GS Yuasa : Consolidated Earnings Report for the Three Months ended June 30, 2022 (227KB)

GS Yuasa Corporation

Consolidated Earnings Report for the Three Months ended June 30, 2022 (Japanese GAAP)

August 3, 2022

Stock listing:	Tokyo Stock Exchange	Securities code: 6674
URL:	https://www.gs-yuasa.com/en/
Representative:	Osamu Murao, President and CEO
Information contact: Hiroaki Matsushima	Tel: [phone]
	Director and CFO

Scheduled dates

Filing of statutory quarterly financial report (Shihanki hokokusho): August 3, 2022

Dividend payout:	-
Supplementary materials to quarterly earnings report available:	Yes
Quarterly earnings presentation held:	Yes (targeted at institutional
	investors and analysts)

(Amounts rounded down to the nearest million yen)

1. Consolidated Financial Results for the Three Months ended June 30, 2022 (April 1, 2022 to June 30, 2022)

(1) Consolidated Operating Results				(Percentages indicate year-on-year changes)
	Net sales		Operating profit	Ordinary profit		Profit attributable to
			owners of parent
	million yen	%	million yen	%	million yen	%		million yen	%
Three Months ended	111,429	16.7	3,570	11.2	2,246	(47.4)	612	(77.1)
June 30, 2022
Three Months ended	95,458	25.0	3,210	220.3	4,268	151.1	2,681	-
June 30, 2021
Note: Comprehensive income: Three Months ended June 30, 2022: ¥12,610 million,	184.9%
	Three Months ended June 30, 2021: ¥4,426 million,	89.5%
	Basic earnings per share	Diluted earnings per share
	yen			yen
Three Months ended		7.62		-
June 30, 2022
Three Months ended		33.27		-
June 30, 2021
Reference: Operating profit before amortization of goodwill:
	Three Months ended June 30, 2022: ¥3,834 million,		1.6%
	Three Months ended June 30, 2021: ¥3,775 million,	140.9%

The Company uses "operating profit before amortization of goodwill" as an important indicator for management.

(2) Consolidated Financial Position

	Total assets	Net assets	Equity ratio
	million yen	million yen	%
As of June 30, 2022	521,952	262,081	42.8
As of March 31, 2022	480,763	249,938	44.8
Reference: Total equity:	As of June 30, 2022:	¥223,363 million
	As of March 31, 2022:	¥215,233 million

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2. Dividends

				Dividend per share
		End-Q1	End-Q2		End-Q3	Year-end	Total
		yen	yen		yen	yen	yen
Year ended		-	15.00		-	35.00		50.00
March 31, 2022
Year ending		-
March 31, 2023
Year ending			15.00		-	35.00		50.00
March 31, 2023
(forecast)

Note: No revision has been made to the latest dividends forecast.

3. Earnings Forecast for the Year ending March 31, 2023 (April 1, 2022 to March 31, 2023)

(Percentages indicate year-on-year changes)

							Profit attributable to	Basic
	Net sales	Operating profit	Ordinary profit	earnings
	owners of parent
							per share
	million yen	%	million yen	%	million yen	%	million yen	%	yen
Six months ending	240,000	23.0	7,500	43.5	7,500	14.2	2,500	13.3	31.06
September 30,
2022
Year ending	520,000	20.3	28,000	23.5	28,000	13.4	12,000	41.7	149.11
March 31, 2023

Note: No revision has been made to the latest earnings forecast.

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*Notes

1. Changes affecting the status of material subsidiaries (scope of consolidation): None
2. Use of accounting procedures specific to preparation of quarterly consolidated financial statements: Yes
3. Changes in accounting policy, changes in accounting estimates, and retrospective restatement
4. 1. Changes in accordance with revisions to accounting and other standards: Yes
   2. Changes other than 1) above: None
   3. Changes in accounting estimates: None
   4. Retrospective restatement: None
5. Number of shares issued (common stock)

		As of June 30, 2022	As of March 31, 2022
1)	Number of shares issued (including treasury	80,599,442	80,599,442
	shares)
2)	Number of treasury shares	159,605	159,410
		Three Months ended	Three Months ended
		June 30, 2022	June 30, 2021
3)	Average number of shares outstanding during	80,439,943	80,581,816
	the period (cumulative from the beginning of
	the fiscal year)

*Quarterly financial reports are not subject to audit procedures to be conducted by certified public accountants or an audit firm.

*Appropriate Use of Earnings Forecast and Other Important Information

The above forecasts are based on the assumptions of management in light of information available as of the release date of this report. GS Yuasa Corporation makes no assurances as to the actual results, which may differ from forecasts due to various factors such as changes in the business environment.

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4. Qualitative Information on Quarterly Financial Results

(1) Results of Operations

1) Overview

In the first three months of the fiscal year ending March 31, 2023, the global economy continued to experience supply chain disruptions due to shortages of components, the urban lockdown in China, and other factors. In addition, inflation is accelerating due to rising raw material prices and increased energy costs caused by the situation in Ukraine and other factors, and since the U.S. accelerated the pace of monetary tightening in order to curb inflation, the yen weakened due to the widening interest rate differential between the U.S. and Japan.

In this economic environment, the GS Yuasa Group's consolidated net sales for the first three months of the fiscal year totaled ¥111,429 million, up ¥15,971 million or 16.7%, from the same period of the previous fiscal year. This increase in Group sales mainly reflects an increase in sales volume of lithium-ion batteries for hybrid vehicles and the effect of the consolidation of İnci GS Yuasa Akü Sanayi ve Ticaret Anonim Şirketi, as well as the effect of yen depreciation on foreign exchange rate. In line with this, operating profit came to ¥3,570 million (operating profit before goodwill amortization came to ¥3,834 million), up ¥360 million or 11.2% from the same period of the previous fiscal year. Ordinary profit came to ¥2,246 million, down ¥2,021 million or 47.4% from the same period of the previous fiscal year, due to deterioration in share of profit of entities accounted for using equity method and recording foreign exchange losses. Profit attributable to owners of parent came to ¥612 million, down ¥2,068 million or 77.1% from the same period of the previous fiscal year.

2) Business Segment Results

(Automotive Batteries)

Net sales in Japan for the first three months of the fiscal year ending March 31, 2023 totaled ¥17,693 million, a slight year-on-year decrease of ¥111 million or 0.6%, due to the decrease in sales volume of batteries for new vehicles in line with the decline in new vehicle sales compared to the same period of the previous fiscal year, while revising sales prices. Domestic segment profit (before amortization of goodwill) came to ¥958 million, down ¥55 million or 5.4% from the same period of the previous fiscal year, due to the decrease in sales volume.

Overseas net sales totaled ¥59,967 million, a year-on-year increase of ¥15,222 million or 34.0%, due to the consolidation of İnci GS Yuasa Akü Sanayi ve Ticaret Anonim Şirketi and the effect of yen depreciation on foreign exchange rate. Overseas segment profit came to ¥3,021 million, up ¥70 million or 2.4% from the same period of the previous fiscal year, thanks to increased net sales, despite the impact of higher costs including distribution costs.

As a result of the above factors, the automotive batteries segment's combined net sales in Japan and overseas in the first three months of the fiscal year totaled ¥77,660 million, a year-on-year increase of ¥15,110 million or 24.2%. Overall automotive batteries segment profit (before goodwill amortization) came to ¥3,980 million, up ¥14 million or 0.4% from the same period of the previous fiscal year.

(Industrial Batteries and Power Supplies)

Net sales in the industrial batteries and power supplies segment totaled ¥17,440 million, a year-on- year decrease of ¥2,416 million or 12.2%, due to the completion of the delivery of lithium-ion batteries for large-scale wind power generation facilities in the previous fiscal year. The segment posted an operating loss of ¥458 million, a year-on-year improvement of ¥166 million, owing to changes in our sales mix.

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(Automotive Lithium-ion Batteries)

Net sales in the automotive lithium-ion batteries segment totaled ¥12,358 million, a year-on-year increase of ¥3,449 million or 38.7%, due to the increase in sales volume of lithium-ion batteries for hybrid vehicles. The segment posted an operating profit of ¥383 million, up ¥218 million or 132.8% from the same period of the previous fiscal year, thanks to increased net sales.

(Other)

Net sales in the other segment totaled ¥3,969 million, a year-on-year decrease of ¥172 million or 4.2%. The segment posted an operating loss after adjustments for corporate expenses, etc., of ¥71 million, a year-on-year deterioration of ¥341 million.

(2) Financial Condition

Total assets as of June 30, 2022, amounted to ¥521,952 million, ¥41,189 million more than at the end of the previous fiscal year, mainly due to the new consolidation of İnci GS Yuasa Akü Sanayi ve Ticaret Anonim Şirketi, despite a decrease from the collection of trade receivables.

Liabilities increased to ¥259,871 million, up ¥29,046 million from the end of the previous fiscal year, due to an increase in trade payables and the new consolidation of İnci GS Yuasa Akü Sanayi ve Ticaret Anonim Şirketi.

Net assets totaled ¥262,081 million, an increase of ¥12,142 million from the end of the previous fiscal year. This mainly reflects an increase due to the recording of profit attributable to owners of parent and an increase in the foreign currency translation adjustment due to forex rate fluctuations, which outweighed outflows from dividends paid.

(3) Note on Consolidated Earnings Forecast and Other Forward-looking Statements

No revisions have been made to the consolidated earnings forecast announced on May 12, 2022.

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