Yashima : 【Delayed】Summary of Financial Results for the Year Ended March 2022 (Consolidated)

May 13, 2022

Summary of Financial Results for the Year Ended March 2022 [Japan GAAP] (Consolidated)

Name of Company:	Yashima & Co., Ltd.	Stock Exchange Listing: TSE
Stock Code:	7677	URL https://www.yashima-co.co.jp
Representative:	Title: President and Representative Director	Name: Kazuaki Takada
Contact Person:	Title: Director and General Manager of Administrative Division	Name: Masahiro Abe
	Phone: [phone]

Date of ordinary general meeting of shareholders:	June 28, 2022
Date of commencement of dividend payment:	June 13, 2022
Date of filing of securities report:	June 29, 2022
Preparation of supplementary materials:	Yes (in Japanese)
Convening of a results meeting:	Yes (in Japanese) (For analysts)
	(Note: Amounts are rounded to nearest million yen.)

1. Financial results for the current fiscal year (April 1, 2021 - March 31, 2022)

(1) Operating results (consolidated)				(Percentage figures represent year-on-year change)
	Net sales		Operating profit	Ordinary profit	Profit attributable to
		owners of parent
	Million yen		%	Million yen	%	Million yen	%	Million yen	%
Year ended March 2022	28,293		−	372	(29.3)	549	(15.9)	301	7.9
Year ended March 2021	31,828		(11.8)	526	49.9	653	47.9	279	12.3

(Note) Comprehensive income	Year ended March 2022	428 million yen [(0.9)%]
	Year ended March 2021	432 million yen [－%]

	Net income per	Net income per	Return on equity	Ratio of ordinary	Ratio of operating
	share		share fully diluted	profit to assets	profit to net sales
		Yen	Yen	%	%	%
Year ended March 2022		105.97	−	3.3	2.3	1.3
Year ended March 2021		98.49	−	3.2	2.6	1.7
(Note) Equity in income (losses) of affiliates	Year ended March 2022	1 million yen
		Year ended March 2021	(0) million yen

The Group began applying the Accounting Standard for Revenue Recognition (ASBJ Statement No. 29, revised March 31, 2020) and related guidance from the beginning of fiscal year ended March 31, 2022. Results for fiscal year ended March 31, 2022 show the figures after application of this accounting standard and the percent year on year change in net sales is not provided.

(2) Financial position (consolidated)

	Total assets		Net assets	Capital adequacy ratio	Net assets per share
	Million yen		Million yen	%	Yen
Year ended March 2022	24,256		9,341	38.5	3,280.94
Year ended March 2021	23,679		8,990	38.0	3,165.84
(Note) Shareholders' equity	Year ended March 2022	9,341 million yen
	Year ended March 2021	8,990 million yen
(3) Cash flow position (consolidated)
	Net cash provided by		Net cash provided by	Net cash provided by	Cash and cash
	(used in) operating		(used in) investing	(used in) financing	equivalents at end of
	activities		activities	activities	period
	Million yen		Million yen	Million yen	Million yen
Year ended March 2022	(1,501)		(469)	(70)	7,421
Year ended March 2021	709		(120)	(70)	9,326

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2. Dividends

		Dividend per share		Total	Payout ratio	Dividends/net
						annual	assets
	End of 1Q	End of 2Q	End of 3Q	End of FY	Total	(consolidated)
	dividend	(consolidated)
	Yen	Yen	Yen	Yen	Yen	Million yen	%	%
Year ended March 2021	−	0.00	−	25.00	25.00	70	25.4	0.8
Year ended March 2022	−	0.00	−	25.00	25.00	71	23.6	0.8
Year ending March 2023	−	0.00	−	25.00	25.00		26.8
(forecast)

3. Forecast for the fiscal year ending March 2023 (April 1, 2022 - March 31, 2023)

(Percentage figures represent year-on-year change)

	Net sales		Operating profit		Ordinary profit		Profit attributable		Net income per
				to owners of parent		share
	Million yen	%	Million yen	%		Million yen	%		Million yen	%		Yen
Full year	31,581	11.6	294	(20.8)		413	(24.7)		265	(12.1)		93.07

*Notice:

(1) Changes in main subsidiaries (Changes in specific subsidiaries accompanied by changes in the scope of consolidation): No

New consolidations: −

Exclusions: −

1. Changes in accounting policies, accounting estimates, and restatements
2. 1. Changes in accounting policies due to revision of accounting standards: Yes
   2. Changes in accounting policies other than those in (a): None
   3. Changes in accounting estimates: None
   4. Restatements: None
3. Number of shares outstanding (ordinary)
4. 1. Shares outstanding (including treasury shares)

	Year ended March 2022	2,880,000 shares	Year ended March 2021	2,880,000 shares
(b) Treasury shares
	Year ended March 2022	32,810 shares	Year ended March 2021	40,124 shares
(c) Average number of shares during the term
	Year ended March 2022	2,844,376 shares	Year ended March 2021	2,836,385 shares

(Reference) Non-consolidated Financial Results

1. Non-consolidated financial results for the current fiscal year (April 1, 2021 - March 31, 2022)

(1) Operating results (non-consolidated)					(Percentage figures represent year-on-year change)
	Net sales		Operating profit	Ordinary profit		Profit
	Million yen		%	Million yen		%	Million yen		%	Million yen		%
Year ended March 2022	27,931		−	441		(2.7)	732		28.7	507		37.9
Year ended March 2021	31,323		(11.9)	453		(14.5)	569		(6.2)	367		(12.3)
	Net income per share	Net income per share
	fully diluted
			Yen			Yen
Year ended March 2022			178.36			−
Year ended March 2021			129.73			−

The Group began applying the Accounting Standard for Revenue Recognition (ASBJ Statement No. 29, revised March 31, 2020) and related guidance from the beginning of fiscal year ended March 31, 2022. Results for fiscal year ended March 31, 2022 show the figures after application of this accounting standard and the percent year on year change in net sales is not provided.

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(2) Financial position (non-consolidated)

	Total assets		Net assets	Capital adequacy ratio	Net assets per share
	Million yen		Million yen	%	Yen
Year ended March 2022	22,483		7,937	35.3	2,787.67
Year ended March 2021	22,079		7,601	34.4	2,676.66
(Note) Shareholders' equity	Year ended March 2022	7,937 million yen
	Year ended March 2021	7,601 million yen

*Financial results summaries are not subject to audit.

*Cautionary statement regarding business results forecasts and special notes

(Cautionary statement regarding forward-looking statements)

The financial forecasts and other forward-looking statements in this release are based on currently available information and assumptions considered by the Company to be reasonable and do not represent a commitment from the Company that they will be achieved. Actual results may differ substantially due to various factors. Refer to "(4) Future Outlook" under "1. Analysis of Operating Performance and Financial Position" on page 6 of the supplementary material for the assumptions underlying the forecasts and precautions for using the forecasts.

(Method of obtaining supplementary information to financial results and details of the presentation of financial results) The Company intends to hold a presentation of its financial results on Monday, May 30, 2022.

The Company intends to upload the meeting (stream video) together with the financial results presentation materials to its website immediately after the meeting concludes.

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• Contents of Accompanying Materials

1. Analysis of Operating Performance and Financial Position.....................................................................................	5
(1)	Overview of Operating Results ......................................................................................................................	5
(2)	Overview of Financial Position ......................................................................................................................	6
(3)	Overview of Cash Flows ................................................................................................................................	6
(4)	Future Outlook ...............................................................................................................................................	7
2. Basic Thinking on Selection of Accounting Standards ............................................................................................	7
3. Consolidated Financial Statements and Main Notes ................................................................................................	8
(1)	Consolidated Balance Sheet ...........................................................................................................................	8
(2)	Consolidated Statement of Income and Consolidated Statement of Comprehensive Income .......................	10
(3)	Consolidated Statement of Changes in Equity..............................................................................................	12
(4)	Consolidated Statement of Cash Flows ........................................................................................................	13
(5)	Notes to the Consolidated Financial Statements ...........................................................................................	14
	(Notes Related to Going Concern Assumptions) ..........................................................................................	14
	(Changes in Accounting Policies).................................................................................................................	14
	(Additional Information) ..............................................................................................................................	14
	(Segment Information) .................................................................................................................................	15
	(Per Share Information) ................................................................................................................................	16
	(Significant Subsequent Events)...................................................................................................................	17

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1. Analysis of Operating Performance and Financial Position

1. Overview of Operating Results
   During the fiscal year under review, the Japanese economy showed signs of a rebound in the movement of people and consumption as the number of vaccinated people increased and restrictions on movement and other restrictions were eased, despite the lingering impacts of COVID-19. However, the future of the economy remains uncertain, due in part to new COVID- 19 variants and the trend in increasing prices of raw materials and other goods.
   In terms of the environment surrounding the Group, railway companies, the Group's main customers, are still facing tough conditions because railway passenger traffic is still in the process of rebounding, despite year on year growth in revenues and profit.
   Amid this backdrop, the Group formulated a medium-term business plan beginning in fiscal year ended March 31, 2022. The basic goals set in this plan are to 1) put the Group back on the path to stable growth for the post-COVID-19 environment, 2) focus on changes in the business environment and generate new corporate value and existing value and 3) achieve an ROE of 5% in fiscal year ending March 31, 2024.
   The curtailment of capital expenditure and maintenance plans by railways companies contributed to slow orders, resulting in the following consolidated operating results for fiscal year ended March 31, 2022. Net sales came to ¥28,293.890 million (－% year on year), operating profit came to ¥372 million (down 29.3% year on year), ordinary profit came to ¥549.184 million (down 15.9% year on year), and profit attributable to owners of parent came to ¥301.429 million (up 7.9% year on year).
   The Group also began applying the Accounting Standard for Revenue Recognition (ASBJ Statement No. 29, revised March 31, 2020; hereafter "Revenue Recognition Accounting Standard") and related guidance from the beginning of consolidated fiscal year ended March 31, 2022. Net sales for fiscal year ended March 31, 2022 are therefore the net sales after application of this accounting standard and we have therefore not provided the year on year change in net sales.
   Net sales in fiscal year ended March 31, 2022 decreased by ¥2,445.585 million and cost of sales decreased by ¥2,431.102 million.
   See "(5) Notes to the Consolidated Financial Statements, (Changes in Accounting Policies)" for more information. Business results by segment are presented below:

(Railway Business)

The segment's main products include electrical components for railway cars and body equipment, which the Company sells to railway operators and railway car manufacturers. Net sales in this segment declined due to slower than anticipated orders and to the application of the Revenue Recognition Accounting Standard. Orders from railway companies, the Group's main customers, were lower than anticipated because railway passenger traffic is still in the process of rebounding and railway companies curtailed and postponed capital expenditure and maintenance plans despite growth in revenues and profit. An increase in selling, general and administrative expenses also contributed to the decline in profit.

As a result, net sales came to ¥25,323.126 million (－% year on year), and operating profit came to ¥493.763 million (down 33.6% year on year).

(General Business)

This segment includes all of the Group's non-railway businesses. For that reason, transactions span a wide range of industries, and customers include industrial equipment manufacturers, power equipment manufacturers, and automotive manufacturers, among others. The segment's main products are connectors and electronic components. Some target industries that saw a rebound in production and performance and this contributed to firm sales. Selling, general and administrative expenses declined as the Group worked to reduce business expenses.

As a result, net sales came in at ¥2,970.764 million (－% year on year), and an operating loss of ¥121.762 million (compared to an operating loss of ¥217.666 million in the previous year) was recorded.

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