CTS : Summary of Consolidated Financial Results for the Year Ended March 31, 2021 (Based on Japanese GAAP)

Translation

Notice: This document is an excerpt translation of the original Japanese document and is only for reference purposes. In the event of any discrepancy between this translated document and the original Japanese document, the latter shall prevail.

Summary of Consolidated Financial Results

for the Year Ended March 31, 2021

(Based on Japanese GAAP)

																		April 30, 2021
Company name:	CTS Co., Ltd.
Stock exchange listing:	Tokyo
Stock code:	4345	URL http://www.cts-h.co.jp
Representative:	Representative Director and President		Taizo Yokoshima
Inquiries:	Operating Officer Accounting & Finance	Makio Kitahara	TEL [phone]
Manager
Scheduled date of ordinary general meeting of shareholders:		June 18, 2021
Scheduled date to file Securities Report:			June 18, 2021
Scheduled date to commence dividend payments:			June 1, 2021
Preparation of supplementary material on financial results:			Yes
Holding of financial results meeting:						Yes	(for institutional investors and analysts)
											(Amounts less than one million yen are rounded down)
1. Consolidated financial results for the year ended March 31, 2021 (from April 1, 2020 to March 31, 2021)
(1) Consolidated operating results												Percentages indicate year-on-year changes
		Net sales			Operating profit	Ordinary profit	Profit attributable to
				owners of parent
		Millions of yen		%		Millions of yen		%	Millions of yen	%	Millions of yen		%
Year ended March 31, 2021	9,968		8.7		2,228		20.3		2,127	17.0	1,456		16.7
Year ended March 31, 2020	9,172		6.5		1,852		16.5		1,818	16.6	1,248		17.1
		Earnings per share	Diluted earnings per	Profit attributable to		Ordinary profit/total	Operating profit/net
				share			owners of				assets			sales
									parent/equity
			Yen			Yen				%					%				%
Year ended March 31, 2021	34.14				-				17.5					17.1				22.4
Year ended March 31, 2020	29.24				-				16.7					15.3				20.2
(2) Consolidated financial position
		Total assets			Net assets		Equity ratio	Net assets per share
		Millions of yen		Millions of yen					%					Yen
As of March 31, 2021		13,115						8,789					67.0					205.94
As of March 31, 2020		11,720						7,842					66.9					183.75
(3) Consolidated cash flows
		Cash flows from		Cash flows from	Cash flows from	Cash and cash equivalents
		operating activities		investing activities	financing activities		at end of period
		Millions of yen		Millions of yen	Millions of yen		Millions of yen
Year ended March 31, 2021	2,328						(377)					(1,271)					6,216
Year ended March 31, 2020	1,973						(420)					(2,259)					5,536
2. Cash dividends
					Annual dividends per share					Total cash	Dividend payout	Ratio of dividends
															to net assets
		1st quarter-end	2nd quarter-end	3rd quarter-end	Fiscal year-end	Total			dividends (Total)	ratio (Consolidated)	(Consolidated)
		Yen		Yen		Yen				Yen	Yen	Millions of yen	%			%
Year ended March 31, 2020	-		6.00		-				6.20	12.20		520	41.7			7.0
Year ended March 31, 2021	-		6.00		-				8.00	14.00		597	41.0			7.2
Year ending March 31, 2022	-			7.00		-				8.00	15.00			40.0
(Forecast)

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3. Forecast of consolidated financial results for the year ending March 31, 2022 (from April 1, 2021 to March 31, 2022)

Percentages indicate year-on-year changes

	Net sales		Operating profit		Ordinary profit			Profit attributable to	Earnings per share
					owners of parent
Six months ending	Millions of yen	%	Millions of yen		%	Millions of yen		%	Millions of yen		%	Yen
5,000	2.8	1,050		4.2	1,000		4.0		700		8.1	16.40
September 30, 2021
Full year	10,600	6.3	2,400		7.7	2,300		8.1		1,600		9.8	37.50
4. Notes
(1) Changes in significant subsidiaries during the year ended March 31, 2021			No
(changes in specified subsidiaries resulting in the change in scope of consolidation):
(2) Changes in accounting policies, changes in accounting estimates, and restatement of prior period financial statements
Changes in accounting policies due to revisions to accounting standards and other regulations:	No
Changes in accounting policies due to other reasons:						No
Changes in accounting estimates:									No
Restatement of prior period financial statements:						No

(3) Number of issued shares (common shares)

Total number of issued shares at the end of the period (including treasury shares)

	As of March 31, 2021	43,400,000	shares	As of March 31, 2020	43,400,000	shares
Number of treasury shares at the end of the period
	As of March 31, 2021	720,845	shares	As of March 31, 2020	720,845	shares
Average number of shares during the period
	Year ended March 31, 2021	42,679,155	shares	Year ended March 31, 2020	42,679,155	shares

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Consolidated financial statements

Consolidated balance sheets

			(Millions of yen)
		As of March 31, 2020	As of March 31, 2021
Assets
Current assets
Cash and deposits	5,536	6,216
Notes and accounts receivable - trade	1,630	1,693
Inventories	427	460
Other	233	196
Allowance for doubtful accounts	(6)	(4)
Total current assets	7,822	8,563
Non-current assets
Property, plant and equipment
Property for rental	858	868
Accumulated depreciation	(832)	(837)
Property for rental, net	26	31
Buildings and structures	942	1,210
Accumulated depreciation	(451)	(478)
Buildings and structures, net	490	732
Land	949	1,022
Leased assets	3,733	3,738
Accumulated depreciation	(1,849)	(1,462)
Leased assets, net	1,883	2,275
Other	260	265
Accumulated depreciation	(240)	(249)
Other, net	19	16
Total property, plant and equipment	3,370	4,078
Intangible assets	52	53
Investments and other assets
Other	476	422
Allowance for doubtful accounts	(1)	(1)
Total investments and other assets	475	420
Total non-current assets	3,898	4,552
Total assets		11,720	13,115

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			(Millions of yen)
		As of March 31, 2020	As of March 31, 2021
Liabilities
Current liabilities
Notes and accounts payable - trade	464	499
Electronically recorded obligations - operating	569	559
Lease obligations	690	730
Income taxes payable	361	378
Other	400	371
Total current liabilities	2,487	2,539
Non-current liabilities
Lease obligations	1,216	1,570
Other	173	215
Total non-current liabilities	1,390	1,786
Total liabilities	3,878	4,326
Net assets
Shareholders' equity
Share capital	425	425
Capital surplus	2,399	2,399
Retained earnings	5,457	6,393
Treasury shares	(460)	(460)
Total shareholders' equity	7,821	8,758
Accumulated other comprehensive income
Valuation difference on available-for-sale securities	20	31
Total accumulated other comprehensive income	20	31
Total net assets	7,842	8,789
Total liabilities and net assets		11,720	13,115

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Consolidated statements of income and consolidated statements of comprehensive income Consolidated statements of income

			(Millions of yen)
	Fiscal year ended		Fiscal year ended
	March 31, 2020		March 31, 2021
Net sales	9,172	9,968
Cost of sales		5,036	5,288
Gross profit		4,136	4,679
Selling, general and administrative expenses		2,283	2,451
Operating profit		1,852	2,228
Non-operating income
Dividend income	1	1
Rental income from land and buildings	2	2
Insurance claim income	13	1
Other		3	3
Total non-operating income		20	8
Non-operating expenses
Interest expenses	37	43
Share of loss of entities accounted for using equity method		17	66
Total non-operating expenses		54	109
Ordinary profit		1,818	2,127
Extraordinary income
Gain on sale of investment securities		9	14
Total extraordinary income		9	14
Profit before income taxes		1,827	2,141
Income taxes - current	583	692
Income taxes - deferred		(3)	(7)
Total income taxes		579	684
Profit		1,248	1,456
Profit attributable to owners of parent		1,248	1,456

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Consolidated statements of comprehensive income

		(Millions of yen)
	Fiscal year ended	Fiscal year ended
	March 31, 2020	March 31, 2021
Profit	1,248	1,456
Other comprehensive income
Valuation difference on available-for-sale securities	(14)	10
Total other comprehensive income	(14)	10
Comprehensive income	1,233	1,467
Comprehensive income attributable to
Comprehensive income attributable to owners of parent	1,233	1,467
Comprehensive income attributable to non-controlling	-	-
interests

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Consolidated statements of changes in equity

Fiscal year ended March 31, 2020

								(Millions of yen)
		Shareholders' equity			Accumulated other
				comprehensive income
							Valuation	Total	Total net
						Total	accumulated
			Retained		Treasury	difference on	assets
	Share capital	Capital surplus		shareholders'	other
	earnings		shares	available-for-
				equity	comprehensive
						sale securities
								income
Balance at beginning of	425	2,399	4,721		(460)	7,085	34	34	7,120
period
Changes during period
Dividends of surplus			(512)			(512)			(512)
Profit attributable to			1,248			1,248			1,248
owners of parent
Net changes in items
other than shareholders'							(14)	(14)	(14)
equity
Total changes during	-	-	735		-	735	(14)	(14)	721
period
Balance at end of period	425	2,399	5,457		(460)	7,821	20	20	7,842

Fiscal year ended March 31, 2021

								(Millions of yen)
		Shareholders' equity			Accumulated other
				comprehensive income
							Valuation	Total	Total net
						Total	accumulated
			Retained		Treasury	difference on	assets
	Share capital	Capital surplus		shareholders'	other
	earnings		shares	available-for-
				equity	comprehensive
						sale securities
								income
Balance at beginning of	425	2,399	5,457		(460)	7,821	20	20	7,842
period
Changes during period
Dividends of surplus			(520)			(520)			(520)
Profit attributable to			1,456			1,456			1,456
owners of parent
Net changes in items
other than shareholders'							10	10	10
equity
Total changes during	-	-	936		-	936	10	10	947
period
Balance at end of period	425	2,399	6,393		(460)	8,758	31	31	8,789

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Consolidated statements of cash flows

			(Millions of yen)
		Fiscal year ended	Fiscal year ended
		March 31, 2020	March 31, 2021
Cash flows from operating activities
Profit before income taxes	1,827	2,141
Depreciation	817	836
Increase (decrease) in allowance for doubtful accounts	(1)	(2)
Interest and dividend income	(1)	(1)
Interest expenses	37	43
Loss (gain) on sale of investment securities	(9)	(14)
Share of loss (profit) of entities accounted for using equity	17	66
method
Decrease (increase) in trade receivables	(89)	(60)
Decrease (increase) in inventories	336	(32)
Increase (decrease) in trade payables	(572)	24
Other, net	153	68
Subtotal	2,515	3,070
Interest and dividends received	1	1
Interest paid	(37)	(43)
Income taxes paid	(505)	(698)
Net cash provided by (used in) operating activities	1,973	2,328
Cash flows from investing activities
Purchase of property, plant and equipment	(56)	(375)
Purchase of intangible assets	(29)	(23)
Proceeds from sale of investment securities	25	17
Purchase of shares of subsidiaries and associates	(348)	-
Other, net	(11)	3
Net cash provided by (used in) investing activities	(420)	(377)
Cash flows from financing activities
Repayments of long-term borrowings	(1,000)	-
Repayments of lease obligations	(748)	(751)
Dividends paid	(511)	(520)
Net cash provided by (used in) financing activities	(2,259)	(1,271)
Net increase (decrease) in cash and cash equivalents	(706)	680
Cash and cash equivalents at beginning of period	6,243	5,536
Cash and cash equivalents at end of period		5,536	6,216

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