Aichi : Consolidated Financial Results for the Year Ended March 31, 2021 (Summary version)

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 Year Ended March 31, 2021

[Japanese GAAP]

									April 26, 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 Annual General Meeting of Shareholders: June 18, 2021
Scheduled date of commencing dividend payments: June 21, 2021
Scheduled date of filing annual securities report: June 21, 2021
Availability of supplementary briefing material on annual financial results: Yes
Schedule of annual financial results briefing session: Yes
						(Amounts of less than one million yen are rounded down.)
1. Consolidated Financial Results for the Fiscal Year Ended March 31, 2021 (April 01, 2020 to March 31, 2021)
(1) Consolidated Operating Results			(% indicates changes from the previous corresponding period.)
	Net sales			Operating profit	Ordinary profit	Profit attributable to
			owners of parent
Fiscal year ended	Million yen		%		Million yen	%	Million yen	%	Million yen	%
March 31, 2021	59,330		1.7		7,051	20.4	7,708	23.9	5,906	20.0
March 31, 2020	58,336		(5.7)		5,857	(16.3)	6,219	(15.9)	4,923	(10.9)

(Note) Comprehensive income:	Fiscal year ended March 31, 2021:
	Fiscal year ended March 31, 2020:

¥	8,461 million	[	92.4%]
¥	4,398 million	[	(26.9) %]

	Basic earnings per	Diluted earnings per	Rate of return on	Ordinary profit to	Operating profit to
	share	share	equity	total assets ratio	net sales ratio
Fiscal year ended	Yen	Yen	%	%	%
March 31, 2021	76.84	-	8.4	8.9	11.9
March 31, 2020	63.42	-	7.4	7.4	10.0

(Reference) Equity in earnings (losses) of affiliated companies: Fiscal year ended March 31, 2021: Fiscal year ended March 31, 2020:

• 424 million
• 187 million

(2) Consolidated Financial Position

	Total assets	Net assets	Capital adequacy ratio	Net assets per share
As of	Million yen		Million yen	%	Yen
March 31, 2021	90,869		73,321	80.7	959.76
March 31, 2020	82,763		67,944	82.1	875.30
(Reference) Equity: As of	March 31, 2021:	¥	73,321 million
As of	March 31, 2020:	¥	67,944 million
(3) Consolidated Cash Flows
	Cash flows from	Cash flows from	Cash flows from	Cash and cash
	equivalents at the end
	operating activities	investing activities	financing activities
	of period
Fiscal year ended	Million yen		Million yen	Million yen	Million yen
March 31, 2021	10,873		(10,655)	(3,187)	4,820
March 31, 2020	7,589		(4,174)	(1,814)	7,718

2. Dividends

			Annual dividends				Payout	Dividends
					Total	to net
								ratio
	1st		2nd	3rd		Year-end	Total	dividends	assets
			(consolidated)
	quarter-end	quarter-end	quarter-end			(consolidated)
Fiscal year ended		Yen	Yen	Yen		Yen	Yen	Million yen	%	%
March 31, 2020		-	11.00	-		13.00	24.00	1,862	37.8	2.8
March 31, 2021		-	14.00	-		18.00	32.00	2,449	41.6	3.5
Fiscal year ending
March 31, 2022		-	14.00	-		18.00	32.00		48.9
(Forecast)

3. Consolidated Financial Results Forecast for the Fiscal Year Ending March 31, 2022 (April 01, 2021 to March 31, 2022)

(% indicates changes from the previous corresponding period.)

	Net sales		Operating profit	Ordinary profit	Profit attributable to	Basic earnings per
		owners of parent	share
	Million yen		%	Million yen	%	Million yen	%	Million yen	%	Yen
Full year	59,500		0.3	6,800	(3.6)	7,200	(6.6)	5,000	(15.4)	65.45

* Notes:

(1) Changes in significant subsidiaries during the period under review

(changes in specified subsidiaries resulting in changes in scope of consolidation): 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):

March 31, 2021:	78,225,350	shares
March 31, 2020:	79,453,250	shares
2) Total number of treasury shares at the end of the period:
March 31, 2021:	1,829,292	shares
March 31, 2020:	1,828,669	shares

3) Average number of shares during the period:
Fiscal Year ended March 31, 2021:	76,876,007	shares
Fiscal Year ended March 31, 2020:	77,624,803	shares

• Financial results reports are not subjected to reviews.
• Explanation for appropriate use of financial forecasts and other special notes

The forecasts given in this document are based on the current available information in the company and certain reasonable assumptions of the company. And we don't commit to achieve these forecasting numbers. Actual results may differ from these forecasts by a variety of reasons.

Attached documents－Contents
1. Overview of Business Results, etc. ..................................................................................................	2
(1)	Overview of Business Results for the Current Fiscal Year .........................................................	2
(2)	Overview of Financial Position for the Current Fiscal Year .......................................................	2
(3)	Overview of Cash Flows for the Current Fiscal Year .................................................................	3
(4) Future Outlook ............................................................................................................................	3
2. Consolidated Financial Statements ...................................................................................................	4
(1)Consolidated Balance Sheets ........................ ..............................................................................	4
(2)Consolidated Statements of Income and Comprehensive Income ...............................................	6
(3)Consolidated Statements of Changes in Net Assets .....................................................................	9
(4)Consolidated Statements of Cash Flows ......................................................................................	11
(Additional Information) ..................................................................................................................	12

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1. Overview of Business Results, etc.

1. Overview of Business Results for the Current Fiscal Year

In the fiscal year ended March 31, 2021, the Japanese economy suffered a devastating impact from the spread of the novel coronavirus disease (COVID-19), resulting in negative growth for the full year for the first time in 11 years.

In the market for specially equipped vehicles, which is our core business, the rental industry saw a significant decline due to a prudent attitude toward capital investment.

In this business climate, the Group has been staying vigilant about preventing infections among customers, related parties, and employees, while making companywide efforts to promote sales, cut costs and improve operational efficiency.

As a result, consolidated performance for the fiscal year ended March 31, 2021 was as follows. Net sales rose by ¥994 million (2%) year on year, to ¥59,330 million. By segment, net sales for specially equipped vehicles rose by ¥552 million (1%) year on year, to ¥47,011 million, while net sales from parts and repairs rose by ¥480 million (4%) year on year, to ¥11,608 million. In terms of profit, operating profit increased by ¥1,194 million (20%) year on year, to ¥7,051 million, and ordinary profit increased by ¥1,488 million (24%) year on year, to ¥7,708 million. Profit attributable to owners of parent rose by ¥983 million (20%) year on year, to ¥5,906 million.

1. Overview of Financial Position for the Current Fiscal Year

1. Assets

Current assets increased by ¥6,500 million from the end of the previous fiscal year to ¥60,977 million. This was mainly due to an increase in deposits paid of ¥7,242 million, despite a decrease in merchandise and finished goods of ¥732 million.

Non-current assets increased by ¥1,605 million from the end of the previous fiscal year, to ¥29,891 million. This was mainly due to an increase in investment securities of ¥2,313 million, despite decreases in buildings and structures, net, and machinery, equipment and vehicles, net of ¥420 million and ¥249 million, respectively.

As a result, total assets increased by ¥8,105 million from the end of the previous fiscal year, to ¥90,869 million.

2) Liabilities

Current liabilities increased by ¥2,972 million from the end of the previous fiscal year, to ¥15,487 million. This was mainly due to increases in notes and accounts payable - trade, income taxes payable, and accrued consumption taxes in other current liabilities of ¥1,541 million, ¥777 million, and ¥514 million, respectively.

Non-current liabilities declined by ¥243 million from the end of the previous fiscal year, to ¥2,059 million. This was mainly due to decreases in retirement benefit liability and lease obligations of ¥770 million and ¥44 million, respectively, despite an increase in deferred tax liabilities of ¥578 million.

As a result, total liabilities increased by ¥2,729 million from the end of the previous fiscal year, to ¥17,547 million.

3) Net assets

Total net assets increased by ¥5,376 million from the end of the previous fiscal year to ¥73,321 million. This was mainly due to increases in retained earnings, valuation difference on available-for-sale securities and remeasurements of defined benefit plans of ¥3,052 million, ¥1,611 million and ¥545 million, respectively.

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(3) Overview of Cash Flows for the Current Fiscal Year

As of March 31, 2021, cash and cash equivalents ("cash") amounted to ¥4,820 million, a decrease of ¥2,897 million (38%) from the end of the previous fiscal year. The status of cash flows and their contributing factors are as follows.

1) Cash flows from operating activities

Cash provided by operating activities increased by ¥3,284 million year on year, to ¥10,873 million. The increase in cash was mainly due to an increase in trade payables of ¥3,240 million.

2) Cash flows from investing activities

Cash used in investing activities increased by ¥6,480 million year on year, to ¥10,655 million.

The increase in cash was mainly due to a decrease in purchase of property, plant and equipment and intangible assets of ¥448 million. In addition, a major cause for the decrease in cash was an increase in deposits paid of ¥6,640 million.

3) Cash flows from financing activities

Cash used in financing activities increased by ¥1,372 million year on year, to ¥3,187 million.

The decrease in cash was mainly due to an increase in purchase of treasury shares of ¥1,000 million.

(4) Future Outlook

The economic outlook for the fiscal year ending March 31, 2022 is expected to remain uncertain, as there are many concerns, such as the resurgence of COVID-19 and the side effects of fiscal and monetary policies. Under these circumstances, we forecast consolidated net sales of ¥59,500 million, operating profit of ¥6,800 million, ordinary profit of ¥7,200 million, and profit attributable to owners of parent of ¥5,000 million for the next fiscal year.

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