Union Tool : Notice of Difference between Financial Forecast and Actual Results for the first half of FY2023, and Revision to Financial Forecasts （174KB）

Note: 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.

	August 8, 2023
Company name:	UNION TOOL CO.
Name of Representative:	Takao Katayama, CEO
	Code No. 6278 TSE Prime
Contact:	Norimasa Kurata
	Executive Officer
	Phone: [phone]

Notice of Difference between Financial Forecast and Actual Results for the first half of FY2023,

and Revision to Financial Forecasts

UNION TOOL CO. hereby announces that differences have arisen between the consolidated financial forecast for the first half of the fiscal year ending December 31, 2023, released on May 12, 2023, and the actual results announced today. In addition, we revise the consolidated financial forecast as follows.

1. Difference between Consolidated Financial Forecast and Actual Results

for the first half of fiscal year ending December 31, 2023 (January 1, 2023 - June 30, 2023)

	Net Sales		Operating Profit	Ordinary Profit	Profit Attributable		Earnings per Share
		to owners of Parent
Previous Forecast (A)	millions of yen		millions of yen	millions of yen	millions of yen		Yen
11,300		1,600	1,700	1,300	75.25
Actual results (B)	12,318		2,048	2,164	1,620	93.79
Change (B-A)	1,018		448	464	320
Rate of Change (%)	9.0		28.0	27.3	24.6
(Ref.) Results for the first half of	15,326		3,521	3,653	2,606	150.87
Fiscal Year Ending December
31, 2022
2. Revision to Consolidated Financial Forecast
for the fiscal year ending December 31, 2023 (January 1, 2023 - December 31, 2023)
	Net Sales		Operating Profit	Ordinary Profit	Profit Attributable		Earnings per Share
		to owners of Parent
Previous Forecast (A)	millions of yen		millions of yen	millions of yen	millions of yen		Yen
24,300		3,500	3,600	2,600	150.50
Revised Forecast (B)	24,700		4,100	4,200	3,100	179.44
Change (B-A)	400		600	600	500
Rate of Change (%)	1.6		17.1	16.7	19.2
(Ref.) Results for the Fiscal Year	29,091		6,190	6,737	4,996	289.22
Ending December 31, 2022

3. Reasons for difference and revisions

During the first half of FY12/2023, the drop in demand in the electronics industry caused inventory adjustments, which forced us to lower the operating rate. Under these circumstances, we focused on optimizing and controlling the group production system and worked to improve production efficiency. As a result, we reduced costs and secured a higher-than-expected gross profit. In addition, although we had set the exchange rate at a stronger yen to prepare for the uncertain future in the forecast figures, the actual financial results exceeded forecasts due to the benefits of the weaker yen.

As for the full-year consolidated forecast, we revised our sales forecast upward and accordingly increased profit items 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.

The assumed exchange rate for forecasts from the third quarter of this fiscal year is 125 yen to the US dollar, and

18.5yen to RMB.