Consolidated Financial Statement : Third Quarter of 2022（116KB）

CONSOLIDATED FINANCIAL RESULTS

FOR THE NINE MONTHS ENDED SEPTEMBER 30, 2022 (J-GAAP)

November 2, 2022

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: Takumi Tomita (Executive Officer in charge of Accounting and Finance)

Scheduled date of the filing of quarterly report: November 14, 2022

Scheduled date of start of dividends payments: ―

Preparation of 3Q results presentation materials (Yes/No): Yes

Holding of 3Q results briefing meeting (Yes/No): No

(Amounts less than one million yen have been omitted)

1. Consolidated Results for the Nine Months Ended September 30, 2022 (From January 1, 2022 to September 30, 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 nine months ended	Millions of yen		%	Millions of yen	%	Millions of yen	%	Millions of yen	%
September 30, 2022	114,568		13.1	7,428	(33.2)	20,113	29.5	14,243	29.9
September 30, 2021	101,335		24.7	11,118	71.9	15,533	166.0	10,965	163.6
Note: Comprehensive income

Nine months ended September 30, 2022: ¥42,497 million [79.4%] Nine months ended September 30, 2021: ¥23,683 million [―%]

	Profit per share	Fully diluted
	profit per share
For the nine months ended	Yen	Yen
September 30, 2022	219.84	219.78
September 30, 2021	166.58	166.52

(2) Consolidated Financial Position

	Total assets	Net assets	Equity ratio
As of	Millions of yen	Millions of yen	%
September 30, 2022	317,040	291,362	91.9
December 31, 2021	285,704	259,909	90.9

Reference: Shareholders' equity

As of September 30, 2022: ¥291,293 million As of December 31, 2021: ¥259,817 million

2. Dividends

			Dividends per share
	1st quarter-end	2nd quarter-end	3rd quarter-end	Year-end	Total
	Yen	Yen	Yen	Yen	Yen
Fiscal 2021	―	57.00	―	58.00	115.00
Fiscal 2022	―	67.00	―
Fiscal 2022 (forecast)				68.00	135.00

Note: Amendments to dividend forecast that has been disclosed recently: None

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 (forecast): Special dividend: ¥53.00

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

(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
Full year	153,000		13.7	11,500	(16.7)	18,800	(3.9)	13,000	(8.8)	200.77

Note: Amendments to results forecasts that have been disclosed recently: None

Notes

(1)	Changes in significant subsidiaries during the period (changes in specified subsidiaries that accompanied changes in the scope
	of consolidation): None
(2)	Application of accounting procedures specific to preparation of quarterly consolidated financial statements: Yes
(3)	Changes in accounting policies, changes in accounting estimates, restatements:
	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
	Sep. 30, 2022	67,076,362		Dec. 31, 2021		67,843,062
	period (including treasury stock)
	2) Number of shares of treasury stock at the end
	Sep. 30, 2022	2,445,819		Dec. 31, 2021		2,485,728
	of the period
	3) Average number of shares during the period	Jan.- Sep. 2022	64,789,733		Jan.-Sep. 2021		65,829,289

• The quarterly 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.

1. Qualitative Information

(1) Operating Results

During the nine months ended September 30, 2022 (January 1-September 30, 2022), the global economy saw economic activity stagnate from a resurgence of COVID-19, high resource prices and 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, there was a pause in the move toward normal economic activity that had been seen as countries eased lockdowns in major cities and other infection prevention measures, and 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 a gradual recovery overall, with a trend of recovery in the Chinese economy but a slower pace of growth as economic activity stagnated as a result of 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 automotive production adjustments from shortages in supplies of semiconductors and other components, and supply chain disruptions from urban lockdowns in China. 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, Mabuchi's motor sales declined 4.2% year on year in terms of volume, but increased 13.1% year on year in value. As a result, consolidated net sales for the period under review were 114,568 million yen (a 13.1% increase year on year), and motor sales, which account for the majority of net sales, were 114,564 million yen (a 13.1% 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 7,428 million yen (a 33.2% 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 20,113 million yen (a 29.5% increase year on year). Profit before income taxes was 19,504 million yen (a 28.0% increase year on year), and profit attributable to owners of parent was 14,243 million yen (a 29.9% 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 84,643 million yen (a 14.0% increase year on year). Sales of medium-sized automotive motors were solid overall, with lower sales of motors for power window lifters as a result of sluggish automotive production from limited supplies of electronic parts and logistics disruptions caused by the situation in Ukraine and urban lockdowns in China in response to a resurgence of COVID-19, but sales of motors for power seats were solid and sales of motors for electric parking brakes grew on an increase in the number of models in which they are installed, and there was also a positive effect from the weaker yen. Sales of small automotive motors grew overall, with lower sales of door lock actuators and headlight level adjusters from sluggish automotive production, but solid sales of motors for door mirrors and air conditioning damper actuators, combined with a positive effect from the weaker yen.

2) Life and Industrial Products Market

Net sales rose to 29,920 million yen (a 10.6% increase year on year). Demand for motors for office equipment from people working at home remained flat, and sales of motors for personal care products, home

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appliances, power tools, and housing equipment declined on a lull in demand from people staying at home instead of going out. On the other hand, sales of motors for health and medical devices rose on solid sales in the midrange and high-end toothbrush segment combined with a large contribution from sales of Mabuchi Motor Electromag products including motors for ventilators, and there was also a positive effect from the weaker yen.

(2) Financial Position

Total assets as of September 30, 2022, were 317,040 million yen, a 31,336 million yen increase from the end of the previous fiscal year. Major changes from the end of the previous fiscal year included increases of 13,370 million yen in inventories, 10,571 million yen in property, plant and equipment, and 8,438 million yen in trade notes and accounts receivable.

Total liabilities decreased 116 million yen from the end of the previous fiscal year, to 25,678 million yen. Major changes from the end of the previous fiscal year included a 1,369 million yen increase in other current liabilities and a 1,917 million yen decrease in accrued income taxes.

Total net assets increased 31,453 million yen from the end of the previous fiscal year, to 291,362 million yen. This included a 28,507 million yen increase in foreign currency translation adjustments and a 2,783 million yen increase in retained earnings.

(3) Forward-Looking Statements Including Consolidated Results Forecast

There are concerns of a slowdown in the global economy as economic activity is expected to stagnate on a resurgence of COVID-19, high resource prices and logistics costs, shortages of semiconductor supplies, the protracted situation in Ukraine, and various countries raising interest rates to curb inflation.

Despite growth being maintained in the U.S. economy supported by solid retail consumption, that growth is expected to slow from the effect of aggressive interest rate hikes to rein in rising prices. In Europe, growth is expected to slow as the protracted situation in Ukraine is leading to sharp rises in energy costs. The recovery in the Japanese economy is seen being only gradual, as increasing pressure on household budgets from higher resource prices restricts retail consumption. In emerging market economies, a recovery in China from the sluggish economic activity caused by urban lockdowns is expected, 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, the outlook for the automotive products market is unclear, despite signs of a partial recovery from supply chain disruptions and production adjustments from shortages of semiconductors and other components. Although solid demand is forecast for the life and industrial products market overall, there are concerns of a slowdown in retail consumption from higher prices, primarily in products for home appliances, power tools, and housing equipment.

Given this operating environment, we are leaving our previous forecast (announced on August 12, 2022) for full-year consolidated net sales unchanged at 153.0 billion yen (a 13.7% increase year on year). In terms of profit, as per the "Notice Concerning Recording of Non-oper ating Income (Foreign Exchange Gains)" released tod ay (November 2, 2022), we are recording a 10,445 million yen foreign exchange gain as non-operating income for the nine-month period (January 1 to September 30, 2022), but given that this amount is subject to change based on foreign exchange rate movements going forward, we are leaving our forecasts unchanged.

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:

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・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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