This document has been translated from the Japanese original for reference purposes only. In the event of any discrepancy between this translated document and the Japanese original, the original shall prevail. The Company assumes no responsibility for this translation or for direct, indirect or any other forms of damages arising from the translation.

Summary of Consolidated Financial Results for the First Half of FY2022 (Unaudited)

(January 1, 2022

- June 30, 2022) [Japanese Standard] (Consolidated)

July

26, 2022

Company Name:

Shimano Inc.

Stock Exchange: Tokyo, Prime Market

Code Number:

7309

URL: https://www.shimano.com

Representative:

Taizo Shimano, President

Contact:

Takuma Kanai, Executive Officer, General Affairs Administration Dept.

Telephone: +81-72-223-3254

and Supervising of Accounting Dept.

Date of filing of quarterly report to Ministry of Finance:

August 10, 2022

Scheduled payment date for dividends: September 2, 2022

Supplemental information:

Yes

Financial results briefing:

Yes

(Amounts are rounded down to the nearest million yen.)

1. Consolidated financial results for the First Half of FY2022 (January 1, 2022 - June 30, 2022)

(1) Consolidated income information

(The percentages represent the rates of increase (decrease) compared to the corresponding prior period.)

Net sales

Operating income

Ordinary income

Net income attributable

to owners of parent

Million yen

%

Million yen

%

Million yen

%

Million yen

%

First Half of FY2022

303,686

14.7

80,909

15.7

92,123

24.7

68,558

22.4

First Half of FY2021

264,694

65.2

69,922

143.9

73,900

104.5

56,007

79.5

(Note) Comprehensive income

First

Half of FY2022: 129,308 million yen (71.2%)

First Half of FY2021: 75,520 million yen (362.3%)

Basic earnings

Diluted earnings

per share

per share

Yen

Yen

First Half of FY2022

750.68

First Half of FY2021

604.18

(2) Consolidated balance sheet information

Total assets

Net assets

Shareholders' equity

ratio

Million yen

Million yen

%

First Half of FY2022

803,401

713,413

88.7

FY2021

705,370

616,651

87.3

(Reference) Shareholders' equity

First Half of FY2022: 712,527 million yen

FY2021:

615,992 million yen

2. Dividend information

Dividend per share

1st Quarter

2nd Quarter

3rd Quarter

Year-end

Total

Yen

Yen

Yen

Yen

Yen

FY2021

117.50

117.50

235.00

FY2022

117.50

FY2022 (Forecast)

117.50

235.00

(Note) Change in forecasted dividend during the period: None

3. Forecasted consolidated business performance for FY2022 (January 1, 2022 - December 31, 2022)

(The percentages represent the rates of increase (decrease) compared to the corresponding prior period.)

Net income

Basic earnings

Net sales

Operating income

Ordinary income

attributable to

per share

owners of parent

Million yen

%

Million yen

%

Million yen

%

Million yen

%

Yen

FY2022

580,000

6.1

161,000

8.6

174,500

14.4

128,400

10.7

1,408.84

(Notes) 1. Change in forecasted consolidated business performance during the period: Yes

2. Effective from the beginning of FY2022, the Company has adopted the "Accounting Standard for Revenue Recognition" (ASBJ Statement No. 29), etc. Accordingly, the above forecasts of consolidated business performance reflect the adoption of this accounting standard, etc. As the application of the said standard, etc. has no effect on consolidated income information, the rates of increase (decrease) compared to the corresponding prior period are calculated based on consolidated business performance for FY2021.

*Notes

(1) Changes in significant subsidiaries during the period (Changes in specified subsidiaries due to changes in scope of consolidation): Yes

New inclusion: - (Company name)

Exclusion: 1 (Company name) DashAmerica, Inc. (Pearl Izumi USA)

  1. Application of accounting treatment specific to preparation of quarterly consolidated financial statements: None
  2. Changes in accounting policies, changes in accounting estimates, and retrospective restatement

Changes in accounting policies in accordance with revision of accounting standards:

Yes

Changes in accounting policies other than above:

None

Changes in accounting estimates:

None

Retrospective restatement:

None

(4) Number of shares of common stock issued

Number of shares of common stock issued at period-end

First Half of

91,160,100

FY2021

92,390,000

(including treasury stock):

FY2022

shares

shares

Number of shares of treasury stock at period-end:

First Half of

21,117

FY2021

420,938

FY2022

shares

shares

Average number of shares during the period

First Half of

91,329,328

First Half of

92,699,635

(cumulative from the beginning of the fiscal year):

FY2022

shares

FY2021

shares

This quarterly financial report is outside the scope of quarterly review procedures by certified public accountants or audit corporations.

Explanation regarding the appropriate use of forecasts of business performance and other special items

The forecasts of consolidated business performance and other forward-looking statements contained in this document are based on information currently available to the Company and certain assumptions that management believes reasonable and actual business performance may differ materially from those described in such statements due to various factors. For details of assumptions for the forecasts and other related items, please refer to Page 4 of the attached document. Shimano Inc. accepts no liability whatsoever for any direct or consequential loss arising from any use of this document.

Shimano Inc. (7309) Summary of Consolidated Financial Results for the First Half of FY2022

○Table of contents of the attached document

1. Qualitative Information on Consolidated Financial Performance for the Period under Review.

.............................. 2

(1)

Results of Operations ...........................................................................................................................................

2

(2)

Financial Position .................................................................................................................................................

3

(3)

Forecast for the Fiscal Year Ending December 31, 2022......................................................................................

4

2. Consolidated Financial Statements and Primary Notes ............................................................................................

5

(1)

Consolidated Balance Sheets................................................................................................................................

5

(2)

Consolidated Statements of Income and Comprehensive Income........................................................................

7

(3)

Consolidated Statements of Cash Flows ..............................................................................................................

9

(4)

Notes relating to Consolidated Financial Statements ..........................................................................................

11

(Note concerning Assumption of Going Concern) ...........................................................................................

11

(Note on Significant Change in the Amount of Shareholders' Equity).............................................................

11

(Changes in Significant Subsidiaries during the Period) ..................................................................................

11

(Changes in Accounting Policies).....................................................................................................................

11

(Segment Information) .....................................................................................................................................

12

1

Shimano Inc. (7309) Summary of Consolidated Financial Results for the First Half of FY2022

1. Qualitative Information on Consolidated Financial Performance for the Period under Review

  1. Results of Operations

During the first half of fiscal year 2022, while restrictions on economic activities to tackle the spread of the novel coronavirus (COVID-19) were eased, the pace of global economic recovery remained at a standstill due to soaring global resource prices caused by the situation in Ukraine, rising inflation and a slowdown in the Chinese economy, among other factors.

In Europe, although restrictions on movements were eased and the normalization of economic activities progressed, soaring energy prices caused inflation, which deteriorated consumer sentiment rapidly.

In the U.S., while the acceleration of inflation put downward pressure on economy, personal consumption remained steady backed by household savings accumulated by economic measures, in addition to sustained recovery in the labor market.

In China, under the zero-COVID strategy, restrictions on economic activities were tightened and personal consumption continued to be sluggish.

In Japan, there remained strong uncertainty over the rise in resource prices and the outlook for the situation of COVID-19. However, signs of a pickup were seen in personal consumption as the normalization of economic activities progressed.

In this environment, while some of the Shimano Group's factories experienced temporary shutdown due to lockdowns, demand for bicycles and fishing tackle remained firm, although showing signs of cooling down, and for the first half of fiscal year 2022, net sales increased 14.7% from the same period of the previous year to 303,686 million yen. Operating income increased 15.7% to 80,909 million yen, ordinary income increased 24.7% to 92,123 million yen, and net income attributable to owners of parent increased 22.4% to 68,558 million yen.

Reportable Segment Overview

  • Bicycle Components

Although strong interest in bicycles that attracted attention globally started to cool down, demand for bicycles remained above the pre-COVID-19 levels. In terms of market inventories of completed bicycles, those of high-end class bicycles remained at a low level, as strong demand continued. Meanwhile, those of entry-class bicycles were at a high level as their supply caught up with the demand.

Overseas, in the European market, sales of bicycles and bicycle-related products remained firm backed by demand for e-bikes that remained strong. Market inventories of completed bicycles approached appropriate levels as demand in some regions showed signs of cooling down.

In the North American market, while demand for high-end class completed bicycles remained firm and market inventories remained at a low level, demand for middle-class bicycles showed signs of cooling down.

In the Asian and South and Central American markets, strong interest in bicycles cooled off. In the Japanese market, while demand for sport bikes and E-BIKE remained firm, retail sales were sluggish due partly to the inventory shortages of entry-class road bikes.

Under these market conditions, order-taking was brisk for a wide range of products, including the high- end models for road bikes, DURA-ACE and ULTEGRA, and sport E-BIKE components, SHIMANO STEPS series.

As a result, net sales from this segment increased 17.2% from the same period of the previous year to 249,203 million yen, and operating income increased 20.2% to 69,581 million yen.

  • Fishing Tackle

Strong interest in fishing that attracted attention globally showed signs of cooling down.

In the Japanese market, while there were signs of a lull in the movement of products for families and beginners, sales of high- and mid-priced products were strong.

Overseas, in the North American market, although there were concerns about the impact of inflation, demand for fishing tackle remained strong, and sales remained favorable.

In the European market, sales remained firm despite the prolonged situation in Ukraine that affected neighboring countries.

In the Asian market, while sales in the Korean and Taiwanese markets remained strong, sales in the Chinese market were affected by restrictions on activities due to lockdowns.

In the Australian market, sales remained firm despite natural disasters such as flooding on the East Coast. Under these market conditions, new products such as spinning reels STELLA and double spindle reels ALDEBARAN BFS were well-received in the market. In addition, spinning reels AERO TECHNIUM MGS, offshore rods GRAPPLER and GRAPPLER BB, and other products continued to make a great contribution

2

Shimano Inc. (7309) Summary of Consolidated Financial Results for the First Half of FY2022

to sales.

As a result, net sales from this segment increased 4.5% from the same period of the previous year to 54,235 million yen, and operating income decreased 5.8% to 11,335 million yen.

  • Others

Net sales from this segment increased 14.2% from the same period of the previous year to 248 million yen and operating loss of 7 million yen was recorded, following an operating income of 3 million yen for the same period of the previous year.

  1. Financial Position
    Assets, Liabilities and Net Assets
    Total assets as of the end of the first half of fiscal year 2022 amounted to 803,401 million yen, an increase of 98,030 million yen compared with the figure as of the previous fiscal year-end. The principal factors included an increase of 53,557 million yen in cash and time deposits, an increase of 14,369 million yen in merchandise and finished goods, an increase of 12,298 million yen in buildings and structures, an increase of 9,660 million yen in notes and accounts receivable-trade, and a decrease of 11,301 million yen in construction in progress.
    Total liabilities amounted to 89,988 million yen, an increase of 1,268 million yen compared with the figure as of the previous fiscal year-end. The principal factors included an increase of 6,420 million yen in others under current liabilities, a decrease of 3,131 million yen in short-term loans payable, and a decrease of 1,692 million yen in income taxes payable.
    Net assets amounted to 713,413 million yen, an increase of 96,762 million yen compared with the figure as of the previous fiscal year-end. The principal factors included an increase of 60,143 million yen in foreign currency translation adjustments and an increase of 22,933 million yen in retained earnings.
    Cash Flows
    As of the end of the first half of fiscal year 2022, cash and cash equivalents amounted to 406,627 million yen, an increase of 48,853 million yen compared with the figure as of the previous fiscal year-end.
    (Cash Flows from Operating Activities)
    Net cash provided by operating activities amounted to 48,615 million yen compared with 58,907 million yen provided for the same period of the previous year. The main cash inflows included income before income taxes amounting to 90,282 million yen. The main cash outflows included income taxes paid amounting to 25,981 million yen, and inventories amounting to 13,355 million yen.
    (Cash Flows from Investing Activities)
    Net cash used in investing activities amounted to 13,698 million yen compared with 10,772 million yen used for the same period of the previous year. The main cash inflows included proceeds from sales of shares of subsidiaries resulting in change in scope of consolidation amounting to 4,867 million yen. The main cash outflows included acquisition of property, plant and equipment amounting to 8,395 million yen, purchases of time deposits amounting to 3,678 million yen, acquisition of intangible assets amounting to 3,349 million yen, and acquisition of investment securities amounting to 3,000 million yen.
    (Cash Flows from Financing Activities)
    Net cash used in financing activities amounted to 36,339 million yen compared with 26,195 million yen used for the same period of the previous year. The main cash outflows included acquisition of treasury stock amounting to 21,685 million yen and cash dividends to shareholders amounting to 10,804 million yen.

3

This is an excerpt of the original content. To continue reading it, access the original document here.

Attachments

  • Original Link
  • Original Document
  • Permalink

Disclaimer

Shimano Inc. published this content on 26 July 2022 and is solely responsible for the information contained therein. Distributed by Public, unedited and unaltered, on 26 July 2022 07:08:04 UTC.