Yaskawa Electric : Consolidated Results for the First Half of Fiscal Year Ending February 29, 2024

Consolidated Results for the First Half of Fiscal Year Ending February 29, 2024 [IFRS]

October 6, 2023

Listed company name: YASKAWA Electric Corporation https://www.yaskawa.co.jp/en/

Representative: Masahiro Ogawa, Representative Director, President

Stock exchange listings: Tokyo and Fukuoka

Stock ticker number: 6506

(Note: This document is a summarized translation of the financial statement submitted to the Tokyo Stock Exchange and Fukuoka Stock Exchange for the period stated above. Figures under ¥1 million are rounded down.)

1. Summary of Consolidated Results for the First Half of the Fiscal Year Ending February 29, 2024 (From March 1, 2023 to August 31, 2023)

(1) Consolidated Statements of Income

(Millions of yen, percentage change from the previous year)

Revenue

Operating profit

Profit before tax

Profit

Six months ended	288,978	9.7%	33,062	5.8%	34,543	3.2%	24,731	3.5%
August 31, 2023
Six months ended	263,528	9.8%	31,260	16.4%	33,467	20.2%	23,889	12. 0%
August 31, 2022

Profit attributable to

owners of parent

Comprehensive income

Earnings per share

(basic, Yen)

Earnings per share

(diluted, Yen)

Six months ended	24,228	2.2%	35,869	-17.0%		92.66
August 31, 2023
Six months ended	23,707	12.0%	43,209	58.4%	90.69
August 31, 2022

92.57

90.61

(2) Consolidated Financial Position

			(Millions of yen, except ratio)
			Equity attributable	Ratio of equity
	Total assets	Total equity	attributable to owners
	to owners of parent
			of parent to total assets

As of August 31, 2023	680,372	382,538	374,576
As of February 28, 2023	653,132	355,075	347,499

55.1%

53.2%

2. Dividends

		Dividends per share (yen)
	End of 1Q	End of 2Q	End of 3Q		Year-end	Annual total
Year ended	-	32.00	-		32.00	64.00
February 28, 2023
Year ending	-	32.00
February 29, 2024
Year ending			-		32.00	64.00
February 29, 2024
(Forecasts)

Note: Revisions to the most recently announced dividend forecast: No

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3. Consolidated Financial Forecasts for the Fiscal Year Ending February 29, 2024 (From March 1, 2023 to February 29, 2024)

(Millions of yen, percentage change from the corresponding period of the previous year)

Revenue

Operating profit

Profit before tax

Profit attributable to

owners of parent

Year ending February 29, 2024

580,000

4.3%

70,000

2.5%

72,700

2.2%

51,300

-0.9%

Note: Revisions to the most recently announced financial forecasts: No

The forecast for the fiscal year ending February 2024 (March 1, 2023 - February 29, 2024) is shown above. Although demand remains weak in key markets, order backlogs were securely filled, and price pass-through was promoted. As a result, our annual financial forecast and dividend forecast for the fiscal year ending February 29, 2024, announced on April 7, 2023, remains unchanged.

The average exchange rates for the period from September 1, 2023 to February 29, 2024 are revised from 1USD = 130.0 JPY, 1EUR = 140.0 JPY, 1CNY = 19.00 JPY, 1KRW = 0.100 announced on April 7, 2023 to 1USD = 145.0 JPY, 1EUR = 155.0 JPY, 1CNY = 20.00 JPY, 1KRW = 0.110.

*Please see supplements to financial results on our website for detailed information. (https://www.yaskawa-global.com)

*Notes:

1. Major Change in Scope of Consolidation: No
2. Changes in Accounting Policies, Changes in Accounting Estimates:
3. 1. Changes in accounting policies required by IFRS: Yes
   2. Changes in accounting policies other than the above: No
   3. Changes in accounting estimates: No
4. Number of Common Shares Outstanding

The number of shares outstanding	As of	266,690,497	As of	266,690,497
including treasury shares	August 31, 2023	February 28, 2023
The number of treasury shares	As of	5,191,664	As of	5,221,110
August 31, 2023	February 28, 2023
Average during the period	Six months ended	261,480,124	Six months ended	261,426,652
August 31, 2023	August 31, 2022

• This financial report is not subject to the audit procedure. *About the appropriate use of business forecasts and other matters
• • Forward-lookingstatements in these materials are based on information available to management at the time this report was prepared and assumptions that management believes are reasonable and are not disclosed for the purpose of making a commitment to their achievement. Actual results may differ from these statements for a number of reasons.
  • The Company will hold a results briefing in Japanese for securities analysts and institutional investors on October 10, 2023 (JST).

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4. Qualitative Information on Quarterly Results Business Performance

In the second quarter of the fiscal year under review, capital investment aimed at upgrading and automating production in the overall manufacturing industry remained firm. On the other hand, demand for semiconductors and electronic components remained sluggish, and capital investment was inactive due to the slowdown in the recovery of the Chinese market, which led to cautious stance on a global basis.

In this environment, our group's business performance improved as production, which had been delayed due to supply chain disruptions such as a shortage of components, normalized, and revenue increased due to steady filling of order backlogs. In terms of profits, while we were affected by the elimination of other earnings due to the temporary changes in the retirement pension system and the sale of idle real estate in the previous fiscal year, the operating profit increased due to an increase in revenue and the impact of the depreciation of the yen, as well as an improvement in profitability due to price pass-through of soaring raw material costs.

Japan:

Demand remained weak in the semiconductor market as inventory adjustments continued due to falling memory prices.

U.S.:

Although capital investment in the automotive and oil/gas sectors, and automation investment in general industries continued, demand remained sluggish, as the semiconductor market, which is in a correction phase, remained weak.

Europe:

Although capital investment continued in growth markets such as electric vehicles, demand slowed due to the impact of the recession.

China:

Although capital investment continued in growing markets such as solar panels, overall demand in the manufacturing sector remained sluggish due to a slowdown in the overall market recovery.

Other Asian Countries:

In ASEAN countries and India, new capital investment in infrastructure and general industries increased, while demand related to semiconductors declined in countries such as South Korea and Taiwan.

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The business performance of the first half of fiscal 2023 is as follows.

	Six months ended		Six months ended		Change
	August 31, 2022		August 31, 2023
Revenue	263,528 million JPY	288,978 million JPY	+9.7%
Operating profit	31,260 million JPY	33,062 million JPY	+5.8%
Profit attributable to owners of parent	23,707 million JPY	24,228 million JPY	+2.2%
Average exchange rate for USD	129.86	JPY	138.76	JPY	+8.90	JPY
Average exchange rate for EUR	136.84	JPY	150.99	JPY	+14.15	JPY
Average exchange rate for CNY	19.59	JPY	19.61	JPY	+0.02	JPY
Average exchange rate for KRW	0.102	JPY	0.106	JPY	+0.004	JPY

Performance by Business Segment

The business of the Yaskawa Group is divided into four segments.

The performance of each business segment for the first half of fiscal 2023 is as follows.

Motion Control

Revenue	136,912 million JPY (+12.9 % year-on-year)
Operating profit	20,421 million JPY (+29.3 % year-on-year)

The Motion Control segment consists of the AC servo & controller business and the drives business.

Although sales for semiconductors and electronic components were sluggish, revenue increased due to expansion of sales achieved by normalization of production. In terms of profits, operating profits increased due to improved profitability, mainly due to price pass-through of raw material costs, which had soared since last year.

[AC servo & controller business]

While sales for solar panel manufacturing equipment increased in China, revenue decreased due to sluggish demand for semiconductors and electronic components in the United States, South Korea, and Japan.

[Drives business]

Due to the normalization of production, the filling of backlogs of orders progressed and sales increased globally. Revenue grew significantly due to strong demand for oil and gas as well as large air conditioning (HVAC) in the United States and a gradual recovery in infrastructure-related demand in ASEAN countries and India.

Robotics

Revenue	112,356 million JPY (+8.5% year-on-year)
Operating profit	12,995 million JPY (+19.3% year-on-year)

In addition to continued global capital investment related to EVs, investments remained firm to upgrade and automate production against the backdrop of rising labor costs and labor shortages in Europe and the United States. We accurately captured these demands and made high-value-added proposals using the i3-Mechatronics solution, as well as improved production efficiency through in-house manufacturing of parts and improved profitability through price pass-through.

As a result, both revenue and operating profit increased on a year-on-year basis.

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System Engineering	Revenue	26,897 million JPY (+9.3% year-on-year)
Operating profit	1,171 million JPY (+22.0% year-on-year)

Revenue increased on a year on year basis due to solid demand for electric systems for water and sewage systems in Japan and port cranes overseas.

Operating profit increased due to increased revenue and thorough cost control.

	Revenue	12,811 million JPY (-8.7%year-on-year)
Other
Operating profit	8 million JPY (-97.6% year on year)

Other segment consists of logistics and other businesses.

Both revenue and operating profit decreased on a year on year basis.

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