Consolidated Financial Statement : Second Quarter of 2022（274KB）

CONSOLIDATED FINANCIAL RESULTS

FOR THE SIX MONTHS ENDED JUNE 30, 2022 (J-GAAP)

	August 12, 2022
Name of listed company: MABUCHI MOTOR CO., LTD.	Stock exchange listing: Tokyo
Securities code: 6592 (URL: https://www.mabuchi-motor.com/)
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: August 12, 2022
Scheduled date of start of dividends payments: September 12, 2022

Preparation of 2Q results presentation materials (Yes/No): Yes

Holding of 2Q results briefing meeting (Yes/No): Yes

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

1. Consolidated Results for the Six Months Ended June 30, 2022 (From January 1, 2022 to June 30, 2022)

1. Consolidated Operating Results

(Percentages indicate year-on-year changes)

	Net sales		Operating income	Ordinary income	Profit attributable to
		owners of parent
For the six months ended	Millions of yen		%	Millions of yen	%	Millions of yen	%	Millions of yen	%
June 30, 2022	71,910		3.8	3,837	(55.6)	12,447	5.8	8,426	(0.9)
June 30, 2021	69,296		41.9	8,648	146.4	11,762	292.8	8,501	887.5

Note: Comprehensive income
Six months ended June 30, 2022: ¥32,892 million [63.2%]	Six months ended June 30, 2021: ¥20,157 million [―%]
	Profit per share		Fully diluted
	profit per share
For the six months ended	Yen		Yen
June 30, 2022	129.89		129.86
June 30, 2021	129.10		129.06

(2) Consolidated Financial Position

	Total assets	Net assets		Equity ratio
As of		Millions of yen	Millions of yen		%
June 30, 2022		312,000	286,098		91.7
December 31, 2021		285,704	259,909		90.9
Reference: Shareholders' equity
As of June 30, 2022: ¥286,028 million	As of December 31, 2021: ¥259,817 million

2. Dividends

			Dividends per share
	1st quarter-end	2nd quarter-end	3rd quarter-end	Year-end	Total
	Yen	Yen	Yen	Yen	Yen
Fiscal 2021	―	57.00	―	58.00	115.00
Fiscal 2022	―	67.00
Fiscal 2022 (forecast)			―	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: 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 income	Ordinary income	Profit attributable to	Profit per share
		owners of parent
	Millions of yen		%	Millions of yen	%	Millions of yen	%	Millions of yen	%	Yen
Full year	153,000		13.7	11,500	(16.7)	18,800	(3.9)	13,000	(8.8)	200.77

Note: Amendments to results forecasts that have been disclosed recently: Yes

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:
4. 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
5. 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

Jun. 30, 2022	67,076,362	Dec. 31, 2021	67,843,062
Jun. 30,	2022	2,445,746	Dec. 31, 2021	2,485,728
Jan.-Jun.	2022	64,870,618	Jan.-Jun. 2021	65,854,150

• 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 six months ended June 30, 2022 (January 1-June 30, 2022), the global economy saw economic activity stagnate from a resurgence of new coronavirus infections, high resource prices and logistics costs, and continued shortages in supplies of semiconductors, compounded by supply chain disruptions from the situation in Ukraine, along with the effect of sluggish retail consumption from higher prices. In the United States, in addition to higher inflation caused by a sharp rise resource costs, a stepped-up pace of interest rate increases led to a slowdown in retail consumption, and economic growth was negative. Although a move toward normal economic activity was seen in Europe as countries eased lockdowns in major cities and other coronavirus prevention measures, economies were adversely affected by inflation caused by sharply higher energy prices, the situation in Ukraine, and supply chain disruptions, and economic conditions deteriorated. The Japanese economy showed a gradual recovery as economic activity moved back toward normal on the easing of infection prevention measures. The recovery in emerging market economies was sluggish overall, with a slower pace of growth in the Chinese economy from stagnant economic activity as a result of lockdowns in major urban areas in response to a resurgence of new coronavirus infections.

With regard to markets related to the Mabuchi Group's products, the automotive products market slowed on automotive production adjustments from shortages in supplies of semiconductors, and supply chain disruptions from urban lockdowns in China. The life and industrial products market was solid overall, despite lower demand for certain applications due to lower stay-at-home demand.

Against this backdrop, Mabuchi's motor sales for the first half declined 9.0% year on year in terms of volume, but increased 3.8% year on year in value. As a result, consolidated net sales for the first half were 71,910 million yen (a 3.8% increase year on year), and motor sales, which account for the majority of net sales, were 71,906 million yen (a 3.8% increase 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, this was more than offset by the negative factors including lower sales volume and a rise in commodity prices, resulting in operating income of 3,837 million yen (a 55.6% decrease year on year). Despite this decline in operating income, an increase in foreign exchange gains and other factors resulted in ordinary income of 12,447 million yen (a 5.8% increase year on year). Profit before income taxes was 11,992 million yen (a 0.6% increase year on year), and profit attributable to owners of parent was 8,426 million yen (a 0.9% 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 increased to 52,500 million yen (a 2.1% increase year on year). Sales of medium-sized automotive motors were solid overall, with lower sales of motors for power window lifters and motors for power seats as a result of sluggish automotive production from limited supplies of electronic parts and logistics disruptions caused by the situation in Ukraine and urban lockdowns in China in response to a resurgence of new coronavirus infections, but sales of motors for electric parking brakes grew on an increase in the number of models in which they are installed, and there was a positive effect from the weaker yen. Sales of small automotive motors grew overall, with lower sales of door lock actuators from sluggish automotive production more than offset by an increase in the number of models using Mabuchi's products motors for steering locks and other products, and a positive effect from the weaker yen.

2) Life and Industrial Products Market

Net sales rose to 19,405 million yen (an 8.6% increase year on year). Demand for motors for office equipment from people working at home was flat, and sales of motors for personal care products, home appliances, power tools, and housing equipment declined due to lower stay-at-home demand. On the other hand, sales of motors for health and medical devices rose on solid sales in the midrange and high-

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end toothbrush segment combined with a large contribution from sales of Mabuchi Motor Electromag products including motors for ventilators, and there was also a positive effect from the weaker yen.

(2) Financial Position

Total assets as of June 30, 2022, were 312,000 million yen, a 26,296 million yen increase from the end of the previous fiscal year. Major changes from the end of the previous fiscal year included increases of 14,256 million yen in inventories, 9,112 million yen in property, plant and equipment, and 4,300 million yen in trade notes and accounts receivable.

Total liabilities increased 107 million yen from the end of the previous fiscal year, to 25,902 million yen. Major changes from the end of the previous fiscal year included increases of 520 million yen in trade notes and accounts payable and 391 million yen in other current liabilities, and an 821 million yen decrease in accrued income taxes.

Total net assets increased 26,188 million yen from the end of the previous fiscal year, to 286,098 million yen. This included a 24,732 million yen increase in foreign currency translation adjustments and a 1,307 million yen increase in retained earnings.

(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, high resource prices and logistics costs, shortages of semiconductor supplies, the protracted situation in Ukraine, and accelerating inflation in various countries. Although the U.S. economy continues to grow, supported by solid retail consumption from a favorable hiring and wage environment, aggressive interest rate hikes to rein in rising prices make the outlook unclear. In Europe, growth is expected to slow as the protracted situation in Ukraine is leading to sharp rises in energy costs. The recovery in the Japanese economy is seen being only gradual, as increasing pressure on household budgets from higher resource prices restricts retail consumption. In emerging market economies, a recovery in China from the sluggish economic activity caused by urban lockdowns is expected, but the effect of global inflation is seen leading to a sluggish pace of growth for emerging market economies overall.

With regard to markets related to the Mabuchi Group's products, the outlook for the automotive products market is unclear, in light of production adjustments from shortages of semiconductors and other components and supply chain disruptions from urban lockdowns in China. In the life and industrial products market, we are forecasting solid demand overall despite concerns of a slowdown in retail consumption from higher prices, primarily in products for home appliances, power tools, and housing equipment.

Against this backdrop, we are forecasting full-year consolidated net sales of 153.0 billion yen (a 13.7% increase from the previous year). In terms of profit, although we see a positive effect from factors including improvements in sales prices and the product mix, as well as foreign exchange movements at the weak yen level, with a negative effect from factors including lower sales volumes and higher commodity prices, we are forecasting a 16.7% decrease from the previous year in operating income, to 11.5 billion yen, with ordinary income of 18.8 billion yen (a 3.9% decrease from the previous year), and profit attributable to owners of parent of 13.0 billion yen (an 8.8% decrease from the previous year).

Our dividend forecast is as announced on February 14-afull-year dividend of 135 yen per share, the highest in the Company's history. Although we see the recovery in business results being delayed from elements of uncertainty in our operating environment, including the pandemic, higher material costs, and higher transport expenses, lasting longer than anticipated last year, this dividend payment represents a temporary measure in anticipation of future improvement in business results. Our forecast is for an interim dividend of 67 yen per share (an ordinary dividend of 15 yen and a special dividend of 52 yen) and a year-end dividend of 68 yen per share (an ordinary dividend of 15 yen and a special dividend of 53 yen).

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The exchange rate for the first half of the fiscal year was ¥122.89 to the U.S. dollar, and our forecasts for the second half are based on a foreign exchange rate assumption of ¥125.00 to the U.S. dollar.

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.

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