UACJ : FY2022 Q3 Financial Results

(% indicates year-on-yearchange)

Quarterly Financial Results for the Third Quarter

Ended December 31, 2022

[According to Japanese Accounting Standards] (Consolidated)

		February 7, 2023
Name of listed company	UACJ Corporation
Stock exchange Listings	Tokyo
Code number	5741	URL http://www.uacj.co.jp/english/
Representative	(Title)	Representative Director
	(Name) Miyuki Ishihara
Contact person	(Title)	General Manager, Accounting Department, Finance and Accounting
		Division

(Name) Atsushi Hashimoto	Phone [phone]
Scheduled date for submitting financial statements	February 13, 2023
Scheduled date of dividend distribution	-

Supplementary materials available on quarterly financial results: Yes

Quarterly results briefing: Yes (For institutional investors, securities analysts)

Note: Figures have been rounded to the nearest million yen.

1. Consolidated Business Performance for the Third Quarter Ended December 31, 2022 (from April 1, 2022 to December 31, 2022)

(1) Consolidated business performance (cumulative)

								Net income
	Net sales	Operating income	Ordinary income		attributable to
		owners of the
								parent
Nine months ended	¥million	%	¥million	%	¥million	%		¥million	%
December 31, 2022	728,326	29.4	15,455	(63.9)	10,449	(71.0)		7,330	(68.4)
December 31, 2021	562,652	38.1	42,816	-	35,970	-		23,233	-
(Note) Comprehensive income: Nine months ended December 31, 2022: ¥31,348 million (8.3%);
	Nine months ended December 31, 2021: ¥28,938 million (-%)
	Net income	Fully diluted net
	per share	income per share
Nine months ended		¥		¥
December 31, 2022		152.01		-
December 31, 2021		481.77		-
(2) Consolidated financial position
	Total assets	Net assets	Shareholders'
	equity ratio
As of:		¥million		¥million		%
December 31, 2022		901,082		273,893		28.1
March 31, 2022		828,729		247,589		27.5

(Reference) Shareholders' equity: ¥253,300 million as of December 31, 2022; ¥227,993 million as of March 31, 2022

2. Dividends

			Annual dividends
	1st quarter	2nd quarter	3rd quarter		Year-end	Total
Year ended/ending:	¥	¥	¥		¥	¥
March 31, 2022	－	0.00	－		85.00	85.00
March 31, 2023	－	0.00	－
March 31, 2023					85.00	85.00
(Forecasts)
(Note) Changes in dividend forecast during the quarter under review: None

3. Forecast for Consolidated Business Performance in the Term Ending March 31, 2023 (from April 1, 2022 to March 31, 2023)

(% indicates year-on-year change)

Net income

Net sales

Operating

Ordinary

attributable to

Net income

income

income

owners of the

per share

parent

¥million

%

¥million

%

¥million

%

¥million

%

¥

Full year

900,000

15.0

17,000 (71.4)

10,000 (80.9)

7,000 (78.2)

145.16

(Note) Changes in consolidated business performance forecasts during the quarter under review: Yes

For more details, please view the "UACJ Revises Consolidated Earnings Forecasts" released on February 7, 2023.

Notes

1. Changes in significant subsidiaries during the period (Changes in the scope of consolidation of specific subsidiaries): None
2. Application of particular accounting procedures to the preparation of quarterly consolidated financial statements: No
3. Changes in accounting policies, changes in estimates, or restatements

1. Changes in accounting policies owing to revisions in accounting standards: None
2. Changes in accounting policies other than a. above: None
3. Changes in accounting estimates: None
4. Restatements: None

1. Number of shares outstanding (common stock)

1. Number of shares issued at the end of the period (including treasury stock)

As of December 31, 2022	48,328,193 shares
As of March 31, 2022	48,328,193 shares

b. Number of shares of treasury stock at the end of the period

As of December 31, 2022	106,451 shares
As of March 31, 2022	105,534 shares

c. Average number of shares outstanding during the period (calculated cumulatively from the beginning of

the fiscal year)
For the nine months ended December 31, 2022	48,222,274 shares
For the nine months ended December 31, 2021	48,224,524 shares

*These financial results are outside the scope of quarterly review by certified public accountants or accounting auditors.

*Explanations pertaining to appropriate use of information concerning future forecasts.

The operating results forecasts and certain other statements contained in this document are forward- looking statements, which are rationally determined based on information available to the Company at the time the results were announced. Actual performance may differ substantially from these projections due to fluctuations in the economy or a variety of other known and unknown factors.

 List of attachments
1. Qualitative Information on Results for the Third Quarter Ended December 31, 2022 ・・	2
(1) Consolidated Business Performance・・・・・・・・・・・・・・・・・・・・・・	2
(2) Consolidated Financial Position ・・・・・・・・・・・・・・・・・・・・・・・・	3
(3) Forecast for Consolidated Business Performance ・・・・・・・・・・・・・・・・	3
2. Quarterly Consolidated Financial Statements・・・・・・・・	4
(1) Quarterly Consolidated Balance Sheets ・・・・・・・・・・・・・・・・・・・・	4
(2) Quarterly Consolidated Statements of Income and Comprehensive Income・・・・・	6
Quarterly Consolidated Statements of Income
(Nine months ended December 31, 2022)・・・・・・・・・・・・・・・・・・・・	6
Quarterly Consolidated Statements of Comprehensive Income
(Nine months ended December 31, 2022)・・・・・・・・・・・・・・・・・・・・	7
(3) Notes to the Quarterly Consolidated Financial Statements・・・・・・・・・・・・・	8
(Notes on the Assumption of a Going Concern) ・・・・・・・・・・・・・・・・・	8
(Notes in the Event of Significant Changes in the Amount of Shareholders' Equity)・・	8
(Changes in the Scope of Consolidation and Application of the Equity Method) ・・・・	8
(Additional Information)・・・・・・・・・・・・・・・・・・・・・・・・・・・・	8
(Segment Information, etc.)・・・・・・・・・・・・・・・・・・・・・・・・・・	11

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1. Qualitative Information on Results for the Third Quarter Ended December 31, 2022

(1) Consolidated Business Performance

During the first nine months of the fiscal year ending March 31, 2023, the global economy generally trended toward recovery from the downturn in demand caused by COVID-19, although there were variabilities among countries and regions. However, prices of energy resources rose owing to the prolonging of Russia's invasion of Ukraine, and interest rates also rose in the United States and elsewhere amid efforts to control inflation, impacting economic activities. As for the Japanese economy, there has been a balance between measures to prevent infection and economic activity, and there are signs of recovery in the economy, particularly in relation to personal consumption, however there are concerns related to increasing geopolitical risks, high prices caused by a spike in resource prices, a fall in automobile production owing partly to semiconductor shortages, and the resurgence of the spread of COVID-19. As a result, the business environment surrounding the Company remains uncertain.

In this environment, consolidated net sales were ¥728,326 million (up 29.4% year on year), due mainly to the rise in aluminum ingot prices and increase in sales volume. With regard to income, there was a positive impact from the increase in net sales as a result of higher sales volume, and the Company is making progress on passing on high energy and additive metals prices to sales prices, however energy costs increased, and the impact from inventories worsened in North America, etc. As a result, consolidated operating income was ¥15,455 million (down 63.9% year on year), consolidated ordinary income was ¥10,449 million (down 71.0% year on year), and net income attributable to owners of the parent was ¥7,330 million (down 68.4% year on year).

Information by segment is provided below.

Flat Rolled Products Business

In the Flat Rolled Products Business, domestic demand for sheet materials decreased compared with the first nine months of the preceding fiscal year in the main areas of beverage cans and transportation. Although there were sectors where demand increased year on year for some products, such as general machinery applications, overall demand for sheet products declined year on year. Overall demand for extruded products also declined year on year, due to a year-on-year decline in demand in the areas of automobiles and automotive heat exchangers.

The UACJ Group's domestic sales volume declined year on year for sheet materials for automotive materials and IT and electrical machinery applications, however overall sales volume of sheet materials was mostly flat year on year. Sales volume of extruded products declined year on year, as the impact of the fall in automobile production was significant.

Meanwhile, overseas sales volume of the Group increased year on year, owing to an increase in sales of can stock at Tri-Arrows Aluminum Inc., and sales at UACJ (Thailand) Co., Ltd. were also robust. Accordingly, the UACJ Group's total volume of flat rolled products increased year on year.

As a result of the above, sales in the Flat Rolled Products Business were ¥647,388 million (up 28.9% year on year), due to factors such as rising prices of aluminum ingots and an increase in sales volume. On the other hand, operating income amounted to ¥19,909 million (down 57.3% year on year) partly owing to a worse impact from inventories in North America, despite factors such as the impact of an increase in sales.

Precision-Machined Components and Related Businesses

Net sales came to ¥147,115 million (up 24.1% year on year) as a result of strong sales of products related to air conditioners and rising prices of aluminum ingots. On the other hand, operating income or loss reported a loss of ¥116 million (income of ¥263 million in the first nine months of the preceding fiscal year), owing mainly to the impact of a decline in production of automobiles in North America and an increase in costs associated with inflation.

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