Aichi : Consolidated Financial Results for the Year Ended March 31, 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 Year Ended March 31, 2022

[Japanese GAAP]

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 17, 2022 Scheduled date of commencing dividend payments: June 01, 2022 Scheduled date of filing annual securities report: June 20, 2022

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, 2022 (April 01, 2021 to March 31, 2022)

(1) Consolidated Operating Results

April 26, 2022

(% indicates changes from the previous corresponding period.)

Net sales	Operating profit	Ordinary profit	Profit attributable to owners of parent
Fiscal year ended March 31, 2022 March 31, 2021	Million yen 56,591 59,330	% (4.6) 1.7	Million yen 6,861 7,051	% (2.7) 20.4	Million yen 7,736 7,708	% 0.4 23.9	Million yen 5,644 5,906	% (4.4) 20.0

(Note) Comprehensive income:

Fiscal year ended March 31, 2022:

Fiscal year ended March 31, 2021:

¥ ¥

5,835 million 8,461 million

• [ (31.0) %]

• [ 92.4%]

Basic earnings per share	Diluted earnings per share	Rate of return on equity	Ordinary profit to total assets ratio	Operating profit to net sales ratio
Fiscal year ended March 31, 2022 March 31, 2021	Yen 74.09 76.84	Yen - -	% 7.6 8.4	% 8.5 8.9	% 12.1 11.9

(Reference) Equity in earnings (losses) of affiliated companies:

(2) Consolidated Financial PositionFiscal year ended March 31, 2022:

Fiscal year ended March 31, 2021:

¥ ¥

639 million 424 million

Total assets	Net assets	Capital adequacy ratio	Net assets per share
As of March 31, 2022 March 31, 2021	Million yen 90,559 90,869	Million yen 76,043 73,321	% 84.0 80.7	Yen 1,006.05 959.76

(Reference) Equity:	As of	March 31, 2022:	¥	76,043 million
As of	March 31, 2021:	¥	73,321 million

(3) Consolidated Cash Flows

Cash flows from operating activities	Cash flows from investing activities	Cash flows from financing activities	Cash and cash equivalents at the end of period
Fiscal year ended March 31, 2022 March 31, 2021	Million yen 3,989 10,873	Million yen 997 (10,655)	Million yen (3,216) (3,187)	Million yen 6,676 4,820

2. Dividends

Annual dividends	Total dividends	Payout ratio (consolidated)	Dividends to net assets (consolidated)
1st quarter-end	2nd quarter-end	3rd quarter-end	Year-end	Total
Fiscal year ended March 31, 2021 March 31, 2022	Yen - -	Yen 14.00 14.00	Yen - -	Yen 18.00 20.00	Yen 32.00 34.00	Million yen 2,449 2,581	% 41.6 45.9	% 3.5 3.5
Fiscal year ending March 31, 2023 (Forecast)	-	17.00	-	17.00	34.00	45.1

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 owners of parent	Basic earnings per share
Full year	Million yen 61,500	% 8.7	Million yen 7,600	% 10.8	Million yen 8,100	% 4.7	Million yen 5,700	% 1.0	Yen 75.41

* Notes:

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

(changes in specified subsidiaries resulting in changes in scope of consolidation):No

(2) Changes in accounting policies, changes in accounting estimates and retrospective restatement

• 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)

1) Total number of issued shares at the end of the period (including treasury shares):March 31, 2022:

March 31, 2021:

76,395,901 shares 78,225,350 shares

2) Total number of treasury shares at the end of the period:March 31, 2022:

March 31, 2021:

809,314 shares 1,829,292 shares

3) Average number of shares during the period:

Fiscal Year ended March 31, 2022:

Fiscal Year ended March 31, 2021:

76,195,626 shares 76,876,007 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.

Consolidated Financial Statements

Consolidated Balance Sheets

(Thousand yen)As of March 31,2021

As of March 31,2022

Assets
Current assets
Cash and deposits	1,224,322	1,179,626
Deposits paid	36,536,175	36,897,023
Notes and accounts receivable - trade	19,464,344	-
Notes receivable - trade	-	2,856,931
Accounts receivable - trade	-	15,751,309
Merchandise and finished goods	808,516	896,832
Work in process	1,287,837	1,459,508
Raw materials and supplies	1,191,555	1,345,329
Other	465,096	758,981
Allowance for doubtful accounts	(225)	-
Total current assets	60,977,622	61,145,543
Non-current assets
Property, plant and equipment
Buildings and structures	19,214,706	19,417,152
Accumulated depreciation	(11,792,858)	(12,365,792)
Buildings and structures, net	7,421,847	7,051,360
Machinery, equipment and vehicles	9,463,604	9,768,965
Accumulated depreciation	(7,056,109)	(7,688,877)
Machinery, equipment and vehicles, net	2,407,495	2,080,087
Tools, furniture and fixtures	2,848,241	2,920,594
Accumulated depreciation	(2,621,830)	(2,728,102)
Tools, furniture and fixtures, net	226,410	192,491
Land	8,524,457	8,524,007
Leased assets	793,776	765,585
Accumulated depreciation	(394,666)	(433,678)
Leased assets, net	399,109	331,906
Construction in progress	32,714	1,369
Total property, plant and equipment	19,012,035	18,181,222
Intangible assets	692,607	665,998
Investments and other assets
Investment securities	7,954,715	7,311,005
Other	2,239,294	3,262,562
Allowance for doubtful accounts	(6,713)	(6,758)
Total investments and other assets	10,187,296	10,566,810
Total non-current assets	29,891,939	29,414,030
Total assets	90,869,562	90,559,574

(Thousand yen)As of March 31,2021

As of March 31,2022

Liabilities
Current liabilities
Notes and accounts payable - trade	10,089,276	8,633,664
Lease liabilities	99,476	102,516
Income taxes payable	1,727,200	717,737
Provision for bonuses for directors (and other officers)	38,000	38,000
Provision for product warranties	294,302	228,271
Other	3,239,715	2,647,420
Total current liabilities	15,487,971	12,367,609
Non-current liabilities
Lease liabilities	343,845	295,055
Deferred tax liabilities	578,155	704,782
Deferred tax liabilities for land revaluation	616,302	616,302
Retirement benefit liability	450,694	489,292
Other	70,924	42,780
Total non-current liabilities	2,059,922	2,148,213
Total liabilities	17,547,893	14,515,822
Net assets
Shareholders' equity
Share capital	10,425,325	10,425,325
Capital surplus	9,923,342	9,923,342
Retained earnings	50,386,498	52,416,619
Treasury shares	(1,147,983)	(646,937)
Total shareholders' equity	69,587,182	72,118,350
Accumulated other comprehensive income
Valuation difference on available-for-sale securities	4,498,080	4,085,430
Revaluation reserve for land	(1,624,044)	(1,624,044)
Foreign currency translation adjustment	86,580	758,735
Remeasurements of defined benefit plans	773,869	705,280
Total accumulated other comprehensive income	3,734,486	3,925,401
Total net assets	73,321,669	76,043,752
Total liabilities and net assets	90,869,562	90,559,574

Consolidated Statements of Income and Comprehensive Income

Consolidated Statements of Income

(Thousand yen)For the fiscal year ended March 31,2021

For the fiscal year ended March 31,2022

Net sales	59,330,782	56,591,208
Cost of sales	46,584,582	43,980,901
Gross profit	12,746,199	12,610,306
Selling, general and administrative expenses
Packing and delivery expenses	450,112	747,374
Advertising expenses	51,174	50,689
Sales commission	20,022	37,782
Remuneration for directors (and other officers)	72,367	70,553
Salaries, allowances and bonuses	2,268,335	2,233,670
Provision for bonuses for directors (and other officers)	35,800	29,007
Provision for retirement benefits for directors (and other officers)	1,200	-
Retirement benefit expenses	197,974	142,342
Welfare expenses	480,856	481,180
Communication and transportation expenses	186,615	214,308
Depreciation	429,509	357,127
Repair expenses	80,736	90,199
Rent expenses	163,060	156,082
Research and development expenses	411,367	419,112
Other	845,811	719,316
Total selling, general and administrative expenses	5,694,944	5,748,748
Operating profit	7,051,255	6,861,558
Non-operating income
Interest income	15,602	14,525
Dividend income	139,849	154,803
Foreign exchange gains	23,564	18,752
Share of profit of entities accounted for using equity method	424,624	639,551
Miscellaneous income	61,169	49,171
Total non-operating income	664,811	876,802
Non-operating expenses
Miscellaneous losses	7,436	2,224
Total non-operating expenses	7,436	2,224
Ordinary profit	7,708,630	7,736,136