,722 Segment profits 1,794 4,043 4,704 931 11,473 (1,098) 10,374 Finance income and ─ ─ ─ ─ ─ ─ 458 finance costs Return on investment ─ ─ ─ ─ ─ ─ 108 using the equity method Income before tax ─ ─ ─ ─ ─ ─ 10,942 (Notes) 1. Adjustments of -1,098 million yen for segment profits include a deduction of 49 million yen for transactions among segments, and operating expenses of -1,147 million yen associated with the administration division of the headquarters of the parent company, which could not be allocated. 2. Segment profits are adjusted to operating income in the condensed quarterly consolidated statements of income. First quarter of FY2021 (April 1, 2020 - June 30, 2020) (Unit: Million yen) Reportable segments Amounts stated Adjustments in consolidated Japan Americas China Asia and Total F/S Europe Revenue External revenue 10,854 16,541 24,344 3,000 54,739 ─ 54,739 Inter-segment transfer 2,771 121 1,073 196 4,163 (4,163) ─ Total 13,625 16,662 25,418 3,196 58,903 (4,163) 54,739 Segment profits (losses) (462) (2,394) 5,423 (2,921) (356) (1,436) (1,792) Finance income and ─ ─ ─ ─ ─ ─ 495 finance costs Return on investment ─ ─ ─ ─ ─ ─ 75 using the equity method Income before tax ─ ─ ─ ─ ─ ─ (1,221) (Notes) 1. Adjustments of -1,436 million yen for segment profits include a deduction of -177 million yen for transactions among segments, and operating expenses of -1,259 million yen associated with the administration division of the headquarters of the parent company, which could not be allocated. 2. Segment profits are adjusted to operating income in the condensed quarterly consolidated statements of income. 13 -