Aichi : Consolidated Financial Results for the Nine Months Ended December 31, 2020

Note:This document is a translation of a part of the original Japanese version and provided for reference purposes only. In the event of any discrepancy between the Japanese original and this English translation, the Japanese original shall prevail.

Consolidated Financial Results

for the Nine Months Ended December 31, 2020

[Japanese GAAP]

									January 28, 2021
Company name: AICHI CORPORATION
Stock exchange listing: Tokyo, Nagoya
Code number: 6345
URL: https://www.aichi-corp.co.jp
Representative: Toshiya Yamagishi, President and Representative Director
Contact: Tadashi Okumura,	Accounting General Manager
Phone: [phone]
Scheduled date of filing quarterly securities report: February 08, 2021
Scheduled date of commencing dividend payments: -
Availability of supplementary briefing material on quarterly financial results: No
Schedule of quarterly financial results briefing session: No
					(Amounts of less than one million yen are rounded down.)
1. Consolidated Financial Results for the Nine Months Ended December 31, 2020 (April 01, 2020 to December 31, 2020)
(1) Consolidated Operating Results			(% indicates changes from the previous corresponding period.)
	Net sales		Operating profit		Ordinary profit	Profit attributable to
			owners of parent
Nine months ended	Million yen		%	Million yen	%		Million yen	%	Million yen		%
December 31, 2020	40,566		0.0	4,254	23.1		4,740	23.5	3,825		19.6
December 31, 2019	40,550		(4.3)	3,454	(19.9)		3,839	(17.0)	3,197		(2.9)

(Note) Comprehensive income:	Nine months ended December 31, 2020:
	Nine months ended December 31, 2019:

¥	5,345 million	[	51.9%]
¥	3,519 million	[	8.5%]

	Basic earnings	Diluted earnings per
	per share		share
Nine months ended	Yen			Yen
December 31, 2020	49.67			-
December 31, 2019	41.20			-
(2) Consolidated Financial Position
	Total assets		Net assets	Capital adequacy ratio
As of	Million yen			Million yen	%
December 31, 2020	85,154			70,206	82.4
March 31, 2020	82,763			67,944	82.1
(Reference) Equity: As of	December 31, 2020:	¥	70,206 million
As of	March 31, 2020:	¥	67,944 million

2. Dividends

Annual dividends

1st

2nd

3rd

Year-end

Total

quarter-end

quarter-end

quarter-end

Yen

Yen

Yen

Yen

Yen

Fiscal year ended March 31, 2020

-

11.00

-

13.00

24.00

Fiscal year ending March 31, 2021

-

14.00

-

Fiscal year ending March 31, 2021

15.00

29.00

(Forecast)

(Note) Revision to the forecast for dividends announced most recently:

No

3. Consolidated Financial Results Forecast for the Fiscal Year Ending March 31, 2021(April 01, 2020 to March 31, 2021)

(% indicates changes from the previous corresponding period.)

Net sales

Operating profit

Ordinary profit

Profit attributable to

Basic earnings

owners of parent

per share

Million yen

%

Million yen

%

Million yen

%

Million yen

%

Yen

Full year

58,500

0.3

6,200

5.9

6,600

6.1

5,100

3.6

66.21

(Note) Revision to the financial results forecast announced most recently:

No

• Notes:

1. Changes in significant subsidiaries during the nine months ended December 31, 2020

(changes in specified subsidiaries resulting in changes in scope of consolidation):	No
(2) Accounting policies adopted specially for the preparation of quarterly consolidated financial statements:	No

1. Changes in accounting policies, changes in accounting estimates and retrospective restatement
2. 1. Changes in accounting policies due to the revision of accounting standards: No
   2. Changes in accounting policies other than 1) above: No
   3. Changes in accounting estimates: No
   4. Retrospective restatement: No
3. Total number of issued shares (common shares)
4. 1. Total number of issued shares at the end of the period (including treasury shares):

December 31, 2020:	79,453,250	shares
March 31, 2020:	79,453,250	shares
2) Total number of treasury shares at the end of the period:
December 31, 2020:	3,057,122	shares
March 31, 2020:	1,828,669	shares

3) Average number of shares during the period:
Nine months ended December 31, 2020:	77,019,978	shares
Nine months ended December 31, 2019:	77,624,869	shares

• This quarterly financial results are not subject to quarterly review procedure by certified public accountants or auditing firms.
• Explanation regarding the proper use of performance forecasts and other special items.

・All projections are based on the information available to management at the time of making this report and are not guarantees of future performance. Uncertainties could cause the actual results of AICHI CORPORATION to differ materially from any projections discussed in this report.

・Please see page 3 on attached documents for details on performance forecasts in "Explanation for Forecast for FY2021".

Attached documents－Contents
1. Qualitative Information on Quarterly Results ..................................................................................	2
(1)	Explanation of Business Results .................................................................................................	2
(2)	Explanation of Financial Position ...............................................................................................	3
(3)	Explanation of Consolidated Financial Results Forecasts and
	Other Forward-looking Statements ............................................................................................	3
2. Quarterly Consolidated Financial Statements ..................................................................................	4
(1)	Quarterly Consolidated Balance Sheets ......................................................................................	4
(2)	Quarterly Consolidated Statements of Income and Comprehensive Income .............................	6
(Additional Information) ..................................................................................................................	8

1

1. Qualitative Information on Quarterly Results

1. Explanation of Business Results

During the nine month ended December 31, 2020, the COVID-19 pandemic has continuously and negatively affected every aspect of the Japanese economy.

Although the GDP growth rate, which recorded in April to June the worst negative growth since the end of World War II, is gradually upward, it remains below pre-COVID-19 levels. Consumer spending increased as a result of government policies and an improvement in consumer sentiment on top of the resumption of economic activities in response to the lifting of the state of emergency declaration. However as people still tend to stay at home and refrain from outings, economic outlook remains uncertain.

As Japan experiences its third wave of COVID-19 infections, it remains difficult to predict when the pandemic will be contained. Moreover, the infections are still rising in Europe, North America and other countries, and the prospects for the economy are highly uncertain. With the ongoing global economic uncertainty, the negative effects on corporate performance are expected to persist.

The Group has been operating its businesses while staying vigilant about preventing infections among customers, suppliers, employees and other related parties, while focusing on cost reduction and operational efficiency.

Sales of specialized vehicles under such challenging conditions, to the electric power industry and the telecommunications industry were robust in comparison with the same period of the last fiscal year during the nine months ended December 31, 2020, although the rental industry took a wait and see approach to capital expenditures.

Consolidated net sales for the nine months ended December 31, 2020 were ¥40,566 million, an increase of ¥16 million compared to the same period last fiscal year. By segment, net sales of specialized vehicle declined by 292 million, or 1% to ¥31,936 million while net sales of parts and repairs rose by ¥328 million, or 4% to ¥8,137 million. Consolidated operating profit was up by 799 million, or 23% over the same period last fiscal year, to ¥4,254 million. Consolidated ordinary profit increased by ¥901 million, or 24% to ¥4,740 million compared to the same period last fiscal year. Profit attributable to owners of parent rose by ¥627 million, or 20% year on year to ¥3,825 million.

2

1. Explanation of Financial Position

1. Assets

Current assets increased by ¥1,371 million from the end of fiscal 2020 to ¥55,848 million. The increase in current assets was due mainly to higher deposits paid of ¥3,902 million and work in process of ¥402 million, offset in part by a decrease in notes and accounts receivable - trade of ¥2,804 million.

Non-current assets increased by ¥1,019 million from the end of fiscal 2020 to ¥29,306 million. The increase in non-current assets was primarily attributable to an increase in investment securities of ¥1,933 million, offset in part by decreases in buildings and structures of ¥381 million and net and deferred tax assets of ¥372 million.

The total assets increased ¥2,390 million to ¥85,154 million compared to the end of fiscal 2020.

2) Liabilities

Current liabilities decreased by ¥226 million from the end of fiscal 2020 to ¥12,288 million while non-current liabilities increased by ¥356 million to ¥2,659 million for the same period.

The decrease in current liabilities was largely due to lower other accrued expenses under current liabilities of ¥415 million, offset in part by an increase in provision for product warranties of ¥176 million.

The total liabilities increased ¥129 million to ¥14,948 million compared to the end of fiscal 2020.

3) Net assets

Total net assets increased by ¥2,261 million from the end of fiscal 2020 to ¥70,206 million. The increase in total net assets was primarily due to higher retained earnings of ¥1,741 million, valuation difference on available-for-sale securities of ¥1,346 million and foreign currency translation adjustment of ¥161 million, offset in part by purchase of treasury shares of ¥1,000 million.

(3) Explanation of Consolidated Financial Results Forecasts and Other Forward-looking Statements

The financial forecast for the fiscal year ended March 31, 2021 has not been updated since the last report on October 28, 2020.

3