Consolidated Financial Results
for the Nine Months Ended December 31, 2024
（Under Japanese GAAP）
February 14, 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: | － | |||
Preparation of supplementary material on financial results: | None | |||
Holding of financial results briefing: | 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 (cumulative) | (Percentages indicate year-on-year changes.) | |||||||||||||
Net sales | Operating income | Ordinary income | Profit attributable to | |||||||||||
owners of parent | ||||||||||||||
Nine months ended | Millions of yen | % | Millions of yen | % | Millions of yen | % | Millions of yen | % | ||||||
Dec 31, 2024 | 134,819 | 4.4 | 162 | (84.0) | (1,748) | － | (5,389) | － | ||||||
Dec 31, 2023 | 129,115 | 12.1 | 1,015 | (36.1) | 795 | (51.5) | 17 | (96.4) | ||||||
Note: Comprehensive income (loss) is as follows. | ||||||||||||||
For the nine-month period ended December 31, 2024: (¥6,689) million | ||||||||||||||
For the nine-month period ended December 31, 2023: ¥6,988 million decreased by 10.9% year-on-year | ||||||||||||||
Basic earnings per share | Diluted earnings per share for the | |||||||||||||
for the nine-month period | nine-month period | |||||||||||||
Nine months ended | Yen | Yen | ||||||||||||
December 31, 2024 | (220.98) | － | ||||||||||||
December 31, 2023 | 0.74 | 0.72 | ||||||||||||
Note: Earnings per share (diluted) for the nine-month period ended December 31, 2024 is not indicated because the basic earnings per share for the 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 | % | |
December 31, 2024 | 142,310 | 68,107 | 41.3 |
March 31, 2024 | 142,257 | 75,493 | 46.4 |
Reference: Net assets excluding share subscription rights and non-controlling interests:
As of December 31, 2024: | ¥58,811 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.)
Profit (Loss) | Basic earnings | ||||||||||
Net sales | Operating income | Ordinary income | attributable to | ||||||||
per share | |||||||||||
owners of parent | |||||||||||
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: None
* Notes
(1) Significant changes in the scope of consolidation during the current nine-month period: None
Newly included: | ― companies |
Excluded: | ― companies |
- Adoption of specific accounting policies for quarterly 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 3rd | 25,055,636 | shares | FY2023 | 25,055,636 shares |
(including treasury stocks) | quarter | |||||
2 | Number of treasury stocks at the end of the period | FY2024 3rd | 625,059 | shares | FY2023 | 796,233 shares |
quarter | ||||||
3 | The average number of shares issued during the period | FY2024 3rd | 24,387,032 | shares | FY2023 3rd | 24,216,542 shares |
(total of nine months) | quarter | quarter | ||||
- A review by a certified public accountant or audit corporation for the attached quarterly consolidated financial statements: Yes (Obligation)
-
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."
○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. Quarterly Consolidated Financial Statements and Key Notes | 4 | |
(1) Quarterly consolidated balance sheet | 4 | |
(2) | Quarterly consolidated profit and loss statement and comprehensive income statement | 6 |
(3) | Notes to quarterly consolidated financial statements | 8 |
(Notes to assumption of a going concern) | 8 | |
(Notes to significant changes in shareholders' equity) | 8 | |
(Adoption of specific accounting policies for quarterly consolidated financial statements) | 8 | |
(Changes in accounting policies) | 8 | |
(Segment information, etc.) | 9 | |
(Notes to the cash flow statement) | 10 |
―1―
1. Overview of Business Results
(1) Summary of operating results
While the global economy persistently showed signs of a moderate recovery during the current quarterly 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 new 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 4.4% to ¥134,819 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 84.0% to ¥162 million year-on-year due to one-time quality costs in the U.S. and the decrease in production volume in Japan and Asia, despite efforts to streamline operations. Ordinary income recorded a loss of ¥1,748 million, down ¥2,543 million year-on-year. Net income attributable to owners of the parent decreased by ¥5,406 million to a loss of ¥5,389 million compared to the same period of the previous fiscal year, primarily due to the recording an impairment loss of ¥2,377 million as a special loss for the fixed assets of the companies in the Americas and Asia segments, whose accounts are closed in March, after considering the recoverability in the future.
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 quarterly period (from January to September) was ¥151.45 per US dollar, compared to ¥138.23 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 3.8% year-on-year to ¥45,106 million, primarily due to a decline in production volume. Operating income decreased 64.3% year-on-year to ¥1,647 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 18.6% year-on-year to ¥66,657 million, primarily due to the new model impact and the benefit of yen depreciation, despite the decreased production volume. Operating loss increased ¥323 million, amounting to ¥1,215 million compared to the same period of the previous year, primarily due to one-time quality costs incurred in the USA, despite new model effects.
(3) Asia
Net sales decreased 14.3% year-on-year to ¥29,253 million, primarily due to a decreased production volume in China, despite the positive impact of yen depreciation. Operating loss improved by ¥780 million year-on-year to ¥373 million.
-
Summary of financial position (Assets Section)
Current assets increased by ¥4,096 million to ¥79,469 million compared to the end of the previous consolidated fiscal year. This increase was primarily due to a ¥1,731 million increase in "cash and deposits", and a ¥1,375 million increase in "work in process" and ¥2,659 million in "other current assets", despite a decrease of ¥2,403 million in "finished goods".
Non-current assets decreased by ¥4,043 million to ¥62,840 million compared to the end of the previous consolidated fiscal year. This decrease was primarily attributable to decreases of ¥3,271 million in "construction in progress", ¥339 million in "other assets (net)", and ¥417 million in "investments and other assets".
As a result, total assets increased by ¥52 million to ¥142,310 million compared to the end of the previous consolidated fiscal year.
(Liabilities Section)
Current liabilities decreased by ¥5,347 million to ¥44,467 million compared to the end of the previous consolidated fiscal year. This was primarily due to decreases of ¥5,229 million in "short-term borrowings" and ¥854 million in "long-term borrowings due within one year", despite increases of ¥370 million in "notes and accounts payable" and ¥1,190 million in "other current liabilities".
Non-current liabilities increased by ¥12,786 million to ¥29,735 million compared to the end of the previous consolidated fiscal year. This was mainly attributable to increases of ¥8,840 million in "long-term borrowings" and ¥3,929 million in "other non- current liabilities".
As a result, total liabilities increased by ¥7,438 million to ¥74,203 million compared to the end of the previous consolidated fiscal year.
(Net Assets Section)
Total equity decreased by ¥7,385 million to ¥68,107 million compared to the end of the previous consolidated fiscal year. This was primarily due to decreases of ¥6,167 million in "retained earnings", ¥889 million in "foreign currency translation adjustment", and ¥444 million in "unrealized gain on other securities".
―2―
- Future outlook
The full-year Performance Forecast has no change from what was disclosed in our "Consolidated Financial Results for the Second Quarter (Interim Period) of the Fiscal Year Ending March 2025 [Japanese GAAP]" released on January 17, 2025.
―3―
2．Quarterly Consolidated Financial Statements and Key Notes
(1) Quarterly consolidated balance sheet
(Millions of yen) | |||
Previous fiscal year | Current third quarter | ||
As of March 31, 2024 | As of December 31, 2024 | ||
Assets | |||
Current assets | |||
Cash on hand and in banks | 22,287 | 24,018 | |
Trade notes and accounts receivable | 28,693 | 28,837 | |
Electronically recorded obligations | 2,154 | 3,157 | |
Finished goods | 5,223 | 2,819 | |
Raw materials and supplies | 1,211 | 1,311 | |
Parts and etc. | 4,370 | 3,860 | |
Work in process | 5,742 | 7,117 | |
Other | 6,270 | 8,930 | |
Allowance for doubtful accounts | (580) | (583) | |
Total current assets | 75,373 | 79,469 | |
Fixed assets | |||
Property, plant and equipment | |||
Buildings and structures, net | 19,328 | 19,381 | |
Machinery, equipment and vehicles, net | 22,260 | 22,251 | |
Construction in progress | 6,533 | 3,261 | |
Other, net | 6,651 | 6,311 | |
Total property, plant and equipment | 54,773 | 51,205 | |
Intangible fixed assets | 206 | 148 | |
Investments and other assets | 11,903 | 11,485 | |
Total fixed assets | 66,884 | 62,840 | |
Total assets | 142,257 | 142,310 | |
―4―
(Millions of yen) | ||||
Previous fiscal year | Current third quarter | |||
As of March 31, 2024 | As of December 31, 2024 | |||
Liabilities | ||||
Current liabilities | ||||
Trade notes and accounts payable | 14,838 | 15,209 | ||
Electronically recorded obligations | 3,174 | 2,091 | ||
Short-term borrowings | 12,986 | 7,756 | ||
Current portion of long-term borrowings | 6,065 | 5,211 | ||
Accounts payable - other | 1,545 | 1,953 | ||
Accrued income tax payable | 803 | 499 | ||
Bonus payable | 1,362 | 1,539 | ||
Provision for directors' bonuses | 92 | 70 | ||
Other current liabilities | 8,945 | 10,136 | ||
Total current liabilities | 49,815 | 44,467 | ||
Long-term liabilities | ||||
Long-term borrowings | 14,210 | 23,051 | ||
Retirement benefit liabilities | 885 | 901 | ||
Other non-current liabilities | 1,852 | 5,782 | ||
Total non-current liabilities | 16,949 | 29,735 | ||
Total liabilities | 66,764 | 74,203 | ||
Net assets | ||||
Shareholders' equity | ||||
Capital stock | 6,200 | 6,200 | ||
Capital surplus | 9,372 | 9,323 | ||
Retained earnings | 43,957 | 37,789 | ||
Treasury stock | (1,136) | (889) | ||
Total shareholders' equity | 58,394 | 52,423 | ||
Accumulated other comprehensive income | ||||
Unrealized holding gain and loss on securities | 4,113 | 3,669 | ||
Foreign currency translation adjustment | 3,731 | 2,842 | ||
Retirement benefit adjustments | (169) | (123) | ||
Total accumulated other comprehensive income | 7,676 | 6,388 | ||
Stock option | 599 | 517 | ||
Non-controlling interests | 8,822 | 8,777 | ||
Total equity | 75,493 | 68,107 | ||
Total liabilities and equity | 142,257 | 142,310 | ||
―5―
- Quarterly consolidated profit and loss statement and consolidated comprehensive income statement
Quarterly consolidated profit and loss statement
(Millions of yen)
Previous third quarter (From April 1, 2023 to December 31, 2023)
Current third quarter (From April 1, 2024 to December 31, 2024)
Net sales | 129,115 | 134,819 | |
Cost of sales | 117,288 | 122,245 | |
Gross profit | 11,826 | 12,574 | |
Selling, general and administrative expenses | 10,811 | 12,411 | |
Operating income | 1,015 | 162 | |
Non-operating income | |||
Interest income | 276 | 279 | |
Dividends income | 199 | 232 | |
Derivative valuation gains | － | 422 | |
Miscellaneous income | 271 | 56 | |
Total non-operating income | 747 | 990 | |
Non-operating expenses | |||
Interest expense | 558 | 691 | |
Exchange loss | － | 1,919 | |
Miscellaneous expenses | 408 | 290 | |
Total non-operating expenses | 967 | 2,901 | |
Operating profit or loss | 795 | (1,748) | |
Extraordinary Income | |||
Gain on sale of fixed assets | 8 | 27 | |
Gain on sale of investment securities | － | 10 | |
Other | 4 | 0 | |
Total extraordinary income | 13 | 37 | |
Extraordinary loss | |||
Impairment loss | － | 2,377 | |
Loss on disposal of fixed assets | 59 | 24 | |
Miscellaneous expenses | 2 | 74 | |
Total extraordinary loss | 61 | 2,475 | |
Profit (loss) before income taxes | 747 | (4,186) | |
Income taxes | 1,402 | 1,301 | |
Net profit (loss) for the fiscal Period | (655) | (5,487) | |
Net profit (loss) attributable to non-controlling interests | (673) | (98) | |
Net profit (loss) attributable to parent company | 17 | (5,389) | |
shareholders | |||
―6―
Quarterly consolidated comprehensive income statement
(Millions of yen)
Previous third quarter (From April 1, 2023 to December 31, 2023)
Current third quarter (From April 1, 2024 to December 31, 2024)
Net income (loss)
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
(655) | (5,487) |
988 | (444) |
6,822 | (811) |
(166) | 54 |
7,644 | (1,202) |
6,988 | (6,689) |
6,477 | (6,677) |
511 | (12) |
―7―
- Notes to quarterly consolidated financial statements
(Notes to assumption of a going concern)
None
(Notes to significant changes in shareholders' equity) None
(Adoption of specific accounting policies for quarterly consolidated financial statements) (Calculation of tax expense)
Tax expenses are reasonably estimated using the effective tax rate after applying tax effect accounting to the pre-tax net income for the consolidated fiscal year, including the current quarterly consolidated period, and are calculated by multiplying the estimated effective tax rate by the pre-tax net income for the quarterly period.
However, if using this estimated effective tax rate to calculate tax expenses results in significantly unreasonable outcomes, the statutory effective tax rate is applied as an alternative method.
(Changes in accounting policies)
(Application of "Accounting Standards for Corporate Tax, Inhabitant Tax, and Enterprise Tax, etc.")
The "Accounting Standards for Corporate Tax, Inhabitant Tax, and Enterprise Tax, etc." (Enterprise Accounting Standard No. 27, issued on October 28, 2022; hereinafter the "2022 Revised Accounting Standard") has been applied from the beginning of the first quarterly consolidated accounting period.
Regarding the amendment concerning the classification of recognition for corporate taxes (taxation on other comprehensive income), the transitional treatment stipulated in Paragraph 20-3 of the 2022 Revised Accounting Standard and the transitional treatment specified in Paragraph 65-2 (2) of the "Guidance on Accounting Standards for Tax Effect Accounting" (Implementation Guidance of Accounting Standards No. 28, dated October 28, 2022; hereinafter referred to as the "2022 Revised Implementation Guidance") have been followed. This has no impact on the current quarterly consolidated financial statements.
Furthermore, regarding the revision related to the treatment in the consolidated financial statements where gains or losses arising from the sale of subsidiary shares between consolidated companies are deferred for tax purposes, the 2022 Revised Implementation Guidance has also been applied from the beginning of the first quarterly consolidated accounting period. This change in accounting policy is applied retrospectively, and the previous quarterly consolidated financial statements and the consolidated financial statements for the previous year have been restated accordingly. There is no impact on the quarterly consolidated financial statements for the previous year's quarterly consolidated period or on the consolidated financial statements for the previous consolidated fiscal year.
―8―