EXEDY Corporation (7278) FY2018 Financial Results

FY2018 Consolidated Financial Results〔IFRS〕(English translation extracted from the original Japanese document)
April 25, 2019
Tokyo Stock Exchange
Company Name:
Code No.:
URL:
Representative:
Contact Person:

EXEDY Corporation
7278
http://www.exedy.com
Hidehito Hisakawa, President
Hiroshi Toyohara, Tel: +81-72-822-1152
Director and Executive Managing Officer/Administrative Headquarters Executive General Manager

Scheduled Date for the General Shareholders Meeting: June 26, 2019
Scheduled Payment Date for Dividends: June 27, 2019
Scheduled Filing Date for Annual Securities Report on EDINET: June 26, 2019
Additional Materials for FY2018 Financial Results: None
Briefing Session for FY2018 Financial Results: Yes (For analysts and professional investors)

1. FY2018 Consolidated Performance (April 1, 2018 to March 31, 2019)(1) Consolidated Operating Results(Note: All amounts less than one million yen is rounded off)
(Changes from the previous year expressed as a percentage)
Revenue

FY2018FY2017

Income before
Income Taxes

Operating Profit

Millions ofyen%millions ofyen

282,398
283,319△0.3
5.6

19,62623,808millions of
yen

%
△17.6
3.6

Basic Earnings
per Share

Diluted Earnings
per Share

yen

yen

%

19,03922,499△15.4
3.5

Profitmillions ofyen%

13,334
16,513

Ratio of Profit
to Equity Attributableto Owners of Parent

△19.3
7.3

Profit Attributable to
Owners of Parent

Total
Comprehensive
Incomemillions ofyenmillions ofyen%

13,688
16,135

△15.2
15.2

%

12,967
15,791△17.9
10.9

Ratio of Income
before Income Taxes
to Total Assets%

Ratio of
Operating Profit
to Revenue%%

FY2018269.52

-

6.6

6.1

6.9

FY2017328.66

-

8.5

7.5

8.4

(Reference) Equity in Earnings of Affiliates is ¥ 26.0 million for FY2018 and ¥ 12.0 million for FY2017.
(2) Consolidated Financial Position

FY2018FY2017

Total Assets

Total Equity

millions of yen
311,975
307,385

millions of yen
212,026
203,631

Equity Attributableto Owners of Parent

Ratio for Equity Attributableto Owners of Parent

millions of yen
200,153
191,455

%
64.2
62.3

Equity per Share
Attributableto Owners of Parent
yen
4,157.72
3,984.29(3) Consolidated Cash Flows
Cash Flows
from Operating Activities
FY2018FY2017

Cash Flows
from Investing Activities

Cash Flows
from Financing Activities

Balance of Cash and Cash
Equivalents at End of Period

millions of yen

millions of yen

millions of yen

millions of yen

31,76033,006△27,763△22,921△3,260△7,61645,413
44,6981 / 15

EXEDY Corporation (7278) FY2018 Financial Results
2. Dividends
Annual Dividends per ShareFY2017FY2018FY2019(Expected)

Total Dividends

Payout Ratio

Ratio of Dividend
to Equity Attributableto Owners of Parent

1stQuarteryen

2ndQuarteryen

3rdQuarteryen

FiscalYear-endyen

yenmillions of yen

%

%

-

40.00
45.00

-

50.00
45.00

90.00
90.00

4,335
4,336

27.4
33.4

2.3
2.2

-

45.00

-

45.00

90.00

Total

33.4

3. FY2019 Consolidated Performance Forecast (April 1, 2019 to March 31, 2020)(Changes from previous financial period expressed as a percentage)

millions of yen%

millions of yen%

millions of yen%

millions of yen

%

Basic
Earnings
per Shareyen

140,000

△2.8

9,500

△22.0

9,000

△25.4

6,000

△22.0

124.39290,000

2.7

20,0001.9

19,0500.1

13,0000.3

269.52

Revenue

1st Halfof FY2019
FY2019

Income before
Income Taxes

Operating Profit

Profit Attributableto Owners of Parent※ General Notes(1) Significant Changes in Scope of Consolidation: None
(2) Changes in Accounting Policies, Accounting Estimations and Restatements① Changes in accounting policies required by IFRS：Yes
② Changes in accounting policies except ①：None③ Changes in accounting estimates：None(3) Number of Outstanding Shares (Ordinary shares)①Number of shares outstanding at the
FY2018 48,593,736 shares
end of period (including treasury shares)②Number of treasury shares at the end
FY2018453,621 sharesof period③Average number of ordinary shares
FY2018 48,113,914 shares
outstanding during the period

FY2017

48,593,736 shares

FY2017541,311 shares

FY201748,047,949 shares(Note) The shares held within the ESOP trust accounts (FY2018 37,000 shares, FY2017 48,200 shares) and BIP trust accounts(FY2018 0 shares, FY2017 63,987 shares) are included in the number of Treasury Shares at end of period. Furthermore,
the shares held within the ESOP and BIP trust accounts are included in Treasury Shares that are deducted in thecalculation of the average number of shares for the period. (FY2018 67,843 shares, FY2017 116,708 shares)※ This Financial Report is not subject to audit procedure.
※ Regarding the appropriate use of performance forecasts and other information
The above forecast is based on the information available, or the assumptions which the company thinks reasonable as of the releaseof this report. Actual results might be different from the above estimates due to subsequent changes in circumstances.
Regarding to notes of usage and performance forecast assumptions, please refer to Page 6, 1. Overview of business results etc. (4)Future outlook.

2 / 15

EXEDY Corporation (7278) FY2018 Financial Results

Table of Contents of Attachments
1. Overview of Operating Results etc. ……………………………………………………………………………………
(1) Overview of Operating Results for Current Period…………………………………………………………………

4
4(2) Overview of Financial Position for Current Period…………………………………………………………………
(3) Overview of Cash Flow for the Current Period ……………………………………………………………………

5
5(4) Future Outlook….……………………………………………………………………………………………………
2. Basic Way of Thinking Regarding to Selection of Accounting Standard ...……………………………………………

6
6

3. Consolidated Financial Statements and Main Notes ……………………………………………………………………
(1) Consolidated Statement of Financial Position……………………………………………………………………

66(2) Consolidated Statement of Income/Consolidated Statement of Comprehensive Income……………………

8(3) Consolidated Statement of Changes in Equity……………………………………………………………………

10(4) Consolidated Statement of Cash Flows……………………………………………………………………………

12(5) Notes on Consolidated Financial Statements ……………………………………………………………………
(Notes for Going Concern) ……………………………………………………………………….…………………

13
13(Change of Accounting Policy) ………………………………………………………………………………………
(Segment Information) ………………………………………………………………………………………………

13
13(Per Share Information) ………………………………………………………………………………………………
(Significant Subsequent Events) ….………………………………………………………………………………...

15
15

3 / 15

EXEDY Corporation (7278) FY2018 Financial Results

1. Overview of Operating Results etc.
(1) Overview of operating results for current period
In current consolidated fiscal year, revenue decreased mainly due to decrease in orders in the Chinese market. In
terms of profits, in addition to a decline in sales revenue and an increase in manufacturing costs mainly on laborcosts, we recognized impairment loss on production facilities of a subsidiary in US because of declining orders for
AT products due to the change in US market which is expected not to recover in short term. All these resulted indecreased in operating profit. Performance of current consolidated fiscal year are, Revenue: ¥ 282.4 billion (0.3%
decreased from previous year), Operating profit: ¥ 19.6 billion (17.6% decreased from previous year), Income
before income taxes: ¥ 19.0 billion (15.4% decreased from previous year), profit attributable to owners of parent¥ 13.0 billion (17.9% decreased from previous year).
(Segment Information)
The summary by type of reportable segment is as follows[MT (Manual Automotive Drivetrain related business)]
Revenue decreased by 3.3% from previous year, to ¥ 68.5 billion, due to declining orders from Chinese anddomestic automobile manufacturers. Segment profit decreased by 7.7% to ¥ 9.3 billion due to the decline in revenue.
[AT (Automatic Automotive Drivetrain related business)]
Revenue increased by 1.9% from previous year to ¥ 181.1 billion due to increased orders in Japan and Mexico.
Regarding segment profits, despite the increase in sales revenue, manufacturing costs has increased, mainly onlabor costs. Furthermore, we recognized impairment loss on production facilities of subsidiary in US because of
declining orders for AT products due to the change in US market which is expected not to recover in short term.
Thus, operating profit decreased by 27.8% to ¥ 8.6 billion.
[Others]
Revenue decreased by 5.5% from previous year to ¥ 32.8 billion due to declining orders for motorcycle clutch
products in Asia. Segment profit decreased by 13.8% from previous year to ¥ 2.8 billion due to decrease in revenue.
The summary by location is as follows[Japan]
Revenue decreased by 0.1% from previous year to ¥ 130.6 billion due to declining orders for MT products.
Operating profit decreased by 19.3% from previous year to ¥ 11.8 billion due to increases in labor costs and material
costs.
[North and Central America]
Revenue increased by 4.8% from previous year to ¥ 51.8 billion due to increase in orders on AT products forautomobile manufacturers. Despite the increase in revenue, operating loss was ¥ 1.5 billion (¥ 0.5 billion operating
loss in previous year) due to the above-mentioned impairment loss.
[Asia, Oceania]
Revenue decreased by 3.8% from previous year to ¥ 91.8 billion due to decrease in orders in Chinese market.
Operating profit increased by 4.5% from previous year to ¥ 9.2 billion by cost reduction activities.
[Others]
Revenue increased by 6.3% from previous year to ¥ 8.3 billion due to increase in orders on AT products forautomobile manufacturers in Europe. Operating profit increased by 6.0% from previous year to ¥ 0.4 billion due toincrease in revenue.

4 / 15

EXEDY Corporation (7278) FY2018 Financial Results(2) Overview of Financial Position for Current Period
Total assets at the end of current consolidated fiscal year were ¥ 312.0 billion, increased ¥ 4.6 billion from the endof the previous year. The main details were increase of ¥ 10.7 billion in property, plant and equipment due to capital
investment and ¥ 5.8 billion decrease in trade and other receivables. Total liabilities were ¥ 99.9 billion, decreased¥ 3.8 billion from the end of the previous year.
Total equity amounted to ¥ 212.0 billion, increased ¥ 8.4 billion from the end of the previous year. The main details
were increase of ¥ 8.4 billion in retained earnings (¥ 13.0 billion increase by profit attributable to owners of theparent company, ¥ 4.6 billion decrease by disposal of surplus (dividend)). The ratio for equity attributable to ownersof the parent company was 64.2% (62.3% at the end of the previous year).
(3) Overview of Cash Flow for the Current Period
Balance of cash and cash equivalents (hereinafter referred to as “funds”) for the current consolidated fiscal year
increased ¥ 0.7 billion from the end of the previous consolidated fiscal year, to ¥ 45.4 billion at the end of the current
consolidated fiscal year.
The status of each cash flow in the current consolidated fiscal year and their factors are as follows.
(Cash flow from operating activities)
The funds acquired by cash flow from operating activities were ¥31.8 billion. The main breakdown of the increaseis income before income taxes ¥19 billion, depreciation and amortization expenses ¥ 17.9 billion, the main
breakdown of the decrease is amount of corporate income taxes payment ¥ 8.4 billion.
(Cash flow from investing activities)
The funds used by cash flow from investing activities was ¥ 27.8 billion. The main breakdown is expenditure foracquisition of tangible fixed assets ¥ 27 billion and expenditures on acquisition of intangible assets ¥ 1.2 billion.
(Cash flow from financing activities)
The funds used by cash flow from financing activities was ¥ 3.3 billion. The main breakdown are the net amount ofborrowings and repayments of ¥ 2.2 billion and dividend payment of ¥ 4.6 billion.
(Reference) Trends of cash flow associated indicators
FY 2017 FY 2018
Ratio for Equity Attributableto Owners of Parent（%）

62.3

64.2

Ratio for Equity Attributableto Owners of Parent at fair value（%）

52.4

37.0

Ratio of Cash flow to Interest-bearing debt (year)

1.3

1.4

Interest coverage ratio (times)

33.6

31.7

Ratio for equity attributable to owners of parent: Equity attributable to owner of parent company/Total Assets
Ratio for equity attributable to owners of parent at fair value: Market capitalization/Total Assets
Ratio of Cash flow to Interest-bearing debt: Interest-bearing debt/Operating cash flow
Interest coverage ratio: Operating cash flow/Interest payment(Note 1) All figures are calculated based on consolidated financial figures.
(Note 2) Market capitalization is calculated based on the number of issued shares excluding treasury stock.
(Note 3) Interest-bearing debt refers to all debts for which interest is paid among debts recorded on theConsolidated Statement of Financial Position.
(Note 4) The figures of operating cash flow and Interest payments are “Cash flow from operating activities” and“Payment amount of interest” recorded on the Consolidated Statement of Cash Flow.

5 / 15

EXEDY Corporation (7278) FY2018 Financial Results(4) Future Outlook
As for the future outlook, revenue is expected to increase as volume-based orders are steady mainly in overseas
markets. In terms of profit, the tough condition is expected to continue by the runup of labor costs, changes in sales
compositions and exchange rates fluctuations. Yet, in all business activities (especially on factory sector), we
promote rationalization and efficiency activities that raise the group's entire strength and strive to secure profits.
As a result of the above, revenue in FY 2019 is expected to be ¥ 290.0 billion (Increased by 2.7% from the current
fiscal year), operating profit ¥ 20.0 billion (Increased by 1.9%), income before income taxes ¥ 19.0 billion (Increased
by 0.1%), profit attributable to owners of parent company is ¥ 13.0 billion (Increased by 0.3%).

2. Basic way of thinking regarding to Selection of accounting standard
The Group company applies IFRS to improve the international comparability of financial information in the capital
markets.

3. Consolidated financial statements and Main Notes(1) Consolidated Statement of Financial Position
FY2017(March 31, 2018)

FY2018(March 31, 2019)

Millions of yen

Millions of yen

AssetsCurrent Assets
Cash and Cash Equivalents
Trade and Other Receivables

44,69855,06345,41349,246

Other Financial Assets
Inventories

1,642
32,892

1,465
33,611Other Current Assets

3,907

2,817

Total Current Assets

138,202132,552

Non-Current Assets
Property, Plant and Equipment

156,867

167,572

Goodwill and Intangible Assets
Investments Accounted for Using Equity Method

3,564
137

3,640
153

Investments in Equity Instruments
Other Financial Assets

3,610
153

2,944
138

Deferred Tax Assets
Retirement Benefit Asset

2,523
1,071

2,688
1,063

Other Non-Current Assets

1,258

1,225

Total Non-Current Assets

169,183

179,422

Total Assets

307,385

311,975

6 / 15

EXEDY Corporation (7278) FY2018 Financial Results
FY2017(March 31, 2018)

FY2018(March 31, 2019)

Millions of yen

Millions of yen

Liabilities and Equities
Liabilities
Current Liabilities
Bonds and Borrowings
Trade and Other Payables

8,676
39,573

7,745
37,722Other Financial Liabilities
Income Taxes Payable

150
4,093

124
1,965

Employee Benefits Accruals
Provisions

1,330
3,267

1,448
2,805

Other Current Liabilities

2,714

1,667

Total Current Liabilities

59,80353,476

Non-Current Liabilities
Bonds and Borrowings

35,052

38,124

Other Financial Liabilities
Retirement Benefit Liabilities

155
5,849

182
6,081

Deferred Tax Liabilities
Other Non-Current Liabilities

2,204
691

1,368
718

Total Non-Current Liabilities

43,95046,473

Total Liabilities

103,754

99,949EquityShare Capital

8,284

8,284

Capital Surplus
Treasury Shares

7,656△1,367

7,590△1,144

Other Components of Equity
Retained Earnings

△926

△783

177,808

186,206

Total Equity Attributable to Owners of Parent

191,455

200,153

Non-Controlling Interests

12,177

11,873

Total Equity

203,631

212,026

Total Liabilities and Equity

307,385

311,975

7 / 15

EXEDY Corporation (7278) FY2018 Financial Results(2) Consolidated Statement of Income/Consolidated Statement of Comprehensive Income(Consolidated Statement of Income)
FY2017(From: April 1, 2017
To: March 31, 2018)

FY2018(From: April 1,2018
To: March 31, 2019)

Millions of yen
283,319

Millions of yen
282,398

Cost of Sales

225,619

229,799

Gross Profit

57,70052,598Selling, General and Administrative Expenses
Other Operating Income

33,275
1,195

31,395
1,602

Revenue

Other Operating Expenses

1,812

3,179

Operating Profit
Financial Income

23,808175

19,626407

Financial Expenses
Equity in Earnings of Affiliates

1,497
12

1,020
26

Income Before Income Taxes
Income Taxes

22,4995,986

19,0395,704

Profit16,513

13,334Attribution of Profit
Owners of Parent

15,791

12,967

722

367

ProfitNon-controlling Interests

16,513

13,334

Basic and Diluted Earnings per Share (yen)328.66269.528 / 15

EXEDY Corporation (7278) FY2018 Financial Results(Consolidated Statement of Comprehensive Income)

Profit

FY2017(From: April 1, 2017
To: March 31, 2018)

FY2018(From: April 1, 2018
To: March 31, 2019)

Millions of yen

Millions of yen

16,513

13,334Equity Instruments Measured at Fair Value through
Other Comprehensive Income

166

△459

Re-measurement of Defined Benefit Plans.

61

△6

226

△465

△612

819

7

△0

Total of Items that May Be Reclassified to Profit or
Loss.

△605

819

Other Comprehensive Income

△378

354

Comprehensive Income

16,135

13,688

Owners of Parent
Non-controlling Interests

15,335
801

13,113575

Comprehensive Income

16,135

13,688Other Comprehensive Income
Items that will Not Be Reclassified to Profit or Loss

Total of Items that will Not Be Reclassified to Profit or
Loss
Items that May Be Reclassified to Profit or Loss
Exchange Differences on Translation of Foreign
Operations.
Share of Other Comprehensive Income of Investments
Accounted for Using Equity Method.

Attribution of Comprehensive Income

9 / 15

EXEDY Corporation (7278) FY2018 Financial Results(3) Consolidated Statement of Changes in Equity
Previous fiscal year
(April 1, 2017 to March 31, 2018)
Equity Attributable to Owners of Parent
Other Components of Equity
EquityCapitalSurplusCapital

Exchange
Instruments
ReDifferences on Measured atmeasurements
Translation of Fair Valueof Defined
Foreignthrough Other
Benefit Plans
Comprehensive
Operations

Treasury
Shares

Total

Incomemillions of yen millions of yen millions of yen millions of yen millions of yen millions of yen millions of yen

Balances as of April 1, 2017
ProfitOther Comprehensive Income

8,284
-

7,606
-

△1,400△1,573
△683

1,165
166

61

△409

-

-

-

-

△683

166

61

△457

Acquisition of Treasury Shares
Disposal of Treasury Shares
Dividends of Surplus
Share-based Payment Transactions
Transfer to Retained Earnings

-

6
44
-

△0

-

-

△61

△61

Total Transaction Amount with Owners
Total Changes for the Period

-

49

33

-

-

△61

△61

-

49

33

△683

166

-

△517

8,284

7,656

△1,367△2,256

1,330

-

△926

Total Comprehensive Income
for the Period

Balances as of March 31, 201833-

Equity Attributable to Owners of Parent△457

Non-controlling
Interests

Total Equity

Millions of yen
180,127

Millions of yen
12,265

Millions of yen
192,392

15,791-

15,791
△457

722
78

16,513△378

15,791

15,335

801

16,135Acquisition of Treasury Shares
Disposal of Treasury Shares
Dividends of Surplus
Share-based Payment Transactions
Transfer to Retained Earnings△4,089△0
39△4,089△888△0
39△4,978

61

44
-

-

44
-

Total Transactions Amount with Owners△4,029△4,007△888△4,895

11,763

11,328△88

11,240177,808

191,455

12,177

203,631

Balance as of April 1, 2017
ProfitOther Comprehensive Income
Total Amount of Comprehensive Income
for the Period

Changes for the Period
Balance as of March 31, 2018

Retained
Earnings

Total

Millions of yen
166,046

10 / 15

EXEDY Corporation (7278) FY2018 Financial Results
Current fiscal year (April 1, 2018 to March 31, 2019)
Equity Attributable to Owners of Parent
Other Components of Equity
EquityCapitalSurplusCapital

Exchange
Instruments
ReDifferences on Measured atmeasurements
Translation of Fair Valueof Defined
Foreignthrough Other
Benefit Plans
Comprehensive
Operations

Treasury
Shares

Total

Incomemillions of yen millions of yen millions of yen millions of yen millions of yen millions of yen millions of yen

Balances as of April 1, 2018
ProfitOther Comprehensive Income

8,284
-

7,656
-

△1,367△2,256
610

1,330
△459

△6

△926

-

-

-

-

610

△459

△6

146

Acquisition of Treasury Shares
Disposal of Treasury Shares
Dividends of Surplus
Share-based Payment Transactions
Transfer to Retained Earnings

-

△66

△1

-

224
-

-

△8

6

△2

Total Transaction Amount with Owners
Total Changes for the Period

-

△66

223

-

△8

6

△2

-

△66

223

610

△467

-

143

8,284

7,590

△1,144△1,646

863

-

△783

Total Comprehensive Income
for the Period

Balances as of March 31, 2019

Equity Attributable to Owners of Parent146

Non-controlling
Interests

Total Equity

Millions of yen
191,455

Millions of yen
12,177

Millions of yen
203,631

12,967-

12,967
146

367
208

13,334354

Total Comprehensive Income for the
Period12,967

13,113575

13,688Acquisition of Treasury Shares
Disposal of Treasury Shares
Dividends of Surplus
Share-based Payment Transactions
Transfer to Retained Earnings△4,572
2△1
224△4,572△66

224△5,451
△66

-

△879
-

Total Transactions Amount with Owners△4,570△4,415△879△5,294

Balance as of April 1, 2018 2018
ProfitOther Comprehensive Income

Changes for the Period
Balance as of March 31, 2019

Retainedearnings

Total

Millions of yen
177,808

△1

-

8,397

8,698

△304

8,394

186,206

200,153

11,873

212,026

11 / 15

EXEDY Corporation (7278) FY2018 Financial Results(4) Consolidated Statement of Cash Flows

Cash Flows from Operating Activities
Income before Income Taxes
Depreciation and Amortization Expenses
Impairment Loss
Interest and Dividend Income
Interest Expenses
Equity in earnings of Affiliates (△is Profit)
Profit or Loss from Foreign Exchange (△is profit)

FY2017(From: April 1, 2017
To: March 31, 2018)

FY2018(From: April 1, 2018
To: March 31, 2019)

Millions of yen

Millions of yen

22,49919,03917,104△175

17,881
2,224
△377

995
△12
△108

839
△26

Changes of Inventories (△is Increase)
Changes of Trade and Other Receivables (△is Increase)△1,932△1,731

Changes of trade and Other Payables (△is Decrease)

2,200
2,420

Other
SubtotalInterest and Dividends Received

45
△957
5,982
△4,779905

41,259258△981△7,531

40,777363△1,001△8,38033,006

31,760△428△20,924△50△26,991

Proceeds from Sales of Tangible Fixed Assets
Payments for Acquisition of Intangible Assets

369
△969

489
△1,221

Other

△970

10

△22,921△27,763

12,921△12,843

2,210△2,827

4,632△7,340△4,089

9,152△6,323△4,572△897△900△7,616△3,260△162△21Interest Paid
Income Taxes Paid
Cash Flows from Operating Activities
Cash Flows from Investing Activities
Payments into Time Deposits
Payments for Acquisition of Tangible Fixed Assets

Cash Flow from Investing Activities
Cash Flows from Financing Activities
Increase by Short-term Borrowings
Repayments of Short-term Borrowings
Proceeds from Non-current Borrowings
Repayments of Non-current Borrowings
Dividends Paid
Other
Cash Flows from Financing Activities
Effect of Exchange Rate Changes on Cash and Cash
Equivalents
Changes of Cash and Cash Equivalents (△is Decrease)

2,306

715

Balances of Cash and Cash Equivalents at the
Beginning of Period

42,392

44,698Cash and Cash Equivalents at the End of Period

44,69845,41312 / 15

EXEDY Corporation (7278) FY2018 Financial Results(5) Notes on Consolidated Financial Statements(Notes for Going Concern)
Not Applicable(Change of Accounting Policy)
Starting from the current consolidated fiscal year, Company has adopted IFRS 15: (Revenue from contracts withcustomers, Announced in May 2014) and Clarify IFRS 15 (Announced in April 2016) (hereinafter mentioned as“IFRS 15”).
According to the application of IFRS 15, the following five-step is used to recognize revenue from customer
contract.
Step 1: Identify a contract with customer
Step 2: Identify performance obligations in the contract
Step 3: Calculate the transaction price
Step 4: Allocate transaction price to performance obligations in the contract
Step 5: Recognize revenue as (or as it fulfills) fulfillment of performance obligations.
The application of this standard has no significant impact on the consolidated financial statements of the groupcompany.
In addition, application of IFRS 15 retrospectively according to transitional measures, and adopted the method ofrecognizing the cumulative effect of the start of application as a correction of retained earnings at the start ofapplication. This has no impact on retained earnings at application start date.
The Company Group main business is to manufacture and sell automotive parts, and for sales of these products, it
has been identified as a performance obligation to deliver finished products to customers.
As general rule, when the product is delivered to the customer or the carrier ordered by the customer, control overthe product is transferred to the customer, and it is determined that the performance obligation is satisfied, so revenue
is recognized at that time.
Revenues are measured at the amount obtained by subtracting discounts, rebates, returns, etc. from the value
promised in the contract with the customer.
The value of the promised consideration does not include any significant financial factors, as payment has been
received within one year after delivery to the customer.
(Segment Information)
1. General Information
The reportable segments are components of business activities for which discrete, and such information isregularly reviewed by the Company’s Board of Directors in order to make decisions about the allocation of
resources and assess its performance.
The Company and its consolidated subsidiaries are mainly engaged in the manufacture and sale of automotive
parts. From the aspects of function, technological specification and productive structure, the product lines of theCompany are classified roughly into 2 group, "Manual Transmission Parts" and "Automatic Transmission Parts".
The Company, in corporation with its consolidated subsidiaries, design business strategy and conduct businessfor these 2 product lines inside Japan and overseas. And concerning these 2 product lines, separate financial
information is accessible among the constituent units of the Company and that are subject to periodical
examination, in order to the Board of Directors of the Company to determine the allocation of management
resources. Accordingly, the reportable segments of the Company are composed of 2 segments, "MT (Manualautomotive drivetrain related business)" which manufactures and sells Manual Transmission Parts and "AT(Automatic automotive drivetrain related business)" which manufactures and sells Automatic Transmission Parts.

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EXEDY Corporation (7278) FY2018 Financial Results
2. Information about Revenue and Profit/Loss for each Reportable Segment
FY2017 (April 1, 2017 to March 31, 2018)(Millions of yen)
Reportable Segment

Other(Note 1)

Adjustments
Consolidated(Note 4)

MT

AT

Total

70,840177,776

248,616

34,703-283,319

183

2,591

2,774

7,517

△10,291-

71,023

180,367

251,390

42,220△10,291

283,319

10,05011,97422,024

3,223△1,43923,808

Revenue
External Customers
Intersegments (Note 2)
Total
Segment Profit (Note 3)
Financial Income

175

Finance Expenses

1,497

Equity in Earnings of Affiliates

12

Income before Income Taxes

22,499(Note) 1. Other includes businesses which is not part of any of the 2 reportable segments, and contain industrial
machine drive train operation, clutches for motorcycle operation, transport operation, etc.
2. Amount of intersegments transactions is based on market price.
3. Segment profit is based on operating profit on consolidated statement of income.
4. Elimination of intersegment transactions and corporate expenses are included in adjustments.
FY2018 (April 1, 2018 to March 31, 2019)(Millions of yen)
Reportable Segment

Other(Note 1)

Adjustments
Consolidated(Note 4)

MT

AT

Total

68,481

181,116

249,597

32,801-

282,398

201

2,228

2,429

6,619

△9,048-68,682

183,344

252,026

39,419△9,048282,398

9,282

8,650

17,931

2,776△1,081

19,626

Revenue
External Customers
Intersegments (Note 2)
Total
Segment Profit (Note 3)
Financial Income

407

Finance Expenses

1,020

Equity in Earnings of Affiliates

26

Income before Income Taxes

19,039(Note) 1. Other includes businesses which is not part of any of the 2 reportable segments, and contain industrial
machine drive train operation, clutches for motorcycle operation, transport operation, etc.
2. Amount of intersegments transactions is based on market price.
3. Segment profit is based on operating profit on consolidated statement of income.
4. Elimination of intersegment transactions and corporate expenses are included in adjustments.

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EXEDY Corporation (7278) FY2018 Financial Results(Per Share Information)
Basis for calculating profit per share is as follows. There are no potentially dilutive ordinary shares during previous
consolidated fiscal year and current consolidated fiscal year.
1. Profit Attributable to Owners of Parent(Millions of yen)
FY2017(From: April 1, 2017
To: March 31, 2018)
Profit Attributable to Owners of Parent

15,791FY2018(From: April 1, 2018
To: March 31, 2019)12,967

2. Average Number of Shares Outstanding during the Period(Unit: shares)
FY2017(From: April 1, 2017
To: March 31, 2018)
Average Number of Shares
Outstanding during the Period

48,047,949(Significant Subsequent Events)
Not applicable.

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FY2018(From: April 1, 2018
To: March 31, 2019)48,113,914