Yorozu Corporation

Equities

7294

JP3961400003

Auto, Truck & Motorcycle Parts

Delayed Japan Exchange Other stock markets 11:39:06 2024-07-11 pm EDT			5-day change	1st Jan Change
1,150 ^JPY	+0.44%		-1.88%	+38.72%

2023	Yorozu Corporation Reports Earnings Results for the Full Year Ended March 31, 2023	CI
2022	Yorozu Announces Voting Results of Proposals	CI

Yorozu : FY2023 Financial Results

June 02, 2024 at 11:50 pm EDT

FY2023 Financial Results

Tokyo Stock Exchange Prime Market (Securities Code: 7294)

Tsutomu Hiranaka

President & COO

Note:

This is an internal English translation of the Report originally issued in Japanese, created for the convenience of English-speaking readers.

In case of any discrepancies, the Japanese version will take precedence.

Contents

Ⅰ . Financial Summary

Ⅱ. FY2023 Results

Ⅲ. FY2024 Forecast

Ⅳ. New Medium-Term Business Plan Ⅴ. Shareholder Return

(Explained in the new medium-term business plan)

Ⅰ . Financial Summary

Financial Summary

FY2023 Results

・Both sales and profits increased and the increase in operating income was 1.4 times YonY, thanks to a rise in sales and streamlining efforts.

・Net income fell short due to an impairment loss of 11.8 billion yen related to Chinese market. ・Our financial standing remains stable, supported by properly-plannedfundraising strategies.

FY2024 Forecast

・Under the current market trend, consistent production volume at major customers YonY is expected. ・Streamlining efforts will contribute to consistent operating income YonY despite of YSMC* launch costs.

・As we embark on the first year of the new medium-termbusiness plan, we are determined to achieve targets.

* YSMC stands for Yorozu Sustainable Manufacturing Center.

Shareholder Return

・Dividend per share paid at the end of FY2023: 17 yen (+2 yen from the previous announcement)

・Annual Dividend per share paid in FY2023: 30 yen (+5 yen from FY2022)

・Annual Dividend per share planned in FY2024: 31 yen with a dividend payout ratio of 72.0%

Ⅱ. FY2023 Results

FY2023 Consolidated Financial Summary (Year-on-Year)


Million yen	FY2022	FY2023	Year-on-Year	FY2023	Against Latest
Latest Forecast*2	Forecast

Sales	160,560	181,468	+13.0%	181,000	+0.3%

Operating Income	3,088	4,459	+44.4%	3,200	+39.3%

Ordinary Income	2,992	4,517	+51.0%	3,200	+41.2%

Net Income*1	1,422	(3,926)	--	(6,500)	--
	*1	Net income attributable to parent company shareholders *2 Estimated figures as of March 22, 2024

	FY2022	FY2023	Difference	Percentage
	A	B	B-A	of Change
Net Income per Share	59.00 yen	(162.07) yen	(221.07) yen	--

Exchange Rate Applied	131.62 yen/$	140.66 yen/$	+9.04 yen/$	+6.9%

Sales increased attributed to positive impact of higher steel prices and weakening of yen, in addition to market recovery.
Operating income witnessed growth thanks to the recovery in production volume in Japan and the Americas as well as suppressed fixed costs.
Ordinary income increased as a result of the rise in operating income.
Net income experienced a decline due to an impairment loss incurred by consolidated subsidiaries.

Consolidated Sales by Customer (FY2022 vs. FY2023)

200,000		181,468

	160,560
150,000		Toyota

	Toyota	Honda
	Honda
100,000
		Nissan
50,000	Nissan
0
	FY2022 actual	FY2023 actual

Million yen	Customer		FY2022	(%)	FY2023	(%)
		Nissan Gr.*		98,112	61.1%	119,142	65.7%
+3,459		Honda Gr.		25,234	15.7%	21,628	11.9%
（+26.7％）		Toyota Gr.		12,949	8.1%	16,408	9.0%


-3,606		Isuzu Gr.		7,814	4.9%	8,181	4.5%
（-14.3％）
		Mazda		3,498	2.2%	4,024	2.2%

+21,030		VW		2,391	1.5%	3,040	1.7%
（+21.4％）
Kubota		2,626	1.6%	2,597	1.4%



		Mercedes Benz		2,386	1.5%	2,088	1.2%
		Suzuki		2,319	1.4%	1,763	1.0%
		Subaru		1,418	0.9%	1,722	0.9%
		Others		1,813	1.1%	875	0.5%
		Total		160,560	100.00%	181,468	100.00%

* Includes sales to Renault and Mitsubishi

Sales from numerous customers showed a YonY increase. Notable growth was observed from Nissan & Toyota.

Analysis of Impact on Consolidated Operating Income (FY2022 vs. FY2023)

Million yen

701

Dies and

2,023 equipment

Streamlining and recovery

2,827

Sales

increase

Expenses for further growth

1,400	Decreased
units in China

		Transient

	1,567	effect in
		FY2022
		632

Others

581

4,459

3,088	Operating income
	(+1,371）
FY2022 results

FY2023 results

Operating income has seen an increase, benefiting from a rise in sales, steady

accumulation of streamlining efforts, and recovery of energy costs, etc.

Sales and Operating Income by Region Before Consolidation Adjustment (FY2022 vs. FY2023)

◆Sales	Japan	The Americas	Asia		Million yen

	+16,725	+19,379	(9,895)	Difference
	% of Change
120,000	+32.9％	+33.3％	(16.7)％

80,000		67,622		77,633
	58,254		59,252
	50,897			49,357

40,000
0
◆Operating	+3,895		(177)	(83)
Income
+170.5％		--％	(5.1)％
8,000		6,180

4,000	2,285				1,622	1,539

0
(4,000)			(1,152)	(1,329)
				FY2022	FY2023
	FY2022	FY2023	FY2022	FY2023

Japan: Sales and profits increased, driven by the rise in production in core business and dies & equipment, alongside effective cost recovery offsetting the hike in costs.

The Americas: A rise in production and favorable FX rates increased sales while profits dropped due to new model launch costs.

Asia: We faced challenges with a decline in both sales and profits due to a decrease in production volume.

Financial Standing for the Year Ended March 31, 2024

(Million yen）		Mar. 31, 2023 A	Mar. 31, 2024 B	Difference (B-A)
Net Worth			63,630		66,070	2,440	3.8%
Equity Ratio			45.0%		46.4%	--	--
Interest-bearing Debt	D/E	0.52	32,835	0.51	33,389	554	1.7%
ratio

Net Interest-bearing Debt	Net D/E	0.14	9,217	0.17	11,102	1,885	20.5%
ratio

Total Assets			141,511		142,257	746	0.5%

(Million yen）	FY2022	FY2023	Difference (B-A)
Full Term A	Full Term B

Cash Flow from Operating	2,924	12,531	9,607	328.6%
Activities

Cash Flow from Investing	(5,164)	(11,851)	(6,687)	--
Activities

Cash Flow from Financing	(4,819)	(1,741)	3,078	--
Activities

D/E ratio remains stable based on the properly-planned fund raising.
	Copyright © YOROZU Corporation		9

(Reference) Consolidated Balance Sheet Summary for the Year Ended March 31, 2024

				Cash & bank deposit	(1,330)
Million yen	Mar. 31, 2023	Mar. 31, 2024	Difference	Notes & accounts receivable	4,583
A	B	B-A	Inventories	(1,555)
Current Assets	72,582	75,373	2,791	Other current assets	771
Tangible fixed assets	(4,515)

Fixed Assets	68,928	66,884	(2,044)	Investments and other assets	2,448
Total Assets	141,511	142,257	746	Notes and accounts payable	647
				Electronically recorded	404
				obligations
Current Liabilities	44,393	49,815	5,422
Short-term debts	7,621

Fixed Liabilities	19,677	16,949	(2,728)	Long-term debts due within 1	(2,875)
				year
Total Liabilities	64,071	66,764	2,693
Others	(604)

Shareholders' Equity	62,961	58,394	(4,567)	Long-term debts	(3,599)
Other Accumulated				Others	923
668	7,676	7,008	Net income	(3,926)
Comprehensive Income
			Dividend payment	(749)
Non-controlling Interest,
13,809	9,421	(4,388)	Other securities valuation
etc.	1,658
			difference
Total Net Assets	77,439	75,493	(1,946)
Foreign currency translation	5,161
Total Liabilities and Net Assets				adjustment
141,511	142,257	746

		Copyright © YOROZU Corporation		10

Ⅲ. FY2024 Forecast

Consolidated Financial Forecast Summary for FY2024


Million yen	FY2023	Sales	FY2024	Sales	Difference	Percentage
Actual A	Ratio	Forecast B	Ratio	B-A	of Change


Sales	181,468	100.0%	180,000	100.0%	(1,468)	(0.8)%

Operating Income	4,459	2.5%	4,500	2.5%	+41	+0.9%

Ordinary Income	4,517	2.5%	2,750	1.5%	(1,767)	(39.1)%

Net Income*1	(3,926)	--	1,050	0.6%	+4,976	--

			*1 Net income attributable to the parent's shareholders

	FY2023 Actual	FY2024 Forecast	Difference	Percentage
	A	B	B-A	of Change
Net Income per Share	(162.07) yen	43.04 yen	＋205.11 yen	---

Exchange Rate Applied	140.66 yen/$	140.00 yen/$	(0.66) yen/$	(0.5)%

Sales will remain stable YonY, given the non-transparent market environment.
Operating income will remain at the same level YonY despite YSMC launch costs.

Consolidated Sales by Customer (FY2023 Results vs. FY2024 Forecast)

200,000	181,468	180,000

160,000
	Honda	Honda
120,000	Toyota	Toyota

80,000
	Nissan	Nissan
40,000
0
	FY2023 actual	FY2024 forecast

Million yen	Customer		FY2023	(%)	FY2024	(%)
		Nissan Gr.*		119,142	65.7%	116,450	64.7%
		Toyota Gr.		16,408	9.0%	21,796	12.1%
-1,390
（-6.4％）		Honda Gr.		21,628	11.9%	20,238	11.2%
		Isuzu		8,181	4.5%	5,010	2.8%
+5,388
（+32.8％）		Mazda		4,024	2.2%	4,410	2.5%
		VW		3,040	1.7%	3,559	2.0%
-2,692

（-2.3％）		Kubota		2,597	1.4%	2,430	1.4%

		Mercedes Benz		2,088	1.2%	1,915	1.1%
		Suzuki		1,763	1.0%	1,715	0.9%
		Subaru		1,722	0.9%	1,641	0.9%
		Others		875	0.5%	836	0.4%
		Total		181,468	100.00%	180,000	100.00%

*Includes sales to Renault and Mitsubishi

Notable growth is expected in sales to Toyota.

Analysis of Impact on Consolidated Operating Income (FY2023 Results vs. FY2024 Forecast)

Million yen

YSMC

launch costs

4,459

	75	1,648
2,112	Dies and	Decreased

equipment, etc.		units in China

818

320 Streamlining

efforts

Sales

increase

4,500

Operating income (+41）

FY2023 results

FY2024 forecast

Operating income will remain stable YonY with steady accumulation of streamlining efforts and recovery of energy costs, etc.

Sales and Operating Income by Region Before Consolidation Adjustment

(FY2023 Results vs. FY2024 Forecast)

◆Sales	Japan	The Americas	Asia		Million yen

	(6,216)	+7,374		(7,796)	Difference
120,000	(9.2)％	+9.5％	(15.8)％	% of Change
80,000	67,622		77,633	85,007
61,406
				49,357
					41,561

40,000
0
◆Operating	(3,683)	+1,661		(439)
Income
(59.6)％		--％	(28.5)％
8,000	6,180

4,000		2,497			1,539		1,100
				332
0
			(1,329)
(4,000)
	FY2023	FY2024	FY2023	FY2024	FY2023	FY2024

Japan: A decline in both sales and profits is expected due to a drop in sales of dies & equipment and YSMC launch costs.
The Americas: A rise in both sales and profits is expected thanks to an increase in production volume.
Asia: A decline in both sales and profits is expected due to a decrease in production volume.

Capital Investment and Depreciation

25,000

20,000

15,000

10,000

5,000

Million yen

Capital Investment by Region

Japan	The Americas	Asia

				15,179
			12,931
7,219		6,997

	3,367
FY20	FY21	FY22	FY23	FY24

Depreciation by Region

Japan

The Americas

Asia

10,246		9,880	9,814
	8,903
			8,165

FY20	FY21	FY22	FY23	FY24

Ⅳ. New Medium-Term Business Plan

Becoming the "Company of preferred choice" for all stakeholders

Agenda

1. Review of the Previous Medium-Term Business Plan

YSP2023-YorozuSustainability Plan 2023

2. New Medium-Term Business Plan

YSP2026-YorozuSustainability Plan 2026

What We Aim to Be and Management Policy
Performance Targets
Basic Policy and Key Strategies

1. Review of the Previous Medium-Term Business Plan

YSP2023

Attachments

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Disclaimer

YOROZU Corporation published this content on 03 June 2024 and is solely responsible for the information contained therein. Distributed by Public, unedited and unaltered, on 03 June 2024 03:49:02 UTC.

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Company Profile

YOROZU CORPORATION is a Japan-based company mainly engaged in the manufacture and sale of automotive mechanical parts, body parts and engine parts, and molds and equipment, as well as the development of business activities related to logistics, research and services related to each business. The Company operates through three regional segments including Japan, the Americas and Asia. The Company is involved in the manufacture and sale of automotive components, dies and facilities. The Company is also involved in the order receipt business, the development of parts, as well as the manpower dispatching and insurance agency business.

Sector

Auto, Truck & Motorcycle Parts

Calendar

2024-08-08 - Q1 2024 Earnings Release

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Automotive Systems

Yorozu Corporation

Equities

7294

JP3961400003

Auto, Truck & Motorcycle Parts

Yorozu : FY2023 Financial Results

Latest news about Yorozu Corporation

Chart Yorozu Corporation

Company Profile

Income Statement Evolution

Quarterly earnings - Rate of surprise

Sector Automotive Systems