Fuji Seal International : Flash Report for the Year Ended March 31, 2023 (based on Japan GAAP) (on a consolidated basis)

Flash Report for the Year Ended March 31, 2023

(based on Japan GAAP) (on a consolidated basis)

May 11, 2023

Name of the listed company: Fuji Seal International, Inc.

Code No.: 7864 Stock exchange: Tokyo

URL: http://www.fujiseal.com

Representative: Shigeko Okazaki, President and CEO

Contact: Akikazu Yada, Executive Officer in charge of Finance, CFO TEL [phone]

Scheduled date of annual shareholders' meeting: June 22, 2023

Scheduled date for submission of the Securities Report: June 22, 2023

Scheduled date for initiation of dividend payments: June 5, 2023

Prepared supplementary presentation material: Yes

Held results briefing: Yes (for securities analysts and institutional investors)

* All amounts are rounded down to the nearest million yen.

1. Consolidated Results for the Year Ended March 31, 2023 (April 1, 2022 to March 31, 2023)

(1) Operating results

(¥ million) (%: year on year change)

	Net sales
Year ended March 31, 2023	¥ 184,035	8.1%
Year ended March 31, 2022	170,321	4.1

Note: Comprehensive income

Year ended March 31, 2023: ¥12,966 million [41.2%]

Year ended March 31, 2022: ¥9,180 million [12.5%]

	Earnings per share (¥)
	Basic	Diluted
Year ended March 31, 2023	¥125.43	¥ －
Year ended March 31, 2022	111.70	－

Reference: Equity in earnings of affiliates

Year ended March 31, 2023: ¥ - million

Year ended March 31, 2023: ¥ - million

Operating income

¥8,194 (22.5)% 10,572 (14.9)

Return on equity

6.0%

5.8

Ordinary income	Net income attributable
to owners of the parent
¥8,426	(20.5)%	¥6,869	12.3%
10,600	(12.4)	6,117	(27.0)%
Ordinary income to	Operating income to
total assets	net sales
	4.9%		4.5%
	6.5		6.2

(2) Financial position				(¥ million)
	Total assets	Net assets	Equity ratio	Net assets per share (¥)
As of March 31, 2023	¥180,004	¥120,571	67.0%	¥2,201.40
As of March 31, 2022	164,646	109,492	66.5	1,999.85
Reference: Owners' equity

As of March 31, 2023: ¥120,571 million

As of March 31, 2022: ¥109,492 million

(3) Cash flows

Year ended March 31, 2023 Year ended March 31, 2022

			(¥ million)
Cash flows from	Cash flows from	Cash flows from	Cash and cash
operating activities	investing activities	financing activities	equivalents at year-end
¥8,269	¥ (11,014)	¥ (5,793)	¥17,347
14,021	(7,804)	(4,834)	24,105

2. Dividends

Year ended March 31, 2022 Year ended March 31, 2023 Year ending March 31, 2024 (forecast)

	Cash dividends per share (¥)		Total	Payout	Dividends to
	Quarter-end				dividends
				ratio	net assets
			Year-end	Annual	(full term)
1st	2nd	3rd	(consolidated) (consolidated)
		(¥ million)
-	¥17.00	-	¥18.00	¥35.00	¥1,916	31.3%	1.8%
-	17.00	-	18.00	35.00	1,916	27.9	1.7
-	17.00	-	18.00	35.00		30.9

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3. Business Performance Forecasts for the Year Ending March 31, 2024 (April 1, 2023 to March 31, 2024)

(¥ million) (%: year on year change)

				Net income
	Net sales	Operating income	Ordinary income	attributable to
				owners of the parent
Full term	¥191,000 3.8%	¥10,600 29.4%	¥10,300 22.2%	¥6,200	(9.7)%

Earnings

per share (¥)

¥113.20

4. Notes

(1) Changes in significant subsidiaries during the period

(changes in specified subsidiaries resulting in changes in scope of consolidation): Yes

New:-(Companyname:-)Excluded:-(Company name:- PT. Fuji Seal Packaging Indonesia)

1. Changes in accounting policies and changes or restatement of accounting estimates
2. 1. Changes in accounting policies due to revisions to accounting standards, etc.: Yes
   2. Changes in accounting policies other than 1.: Yes
   3. Changes in accounting estimates: Yes
   4. Restatement: None
3. Number of ordinary shares issued at the end of the year

1. Number of shares outstanding at the end of the period (including treasury stock)
2. Number of treasury stock at the end of the period
3. Average number of shares during the period (cumulative from the beginning of the fiscal year)

As of March 31, 2023	60,161,956	As of March 31, 2022
Shares
As of March 31, 2023	5,391,436	As of March 31, 2022
Shares
As of March 31, 2023	54,764,711	As of March 31, 2022
Shares

60,161,956 Shares

5,411,891 Shares

54,764,416 Shares

Notes

• Flash Reports (quarterly financial reports) are not audited by certified public accountants or auditing companies.
• Explanations concerning the appropriate use of business performance forecasts and other special notes
  The above forecasts are based on data available as of the date of release of this document as well as assumptions based on uncertain factors, which might have a material effect on the Company's performance in the future. Please refer to page 6 "(4) Forecasts" under "Overview of Consolidated Operating Results" for details.

(How to Obtain Supplementary Earnings Results Briefing Materials)

Financial results supplementary briefing materials will be posted on the Company's website.

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Overview of Consolidated Operating Results

(1) Overview of Consolidated Operating Results

During the fiscal year ended March 31, 2023, net sales at Fuji Seal International, Inc. came to ¥184,035 million (up 8.1% year on year), operating income was ¥8,194 million (down 22.5%), and ordinary income totaled ¥8,426 million (down 20.5%). Net income attributable to owners of the parent was ¥6,869 million (up 12.3%).

			(¥ million)
	Year ended March 31,	Year ended March 31,
	2023 (fiscal year under	Change
	2022 (previous fiscal year)
	review)
Net sales	¥170,321	184,035	8.1%
Operating income	10,572	8,194	(22.5)
Ordinary income	10,600	8,426	(20.5)
Net income attributable to	6,117	6,869	12.3
owners of the parent
Average exchange rate vs	¥109.90	¥131.62	19.8%
US dollar (yen)
Average exchange rate vs	129.91	138.14	6.3
euro (yen)

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The following is a breakdown of business performance by segment.

	Year ended March 31,	Year ended March 31,
	2023
	2022
	(fiscal year under
	(previous fiscal year)
	review)
Japan
Shrink label	45,759	47,906
Self-adhesive label	9,839	9,178
Soft pouch	17,104	20,386
Machinery	6,053	6,831
Other	13,548	12,832
Total sales	92,305	97,135
Operating income	7,597	7,623
Americas
Shrink label	34,060	41,832
Self-adhesive label	1,244	1,790
Soft pouch	453	368
Machinery	5,191	5,211
Other	1,311	945
Total sales	42,261	50,149
Operating income	3,539	1,749
Europe
Shrink label	12,918	15,123
Self-adhesive label	6,151	5,528
Soft pouch	114	149
Machinery	8,473	7,318
Total sales	27,658	28,118
Operating income	(837)	(1,079)
ASEAN

	(¥ million)
Change	Change in local
currency terms
4.7％	-
(6.7)％	-
19.2％	-
12.9％	-
(5.3)％	-
5.2％	-
0.3％	-
22.8％	2.6％
43.8％	20.1％
(18.8)％	(32.2)％
0.4％	(16.2)％
(27.9)％	(39.8)％
18.7％	(0.9)％
(50.6)％	(58.7)％
17.1％	10.1％
(10.1)％	(15.5)％
30.8％	23.0％
(13.6)％	(18.8)％
1.7％	(4.4)％
-	-

Shrink label	7,464	8,175	9.5％	(8.6)％
Self-adhesive label	182	220	21.2％	1.2％
Soft pouch	7,862	7,920	0.7％	(15.9)％
Machinery	494	628	27.1％	6.1％
Other	234	515	119.9％	83.6％
Total sales	16,237	17,460	7.5％	(10.2)％
Operating income	341	94	(72.2)％	(76.8)％

Japan

Sales of shrink labels increased 4.7% year on year to ¥47,906 million. Sales of self-adhesive labels decreased 6.7% to ¥9,178 million. Sales of soft pouches increased 19.2% to ¥20,386 million. Machinery sales rose 12.9% to ¥6,831 million. Sales of other products declined 5.3% to ¥12,832 million.

As a result, total sales in Japan came to ¥97,135 million (up 5.2% year on year). On the earnings front, operating income increased 0.3% to ¥7,623 million.

Americas

Sales of shrink labels increased 22.8% (up 2.6% on a local currency basis) to ¥41,832 million. Sales of self-adhesive labels increased 43.8% (up 20.1% on a local currency basis) to ¥1,790 million. Sales of soft pouches declined 18.8% (down 32.2% on a local currency basis) to ¥368 million. Machinery sales rose 0.4% (down 16.2% on a local currency basis) to ¥5,211 million. Sales of other products declined 27.9% (down 39.8% on a local currency basis) to ¥945 million.

As a result, total sales in the Americas increased 18.7% (down 0.9% on a local currency basis) to ¥50,149 million. On the earnings front, operating income declined 50.6% (down 58.7% on a local currency basis) to ¥1,749 million.

Europe

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Sales of shrink labels increased 17.1% (up 10.1% on a local currency basis) to ¥15,123 million. Sales of self-adhesive labels declined 10.1% (down 15.5% on a local currency basis) to ¥5,528 million. Sales of soft pouches increased 30.8% (up 23.0% on a local currency basis) to ¥149 million. Machinery sales declined 13.6% (down 18.8% on a local currency basis) to ¥7,318 million.

As a result, total sales in Europe increased 1.7% (down 4.4% on a local currency basis) to ¥28,118 million. On the earnings front, operating loss of ¥1,079 million was recorded (compared to operating loss of ¥837 million in the previous fiscal year).

ASEAN

Sales of shrink labels increased 9.5% (down 8.6% on a local currency basis) to ¥8,175 million. Sales of self-adhesive labels increased 21.2% (up 1.2% on a local currency basis) to ¥220 million. Sales of soft pouches increased 0.7% (down 15.9% on a local currency basis) to ¥7,920 million. Machinery sales increased 27.1% (up 6.1% on a local currency basis) to ¥628 million. Sales of other products increased 119.9% (up 83.6% on a local currency basis) to ¥515 million.

As a result, total sales in ASEAN increased 7.5% (down 10.2% on a local currency basis) to ¥17,460 million. On the earnings front, operating income decreased 72.2% (down 76.8% on a local currency basis) to ¥94 million.

(2) Overview of Financial Condition

At the close of the fiscal year ended March 31, 2023, total assets had increased ¥15,358 million compared with the previous fiscal year-end to ¥180,004 million. The main factors were a ¥6,244 million increase in notes and accounts receivable (including electronically recorded monetary claims), a ¥5,666 million increase in inventories, a ¥6,030 million increase in tangible fixed assets and a ¥3,825 million decrease in cash and deposits.

Total liabilities were up ¥4,278 million compared to the previous fiscal year-end to ¥59,432 million. This was mainly due to a ¥2,595 million increase in notes and accounts payable (including electronically recorded monetary obligations).

Total net assets were up ¥11,079 million compared to the previous fiscal year-end to ¥120,571 million. This mainly reflected a ¥4,952 million increase in retained earnings and a ¥5,638 million increase in foreign currency translation adjustments.

(3) Overview of Cash Flows

Net cash provided by operating activities for the fiscal year ended March 31, 2023 was ¥8,269 million (compared with net cash of ¥14,021 million provided in the previous fiscal year). The main items increasing cash were the posting of income before income taxes of ¥7,733 million and depreciation and amortization of ¥7,738 million, along with a ¥1,961 million increase in notes and accounts payable, while the main items decreasing cash were a ¥3,961 million increase in notes and accounts receivable, a ¥4,232 million increase in inventories, and ¥3,200 million in income taxes paid.

Net cash used in investing activities amounted to ¥11,014 million (compared with net cash of ¥7,804 million used in the previous fiscal year). This was due primarily to ¥11,151 million in cash used for the purchase of tangible fixed assets.

Net cash used in financing activities was ¥5,793 million (compared with net cash of ¥4,834 million used in the previous fiscal year). This was due primarily to repayment of borrowings of ¥3,543 million, and cash dividends paid of ¥1,916 million.

As a result, cash and cash equivalents at the end of the fiscal year ended March 31, 2023 had decreased ¥6,757 million from the previous fiscal year-end to ¥17,347 million.

(Reference) Cash flow indicators

Equity ratio (%)

Equity ratio (market-to-market basis) (%)

Debt redemption ratio (years)

Interest coverage ratio (times) Equity ratio: Owner's equity/Total assets

2019/3	2020/3	2021/3	2022/3	2023/3
63.0	63.9	64.7	66.5	67.0
150.0	69.6	85.6	56.0	45.9
1.3	0.6	0.7	0.9	1.5
78.8	288.8	317.6	217.4	79.4

Equity ratio (market-to-market basis): Total market capitalization/Total assets

Debt redemption ratio: Interest bearing liabilities/Cash flows

Interest coverage ratio: Cash flows/Interest expenses

Notes:

1. All figures are given on a consolidated basis.
2. Total market capitalization: Calculated based on the number of outstanding shares exclusive of treasury stock.
3. Cash flow figures from operating activities are used.
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