GS Yuasa : Consolidated Earnings Report for the Three Months ended June 30, 2023 (163KB)

August 3, 2023

GS Yuasa Corporation

Consolidated Earnings Report for the Three Months ended June 30, 2023 (Japanese GAAP)

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, 2023

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, 2023 (April 1, 2023 to June 30, 2023)

(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	120,540	8.2	4,836	35.5	4,935	119.7	1,649	169.3
June 30, 2023
Three Months ended	111,429	16.7	3,570	11.2	2,246	(47.4)	612	(77.1)
June 30, 2022
Note: Comprehensive income: Three Months ended June 30, 2023:	¥10,766 million, (14.6)%
	Three Months ended June 30, 2022:	¥12,610 million, 184.9%
	Basic earnings per share		Diluted earnings per share
	yen				yen
Three Months ended		20.51			-
June 30, 2023
Three Months ended		7.62			-
June 30, 2022
Reference: Operating profit before amortization of goodwill:
	Three Months ended June 30, 2023:	¥4,947 million,	29.0%
	Three Months ended June 30, 2022:	¥3,834 million,	1.6%

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, 2023		550,632	277,222	42.9
As of March 31, 2023		540,906	270,890	42.6
Reference: Total equity:	As of June 30, 2023:	¥236,453 million
		As of March 31, 2023:	¥230,677 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, 2023
Year ending		-
March 31, 2024
Year ending			15.00			-		35.00		50.00
March 31, 2024
(forecast)

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

3. Earnings Forecast for the Year ending March 31, 2024 (April 1, 2023 to March 31, 2024)

(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	260,000	10.5	9,000	9.4	7,000	16.4	2,500	45.9	31.07
September 30,
2023
Year ending	580,000	12.0	33,000	4.8	27,000	11.5	14,000	0.5	174.02
March 31, 2024

Note: The latest earnings forecast has been revised.

For details, please see "Notice Regarding Revision of the Forecast for the Six Months of the Fiscal Year ending March 31, 2024" released today (on August 3, 2023).

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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: None
   2. Changes other than 1) above: None
   3. Changes in accounting estimates: None
   4. Retrospective restatement: None

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

As of June 30, 2023	As of March 31, 2023
80,599,442	80,599,442
147,420	146,539
Three Months ended	Three Months ended
June 30, 2023	June 30, 2022
80,452,650	80,439,943

*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, 2024, the global economy continued to experience inflation due to increased energy prices and rising commodity prices despite showing signs of a gradual recovery thanks to factors such as the progression of the recovery of the supply chain and automobile production volume heading toward recovery. Monetary tightening policies are implemented globally, and the outlook continues to be uncertain, with the risk of an economic downturn, financial market volatility, etc.

In this economic environment, the GS Yuasa Group's consolidated net sales for the first three months of the fiscal year ending March 31, 2024 totaled ¥120,540 million, up ¥9,111 million or 8.2%, 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 progression of measures to revise sales prices. In line with this, operating profit came to ¥4,836 million (operating profit before goodwill amortization came to ¥4,947 million), up ¥1,265 million or 35.5% from the same period of the previous fiscal year. Ordinary profit came to ¥4,935 million, up ¥2,689 million or 119.7% from the same period of the previous fiscal year, due to improvement in share of profit of entities accounted for using equity method and foreign exchange gains. Profit attributable to owners of parent came to ¥1,649 million, up ¥1,037 million or 169.3% from the same period of the previous fiscal year.

2) Business Segment Results

Effective from the first quarter of the fiscal year ending March 31, 2024, the Company changed the segments of some consolidated subsidiaries. Consequently, the year-on-year comparisons and analysis for the first three months of the fiscal year ending March 31, 2024 are based on the classifications after the change. For further details, please see (3) Notes on the Consolidated Financial Statements of 5. Consolidated Financial Statements and Notes.

(Automotive Batteries)

Net sales in Japan for the first three months of the fiscal year ending March 31, 2024 totaled ¥19,601 million, a year-on-year increase of ¥1,907 million or 10.8%, due to the increase in sales volume of batteries for new vehicles in line with the recovery in new vehicle sales compared to the same period of the previous fiscal year, and the progression of measures to revise sales prices. Domestic automotive batteries segment profit (before goodwill amortization) came to ¥1,028 million, up ¥69 million or 7.3% from the same period of the previous fiscal year.

Overseas net sales totaled ¥58,355 million, a year-on-year decrease of ¥1,612 million or 2.7%, due to the impact of decrease in sales volume mainly in ASEAN countries. Overseas segment profit came to ¥2,762 million, down ¥259 million or 8.6% from the same period of the previous fiscal year, despite the progression of measures to pass on prices in response to cost increases caused by inflation.

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 ending March 31, 2024 totaled ¥77,956 million, a year-on-year increase of ¥295 million or 0.4%. Overall automotive batteries segment profit (before goodwill amortization) came to ¥3,790 million, down ¥189 million or 4.8% from the same period of the previous fiscal year.

(Industrial Batteries and Power Supplies)

As a result of the progression of measures to revise sales prices beginning in the previous fiscal year, net sales in the industrial batteries and power supplies segment totaled ¥17,913 million, a year-

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on-year increase of ¥878 million or 5.2%. Segment profit came to ¥152 million, improvement of ¥688 million from the same period of the previous fiscal year.

(Automotive Lithium-ion Batteries)

Net sales in the automotive lithium-ion batteries segment totaled ¥19,462 million, a year-on-year increase of ¥7,104 million or 57.5%, due to the increase in sales volume of lithium-ion batteries for hybrid vehicles. Segment profit came to ¥437 million, up ¥54 million or 14.2% from the same period of the previous fiscal year.

(Other)

Net sales in the other segment totaled ¥5,208 million, a year-on-year increase of ¥832 million or 19.0%, due to the strong sales of batteries for aircrafts. Segment profit after adjustments for corporate expenses, etc. came to ¥566 million, up ¥559 million from the same period of the previous fiscal year.

(2) Financial Condition

Total assets amounted to ¥550,632 million, an increase of ¥9,725 million from the end of the previous fiscal year. This mainly reflects an increase in inventories and an increase in the market value of owned shares, despite a decrease from the collection of trade receivables.

Liabilities increased to ¥273,410 million, up ¥3,393 million from the end of the previous fiscal year. This mainly reflects increases in trade payables and electronically recorded obligations - facilities, despite a decrease in borrowings.

Net assets totaled ¥277,222 million, an increase of ¥6,331 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

With regard to the earnings forecast for the six months ending September 30, 2023, the Company expects that operating profit, ordinary profit and profit attributable to owners of parent will exceed the previous forecast due to factors such as the steady progression of measures to revise sales prices in the first three months of the fiscal year ending March 31, 2024 and the recording of foreign exchange gains in non-operating income.

There have been no changes to the full-year consolidated earnings forecast for the fiscal year ending March 31, 2024 that was announced on May 11, 2023 as the outlook continues to be uncertain, with the risk of an economic downturn, financial market volatility, etc.

For details, please see "Notice Regarding Revision of the Forecast for the Six Months of the Fiscal Year ending March 31, 2024" released today (on August 3, 2023).

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