Aichi : Consolidated Financial Results for the Six Months Ended September 30, 2022

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 Six Months Ended September 30, 2022

[Japanese GAAP]

October 26, 2022

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: November 08, 2022

Scheduled date of commencing dividend payments: November 28, 2022

Availability of supplementary briefing material on quarterly financial results: Yes

Schedule of quarterly financial results briefing session: Yes

					(Amounts of less than one million yen are rounded down)
1. Consolidated Financial Results for the Six Months Ended September 30, 2022 (April 01, 2022 to September 30, 2022)
(1) Consolidated Operating Results			(% indicates changes from the previous corresponding period.)
	Net sales		Operating profit	Ordinary profit	Profit attributable to
		owners of parent
Six months ended	Million yen		%	Million yen	%	Million yen	%	Million yen		%
September 30, 2022	27,092		6.8	2,453	(5.7)	2,911	(4.9)	2,078		(5.4)
September 30, 2021	25,360		(6.5)	2,602	(15.1)	3,060	(8.3)	2,197		(22.5)

(Note) Comprehensive income:	Six months ended September 30, 2022:
	Six months ended September 30, 2021:

¥	2,167 million	[	(10.9) %]
¥	2,431 million	[	(34.8) %]

	Basic earnings	Diluted earnings per
	per share		share
Six months ended	Yen			Yen
September 30, 2022	27.60			-
September 30, 2021	28.76			-
(2) Consolidated Financial Position
	Total assets		Net assets	Capital adequacy ratio
As of	Million yen			Million yen	%
September 30, 2022	91,172			76,367	83.8
March 31, 2022	90,559			76,043	84.0
(Reference) Equity: As of	September 30, 2022:	¥	76,367 million
As of	March 31, 2022:	¥	76,043 million

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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, 2022	-		14.00	-		20.00	34.00
Fiscal year ending March 31, 2023	-		17.00
Fiscal year ending March 31, 2023				-		17.00	34.00
(Forecast)
(Note) Revision to the forecast for dividends announced most recently:	No

3. Consolidated Financial Results Forecast for the Fiscal Year Ending March 31, 2023(April 01, 2022 to March 31, 2023)

(% 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	61,500		8.7	7,600	10.8	8,100		4.7	5,700	1.0	75.73
(Note) Revision to the financial results forecast announced most recently:	No
* Notes:
(1) Changes in significant subsidiaries during the six months ended September 30, 2022
(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: Yes
   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):

September 30, 2022:	76,395,901	shares
March 31, 2022:	76,395,901	shares
2) Total number of treasury shares at the end of the period:
September 30, 2022:	1,184,638	shares
March 31, 2022:	809,314	shares

3) Average number of shares during the period:
Six months ended September 30, 2022:	75,317,215	shares
Six months ended September 30, 2021:	76,395,979	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.

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Quarterly Consolidated Financial Statements

Quarterly Consolidated Balance Sheets

			(Thousand yen)
		As of March 31,2022	As of September 30,2022
Assets
	Current assets
	Cash and deposits	1,179,626	1,215,997
	Deposits paid	36,897,023	37,887,109
	Notes and accounts receivable - trade	18,608,241	17,892,182
	Merchandise and finished goods	896,832	1,323,094
	Work in process	1,459,508	1,600,339
	Raw materials and supplies	1,345,329	1,478,715
	Other	758,981	548,880
	Total current assets	61,145,543	61,946,318
	Non-current assets
	Property, plant and equipment
	Buildings and structures, net	7,051,360	6,830,750
	Machinery, equipment and vehicles, net	2,080,087	1,918,495
	Land	8,524,007	8,524,007
	Other, net	525,767	519,705
	Total property, plant and equipment	18,181,222	17,792,959
	Intangible assets	665,998	659,890
	Investments and other assets
	Investment securities	7,311,005	7,020,813
	Other	3,262,562	3,759,674
	Allowance for doubtful accounts	(6,758)	(6,689)
	Total investments and other assets	10,566,810	10,773,797
	Total non-current assets	29,414,030	29,226,647
	Total assets	90,559,574	91,172,966

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					(Thousand yen)
				As of March 31,2022	As of September 30,2022
Liabilities
	Current liabilities
		Notes and accounts payable - trade		8,633,664	9,059,324
		Income taxes payable	717,737	712,739
		Provision for bonuses for directors (and other		38,000	19,000
		officers)
		Provision for product warranties	228,271	183,339
		Other		2,749,936	2,612,179
		Total current liabilities	12,367,609	12,586,583
	Non-current liabilities
		Deferred tax liabilities for land revaluation	616,302	616,302
		Retirement benefit liability		489,292	485,347
		Deferred tax liabilities	704,782	822,782
		Other		337,835	294,021
		Total non-current liabilities	2,148,213	2,218,454
	Total liabilities		14,515,822	14,805,038
Net assets
	Shareholders' equity
		Share capital	10,425,325	10,425,325
		Capital surplus		9,923,342	9,923,342
		Retained earnings	52,416,619	52,983,781
		Treasury shares		(646,937)	(978,243)
		Total shareholders' equity		72,118,350	72,354,205
	Accumulated other comprehensive income
		Valuation difference on available-for-sale		4,085,430	3,889,796
		securities
		Revaluation reserve for land		(1,624,044)	(1,624,044)
		Foreign currency translation adjustment	758,735	1,062,446
		Remeasurements of defined benefit plans		705,280	685,524
		Total accumulated other comprehensive income	3,925,401	4,013,722
	Total net assets		76,043,752	76,367,928
Total liabilities and net assets	90,559,574	91,172,966

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Quarterly Consolidated Statements of Income and Comprehensive Income

Quarterly Consolidated Statements of Income (For the six months)

			(Thousand yen)
		For the six months	For the six months
		ended September 30,2021	ended September 30,2022
Net sales	25,360,469	27,092,282
Cost of sales	19,995,771	21,832,503
Gross profit	5,364,697	5,259,779
Selling, general and administrative expenses	2,762,640	2,806,186
Operating profit	2,602,057	2,453,593
Non-operating income
	Interest income	7,144	2,612
	Dividend income	68,392	78,569
	Share of profit of entities accounted for using equity	365,392	290,465
	method
	Foreign exchange gains	-	62,796
	Other	20,683	24,814
	Total non-operating income	461,612	459,259
Non-operating expenses
	Foreign exchange losses	2,742	-
	Other	917	1,590
	Total non-operating expenses	3,659	1,590
Ordinary profit	3,060,010	2,911,262
Extraordinary income
	Gain on sale of non-current assets	573	775
	Gain on sale of investment securities	6,030	3,810
	Insurance claim income	31,920	-
	Total extraordinary income	38,524	4,585
Extraordinary losses
	Loss on sale of non-current assets	38	-
	Loss on retirement of non-current assets	7,099	5,942
	Loss on valuation of investment securities	-	6,430
	Total extraordinary losses	7,138	12,373
Profit before income taxes	3,091,397	2,903,474
Income taxes - current	649,426	611,171
Income taxes - deferred	244,930	213,409
Total income taxes	894,356	824,581
Profit	2,197,040	2,078,893
Profit attributable to owners of parent	2,197,040	2,078,893

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