Consolidated Results for
the three months ended June 30, 2020
August 7, 2020
Company name: TAIYO YUDEN CO., LTD.
URL: http://www.ty-top.com/
Representative: Shoichi Tosaka, President and Chief Executive Officer
Contact: Tomomitsu Fukuda, Senior Operating Officer, Deputy Chief of Management Planning Headquarters Telephone number: +81-3-6757-8310
Listing exchange: Tokyo Stock Exchange (Code Number: 6976) Preparation of supplementary
materials for the quarterly financial results: Yes
Holding of presentation of
quarterly financial results: Yes (For institutional investors and investment analysts)
1. Consolidated financial results for the period from April 1, 2020 to June 30, 2020
(1) Operating results | (Percentages represent changes from the same period in the previous fiscal year.) | |||||||
Net income attributable | ||||||||
Net sales | Operating income | Ordinary income | to owners of the parent | |||||
company | ||||||||
Three months ended | 60,493 | (11.9) | 7,923 | (17.4) | 7,371 | (16.7) | 4,541 | (36.5) |
June 30, 2020 | ||||||||
Three months ended | 68,635 | 15.2 | 9,595 | 60.4 | 8,846 | 28.3 | 7,151 | 26.7 |
June 30, 2019 | ||||||||
Note: Comprehensive income | ||||||||
ended on June 30, 2020 | 5,138 million yen ; | 58.2% | ended on June 30, 2019 | 3,247 million yen ;(55.1%) | ||||
Net income | Diluted net income | |||||||
per share | per share | |||||||
Yen | Yen | |||||||
Three months ended | 36.19 | 36.09 | ||||||
June 30, 2020 | ||||||||
Three months ended | 56.26 | 56.13 | ||||||
June 30, 2019 | ||||||||
(2) Financial position | ||||||||
Total assets | Net assets | Equity ratio | Net assets per share | |||||
Millions of yen | Millions of yen | % | Yen | |||||
As of June 30, 2020 | 353,076 | 213,454 | 60.3 | 1,696.08 | ||||
As of March 31, 2020 | 343,122 | 210,454 | 61.2 | 1,672.40 | ||||
(Reference) Shareholder's equity | As of June 30, 2020 | 212,862 million yen | As of March 31, 2020 | 209,891 million yen |
2. Dividend information
Cash dividends per share | |||
1Q | 2Q | 3Q | |
Yen | Yen | Yen | |
Year ended | - | 11.00 | - |
March 31, 2020 | |||
Year ending | - | ||
March 31, 2021 | |||
Year ending | |||
March 31, 2021 | 15.00 | - | |
(forecast) | |||
Note: No changes in the forecasted dividend during the first quarter ended June 30, 2020.
Year End | Total |
Yen | Yen |
15.0026.00
15.0030.00
- 1 -
3. Forecasts of operating results for the period from April 1, 2020 to March 31, 2021
(Percentages represent changes from same period in the previous fiscal year.) | |||||||||
Net income | |||||||||
Net sales | Operating income | Ordinary income | attributable to | Net income | |||||
owners of the | per share | ||||||||
parent company | |||||||||
Millions of yen | % Millions of yen | % Millions of yen | % Millions of yen | % | Yen | ||||
Six months ending | 130,000 | (8.4) | 15,000 | (26.1) | 14,000 | (27.0) | 8,500 | (44.6) | 67.73 |
September 30, 2020 | |||||||||
Year ending | 265,000 | (6.1) | 27,000 | (27.4) | 26,000 | (26.1) | 17,000 | (5.7) | 135.46 |
March 31, 2021
Note:
There are changes in the forecasted results during the first quarter ended June 30, 2020.
4. Note
- Changes in principal subsidiaries during the three months ended June 30, 2020: No Number of subsidiaries/Company Name Inclusion: - ; Exclusion; -
- Adoption of specific accounting procedures for quarterly consolidated reporting: No
- Changes in accounting policies and accounting estimates, and restatements
- Changes in accounting policies due to the revision of accounting standards: No
- Changes in accounting policies by the reasons other than "a.": No
- Changes in accounting estimates: No
- Restatement: No
- Number of common shares outstanding :
- Number of common shares outstanding (including treasury stock):
As of June 30, 2020 | 130,218,481 | shares | As of March 31, 2020 |
b. Number of treasury stock: | |||
As of June 30, 2020 | 4,716,000 | shares | As of March 31, 2020 |
c. Average number of common shares outstanding: | |||
Three months ended | 125,502,625 | shares | Three months ended |
June 30, 2020 | June 30, 2019 | ||
130,218,481 shares
4,715,775 shares
127,119,623 shares
Others :
- This financial press release is out of scope of the audit procedure.
- Forecasts of operating results include a number of assumptions based on information currently available and certain premises which were judged to be rational. Please note that these forecasts may significantly differ from actual results with various factors.
- TAIYO YUDEN will post the financial supplementary data on its web-site.
- 2 -
Table of contents | |||
1. Qualitative Information Concerning Financial Statements and Other ..................................... | 1 | ||
(1) | Consolidated Operating Results...................................................................................... | 1 | |
(2) | Consolidated Financial Conditions ................................................................................. | 4 | |
(3) | Forecasts of Consolidated Operating Results ................................................................. | 4 | |
2. | Consolidated Financial Statements .......................................................................................... | 6 | |
(1) | Consolidated Balance Sheets .......................................................................................... | 6 | |
(2) | Consolidated Statements of Operations and Consolidated Statements of | ||
Comprehensive Income................................................................................................... | 8 | ||
Consolidated Statements of Operations .................................................................. | 8 | ||
Consolidated Statements of Comprehensive Income.............................................. | 9 | ||
(3) | Notes on Consolidated Financial Statements ................................................................ | 10 | |
(Notes on Premise of Going Concern) .......................................................................... | 10 | ||
(Notes in Case of Significant Changes to Shareholders' Equity).................................. | 10 | ||
3. | Supplementary Information ................................................................................................. | 10 | |
(1) | Net Sales by Product Classification .............................................................................. | 10 |
1. Qualitative Information Concerning Financial Statements and Other
- Consolidated Operating Results Economy and Market Conditions
During the three-month period ended June 30, 2020 (April 1, 2020 - June 30, 2020), the business environment surrounding the TAIYO YUDEN Group ("the Group") was extremely challenging for the global economy with economic activity restricted by the impact from the COVID-19 pandemic. As for the future outlook, the economy is expected to head toward a recovery from the extremely challenging conditions as economic activity gradually resumes, but it will be necessary to monitor infectious disease trends, trade issues in individual countries, and fluctuations in financial and capital markets.
Based on the Business Continuity Plan (BCP), we have implemented various measures to prevent the spread of COVID-19 and to ensure the health and wellbeing of stakeholders, including employees and suppliers. At production sites in Japan and overseas, we have continued production activities after ensuring thorough measures to prevent infection while following the instructions and guidance of national and local governments in each country. In addition, we are making efforts for non-production employees to carry out duties and reduce the risk of infection by implementing such measures as working from home in accordance with the instructions and requests on preventing the spread of infection from national and local governments in each country.
As a result of the current state of emergency due to COVID-19, there have been various changes in society and the management environment. The Group holds ¥58,706 million in cash and deposits, and has maintained a sound financial structure with an equity ratio of 60.3%. With commitment line agreements concluded with a number of financial institutions also standing at ¥30.0 billion, the Group has secured the means for responding to contingencies and will continue its business.
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Company Actions Planned to Offset These Conditions
The Group aimed to achieve its medium-term targets and management vision by capturing focus markets such as automotive, IT infrastructure/industrial equipment, healthcare, the environment and energy centered on the solution business that leverages the Group's core technologies, in addition to cutting-edge products and high reliability products that draw on the Group's strengths of research and development and production technology. Moreover, the Group is strengthening its manufacturing capabilities in order to build a structure that can enhance profitability and meet the future increase in demand for components. In addition to enhancing production capacity, the Group is accelerating improvements in production efficiency by promoting advances in underlying technologies and transforming production methods.
Overview of Business Performance
Consolidated net sales for the three-month period ended June 30, 2020 totaled ¥60,493 million, which is a decrease of 11.9% compared to the corresponding period of the previous fiscal year. Operating income was ¥7,923 million, a decrease of 17.4%. The Group recorded a decline in sales and profit due to such factors as constraints on operations at production subsidiaries in the Philippines and Malaysia which occurred due to the impact of COVID-19 between March and May 2020. Ordinary income was ¥7,371 million, a decrease of 16.7%, mainly owing to foreign exchange losses of ¥446 million. Moreover, as a result of recording ¥1,513 million in extraordinary loss, including loss related to COVID-19 at overseas subsidiaries, net income attributable to owners of parent company amounted to ¥4,541 million, down by 36.5% from the corresponding period of the previous fiscal year.
Exchange Rate
The average foreign currency exchange rate for the three-month period ended June 30, 2020 was US$1: ¥107.61. This is an appreciation of ¥3.34 as compared to the average realized in the corresponding period of the previous fiscal year of US$1: ¥110.95.
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Net Sales by Product Classification
Capacitors
The capacitor product classification is comprised of multilayer ceramic capacitors.
Product sales for information equipment and IT infrastructure/industrial equipment were higher as compared to the corresponding period of the fiscal year while sales for consumer products, communication equipment, and automobiles were lower. As a result, net sales for the three-month period ended June 30, 2020 totaled ¥40,075 million, which is a decrease of 7.5% compared to the corresponding period of the previous fiscal year.
Ferrite and Applied Products
This product classification is comprised of various inductors including wire-wound inductors and multilayer chip inductors.
Product sales for communication equipment were higher as compared to the corresponding period of the previous fiscal year while sales for consumer products, information equipment, automobiles, and IT infrastructure/ industrial equipment were lower. As a result, in the three-month period ended June 30, 2020, sales decreased by 8.2% to ¥7,928 million as compared to the corresponding period of the previous fiscal year.
Integrated Modules & Devices
This product classification is comprised of FBAR/SAW devices for mobile communications, a wide range of power supply and high frequency modules, embedded-parts multilayer wiring substrates "EOMINTM" and product mounting business done by a subsidiary company.
For the three-month period ended June 30, 2020, sales of FBAR/SAW devices for mobile communications etc. decreased year over year. This resulted in a 27.5% decrease in sales for this product classification year over year to ¥9,075 million.
Others
For this product classification, the Group manufactures and sells aluminum electrolytic capacitors and power storage devices.
Net sales in this classification increased to ¥3,413 million, down 17.5% year over year.
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(2) Consolidated Financial Conditions
Assets
Total assets as of June 30, 2020 increased ¥9,953 million to ¥353,076 million compared with the end of the previous fiscal year. Current assets increased ¥4,090 million. This increase in current assets was mainly due to the increase in finished products of ¥3,611 million, work in process of ¥2,731 million, raw materials and supplies of ¥1,810 million, and the decrease in trade notes and accounts receivable of ¥4,372 million.
Fixed assets increased ¥5,862 million owing to the upswing in property, plant and equipment of ¥5,498 million.
Liabilities
Total liabilities as of June 30, 2020 were ¥ 139,621 million, an increase of ¥6,953 million as compared to the balance at March 31, 2020. This was mainly due to an increase of ¥ 8,773 million in long-term borrowings, and decrease of ¥2,489 million in accrued bonuses for employees.
Net Assets
Net assets as of June 30, 2020 increased ¥2,999 million to ¥213,454 million compared with the end of the previous fiscal year.
(3) Forecasts of Consolidated Operating Results
Consolidated operating earnings forecasts for the year ending March 31, 2021 are as follows.
(millions of yen)
Period | Six months ending | Year ending | ||
September 30, 2020 | March 31, 2021 | |||
Item | ||||
Amount | YoY (%) | Amount | YoY (%) | |
Net sales | 130,000 | (8.4) | 265,000 | (6.1) |
Operating income | 15,000 | (26.1) | 27,000 | (27.4) |
Ordinary income | 14,000 | (27.0) | 26,000 | (26.1) |
Net income attributable | 8,500 | (44.6) | 17,000 | (5.7) |
to the owners of parent | ||||
company |
Because of the sharp downturn in the global economy due to the COVID-19 pandemic as well as the increasing uncertainty resulting from trade issues
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and geopolitical risk for individual countries, it was difficult to calculate reasonable full-year forecasts of operating results for the fiscal year ending March 31, 2021 as of May 12, 2020. Accordingly, the Company only published the forecast of consolidated operating results for the first quarter of the fiscal year ending March 31, 2021. The Company will now publish the full-year forecasts of consolidated operating results for the fiscal year ending March 31, 2021 as shown above based on information and forecasts available as of the date of this report.
In the forecasts of operating results for the fiscal year ending March 31, 2021, sales and profit are forecast to decrease based on the assumption that the impact of COVID-19 will persist for the full year. During the first quarter (the three-month period ended June 30, 2020), there were constraints on operations at production subsidiaries in the Philippines and Malaysia due to the impact of COVID-19, but we have assumed that these production subsidiaries will be able to operate as normal from the second quarter onward. The forecast is based on an average foreign currency exchange rate of US$1:¥107.
Despite the current uncertainty and downturn in demand due to the impact of COVID-19, we have assumed there will be no significant changes to the trend of increasing demand for electronic components over the medium term. We expect that demand for large, high reliability components will increase alongside advancing use of electronics and electronic components and enhancements in performance for automobiles and information infrastructure, such as base station communication devices and data centers. These are our focus markets. Moreover, there are ongoing enhancements in the functionality and performance of communication equipment, such as 5G smartphones, and we believe there will be an increase in cutting edge products that require advanced technical capabilities. The Company will continue to make the essential investment to prepare for this demand and for achieving future growth. Meanwhile, we will continue working to create a more resilient distributed production system and to improve production efficiency utilizing AI and other means as measures to address risks going forward.
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2. Consolidated Financial Statements
(1) Consolidated Balance Sheets
(Millions of yen) | ||
As of March 31, | As of June 30, | |
2020 | 2020 | |
ASSETS | ||
Current assets: | ||
Cash and deposits | 59,622 | 58,706 |
Trade notes and accounts receivable | 64,680 | 60,307 |
Merchandise and finished products | 18,134 | 21,745 |
Work in process | 28,829 | 31,560 |
Raw materials and supplies | 15,624 | 17,435 |
Other | 5,220 | 6,450 |
Allowance for doubtful receivables | (182) | (185) |
Total current assets | 191,930 | 196,021 |
Fixed assets: | ||
Property, plant and equipment: | ||
Buildings and structures | 97,082 | 108,144 |
Machinery and equipment | 278,081 | 283,471 |
Tools, furniture and fixtures | 27,578 | 27,865 |
Land | 12,661 | 12,650 |
Construction in progress | 18,307 | 12,396 |
Accumulated depreciation | (289,311) | (294,629) |
Net property, plant and equipment | 144,400 | 149,898 |
Intangible fixed assets: | ||
Other | 1,293 | 1,246 |
Total intangible fixed assets | 1,293 | 1,246 |
Investments and other assets: | ||
Investment securities | 2,671 | 2,964 |
Other | 3,153 | 3,268 |
Allowance for doubtful receivables | (326) | (323) |
Total investments and other assets | 5,498 | 5,910 |
Total fixed assets | 151,192 | 157,055 |
Total assets | 343,122 | 353,076 |
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(Millions of yen) | ||
As of March 31, | As of June 30, | |
2020 | 2020 | |
LIABILITIES | ||
Current liabilities: | ||
Trade notes and accounts payable | 26,603 | 26,984 |
Short-term borrowings | 19,250 | 19,250 |
Current portion of long-term borrowings | 2,663 | 2,462 |
Income taxes payable | 1,903 | 1,745 |
Accrued bonuses for employees | 4,576 | 2,086 |
Accrued bonuses for directors and corporate auditors | 233 | 58 |
Other | 29,103 | 28,933 |
Total current liabilities | 84,333 | 81,521 |
Long-term liabilities: | ||
Long-term borrowings | 34,752 | 43,526 |
Accrued retirement benefits for directors and corporate | 49 | 36 |
auditors | ||
Net defined benefit liability | 4,200 | 4,306 |
Other | 9,332 | 10,230 |
Total long-term liabilities | 48,334 | 58,100 |
Total liabilities | 132,667 | 139,621 |
NET ASSETS | ||
Shareholders' equity: | ||
Common stock | 33,575 | 33,575 |
Capital surplus | 49,903 | 49,903 |
Retained earnings | 150,263 | 152,786 |
Treasury stock | (8,596) | (8,596) |
Total shareholders' equity | 225,146 | 227,668 |
Accumulated other comprehensive income | ||
Net unrealized holding gains on securities | 430 | 756 |
Deferred gains (losses) on hedges | (82) | (19) |
Foreign currency translation adjustments | (14,779) | (14,725) |
Remeasurements of defined benefit plans | (824) | (818) |
Total accumulated other comprehensive income | (15,255) | (14,806) |
Stock acquisition rights | 563 | 592 |
Total net assets | 210,454 | 213,454 |
Total liabilities and net assets | 343,122 | 353,076 |
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(2) Consolidated Statements of Operations and Conslidated Statements of Comprehensive Income
(Consolidated Statements of Operations)
(Millions of yen) | |||
Three months ended | Three months ended | ||
June 30, 2019 | June 30, 2020 | ||
Net sales | 68,635 | 60,493 | |
Cost of sales | 46,825 | 41,726 | |
Gross profit | 21,810 | 18,766 | |
Selling, general and administrative expenses | 12,214 | 10,843 | |
Operating income | 9,595 | 7,923 | |
Non-operating income: | |||
Interest income | 92 | 40 | |
Dividend income | 20 | 18 | |
Subsidy income | 31 | 90 | |
Other | 54 | 57 | |
Total non-operating income | 198 | 206 | |
Non-operating expenses: | |||
Interest expense | 99 | 75 | |
Equity in losses of affiliate | 147 | 123 | |
Loss on foreign exchange | 606 | 446 | |
Depreciation of inactive noncurrent assets | 50 | 48 | |
Other | 44 | 64 | |
Total non-operating expenses | 948 | 758 | |
Ordinary income | 8,846 | 7,371 | |
Extraordinary gains: | |||
Gain on sales of property, plant and equipment | 1 | 2 | |
Gain on sales of investment securites | 16 | - | |
Total extraordinary gains | 18 | 2 | |
Extraordinary losses: | |||
Loss on disposal and sales of property, plant and equipment | 57 | 31 | |
Loss by COVID-19 | - | 1,243 | |
Anti-monopoly Act related loss | 184 | - | |
Other | 8 | 239 | |
Total extraordinary losses | 250 | 1,513 | |
Income before income taxes | 8,613 | 5,860 | |
Income taxes - current | 1,025 | 932 | |
Income taxes - deferred | 437 | 386 | |
Total income taxes | 1,462 | 1,318 | |
Net income | 7,151 | 4,541 | |
Net income attributable to owners of parent company | 7,151 | 4,541 |
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(Consolidated Statements of Comprehensive Income)
(Millions of yen) | ||
Three months ended | Three months ended | |
June 30, 2019 | June 30, 2020 | |
Net income | 7,151 | 4,541 |
Other comprehensive income | ||
Net unrealized holding gains (losses) on securities | (161) | 336 |
Deferred gains (losses) on hedges | 3 | 62 |
Foreign currency translation adjustments | (3,755) | 194 |
Remeasurement of defined benefit plans | 10 | 2 |
Total other comprehensive income (loss) | (3,903) | 597 |
Comprehensive income | 3,247 | 5,138 |
(Breakdown) | ||
Comprehensive income attributable to shareholders | 3,247 | 5,138 |
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(3) Notes on Consolidated Financial Statements
(Notes on Premise of Going Concern) No relevant items to report.
(Notes in Case of Significant Changes to Shareholders' Equity) No relevant items to report.
3. Supplementary Information
- Net Sales by Product Classification
(Millions of yen)
Three months ended | Three months ended | Increase/ | ||||
Product classification | June 30, 2019 | June 30, 2020 | (Decrease) | |||
Amount | Share | Amount | Share | Amount | % | |
[%] | [%] | |||||
Capacitors | 43,338 | 63.1 | 40,075 | 66.2 | (3,263) | (7.5) |
Ferrite and applied products | 8,633 | 12.6 | 7,928 | 13.1 | (705) | (8.2) |
Integrated modules & devices | 12,523 | 18.2 | 9,075 | 15.0 | (3,448) | (27.5) |
Others | 4,139 | 6.0 | 3,413 | 5.6 | (725) | (17.5) |
Total | 68,635 | 100.0 | 60,493 | 100.0 | (8,142) | (11.9) |
Note: The aforementioned amounts are exclusive of consumption and related taxes.
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Taiyo Yuden Co. Ltd. published this content on 07 August 2020 and is solely responsible for the information contained therein. Distributed by Public, unedited and unaltered, on 19 August 2020 05:56:01 UTC