Consolidated Financial Statement : Fiscal Year ended December 31, 2022（348KB）

CONSOLIDATED FINANCIAL RESULTS

FOR THE FISCAL YEAR ENDED DECEMBER 31, 2022 (J-GAAP)

	February 14, 2023
Name of listed company: MABUCHI MOTOR CO., LTD.	Stock exchange listing: Tokyo
Securities code: 6592 (URL: https://www.mabuchi-motor.com/)
Representative: Shinichi Taniguchi (Representative Director and President, COO)
Contact: Tadahito Iyoda (Director, Managing Executive Officer, and Chief Administrative Officer)
Scheduled date of the Ordinary General Meeting of Shareholders: March 30, 2023
Scheduled date of start of dividends payments: March 31, 2023
Scheduled date of the filing of securities report: March 31, 2023
Preparation of the consolidated financial results presentation materials (Yes/No): Yes

Holding of the consolidated financial results briefing meeting (Yes/No): Yes

(Amounts less than one million yen have been omitted)

1. Consolidated Results for the Fiscal Year Ended December 31, 2022 (From January 1, 2022 to December 31, 2022)

1. Consolidated Operating Results

(Percentages indicate year-on-year changes)

	Net sales		Operating income	Ordinary income	Profit attributable to
		owners of parent
For the fiscal year ended	Millions of yen		%	Millions of yen	%	Millions of yen	%	Millions of yen	%
December 31, 2022	156,706		16.4	10,824	(21.6)	21,473	9.7	14,295	0.3
December 31, 2021	134,595		15.6	13,800	7.0	19,570	54.4	14,251	58.6

Note: Comprehensive income

Fiscal year ended December 31, 2022: ¥31,248 million [(0.9)%] Fiscal year ended December 31, 2021: ¥31,536 million [595.3%]

	Profit per share	Fully diluted	Return on equity	Ordinary income to	Operating income to
	profit per share	total assets		net sales
For the fiscal year ended	Yen		Yen	%	%		%
December 31, 2022	220.79		220.73	5.3	7.2		6.9
December 31, 2021	216.75		216.68	5.7	7.1		10.3
Reference: Equity in earnings (losses) of affiliates
Fiscal year ended December 31, 2022: ¥― million	Fiscal year ended December 31, 2021: ¥― million

1. Consolidated Financial Position

		Total assets	Net assets	Equity ratio	Net assets per share
As of		Millions of yen	Millions of yen	%	Yen
December 31, 2022		307,786	280,175	91.0	4,333.76
December 31, 2021		285,704	259,909	90.9	3,975.34
Reference: Shareholders' equity
As of December 31, 2022: ¥280,105 million	As of December 31, 2021: ¥259,817 million
(3) Consolidated Cash Flows
		Net cash provided by	Net cash used in	Net cash used in	Cash and cash
		equivalents at end of
		operating activities	investing activities	financing activities
		period
For the fiscal year ended		Millions of yen	Millions of yen	Millions of yen	Millions of yen
December 31, 2022		10,206	(10,468)	(10,088)	101,255
December 31, 2021		8,743	(12,970)	(11,285)	103,539

2. Dividends

		Dividends per share		Total	Dividend	Dividends
	1st quarter-	2nd quarter-	3rd quarter-			payout ratio	on equity
	Year-end	Total	dividends
	end	end	end	(Consolidated)	(Consolidated)
	Yen	Yen	Yen	Yen	Yen	Millions of yen	%	%
Fiscal 2021	―	57.00	―	58.00	115.00	7,565	53.1	3.0
Fiscal 2022	―	67.00	―	68.00	135.00	8,764	61.1	3.2
Fiscal 2023 (forecast)	―	67.00	―	68.00	135.00		73.3

Note: Breakdown of 2nd quarter-end dividend for fiscal 2021: Special dividend: ¥42.00

Breakdown of year-end dividend for fiscal 2021: Special dividend: ¥43.00

Breakdown of 2nd quarter-end dividend for fiscal 2022: Special dividend: ¥52.00

Breakdown of year-end dividend for fiscal 2022: Special dividend: ¥53.00

Breakdown of 2nd quarter-end dividend for fiscal 2023 (forecast): Special dividend: ¥52.00

Breakdown of year-end dividend for fiscal 2023 (forecast): Special dividend: ¥53.00

3. Consolidated Results Forecasts for the Fiscal Year (From January 1 to December 31, 2023)

(Percentages indicate year-on-year changes)

	Net sales		Operating income	Ordinary income	Profit attributable to	Profit per share
		owners of parent
	Millions of yen		%	Millions of yen	%	Millions of yen	%	Millions of yen	%	Yen
Six months	85,900		19.5	6,900	79.8	7,800	(37.3)	5,400	(35.9)	83.55
Full year	173,000		10.4	15,000	38.6	16,800	(21.8)	11,900	(16.8)	184.12

Notes

1. Changes in significant subsidiaries during the period (changes in specified subsidiaries that accompanied changes in the scope of consolidation): None
2. Changes in accounting policies, changes in accounting estimates, restatements:
3. 1. Changes in accounting policies resulting from revision of accounting standards, etc.: Yes
   2. Changes in accounting policies due to reasons other than those stated in 1): None
   3. Changes in accounting estimates: None
   4. Restatements: None
4. Number of shares issued (common stock)

1. Number of shares issued at the end of the period (including treasury stock)
2. Number of shares of treasury stock at the end of the period
3. Average number of shares during the period

Dec. 31, 2022	67,076,362	Dec. 31, 2021	67,843,062
Dec. 31,	2022	2,442,888	Dec. 31,	2021	2,485,728
Jan.-Dec.	2022	64,749,645	Jan.-Dec.	2021	65,752,346

Note: The number of shares of treasury stock as of December 31, 2022 included the shares held by Mabuchi Motor Employee Ownership Association Trust and BIP (270,100 shares and 153,395 shares, respectively, at the end of the period), and the number of shares of treasury stock as of December 31, 2021 included the shares held by Mabuchi Motor Employee Ownership Association Trust and BIP (13,300 shares and 154,425 shares, respectively, at the end of the period).

• The review procedure by a Certified Public Accountant or an auditing firm does not apply these Consolidated Financial Results.
• Explanation related to appropriate use of results forecasts and other items warranting special mention
  The above forecasts are based on the information available as of the date of the release of this document. As a result, a variety of factors in the future may cause actual results to differ from these forecasts.

Analysis of Operating Results and Financial Position

1. Overview of the Operating Results for Fiscal 2022 Business Development and Results
   During the fiscal year ended December 31, 2022 (fiscal 2022), the global economy saw economic activity stagnate from a resurgence of COVID-19, a sharp increase in resource prices and persistently high logistics costs, and continued shortages in supplies of semiconductors, compounded by supply chain disruptions from the situation in Ukraine, along with sluggish retail consumption from higher prices. The U.S. economy was stagnant, from accelerated inflation caused by high resource prices combined with a stepped-up pace of interest rate increases leading to a slowdown in retail consumption. In Europe, economies slowed from inflation caused by sharply higher energy prices, the situation in Ukraine, supply chain disruptions, and weak retail consumption as countries raised interest rates. The Japanese economy showed a gradual recovery as economic activity moved back toward normal on the easing of infection prevention measures, but the yen weakened significantly as other countries raised their interest rates. Emerging market economies saw only a gradual recovery overall, with a slower pace of growth in China from stagnant economic activity reflecting lockdowns in major urban areas in response to a resurgence of COVID-19.
   With regard to markets related to the Mabuchi Group's products, the automotive products market slowed on automobile production adjustments from shortages in supplies of semiconductors, supply chain disruptions from urban lockdowns in China, and weak retail consumption caused by inflation in various countries. The life and industrial products market was solid overall, despite lower demand for certain applications as people who had been staying at home increasingly began going out again.
   Against this backdrop, the Group has been working to address the issues including "Expansion of market share in the power window lifter motor business," "Expansion of medium-sized and small automotive motor sales and new applications," and "Sales expansion of new applications in the life and industrial products segment." Sales and market share grew on specific achievements including sales of power window lifter motors to a fourth major Japanese automaker and increased sales of our products for electric vehicles based on those products' light weight and superior quietness, winning orders for motors for power seats from major Japanese and European automakers, winning orders for motors for valve actuators in electric vehicles from major Japanese automakers, winning orders for our expanded lineup of brushless motors for mobility and collaborative robots, increased sales of medical-use motors made by Mabuchi Motor Electromag SA, and winning orders for power tool applications. With this growth, along with the development of new markets and the proactive introduction and implementation of various measures for even higher levels of quality and efficiency, we were able to achieve successes that will lead to future business growth.
   As a result, consolidated net sales for fiscal 2022 were 156,706 million yen (a 16.4% increase year on year), and motor sales, which account for the majority of net sales, were 156,696 million yen (a 16.5% increase year on year).
   Although operating income was boosted by a weaker yen year on year and improvements in sales prices and the product mix, this was more than offset by the negative effect of lower sales volume and a rise in commodity prices, resulting in operating income of 10,824 million yen (a 21.6% decrease year on year).
   Despite this decline in operating income, foreign exchange gains recorded as a result of the yen's depreciation on term-end valuations of foreign currency-denominated assets and liabilities and other factors resulted in ordinary income of 21,473 million yen (a 9.7% increase year on year). Profit before income taxes was 20,764 million yen (a 3.3% increase year on year), and profit attributable to owners of parent was 14,295 million yen (a 0.3% increase year on year).
   The next section describes market trends and sales conditions categorized into separate markets for motors.

1. Automotive Products Market
   Net sales totaled 117,056 million yen (a 19.1% increase year on year). In medium-sized automotive motors,

sales of motors for power window lifters and for power seats were negatively affected by automobile production adjustments from factors including shortages of semiconductor supplies, but sales rose on positive factors including a weaker yen. Sales of motors for electric parking brakes also grew on an increase in the number of models in which they are installed, for solid overall sales of medium-sized automotive motors. Sales of small automotive motors also grew on positive factors including a weaker yen, despite the effect of automobile production adjustments on door lock actuators, motors for door mirrors, and air conditioning damper actuators.

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2) Life and Industrial Products Market

Net sales rose to 39,639 million yen (a 9.2% increase year on year). Sales of motors for personal care products, home appliances, power tools, and housing equipment declined on a lull in demand from people staying at home instead of going out, but sales of motors for health and medical devices rose significantly on solid sales in the midrange and high-end toothbrush segment combined with a contribution from sales of Mabuchi Motor Electromag products including motors for ventilators, and with a positive effect from the weaker yen, overall sales rose.

1. Overview of the Financial Position for Fiscal 2022 Assets, Liabilities and Net Assets
   Total assets as of December 31, 2022, were 307,786 million yen, a 22,081 million yen increase from the end of the previous fiscal year. Major changes included increases of 10,474 million yen in inventories, 6,625 million yen in property, plant and equipment, and 4,935 million yen in trade notes and accounts receivable, and a decrease of 2,388 million yen in cash and bank deposits.
   Total liabilities increased 1,816 million yen from the end of the previous fiscal year, to 27,611 million yen. Major changes included a 1,489 million yen increase in other current liabilities, a 1,147 million yen increase in deferred tax liabilities-non-current, and a 1,674 million yen decrease in accrued income taxes.
   Total net assets increased 20,265 million yen from the end of the previous fiscal year, to 280,175 million yen. This included a 16,031 million yen increase in foreign currency translation adjustments and a 2,847 million yen increase in retained earnings.

(3) Outlook for Fiscal 2023

With regard to the outlook in fiscal 2023, there are concerns of a slowdown in the global economy as economic activity is expected to stagnate on a resurgence of COVID-19, a sharp increase in resource prices, shortages in supplies of semiconductors and other components, the protracted situation in Ukraine, and various countries raising interest rates to curb accelerating inflation. Growth in the U.S. economy is seen slowing from the effect of aggressive interest rate hikes to rein in rising prices. In Europe, inflation caused by factors including the situation in Ukraine is seen depressing corporate earnings and retail consumption, and growth is expected to slow. The recovery in the Japanese economy is seen being only gradual, on a deterioration in corporate business results from weak external demand, combined with increasing pressure on household budgets from higher resource prices restricting retail consumption. In emerging market economies, a recovery from sluggish economic activity is forecast for China as zero-COVID policies are eased, but the effect of global inflation is seen leading to a sluggish pace of growth for emerging market economies overall.

With regard to markets related to the Mabuchi Group's products, a recovery for the automotive products market is seen lacking strength due to weak demand in various countries from the effect of interest rate increases to rein in accelerating inflation, shortfalls in supplies of semiconductors and other components leading to production adjustments, and supply chain disruptions. In the life and industrial products market, although overall demand is seen remaining solid on factors including continued stable demand for health and medical devices, demand for home appliances, power tools, housing equipment, and office equipment is expected to be flat on the slowdown in retail consumption.

As a result, we are forecasting a 10.4% increase in fiscal 2023 net sales, to 173,000 million yen.

In terms of profit, we are forecasting a 38.6% increase in operating income, to 15,000 million yen, on increased sales volume and improvements in sales prices and the product mix, and despite a continuing rise in commodity prices and increased investment in research and development for future growth. Our plan does not include foreign exchange gains or losses, and we are therefore forecasting a 21.8% decrease in ordinary income, to 16,800 million yen, and a 16.8% decrease in profit attributable to owners of parent, to 11,900 million yen.

Our forecasts for the full-year business results for fiscal 2023 are as follows:

Consolidated results forecasts (compared with the previous period)

Net sales	173,000 million yen	(10.4% increase)
Operating income	15,000 million yen	(38.6% increase)
Ordinary income	16,800 million yen	(21.8% decrease)
Profit attributable to owners of parent	11,900 million yen	(16.8% decrease)

The above forecasts assume an exchange rate of US$1 = ¥135. No allowances have been made for foreign exchange gains or losses.

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Note: The above forecasts were made based on information that is available at the present moment. Actual results may differ from expectations owing to various future factors, the main ones of which are as follows:

• Fluctuations in foreign exchange rates
• Changes in economic conditions and demand trends in our business areas
• Rapid technological innovations, such as new technologies or new products
• Fluctuations in market prices of copper, steel materials, rare earths, and other raw materials Note, however, that the factors that could affect our results are not limited to the above.

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