Koito Manufacturing : Consolidated Earnings Report for Fiscal 2022

Consolidated Earnings Report for Fiscal 2022

[Japanese GAAP]

April 27, 2022

Company Name:
Stock Listing:	Prime Market, Tokyo Stock Exchange
Code Number:	7276
URL:	https://www.koito.co.jp
Representative Director:	Michiaki Kato, President
Inquiries:	Hideharu Konagaya, Senior Managing Director
Tel:	[phone]
Planned Date of the General Meeting of Shareholders:	June 29, 2022
Planned Date of Dividends Payment:	June 30, 2022
Planned Date of Filing of Annual Securities Report:	June 30, 2022
Supplementary explanatory materials prepared:	Yes
Explanatory meeting:	Yes

KOITO MANUFACTURING CO., LTD.

1. Consolidated Results for Fiscal 2022 (April 1, 2021 to March 31, 2022)

(1) Consolidated Operating Result

(¥ millions are rounded down)

(¥ millions; percentage figures represent year-on-year changes)

Net sales	Operating income	Recurring profit	Profit attributable to owners of parent
Fiscal 2022	760,719 7.7%	53,434 △5.8%	60,613 △0.8%	38,340 1.9%
Fiscal 2021	706,376 △11.8%	56,707 △31.2%	61,107 △28.3%	37,612 △35.2%

Note: Comprehensive income: Fiscal 2022: ¥67,558 million (△1.3%), Fiscal 2021: ¥68,457 million (65.9%)

Net income per share (¥)	Net income per share (diluted) (¥)	Return on equity (%)	Recurring profit to total assets ratio (%)	Operating income to net sales ratio (%)
Fiscal 2022	238.53	238.46	6.8	7.4	7.0
Fiscal 2021	234.00	233.93	7.4	8.1	8.0

Note: Equity in earnings of affiliated companies: Fiscal 2022: ¥△656 million, Fiscal 2021: ¥△595 million

(2) Consolidated Financial Position

(¥ millions)

Total assets	Net assets	Equity ratio (%)	Net assets per share (¥)
March 31, 2022	855,237	627,315	69.1	3,676.47
March 31, 2021	782,163	569,438	68.7	3,344.65

Note: Equity: March 31, 2022: ¥590,958 million, March 31, 2021: ¥537,605 million (3) Consolidated Cash Flows

(¥ millions)

Operating activities	Investing activities	Financing activities	Cash and cash equivalents at end of year
Fiscal 2022	65,707	△52,151	△8,491	169,581
Fiscal 2021	74,962	△1,093	△18,324	161,855

2.

Dividends

Dividend per share (¥)	Dividend paid (annual) (¥ millions)	Payout ratio (Consolidated) (%)	Ratio of dividends to net assets (Consolidated) (%)
First quarter	Second quarter	Third quarter	Year end	Full year
Fiscal 2021	－	20.00	－	30.00	50.00	8,036	21.4	1.6
Fiscal 2022	－	24.00	－	30.00	54.00	8,679	22.6	1.5
Fiscal 2023 (forecast)	－	－	－	－	－	－

Notes: Forecasts of dividends for fiscal 2023 are currently undecided.

3. Forecast of Consolidated Results for Fiscal 2023 (April 1, 2022 to March 31, 2023)

(¥ millions; percentage figures represent year-on-year changes)

Net sales	Operating income	Recurring profit	Profit attributable to owners of parent	Net income per share (¥)
First half	414,000 17.4%	27,000 11.8%	28,000 7.5%	18,000 12.7%	111.98
Full year	871,000 14.5%	67,000 25.4%	69,000 13.8%	46,000 20.0%	286.18

*Notes

• (1) Changes to important subsidiaries during fiscal 2022 (changes in specified subsidiaries resulting in revised scope of consolidation): None

• (2) Changes in accounting principles, accounting estimates and restatements

  ① Changes in accounting policies in conjunction with revisions to accounting standards: Yes ②Other changes : None

  ③Changes in accounting estimates : None ④Restatements : None

Note: For details, please refer to the attached material P.13 "2. Quarterly Consolidated Financial Statements and Notes (5)

Notes to Consolidated Financial Statements (Note Regarding Changes in accounting policies)."

(3) Number of shares issued (common stock)

① Number of shares issued

(shares)

(including treasury stock): ②Number of treasury stocks:

③Average number of shares during the year:

March 31, 2022 160,789,436	March 31, 2021 160,789,436
March 31, 2022 48,905	March 31, 2021 53,614
Fiscal 2022 160,739,179	Fiscal 2021 160,734,989

《 For Reference Only 》

Non-consolidated Earnings Report for Fiscal 2022

1. Non-consolidated Results for Fiscal 2022 (April 1, 2021 to March 31, 2022)

(1) Non-consolidated Business Results

(¥ millions; percentage figures represent year-on-year changes)

Net sales	Operating income	Recurring profit	Net income
Fiscal 2022	294,463 △5.7%	17,760 △16.0%	38,416 0.6%	23,253 △38.9%
Fiscal 2021	312,201 △12.4%	21,138 △17.3%	38,185 △18.3%	38,048 △8.6%

Net income per share (¥)	Net income per share (diluted) (¥)
Fiscal 2022	144.66	144.62
Fiscal 2021	236.72	236.64

(2) Non-consolidated Financial Position

(¥ millions)

Total assets	Net assets	Equity ratio (%)	Net assets per share (¥)
March 31, 2022	475,170	379,654	79.9	2,360.67
March 31, 2021	469,849	365,178	77.7	2,270.53

Note: Equity: March 31, 2022: ¥379,455 million, March 31, 2021: ¥364,955 million

2.

Forecast of Non-consolidated Results for Fiscal 2023 (April 1, 2022 to March 31, 2023)

(¥ millions; percentage figures represent year-on-year changes)

Net sales	Operating income	Recurring profit	Net income	Net income per share (¥)
First half	151,000 3.3%	7,500 △27.8%	21,000 △12.2%	17,000 △11.7%	105.76
Full year	326,000 10.7%	19,500 9.8%	38,500 0.2%	29,000 24.7%	180.41

*This consolidated earnings report is not subject to the auditing procedures by certified public accountants or auditing firms.

*Explanations concerning proper use of business forecasts and other noteworthy matters (Notes on future assumptions)

The above forecasts are based on information available, and certain assumptions that are judged to be reasonable, at the time of the release of this report. KOITO is not promising that the Company will achieve these forecasts. Actual results could differ from forecasts due to a variety of factors.

The exchange conversion rate based on the business forecast for fiscal 2023, the year ending March 2023 is calculated as 1.00 US$ = ¥115.0 and 1 CNY = ¥18.0.

(Supplementary materials for financial results)

KOITO is scheduled to have an earnings release conference for securities analysts and institutional investors on May 13,

2022. Supplementary materials will be available on our website.

Table of Contents of Supplementary Materials

• 1. Outline of Consolidated Results ………………………………………………………………………………………… 2.

  • (1) Outline of Consolidated Results in Fiscal 2022 ………………………………………………………………… .

  • (2) Outline of Financial Position in Fiscal 2022 ………………………………………………………………………

    2 2

  • (3) Forecasts for Fiscal 2023 ……………………………………………………………………………………………… 3

  • (4) Basic Earnings Distribution Policies and Dividend Payments for Fiscal 2022 and Fiscal 2023 …………………… 3

• 2. Basic Approach in Selection of Accounting Standard ………………………………………………………………… .4

• 3. Consolidated Financial Statements and Notes ………………………………………………………………………… ..5

  • (1) Consolidated Balance Sheets ……………………………………………………………………………………… ..5

• (2) Consolidated Statements of Income and Comprehensive Income ……………………………………………… ..

7

• (3) Consolidated Statements of Changes in Shareholders' Equity ……………………………………………………… 9

• (4) Consolidated Statements of Cash Flows …………………………………………………………………………… 1.1

• (5) Notes to Consolidated Financial Statements ………………………………………………………………………… 13

  (Going Concern Assumption) ……………………………………………………………………………………… .13

  (Changes in Accounting Policies) ………………………………………………………………………………… 13

  (Segment Information) ……………………………………………………………………………………………… 1. 4

  (Per Share Information) …………………………………………………………………………………………… 16

  (Significant Subsequent Events) …………………………………………………………………………………… .1. 6

4. Non-consolidated Financial Statements ……………………………………………………………………………… ..1.7

• (1) Non-consolidated Balance Sheets ………………………………………………………………………………… .1. 7

• (2) Non-consolidated Statements of Income …………………………………………………………………………… 19

1

1. Outline of Consolidated Results

(1) Outline of Consolidated Results in Fiscal 2022

Although recovery from the effect of COVID-19 was expected, the outlook of the economic conditions of Japan and overseas in this period remained uncertain due to the slow economic recovery caused by the geopolitical risks, such as the volatile situation in Ukraine, in addition to the effects of the re-spreading of infections, shortage of semiconductors, and a rise in resource and raw material costs.

The automobile production volume also decreased three consecutive periods in Japan due to the drastic fluctuations in production, caused by the confusion of the supply chains. The overseas production volume decreased four consecutive periods as well.

In this climate, the consolidated net sales in Japan decreased year on year due to the decrease in the automobile production. However, overseas, the net sales increased year on year due to new orders in North America and Asia, a shift in automobile lamps to LED, and effect from the exchange conversion, where the net sales increased 7.7% year on year to ¥760.7 billion.

The results by segment are as follows.

[Japan]

The net sales decreased 8.4% year on year to ¥312.3 billion due to a decrease in the automobile production volume.

[North America]

While the automobile production volume remained at the same level as the previous period, the net sales increased 29.4% year on year to ¥185.5 billion due to new orders and a shift in automobile lamps to LED.

[China]

Although the automobile production volume decreased, the net sales increased 6.3% year on year to ¥109.9 billion due to the effect of the exchange conversion.

[Asia]

The net sales increased 28.0% year on year to ¥110.4 billion due to an increase in the automobile production volume, new orders, and a shift in automobile lamps to LED.

[Europe]

Although the automobile production volume decreased, the net sales increased 20.7% year on year to ¥33.3 billion due to the effect of the exchange conversion.

[Others]

The net sales increased 97.9% year on year to ¥9.0 billion due to an increase in the automobile production volume, new orders, and a shift in automobile lamps to LED.

Regarding profits, while the net sales has increased, the operating income decreased 5.8% year on year to ¥53.4 billion, and recurring profit decreased 0.8% year on year to ¥60.6 billion, due to an increase in the fixed costs accompanying the sudden fluctuation in production, a rise in raw material and electronic component costs, activities to receive new orders, and investment in R&D for the future. The net income attributable to the owners of the parent increased 1.9% year on year to ¥38.3 billion, due to the gain on sale of investment securities.

(2) Outline of Financial Position in Fiscal 2021

-1. Assets, liabilities and net assets

Total assets as of March 31, 2022 increased by ¥73.0 billion from the previous year to ¥855.2 billion which is mainly due to an increase in cash, time deposits and investments in securities .

Total liabilities as of March 31, 2022 is ¥227.9 billion, same level as the previous year.

Net assets as of March 31, 2022 increased by ¥57.8 billion year on year to ¥627.3 billion due to an increase in the retained earnings led by the net income attributable to the owners of the parent, and an increase in translation adjustment caused by weaken Yen.

-2. Cash flows

Cash flow by the operating activities resulted in ¥65.7 billion (previous fiscal year: ¥74.9billion), mainly reflecting income before income taxes of ¥61.1 billion and depreciation of ¥35.8 billion.

Investment activities used net cash of ¥52.1billion (previous fiscal year: payment of ¥1.0 billion) as a result of proceeds from time deposits of ¥133.6 billion, payments into time deposits of ¥141.3 billion, and equipment investment of ¥28.9 billion.

Financing activities used net cash of ¥8.4 billion (previous fiscal year: payment of ¥18.3 billion), mainly reflecting the dividends paid of ¥9.6 billion.

As a result, the cash and cash equivalent as of March 31, 2022 were ¥169.5 billion, ¥7.7 billion higher than on March 31, 2021.

2