Consolidated Financial Statement : FY2022 1st Quarter（266KB）

CONSOLIDATED FINANCIAL RESULTS

FOR THE THREE MONTHS ENDED MARCH 31, 2022 (J-GAAP)

April 28, 2022

Name of listed company: MABUCHI MOTOR CO., LTD. Securities code: 6592 (URL:https://www.mabuchi-motor.com/)

Stock exchange listing: Tokyo

Representative: Shinichi Taniguchi (Representative Director and President, COO) Contact: Takumi Tomita (Executive Officer in charge of Accounting and Finance) Scheduled date of the filing of quarterly report: May 13, 2022

Scheduled date of start of dividends payments: - Preparation of 1Q results presentation materials (Yes/No): Yes Holding of 1Q results briefing meeting (Yes/No): No

(Amounts less than one million yen have been omitted.)

1. Consolidated Results for the Three Months Ended March 31, 2022

(From January 1, 2022 to March 31, 2022)

(1) Consolidated Operating Results

(Percentages indicate year-on-year changes)

Net sales

Operating incomeOrdinary incomeProfit attributable to owners of parent

For the three months ended

Millions of yen

%Millions of yen

%Millions of yen

% Millions of yen

%

March 31, 2022

March 31, 2021

35,179 35,446

(0.8) 22.3

2,704 5,242

(48.4)

70.3

4,924 7,317

(32.7) 462.9

3,058 5,763

(46.9) 525.9

Note: Comprehensive income

Three months ended March 31, 2022: ¥14,872 million [(4.6)%]Three months ended March 31, 2021: ¥15,590 million [―%]

Profit per share	Fully diluted profit per share
For the three months ended March 31, 2022 March 31, 2021	Yen 46.97 87.44	Yen 46.96 87.41

(2) Consolidated Financial Position

Total assets	Net assets	Equity ratio
As of March 31, 2022 December 31, 2021	Millions of yen 292,094 285,704	Millions of yen 267,979 259,909	% 91.7 90.9

Reference: Shareholders' equity

As of March 31, 2022: ¥267,887 millionAs of December 31, 2021: ¥259,817 million

2. Dividends

Dividends per share

1st quarter-end

2nd quarter-end

3rd quarter-endYear-end

Total

Yen

Yen

Yen

Yen

Yen

Fiscal 2021

Fiscal 2022

― ―

57.00

―

58.00

115.00

Fiscal 2022 (forecast)

67.00

―

68.00

135.00

Note: Amendments to dividend forecast that has been disclosed recently: None

Note: Breakdown of 2nd quarter-end dividend for fiscal 2021: Special dividend: ¥42.00

Breakdown of year-end dividend for fiscal 2021: Special dividend: ¥43.00

Breakdown of 2nd quarter-end dividend for fiscal 2022 (forecast): Special dividend: ¥52.00

Breakdown of year-end dividend for fiscal 2022 (forecast): Special dividend: ¥53.00

3. Consolidated Results Forecasts for the Fiscal Year (From January 1 to December 31, 2022)

(Percentages indicate year-on-year changes)Net sales

Operating incomeOrdinary incomeProfit attributable to owners of parent

Profit per share

Millions of yen

%Millions of yen

% Millions of yen

% Millions of yen

%

Yen

Six months Full year

71,000 148,000

2.5 10.0

6,600 (23.7)

15,500

12.3

7,500 17,300

(36.2) (11.6)

5,100 12,300

(40.0) (13.7)

78.03 188.20

Note: Amendments to results forecasts that have been disclosed recently: None

Notes

• (1) Changes in significant subsidiaries during the period (changes in specified subsidiaries that accompanied changes in the scope of consolidation): None

• (2) Application of accounting procedures specific to preparation of quarterly consolidated financial statements: Yes

• (3) Changes in accounting policies, changes in accounting estimates, restatements:

  • 1) Changes in accounting policies resulting from revision of accounting standards, etc.: Yes

  • 2) Changes in accounting policies due to reasons other than those stated in 1): None

  • 3) Changes in accounting estimates: None

  • 4) Restatements: None

• (4) Number of shares issued (common stock)

  • 1) Number of shares issued at the end of the period (including treasury stock)

  • 2) Number of shares of treasury stock at the end of the period

  • 3) Average number of shares during the period

Mar. 31, 2022	67,843,062	Dec. 31, 2021	67,843,062
Mar. 31, 2022	3,243,274	Dec. 31, 2021	2,485,728
Jan.-Mar. 2022	65,120,652	Jan.-Mar. 2021	65,915,206

* The quarterly review procedure by a Certified Public Accountant or an auditing firm does not apply these Consolidated Financial Results.

* Explanation related to appropriate use of results forecasts and other items warranting special mention

The above forecasts are based on the information available as of the date of the release of this document. As a result, a variety of factors in the future may cause actual results to differ from these forecasts.

1. Qualitative Information

(1) Operating Results

During the three months ended March 31, 2022 (January 1-March 31, 2022), the global economy saw economic activity stagnate from a resurgence of new coronavirus infections, higher resource prices and logistics costs, and shortages in supplies of semiconductors, compounded by supply chain disruptions from the increasingly tense situation in Ukraine. In the United States, despite a pickup in inflation caused by higher resource prices, the economy remained solid, supported by retail consumption reflecting the easing of measures to prevent the spread of new coronavirus infections and a favorable environment for hiring and wages. While a move toward normal economic activity was seen in Europe as countries eased lockdowns in major cities and other measures to prevent the spread of new coronavirus infections, economies were adversely affected by high energy prices and supply chain disruptions from the tense situation in Ukraine. The pace of recovery in the Japanese economy slowed on stagnant economic activity from a resurgence of new coronavirus infections. The recovery in emerging market economies was sluggish, in large part reflecting the stagnation of economic activity in China from lockdowns in major urban areas.

With regard to markets related to the Mabuchi Group's products, the automotive products market saw production adjustments from shortages in supplies of semiconductors and electronic parts, and markets slowed in all regions except China. Demand remained stable in the life and industrial Products market.

Against this backdrop, Mabuchi's motor sales declined 9.4% year on year in terms of volume, with a 0.7% year-on-year decrease in value. These figures were 2.4% below the initial first-quarter plan for volume, and 0.5% short in terms of value. As a result, consolidated net sales for the first quarter were 35,179 million yen (a 0.8% decrease year on year), and motor sales, which account for the majority of net sales, were 35,175 million yen (a 0.7% decrease year on year).

Although operating income was boosted by factors including a weaker yen year on year and improvements in sales prices and the product mix, these were more than offset by negative factors including lower sales volume and a rise in commodity prices, resulting in operating income of 2,704 million yen (a 48.4% decrease year on year). With this decline in operating income, ordinary income was 4,924 million yen (a 32.7% decrease year on year). Profit before income taxes was 4,844 million yen (a 33.4% decrease year on year), and profit attributable to owners of parent was 3,058 million yen (a 46.9% decrease year on year).

The next session describes market trends and sales conditions categorized into separate markets for motors.

• 1) Automotive Products Market

  Net sales declined to 25,804 million yen (a 3.4% decrease year on year). The main reason was production adjustments from the shortage of semiconductor supplies and logistics disruptions, with lower sales of both medium-sized automotive motors, which includes motors for power window lifters, motors for power seats, and motors for electric parking brakes, and small automotive motors including door lock actuators, motors for door mirrors, and air conditioning damper actuators.

• 2) Life and Industrial Products Market

Net sales rose to 9,371 million yen (a 7.6% increase year on year). Sales of motors for home appliances, power tools and housing equipment, and office equipment decreased on a lull in demand related to working from home and people staying at home instead of going out, but sales of motors for health and medical devices and personal care products rose.

From the first quarter of the current fiscal year, the previous Consumer and Industrial Products Market segment has been renamed the Life and Industrial Products Market to reflect a greater emphasis on motors for medical devices and industrial equipment in addition to the previous applications for home appliances, etc.

(2) Financial Position

Total assets as of March 31, 2022, were 292,094 million yen, a 6,389 million yen increase from the end of the previous fiscal year. Major changes from the end of the previous fiscal year included increases of 5,642 million yen in inventories, 4,039 million yen in property, plant and equipment, and 2,987 million yen in trade notes and accounts receivable, and a 7,142 million yen decrease in cash and bank deposits.

Total liabilities decreased 1,680 million yen from the end of the previous fiscal year, to 24,114 million yen. Major changes from the end of the previous fiscal year included decreases of 1,879 million yen in accrued income taxes and 1,031 million yen in other current liabilities, and a 1,037 million yen increase in deferred tax liabilities-non-current.

Total net assets increased 8,070 million yen from the end of the previous fiscal year, to 267,979 million yen. This included an 11,510 million yen increase in foreign currency translation adjustments, a 784 million yen decrease in retained earnings, and a 2,957 million yen increase in treasury stock, which is deducted from net assets.

(3) Forward-Looking Statements Including Consolidated Results Forecast

There are concerns of a slowdown in the global economy as economic activity is expected to stagnate on a resurgence of new coronavirus infections and higher resource prices and logistics costs, as well as supply chain disruptions caused by shortages of semiconductor supplies and the increasingly tense situation in Ukraine. Although continued growth is forecast for the U.S. economy, supported by solid retail consumption on a favorable hiring and wage environment, the pace of growth is expected to slow on proactive interest rate increases to rein in high inflation. In Europe, an economic slowdown is forecast from high energy prices and supply chain disruptions from the increasingly tense situation in Ukraine. While the Japanese economy is seen moving back toward normal economic activity as new coronavirus prevention measures are eased, increased pressure on household finances from higher resource prices is seen restraining retail consumption, and only a gradual pace of recovery is expected. In emerging market economies, a slowdown is forecast for China on factors including stagnant economic activity from lockdowns of urban areas, and the overall pace of growth is seen slowing as other economies are affected by U.S. interest rate increases.

With regard to markets related to the Mabuchi Group's products, the outlook for the automotive products market is unclear, given shortages in supplies of semiconductors and other parts and supply chain disruptions from logistics issues and the increasingly tense situation in Ukraine. In the life and industrial products market, we are forecasting continued solid demand in markets in all regions.

With regard to the situation in Russia and Ukraine, events going forward could affect the Mabuchi Group's business activities, and we will be following developments closely.

Against this backdrop, our forecasts for consolidated results and dividends are unchanged. Going forward, if extremely major changes emerge in our operating environment, we will review our forecasts for operating results, and promptly disclose any changes to these forecasts.

Our forecasts assume an exchange rate of US$1 = ¥110, which is unchanged from the initial forecasts.

Note: The above forecasts were made based on information that is available at the present moment. Actual results may differ from expectations owing to various future factors, the main ones of which are as follows:

・Fluctuations in foreign exchange rates

・Changes in economic conditions and demand trends in our business areas ・Rapid technological innovations, such as new technologies or new products ・Fluctuations in market prices of copper, steel materials, rare earths, and other raw materials Note, however, that the factors that could affect our results are not limited to the above.

2. Consolidated Financial Statements and Primary Notes (1) Consolidated Balance Sheets

Assets

Total current assets 185,577

187,258

Property, plant and equipment
Buildings and structures 54,365	56,356
Accumulated depreciation (32,277)	(33,612)
Buildings and structures, net 22,088	22,744
Machinery, equipment and vehicles 83,698	91,069
Accumulated depreciation (47,249)	(51,636)
Machinery, equipment and vehicles, net 36,449	39,432
Tools, furniture and fixture 22,497	23,925
Accumulated depreciation (18,569)	(19,826)
Tools, furniture and fixture, net 3,927	4,099
Land 6,626	6,674
Construction in progress 14,667	14,848
Total property, plant and equipment 83,760	87,799
Intangible assets
Goodwill 2,708	2,798
Other intangible assets 2,788	2,818
Total intangible assets 5,497	5,617

Total investments and other assets 10,869

11,417

(Millions of yen)
As of	As of
December 31, 2021	March 31, 2022
Current assets
Cash and bank deposits	104,001	96,858
Trade notes and accounts receivable	24,009	26,997
Short-term investments	1,500	1,500
Merchandise and finished goods	35,035	38,112
Work in process	1,118	1,613
Raw materials and supplies	14,766	16,836
Other current assets	5,281	5,519
Allowance for doubtful accounts	(134)	(179)
Fixed assets
Investments and other assets
Investment securities	8,730	9,178
Deferred tax assets-non-current	780	870
Other investments and other assets	1,390	1,400
Allowance for doubtful accounts	(31)	(31)
Total fixed assets	100,126	104,835

Total assets

285,704

292,094