TACHI S : Consolidated Financial Highlights for the Second Quarter of FY2022

Consolidated Financial Highlights for the Second Quarter of FY2022 [Japanese

GAAP]

November 11, 2022

Company name:

TACHI-S CO., LTD.

Stock exchange listings:

Tokyo Stock Exchange

Code number:

7239

URL

https://www.tachi-s.co.jp/

Representative:

(Title)

Representative Director,

(Name)

Yuichiro Yamamoto

President, CEO & COO

Contact person:

(Title)

Representative Director,

(Name)

Atsushi Komatsu

(TEL) 042-546-8117

Executive Managing Officer

Scheduled date of quarterly securities report submission:

November 11, 2022

Scheduled date of start of dividend payment

December 2, 2022

The additional materials of the quarterly financial results

:

Yes

Holding of the quarterly financial results meeting

:

Yes

(Amounts less than one million yen are rounded down)

1. Consolidated Financial Results for the Second Quarter of FY2022 (April 1, 2022 through September 30, 2022)

(1) Consolidated Operating Results

(% indicates the changes from the same period in the previous year)

Net income

Net sales

Operating income

Ordinary income

attributable to owners

of parent

Million yen

%

Million yen

%

Million yen

%

Million yen

%

2Q of FY2022

107,925

13.1

(4,347)

―

(3,904)

―

167

―

2Q of FY2021

95,424

19.9

(5,664)

―

(4,638)

―

(4,703)

―

(Note) Comprehensive income	2Q of FY2022		8,321 million yen	[ ― %]
		2Q of FY2021		(1,403) million yen	[ ― %]
	Net income per		Diluted
	net income per
		share
			share
		yen		yen
2Q of FY2022		4.90		―
2Q of FY2021		(137.43)		―

(2) Consolidated Financial Positions

		Total assets	Shareholder's equity	Shareholder's equity ratio
		Million yen	Million yen	%
2Q of FY2022		169,551	85,249	46.5
FY2021		158,997	79,181	45.8
(Reference) Equity capital	2Q of FY2022	78,806 million yen
		FY2021	72,862 million yen

2. Dividends

Annual dividends per share

End of 1st quarter

End of 2nd

End of 3rd

End of fiscal year

Total

quarter

quarter

yen

yen

yen

yen

yen

FY2021

―

31.80

―

31.80

63.60

FY2022

―

36.80

FY2022 (Forecast)

―

36.80

73.60

(Note) Changes in forecast of dividend from the latest announcement : No

3. Consolidated Forecast for FY2022 (April 1, 2022 through March 31, 2023)

(% indicates the changes from the previous year)

Net income

Net income

Net sales

Operating income

Ordinary income

attributable to

per share

owners of parent

Million yen

%

Million yen

%

Million yen

%

Million yen

%

yen

Full year

248,000

20.1

1,200

-

2,000

-

4,500

-

131.49

(Note) Changes in forecast of consolidated results from the latest announcement

: No

• Notes
• 1. Major subsidiary changes during the first six months of the fiscal year under

review (changes affecting the scope of consolidation)

: No

1. Adoption of special accounting treatment pertaining to the preparation of quarterly

consolidated financial statements

: No

1. Changes in accounting policies, changes in accounting estimation, and restatement.

1. Changes in accounting policies due to revisions to accounting standards and

	other regulations:	:	Yes
(ii)	Changes in accounting policies except (i)	:	No
(iii)	Changes in accounting estimates	:	No
(iv)	Restatement	:	No

(4) Number of outstanding shares (common stock)
(i)	Number of shares at the end of the period	2Q of	35,242,846 shares	FY2021	35,242,846 shares
	(including treasury shares)	FY2022
(ii)	Number of treasury shares at the end of	2Q of	997,882 shares	FY2021	1,020,382 shares
	the period	FY2022
(iii)	Average number of shares during the	2Q of		2Q of
	period (cumulative from the beginning of	34,228,893 shares	34,222,043 shares
	FY2022	FY2021
	the fiscal year)

• These financial highlights are not subject to audit procedures.
• Note regarding appropriate use of this business forecast and other notices
  The above business forecast was based on the information that the company obtained at this time and certain premises that the company judged appropriate. Actual results may differ from this forecast as the result of a variety of factors.
  For cautionary notes regarding the assumptions that form the basis of the business forecast and the use of the business forecast, please refer to page 2 of the attachment "1. Qualitative Information for Quarterly Financial Results for the Period under Review (3) Explanation on consolidated financial results forecast and other forward-looking information."

• Table of Contents of Attachments

1. Qualitative Information for Quarterly Financial Results for the Period under Review ···············	2
(1)	Explanation on operating results	················································································	2
(2)	Explanation on financial position	················································································	2
(3)	Explanation on consolidated financial results forecast and other forward-looking information ·	2
2. Quarterly Consolidated Financial Results Forecast and Primary Notes ·······························	3
(1)	Quarterly consolidated statement of financial position ····················································	3

1. Quarterly consolidated statement of income and quarterly consolidated statement of comprehensive income ··························································································· 5

(3)	Quarterly consolidated statement of cash flows ····························································	7
(4)	Notes regarding quarterly consolidated financial statements ············································	8
	(Notes regarding going concern assumptions) ··························································	8
	(Notes when there was a substantial change in the amount of shareholders' equity) ········	8
	(Changes in accounting policies) ···········································································	8
	(Segment information, etc.) ··················································································	8

―1―

1. Qualitative Information for Quarterly Financial Results for the Period under Review

(1) Explanation on operating results

In the first six months of the fiscal year under review, the Japanese economy saw the revitalization of economic activity progress after a shift to a strategy of living with and managing the COVID-19 pandemic. However, amid surging prices of natural resources and disruptions in supply chains triggered by the spread of COVID-19 infections, it has become increasingly difficult to make predictions about the future, such as the impact on supply chains, etc. caused by deepening division around the world fueled by the crisis in Ukraine. Furthermore, rapid interest rate hikes by the US aimed at stemming inflation have caused the yen to depreciate and prices to rise, leading to the cooling of consumer confidence.

In the auto industry in which the Group operates, the number of vehicles sold is on a path of recovery in general, compared to the same period of the previous fiscal year. However, the automotive manufacturers, which are customers of the Group, remain in a situation where they are unable to maintain initially planned production quantities mainly due to prolonged semiconductor shortages and problems with other supply chains. Although demand is so robust that our customers have a huge backlog of orders caused by the ongoing supply constraints, major economies have accelerated the pace of interest rate hikes in order to hold down inflation, and it is necessary to closely observe the impact on the automotive market down the road.

In this operating environment, the performance during the first six months of the fiscal year under review is: Net sales increased by 13.1% year on year to 107,925 million yen, which led to an operating loss of 4,347 million yen (compared to an operating loss of 5,664 million yen in the same period of the previous fiscal year), an ordinary loss of 3,904 million yen (compared to an ordinary loss of 4,638 million yen in the same period of the previous fiscal year) and profit attributable to owners of the parent of 167 million yen due to the recording of extraordinary income (gain on sale of non-current assets) from the transfer of non-current assets (compared to a net loss attributable to owners of parent of 4,703 million yen in the same period of the previous fiscal year).

Earnings in the business segments are as follows.

(i) Japan

Net sales totaled 42,565 million yen (up 23.1% from the same period of the previous fiscal year), and operating loss was 2,163 million yen (compared to an operating loss of 2,269 million yen in the same period of the previous fiscal year).

(ii) North America

Net sales totaled 21,125 million yen (up 12.9% from the same period of the previous fiscal year), and operating loss was 1,145 million yen (compared to an operating loss of 1,877 million yen in the same period of the previous fiscal year).

(iii) Latin America

Net sales totaled 28,622 million yen (up 20.8% from the same period of the previous fiscal year), and operating loss was 1,615 million yen (compared to an operating loss of 1,853 million yen in the same period of the previous fiscal year).

(iv) Europe

Net sales totaled 128 million yen (down 69.2% from the same period of the previous fiscal year), and operating profit was 103 million yen (compared to an operating loss of 178 million yen in the same period of the previous fiscal year).

(v) China

Net sales totaled 14,634 million yen (down 13.9% from the same period of the previous fiscal year), and operating profit was 671 million yen (down 17.0% from the same period of the previous year).

(vi) Southeast Asia

Net sales totaled 850 million yen (down 16.7% from the same period of the previous fiscal year), and operating loss was 191 million yen (compared to an operating loss of 135 million yen in the same period of the previous fiscal year).

(2) Explanation on financial position

Total assets at the end of the second quarter of the fiscal year under review increased by 10,553 million yen from the end of the previous fiscal year to 169,551 million yen. This is mainly due to an increase of 5,056 million yen in cash and deposits and an increase of 2,056 million yen in raw materials and supplies.

Total liabilities increased by 4,484 million yen from the end of the previous fiscal year to 84,301 million yen. This is primarily due to an increase of 2,739 million yen in notes and accounts payable - trade.

Total net assets increased by 6,068 million yen from the end of the previous fiscal year to 85,249 million yen. This is primarily due to an increase of 7,497 million yen in foreign currency translation adjustment.

(3) Explanation on consolidated financial results forecast and other forward-looking information

Consolidated financial results forecast for the fiscal year ending March 2023 remains unchanged from the one that was announced on July 28, 2022.

―2―

2. Quarterly Consolidated Financial Results Forecast and Primary Notes

(1) Quarterly consolidated statement of financial position

			(Unit: Millions of yen)
		Previous consolidated fiscal	Second quarter of the fiscal
		year	Year under review
		(March 31, 2022)	(September 30, 2022)
Assets
	Current assets
	Cash and deposits	32,046	37,103
	Notes and accounts receivable - trade	39,880	40,492
	Securities	361	-
	Merchandise and finished goods	2,666	2,416
	Work in process	749	1,019
	Raw materials and supplies	13,254	15,311
	Other	5,077	5,846
	Allowance for doubtful accounts	(42)	(16)
	Total current assets	93,994	102,172
	Non-current assets
	Property, plant and equipment
	Buildings and structures, net	11,257	10,604
	Machinery, equipment and vehicles, net	10,898	12,181
	Other, net	14,600	14,408
	Total property, plant and equipment	36,756	37,193
	Intangible assets	1,302	1,275
	Investments and other assets
	Investment securities	12,733	12,599
	Other	14,639	16,856
	Allowance for doubtful accounts	(427)	(546)
	Total investments and other assets	26,944	28,909
	Total non-current assets	65,003	67,378
	Total assets	158,997	169,551

―3―