Union Tool : Announcement of FY 12/2023 Q2 Summary Report （1,055KB）

Consolidated Financial Results for the first half

of Fiscal Year ending December 31, 2023

August 8, 2023

Listed Company Name ………..	UNION TOOL CO.
Shares Listed …………………..	Tokyo Stock Exchange Code No. 6278
Head Office ……………………	6-17-1,Minami-Ohi,Shinagawa-ku, Tokyo 140-0013
URL …………………………...	https:// www.uniontool.co.jp
CEO …………………………...	Takao Katayama
Contact ………………………...	Norimasa Kurata, Executive Officer Tel [phone]

Date of the Q2 financial reports to be presented to Ministry of Finance Japan : August 8, 2023

Date of the interim dividends to be paid : September 5, 2023

1. Financial results for the first half of FY2023 (January 1, 2023- June 30, 2023)

( 1 ) Consolidated performance	Amounts less than one million yen have been omitted.
	Net sales YonY	Operating profit YonY	Ordinary profit YonY

	1st half of FY 2023	¥m 12,318 -19.6 %		¥m	2,048	-41.8	%	¥m	2,164	-40.8	%
	1st half of FY 2022		15,326	15.4	%			3,521	54.1	%		3,653	54.5	%
			Profit attributable to			Earnings per share			Earnings per share
			owners of parent	YonY					after dilution
	1st half of FY 2023	¥m	1,620	-37.8	%		¥	93.79						-
	1st half of FY 2022		2,606	47.9	%		¥	150.87						-
( 2 ) Consolidated financial position						Amounts less than one million yen have been omitted.
				Total assets				Net assets		Net assets to total assets
	1st half of FY2023	¥m	70,422			¥m	66,331			94.2	%
	FY 12/2022		69,135				63,625			92.0
	2. Cash dividends
										Per share
				Interim cash dividends			Year-end cash dividends			Annual cash dividends
	FY 12/2022 actual		¥ 42.00					¥ 42.00			¥ 84.00
	FY 12/2023	actual		¥ 42.00					-				-
	forecast		-						¥ 42.00			¥ 84.00

Note: Revision of forecast for dividends since the previous announcement … No

3. Forecasts for the year ending December 31, 2023 (January 1, 2023- December 31, 2023)

	Net sales	Operating profit	Ordinary profit	Profit attributable to	EPS
	owners of parent
Full year	¥m 24,700	¥m 4,100	¥m 4,200	¥m 3,100	¥ 179.44
Y on Y change	-15.1%	-33.8%	-37.7%	-38.0%	-

Note: Revision of forecasted consolidated financial results since the previous announcement … Yes

For details, please refer to "Notice of Difference between Financial Forecast and Actual Results for the first half of FY2023, and Revision to Financial Forecast" disclosed today.

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(For your reference)

We revised the annual forecasts for FY2023.

Revision of forecasts for the year ending December 31, 2023 (January 1, 2023- December 31, 2023)

	Net sales	Operating profit	Ordinary profit	Profit attributable to	EPS
	owners of parent
Initial forecasts (A)	¥m 24,300	¥m 3,500	¥m 3,600	¥m 2,600	¥150.50
Current forecasts (B)	¥m 24,700	¥m 4,100	¥m 4,200	¥m 3,100	¥179.44
Change (B-A)	¥m 400	¥m 600	¥m 600	¥m 500	-
Change ratio	1.6％	17.1％	16.7％	19.2％	-

4. Others

( 1 ) Significant change in subsidiaries during this half (change in designated subsidiaries resulting in adjustment to the scope of consolidation) …… None

( 2 ) Application of simplified accounting methods and special accounting methods in the preparation of quarterly consolidated financial statements …… None

( 3 ) Changes in the principles, procedures and presentation method for accounting treatment in the preparation of quarterly consolidated financial statements

1. Changes associated with revisions in accounting standards ……Yes
2. Changes other than above …… None
3. Changes in accounting estimates …… None
4. Retrospective restatement …… None

( 4 ) Shares outstanding
1.	Number of shares outstanding (including treasury stocks) : 6/30/2023 … 19,780,000	12/31/2022 … 19,780,000
2.	Number of treasury stocks : 6/30/2023 …2,504,669	12/31/2022 … 2,504,617
3.	Number of average shares outstanding (cumulative, consolidated at the end of the first half)
	6/30/2023 …17,275,348	6/30/2022 … 17,275,523

Request for appropriate use of the business outlook and other special remarks

The forecasts are based on information available to the management at the time of this announcement. Due to

variable factors, actual results may be different from the forecast figures.

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Qualitative Information concerning the Quarterly Results

(1) Qualitative information regarding consolidated business results

During the first half of FY12/2023, uncertainty in the business environment increased due to the expansion of geopolitical risk and rapid exchange rate fluctuations, as well as prolonged global inflation and interest rate hikes in Europe and the United States since last year. In our electronics industry, weak demand for PCs and smartphones continued as the economic slowdown in China and the end of special demand from COVID-19. In addition, demand for semiconductor-related products declined as controlling capital investment due to concerns about the economic slowdown.

Our net sales for the first half of FY12/2023 significantly decreased to ¥12,318 million (YoY -19.6%) due to the impact of delayed market recovery. Operating profit, ordinary profit, and profit attributable to owners of parent ware ¥2,048 million (YoY-41.8%), ¥2,164 million (YoY -40.8%), ¥1,620 million (YoY -37.8%), respectively.

In Japan, net sales (including intersegment transaction amount) were ¥8,539 million (YoY -20.6%). Operating profit was ¥1,226 million (YoY -53.1％).

In Asia, excluding Japan, production adjustments at our local factories continued due to the slow recovery of the manufacturing industry in China. Net sales in this segment were ¥5,565 million (YoY -25.0%), and the operating profit ware ¥6 million (YoY -99.1%).

In North America, net sales were ¥885 million (YoY +3.5%), and operating profit amounted to ¥81 million (YoY +13.8%). In Europe, net sales and operating profit were ¥1,189 million (YoY -5.9%) and ¥73 million (YoY -34.0%), respectively.

1. Qualitative information regarding forecasts for the year ending December 31, 2023

Considering current trends, we revised our consolidated forecast for FY12/2023, announced on May 12, 2023. The full-year sales forecast was revised upward, and profit items were increased accordingly, based on the performance in the first half of FY12/2023 and the changes in the assumed exchange rate due to the outlook that the yen will depreciate.

For more details, please refer to the notice, "Notice of Difference between Financial Forecast and Actual Results for the first half of FY2023, and Revision to Financial Forecast", released today.

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Financial Statements

Consolidated balance sheet

		millions of yen
	FY12/2022	FY12/2023 Q2
	as of December 31, 2022	as of June 30, 2023
Assets
Current assets
Cash and deposits	20,971	20,925
Notes and accounts receivable - trade	8,626	7,621
Securities	－	349
Merchandise and finished goods	5,908	6,461
Work in process	1,351	1,224
Raw materials and supplies	3,501	3,454
Other	379	472
Allowance for doubtful accounts	-23	-16
Total current assets	40,715	40,493
Non-current assets
Property, plant and equipment
Buildings and structures, net	6,334	6,342
Machinery, equipment and vehicles, net	8,774	9,016
Tools, furniture and fixtures, net	310	328
Land	5,942	6,007
Construction in progress	919	1,949
Other, net	200	163
Total property, plant and equipment	22,482	23,807
Intangible assets	60	86
Investments and other assets
Investment securities	5,235	5,622
Other	679	450
Allowance for doubtful accounts	-37	-37
Total investments and other assets	5,877	6,034
Total non-current assets	28,420	29,928
Total assets	69,135	70,422
Liabilities
Current liabilities
Notes and accounts payable - trade	934	697
Accounts payable - other	339	234
Accrued expenses	957	861
Income taxes payable	1,473	436
Contract liabilities	37	38
Provision for bonuses	784	823
Other	396	298
Total current liabilities	4,923	3,390
Non-current liabilities
Long-term accounts payable - other	219	219
Retirement benefit liability	268	248
Other	98	232
Total non-current liabilities	586	700
Total liabilities	5,509	4,090
Net assets
Shareholders' equity
Share capital	2,998	2,998
Capital surplus	3,020	3,020
Retained earnings	60,145	61,040
Treasury shares	-6,735	-6,735
Total shareholders' equity	59,429	60,324
Accumulated other comprehensive income
Valuation difference on available-for-sale securities	744	1,288
Foreign currency translation adjustment	3,302	4,588
Remeasurements of defined benefit plans	149	129
Total accumulated other comprehensive income	4,196	6,007
Total net assets	63,625	66,331
Total liabilities and net assets	69,135	70,422

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Financial Statements

Consolidated statement of income

		millinos of yen
	FY12/2022 Q2	FY12/2023 Q2
	January 1, 2022 - June 30, 2022	January 1, 2023 - June 30, 2023
Net sales	15,326	12,318
Cost of sales	9,168	7,720
Gross profit	6,157	4,598
Selling, general and administrative expenses	2,636	2,549
Operating profit	3,521	2,048
Non-operating income
Interest income	21	28
Dividend income	61	62
Foreign exchange gains	32	－
Rental income from non-current assets	24	24
Subsidy income	40	65
Subsidy income	54	43
Other	24	29
Total non-operating income	259	254
Non-operating expenses
Interest expenses	6	4
Depreciation	22	21
Foreign exchange losses	－	29
Commission expenses	58	55
Taxes and dues	7	7
Other	32	21
Total non-operating expenses	126	138
Ordinary profit	3,653	2,164
Extraordinary income
Gain on sale of investment securities	－	38
Total extraordinary income	－	38
Extraordinary losses
Loss on COVID-19	113	－
Total extraordinary losses	113	－
Profit before income taxes	3,540	2,202
Income taxes - current	1,210	424
Income taxes - deferred	-275	157
Total income taxes	934	582
Profit	2,606	1,620
Profit attributable to non-controlling interests	－	－
Profit attributable to owners of parent	2,606	1,620

Consolidated statement of comprehensive income

		millinos of yen
	FY12/2022 Q2	FY12/2023 Q2
	January 1, 2022 - June 30, 2022	January 1, 2023 - June 30, 2023
Profit	2,606	1,620
Other comprehensive income

Valuation difference on available-for-sale securities Foreign currency translation adjustment Remeasurements of defined benefit plans, net of tax

Total other comprehensive income

Comprehensive income

Comprehensive income attributable to

155	544
2,287	1,285
-7	-19
2,435	1,810
5,042	3,431

Comprehensive income attributable to owners of parent	5,042	3,431
Comprehensive income attributable to non-controlling interests	－	－

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