Yushin Precision Equipment : FY2023 3Q Financial Results

February 3, 2023

Consolidated Financial Results for the Nine Months

Ended December 31, 2022

Company Name: YUSHIN PRECISION EQUIPMENT CO., LTD.
Listing:	Prime Market of the Tokyo Stock Exchange
Securities code:	6482
URL:	https://www.ype.co.jp/en/
Representative:	Takayo Kotani, Representative Director and President
Inquiries:	Kota Oda, Director and Executive Vice President, General Manager of Admin. Div.
	Tel: [phone]

Scheduled date to submit quarterly report:	February 14, 2023
Scheduled date to commence dividend payments:	-
Preparation of supplementary materials on the quarterly financial results:	None
Holding of quarterly financial results briefing:	None

(Amounts less than one million yen are omitted, unless otherwise noted)

1. Consolidated Business Results for the Nine Months Ended December 31, 2022 (From April 1, 2022 to December 31, 2022)

1. Consolidated operating results (Cumulative)

(Percentages indicate year-on-year changes)

		Net sales	Operating profit	Ordinary profit	Profit attributable to
		owners of parent
	Nine months ended	Millions of yen	%	Millions of yen	%	Millions of yen	%	Millions of yen	%
	December 31, 2022	16,219	4.8	2,016	(4.6)	2,176	(2.8)	1,570	(3.7)
	December 31, 2021	15,472	21.7	2,113	39.5	2,238	42.8	1,630	44.5
Note: Comprehensive income Nine months ended December 31, 2022:	1,807 million yen [ 0.3%]
		Nine months ended December 31, 2021:	1,801 million yen [ 46.8%]
		Basic earnings	Diluted earnings
		per share	per share
	Nine months ended		Yen		Yen
	December 31, 2022		46.14		-
	December 31, 2021		47.90		-
	(2) Consolidated financial position
		Total assets	Net assets	Equity ratio
		Millions of yen	Millions of yen		%
	As of December 31, 2022		38,612		32,158		82.5
	As of March 31, 2022		36,892		31,047		83.5
Reference: Equity capital
As of December 31, 2022: 31,868 million yen	As of March 31, 2022: 30,794 million yen

YUSHIN PRECISION EQUIPMENT CO., LTD. (6482)

2. Cash Dividends

			Annual dividends per share
		1Q	2Q		3Q			4Q	Total
		Yen	Yen			Yen		Yen	Yen
FY2022		－	9.00				－		10.00	19.00
FY2023		－	10.00				－
FY2023 (Forecast)									20.00	30.00
Note 1: Revisions to projected dividends most recently announced: None
Note 2: Breakdown of dividends 4Q in FY2023 (forecast)
		Ordinary dividends: 10.00 yen
		Commemorative dividends: 10.00 yen	(the 50th anniversary of the establishment)

3. Consolidated Earnings Forecast for the FY2023 (From April 1, 2022 to March 31, 2023)

(Percentages indicate year-on-year changes)

								Profit attributable	Basic
	Net sales		Operating profit	Ordinary profit	earnings
		to owners of parent
								per share
	Millions of		%	Millions of	%	Millions of	%	Millions of	%	Yen
	yen		yen	yen	yen
FY2023	22,000		5.4	2,400	(17.0)	2,600	(15.7)	1,800	(14.8)	52.89

Note: Revisions to projected results most recently announced: None

• Notes
• 1. Changes in significant subsidiaries during the period (Changes in specified subsidiaries accompanying changes in scope of consolidation): None
  2. Adoption of the special accounting methods: Yes

Note: Please refer to "2. Quarterly Consolidated Financial Statements and Notes, (3) Notes related to quarterly consolidated financial statements < Adoption of special accounting methods for preparation of quarterly financial statements >" on page 7 of [Attached Material] for further information.

1. Changes in accounting policies, changes in accounting estimates, and restatement

1. Changes in accounting policies due to revisions to accounting standards and other regulations: None

2)	Changes in accounting policies due to other reasons:	None
3)	Changes in accounting estimates:	None
4)	Restatement:	None

1. Number of issued shares (Common stock)

1. Number of issued shares at the end of the period (including shares of treasury shares)
2. Number of shares of treasury shares at the end of the period
3. Average number of outstanding shares during the period

As of Dec. 31,	35,638,066	As of March 31,	35,638,066
2022	shares	2022	shares
As of Dec. 31,	1,603,076	As of March 31,	1,602,804
2022	shares	2022	shares
Nine months	34,035,154	Nine months	34,035,468
ended Dec. 31,	ended Dec. 31,
shares	shares
2022	2021

• This "Consolidated Financial Results for the Nine Months" report is not subject to quarterly review procedures by certified public accountant or by auditing firm.
• Cautionary statement with respect to forward-looking statements and other special remarks

The forecasts above are based on the information currently available. A number of factors could cause actual results to differ materially from expectations. For more information about these assumptions and notes regarding the use of earnings forecasts, please refer to "1. Qualitative Information on Quarterly Consolidated Financial Performance, (3) Explanation on the forecast information including consolidated earnings forecast and others" on page 2 of [Attached Material].

* Disclaimer:

This English version is not an official translation of the original Japanese document. In cases where any differences occur between the English version and the original Japanese version, the Japanese version shall prevail. YUSHIN PRECISION EQUIPMENT CO., LTD. shall accept no responsibility or liability for damages or loss caused by any error, inaccuracy, misunderstanding or misspelling with regard to this translation. This translation may be used only for reference purposes. YUSHIN PRECISION EQUIPMENT CO., LTD. maintains the right to claim compensation from violators for any damage or loss it may suffer from the violation of these conditions.

YUSHIN PRECISION EQUIPMENT CO., LTD. (6482)

[Attached Material]

INDEX

1. Qualitative Information on Quarterly Consolidated Financial Performance ··········································· 2

1. Explanation on the business results ······················································································ 2
2. Explanation on the financial condition··················································································· 2
3. Explanation on the forecast information including consolidated earnings forecast and others ··················· 2

1. Quarterly Consolidated Financial Statements and Notes ································································· 3

1. Quarterly consolidated balance sheets ··················································································· 3
2. Quarterly consolidated statements of income and consolidated statements of comprehensive income ········· 5 Quarterly consolidated statements of income ··········································································· 5 Quarterly consolidated statements of comprehensive income ························································ 6
3. Notes related to quarterly consolidated financial statements ·························································· 7

• Notes related to going concern assumption > ·········································································· 7
• Notes in the event of significant changes in shareholders' equity > ················································ 7
• Adoption of special accounting methods for preparation of quarterly financial statements > ··················· 7
• Segment information > ··································································································· 7

1. Supplemental Information ···································································································· 8

1. Orders, backlog and sales·································································································· 8
2. Overseas sales ··············································································································· 8

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YUSHIN PRECISION EQUIPMENT CO., LTD. (6482)

1. Qualitative Information on Quarterly Consolidated Financial Performance

(1) Explanation on the business results

During the nine months of the current fiscal year under review, the global economy showed a recovery trend toward positive growth as corporate and economic activities go hand in hand as the restriction on the corporate activities are being relaxed by the worldwide progress in vaccination against COVID-19. On the other hand, the outlook for the exchange rate is becoming increasingly uncertain, and there are concerns that the economic recovery will be delayed, due to soaring raw material and ocean transport cost caused by the geopolitical risks.

Under these circumstances, YUSHIN Group has continued to develop new customers on a global scale and expand business of custom-ordered equipment for medical field. As a result, orders received during the nine months of the current fiscal year increased significantly year on year due to the orders received for large scale custom-ordered equipment for medical field. As for the consolidated business results for the nine months of the current year, the sales in Japan and North America increased while the sales of take-out robot in China decreased due to the lockdown. As a result, consolidated Net sales increased by 4.8% year on year to 16,219 million yen. Operating profit decreased by 4.6% year on year to 2,016 million yen due to the rise of labor and ocean transport cost while the consolidated Net sales increased and gross profit margin improved. Although there was a foreign exchange gain, Ordinary profit decreased by 2.8% year on year to 2,176 million yen, and Net profit attributable to owners of parent decreased by 3.7% year on year to 1,570 million yen.

During the third quarter of the fiscal year under review, we have started selling CTM-V, a swing type take-out robot. In addition, YD series, which was launched in the previous fiscal year, won an encouraging prize in the Promotion of Machine Industry Awards. We believe that we have received high praise for our ongoing efforts to conserve energy. We will continue to work to develop environmentally friendly products.

1. Explanation on the financial condition
   
   Total assets increased by 1,719 million yen from the end of the previous fiscal year to 38,612 million yen. This was mainly due to increase of "Cash and deposits" by 1,521 million yen.
   
   Total liabilities increased by 608 million yen from the end of the previous fiscal year to 6,453 million yen. This was mainly due to increase of "Advances received" by 917 million yen.
   
   Net assets increased by 1,110 million yen from the end of the previous fiscal year to 32,158 million yen.
2. Explanation on the forecast information including consolidated earnings forecast and others

At this time, there are no changes to the full-year Consolidated Earnings Forecasts for the fiscal year ending March 31, 2023 that was announced in Consolidated Financial Results released on November 4, 2022.

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YUSHIN PRECISION EQUIPMENT CO., LTD. (6482)

2. Quarterly Consolidated Financial Statements and Notes

(1) Quarterly consolidated balance sheets

				(Thousands of yen)
			As of March 31, 2022	As of December 31, 2022
Current assets
	Cash and deposits		12,404,898	13,926,061
	Notes and accounts receivable - trade	5,905,288	5,406,040
	Merchandise and finished goods		1,074,756	1,304,810
	Work in process	1,203,508	1,489,928
	Raw materials and supplies		3,571,482	3,758,647
	Other	348,565	485,439
	Allowance for doubtful accounts		(7,869)	(6,497)
	Total current assets	24,500,630	26,364,428
	Non-current assets
	Property, plant and equipment
	Buildings and structures, net		3,849,455	3,617,691
	Land	6,812,488	6,827,057
	Other, net		264,093	378,561
	Total property, plant and equipment	10,926,037	10,823,310
	Intangible assets		186,751	153,339
	Investments and other assets
	Investment securities		263,848	301,141
	Retirement benefit asset	264,457	254,901
	Deferred tax assets		647,939	624,647
	Other	181,809	140,371
	Allowance for doubtful accounts		(78,488)	(49,812)
	Total investments and other assets	1,279,566	1,271,250
	Total non-current assets		12,392,355	12,247,900
Total assets	36,892,986	38,612,329

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