This document is an English excerpt translation of the Japanese version of the consolidated financial summary of Tsubaki Nakashima has produced for immediate reference purpose. In the event of any discrepancy between the translated document and the Japanese version, the original shall prevail.
Consolidated Financial Results
for the Nine Months Ended September 30, 2022
Unaudited [IFRS]
November 11, 2022 | |
Company name: Tsubaki Nakashima Co., Ltd. | Stock exchange listing: Tokyo Stock Exchange |
Code number: 6464 | URL: https://www.tsubaki-nakashima.com/en/ |
Representative: Koji Hirota, Director and Representative Executive Officer, CEO | |
Contact: Hisashi Tate, Executive Officer, Senior EVP, CFO | Phone: +81-6-6224-0193 |
Scheduled date to file quarterly securities report: November 14, 2022 | |
Scheduled date to commence dividend payments: Not Applicable |
Availability of supplementary briefing material on financial results: Available
Schedule of financial results briefing session: Not Scheduled
(Amounts of less than one million yen are rounded.)
1. Consolidated Financial Results for the Nine months ended September 30, 2022 (January 1, 2022 to September 30, 2022)
(1) Consolidated Operating Results
Sales | Operating profit | Profit before taxes | Net profit for the | |||||||||||||||||||||||||
period | ||||||||||||||||||||||||||||
Nine months ended | Million yen | % | Million yen | % | Million yen | % | Million yen | % | ||||||||||||||||||||
September 30, 2022 | 58,409 | 14.1 | 2,662 | (50.5) | 2,974 | (38.5) | 1,499 | (55.3) | ||||||||||||||||||||
September 30, 2021 | 51,199 | 39.3 | 5,379 | 153.6 | 4,835 | 223.7 | 3,352 | 213.5 | ||||||||||||||||||||
Net profit for the | Total comprehensive | Basic earnings | Diluted earnings | |||||||||||||||||||||||||
period attributable to | ||||||||||||||||||||||||||||
income | per share | per share | ||||||||||||||||||||||||||
owners of the parent | ||||||||||||||||||||||||||||
Nine months ended | Million yen | % | Million yen | % | Yen | Yen | ||||||||||||||||||||||
September 30, 2022 | 1,494 | (55.4) | 13,578 | 77.2 | 36.86 | 36.86 | ||||||||||||||||||||||
September 30, 2021 | 3,352 | 212.9 | 7,662 | - | 83.14 | 82.47 | ||||||||||||||||||||||
(Reference) EBITDA: The nine months ended September 30, 2022: 5,401 million yen (down 31.7%) | ||||||||||||||||||||||||||||
The nine months ended September 30, 2021: 7,912 million yen | ||||||||||||||||||||||||||||
EBITDA = Operating profit + depreciation and amortization. | ||||||||||||||||||||||||||||
(2) Consolidated Financial Position | ||||||||||||||||||||||||||||
Equity attributable to | Ratio of equity | |||||||||||||||||||||||||||
Total assets | Total equity | attributable to | ||||||||||||||||||||||||||
owners of the parent | ||||||||||||||||||||||||||||
owners of the parent | ||||||||||||||||||||||||||||
Million yen | Million yen | Million yen | % | |||||||||||||||||||||||||
As of September 30, 2022 | 179,193 | 65,268 | 65,226 | 36.4 | ||||||||||||||||||||||||
As of December 31, 2021 | 157,174 | 53,369 | 53,335 | 33.9 | ||||||||||||||||||||||||
2. Dividends | ||||||||||||||||||||||||||||
Annual dividends | ||||||||||||||||||||||||||||
1st | 2nd | 3rd | Year-end | Total | ||||||||||||||||||||||||
quarter-end | quarter-end | quarter-end | ||||||||||||||||||||||||||
Yen | Yen | Yen | Yen | Yen | ||||||||||||||||||||||||
Fiscal year ended December 31, 2021 | - | 28.00 | - | 16.00 | 44.00 | |||||||||||||||||||||||
Fiscal year ending December 31, 2022 | - | 13.00 | ||||||||||||||||||||||||||
Fiscal year ending December 31, 2022 | 17.00 | 30.00 | ||||||||||||||||||||||||||
(Forecast) | ||||||||||||||||||||||||||||
(Note) Revision to the forecast for dividends announced most recently: No |
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3. Consolidated Financial Results Forecast for the Fiscal Year Ending December 31, 2022 (January 1, 2022 to December 31, 2022)
(% indicates changes from the previous corresponding period.)
Net profit for the | Basic earnings | ||||||||
Sales | Operating profit | Profit before taxes | period attributable to | ||||||
per share | |||||||||
owners of the parent | |||||||||
Million yen | % | Million yen | % | Million yen | % | Million yen | % | Yen | |
Full year | 78,000 | 1.3 | 4,100 | (27.4) | 4,100 | (10.0) | 2,300 | (5.4) | 56.77 |
(Note) Revision to the forecast for dividends announced most recently: Yes |
* Notes:
- Changes in significant subsidiaries during the period under review (changes in specified subsidiaries resulting in changes in scope of consolidation): No
- Changes in accounting policies and changes in accounting estimates
- Changes in accounting policies required by IFRS: No
- Changes in accounting policies other than 1) above: No
- Changes in accounting estimates: No
- Total number of issued shares (common shares)
- Total number of issued shares at the end of the period (including treasury shares):
September 30, 2022: 41,589,600 shares
December 31, 2021: 41,571,500 shares
- Total number of treasury shares at the end of the period: September 30, 2022: 1,542,615 shares December 31, 2021: 1,019,286 shares
- Average number of shares during the period:
Nine months ended September 30, 2022: 40,516,405 shares
Nine months ended September 30, 2021: 40,313,845 shares
*These financial results are outside the scope of audit by a certified public accountant or an audit corporation. *Explanation of the proper use of financial results forecast and other notes:
The earnings forecasts and other forward-looking statements herein are based on information currently available to the Company and certain assumptions deemed to be reasonable and are not intended to be construed as assurance that they will be accomplished in the future. Actual results may differ significantly from these forecasts due to a wide range of factors.
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1. Qualitative Information on Financial Results
(1) Explanation of Business Results
During the nine months of the fiscal year, while Asian economies, especially China, have been recovering steadily since the lifting of lockdown against the coronavirus, supply shortages and price hikes of food, resources, and other commodities in Europe and the United States due to prolonged war and economic sanctions have become significant downside factors for the global economy. Furthermore, the trend of yen depreciation, which has not been halted by the increase in the U.S. policy interest rate and the widening interest rate differential between Japan and the U.S., is restraining the recovery of consumption and slowing the pace of global economic recovery.
Under these circumstances, sales for the nine months of the fiscal year increased 14.1% year-on-year to 58,409 million yen, contribution with a steady increase in EV production, demand for machine tools, price pass-through of surging raw material and utility costs, and the continued effect of the yen's rapid depreciation. Operating profit decreased 50.5% year-on-year to 2,662 million yen, due to expenses of 2.3 billion yen incurred in the second quarter for business restructuring of the roller business in Europe, and price hikes in raw materials, utilities and other costs that were not passed on to customers, despite the increase in sales and cost improvements. Net profit attributable to owners of the parent decreased 55.4% year-on-year to 1,494 million yen.
We will continue to take effective measures to improve our business performance as soon as possible, focusing on cost improvement and promotion of growth strategies.
The segment performance is as follows. Precision Components Business
Sales in the segment increased 14.7% year-on-year to 54,387 million yen, mainly due to continued growth in demand for ceramic balls for machine tools and EVs, as well as for steel balls in Asia.
Segment profit (operating profit) decreased 50.0% year-on-year to 2,421 million yen, reflecting expenses of 2.3 billion yen for business restructuring of the roller business in Europe.
Linear Business
Sales in the segment increased 6.6% year-on-year to 4,021 million yen due to stable demand for machine tools. Segment profit (operating profit) decreased 56.9% year-on-year to 225 million yen due to the impact of the product mix and soaring prices of raw materials and other items.
(2) Explanation of Financial Position
Total assets at the end of the third quarter increased by 22,019 million yen from the end of the previous fiscal year to 179,193 million yen. This was mainly due to an increase of 5,226 million yen in trade and other receivables and 8,198 million yen in inventories, while a decrease of 7,692 million yen in cash and cash equivalents caused current assets to increase by 6,982 million yen. Non-current assets increased by 15,037 million yen mainly due to increases in property, plant and equipment by 5,200 million yen, intangible assets and goodwill by 4,556 million yen, and other non-current assets by 5,374 million yen, attributable to the depreciation of the yen.
Liabilities increased by 10,120 million yen from the end of the previous fiscal year to 113,925 million yen. This was mainly due to an increase in trade and other payables, other current liabilities, and bonds and borrowings, excluding current portion due to the depreciation of the yen.
Equity increased by 11,899 million yen from the end of the previous fiscal year to 65,268 million yen. This was mainly due to an increase of 12,076 in accumulated other comprehensive income, reflecting the appreciation of the US dollar and the Euro since the end of the previous fiscal year.
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(Analysis of Status of Cash Flows)
The cash flow status and factors for each activity during the nine months of the fiscal year are as follows.
Net cash used by operating activities was 3,791 million yen due to an increase in trade and other receivables and inventories.
Net cash used in investing activities was 3,963 million yen, mainly due to the payments for acquisition of property, plant and equipment.
Net cash used in financing activities was 1,295 million yen, mainly due to cash dividends paid and payments for acquisition of treasury stock. After adding the foreign currency translation adjustments of 1,357 million yen, mainly due to the appreciation of the U.S. dollar and Euro during the period, cash and cash equivalents at the end of the period totaled 24,832 million yen, a decrease of 7,692 million yen from the end of the previous fiscal year.
(3) Explanation of Consolidated Financial Results Forecast and Other Forward-looking Information
The consolidated earnings forecast for the fiscal year ending December 31, 2022 has been revised from that announced on February 15, 2022, in light of recent business performance trends and other factors. For details, please refer to the "Notice of Revisions to Earnings Forecasts" released today.
2. Summary Information (Notes)
- Changes in significant subsidiaries during the period Not Applicable
- Changes in accounting policies and accounting estimates Not Applicable
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3. Consolidated Financial Statements
(1) Consolidated Statements of Financial Position
(Millions of yen) | ||||
As of December 31, 2021 | As of September 30, 2022 | |||
Assets | ||||
Current assets | ||||
Cash and cash equivalents | 32,524 | 24,832 | ||
Trade and other receivables, net | 15,096 | 20,322 | ||
Inventories | 28,021 | 36,219 | ||
Other current assets | 1,389 | 2,639 | ||
Total current assets | ||||
77,030 | 84,012 | |||
Non-current assets | ||||
Property, plant and equipment, net | 32,370 | 37,570 | ||
Intangible assets, net and goodwill | 46,878 | 51,434 | ||
Other investments | 293 | 200 | ||
Deferred tax assets | 480 | 480 | ||
Other non-current assets | 123 | 5,497 | ||
Total non-current assets | ||||
80,144 | 95,181 | |||
Total assets | ||||
157,174 | 179,193 | |||
Liabilities and equity | ||||
Liabilities | ||||
Current liabilities | ||||
Trade and other payables | 6,551 | 8,081 | ||
Current portion of borrowings | 12,030 | 8,000 | ||
Income taxes payable | 1,365 | 1,638 | ||
Other current liabilities | 4,864 | 7,339 | ||
Total current liabilities | ||||
24,810 | 25,058 | |||
Non-current liabilities | ||||
Bonds and borrowings, excluding current portion | 71,958 | 82,206 | ||
Net defined benefit liability | 2,507 | 2,447 | ||
Deferred tax liabilities | 2,172 | 2,072 | ||
Other non-current liabilities | 2,358 | 2,142 | ||
Total non-current liabilities | ||||
78,995 | 88,867 | |||
Total liabilities | ||||
103,805 | 113,925 | |||
Equity | ||||
Share capital | 17,102 | 17,112 | ||
Capital surplus | 11,415 | 11,484 | ||
Treasury stock | (1,648) | (2,229) | ||
Accumulated other comprehensive income (loss) | (1,378) | 10,698 | ||
Retained earnings | 27,844 | 28,161 | ||
Equity attributable to owners of the parent | ||||
53,335 | 65,226 | |||
Non-controlling interests | 34 | 42 | ||
Total equity | ||||
53,369 | 65,268 | |||
Total liabilities and equity | ||||
157,174 | 179,193 | |||
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Tsubaki Nakashima Co. Ltd. published this content on 11 November 2022 and is solely responsible for the information contained therein. Distributed by Public, unedited and unaltered, on 11 November 2022 07:11:01 UTC.