Ichikoh Industries : Summary of consolidated financial results as of December 31, 2022(Partially corrected 10 March)

Summary of consolidated financial results as of December 31, 2022

											13-Feb-23
Listed Company	ICHIKOH INDUSTRIES, LTD.			Tokyo First section
Code No,	7 2 4 4					URL http://www.ichikoh.com/
Represented by	Christophe Vilatte, President, CEO, Representative director
Contact	Masaki Takamori GM of Corporate Planning Depart TEL [phone]
Date for holding shareholders' meeting: March 24, 2023
Date for submitting financial statement reports: March 27, 2023
Date for starting dividends payment: March 27, 2023
Preparation of Supplementary Explanations of Financial Results: Yes
Financial Results Presentation to Be Held: Yes ( Institutional Investor, Analyst )
							(Figures under million yen rounded down)
1. Summary of financial results as of December 31, 2022 (January 1, 2022 ～ December 31, 2022)
(1) Consolidated operating results		(Percentages(%) shows fluctuation to the previous.)
		Net sales		Operating income		Ordinary income		Net income attributable
					to the shareholder
		million yen	%	million yen	%		million yen	%		million yen	%
31-Dec-22		135,451	7.9	3,937	△ 29.2		5,351	△ 17.8		4,423	11.1
31-Dec-21		125,510	10.2	5,562	125.3		6,506	28.9		3,983	39.4

(Note)	Comprehensive income:
	Dec 31,2022 5,378 million yen ( ◬11.5 %)	Dec 31,2021 6,077 million yen (	-%)
		Net income per share	Net income	Ordinary income	Operating income
	Net incomeper share	including assuming
	/ Shareholders' equity	/ Total assets	/ Net sales
		diluted stocks
	yen	yen	%		%	%
31-Dec-22	46.02	-	8.6		4.5	2.9
31-Dec-21	41.44	-	8.6		5.9	4.4
(Reference)	Investment gains / losses on equity method :
	Dec 31,2022 1,575 million yen	Dec 31,2021 1,333 million yen

1. Consolidated financial conditions

	Total assets		Net assets	Ratio of	Net assets per share
		shareholders' equity
	million yen		million yen	%	yen
31-Dec-22	125,915		55,007	43.2	565.32
31-Dec-21	112,521		48,523	43.5	508.97
(Reference)	Shareholders' equity:
	Dec 31,2022 54,334 million yen	Dec 31,2021	48,920 million yen

1. Consolidated cash flow

	Operating activities			Investing activities		Financing activities		Cash and cash
					equivalents
													at the end
		million yen			million yen		million yen		million yen
31-Dec-22		13,005				△5,912		△4,404		8,631
31-Dec-21		9,209				△6,684		△2,350		5,720
2. Dividends
		Dividend per share			Total payment	Dividends	Total payment
	1Q	2Q		3Q	4Q	Full Year			(Full year)	payout	/ Shareholders' equity
	yen	yen		yen	yen	yen			million yen	%	%
31-Dec-21	-	3.50		-		3.50	7.00		672	16.9		1.5
31-Dec-22	-	4.50		-		4.50	9.00		865	19.6		1.7
31-Dec-23 (forecast)	-	5.50		-		5.50	11.00				19.2

3. Consolidated earnings forecasts for the year ending December 31, 2023 (January 1, 2023 ～ December 31, 202 (Percentages(%) shows fluctuation to the previous respectively.)

							Net income
	Net sales	Operating income	Ordinary income	attributable to the	Net income
	shareholder parent	per share
							company
	million yen	%	million yen	%	million yen	%	million yen	%	yen
First half	72,200	14.7	3,400	203.2	4,100	154.1	3,000	136.8	31.21
Full year	138,200	2.0	6,000	52.4	7,500	40.2	5,500	24.3	57.22

• Note

(1) Principal affiliates' transfer in this fiscal term (in accordance with the change of consolidation sco No

Added	-	(Corporate name)
Excluded	-	(Corporate name)

1. Changes in accounting policies, changes in accounting estimates, and restatement
2. • Changes in accounting policies due to revisions to accounting standard: Yes

② Changes in accounting policies due to other reasons: No

③ Changes in accounting estimates: Yes

④ Restatement: No

1. Number of issued stocks (Common stocks)

• Number of issued stocks at the end (including treasury stocks)

31-Dec-22

96,292,401

31-Dec-21

96,292,401

• Number of treasury stocks at the end

31-Dec-22

179,414

31-Dec-21

176,543

• Average shares outstanding over period (cumulative; consolidated)

31-Dec-22 96,114,528 31-Dec-21 96,121,097

(Reference) Summary of Non-consolidatedfinancial results as of December 31, 2022 1. Summary of financial results as of December 31, 2022 (January 1, 2022 ～ December 31, 2022)

(1) Operating results			(Percentages(%) shows fluctuation to the previous.)
	Net sales		Operating income	Ordinary income	Net income
	million yen	%	million yen	%	million yen	%	million yen	%
31-Dec-22	94,304	△ 0.2	1,033	△ 71.7	3,115	△ 15.2	2,040	△ 28.4
31-Dec-21	94,465	5.8	3,646	20.2	3,671	△ 31.0	2,848	△ 10.7
	Net income		Net income per share
		including
	per share
		assuming diluted stocks
		yen		yen
31-Dec-22	21.23		－
31-Dec-21	29.64		－
(2) Financial conditions
	Total assets		Net assets	Ratio of		Net assets per share
		shareholders' equity
	million yen		million yen		%		yen
31-Dec-22	92,215		42,494	46.1		442.14
31-Dec-21	86,743		40,193	46.3		418.17
(Reference) Shareholders' equity:
	Dec 31,202 42,494 million yen	Dec 31,202	40,193 million yen

• Indication for status of an audit
  This is not subject of an audit based on Financial Instruments and Exchange Act, and the audit is not finished when this is released.
• Appropriate use of business forecast; other special items:
  Those prospects have been made on the basis of the information available as of today. Accordingly, actual financial results may materially differ from those prospects due to various factors and events that may occur hereafter.

1. Summary of Financial Results

(1) Summary of Financial Results of this fiscal year

In the Japanese economy of this consolidated fiscal year, the business sentiment has improved although the slowdown in recovery of production by the rise of domestic corporate goods prices due to the historically weak yen and soaring resource prices affected by the situation in Ukraine. As for the global economy, in the United States, although the economy continues to recover gradually, there are concerns about downside risks due to the effects of monetary tightening. In China, the effects of the resurgence of infections have led to signs of a slowdown in recovery. In ASEAN, Indonesia is recovering moderately, and new car sales were strong, led by the stronger sales promotions and the easing of parts supply constraints. The economy in Thailand also recovered, and Malaysia continued a gradual recovery led by domestic demand, although the expansion of production slowed down due to factors such as the global slowdown in demand for semiconductors.

The automotive industry, to which the company group belongs, the number of automobiles produced in Japan remained at about the same level as the previous year due to the impact of parts supply constraints etc. caused by activity restrictions by the Chinese government. The production volume in China increased slightly year-on-year, and Malaysia and Indonesia have a significant year-on-year growth, resulting in a significant year-on-year increase in the total of the three countries including Thailand.

In such an environment, in the current consolidated fiscal year, the rate of increase/decrease in net sales for the Company on a non-consolidated basis was slightly lower than the domestic market, which is our core market. However, the increase rate of sales of 3 ASEAN subsidiaries significantly exceeded the market growth rate of the market in 3 ASEAN countries due to the effects of the launch of the overseas new products, etc.

As a result, the sales increased to 135,452 million yen (up 7.9% year-on-year) on a consolidated basis. Despite cost reductions and productivity improvements, the operating income was 3,937 million yen (down 29.2% year-on-year) due to soaring raw material and energy prices and the impact of exchange rates, etc. The ordinary income was 5,351 million yen (down 17.8% year-on- year) due to the income from affiliated companies under equity method of 1,575 million yen, etc., and the net income attributable to the parent company increased to 4,423 million yen (up 11.1% year-on-year) due to the recognition of deferred tax assets in an overseas subsidiary and other factors.

Results by each segment are as follows:

1. Auto-Components business

The rate of increase/decrease in net sales for the Company on a non-consolidated basis was slightly lower than the domestic market, which is our core market. However, the increase rate of sales of 3 ASEAN subsidiaries significantly exceeded the market growth rate of the 3 ASEAN countries due to the effects of the launch of the overseas new products, etc. As a result, the sales of the auto-components business increased to 127,931 million yen (up 6.4% year-on-year). Despite cost reductions and productivity improvements, the operating income was 3,460 million yen (down 31.9% year-on-year) due to soaring raw material and energy prices and the impact of exchange rates, etc

2. After-Market business

In the after-market business, sales was 9,069 million yen (up 6.4% year-on-year) due to strong sales of lighting products, winter wipers, etc. to mass retailers, as well as sales through dealer options and the Internet. The operating income increased to 472 million yen (up 8.7% year-on- year) despite the increase in purchasing costs caused by the weaker yen offset by the profit from the increase in sales.

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In addition, from the beginning of this consolidated fiscal year, "Accounting Standards for Revenue Recognition" (Corporate Accounting Standards No. 29, March 31, 2020, hereafter "Revenue Recognition Accounting Standard"), etc., is applied, and the figures related to this consolidated fiscal year are figures after applying such accounting standards, etc. Also, each type of increase/decrease figures and rates are also calculated by comparisons with the figures after such accounting standards, etc. is applied.

The application of the Revenue Recognition Accounting Standards, etc. is in accordance with the transitional treatment set forth in the proviso to Paragraph 84 of the Revenue Recognition Accounting Standards, and the cumulative impact of retrospectively applying the new accounting policy before the beginning of this consolidated accounting period is adjusted to the retained earnings at the beginning of this fiscal year.

As a result, the sales for this consolidated fiscal year decreased by 2,283 million yen, cost of sales decreased by 1,636 million yen, and operating income, ordinary income and net income before income taxes and other adjustments decreased by 646 million yen respectively. In addition, the retained earnings balance increased by 1,031 million yen.

For more information, please refer to page 11, "2. Quarterly Consolidated Financial Statements and Key Notes(3) Notes on Quarterly Consolidated Financial Statements (Changes to Accounting Policy)."

(2) Future Outlooks

As for the performance forecast for the fiscal year ending December 31, 2023, the market trends for automobile production continue to be unpredictable due to the impact on the supply chain, soaring raw material prices, tight supply and demand for semiconductors, in addition to the impact from the transfer of the mirror business.

Despite those, there are prospects of new orders and recovery in production in Japan and the ASEAN region, and also effects such as price pass-through, thorough cost reductions, and productivity improvements can be expected. As a result, the forecasts are: sales 138,200 million yen, operating income 6,000 million yen, ordinary income 7,500 million yen, and net income attributable to the parent company of this fiscal year 5,500 million yen.

2. Basic concept on the selection accounting standards

The Japanese accounting standard is currently adopted in the company to realize easier year-on-year comparison and comparability to other companies of the same industry in Japan. However, comprehensively taking into account the fact that IFRS is adopted in the parent company, the company continues to consider the change of accounting system to IFRS in the future.

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3. Consolidated Financial Statement

(1) Consolidated Balance Sheets		(Millions of yen)
	Previous Year End	Current Year End
	(As of December 31, 2021) (As of December 31, 2022)
Assets
Current assets
Cash and deposits	5,720	8,631
Notes and accounts receivable-trade	19,091	-
Notes, accounts receivable-trade, and contract assets	-	27,121
Electronically recorded monetary claims-operating	373	388
Merchandise and finished goods	5,475	5,438
Work in progress	646	2,776
Raw materials and supplies	4,771	5,284
Short-term loans	10,186	10,841
Other	1,913	2,857
Allowance for doubtful accounts	(19)	(60)
Total current assets	48,160	63,280
Noncurrent assets
Property, plant and equipment
Buildings and structures	28,974	29,693
Accumulated depreciation	(16,725)	(17,361)
Buildings and structures, net	12,248	12,332
Machinery, equipment and vehicles	44,246	45,261
Accumulated depreciation	(26,452)	(27,507)
Machinery, equipment and vehicles, net	17,793	17,753
Tools, furniture and fixtures	23,846	14,363
Accumulated depreciation	(17,238)	(11,729)
Tools, furniture and fixtures, net	6,607	2,633
Land	2,757	2,788
Lease assets	6,303	7,397
Accumulated depreciation	(4,106)	(4,413)
Lease assets, net	2,196	2,983
Construction in progress	3,749	3,164
Total property, plant and equipment	45,352	41,656
Intangible assets
Other	995	859
Total intangible assets	995	859
Investments and other assets
Investment securities	1,373	2,268
Long-term loans receivable	1,270	1,128
Investment in affiliates	9,291	9,477
Net defined benefit asset	543	303
Deferred tax assets	4,486	5,569
Other	1,056	1,374
Allowance for doubtful accounts	(7)	(3)
Total investments and other assets	18,013	20,118
Total noncurrent assets	64,360	62,634
Total assets	112,521	125,915

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