USS : FY3/2024 Consolidated Financial Results（62.5 KB）

Consolidated Financial Results for the Fiscal Year ended March 31, 2024

May 8, 2024

Name of Company:

USS Co., Ltd.

Stock Exchanges Listing:

Tokyo Stock Exchange, Nagoya Stock Exchange

Stock Code:

4732

URL:

https://www.ussnet.co.jp/en/

Representative:

Title:

Chairman and Representative

Name:

Yukihiro Ando

Director

Contact Person:

Title:

Executive Vice President and

Name:

Masafumi Yamanaka

Officer of Supervisory Office

Tel:

[phone]

Scheduled date of annual general meeting of shareholders

June 25, 2024

Scheduled date of commencement of dividend payment

June 26, 2024

Scheduled date of filing of securities report

June 26, 2024

Supplementary materials for financial results

Yes

Information meeting for financial results

Yes (For institutional investors and securities analysts)

1.

Consolidated Financial Results for the Fiscal Year ended March 31, 2024 (April 1, 2023 - March 31, 2024)

(1)

Consolidated Operating Results

(Percentage figures represent year on year changes)

Net sales

Operating profit

Ordinary profit

Million yen

%

Million yen

%

Million yen

%

Year ended March 31, 2024

97,606

9.9

48,937

11.8

49,654

11.6

Year ended March 31, 2023

88,778

9.0

43,778

5.3

44,491

5.0

Profit attributable to

Profit

Diluted profit

owners of parent

per share

per share

Million yen

%

Yen

Yen

Year ended March 31, 2024

32,906

9.7

68.28

68.10

Year ended March 31, 2023

30,008

0.9

61.34

61.23

Note: 1. Comprehensive income (million

yen): Year ended March 31, 2024 : 33,262

9.2%

Year ended March 31, 2023 : 30,458

－2.3%

2. There was a 2-for-1 stock split on April 1, 2024. Profit per share and diluted profit per share are based on the number of shares if this stock split was instead at the beginning of previous fiscal year.

	ROE(%)		ROA(%)	Operating margin(%)
Year ended March 31, 2024		17.0	19.3	50.1
Year ended March 31, 2023		16.2	18.9	49.3

(2) Consolidated Financial Position

	Total assets	Net assets	Equity ratio		Net assets per share
	(Million yen)	(Million yen)	(%)		(Yen)
As of March 31, 2024	271,557	199,021		72.0	407.09
As of March 31, 2023	242,352	194,154		78.8	390.45

Note: 1. Equity capital (million yen): As of March 31, 2024 : 195,558

As of March 31, 2023 : 190,997

1. 2. There was a 2-for-1 stock split on April 1, 2024. Net assets per share is based on the number of shares if this stock split was instead at the beginning of previous fiscal year.

2. Consolidated Statement of Cash Flows

	Cash flows from	Cash flows from	Cash flows from	Cash and cash
	equivalents at end
	operating activities	investing activities	financing activities
	of period
	(Million yen)	(Million yen)	(Million yen)
	(Million yen)
Year ended March 31, 2024	47,150	(2,646)	(28,187)	102,509
Year ended March 31, 2023	36,907	(9,074)	(17,121)	86,192

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2. Dividends

		Dividend per share (Yen)			Dividend	Dividend rate
	First	Second	Third	Fiscal		Total dividends	payout ratio	for net assets
	quarter	quarter	quarter	year	Total	(Million yen)	(consolidated)	(consolidated)
	- end	- end	- end	- end			(%)	(%)
Year ended	-	33.70	-	33.80	67.50	16,512	55.0	8.9
March 31, 2023
Year ended	-	34.70	-	40.70	75.40	18,115	55.1	9.5
March 31, 2024
Year ending
March 31,	-	20.10	-	20.10	40.20		55.2
2025(Forecast)

Notes: 1. Total dividends paid for the fiscal year ended in March 2023 and for the fiscal year ended in March 2024 include payments of 5 million yen and 24 million yen each for shares held by the USS employee stock ownership plan trust.

1. Dividend payout ratio (consolidated) is calculated by dividing total dividends paid by profit attributable to owners of parent.
2. There was a 2-for-1 stock split on April 1, 2024. The dividend for the fiscal year ending on March 31, 2025(Forecast), reflects this stock split and the dividends for the fiscal years that ended in March 2023 and 2024 are the actual dividends without reflecting this stock split.

3. Forecast of Consolidated Financial Results for the Fiscal Year ending March 31, 2025 (April 1, 2024 - March 31, 2025)

(Percentage figures represent year on year changes)

	Net sales		Operating profit	Ordinary profit	Profit attributable to	Profit per share
		owners of parent
	Million yen		%	Million yen	%	Million yen	%	Million yen	%	Yen
First half	49,750		3.4	24,900	4.7	25,250	4.6	16,900	4.6	35.18
For the year	101,900		4.4	51,500	5.2	52,200	5.1	35,000	6.4	72.85

Note: There was a 2-for-1 stock split on April 1, 2024. The consolidated profit per share forecast for the fiscal year ending on March 31, 2025, reflects this stock split.

* Notes

1. Changes in significant subsidiaries (Changes in specific subsidiaries accompanied by changes in the scope of consolidation): None
2. Changes in accounting principles, estimates and retrospective restatement

1)	Changes due to revision of accounting standards: None
2)	Changes other than in 1)	: None
3)	Changes in accounting estimates	: None
4)	Retrospective restatement	: None

1. Number of shares outstanding (common shares)
2. 1. Shares outstanding (including treasury shares)

	As of March 31, 2024	: 514,000,000 shares
	As of March 31, 2023	: 514,000,000 shares
2)	Treasury shares
	As of March 31, 2024	:	33,626,010 shares
	As of March 31, 2023	:	24,828,172 shares
3)	Average number of shares
	As of March 31, 2024	: 481,916,335 shares
	As of March 31, 2023	: 489,166,904 shares

2

Notes: 1. There was a 2-for-1 stock split on April 1, 2024. Shares outstanding (including treasury shares), treasury shares, and average number of shares used for per-share figures represent the number of shares that would have existed if this stock split had occurred at the beginning of the previous fiscal year.

• 2. Treasury shares includes 574,300 shares as of March 31, 2024 and 82,200 shares as of March 31, 2023 held by the USS employee stock ownership plan trust.

• This financial results is not subject to the audit procedure.
• Cautionary statement regarding forecasts of operating results and special notes

(Note regarding the forward-looking statements)

Forward-looking statements in these materials are based on information available to management at the time this

report was prepared and assumptions that management believes are reasonable. These statements are not promises by the Company regarding future performance. Actual results may differ significantly from these statements for a number of reasons.

(Supplementary explanatory documents)

Supplementary explanatory documents will be posted on the Company's website on May 9, 2024.

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4.	Consolidated Financial Statements		(Million yen)
(1)	Consolidated Balance Sheet
		FY 2022	FY 2023
		(As of March 31, 2023)	(As of March 31, 2024)
Assets
Current assets
	Cash and deposits	92,692	109,009
	Receivables due from member dealers at auction	13,314	24,519
	Notes and accounts receivable-trade, and contract assets	2,982	2,710
	Securities	3,000	3,000
	Inventories	1,843	1,651
	Prepaid expenses	163	182
	Other	2,096	7,422
	Allowance for doubtful accounts	(35)	(124)
	Total current assets	116,057	148,371
Non-current assets
	Property, plant and equipment
	Buildings and structures, net	34,313	32,680
	Machinery, equipment and vehicles, net	653	715
	Tools, furniture and fixtures, net	1,800	1,559
	Land	63,577	63,577
	Leased assets, net	132	135
	Construction in progress	126	327
	Total property, plant and equipment	100,604	98,996
	Intangible assets
	Goodwill	7,826	7,287
	Other	5,718	5,499
	Total intangible assets	13,545	12,786
	Investments and other assets
	Investment securities	2,530	1,112
	Long-term loans receivable	29	23
	Long-term prepaid expenses	270	205
	Deferred tax assets	1,097	1,856
	Deferred tax assets for land revaluation	2,456	2,456
	Investment property, net	4,225	4,204
	Other	1,678	1,735
	Allowance for doubtful accounts	(143)	(191)
	Total investments and other assets	12,144	11,402
	Total non-current assets	126,295	123,186
Total assets	242,352	271,557

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		(Million yen)
	FY 2022	FY 2023
	(As of March 31, 2023)	(As of March 31, 2024)
Liabilities
Current liabilities
Payables due to member dealers at auction	22,595	43,749
Notes and accounts payable-trade	855	991
Short-term borrowings	340	150
Current portion of long-term borrowings	220	220
Lease liabilities	34	55
Income taxes payable	7,864	9,128
Deposits received	2,099	2,569
Provision for bonuses	824	915
Provision for bonuses for directors (and other officers)	65	95
Other	4,374	5,253
Total current liabilities	39,273	63,130
Non-current liabilities
Long-term borrowings	1,794	2,215
Lease liabilities	31	24
Long-term accounts payable-other	210	183
Provision for share-based payments	40	99
Retirement benefit liability	927	974
Long-term guarantee deposits	4,916	4,893
Asset retirement obligations	633	642
Other	370	370
Total non-current liabilities	8,925	9,404
Total liabilities	48,198	72,535
Net assets
Shareholders' equity
Share capital	18,881	18,881
Capital surplus	8,992	8,992
Retained earnings	180,137	196,225
Treasury shares	(12,034)	(23,298)
Total shareholders' equity	195,976	200,800
Accumulated other comprehensive income
Valuation difference on available-for-sale securities	660	370
Revaluation reserve for land	(5,636)	(5,636)
Remeasurements of defined benefit plans	(3)	23
Total accumulated other comprehensive income	(4,979)	(5,242)
Share acquisition rights	457	442
Non-controlling interests	2,699	3,021
Total net assets	194,154	199,021
Total liabilities and net assets	242,352	271,557

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(2) Consolidated Statements of Income and Consolidated Statements of Comprehensive Income

(Consolidated Statements of Income)		(Million yen)
	FY 2022	FY 2023
	(April 1, 2022 to	(April 1, 2023 to
	March 31, 2023)	March 31, 2024)
Net sales	88,778	97,606
Cost of sales	35,135	38,571
Gross profit	53,642	59,034
Selling, general and administrative expenses	9,864	10,097
Operating profit	43,778	48,937
Non-operating income
Interest income	8	12
Rental income from real estate	696	700
Miscellaneous income	210	209
Total non-operating income	915	922
Non-operating expenses
Interest expenses	11	10
Rental costs on real estate	172	180
Miscellaneous losses	17	15
Total non-operating expenses	201	205
Ordinary profit	44,491	49,654
Extraordinary income
Gain on sale of non-current assets	68	72
Other	3	2
Total extraordinary income	72	74
Extraordinary losses
Loss on sale of non-current assets	-	0
Loss on retirement of non-current assets	22	68
Loss on valuation of investment securities	-	1,001
Loss on cancellation of rental contracts	27	1
Loss on disaster	12	-
Other	0	-
Total extraordinary losses	62	1,071
Profit before income taxes	44,501	48,658
Income taxes-current	13,924	15,777
Income taxes-deferred	(140)	(644)
Income taxes	13,784	15,133
Profit	30,717	33,525
Profit attributable to non-controlling interests	708	618
Profit attributable to owners of parent	30,008	32,906

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(Consolidated Statement of Comprehensive Income)		(Million yen)
	FY 2022	FY 2023
	(April 1, 2022 to	(April 1, 2023 to
	March 31, 2023)	March 31, 2024)
Profit	30,717	33,525
Other comprehensive income
Valuation difference on available-for-sale securities	(270)	(290)
Remeasurements of defined benefit plans, net of tax	10	27
Total other comprehensive income	(259)	(263)
Comprehensive income	30,458	33,262
(Comprehensive income attributable to)
Comprehensive income attributable to owners of parent	29,749	32,643
Comprehensive income attributable to non-controlling	708	618
interests

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(3) Consolidated Statement of Changes in Equity

Fiscal Year ended March 31, 2023 (April 1, 2022 - March 31, 2023)

													(Million yen)
					Shareholders' equity
	Share capital		Capital surplus		Retained	Treasury shares			Total
			shareholders'
			earnings
												equity
Balance at beginning of period	18,881			18,915		211,843		(65,039)			184,600
Changes during period
Dividends of surplus							(17,323)						(17,323)
Profit attributable to							30,008						30,008
owners of parent
Purchase of treasury shares										(1,632)			(1,632)
Disposal of treasury shares					23					299			322
Cancellation of treasury shares					(54,337)					54,337			-
Transfer from retained earnings					44,391		(44,391)						-
to capital surplus
Net changes in items other
than shareholders' equity
Total changes during period		-			(9,922)		(31,705)		53,004			11,376
Balance at end of period	18,881			8,992		180,137		(12,034)			195,976
	Accumulated other comprehensive income
	Valuation						Total		Share		Non-controlling
	Revaluation	Remeasurements	accumulated
		acquisition		Total net assets
	difference	reserve for	of defined	other			interests
	on available-for-		rights
		land	benefit plans	comprehensive
	sale securities
						income
Balance at beginning of period	930		(5,636)	(14)	(4,719)		457		2,136		182,473
Changes during period
Dividends of surplus														(17,323)
Profit attributable to														30,008
owners of parent
Purchase of treasury shares														(1,632)
Disposal of treasury shares														322
Cancellation of treasury shares														-
Transfer from retained earnings														-
to capital surplus
Net changes in items other	(270)		-	10	(259)		-			563		303
than shareholders' equity
Total changes during period	(270)		-	10	(259)		-			563		11,680
Balance at end of period	660		(5,636)	(3)	(4,979)		457		2,699		194,154

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Fiscal Year ended March 31, 2024 (April 1, 2023 - March 31, 2024)

												(Million yen)
					Shareholders' equity
	Share capital		Capital surplus		Retained	Treasury shares			Total
			shareholders'
			earnings
											equity
Balance at beginning of period	18,881			8,992		180,137	(12,034)			195,976
Changes during period
Dividends of surplus							(16,596)					(16,596)
Profit attributable to							32,906					32,906
owners of parent
Purchase of treasury shares									(12,698)			(12,698)
Disposal of treasury shares					(221)					1,434			1,212
Cancellation of treasury shares													-
Transfer from retained earnings					221		(221)					-
to capital surplus
Net changes in items other
than shareholders' equity
Total changes during period		-			-		16,087	(11,263)			4,824
Balance at end of period	18,881			8,992		196,225	(23,298)			200,800
	Accumulated other comprehensive income
	Valuation						Total		Share	Non-controlling
	Revaluation	Remeasurements	accumulated
		acquisition	Total net assets
	difference	reserve for	of defined	other		interests
	on available-for-		rights
		land	benefit plans	comprehensive
	sale securities
						income
Balance at beginning of period	660		(5,636)	(3)	(4,979)		457	2,699		194,154
Changes during period
Dividends of surplus													(16,596)
Profit attributable to													32,906
owners of parent
Purchase of treasury shares													(12,698)
Disposal of treasury shares													1,212
Cancellation of treasury shares													-
Transfer from retained earnings													-
to capital surplus
Net changes in items other	(290)		-	27	(263)		(14)		321		43
than shareholders' equity
Total changes during period	(290)		-	27	(263)		(14)		321		4,867
Balance at end of period	370		(5,636)	23	(5,242)		442	3,021		199,021

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(4) Consolidated Statement of Cash Flows		(Million yen)
	FY 2022	FY 2023
	(April 1, 2022 to	(April 1, 2023 to
	March 31, 2023)	March 31, 2024)
Cash flows from operating activities
Profit before income taxes	44,501	48,658
Depreciation and amortization	4,754	4,706
Amortization of goodwill	539	539
Increase (decrease) in allowance for doubtful accounts	53	136
Increase (decrease) in provision for bonuses	41	90
Increase (decrease) in provision for bonuses for directors	65	30
(and other officers)
Increase (decrease) in retirement benefit liability	71	85
Decrease (increase) in retirement benefit asset	43	-
Increase (decrease) in provision for share-based payments	40	58
Interest and dividend income	(48)	(47)
Interest expenses	11	10
Loss (gain) on valuation of investment securities	-	1,001
Loss (gain) on sale and retirement of property, plant and	(46)	(13)
equipment
Loss (gain) on sale and retirement of intangible assets	0	9
Net change in due from/to member dealers at auction	2,639	9,949
Decrease (increase) in trade receivables	(557)	271
Increase (decrease) in trade payables	156	136
Increase (decrease) in deposits received	45	470
Other, net	(1,635)	(4,628)
Subtotal	50,678	61,465
Interest and dividends received	57	58
Interest paid	(12)	(11)
Income taxes paid	(13,816)	(14,362)
Net cash provided by (used in) operating activities	36,907	47,150
Cash flows from investing activities
Net decrease (increase) in time deposits	(3,600)	-
Purchase of property, plant and equipment	(4,100)	(2,096)
Proceeds from sale of property, plant and equipment	79	87
Purchase of intangible assets	(466)	(569)
Purchase of investment securities	(1,001)	-
Other, net	14	(66)
Net cash provided by (used in) investing activities	(9,074)	(2,646)
Cash flows from financing activities
Net increase (decrease) in short-term borrowings	153	(190)
Proceeds from long-term borrowings	-	880
Repayments of long-term borrowings	(562)	(459)
Guarantee deposits received from member dealers	207	201
Refund of guarantee deposits received from member	(126)	(179)
dealers
Purchase of treasury shares	(1,632)	(12,697)
Proceeds from sale of treasury shares	333	1,194
Decrease (increase) in money trust to acquire treasury	2,026	-
stock
Dividends paid	(17,323)	(16,596)
Dividends paid to non-controlling interests	(111)	(297)
Repayments of finance lease liabilities	(51)	(42)
Other, net	(33)	0
Net cash provided by (used in) financing activities	(17,121)	(28,187)
Net increase (decrease) in cash and cash equivalents	10,711	16,317
Cash and cash equivalents at beginning of period	75,480	86,192
Cash and cash equivalents at end of period	86,192	102,509

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