January 31, 2013 Summary of Financial Results for the Third Quarter of the Fiscal Year Ending March 2013 [Japan GAAP] Name of Company: SHIROKI CORPORATION Stock Exchange Listing: Tokyo Stock Exchange, First Section, Nagoya Stock Exchange, First section Stock Code: 7243 URL: http://www.shiroki.co.jp/ Representative: Title Representative Director and President Name Takuo Matsui Contact Person: Title Manager, Accounting Division Name Masutaka Kaede Tel: +81-(533) 93-1269 Date of filing of quarterly securities report: February 12, 2013 (tentative) Date of commencement of dividend payment: - Supplementary materials for quarterly financial report: Yes Information meeting for quarterly financial report: None (Yen in millions, rounded down) 1. Financial results for the first three quarters of the fiscal year ending March 2013 (April 1, 2012 December 31, 2012) (1) Results of operations (Consolidated, year-to-date) (Percentage figures represent year on year changes) Net sales Operating income Ordinary income Net income Million yen % Million yen % Million yen % Million yen % First three quarters of FY2013 83,066 4.4 2,163-33.7 2,250-26.0 1,235 29.8 First three quarters of FY2012 79,593-12.3 3,263-36.2 3,040-34.6 952-65.9 Note: Comprehensive income: First three quarters of FY3/2013: 1,113 million yen (86.6%) First three quarters of FY3/2012: 596 million yen (-74.6%) Net income per share (basic) Net income per share (diluted) Yen Yen First three quarters of FY2013 13.94 - First three quarters of FY2012 10.74 - (2) Financial position (Consolidated) Total assets Net assets Equity ratio Net assets per share Million yen Million yen % Yen As of December 31, 2012 66,188 34,380 51.7 385.81 As of March 31, 2012 72,374 33,710 46.4 378.42 Reference: Shareholders equity As of December 31, 2012: 34,200 million yen As of March 31, 2012: 33,548 million yen 2. Dividends Annual dividend End of 1Q End of 2Q End of 3Q End of FY Annual Yen Yen Yen Yen Yen FY2012-2.00-3.00 5.00 FY2013-2.00 - FY2013 (est.) 3.00 5.00 Note: Change in the estimation of dividend from the latest announcement: None 3. Forecast for the fiscal year ending March 2013 (Consolidated, April 1, 2012 March 31, 2013) (Percentage figures represent year on year changes) Net sales Operating income Ordinary income Net income Net income per share Million yen % Million yen % Million yen % Million yen % Yen Full year 109,400-1.0 2,200-58.7 2,300-57.1 1,100-54.3 12.41 Note: Change in the forecast from the latest announcement: Yes Please refer Notice of Revision in Forecast for Fiscal Year Ending March 2013 announced on 31 January 2013.
4. Others (1) Changes in significant subsidiaries (Changes in specific subsidiaries accompanied by changes in the scope of consolidation): None (2) Use of of accounting methods specifically for the preparation of the quarterly consolidated financial statements: None (3) Changes in accounting principles and estimates, and retrospective restatement (a) Changes due to revision of accounting standards: Yes (b) Changes other than in (a): None (c) Changes in accounting estimates: Yes (d) Retrospective restatement: None Note: The revision in the method used for depreciation starting with the first quarter of the current fiscal year fulfills the conditions for a case where it is difficult to make a distinction between a change in an accounting method and a change in an accounting estimate. For more information, please see 2. Other Information (3) Changes in accounting principles and estimates, and retrospective restatements. (4) Number of shares outstanding (common stock) (a) Shares outstanding (including treasury stock) As of December 31, 2012: 89,003,624 As of March 31, 2012: 89,003,624 (b) Treasury stock As of December 31, 2012: 358,516 As of March 31, 2012: 351,051 (c) Average number of shares (quarterly consolidated cumulative period) Period ended December 31, 2012: 88,648,545 Period ended December 31, 2011: 88,658,531 *Information concerning quarterly review procedure The rule mandating a review of quarterly financial statements (under the Financial Instruments and Exchange Act) does not apply to this Summary of Financial Results. The financial statements for the period were under review at the time this Summary of Financial Results was released. *Cautionary statement regarding forecasts of operating results and special notes The forward-looking statements contained in this report are based on information currently available to the Company and certain assumptions which are regarded as legitimate. These statements are not promises by the Company regarding future performance. Actual results may differ significantly from these forecasts due to various factors. For information about the forecasts, please see (3) Forecast for fiscal year ending March 2013 on page 2.
Index for Supplementary Information 1. Business Results... 2 (1) Analysis of Results of Operations... 2 (2) Analysis of Financial Condition... 2 (3) Forecast for Fiscal Year Ending March 2013... 2 2. Other Information... 2 (1) Changes in significant subsidiaries:... 2 (2) Use of accounting methods specific to preparation of the quarterly consolidated financial statements:... 2 (3) Changes in accounting principles and estimates, and retrospective restatement... 2 3. Quarterly Consolidated Financial Statements... 3 (1) Quarterly consolidated balance sheets... 3 (2) Quarterly consolidated statements of income and consolidated statements of comprehensive income... 5 (3) Notes to ongoing concern assumptions:... 7 (4) Notes on significant change in shareholders equity:... 7 (5) Segment information... 7 4. Supplementary Information... 9 (1) Consolidated sales breakdown... 9 1
1. Business Results (1) Analysis of Results of Operations In the first three quarters of the fiscal year, the Japanese economy enjoyed a mild recovery as a result of disaster reconstruction demand but the global slowdown in response to the instability in the European and Chinese economies acted to depress sentiment towards the domestic economy and so the outlook remained uncertain. In the automobile industry, there was an increase in production by automobile makers that use SHIROKI products in response to reconstruction-related demand and the eco-car subsidy in the first half of the period but the contraction in the domestic market that resulted from the termination of the eco-car subsidy and the decrease in Chinese automobile production volume had an adverse impact in the latter half. Net sales in the first three quarters increased 4.4% to 83,066 million yen, operating income decreased 33.7% to 2,163 million yen, ordinary income decreased 26.0% to 2,250 million yen, and net income increased 29.8% to 1,235 million yen. Geographic segment performance was as follows. 1) Japan Net sales decreased 1.0% to 61,597 million yen and operating income decreased 54.1% to 947 million yen. 2) United States Net sales increased 29.9% to 13,781 million yen and there was an operating loss of 88 million yen compared with operating loss of 199 million yen one year earlier. 3) China Net sales decreased 0.6% to 4,605 million yen and operating income decreased 25.3% to 482 million yen. 4) Southeast Asia Net sales increased 35.4% to 4,954 million yen and operating income decreased 0.2% to 402 million yen. (2) Analysis of Financial Condition Total assets were 66,188 million yen at the end of the third quarter, 6,186 million yen less than at the end of the previous fiscal year. The main reasons were a decrease of 4,984 million yen in notes and accounts receivable and a decrease of 1,595 million yen in cash and deposits. Total liabilities decreased 6,855 million yen to 31,808 million yen mainly because of a 4,409 million yen decrease in notes and accounts payable and a decrease of 2,521 million yen in long-term loans payable. Net assets increased 669 million yen from the end of the previous fiscal year to 34,380 million yen. (3) Forecast for Fiscal Year Ending March 2013 SHIROKI has revised the consolidated forecasts for the fiscal year because the group now expects that its initial forecasts will not be achieved due mainly to the contraction in the domestic market resulting from the termination of the eco-car subsidy and the decrease in Chinese automobile production volume and to the increase in production preparation and other costs associated with the launch of new models in north America. Please see the forecast revision press release dated January 31, 2013 for more information. 2. Other Information (1) Changes in significant subsidiaries: There were no significant movements in major subsidiaries in the third quarter of the current fiscal year. SHIROKI ASIA CORPORATION LIMITED was established during the second quarter of the current fiscal year and included in the consolidated financial statements. (2) Use of accounting methods specific to preparation of the quarterly consolidated financial statements: None (3) Changes in accounting principles and estimates, and retrospective restatement (Changes in accounting policies for items that are difficult to categorize as changes in accounting estimates) In accordance with revisions to the Corporation Tax Act, starting with the first quarter of the current fiscal year, SHIROKI and its consolidated subsidiaries in Japan are calculating depreciation for property, plant and equipment that was acquired on or after April 1, 2012 by using the method based on the revised Corporation Tax Act. The effect of this change on earnings was immaterial. (Changes to presentation method) Because the financial significance of Losses on sales of metal molds etc. which had formerly been included in the Others category within Non-operating expenses has increased it has been shown as a separate item in the accounts from the third quarter of the current fiscal year. To reflect this change in the presentation method for the accounts, changes have been made to the quarterly consolidated statements of income and consolidated statements of comprehensive income for the third quarter. As a result, 31 million yen included in the Others category within Non-operating expenses in the quarterly consolidated statements of income and consolidated statements of comprehensive income for the third quarter of the previous fiscal year is now shown as Losses on sales of metal molds etc. of 28 million yen and Others of 2 million yen. 2
3. Quarterly Consolidated Financial Statements (1) Quarterly consolidated balance sheets As of March 31, 2012 As of December 31, 2012 ASSETS Current assets Cash and deposits 11,643 10,048 Notes and accounts receivable-trade 21,939 16,955 Lease investment assets 2 1 Merchandize and furnished goods 877 981 Work in process 736 866 Raw materials and supplies 2,072 2,072 Others 4,167 3,558 Allowance for doubtful accounts (0) (0) Total current assets 41,439 34,481 Noncurrent assets Property, plant and equipment Buildings and structures, net 5,523 5,822 Machinery, equipment and vehicles, net 11,811 11,664 Land 3,344 3,346 Construction in progress 2,053 2,184 Others, net 2,069 2,110 Total property, plant and equipment 24,802 25,127 Intangible assets Others 246 216 Total intangible assets 246 216 Investments and other assets Investment securities 1,298 1,378 Long-term loans receivable 59 51 Deferred tax assets 2,123 1,938 Prepaid pension cost 1,797 2,384 Others 633 637 Allowance for doubtful accounts (27) (27) Total investments and other assets 5,885 6,361 Total noncurrent assets 30,934 31,706 Total assets 72,374 66,188 3
As of March 31, 2012 As of December 31, 2012 LIABILITIES Current liabilities Notes and accounts payable-trade 20,705 16,295 Short-term loans payable 310 884 Current portion of long-term loans payable 42 252 Income taxes payable 572 186 Provision for bonuses 1,153 475 Provision for directors' bonuses 61 40 Others 4,242 4,555 Total current liabilities 27,087 22,690 Noncurrent liabilities Long-term loans payable 9,237 6,715 Provision for retirement benefits 1,642 1,734 Provision for directors' retirement benefits 18 20 Asset retirement obligations 265 269 Others 411 377 Total Noncurrent liabilities 11,575 9,117 Total liabilities 38,663 31,808 NET ASSETS Shareholders equity Capital stock 7,460 7,460 Capital surplus 9,699 9,699 Retained earnings 18,423 19,216 Treasury stock (91) (93) Total shareholders equity 35,491 36,282 Valuation and translation adjustments Valuation differences on available-for-sale securities 127 186 Foreign currency translation adjustment (2,070) (2,268) Total valuation and translation adjustments (1,943) (2,081) Minority interests 162 179 Total net assets 33,710 34,380 Total liabilities and net assets 72,374 66,188 4
(2) Quarterly consolidated statements of income and consolidated statements of comprehensive income First three quarters ended Dec. 2011 (Apr. 1, 2011 December 31, 2011) First three quarters ended Dec. 2012 (Apr. 1, 2012 December 31, 2012) Net sales 79,593 83,066 Cost of sales 68,430 72,620 Gross profit 11,162 10,445 Selling, general and administrative expenses 7,898 8,281 Operating income (loss) 3,263 2,163 Non-operating income Interest income 34 20 Dividends income 13 13 Foreign exchange gains - 141 Gain on sales of molds, etc. 86 69 Subsidy income 90 1 Others 115 99 Total non-operating income 340 346 Non-operating expenses Interest expenses 144 88 Foreign exchange losses 386 - Loss on sales of molds, etc. 28 115 Others 2 55 Total non-operating expenses 562 259 Ordinary income (loss) 3,040 2,250 Extraordinary income Gain on sales of noncurrent assets 0 2 Total extraordinary income 0 2 Extraordinary loss Loss on retirement of noncurrent assets 58 11 Loss on sales of noncurrent assets 6 4 Impairment loss 107 155 Loss on disaster 611 - Others 54 2 Total extraordinary loss 839 173 Income (loss) before income taxes 2,202 2,079 Income taxes-current 485 498 Income taxes-deferred 732 328 Total income taxes 1,218 827 Income before minority interests 984 1,252 Minority interests in income 32 16 Net income (loss) 952 1,235 Minority interests in income 32 16 Income before minority interests 984 1,252 5
First three quarters ended Dec. 2011 (Apr. 1, 2011 December 31, 2011) First three quarters ended Dec. 2012 (Apr. 1, 2012 December 31, 2012) Other comprehensive income Valuation difference on available-for-sale securities 18 58 Foreign currency translation adjustment (406) (197) Total other comprehensive income (387) (138) Comprehensive income 596 1,113 Comprehensive income attributable to owners of the parent 569 1,096 Comprehensive income attributable to minority interests 27 16 6
(3) Notes to ongoing concern assumptions: None (4) Notes on significant change in shareholders equity: None (5) Segment information I. For the first three quarters ended December 2011 (Apr. 1, 2011 December 31, 2011) 1. Information about sales and income (loss) by reportable segments Net sales Japan U.S.A. China Southeast Asia of which to outside customers 60,886 10,591 4,526 3,588 79,593 of which inter-segment and transfers 1,315 14 105 69 1,505 Total Total 62,202 10,605 4,632 3,658 81,098 Operating income (loss) 2,063 (199) 646 403 2,913 2. Reconciliation of difference between total income (loss) for reportable segments and in quarterly consolidated statements of income and consolidated statements of comprehensive income (Item concerning adjustment for difference) Income Amount Total for reportable segments 2,913 Intersegment eliminations 349 Operating income on quarterly consolidated statement of income 3,263 3. Reportable segment information concerning impairment losses or goodwill amortization: There was no significant impairment loss or goodwill amortization. 7
II. For the first three quarters ended December 2012 (Apr. 1, 2012 December 31, 2012) 1. Information about sales and income (loss) by reportable segments Net sales Japan U.S.A. China Southeast Asia of which to outside customers 59,895 13,742 4,559 4,868 83,066 of which inter-segment and transfers 1,702 39 46 85 1,873 Total 61,597 13,781 4,605 4,954 84,939 Operating income (loss) 947 (88) 482 402 1,744 Total 2. Reconciliation of difference between total income (loss) for reportable segments and in quarterly consolidated statements of income and consolidated statements of comprehensive income (Item concerning adjustment for difference) Income Amount Total for reportable segments 1,744 Intersegment eliminations 419 Operating income on quarterly consolidated statement of income 2,163 3. Reportable segment information concerning impairment losses or goodwill amortization: There was no significant impairment loss or goodwill amortization. 4. Information concerning changes to reported segments: SHIROKI ASIA CORPORATION LIMITED was established during the second quarter of the current fiscal year with the aim of effecting functional enhancement of the operation in Southeast Asia and improving the operational efficiency of the business in the region. To reflect this development, the five former business segments of Japan, U.S.A., China, Thailand, and Indonesia have been reclassified into four segments of Japan, U.S.A., China, Thailand, and Southeast Asia and the three former reporting segments of Japan, U.S.A., and China have been reclassified into four segments of Japan, U.S.A., China, Thailand, and Southeast Asia. The segment information for the third quarter of the previous fiscal year has been prepared on the basis of the reclassified reporting segments. 8
4. Supplementary Information (1) Consolidated sales breakdown First three quarters ended Dec. 2011 (Apr. 1, 2011 December 31, 2011) First three quarters ended Dec. 2012 (Apr. 1, 2012 December 31, 2012) Account Amount Vs. total Amount Vs. total YoY Change (Breakdown by product) (%) (%) Wind regulator 23,867 30.0 28,817 34.7 4,949 Seat recliner, seat adjuster 26,366 33.1 24,126 29.0 (2,239) Door sashes 15,339 19.3 16,403 19.8 1,063 Locks and hinges 5,706 7.2 6,268 7.5 561 Moldings 3,998 5.0 3,903 4.7 (95) Others 4,315 5.4 3,546 4.3 (768) Total 79,593 100.0 83,066 100.0 3,472 (Breakdown by customer) (%) (%) TOYOTA MOTOR CORP. 28,337 35.6 34,797 41.9 6,459 TOYOTA BOSHOKU CORP 12,147 15.3 12,015 14.5 (131) DAIHATSU MOTOR CO., LTD. 2,242 2.8 2,155 2.6 (86) TOYOTA AUTO BODY Co., Ltd. 2,016 2.5 1,984 2.4 (32) AISIN SEIKI CO., LTD 1,257 1.6 1,498 1.8 241 Others 2,232 2.8 2,826 3.3 593 Total Toyota Group 48,233 60.6 55,277 66.5 7,043 SUZUKI MOTOR CORP. 6,669 8.4 6,757 8.1 87 NHK SPRING Co., Ltd. 7,961 10.0 6,499 7.8 (1,461) NISSAN MOTOR CO., LTD. 6,931 8.7 6,360 7.7 (571) MITSUBISHI MOTORS CORP. 2,057 2.6 1,989 2.4 (67) Others 7,739 9.7 6,182 7.5 (1,556) Notes: Total 79,593 100.0 83,066 100.0 3,472 1. Foreign currency-denominated sales are converted into yen by using average exchange rates for each period. 2. Includes the following overseas subsidiaries of Toyota Motor Corp.: Toyota Motor Manufacturing, Indiana, Inc.; Toyota Motor Manufacturing, Kentucky, Inc.; Toyota Motor Manufacturing, Texas, Inc.; Toyota Motor Engineering & manufacturing North America, Inc.; Toyota Motor Manufacturing Mississippi, Inc,; Toyota Motor Manufacturing, Canada Inc.; Toyota Motor Manufacturing de Baja California, S.de R. L. de C.V.; Toyota Motor Thailand Co., Ltd.; Tianjin FAW Toyota Motor Co., Ltd.; Guangzhou Toyota Motor Co., Ltd. and Sichuan FAW Toyota Motor Co., Ltd. 3. Includes the following overseas subsidiaries of Toyota Boshoku Corporation: TRIM MASTERS, INC.; Toyota Boshoku America, Inc.; Toyota Boshoku Canada, Inc., TB DE MEXICO,S.A.DE C.V.; Feng ai (Guangzhou) Automotive Seat Parts Co., Ltd. and Tianjin Feng ai Automotive Seat Parts Co., Ltd. 4. Includes the following overseas subsidiaries of AISIN SEIKI CO., LTD.: AISIN U.S.A. MFG., INC.; AISIN CANADA, INC. and AISIN TIANJIN BODY PARTS CO., LTD. 5. Includes the following overseas subsidiary of SUZUKI MOTOR CORP.: SUZUKI MOTOR (THAILAND) LTD. 6. Includes the following overseas subsidiaries of NHK Spring Co., Ltd.: NHK Seating of America Inc. and NHK SPRING (THAILAND) CO., LTD. 7. Includes the following overseas subsidiaries of Nissan Motor Co., Ltd.: Nissan North America, Inc.; Nissan Motor (Thailand) Co., Ltd.; Dongfeng Nissan Motor Co., Ltd. and Nissan (China) Investment Co., Ltd. 8. Includes the following overseas subsidiaries of Mitsubishi Motors Corp.: Mitsubishi Motors North America, Inc. and Mitsubishi Motors (Thailand) Co. Ltd. 9
Supplementary data for the first three quarters of the fiscal year ending March 2013 Consolidated 1. Performance for the first three quarters and fiscal year outlook FY3/12 (First three quarters) FY3/13 (First three quarters) (Million yen, %) Change vs. Change Full year FY3/13 FY3/12 (forecast) Amount % Amount % Net sales 79,593 100.0 83,066 100.0 3,472 4.4 109,400 100.0 (1,110) (1.0) Operating income (loss) 3,263 4.1 2,163 2.6 (1,099) (33.7) 2,200 2.0 (3,131) (58.7) Ordinary income (loss) 3,040 3.8 2,250 2.7 (790) (26.0) 2,300 2.1 (3,058) (57.1) Net income (loss) (for the period) 952 1.2 1,235 1.5 283 29.8 1,100 1.0 (1,307) (54.3) Comprehensive income 596 0.7 1,113 1.3 516 86.6 - - - - Net income (loss) per share (yen) 10.74 13.94 3.20 12.41 (14.75) Shares outstanding (1,000 shs) 89,003 89,003-89,003 - No. of consolidated subsidiaries 12 13 1 13 1 No. of equity-method affiliates 0 0-0 - Employees at end of period (except temporary workers) 3,256 3,370 114 - - 2. Sales by product category (Million yen, %) FY3/12 FY3/13 Change (First three quarters) (First three quarters) Amount %. Wind regulator 23,867 30.0 28,817 34.7 4,949 20.7 Seat recliner, seat adjuster 26,366 33.1 24,126 29.0 (2,239) (8.5) Door sashes 15,339 19.3 16,403 19.8 1,063 6.9 Locks and hinges 5,706 7.2 6,268 7.5 561 9.8 Moldings 3,998 5.0 3,903 4.7 (95) (2.4) Others 4,315 5.4 3,546 4.3 (768) (17.8) Total 79,593 100.0 83,066 100.0 3,472 4.4 3. Reasons for increase/decrease in ordinary income (year-on-year comparison) Factors Amount Positive factors Changes in operating rates 954 Decrease in depreciation 424 Reduction in cost of sales 281 Total Negative factors Changes in sales price (1,546) Transfer of fixed costs due to the earthquake (578) Others (325) Total (2,449) Net increase (decrease) in ordinary income (790) 10
4. Financial condition (Million yen, %) FY3/12 FY3/13 (End of 3Q) Difference Total assets 72,374 66,188 (6,186) Net assets 33,710 34,380 669 Equity ratio (%) 46.4 51.7 5.3 Net assets per share (yen) 378.42 385.81 7.39 5. Geographical segment Net sales Operating income (loss) (Million yen, %) FY3/12 (First three quarters) FY3/13 (First three quarters) Change Amount % Japan 62,202 61,597 (604) (1.0) U.S.A. 10,605 13,781 3,176 29.9 China 4,632 4,605 (26) (0.6) Southeast Asia 3,658 4,954 1,296 35.4 Eliminations (1,505) (1,873) (368) - Total 79,593 83,066 3,472 4.4 Japan 2,063 947 (1,116) (54.1) U.S.A. (199) (88) 111 - China 646 482 (163) (25.3) Thailand 403 402 (0) (0.2) Eliminations 349 419 69 20.0 Total 3,263 2,163 (1,099) (33.7) 6. Historical financial summary All time high Operating income FY3/11 All time high Net sales FY3/08 FY3/11 FY3/12 (Million yen, %) FY3/13 (forecast) Net sales 117,704 100.0 143,557 100.0 117,704 100.0 110,510 100.0 109,400 100.0 Operating income (loss) 6,400 5.4 5,058 3.5 6,400 5.4 5,331 4.8 2,200 2.0 Ordinary income (loss) 5,678 4.8 3,931 2.7 5,678 4.8 5,358 4.9 2,300 2.1 Net income (loss) 6,095 5.2 2,907 2.0 6,095 5.2 2,407 2.2 1,100 1.0 Capital expenditures 2,053 6,849 2,053 3,924 6,097 Depreciation 5,361 6,097 5,361 4,511 4,271 Dividend per share 5.00 yen 4.50 yen 5.00 yen 5.00 yen 5.00 yen Net Sales Operating income and operating margin 11