Consolidated Financial Results | ||||
for the Six Months Ended September 30, 2024 | ||||
（Under Japanese GAAP） | ||||
January 17, 2025 | ||||
Company name: | Yorozu Corporation | Listed | Tokyo Stock Exchange | |
Exchange: | ||||
Securities code: | 7294 | URL: http://www.yorozu-corp.co.jp | ||
Representative: | Tsutomu Hiranaka, President & COO | |||
Inquiries: | Norio Hirano, Executive Vice President & CFO | TEL: 045-543-6802 | ||
Scheduled date to commence dividend payments: | December 10, 2024 | |||
Scheduled date of filing Hanki-Houkokusho: | January 17, 2025 | |||
Preparation of supplementary material on financial results: | Yes | |||
Holding of financial results briefing: | Yes (For institutional investors and analysts) |
(Yen amounts are rounded down to millions, unless otherwise noted.)
1. Consolidated Financial Results for the Six Months Ended September 30, 2024 (April 1, 2024 through September 30, 2024)
(1) Consolidated operating results (cumulative) | (Percentages indicate year-on-year changes.) | |||||||||||||
Net sales | Operating income | Ordinary income | Profit attributable to | |||||||||||
owners of parent | ||||||||||||||
Six Months Ended | Millions of yen | % | Millions of yen | % | Millions of yen | % | Millions of yen | % | ||||||
September 30, 2024 | 90,942 | 7.9 | 120 | (74.3) | (1,958) | － | (2,588) | ― | ||||||
September 30, 2023 | 84,259 | 17.1 | 470 | (13.3) | 754 | (3.2) | 58 | (81.4) | ||||||
Note: Comprehensive income is as follows. | ||||||||||||||
For the six-month period ended September 30, 2024: ¥464 million decreased by 93.6% year-on-year | ||||||||||||||
For the six-month period ended September 30, 2023: ¥7,307 million decreased by 3.3 % year-on-year | ||||||||||||||
Basic earnings per share | Diluted earnings per share for the six- | |||||||||||||
for the six-month period | month period | |||||||||||||
Six Months Ended | Yen | Yen | ||||||||||||
September 30, 2024 | (106.25) | ― | ||||||||||||
September 30, 2023 | 2.42 | 2.37 | ||||||||||||
Note: Earnings per share (diluted) for six month ended September 30, 2024 is not indicated because the basic earnings per share for the interim period is a loss, despite the
presence of diluted shares
(2) Consolidated financial position
Total assets | Net assets | Equity-to-asset ratio | |
Millions of yen | Millions of yen | % | |
FY2024 1st half | 148,364 | 75,628 | 44.1 |
FY 2023 | 142,257 | 75,493 | 46.4 |
Reference: Net assets excluding share subscription rights and non-controlling interests:
As of September 30, 2024: | ¥65,432 million |
As of March 31, 2024: | ¥66,070 million |
2. Cash dividends
Annual cash dividends per share | |||||
1st quarter end | 2nd quarter end | 3rd quarter end | Fiscal year end | Total | |
yen | yen | yen | yen | yen | |
FY2023 | － | 13.00 | － | 17.00 | 30.00 |
FY2024 | － | 15.00 | |||
FY2024 (Forecast) | － | 16.00 | 31.00 |
Note : Changes in dividends forecast for FY2024 from the latest disclosure: None
3. Forecasted consolidated performance for the fiscal year ending March 2025 (From April 1, 2024 to March 31, 2025) (Percentages indicate year-on-year changes.)
Net sales | Operating income | Ordinary income | Profit attributable to | Basic earnings | ||||||
owners of parent | per share | |||||||||
Millions | Millions | Millions | Millions | |||||||
of yen | % | of yen | % | of yen | % | of yen | % | Yen | ||
Full-year | 177,000 | (2.5) | (1,200) | － | (3,800) | － | (17,000) | － | (696.79) | |
Note: Changes in forecast of consolidated operating results from the latest disclosure: Yes
* Notes
(1) Significant changes in the scope of consolidation during the six-month period: None
Newly included: | ― companies |
Excluded: | ― companies |
- Adoption of specific accounting policies for interim consolidated financial statements: Yes
-
Changes in accounting policies, changes in accounting estimates, and restatement
1 Changes in accounting policies due to revisions to accounting standards and other regulations: Yes
2 Changes in accounting policies due to other reasons: None
3 Changes in accounting estimates: None
4 Restatement: None - Number of shares issued (common stock)
1 | Number of shares issued at the end of the period | FY2024 | 25,055,636 | shares | FY2023 | 25,055,636 shares |
(including treasury stocks) | 1st half | |||||
2 | Number of treasury stocks at the end of the period | |||||
FY2024 | 625,059 | shares | FY2023 | 796,233 shares | ||
1st half | ||||||
3 | The average number of shares issued during the period | |||||
FY2024 | 24,365,140 | shares | FY2023 | 24,194,995 shares | ||
1st half | 1st half | |||||
* Please note that this financial results report is not subject to audit by a certified public accountant or an audit corporation. * Explanation on the Appropriate Use of Performance Forecasts and Other Special Notes
The future outlook and forecasts contained in this document are based on information currently available to our company and on certain assumptions that we consider reasonable. They do not serve as a guarantee that such results will be achieved by our company. Actual performance could vary significantly due to various factors. For conditions underlying the Performance Forecasts and cautionary notes on using these forecasts, please refer to the attached materials on page 3, section (3) "Future Outlook."
Our company plans to hold a briefing for institutional investors and analysts as follows. The materials used in this briefing will be promptly posted on our company's website after the briefing.
Earnings briefing for institutional investors and analysts: Friday, January 31, 2025
○Table of Contents of the Attached Documents | ||
1. Overview of the Business Results | 2 | |
(1) | Summary of operating results | 2 |
(2) | Summary of financial position | 2 |
(3) | Future outlook | 3 |
2. Interim Consolidated Financial Statements and Key Notes | 4 | |
(1) | Interim consolidated balance sheet | 4 |
(2) | Interim consolidated profit and loss statement and comprehensive income statement | 6 |
(3) | Interim consolidated cash flow statement | 8 |
(4) | Interim consolidated financial statements | 9 |
(Note to assumption of a going concern) | 9 | |
(Note to significant changes in shareholders' equity) | 9 | |
(Adoption of specific accounting policies for interim consolidated financial statements) | 9 | |
(Changes in accounting policies) | 9 | |
(Segment information, etc.) | 10 | |
(Significant subsequent events) | 11 |
―1―
1. Overview of Business Results
(1) Summary of operating results
While the global economy showed signs of a moderate recovery during the current interim period, the outlook remains uncertain due to the progress of global inflation such as persistent high prices of raw materials and logistics costs, as well as sharp fluctuations in foreign exchange and stock markets. Additionally, geopolitical risks and downward pressures stemming from the Middle East situation, the prolonged slowdown of the Chinese economy, and potential changes in trade policy under the next U.S. administration continue to pose challenges.
The production volume of the automobile industry, which our group is involved in, is expected to remain in a difficult situation due to the impact of reduced production by Japanese OEMs as a result of the shift to BEVs in the Chinese and other markets.
Despite a decrease in production volume in Japan and Asia, our group's net sales increased 7.9% to ¥90,942 million compared to the same period of the previous fiscal year, primarily driven by the positive impact of the depreciation of the yen. Operating income decreased 74.3% to ¥120 million year-on-year due to one-time quality costs in the Americas and the decrease in production volume in Japan and Asia, despite efforts to streamline operations. Ordinary income recorded a loss of ¥1,958 million, down ¥2,713 million year- on-year. Net income attributable to owners of the parent decreased by ¥2,647 million to a loss of ¥2,588 million compared to the same period of the previous fiscal year.
It should be noted that the financial results of overseas subsidiaries in the consolidated financial statements are translated into Japanese yen using the average exchange rate for each subsidiary's fiscal-year period. The average US dollar exchange rate for the current interim period (from January to June) was ¥152.36 per US dollar, compared to ¥134.98 per US dollar for the same period of the previous fiscal year.
The situation for each segment is as follows.
(1) Japan
Net sales decreased 5.2% year-on-year to ¥28,085 million, primarily due to a decline in production volume. Operating income decreased 76.3% year-on-year to ¥624 million, despite cost-reduction efforts, due to a decrease in tooling sales and initial costs associated with the start of operations at Yorozu Sustainable Manufacturing Center Inc. (YSMC) Gifu factory.
(2) The Americas
Net sales increased by 27.0% year-on-year to ¥45,926 million, driven by increased production volume and the positive impact of yen depreciation. Operating loss amounted to ¥1,147 million, a decrease of ¥568 million compared to the same period of the previous year, primarily due to one-time quality costs incurred in the United States, despite increased production.
(3) Asia
Net sales decreased 12.6% year-on-year to ¥20,417 million, primarily due to a decrease in production volume in China, despite the positive impact of yen depreciation. Operating income increased by ¥837 million year-on-year to ¥86 million.
(2) Summary of financial position
(Assets Section)
Current assets increased by ¥4,152 million to ¥79,525 million compared to the end of the previous consolidated fiscal year. This increase was primarily due to a ¥3,117 million increase in "notes and accounts receivable," and a ¥1,263 million increase in "work in process. "
Non-current assets increased by ¥1,955 million to ¥68,839 million compared to the end of the previous consolidated fiscal year. This increase was primarily attributable to a ¥2,806 million increase in "machinery and transportation equipment (net)" and a ¥1,739 million increase in "buildings and structures (net)", partially offset by a ¥1,750 million decrease in "construction in progress" and a ¥937 million decrease in "investments and other assets."
As a result, total assets increased by ¥6,107 million to ¥148,364 million compared to the end of the previous consolidated fiscal year.
(Liabilities Section)
Current liabilities increased by ¥1,879 million to ¥51,695 million compared to the end of the previous consolidated fiscal year, primarily due to a ¥2,645 million increase in "other current liabilities," partially offset by a ¥738 million decrease in "electronically recorded liabilities."
―2―
Non-current liabilities increased by ¥4,092 million to ¥21,041 million compared to the end of the previous consolidated fiscal year. This increase was mainly attributable to a ¥2,035 million increase in "other non-current liabilities" and a ¥2,018 million increase in "long-term borrowings."
As a result, total liabilities increased by ¥5,972 million to ¥72,736 million compared to the end of the previous consolidated fiscal year.
(Net Assets Section)
Total equity increased by ¥134 million to ¥75,628 million compared to the end of the previous consolidated fiscal year. This increase was primarily due to a ¥3,099 million increase in "foreign currency translation adjustments," partially offset by a ¥3,001 million decrease in "retained earnings."
- Future outlook
The full-year Performance Forecast has been revised based on the latest available information and forecasts, from what was disclosed in our earnings release (consolidated) for the fiscal year ended March 31, 2024, dated May 15, 2024.
For more details, please refer to our announcement today regarding the revision of the full-year Performance Forecast for the fiscal year ending March 31, 2025.
―3―
2．Interim Consolidated Financial Statements and Key Notes
(1) Interim consolidated balance sheet
(Millions of yen) | |||
Previous fiscal year | Current first half year | ||
As of March 31, 2024 | As of September 30, 2024 | ||
Assets | |||
Current assets | |||
Cash on hand and in banks | 22,287 | 21,988 | |
Trade notes and accounts receivable | 28,693 | 31,810 | |
Electronically recorded obligations | 2,154 | 2,163 | |
Finished goods | 5,223 | 4,885 | |
Raw materials and supplies | 1,211 | 1,630 | |
Parts and etc. | 4,370 | 4,057 | |
Work in process | 5,742 | 7,005 | |
Other | 6,270 | 6,636 | |
Allowance for doubtful accounts | (580) | (652) | |
Total current assets | 75,373 | 79,525 | |
Fixed assets | |||
Property, plant and equipment | |||
Buildings and structures, net | 19,328 | 21,068 | |
Machinery, equipment and vehicles, net | 22,260 | 25,066 | |
Construction in progress | 6,533 | 4,782 | |
Other, net | 6,651 | 6,764 | |
Total property, plant and equipment | 54,773 | 57,681 | |
Intangible fixed assets | 206 | 191 | |
Investments and other assets | 11,903 | 10,966 | |
Total fixed assets | 66,884 | 68,839 | |
Total assets | 142,257 | 148,364 | |
―4―
(Millions of yen) | ||||
Previous fiscal year | Current first half year | |||
As of March 31, 2024 | As of September 30, 2024 | |||
Liabilities | ||||
Current liabilities | ||||
Trade notes and accounts payable | 14,838 | 14,723 | ||
Electronically Recorded obligations | 3,174 | 2,435 | ||
Short-term borrowings | 12,986 | 13,052 | ||
Current portion of long-term borrowings | 6,065 | 5,676 | ||
Accounts payable - other | 1,545 | 1,866 | ||
accrued income tax payable | 803 | 306 | ||
Bonus payable | 1,362 | 1,949 | ||
Provision for directors' bonuses | 92 | 93 | ||
Other Current Liabilities | 8,945 | 11,590 | ||
Total Current Liabilities | 49,815 | 51,695 | ||
Long-term liabilities | ||||
Long-term borrowings | 14,210 | 16,229 | ||
Retirement Benefit Liabilities | 885 | 923 | ||
Other Non-Current Liabilities | 1,852 | 3,888 | ||
Total Non-Current Liabilities | 16,949 | 21,041 | ||
Total liabilities | 66,764 | 72,736 | ||
Net assets | ||||
Shareholders' equity | ||||
Capital Stock | 6,200 | 6,200 | ||
Capital Surplus | 9,372 | 9,323 | ||
Retained Earnings | 43,957 | 40,956 | ||
Treasury Stock | (1,136) | (889) | ||
Total Shareholders' Equity | 58,394 | 55,590 | ||
Accumulated other comprehensive income | ||||
Unrealized holding gain and loss on securities | 4,113 | 3,319 | ||
Foreign Currency Translation Adjustment | 3,731 | 6,831 | ||
Retirement Benefit Adjustments | (169) | (309) | ||
Total Accumulated Other Comprehensive Income | 7,676 | 9,841 | ||
Stock option | 599 | 517 | ||
Non-Controlling Interests | 8,822 | 9,678 | ||
Total Equity | 75,493 | 75,628 | ||
Total Liabilities and Equity | 142,257 | 148,364 | ||
―5―
-
Interim Consolidated Profit and Loss Statement and Consolidated Comprehensive Income Statement
Interim consolidated statement of income
(Millions of yen) | |||
Previous fiscal year | Current first half year | ||
(From April 1, 2023 | (From April 1, 2024 | ||
to September 30, 2023) | to September 30, 2024) | ||
Net sales | 84,259 | 90,942 | |
Cost of sales | 76,698 | 82,123 | |
Gross profit | 7,561 | 8,818 | |
Selling, general and administrative expenses | 7,090 | 8,698 | |
Operating income | 470 | 120 | |
Non-operating income | |||
Interest income | 180 | 182 | |
Dividends income | 105 | 134 | |
Miscellaneous income | 528 | 41 | |
Total non-operating income | 814 | 358 | |
Non-operating expenses | |||
Interest expense | 448 | 469 | |
Exchange loss | ― | 1,687 | |
Miscellaneous expenses | 82 | 281 | |
Total non-operating expenses | 530 | 2,438 | |
Operating profit or loss | 754 | (1,958) | |
Extraordinary Income | |||
Gain on Sale of Fixed Assets | 9 | 30 | |
Gain on Sale of Investment Securities | ― | 10 | |
Other | 4 | 0 | |
Total Extraordinary Income | 14 | 41 | |
Extraordinary Loss | |||
Loss on Disposal of Fixed Assets | 9 | 0 | |
Loss on Cancellation of Insurance Policies | 2 | 3 | |
Total Extraordinary Loss | 11 | 3 | |
Profit (Loss) before Income Taxes | 757 | (1,921) | |
Income Taxes | 1,133 | 660 | |
Net Profit (Loss) for the Interim Period | (376) | (2,581) | |
Net Profit (Loss) Attributable to Non-Controlling Interests | (434) | 7 | |
Net Profit (Loss) Attributable to Parent Company | 58 | (2,588) | |
Shareholders | |||
―6―
Interim consolidated comprehensive income statement
(Millions of yen) | ||
Previous fiscal year | Current first half year | |
(From April 1, 2023 | (From April 1, 2024 | |
to September 30, 2023) | to September 30, 2024) | |
Net income (loss) | (376) | (2,581) |
Other comprehensive income |
Unrealized holding gain and loss on securities
Translation adjustments
Remeasurements of defined benefit plans
Total other comprehensive income
Comprehensive income
(Breakdown of comprehensive income)
Comprehensive income attributable to owners of parent
Comprehensive income attributable to non-controlling interests
1,116 | (793) |
6,530 | 4,004 |
36 | (164) |
7,683 | 3,045 |
7,307 | 464 |
6,811 | (423) |
495 | 888 |
―7―
(3) Interim consolidated cash flow statement
(Millions of yen)
Previous fiscal year (From April 1, 2023 to September 30, 2023)
Current first half year (From April 1, 2024 to September 30, 2024)
Cash flows from operating activities | |||||
Increase (decrease) in income before income taxes | 757 | (1,921) | |||
Depreciation and amortization | 4,652 | 3,871 | |||
Increase (decrease) in allowance for doubtful accounts | (70) | 46 | |||
Increase (decrease) in bonus provision | 513 | 540 | |||
Retirement benefit expenses | (81) | (131) | |||
Interest and dividends received | (286) | (317) | |||
Interest paid | 448 | 469 | |||
Exchange gain or loss | (453) | (98) | |||
Decrease (increase) in trade notes and accounts | 936 | (1,932) | |||
receivable | |||||
Decrease (increase) in sales finance receivables | 47 | (78) | |||
Decrease (increase) in inventories | (766) | (318) | |||
Increase or decrease in accrued income | 899 | 1,255 | |||
Increase or decrease in other assets | (2,047) | (1,376) | |||
Increase (decrease) in trade notes and accounts payable | (701) | (1,278) | |||
Other | 2,281 | 2,276 | |||
Subtotal | 6,130 | 1,006 | |||
Interest and dividends received | 287 | 318 | |||
Interest paid | (427) | (470) | |||
Income taxes paid | (485) | (1,416) | |||
Net cash provided by (used in) operating activities | 5,504 | (561) | |||
Cash flows from investing activities | |||||
Purchase of fixed assets | (3,729) | (5,915) | |||
Income from the disposal of fixed assets | 9 | 30 | |||
Purchase of intangible fixed assets | (57) | (44) | |||
Proceeds from the sale of investment securities | ― | 17 | |||
Payments for Time Deposits | (1,185) | ― | |||
Proceeds from Withdrawal of Time Deposits | 1,382 | ― | |||
Other Investments | (73) | (150) | |||
Other Income | 24 | 31 | |||
Net cash provided by (used in) investing activities | (3,629) | (6,031) | |||
Cash flows from financing activities | |||||
Net increase (decrease) in short-term borrowings | 450 | (713) | |||
Proceeds from long-term borrowings | 2,000 | 4,434 | |||
Repayments of long-term borrowings | (5,884) | (3,707) | |||
Proceeds from a sale and leaseback | ― | 2,495 | |||
Cash dividends paid | (434) | (412) | |||
Cash dividends paid to non-controlling interests | (335) | (32) | |||
other | 36 | 93 | |||
Net cash provided by (used in) financing activities | (4,167) | 2,157 | |||
Effects of exchange rate changes on cash and cash | 1,640 | 4,136 | |||
equivalents | |||||
Increase (decrease) in cash and cash equivalents | (651) | (298) | |||
Cash and cash equivalents at the end of the period | 22,287 | 22,287 | |||
Increase (decrease) in cash and cash equivalents | 21,636 | 21,988 | |||
―8―