Note: 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.
Consolidated Financial Results
for the Nine Months Ended December 31, 2024
[Japanese GAAP]
Company name: Listing: Securities code: URL: Representative: Inquiries: Telephone:
Scheduled date to commence dividend payments: Preparation of supplementary material on financial results: Holding of financial results briefing:
February 7, 2025
TSUBAKIMOTO CHAIN CO. Tokyo
6371
https://www.tsubakimoto.jp/
Takatoshi Kimura, President and Representative Director
Yasuhiro Akesaka, Senior Executive Officer, Corporate Planning Department +81-6-6441-0054
-
Yes
None
(Yen amounts are rounded down to millions, unless otherwise noted.)
1. Consolidated Financial Results for the Nine Months Ended December 31, 2024 (April 1, 2024 to December 31, 2024)
(1) Consolidated Operating Results | (Percentages indicate year-on-year changes.) | |||||||||||||||
Net sales | Operating profit | Ordinary profit | Profit attributable to | |||||||||||||
owners of parent | ||||||||||||||||
Nine months ended | Millions of yen | % | Millions of yen | % | Millions of yen | % | Millions of yen | % | ||||||||
December 31, 2024 | 206,610 | 5.0 | 15,863 | 10.5 | 18,374 | 13.9 | 14,952 | 25.0 | ||||||||
December 31, 2023 | 196,806 | 7.6 | 14,349 | 4.0 | 16,132 | 3.2 | 11,964 | 9.5 | ||||||||
(Note) Comprehensive income: | Nine months ended December 31, 2024: | ¥ | 15,478 million | [ | (42.5) %] | |||||||||||
Nine months ended December 31, 2023: | ¥ | 26,899 million | [ | 31.9%] | ||||||||||||
Basic earnings | Diluted earnings per | |||||||||||||||
per share | share | |||||||||||||||
Nine months ended | Yen | Yen | ||||||||||||||
December 31, 2024 | 143.06 | - | ||||||||||||||
December 31, 2023 | 109.58 | - |
(Note) As of October 1, 2024, the Company is implementing a stock split at a ratio of three (3) post-split shares for every one (1) pre- split common share. Net income per share is calculated assuming that such stock split was conducted at the beginning of the previous consolidated accounting year.
(2) Consolidated Financial Position
Total assets | Net assets | Capital adequacy ratio | ||
As of | Millions of yen | Millions of yen | % | |
December 31, 2024 | 375,649 | 259,093 | 68.4 | |
March 31, 2024 | 391,298 | 260,559 | 66.0 | |
(Reference) Equity: As of | December 31, 2024: | ¥ | 256,867 million | |
As of | March 31, 2024: | ¥ | 258,400 million |
2. Dividends
Annual dividends | |||||||
1st | 2nd | 3rd | Year-end | Total | |||
quarter-end | quarter-end | quarter-end | |||||
Yen | Yen | Yen | Yen | Yen | |||
Fiscal year ended March 31, 2024 | - | 60.00 | - | 100.00 | 160.00 | ||
Fiscal year ending March 31, 2025 | - | 99.00 | - | ||||
Fiscal year ending March 31, 2025 | 47.00 | － | |||||
(Forecast) | |||||||
(Note) Revision to the forecast for dividends announced most recently: | None |
(Note) Year-end dividend per share for the fiscal year ending March 31, 2025 (forecast)
Effective October 1, 2024, the Company split its common shares at a ratio of 1 to 3. The year-end dividend per share for the fiscal year ending March 31, 2025 (forecast) reflects the effect of this stock split, and the total annual dividend per share is "-". If the stock split is not taken into account, the year-end dividend per share forecast for the fiscal year ending March 31, 2025 is 141 yen, the annual dividend per share is 240 yen. For details, please refer to "Proper use of earnings forecasts, and other special matters."
3. Consolidated Financial Results Forecast for the Fiscal Year Ending March 31, 2025(April 1, 2024 to March 31, 2025)
(Percentages indicate year-on-year changes.) | ||||||||||
Net sales | Operating profit | Ordinary profit | Profit attributable to | Basic earnings | ||||||
owners of parent | per share | |||||||||
Millions of yen | % | Millions of yen | % | Millions of yen | % | Millions of yen | % | Yen | ||
Full year | 278,000 | 4.2 | 22,200 | 4.4 | 24,000 | 2.3 | 21,000 | 13.2 | 201.86 | |
(Note) Revision to the financial results forecast announced most recently: | Yes |
(Note) Net income per share in the full-year financial results forecast for the fiscal year ending March 31, 2025 takes into account the effect of the stock split. For details, please refer to "Proper use of earnings forecasts, and other special matters."
* Notes: | |
(1) Significant changes in the scope of consolidation during the period: | None |
- Adoption of accounting treatment specific to the preparation of quarterly consolidated financial statements: None
- Changes in accounting policies, changes in accounting estimates, and restatement
- Changes in accounting policies due to revisions to accounting standards and other regulations: None
- Changes in accounting policies due to other reasons: None
- Changes in accounting estimates: None
- Restatement: None
- Number of issued shares (common shares)
- Total number of issued shares at the end of the period (including treasury shares):
December | 31, 2024: | 111,244,179 | shares |
March 31, | 2024: | 111,244,179 | shares |
2) Number of treasury shares at the end of the period:
December | 31, 2024: | 8,679,411 | shares |
March 31, | 2024: | 3,685,347 | shares |
3) Average number of shares outstanding during the period:
Nine months ended December 31, 2024: | 104,520,990 | shares |
Nine months ended December 31, 2023: | 109,180,062 | shares |
(Note) As of October 1, 2024, the Company is implementing a stock split at a ratio of three (3) post-split shares for every one (1) pre- split common share. Total number of issued shares at the end of the period, Number of treasury shares at the end of the period, and Average number of shares outstanding during the period are calculated assuming that such stock split was conducted at the beginning of the previous consolidated accounting year.
- Review of the Japanese-language originals of the attached consolidated quarterly financial statements by certified public accountants or an audit firm: None
- Proper use of earnings forecasts, and other special matters
The outlook for consolidated financial results is based on information available at the present juncture and certain assumptions believed to be reasonable. However, it includes risks and uncertainties. Actual business results may differ materially from the figures of the outlook for consolidated operating results due to changes in business conditions, market trends, or fluctuation in currency exchange rates. Furthermore, factors that may affect business results are not limited to those factors.
(Dividends and financial results forecast after stock split)
At a meeting of the Board of Directors held on May 14, 2024, we resolved to conduct a stock split, whereby each share of common stock shall be divided into 3 shares effective October 1, 2024. As a result, the dividend forecast and consolidated financial results forecast for the fiscal year ending March 31, 2025, as converted before the stock split, shall be as follows.
-
Dividend forecast for the fiscal year ending March 31, 2025
Dividends per share at the end of the second quarter 99 yen (Note 1); Year-end 141 yen (Note 2)
Annual dividend per share for the fiscal year ending March 31, 2025 (before stock split) shall be 240 yen. - Consolidated net income forecast per share for the fiscal year ending March 31, 2025: 605.58 yen at the end of the fiscal year. (Note 1) Dividends at the end of the second quarter shall be paid based on the number of shares before the stock split.
(Note 2) The dividend amount is calculated before the stock split.
Tsubakimoto Chain Co. (6371) CONSOLIDATED FINANCIAL STATEMENTS for the six-month period ended December 31, 2024
○Table of Contents - Attachments
-
Summary of Business Results, Etc. …………………………………….…………………… P.2
(1) Summary of Business Results of the Quarterly Consolidated Period ……………………… P.2
(2) Summary of Financial Position of the Quarterly Consolidated Period …………………….. P.3
(3) Summary of Cash Flow of the Quarterly Consolidated Period …………………………….. P.4
(4) Discussion of Future Outlook including Consolidated Operating Results Forecast ……….. P.4 - Quarterly Consolidated Financial Statements ………………………………………..……… P.5
(1) Quarterly Consolidated Balance Sheets ……………………………………………………. P.5
(2) Quarterly Consolidated Statements of Income and Quarterly Comprehensive Income ……. P.7
(3) Quarterly Consolidated Statements of Cash Flows ………………………………………… P.9
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Tsubakimoto Chain Co. (6371) CONSOLIDATED FINANCIAL STATEMENTS for the six-month period ended December 31, 2024
1. Summary of Business Results, Etc.
(1) Summary of Business Results of the Quarterly Consolidated Period
Regarding the global economy in the nine-month period ended December 31, 2024, while conditions remained tough due to various factors such as sluggish internal demand in the Chinese economy caused by prolonged adjustments in the real estate market, the US economy remained strong with robust personal consumption, and even Europe's economy remained on the path to recovery on the back of easing inflationary pressures. Subsequently, the global economy continued its moderate recovery. In Japan as well, personal consumption increased along with improvements in employment and income. As a result of these and other factors, the Japanese economy is generally in recovery.
The outlook moving forward for overseas economies is for personal consumption and capital expenditure to remain steady, as the cost of living and pressures of rising interest rates ease. However, there are also concerns about the effects of the second Trump administration's policies, which may reignite inflation and deepen social division. These are some of the risks that may place further downward pressures on the global economy. In Japan as well, in addition to an increase in personal consumption as real wages rise, the outlook is for an increase in capital investment aimed at resolving labor shortages and facilitating digitalization and decarbonization. However, increasing uncertainty in overseas economies and other factors are expected to keep the economic recovery at a moderate pace.
In such circumstances, the Tsubaki Group will remain focused on achieving the Mid-term Management Plan 2025, and concentrate on rolling out various measures with an awareness of capital costs, while also bolstering manufacturing and strengthening the earning power of our existing businesses, as well as moving forward with the development of new businesses that will lead to sustainable growth.
As a result, orders received by the Tsubaki Group for this nine-month period were up 4.4% year on year to ¥205,990 million, and net sales increased 5.0% year on year to ¥206,610 million.
Operating income increased 10.5% year on year to ¥15,863 million, and ordinary income increased 13.9% year on year to ¥18,374 million, while net income attributable to parent company shareholders increased 25.0% year on year to ¥14,952 million.
Segment results are summarized as follows:
[Chains]
In the Chains segment, net sales increased year on year due to such factors as a rise in sales in Japan and China, and the effect of the weakening of the yen.
The segment recorded a year-on-year increase of 4.3% in orders received to ¥70,028 million, while net sales increased 1.1% year on year to ¥70,090 million. However, operating income decreased 6.3% year on year to ¥11,349 million due to various factors including a rise in labor costs.
[Motion Control]
In the Motion Control segment, net sales increased year-on-year due to such factors as a rise in sales in Japan, South Korea, and Taiwan, despite a fall in sales in the Americas, Europe, the Indian Ocean Rim, and China. Subsequently, the segment recorded a year-on-year increase of 7.2% in orders received to ¥16,757 million, a 2.5% increase in net sales over the same period to ¥17,022 million, and a year-on-year increase of 15.6% in operating income to ¥640 million.
[Mobility]
In the Mobility segment, net sales increased year on year due to factors such as an increase in the sales of timing chain systems for automobile engines and other items in the Americas, Europe, and South Korea.
The segment recorded a year-on-year increase of 6.8% in orders received to ¥67,369 million, a year-on-year increase of 7.5% in net sales to ¥67,698 million, and a year-on-year increase of 11.0% in operating income to ¥5,895 million.
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Tsubakimoto Chain Co. (6371) CONSOLIDATED FINANCIAL STATEMENTS for the six-month period ended December 31, 2024
[Materials Handling Systems]
In the Materials Handling Systems segment, there was a year-on-year increase in net sales due to an increase in sales of metalworking chips handling, coolant processing systems, and systems for the automotive industry in the Americas, and an increase in sales of systems for the logistics industry and automobile industry in Japan, along with other factors.
Subsequently, the segment recorded a year-on-year increase of 0.9% in orders received to ¥49,862 million, and a 8.4% increase in net sales over the same period to ¥49,714 million. Operating income was ¥148 million (operating loss of ¥1,823 million in the same period of the previous fiscal year).
[Other]
Other orders received decreased 3.3% year on year to ¥1,972 million, and net sales increased 1.4% over the same period to ¥2,085 million. Despite this, the Group recorded an operating loss of ¥655 million (operating loss of ¥707 million in the same period of the previous fiscal year).
-
Summary of Financial Position of the Quarterly Consolidated Period (Assets)
Total assets on December 31, 2024 were ¥375,649 million, down ¥15,648 million from the end of the previous consolidated fiscal year.
Current assets totaled ¥194,314 million, a decrease of ¥11,538 million from the end of the previous consolidated fiscal year. This was due to various factors such as a decrease of ¥15,224 million in cash and deposits, despite an increase of ¥1,627 million in electronically recorded monetary claims, an increase of ¥1,328 million in other current assets due to an increase in corporate tax receivable, etc., and other factors, and an increase of ¥447 million in inventories.
Non-current assets amounted to ¥181,334 million, down ¥4,110 million from the end of the previous consolidated fiscal year. The decrease was partly attributable to a ¥3,301 million decrease in investments in securities from the sale of securities held by the Company and other factors, a ¥366 million decrease in property, plant and equipment, and a ¥448 million decrease in intangible fixed assets.
(Liabilities)
Liabilities on December 31, 2024 were ¥116,555 million, down ¥14,183 million from the end of the previous consolidated fiscal year. This was attributable to various factors such as a ¥7,000 million decrease in electronically recorded monetary obligations due to a shortening of the payment period and other factors, a ¥3,578 million decrease in borrowings, a ¥1,892 million decrease in income taxes payable, and a ¥1,630 million decrease in provision for bonuses.
(Net assets)
Net assets were ¥259,093 million, down ¥1,465 million from the end of the previous consolidated fiscal year, and the equity ratio was 68.4%. This was attributable to numerous factors, including a ¥7,968 million increase in retained earnings and a ¥3,929 million increase in foreign currency translation adjustments due to exchange rate fluctuations, despite a ¥9,939 million increase (decrease in net assets) in treasury stock acquired, etc., and
a ¥3,479 million decrease in valuation difference on available-for-sale securities.
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Tsubakimoto Chain Co. (6371) CONSOLIDATED FINANCIAL STATEMENTS for the six-month period ended December 31, 2024
(3) Summary of Cash Flow of the Quarterly Consolidated Period
Cash and cash equivalents (hereafter referred to as "cash") at the end of the third-quarter consolidated period amounted to ¥58,396 million, down ¥16,258 million from the end of the previous consolidated fiscal year. Respective cash flows and their causes are as follows:
(Cash provided by operating activities)
Net cash provided by operating activities was ¥12,332 million (¥27,638 million in the same period of the previous fiscal year). This was attributable to various factors such as quarterly profit before income taxes of ¥21,015 million and depreciation and amortization of ¥10,571 million, which offset a gain on sale of investment securities of ¥2,781 million, income taxes paid of ¥7,522 million, and a ¥7,997 million decrease in trade payables.
(Cash used in investing activities)
Net cash used in investing activities was ¥8,924 million (¥7,619 million in the same period of the previous fiscal year). This resulted from various factors such as ¥8,726 million used for the acquisition of fixed assets, ¥3,822 million used for the deposits of fixed deposits, and ¥2,094 million used for the acquisition of shares of subsidiaries and associates, despite an income of ¥2,987 million from the sale of investments in securities, and an income of ¥2,598 million from the payout of fixed deposits.
(Cash used in financing activities)
Net cash used in financing activities was ¥21,353 million (¥12,282 million in the same period of the previous fiscal year). This resulted from various factors such as ¥10,005 million used to acquire treasury stock, ¥6,984 million used to pay for dividends, and a ¥3,617 million decrease in borrowings.
(4) Discussion of Future Outlook including Consolidated Operating Results Forecast
Based on the actual results for the third-quarter consolidated period and the current outlook, we have revised the full-term consolidated results forecast announced on October 31, 2024, for the fiscal year ending March 31, 2025, as below.
The exchange rate used for the fourth quarter of this fiscal year, which is an assumption on which the full-term consolidated business results forecasts are based, is set at 1 USD=155 JPY, and 1 Euro=160 JPY.
Revised full-term consolidated results forecast for the fiscal year ending March 31, 2025 (April 1, 2024 - March 31, 2025)
Net sales | Operating | Ordinary income | Net income | Net income | |
income | per share | ||||
Previously released forecast (A) | Millions of yen | Millions of yen | Millions of yen | Millions of yen | Yen |
274,000 | 20,000 | 22,000 | 20,000 | 192.25 | |
(Released October 31, 2024) | |||||
Revised forecast (B) | 278,000 | 22,200 | 24,000 | 21,000 | 201.86 |
Increase/(Decrease) (B-A) | 4,000 | 2,200 | 2,000 | 1,000 | ― |
Percentage increase/(decrease) (%) | 1.5 | 11.0 | 9.1 | 5.0 | ― |
(Note) Effective October 1, 2024, the Company split its common shares at a ratio of 1 to 3. Net income per share in the full-term consolidated results forecast for the fiscal year ending March 31, 2025 reflects the effect of the stock split. The net income per share forecast for the fiscal year ending March 31, 2025, not reflecting the stock split, will now be the revised amount of 605.58 yen (the previous forecast was 576.75 yen).
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Tsubakimoto Chain Co. (6371) CONSOLIDATED FINANCIAL STATEMENTS for the six-month period ended December 31, 2024
2. Quarterly Consolidated Financial Statements
(1) Quarterly Consolidated Balance Sheets
(Millions of yen) | |||||
As of March 31, 2024 | As of December 31, 2024 | ||||
Assets | |||||
Current assets | |||||
Cash and deposits | 77,321 | 62,096 | |||
Notes and accounts receivable - trade, and contract | 47,095 | 47,200 | |||
assets | |||||
Electronically recorded monetary claims - | 20,255 | 21,882 | |||
operating | |||||
Securities | 603 | 882 | |||
Merchandise and finished goods | 26,217 | 25,544 | |||
Work in process | 16,959 | 18,793 | |||
Raw materials and supplies | 14,980 | 14,267 | |||
Other | 3,359 | 4,687 | |||
Allowance for doubtful accounts | (938) | (1,040) | |||
Total current assets | 205,853 | 194,314 | |||
Non-current assets | |||||
Property, plant and equipment | |||||
Buildings and structures, net | 34,534 | 33,834 | |||
Machinery, equipment and vehicles, net | 35,888 | 34,240 | |||
Tools, furniture and fixtures, net | 4,373 | 4,719 | |||
Land | 38,533 | 38,583 | |||
Construction in progress | 5,612 | 7,197 | |||
Total property, plant and equipment | 118,942 | 118,575 | |||
Intangible assets | |||||
Goodwill | 1,216 | 1,119 | |||
Other | 7,688 | 7,337 | |||
Total intangible assets | 8,904 | 8,456 | |||
Investments and other assets | |||||
Investment securities | 47,052 | 43,751 | |||
Retirement benefit asset | 298 | 332 | |||
Other | 10,354 | 10,325 | |||
Allowance for doubtful accounts | (106) | (106) | |||
Total investments and other assets | 57,598 | 54,302 | |||
Total non-current assets | 185,444 | 181,334 | |||
Total assets | 391,298 | 375,649 | |||
―5―
Tsubakimoto Chain Co. (6371) CONSOLIDATED FINANCIAL STATEMENTS for the six-month period ended December 31, 2024
(Millions of yen) | |||
As of March 31, 2024 | As of December 31, 2024 | ||
Liabilities | |||
Current liabilities | |||
Notes and accounts payable - trade | 18,592 | 18,134 | |
Electronically recorded obligations - operating | 14,699 | 7,699 | |
Short-term borrowings | 4,183 | 4,204 | |
Current portion of bonds payable | - | 5,000 | |
Current portion of long-term borrowings | 5,801 | 1,579 | |
Income taxes payable | 2,906 | 1,013 | |
Provision for bonuses | 6,133 | 4,503 | |
Provision for loss on construction contracts | 179 | 96 | |
Provision for shareholder benefit program | 46 | - | |
Electronically recorded obligations - non- | 2,809 | 2,639 | |
operating | |||
Other | 22,148 | 23,312 | |
Total current liabilities | 77,499 | 68,182 | |
Non-current liabilities | |||
Bonds payable
Long-term borrowings
Provision for retirement benefits for directors (and other officers)
Retirement benefit liability
Asset retirement obligations
Other
Total non-current liabilities
Total liabilities
Net assets
Shareholders' equity
Share capital
Capital surplus
Retained earnings
Treasury shares
Total shareholders' equity
Accumulated other comprehensive income
Valuation difference on available-for-sale securities
Deferred gains or losses on hedges
Revaluation reserve for land
Foreign currency translation adjustment
Remeasurements of defined benefit plans
15,000 | 10,000 |
3,728 | 4,350 |
144 | 150 |
12,497 | 12,894 |
600 | 606 |
21,267 | 20,369 |
53,238 | 48,372 |
130,738 | 116,555 |
17,076 | 17,076 |
12,582 | 12,598 |
185,285 | 193,253 |
(4,375) | (14,315) |
210,568 | 208,612 |
25,667 | 22,187 |
(61) | (82) |
(10,597) | (10,597) |
31,991 | 35,921 |
831 | 825 |
Total accumulated other comprehensive income | 47,831 | 48,254 |
Non-controlling interests | 2,159 | 2,226 |
Total net assets | 260,559 | 259,093 |
Total liabilities and net assets | 391,298 | 375,649 |
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Tsubakimoto Chain Co. (6371) CONSOLIDATED FINANCIAL STATEMENTS for the six-month period ended December 31, 2024
- Quarterly Consolidated Statements of Income and Comprehensive Income Quarterly Consolidated Statements of Income (For the nine months)
(Millions of yen) | ||
For the nine months | For the nine months | |
ended December 31, 2023 | ended December 31, 2024 | |
Net sales | 196,806 | 206,610 |
Cost of sales | 139,947 | 146,693 |
Gross profit | 56,858 | 59,917 |
Selling, general and administrative expenses | 42,509 | 44,053 |
Operating profit | 14,349 | 15,863 |
Non-operating income | ||
Interest income | 684 | 1,013 |
Dividend income
Other
Total non-operating income
Non-operating expenses
Interest expenses
Foreign exchange losses
Restructuring expenses
Other
Total non-operating expenses
Ordinary profit
Extraordinary income
Settlement income
Gain on sale of investment securities
Total extraordinary income
Extraordinary losses
Impairment losses
Loss on valuation of investment securities Loss on valuation of shares of subsidiaries and associates
Total extraordinary losses
Profit before income taxes
Income taxes - current
Income taxes - deferred
1,245 | 1,654 |
895 | 859 |
2,825 | 3,527 |
216 | 206 |
- | 240 |
289 | - |
536 | 569 |
1,042 | 1,016 |
16,132 | 18,374 |
1,259 | - |
1,192 | 2,781 |
2,451 | 2,781 |
597 | 21 |
502 | - |
178 | 118 |
1,278 | 140 |
17,305 | 21,015 |
4,643 | 5,303 |
668 | 718 |
Total income taxes | 5,311 | 6,021 |
Profit | 11,993 | 14,993 |
Profit attributable to non-controlling interests | 29 | 40 |
Profit attributable to owners of parent | 11,964 | 14,952 |
―7―