Consolidated Financial Summary Second Quarter of FY2013

Transcription

1 Consolidated Financial Summary Second Quarter of FY2013 (April 1, 2012 September 30, 2012) This document is an English translation of the Japanese language version of the consolidated financial summary that TS TECH Co., Ltd. has produced as reference purpose. In the event of any discrepancy between this translated document and the Japanese original, the original shall prevail.

2 Consolidated Financial Summary for the Second Quarter of FY2013 (based on Japanese accounting standards) October 30, 2012 Company name: TS TECH CO., LTD. Stock exchange listing: Tokyo Stock Exchange Stock code: 7313 URL: Representative: Toshio Komeji, President Contact: Mahoro Kurata, Manager, Public Relations Section, Corporate Social Responsibility Department Tel Scheduled date for filing of quarterly securities report: November 9, 2012 Scheduled date of commencement of dividend payment: November 3, 2012 Preparation of supplementary explanatory material: Yes Quarterly results briefing: Yes (for institutional investors and analysts) (Amounts of less than one million yen are rounded down to the nearest million yen) 1. Consolidated Financial Results for the Second Quarter of FY2013 (April 1, 2012 September 30, 2012) (1) Consolidated Financial Results (Accumulated Total) (% of change from the same period of previous year) Net sales Operating income Ordinary income Net income Million yen % Million yen % Million yen % Million yen % Second quarter of FY , ,995 11,605 7,019 Second quarter of FY , (Note) Comprehensive income Second quarter of FY2013 5,790 million yen ( %) Second quarter of FY2012-2,776 million yen ( %) Net income per share Diluted net income per share Second quarter of FY Second quarter of FY (2) Consolidated Financial Position Yen Yen Total assets Net assets Equity ratio Net assets per share Million yen Million yen % Yen Second quarter of FY , , , FY , , , (Reference) Shareholders equity: Second quarter of FY ,608 million yen FY ,946 million yen 2. Cash Dividends Annual cash dividends End of 1Q End of 2Q End of 3Q End of year Annual Yen Yen Yen Yen Yen FY FY FY2013 (forecast) (Notes) Revision from the most recent announcement of cash dividends forecasts :None 3. Consolidated Forecasts for FY2012 (April 1, March 31, 2013) (% of change from the same period of previous year) Net sales Operating income Ordinary income Net income Net income per share Million yen % Million yen % Million yen % Million yen % Yen FY , , , , (Note) Revision from the most recent announcement of consolidated financial forecasts :Yes

3 *. Notes (1) Changes in important subsidiaries during the quarter (Changes in significant subsidiaries affecting the scope : None of consolidation during this period) New subsidiaries companies ( ) Excluded subsidiaries companies ( ) (2) Application of special accounting treatment for quarterly consolidated financial statements : Yes (3) Changes in accounting policies and accounting estimates, or re-statement 1) Changes in accounting policies associated with the revision of accounting standards, etc. : None 2) Changes other than 1) : Yes 3) Changes in accounting estimates : Yes 4) Re-statement : None (4) Number of shares issued (common stock) 1) Number of shares issued at the end of the term including treasury stock 2) Number of treasury stock at the end of the term 3) Average number of shares during the term (cumulative) 2Q of FY ,000,000 shares FY ,000,000 shares 2Q of FY2013 1,645 shares FY2012 1,645 shares 2Q of FY ,998,355 shares 2Q of FY ,998,368 shares (*Presentation concerning the implementation status for quarterly review procedure) Quarterly reviews based on the Financial Instruments and Exchange Act are not undertaken for quarterly financial statements at the time this financial summary is disclosed. (*Explanation regarding the appropriate use of forecasts of financial results and other notes) - The consolidated forecasts presented above are projections made by managers of TS TECH Co., Ltd. (hereinafter the Company ) on the basis of information available at the time of preparation. For that reason, they involve risks and uncertainties. Accordingly, we request readers of this document to avoid making investment decisions based exclusively on these forecasts. Please bear in mind the possibility for actual results may differ materially from these forecasts, due to various important factors. Readers are asked to proceed to (3) Qualitative Information Concerning Consolidated Forecasts on page 4 for assumptions and other information that form the premise for the operating results forecast above. - For materials used for the results briefing to be held on October 30, 2012, refer to the following URL under our website ( (IR Library)

4 A Table of Contents 1. Qualitative Information Concerning Quarterly Results...2 (1) Qualitative Information Concerning Consolidated Financial Results...2 (2) Qualitative Information Concerning Consolidated Financial Position...4 (3) Qualitative Information Concerning Consolidated Forecasts Matters Concerning Summary (Notes) Information...5 (1) Changes in Important Subsidiaries during the Current Period...5 (2) Application of Special Accounting Treatment for Quarterly Consolidated Financial Statements...5 (3) Changes in Accounting Policies, Accounting Estimates, or Re-statement Quarterly Consolidated Financial Statements...6 (1) Quarterly Consolidated Balance Sheets...6 (2) Quarterly Consolidated Statements of Income and Comprehensive Income...8 (3) Quarterly Consolidated Statements of Cash Flows...10 (4) Notes Concerning Going Concern Assumption...11 (5) Segment Information...11 (6) Notes Concerning Significant Changes in the Amount of Shareholders Equity

5 1. Qualitative Information Concerning Quarterly Results (1) Qualitative Information Concerning Consolidated Financial Results During the first half of FY2013 (April 1, September 30, 2012), consolidated results were generally solid, buoyed by the recovery in automobile demand centered on North America. As a result, net sales for the first half of FY2013 reached 179,035 million yen on a consolidated basis, an increase of 54,976 million yen (44.3%) from the same period of FY2012. In terms of profits, operating income rose 11,489 million yen compared with an operating loss of 493 million yen for the same period of FY2012, to 10,995 million yen, reflecting the impact of increased sales and the effect of cost reductions. Ordinary income climbed 11,659 million yen compared with an ordinary loss of 54 million yen, to 11,605 million yen, and net income increased 7,893 million yen compared with a net loss of 874 million yen, to 7,019 million yen. Operating performance by segment is as follows: (Japan) FY2012 FY2013 Year-on-year Changes Net sales 43,554 52,667 9, % Operating income -1,134 3,334 4,468 -% Main factors for year on year change Net sales An increase in net sales, compared with FY2012 when the business was affected by the Great East Japan Earthquake, reflecting an increase in orders on the back of the normalization of the operations of the main customers. Operating income Operating income increased, mainly because of a change in the depreciation method, in addition to a rise in sales. (Americas) FY2012 FY2013 Year-on-year Changes Net sales 45,284 80,726 35, % Operating income -1,244 4,896 6,141 -% Main factors for year on year change Net sales An increase in net sales, compared with FY2012 when the business was affected by the Great East Japan Earthquake, driven by an increase in orders on the strength of recovering demand in North America, in addition to the normalization of operations by main customers. Operating income Operating income increased, given higher sales, despite an increase in expenses, associated with a rise in orders. -2-

6 (China) FY2012 FY2013 Year-on-year Changes Net sales 27,944 38,589 10, % Operating income 2,365 3, % Main factors for year on year change Net sales An increase in net sales, compared with FY2012 when the business was affected by the Great East Japan Earthquake, given an increase in orders accompanying the normalization of operations by main customers. Operating income Operating income improved due to an increase in net sales and the effect of cost reductions, which outweighed the impact of an increase in development expenses, higher labor costs, and other negative factors. (Asia and Europe)* FY2012 FY2013 Year-on-year Changes Net sales 17,169 20,988 3, % Operating income 1,435 1, % Main factors for year on year change Net sales An increase in net sales, compared with FY2012 when the business was affected by the Great East Japan Earthquake, reflecting an increase in orders from main customers, offsetting the effects of the suspension of operations due to flooding in Thailand. Operating income Operating income declined, given higher expenses as a result of flooding in Thailand, which overweighed the effects of higher net sales. *TS TECH has changed Asia and the U.K. segment to Asia and Europe since April 1, Sales by business segment are as follows: FY2012 FY2013 Sales ratio Sales ratio Changes Motorcycles 2, % 3, % % Automobiles 119, % 174, % 54, % (Seats) 104, % 154, % 50, % (Interior products) 15, % 19, % 4, % Other businesses 1, % 1, % % Total 124, % 179, % 54, % Main factors for year on year changes Motorcycle business Net sales increased, due to an increase in orders from main customers in India. Automobile business Sales increased, compared with FY2012 when the business was affected by the Great East Japan Earthquake, driven by an increase in orders from main customers, buoyed by a recovery in automobile demand centering on North America. Year-onyear -3-

7 (2) Qualitative Information Concerning Consolidated Financial Positions (Total assets) Total assets at the end of the second quarter of FY2013 stood at 186,773 million yen, decreasing 2,569 million yen (1.4%) from the end of FY2012. Current assets totaled 127,669 million yen, rising 1,066 million yen (0.8%) from the end of the previous fiscal year. These changes primarily reflected an increase of 772 million yen in income taxes receivable that were included in the other of current assets, in addition to an increase of 1,266 million yen in cash and deposits, reflecting declines of 1,016 million yen in notes and accounts receivable-trade. Noncurrent assets came to 59,104 million yen, decreasing 3,636 million yen (5.8%) from the end of FY2012. The decline was mainly attributable to a fall of 3,527 million yen in investments and other assets, reflecting a decrease in investment securities associated with fair market valuation. (Liabilities) Total liabilities at the end of the second quarter of FY2013 amounted to 70,202 million yen, decreasing 6,893 million yen (8.9%) from the end of FY2012. The decline resulted primarily from a decrease of 2,036 million yen in short-term loans payable, mainly reflecting an improvement in financing achieved through increased profits, as well as a decrease of 1,680 million yen in notes and accounts payable-trade, and a decline of 2,460 million yen in accounts payable that were included in the other of current liabilities. (Net assets) Net assets at the end of the second quarter of FY2013 were 116,570 million yen, up 4,323 million yen (3.9%) from the end of FY2012. The increase owed chiefly to an increase of 6,175 million yen in retained earnings, offsetting a decline of 1,961 million yen in the valuation difference on available-for-sale securities, which was the result of a decline in investment securities associated with fair market valuation. (3) Qualitative Information Concerning Consolidated Forecasts Taking into account consolidated operating results for the first half of FY2013 as well as the current trend in orders from main customers and foreign exchange rates among other factors, the Group has revised the consolidated forecasts it announced on April 27, 2012 as follows. This forecast assumes average exchange rates over the second half of FY2012 of 78 yen per 1 USD and 12.3 yen per 1 CNY. Revision to consolidated forecasts for FY2013 (April 1, March 31, 2013) Net sales Operating income Ordinary income Net income Net income per share Million yen Million yen Million yen Million yen Yen Previous forecasts(a) 363,000 21,500 23,000 12, Revised forecasts(b) 356,500 20,500 21,500 12, Difference(B-A) -6,500-1,000-1, Change in % (Reference)Results from previous fiscal year (FY2012) 305,482 9,401 10,927 4,

8 2. Matters Concerning Summary (Notes) Information (1) Changes in Important Subsidiaries during the Current Period Not applicable (2) Application of Special Accounting Treatment for Quarterly Consolidated Financial Statements (Calculation of tax expense) Tax expense is calculated by rationally estimating the effective tax rate for income before income taxes for the fiscal year, including the first half of FY2013, following the application of tax effect accounting, and multiplying quarterly income before income taxes by the estimated effective tax rate. (3) Changes in Accounting Policies, Accounting Estimates, or Re-statement (Change in accounting policy which is difficult to distinguish from change in accounting estimate) Previously, the Company and its domestic consolidated subsidiaries applied the declining balance method for depreciation (except for any buildings (excluding annexed structures) acquired on or after April 1, 1998, for which the straight line method was adopted). However, from the first quarter of FY2013, the Company and its consolidated domestic subsidiaries adopted the straight-line method of depreciation. This change was made because it was judged more appropriate to spread depreciation cost equally, given that the Group has made effective, flexible reforms for production structure and that the Group forecasts stable utilization of capital over the medium- and long-term. This change had the effect of increasing each of operating income, ordinary income and income before income taxes for the first half of FY2013 by 420 million yen. The impact on segment information is indicated in the applicable section. -5-

9 3. Quarterly Consolidated Financial Statements (1) Quarterly Consolidated Balance Sheets Assets FY2012 (As of March 31, 2012) Second quarter of FY2013 (As of September 30, 2012) Current assets Cash and deposits 47,434 48,701 Notes and accounts receivable-trade 52,416 51,400 Merchandise and finished goods 2,251 2,433 Work in process 1,900 2,161 Raw materials and supplies 15,790 15,399 Other 6,831 7,593 Allowance for doubtful accounts Total current assets 126, ,669 Noncurrent assets Property, plant and equipment Buildings and structures, net 15,899 15,459 Machinery, equipment and vehicles, net 11,451 11,098 Other, net 15,643 16,328 Total property, plant and equipment 42,994 42,886 Intangible assets 1,173 1,173 Investments and other assets 18,572 15,045 Total noncurrent assets 62,740 59,104 Total assets 189, ,773 Liabilities Current liabilities Notes and accounts payable-trade 47,961 46,280 Short-term loans payable 4,298 2,262 Long-term loans scheduled for payment within one year Income taxes payable 933 1,190 Provision 2,009 2,083 Other 11,944 10,150 Total current liabilities 67,368 62,465 Noncurrent liabilities Long-term loans payable 2,486 1,983 Provision Other 6,558 5,057 Total noncurrent liabilities 9,727 7,736 Total liabilities 77,095 70,202-6-

10 Net assets FY2012 (As of March 31, 2012) Second quarter of FY2013 (As of September 30, 2012) Shareholders equity Capital stock 4,700 4,700 Capital surplus 5,163 5,163 Retained earnings 99, ,389 Treasury stock -3-3 Total shareholders equity 109, ,249 Valuation and translation adjustments Valuation difference on available-for-sale securities 7,089 5,127 Foreign currency translation adjustment -15,216-15,768 Total valuation and translation adjustments -8,126-10,640 Minority interests 11,300 11,962 Total net assets 112, ,570 Total liabilities and net assets 189, ,773-7-

11 (2) Quarterly Consolidated Statements of Income and Comprehensive Income Quarterly Consolidated Statements of Income Consolidated First Half Second quarter of FY2012 (April 1, 2011 September 30, 2011) Second quarter of FY2013 (April 1, 2012 September 30, 2012) Net sales 124, ,035 Cost of sales 114, ,918 Gross profit 9,791 23,116 Selling, general and administrative expenses Packing and transportation expenses 1,138 1,773 Salaries and allowances 4,468 4,841 Other 4,678 5,506 Total selling, general and administrative expenses 10,285 12,120 Operating income (loss) ,995 Non-operating income Interest income Dividends income Land and house rent received Equity in earnings of affiliates Other Total non-operating income 1,000 1,063 Non-operating expenses Interest expenses Foreign exchange losses Other 46 6 Total non-operating expenses Ordinary income (loss) ,605 Extraordinary income Gain on sales of noncurrent assets Insurance income 43 7 Compensation income - 17 Other 0 4 Total extraordinary income Extraordinary loss Loss on sales of noncurrent assets Loss on retirement of noncurrent assets Impairment loss - 7 Loss on disaster Other 4 30 Total extraordinary loss Income (loss) before income taxes ,163 Income taxes-current ,089 Total Income taxes ,089 Income before minority interests 101 8,073 Minority interests in income 975 1,054 Net income (loss) ,019-8-

12 Quarterly Consolidated Statements of Comprehensive Income Consolidated First Half Second quarter of FY2012 (April 1, 2011 September 30, 2011) Second quarter of FY2013 (April 1, 2012 September 30, 2012) Income before minority interests 101 8,073 Other comprehensive income Valuation difference on available-for-sale securities -1,915-1,965 Foreign currency translation adjustment Share of other comprehensive income of associates accounted for using equity method Other comprehensive income -2,878-2,282 Comprehensive income -2,776 5,790 Comprehensive income attributable to Comprehensive income attributable to owners of the parents -3,653 4,505 Comprehensive income attributable to minority interests 876 1,285-9-

13 (3) Quarterly Consolidated Statements of Cash Flows Second quarter of FY2012 (April 1, 2011 September 30, 2011) (Million yen) Second quarter of FY2013 (April 1, 2012 September 30, 2012) Interest and dividends income received Interest expenses paid Income taxes (paid) refund -2,111-4,387 Proceeds from insurance income Proceeds from compensation - 17 Payments for loss on disaster Net cash provided by (used in) operating activities 3,090 10,972 Net cash provided by (used in) investing activities Payments into time deposits -1,299-3,077 Proceeds from withdrawal of time deposits 5,016 2,310 Purchase of property, plant and equipment -3,614-4,110 Proceeds from sales of property, plant and equipment Purchase of investments in subsidiaries -1,158 - Other Net cash provided by (used in) investing activities -1,200-5,113 Net cash provided by (used in) financing activities Net increase (decrease) in short-term loans payable 1,141-2,082 Cash dividends paid Cash dividends paid to minority shareholders -2,154-2,114 Other Net cash provided by (used in) financing activities -2,244-5,422 Effect of exchange rate change on cash and cash equivalents 69-3 Net increase (decrease) in cash and cash equivalents Cash and cash equivalents at beginning of period 33,287 43,394 Cash and cash equivalents at end of period 33,001 43,829 Net cash provided by (used in) operating activities Income (loss) before income taxes ,163 Depreciation and amortization 4,292 3,555 Impairment loss - 7 Increase (decrease) in provision Interest and dividends income Interest expenses Equity in (earnings) losses of affiliates Loss (gain) on sales of property, plant and equipment -1 2 Loss on retirement of property, plant and equipment Insurance income Compensation income Loss on disaster Decrease (increase) in notes and accounts receivabletrade 13, Decrease (increase) in inventories -2, Increase (decrease) in notes and accounts payable-trade -9,884-1,021 Other Subtotal 4,834 14,

14 (4) Notes Concerning Going Concern Assumption Not applicable (5) Segment Information [Segment information] FY2012 (April 1, 2011 September 30, 2011) 1. Information about net sales, profits or losses according to reporting segments Net sales Reporting segments Japan Americas China Asia and Europe Total Amounts Adjustments stated in (Note) 1 quarterly P/L (Note) 2 Sales to customers 34,717 45,284 26,887 17, , ,058 Interarea transfer 8,837 1,057 9,894-9,894 Total 43,554 45,284 27,944 17, ,953-9, ,058 Segment profits (losses) -1,134-1,244 2,365 1,435 1,421-1, (Notes) 1. Adjustments of -1,915 million yen for segment profits (losses) include a deduction of 227 million yen for transactions among segments, and operating expenses of -1,878 million yen associated with the administration division of the headquarters of the parent company, which could not be allocated. 2. Segment profits (losses) are adjusted to operating income (loss) in quarterly consolidated statements of income. 2 Information about impairment loss of noncurrent assets or goodwill according to reporting segments Not applicable FY2013 (April 1, 2012 September 30, 2012) 1. Information about net sales, profits and losses according to reporting segments Net sales Reporting segments Japan Americas China Asia and Europe Total Amounts Adjustments stated in (Note) 1 quarterly P/L (Note) 2 Sales to customers 40,794 80,726 36,530 20, , ,035 Interarea transfer 11,873-2, ,936-13,936 - Total 52,667 80,726 38,589 20, ,971-13, ,035 Segment profits 3,334 4,896 3,355 1,414 13,001-2,005 10,995 (Notes) 1. Adjustments of -2,005 million yen for segment profits include a deduction of 247 million yen for transactions among segments, and operating expenses of -2,046 million yen associated with the administration division of the headquarters of the parent company, which could not be allocated. 2. Segment profits are adjusted to operating income (losses) in quarterly consolidated statements of income. -11-

15 2 Matters concerning changes in reporting segments, etc. (1) The Company changed the Asia and the U.K. segment to the Asia and Europe segment with effect from the first quarter of FY2013. However, this change is a change in name only and not a change in reporting segment. The segment information for the first half of FY2012 is prepared based on the new segment name. (2) As stated in change in accounting policy which is difficult to distinguish from a change in accounting estimate, previously, the Company and its domestic consolidated subsidiaries applied the declining balance method for depreciation (except for any buildings (excluding annexed structures) acquired on or after April 1, 1998, for which the straight line method was adopted). However, from the first quarter of FY2013, the Company and its consolidated domestic subsidiaries adopted the straight-line method of depreciation. This change had the effect of increasing the income of the Japan segment for the first half of FY2013 by 420 million yen compared with segment income calculated by the previous method. 3 Information about impairment loss of noncurrent assets or goodwill according to reporting segments (Significant impairment loss on noncurrent assets) The Company fully wrote off the carrying value of idle assets in the Americas segment that were not expected to be used in the future and were difficult to sell and recorded its write-down under extraordinary loss as an impairment loss of noncurrent assets of 7 million yen. (6) Notes Concerning Significant Changes in the Amount of Shareholders Equity Not applicable -12-