Mitsuba : Consolidated Financial Results for Fiscal Year Ended March 31, 2022 (Under Japanese GAAP)

Consolidated Financial Results for Fiscal Year Ended March 31, 2022 (Under Japanese GAAP)

						05/11/2022
Listed company				Listing:
name:	MITSUBA Corporation				Tokyo Stock Exchange
Securities code:	7280			URL	https://www.mitsuba.co.jp
Representative:	(Title)	Representative Director, President	(Name)	Katsuyoshi Kitada
Inquiries:	(Title)	Operating Officer and General		(Name)
		Manager of Accounting and
		Finance Department			Yoshiaki Takei	(TEL) 0277-52-0113
Scheduled date of the annual general meeting of shareholders:		June 23, 2022
Scheduled date of securities report filing:		June 23, 2022
Scheduled date to commence dividend payments:		June 8, 2022
Preparation of supplementary materials on financial results:	:	Yes
Holding of financial results briefing:		:	Yes (for analysts)
				(Yen amounts are rounded down to nearest million,
						unless otherwise noted.)

1. Consolidated financial results for fiscal year ended March 31, 2022 (from April 1, 2021 to March 31, 2022)

(1) Consolidated operating results

(Percentages indicate year-on-year changes.)

	Net sales		Operating profit	Ordinary profit	Profit attributable to
		owners of parent
	Millions of yen		%	Millions of yen	%	Millions of yen	%	Millions of yen	%
Fiscal year ended March 2022	286,482		6.4	7,187	(15.9)	7,529	(13.9)	83	(88.5)
Fiscal year ended March 2021	269,202		(11.5)	8,548	0.2	8,748	26.9	732	-

Note: Comprehensive income	Fiscal year ended March 2022	¥13,244 million	[(1.5)%]
	Fiscal year ended March 2021	¥13,442 million	[-%]
	Basic earnings	Diluted earnings	Return on		Ratio of ordinary	Ratio of operating
	per share	per share	equity		profit to total assets	profit to net sales
	Yen	Yen	%		%	%
Fiscal year ended March 2022	1.87	1.46	0.1		2.2	2.5
Fiscal year ended March 2021	16.36	14.30	1.7		2.7	3.2

Reference: Share of profit (loss) of entities accounted for using equity method

Fiscal year ended March 2022	¥69 million
Fiscal year ended March 2021	¥254 million

(2) Consolidated financial position
	Total assets		Net assets	Equity-to-asset ratio	Net assets per share
	Millions of yen		Millions of yen	%	Yen
As of March 31, 2022	342,750		88,201	19.8	1,052.91
As of March 31, 2021	343,136		76,217	17.0	847.31
Reference: Equity	As of March 31, 2022	¥68,024 million
	As of March 31, 2021	¥58,372 million

(3) Consolidated cash flows

	Cash flows from	Cash flows from	Cash flows from	Cash and cash equivalents
	operating activities	investing activities	financing activities	at end of period
	Millions of yen	Millions of yen	Millions of yen	Millions of yen
Fiscal year ended March 2022	11,996	(6,842)	(13,025)	73,267
Fiscal year ended March 2021	15,410	(6,655)	12,816	77,389

2. Cash dividends

			Annual dividends per share			Total cash			Ratio of
		First	Second	Third	Fiscal			dividends	Payout ratio		dividends to
		quarter-	quarter-	quarter-	Total		(Consolidated)		net assets
		year-end		(Total)
		end	end	end				(Consolidated)
		Yen	Yen	Yen	Yen	Yen		Millions of yen	%	%
Fiscal year ended March 2022	-	0.00	-	0.00	0.00	-	-	-
Fiscal year ended March 2021	-	0.00	-	3.00	3.00	134	160.0	0.3
Fiscal year ending March	-	0.00	-	3.00	3.00			4.3
2023 (Forecast)
Note:	"Cash dividends" above presents the status of dividends related to common	stocks. Please	refer to "Cash dividends of class
	stock," mentioned later, for the status of dividends related to class stocks (unlisted) that have different rights from common
	stocks that the Company issues.

3. Consolidated earnings forecast for the fiscal year ending March 31, 2023 (from April 1, 2022 to March 31, 2023)

(Percentages indicate change from the previous corresponding period.)

	Net sales		Operating profit	Ordinary profit	Profit attributable	Basic earnings
		to owners of parent	per share
	Millions of yen		%	Millions of yen	%	Millions of yen	%	Millions of yen	%	Yen
First 6 months	155,000		13.2	2,000	(42.5)	1,200	(65.6)	(1,000)	-	(32.43)
Full year	330,000		15.2	11,000	53.1	9,600	27.5	4,000	-	69.26

• Notes

1. Changes in significant subsidiaries during the period (changes in specified subsidiaries

resulting in the change in scope of consolidation)

: None

1. Changes in accounting policies, changes in accounting estimates, and restatement

1. Changes in accounting policies due to revisions to accounting standards and other

	regulations	:	Yes
2)	Changes in accounting policies due to other reasons	:	None
3)	Changes in accounting estimates	:	None
4)	Restatement	:	None

(3) Number of issued shares (common shares)
1)	Total number of issued shares at the end of the	As of March 31,	45,581,809	As of March 31,	45,581,809
	period (including treasury shares)	2022	shares	2021	shares
2)	Number of treasury shares at the end of the	As of March 31,	825,524	As of March 31,	825,208
	period	2022	shares	2021	shares
3)	Average number of shares outstanding during	Fiscal year ended	44,756,405	Fiscal year ended	44,756,794
	the period (quarterly total)	March 2022	shares	March 2021	shares

[Reference] Overview of non-consolidated financial results

1. Non-consolidated financial results for the fiscal year ended March 31, 2022 (from April 1, 2021 to March 31, 2022)
(1) Non-consolidated operating results					(Percentages indicate year-on-year changes.)
	Net sales		Operating profit	Ordinary profit	Profit
	Millions of yen		%	Millions of yen	%	Millions of yen	%	Millions of yen		%
Fiscal year ended March	130,679		3.3	135	-	2,387	302.5	2,768		-
2022
Fiscal year ended March	126,525	(11.8)	(562)	-	593	(79.1)	(1,734)		-
2021
	Basic earnings per	Diluted earnings
	share			per share
		Yen		Yen
Fiscal year ended March	61.86		48.09
2022
Fiscal year ended March	(38.76)		-
2021
(2) Non-consolidated financial position
	Total assets		Net assets	Equity-to-asset ratio	Net assets per share
	Millions of yen	Millions of yen		%			Yen
Fiscal year ended March		236,069		42,320		17.9			478.60
2022
Fiscal year ended March		245,512		40,507		16.5			448.16
2021
Reference: Equity	Fiscal year ended March 2022	¥42,320 million
	Fiscal year ended March 2021	¥40,507 million

• Financial results reports are exempt from audits conducted by certified public accountants or an audit corporation.
• Proper use of earnings forecasts, and other special matters
  Earnings forecasts and other forward-looking statements in this report are based on information currently available to the Company and certain assumptions that the Company deems reasonable. Therefore, actual results and others may differ materially due to a variety of factors.
  Please refer to "(4) Future Outlook in 1. Overview of Operating Results" on page 3 of the attachment material for cautionary notes regarding underlying assumptions for and the use of earnings forecasts.

(How to access the supplementary materials on financial results)

The Company plans to hold an online financial results briefing on May 20, 2022. The materials on financial results to be used at this briefing are scheduled to be posted on the Company's website.

Cash dividends of class stock

The following is the breakdown of dividends per share related to class stocks that have different rights from common stocks.

			Annual dividends per share
		First quarter-end	Second quarter-end	Third quarter-end		Fiscal year-end	Total
Class A stock	Yen	Yen	Yen		Yen	Yen
Fiscal year ended March	-	0.00	-
2021						30,000.00	30,000.00
Fiscal year ended March	-	0.00	-
2022						60,085.90	60,085.90
Fiscal year ending March	-	0.00	-
2023 (Forecast)					60,000.00	60,000.00
Note:	The dividends for the fiscal year ended March 2022 will be paid out from capital surplus. For details, please refer to
	"Breakdown of dividends to be paid out from capital surplus" mentioned later.

Breakdown of dividends to be paid out from capital surplus

The following is a breakdown of dividends for the fiscal year ended March 2022 that will be paid out from capital surplus.

	Record date	Fiscal year-end	Total
Dividend per share	60,085.90 yen	60,085.90 yen
Total dividends	901 million yen	901 million yen
Note:	Ratio of decrease of net assets: 0.022

○ Table of Contents of Attachments
1. Overview of Operating Results ...............................................................................................................................	5
(1)	Overview of Operating Results for Fiscal Year under Review ..........................................................................	5
(2)	Overview of Financial Position for Fiscal Year under Review ...........................................................................	6
(3)	Overview of Cash Flows for Fiscal Year under Review .....................................................................................	6
(4)	Future Outlook ..................................................................................................................................................	6
(5)	Basic Policy concerning the Allocation of Profits and Dividends for Fiscal Year under Review and Next
	Fiscal Year ........................................................................................................................................................	7
2. Basic Approach to Selection of Accounting Standards ...............................................................................................	7
3. Consolidated Financial Statements and Key Notes .................................................................................................	8
(1)	Consolidated Balance Sheet ................................................................................................................................	8
(2)	Consolidated Statement of Income and Consolidated Statement of Comprehensive Income .........................	10
	Consolidated Statement of Income ................................................................................................................	10
	Consolidated Statement of Comprehensive Income ......................................................................................	11
(3)	Consolidated Statement of Changes in Equity ................................................................................................	12
(4)	Consolidated Statement of Cash Flows .............................................................................................................	14
(5)	Notes to Consolidated Financial Statements .....................................................................................................	16
	(Notes to assumptions for going concerns) ......................................................................................................	16
	(Significant Accounting Policies for Preparing Consolidated Financial Statements) ......................................	16
	(Changes in Accounting Policies) ....................................................................................................................	16
	(Segment Information) ....................................................................................................................................	18
	(Matters Related to Revenue Recognition) ......................................................................................................	19
	(Per Share Information) ...................................................................................................................................	20
	(Important Subsequent Events) .......................................................................................................................	21
4. Others ......................................................................................................................................................................	21
（1） Change of Directors ………………………………………………………………………………………21

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1. Overview of Operating Results

(1) Overview of Operating Results for Fiscal Year under Review

In the consolidated fiscal year under review, the global economy saw the easing of various restrictions and regulations against the spread of COVID-19. In the US and Europe, the economic conditions have picked up with consumption and capital investment increasing moderately. In Asia as well, there are signs of improvement, but the economic recovery has slowed down in China. In Japan, consumption and corporate earnings have started reviving, and economic and social activities are expected to return to normal down the road.

However, the outlook for the global economy is uncertain mainly due to surging prices of crude oil, natural gas and other natural resources, and the impact of economic sanctions that Western countries imposed on Russia with the Russian invasion of Ukraine since the end of the fiscal year under review.

In the automotive industry, the number of four-wheeled vehicles sold globally was 81,306 thousand units in calendar year 2021 (up 4.6% year on year). The U.S. continues to be affected by supply shortages of semiconductors, but has recovered from the impact of COVID-19 infections that spread last year. The number of cars sold there reached 15,079 thousand units in the calendar year (up 3.4% from the previous year), the first year-on-year increase in three years. Europe has recovered from the impact of COVID-19 infections that spread last year. The number of cars sold there reached 11,775 thousand units in the calendar year (up 1.8% from the previous year), the first year-on-year increase in two years. China has recovered from the impact of COVID-19 infections that spread last year. The number of cars sold there reached 26,275 thousand units in the calendar year (up 3.8% from the previous year), the first year-on-year increase in four years. In Japan, the number of cars sold was 4,216 thousand units in FY2021 (down 9.5% from the previous fiscal year), posting a year-on-year decrease for three consecutive years. The number of registrations was 2,661 thousand units (down 8.2% year on year), a year-on-year decrease for five consecutive years. Registrations of mini cars was 1,555 thousand units (down 11.5% year on year), a year-on-year decrease for three consecutive years.

On the other hand, global sales of two-wheeled vehicles was 14,470 thousand units in the calendar year (up 3.7% from the previous year), the first year-on-year increase in three years. The increase was a rebound from a sales decline in India, the largest market, caused by COVID-19 infections that spread last year. Indonesia has recovered from the impact of COVID-19 infections that spread last year. The number sold there reached 5,139 thousand units in the calendar year (up 37.3% from the previous year), the first year-on-year increase in three years.

In Japan, the number sold was 379 thousand units in the calendar year (up 16.2% from the previous year), the first year-on- year increase in eight years. The increase was due to a rise in motorcycle type 1 (50cc or less), motorcycle type 2 (125cc or less) and small-size motorcycle (over 250cc) despite a decline in mini-size motorcycles (250cc or less).

Under these circumstances, the Group has steadily pursued the key policies in its 12th midterm management plan (from FY2020 to FY2024): "Business restructuring," "Reinforcement of corporate structure," and "Measures aimed at next-generation businesses." During the consolidated fiscal year under review, the Company decided to withdraw from the four-wheeled car lamp business as part of the selection and concentration of businesses and closed down the Niigata Plant for the purpose of optimizing its production system. Moreover, the Company decided to relocate the Yokohama R&D Center with the aim of realizing the most effective organization and sold the real property of the center. The Company continues to hold down capital investment and cut expenses on a global basis, and strives to reinforce its corporate structure through measures including the disposal of shares held strategically from the viewpoint of improving assets efficiency.

As a result, consolidated financial results for the consolidated fiscal year under review are as follows: Consolidated net sales increased from the previous year to 286,482 million yen (up 6.4% year on year) mainly due to the lessening impact of COVID- 19 infections and an ease in production cutbacks of auto manufacturers caused by supply shortages of semiconductors. However, consolidated operating profit and ordinary profit decreased from the previous year to 7,187 million yen (down 15.9% year on year) and 7,529 million yen (down 13.9% year on year), respectively, primarily because of a rise in materials costs resulting from surging prices of raw materials and an increase in distribution costs caused by disruption in the logistics network. Profit attributable to owners of parent was 83 million yen (down 88.5% year on year) mainly due to the recording of 1,586 million yen, which was expenses incurred in connection with infection prevention measures and lockdowns in Asia, in loss on disaster as well as the posting of provision for business restructuring of 1,420 million yen in extraordinary losses.

Operating results by business segment are presented as follows.

In the Transportation equipment-related operations, although net sales increased year on year to 268,177 million yen (up 7.3% from the previous year), as mentioned before, segment profit decreased from the previous year to 5,405 million yen (down 20.7% year on year) due to a combination of cost-increasing factors.

In the Information service operations, net sales decreased year on year to 15,501 million yen (down 6.8% year on year) mainly due to the postponement of introduction of IT systems by delayed procurement of hardware, resulting from semiconductor shortages in the social and industrial business segment, although sales of IT systems for municipalities in the public works segment remained steady. However, segment profit was 1,426 million yen (down 0.4% year on year), maintaining the level of the previous year primarily due to the effect of expense reduction.

In Other operations, net sales were 6,678 million yen (up 5.6% year on year), and segment profit was 346 million yen (up 19.5% year on year) as products for cars and motorcycles remained strong.

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