Kokuyo : Summary of Financial Results for the Fiscal Year Ended December 31, 2022 （2,526KB）

Summary of Financial Results for the Fiscal Year

Ended December 31, 2022

February 15, 2023 KOKUYO Co., Ltd.

© 2023 KOKUYO Co.,Ltd.

Contents

1. Full-Year FY2022 Results

2. Progress in Third Medium-Term Plan

(2022-2024): Field Expansion 2024

3. Full-Year FY2023 Forecasts

4. Reference Materials

* The business segments are as follows:

Furniture Businesses: FN

Business Supply Distribution: BS

Stationery Businesses: ST

Interior Retail Businesses: IR

* Unless otherwise indicated, monetary figures are rounded down to the nearest hundred million yen. As such, the sum of the figures in a breakdown may not match the stated total.

* The new revenue standard has been retroactively applied to the results for FY2021.	2

Executive Summary

FY2022 Results

• Of the targets downwardly revised (as announced in the Q3 results presentation), we met the operating income target, with our businesses generally performing well in their initiatives. However, we missed the net sales target by 5 billion yen because the Japanese furniture business saw fewer office renovation orders than expected.
• Net income reached a record high of ¥18.3 billion. Factors: 1) a bounce-back from the recording, in the previous fiscal year, of ¥5.0 billion following impairment in equity-method affiliate Pentel Co., Ltd., 2) a before-scheduled sale of shares held under a cross-holding arrangement, and 3) a lower burden of corporate taxes (the sale of shares in Pentel meant that we were permitted to pay no income tax on the holdings, whereas we were not permitted this when we recorded a write-down of the holdings last year).
• Our dividend forecast remains unchanged. The interim dividend will be ¥57.00 per share, considerably higher than the amount for the previous year and an all-time high.

Progress in Third Medium-Term Plan

• Workstyle: We acquired a company that will aid global expansion. We added wooden products to our lineup of office space products. Lifestyle: The Covid situation remained tough, but we expanded stationery brands in China and India.
• Of the four priority tasks for building our growth model, we made progress in dynamic investment by enhancing the organizational structure for investment and acquiring an overseas company. We made progress in social value and business value by enhancing the organizational structure for sustainability and publishing an integrated report as part of a PDCA cycle.

Full-Year FY2023 Forecasts

• To ensure progress toward our medium-term goals in the second year of the medium term, we will implement organizational reforms and strategies with a view to a full-scaleglobal expansion.
• We expect growth in revenue and profit with the acquired company contributed to consolidated results and with fully fledged recovery and growth in the Chinese and Indian stationery businesses.
• Net income will decrease relative to the all-time high in FY2022, when we recorded gain on sales of investment securities.
• For the dividend, we will pay 58 yen per share (payout ratio of 42.9%) in accordance with our policy of paying a higher amount than the previous year with a payout ratio of at least 40%.

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© 2023 KOKUYO Co.,Ltd.

1. Full-Year FY2022 Results

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FY2022 Results: Year on Year Comparisons

Year on year, net sales increased, operating income decreased but hit the target, and net profit

reached an all-time high of ¥18.3 billion.

					(Billions of yen)
	FY2021	FY2022	FY2022	YoY change	Divergence from
	Result	Revised target	Result	revised target
Net sales	292.6	306.0	300.9	+2.8%	-1.7%
Gross profit	113.5	117.5	116.6	+2.8%	-0.7%
(ratio)	38.8%	38.4%	38.8%
SG&A expenses	93.6	98.2	97.3	+4.0%	-0.9%
(ratio)	32.0%	32.1%	32.3%
Operating income	19.9	19.3	19.3	-2.9%	+0.1%
(ratio)	6.8%	6.3%	6.4%
Ordinary income	16.4	22.2	21.3	+30.1%	-3.8%
(ratio)	5.6%	7.3%	7.1%
Profit	13.7	18.5	18.3	+34.1%	-0.7%
(ratio)	4.7%	6.0%	6.1%			5

© 2023 KOKUYO Co.,Ltd.