Yamaichi Electronics : Consolidated Financial Results for the Fiscal Year Ended March 31, 2023

SUMMARY OF FINANCIAL STATEMENTS [Japan GAAP] (CONSOLIDATED)

Financial Results for the Fiscal Year Ended March 31, 2023

Company Name: Yamaichi Electronics Co., Ltd.

May 12, 2023

Code: 6941

URL: https://www.yamaichi.co.jp

President:

Junichi Kameya

Managing Director :

Kazuhiro Matsuda

Tel: [phone]

Scheduled date of ordinary general meeting of shareholders: June 28, 2023

Scheduled date of securities report submission:

June 28, 2023

Supplementary materials for the quarterly financial statements: Yes

Presentation to explain for the quarterly financial statement: Yes (for institutional Investors and analysts)

1. Consolidated Financial Highlights for the Fiscal Year Ended March 31, 2023

(1) Consolidated Operating Results (aggregated)

(Percentage figures represent changes from the same period of the previous year.)

Net Sales

Operating income

Ordinary income

Profit Attributable to

owners of parent

Millions of yen %

Millions of yen

%

Millions of yen

%

Millions of yen

%

Year ended March 31, 2023

46,985

18.7

9,134

9.1

9,450

8.1

7,212

6.5

Year ended March 31, 2022

39,574

43.0

8,375

162.4

8,746

178.2

6,771

161.2

Note: Comprehensive income

Year ended March 31, 2023

¥8,160 million (5.9%)

Year ended March 31, 2022

¥7,708 million (147.7%)

Net profit per

Diluted net profit

Return on equity

Return on assets

Operating

share

per share

income ratio

Yen

Yen

%

%

%

Year ended March 31, 2023

346.08

―

21.1

19.7

19.4

Year ended March 31, 2022

319.25

―

23.7

21.6

21.2

Notes: Share of profit

(△loss) of entities accounted for using equity method:

Year ended March 31, 2023: ¥ - million; Year ended March 31, 2022: ¥ 22million.

(2) Consolidated Financial Positions

Total assets

Net assets

Equity ratio

Net assets per share

As of March 31, 2023

Millions of yen

Millions of yen

%

Yen

50,368

37,013

72.9

1,770.47

As of March 31, 2022

45,372

31,993

69.8

1,499.07

Reference: Shareholders' equity as

of March 31, 2023: ¥

36,713million; as of March 31, 2022: ¥31,685

million.

(3) Consolidated Cash Flows

Net cash provided by

Net cash used in

Net cash used in

Cash and cash

equivalents at the

operating activities

investing activities

financing activities

end of period

Millions of yen

Millions of yen

Millions of yen

Millions of yen

Year ended March 31, 2023

10,846

△4,858

△3,355

16,734

Year ended March 31, 2022

7,637

△2,283

△1,774

13,548

ENGLISH TRANSLATION OF JAPANESE－LANGUAGE DOCUMENT.

This is a translation of the original Japanese-language document and is provided for convenience only. In all cases, the Japanese-language original shall take precedence.

2. Dividends

		Dividends per share		Total	Dividend	Dividend
	1Q	2Q	3Q	4Q	Total	dividends	payout	on equity
	Yen	Yen	Yen	Yen	Yen	Millions	％	％
Year ended March 31, 2022	―	15.00	―	81.00	96.00	2,029	30.1	7.2
Year ended March 31, 2023	―	35.00	―	69.00	104.00	2,156	30.1	6.4
Forecast; Year ending	―	25.00	―	41.00	66.00		30.4
March 31, 2024

Note: The year-end dividend per share for the fiscal year ended March 31, 2023, has been changed from 52 yen to 69 yen.

3. Forecast of Consolidated Operating Results for the year ending March 31, 2024

(Percentage

figures

represent

changes from the same

period

of previous year.)

Profit attributable

Net Sales

Operating income

Ordinary income

to owners of

Net profit

parent

per share

Half year ending September

Millions of yen %

Millions of yen

%

Millions of yen %

Millions of yen

%

Yen

19,670

△27.6

2,450

△63.3

2,410

△66.9

1,700

△67.6

81.98

30, 2023

Year ending March 31, 2024

42,000

△

10.6

6,600

△

27.7

6,440

△

31.9

4,500

△

217.01

37.6

4. Other

1. Changes in significant subsidiaries during current quarter consolidated period

(changes in specified subsidiaries with change in scope of consolidation) ; No

1. Changes in accounting policies, changes in accounting estimates and restatements
2. 1. Changes in accounting policies due to revisions of accounting standards etc. : Yes
   2. Changes in accounting policies other than 1) : No
   3. Changes in accounting estimates : No
   4. Restatements : No
3. Number of outstanding shares (common stock)
4. 1. Number of outstanding shares (including treasury shares) at term end :

March 31, 2023	23,329,775 shares
March 31, 2022	23,329,775 shares

2) Number of treasury shares at term end:

March 31, 2023	2,593,423 shares
March 31, 2022	2,193,285 shares

3) Average number of outstanding shares:

March 31, 2023	20,840,607 shares
March 31, 2022	21,209,406 shares

• Summaries of financial statements are not subject to audit by certified public accountants or auditing firms.
• Explanation of the appropriate use of earnings forecasts and other special notes

The forward-looking statements in this document, including earnings forecasts, are based on information currently available to us and certain assumptions that are judged to be reasonable. We do not commit to achieving these forecasts. Furthermore, actual results may differ significantly due to various factors. Overview of Business Results (4) Future Prospects" on page 5 of the attachment for the assumptions for the forecasts and notes on using the forecasts.

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ENGLISH TRANSLATION OF JAPANESE－LANGUAGE DOCUMENT.

This is a translation of the original Japanese-language document and is provided for convenience only. In all cases, the Japanese-language original shall take precedence.

1. Overview of Business Results

(1) Summary of Business Results

The global economy underwent various changes during the consolidated fiscal year under review. While economic activities began to normalize in many countries due to a shift towards policies to live with COVID- 19, global inflation was on the rise, driven by increasing energy and resource prices linked to the prolonged crisis in Ukraine. On top of this, central banks worldwide started to shift their monetary policies, leading to significant fluctuations in exchange rates. Coupled with the bankruptcy of US financial institutions and the crisis in European financial institutions, this situation led to heightened financial instability and an increased level of uncertainty about the future of the global economy.

The Yamaichi Electronics Group swiftly adapted to an evolving market landscape. This evolution was influenced by factors such as a global semiconductor shortage that spurred increased demand, and a rebound in investment in the European industrial equipment market, a crucial segment for the Group. In response to these changes, we fortified our production system, promoted cost-reduction measures, and improved quality to mitigate the impact of rising raw material and transportation costs. Despite robust demand for automotive logic semiconductors in the latter half of the year, we saw an uptick in inventories due to dwindling demand in the memory semiconductor market. The increase in inventories led to a sharp price drop, necessitating production adjustments and reviewing our capital investments. A slump in smartphone market demand further complicated the situation, which required additional production adjustments. These developments primarily impacted our semiconductor-related business, leading to a challenging operating environment.

Under these circumstances, our business performance in the consolidated fiscal year marked net sales of 46,985 million yen (an increase of 18.7% year on year), operating profit of 9,134 million yen (an increase of 9.1% year on year), ordinary profit of 9,450 million yen (an increase of 8.1% year on year), and profit attributable to the owners of parent of 7,212 million yen (an increase of 6.5% year on year).

Our business performance on a segment-by-segment basis is shown below.

[Test Solutions Business]

In the test socket segment, we saw steady growth from our core products for smartphones and new products aimed at the automotive and PC markets. However, entering the latter half of the fiscal year, we felt a significant impact from major production adjustments in smartphone products. In the burn-in socket segment, despite the steady performance of new logic products for the automotive applications, the market for memory semiconductor sockets worsened, leading to a review of capital investments. As a consequence, the latter half of the fiscal year became challenging.

As a result, our business performance resulted in net sales of 24,203 million yen (an increase of 17.0% year on year), and the operating profit was 7,093 million yen (an increase of 1.8% year on year).

[Connector Solutions Business]

Our products for industrial equipment demonstrated strong performance, particularly in Europe-our key market-due to a resurgence in demand. Despite the ongoing economic friction between the U.S. and China, we witnessed increased demand for high-speed,high-capacity transmission in our

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ENGLISH TRANSLATION OF JAPANESE－LANGUAGE DOCUMENT.

This is a translation of the original Japanese-language document and is provided for convenience only. In all cases, the Japanese-language original shall take precedence.

telecommunications equipment segment, primarily in Europe and the U.S. Furthermore, our automotive equipment segment showed robust performance due to a recovery in production by major clients and the commencement of new product shipments.

As a result, our business performance resulted in net sales of 21,081 million yen (an increase of 23.3% year on year), and the operating profit was 1,630 million yen (an increase of 21.0% year on year).

[Optics-related business]

Sales of our high-value-added filter products catered to the medical and industrial equipment sectors showed steady performance. However, in the latter half of the fiscal year, we felt the impact of production adjustments made by certain customers in the medical equipment market.

As a result, our business performance resulted in net sales of 1,700 million yen (a decrease of 4.9% year on year), and the operating profit was 181 million yen (an increase of 4.8% year on year).

Based on our three-yearmedium-term management plan (fiscal years ended March 2021 to March 2023), our Group is striving to evolve into an enterprise capable of delivering products and services that meet our customers' satisfaction. Viewing through the lens of global collaboration and the creation of future-oriented products, we have centered our strategy around growth strategies and structural reforms, aiming to bolster our management foundation and expand profits. As demonstrated in the table below, thanks to a robust semiconductor market, we met all our publicized targets, with our net sales and operating profit notably exceeding our goals.

	Third medium-term
Item	management plan
	Target
	88.3 billion yen (3-
Net sales	year cumulative
	total)
Operating	11.1 billion yen (3-
year cumulative
profit
total)
Capital	10 billion yen (3-
year cumulative
investment
total)
Dividend	30.0% or more
payout ratio
ROE	10.0% or more

			Third medium-
FY2020	FY2021	FY2022	term	Rate of
Actual	Actual	Actual	management	achievement
			plan total
27.6	39.5 billion	46.9 billion	114.2 billion yen	129%
billion yen	yen	yen
3.1 billion	8.3 billion	9.1 billion	20.7 billion yen	186%
yen	yen	yen
3.8 billion	2.7 billion	4.5 billion	11.1 billion yen	111%
yen	yen	yen
30.6%	30.1%	30.1%	―――	Accomplished
10.7%	23.7%	21.1%	―――	Accomplished

1. Overview of Financial Position for the Current Period (Assets)
   The current assets at the end of this consolidated fiscal year amounted to 32,694 million yen, representing an increase of 2,466 million yen from the end of the previous consolidated fiscal year. The value was mainly due to an increase in cash and deposits of 3,657 million yen resulting from increased sales and progress in trade receivables collection. Noncurrent assets amounted to 17,674 million yen, an increase of 2,529 million yen from the end of previous fiscal year. This was mainly due to an increase of 809 million yen in machinery, equipment and vehicles stemming from the acquisition of production facilities, an increase of 430 million yen in construction in progress owing to the construction of a new building at our Sakura Plant, and an increase of 762 million yen in land due to the acquisition of new production plant land by our consolidated subsidiary, Pricon Microelectronics, Inc.

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ENGLISH TRANSLATION OF JAPANESE－LANGUAGE DOCUMENT.

This is a translation of the original Japanese-language document and is provided for convenience only. In all cases, the Japanese-language original shall take precedence.

As a result, our total assets amounted to 50,368 million yen, an increase of 4,996 million yen from the end of the previous consolidated fiscal year.

(Liabilities)

Our current liabilities at the end of this consolidated fiscal year were 10,428 million yen, a decrease of 246 million yen from the end of the previous consolidated fiscal year. Our non-current liabilities amounted to 2,926 million yen, an increase of 222 million yen from the end of the previous fiscal year. This result was mainly due to an increase of 150 million yen in long-term borrowings.

As a result, our total liabilities amounted to 13,355 million yen, a decrease of 23 million yen from the end of the previous consolidated fiscal year.

(Net Assets)

Our total net assets at the end of this fiscal year amounted to 37,013 million yen, marking an increase of 5,020 million yen from the end of the previous fiscal year. The increase primarily stemmed from the profit attributable to the owners of parent, which totaled 7,212 million yen, despite the distribution of dividends of surplus of 2,437 million yen and the purchase of treasury shares of 698 million yen.

As a result, the equity ratio was 72.9% (69.8% at the end of the previous fiscal year).

(3) Overview of Cash Flows for the Fiscal Period

Our cash and cash equivalents (hereinafter referred to as "funds") increased by 3,186 million yen from the end of the previous consolidated fiscal year to 16,734 million yen at the end of the consolidated fiscal year.

The status of each cash flow and its factors during the current consolidated fiscal year are as follows:

(Cash flows from operating activities)

The funds obtained from operating activities resulted in 10,846 million yen (an increase of 42.0% year on year). This result was mainly due to an increase in profit before income taxes of 9,450 million yen.

(Cash flows from investing activities)

The funds used in investing activities amounted to 4,858 million yen (an increase of 112.7% year on year). This result was mainly due to the purchase of property, plant, and equipment of 4,235 million yen.

(Cash flows from financing activities)

The funds used in financing activities amounted to 3,355 million yen (an increase of 89.1% year on year). This result was mainly due to the dividends paid of 2,433 million yen, repayments of lease obligation of 403 million yen, and purchase of treasury shares of 698 million yen.

(4) Future Prospects

As for the outlook for the global economy, the transition to policies to live with COVID-19 in various countries is expected to accelerate the normalization of economic activities further. On the other hand, geopolitical risks, high prices of energy and resources, inflation, ongoing economic friction between the

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