EXEDY Corporation (7278) FY2022 2nd Quarter Financial Results
Oct 31, 2022
Tokyo Stock Exchange

FY2022 2nd Quarter Consolidated Financial Results [IFRS](April 1, 2022 through September 30, 2022)(English translation extracted from the original Japanese document)

EXEDY Corporation
7278
https://www.exedy.com
Tetsuya Yoshinaga, Representative Director, President
Hiroshi Toyohara, Representative Director, Senior Executive Managing Officer,
Executive General Manager of Administrative Headquarters
Telephone:+81-72-822-1152
Scheduled date to file quarterly securities report:
November 11, 2022
Scheduled date to commence dividend payments: November 25, 2022
Preparation of supplementary material on quarterly financial results: Yes
Holding of quarterly financial results briefing: None

Company Name:
Code No.:
URL:
Representative:
Contact Person:(Note: All amounts less than one million yen is rounded off)

1. Consolidated Financial Results for the 2nd Quarter of FY2022 (April 1, 2022 to September 30, 2022)(1) Consolidated Operating Results (cumulative)(Percentage of change from previous year)
Revenue

FY2022 Q2FY2021 Q2Profitbefore Tax

Operating Profit

MillionYen%

MillionYen

138,206
123,353

12.0
30.6

Million
Yen

%

3,573
8,662

(58.8)
568.3

Basic Earnings
per Share

6,097
9,034

%

MillionYen%(32.5)
975.6

4,255
6,575

(35.3)-

Diluted Earnings
per Share

Yen
82.39
126.34FY2022 Q2FY2021 Q2Profit Attributable to
Owners of Parent

ProfitMillion
Yen

3,867
5,927

Total
Comprehensive
Income%MillionYen%(34.8)-

13,573
6,351

113.7
-

Yen
-

(2) Consolidated Financial Position
Total Assets

Equity Attributableto Owners of Parent

Total Equity

Ratio for Equity Attributableto Owners of Parent

Million Yen

Million Yen

Million Yen%

342,459
332,785

246,052
236,023

231,722
221,75667.7
66.6

FY2022 Q2FY2021

2. Dividends
Annual Dividends per Share
1 Quarter

2

st

nd

QuarterYen-

FY2021
FY2022
FY2022 (Forecast)

3rd Quarter

Yen
40.00
45.00

Yen
-

Fiscal Year-end
Yen
50.00

-

45.00

Total
Yen
90.00
90.00

(Note) Revisions of dividend forecast from recently announced figures: None

3. FY2022 Consolidated Financial Forecast (April 1, 2022 to March 31, 2023)(Percentage of change from previous year)
Revenue

FY2022

Profitbefore Tax

Operating Profit

Million Yen%

300,000

14.9

Million Yen

9,000

%

Million Yen(50.9)(Note) Revisions of financial forecast from recently announced figures: Yes

11,000

Profit Attributable to
Owners of Parent%(43.5)

Million Yen

7,500

%
(39.9)

Basic Earnings
Per Share
Yen

159.74

EXEDY Corporation (7278) FY2022 2nd Quarter Financial Results※ General Notes(1) Changes in important subsidiaries during the period(Changes in specified subsidiaries due to changes in the scope of consolidation): None
(2) Changes in Accounting Policies, Accounting Estimations① Changes in accounting policies required by IFRS
：None
：None
② Changes in accounting policies except ①③ Changes in accounting estimates：None(Note) For the details, refer to attachment p.11 “2. Quarterly Consolidated Financial Statements
and Principal Notes (5) Notes on Quarterly Consolidated Financial Statements”(3) Number of Outstanding Shares (Ordinary shares)①Number of shares outstanding at the
FY2022 Q248,593,736 shares
FY2021 Q4
48,593,736 shares
end of period (including treasury shares)②Number of treasury shares at the end
FY2022 Q2
1,641,526 shares
FY2021 Q4
1,665,564 sharesof period③Average number of ordinary shares
FY2022 Q246,938,476 shares
FY2021 Q2
46,914,157 shares
outstanding during the period (quarterly total)(Note) The shares held within the ESOP trust accounts (FY2022 Q2: 91,800 shares, FY2021: 100,000 shares) are
included in the number of Treasury Shares at the end of period. Furthermore, the shares held within the ESOP trust
accounts are included in Treasury Shares that are deducted in the calculation of the average number of shares forthe period. (FY2022 Q2: 96,486 shares, FY2021 Q2: 16,800 shares)※ Quarterly financial statements are not subject to quarterly reviews by certified accountants or audit corporations.
※ Regarding the appropriate use of Financial forecasts and other information
The above forecast is based on the information available, or the assumptions which the company thinks reasonable asof the release of this report. Actual results might be different from the above estimates due to subsequent changes incircumstances.

EXEDY Corporation (7278) FY2022 2nd Quarter Financial Results

Table of Contents of Attachments
1. Qualitative Information on Quarterly Financial Results ………………………………………………………….………
(1) Explanation of Operating Results……………...…….…………...……………………………………………….…
(2) Explanation of Financial Position…………………….………………………………………………………………
(3) Explanation of Forecast of Consolidated Financial Results and Other Forward-Looking Information……….
2. Quarterly Consolidated Financial Statements and Principal Notes…………….………………………….……...…...
(1) Quarterly Consolidated Statement of Financial Position ………………………………….….……….……….…
(2) Quarterly Consolidated Statement of Income and Quarterly Consolidated Statement of Comprehensive
Income…………………………………………………………………………………………………………….……
(3) Quarterly Consolidated Statement of Changes in Equity……………………………………………….….….….

2(4) Quarterly Consolidated Statement of Cash Flows……………………………………………….….….………….

10
11
11
11
11
11

(5) Notes on Quarterly Consolidated Financial Statements………………………………………………….…….…
(Notes for Going Concern) ……………………………………………………………………….……………….….
(Change of Accounting Policy) …………………………………………………………………………………….…
(Change in Accounting Estimate) ………………………………………………………………….……….…….…
(Segment Information) ……………………………………………………………………………….…………….…

-1-

2
3
3
4
4
6
8

EXEDY Corporation (7278) FY2022 2nd Quarter Financial Results

1. Qualitative Information on Quarterly Financial Results(1) Explanation of Operating Results
In the second quarter of the current consolidated cumulative period, the revenue increased by the impact of foreignexchange conversion due to the depreciation of the yen, although orders decreased due to the lockdown in China
and production cuts by customers because of the semiconductor shortages in the first quarter. In terms of profits,
Operating profit decreased due to the decline in orders, soaring global raw material prices and supply chain
disruptions. The results for the second quarter of the current consolidated cumulative period was, Revenue ¥138.2
billion (increased by 12.0% from the same period of the previous fiscal year), Operating profit ¥3.6 billion(decreased by 58.8% from the same period of the previous fiscal year), Profit before tax ¥6.1 billion (decreased by
32.5% from the same period of the previous fiscal year), Profit attributable to owners of the parent company was¥3.9 billion (decreased by 34.8% from the same period of the previous fiscal year).

<Segment Information>
The summary by type of reportable segment is as follows.
[MT (Manual Automotive Drivetrain related business)]
Revenue was ¥34.8 billion (increased by 12.4% from the same period of the previous fiscal year). Segment profit
was ¥3.9 billion (increased by 4.4% from the same period of the previous fiscal year), despite soaring raw material
prices which was proceeded with passing on to the selling price.
[AT (Automatic Automotive Drivetrain related business)]
Revenue was ¥88.0 billion (increased by 10.8% from the same period of the previous fiscal year). Although sales
increased by the impact of foreign exchange conversion because of the depreciation of the yen, the segment loss
was ¥0.1 billion (¥4.4 billion profits in the same period of the previous year) due to the lockdown in China andproduction cuts by customers because of the semiconductor shortages and soaring raw material costs.
[Others]
Revenue was ¥15.5 billion (increased by 18.7% from the same period of the previous fiscal year). Segment profit
was ¥0.9 billion (decreased by 9.1% from the same period of the previous fiscal year) due to soaring raw material
prices and other factors, despite an increase in sales.

<Location Information>
The summary by location is as follows.
[Japan]
Revenue was ¥57.6 billion (increased by 0.3% from the same period of the previous fiscal year). Operating profit
was ¥1.7 billion (decreased by 66.4% from the same period of the previous fiscal year) due to a decrease in orders
by the lockdown in China and production cuts by customers because of the semiconductor shortages and soaring
raw material costs.
[Americas]
Revenue was ¥25.0 billion (increased by 23.6% from the same period of the previous fiscal year). Although revenue
increased by the impact of exchange conversion due to the depreciation of the yen, the operating loss was ¥1.3
billion (¥0.2 billion operating loss in the same period of the previous year) due to soaring raw material prices.
[Asia and Oceania]
Revenue was ¥51.4 billion (increased by 22.4% from the same period of the previous fiscal year). Operating profit
was ¥3.2 billion (decreased by 16.2% from the same period of the previous fiscal year) due to the lockdown in
China and the impact of production cuts by customers due to semiconductor shortages, although revenue
increased from the impact of exchange conversion due to the depreciation of the yen.
[Others]
Revenue was ¥4.3 billion (increased by 14.1% from the same period of the previous fiscal year). Operating profit
was ¥0.3 billion (decreased by 23.6% from the same period of the previous fiscal year) due to soaring raw material
prices and other factors, despite an increase in sales by the impact of foreign exchange conversion because of thedepreciation of the yen.

-2-

EXEDY Corporation (7278) FY2022 2nd Quarter Financial Results(2) Explanation of Financial Position
In terms of the assets at the end of this second quarter consolidated accounting period, the total assets were¥342.5 billion (¥332.8 billion at the end of the previous consolidated fiscal year), it increased by ¥9.7 billion (2.9%)
from the end of the previous fiscal year. The main contents are ¥3.0 billion increase in cash and cash equivalents,¥1.5 billion increase in trade and other receivables, and ¥4.0 billion increase in inventories.
Total liabilities were ¥96.4 billion (¥96.8 billion at the end of the previous consolidated fiscal year), it decreased by¥0.4 billion (0.4%) from the end of the previous fiscal year. The main contents are ¥2.6 billion decrease in income
taxes payable, ¥0.4 billion decrease in corporate bonds and borrowings due to the repayment of borrowings, and¥2.1 billion increase in trade and other payables.
Total equity was ¥246.1 billion (¥236.0 billion in the previous consolidated fiscal year), it increased by ¥10.0 billion(4.2%) from the end of the previous fiscal year. The main contents were ¥8.1 billion increase in other componentsof equity due to an increase in the conversion difference of foreign operation due to the depreciation of the yen,and ¥1.9 billion increase in retained earnings (¥3.9 billion increase due to the quarterly profit attributable to ownersof the parent company, ¥2.3 billion decrease due to the appropriation of surplus (dividend), and ¥0.3 billion transferof other components of equity to retained earnings due to sale of investment securities).
(3) Explanation of Forecast of Consolidated Financial Results and Other Forward-Looking Information
As of today, we have revised the consolidated financial forecast for the fiscal year ending March 31, 2023, which
was announced on July 28, 2022. For the details, please refer to the "Notice of Revision of Consolidated Financial
Forecast" announced today.
This forecast is based on the premise that there will be no large-scale suspension of business activities due to theworldwide spread of COVID-19 infections or sharp exchange rate fluctuations. If these premises are expected,
this forecast may be revised.
The exchange rate is assumed to be ¥140 per US dollar.

-3-

EXEDY Corporation (7278) FY2022 2nd Quarter Financial Results

2. Quarterly Consolidated Financial Statements and Principal Notes(1) Quarterly Consolidated Statement of Financial Position

As of March 31, 2022

As of September 30, 2022

Millions of yen

Millions of yen

AssetsCurrent assets
Cash and cash equivalents

55,40758,416

Trade and other receivables

53,82455,276

Other financial assets

1,974

2,180

Inventories

41,72645,770

Other current assets

2,262

2,985

Total current assets

155,192

164,627

Property, plant and equipment

162,964

163,244

Goodwill and intangible assets

2,802

2,670

Non-current assets

Investments accounted for using equity method

195

236

3,305

2,772

Other financial assets

45

40

Deferred tax assets

6,022

6,558

Retirement benefit asset

1,233

1,238

Other non-current assets

1,027

1,072

Total non-current assets

177,593

177,832

332,785

342,459

Investments in Equity Instruments

Total assets-4-

EXEDY Corporation (7278) FY2022 2nd Quarter Financial Results
As of March 31, 2022

As of September 30, 2022

Millions of yen

Millions of yen

Liabilities and equity
Liabilities
Current liabilities
Bonds and borrowings

10,381

11,221

Trade and other payables

36,09338,232Other financial liabilities

594

559

Income taxes payable

4,005

1,407

Employee benefits accruals

1,954

2,016

Provisions

2,240

2,280

Other current liabilities

3,636

3,738

Total current liabilities

58,90359,453

Bonds and borrowings

27,533

26,321Other financial liabilities

879

979

Retirement benefit liability

6,724

6,798

Deferred tax liabilities

1,245

1,116

Other non-current liabilities

1,479

1,740

Total non-current liabilities

37,85936,95496,762

96,407

Share capital

8,284

8,284

Capital surplus

7,555

7,528

Treasury shares(3,768)(3,713)

Other components of equity

7,524

15,613Retained earnings

202,160

204,011

Total equity attributable to owners of parent

221,756

231,722

Non-controlling interests

14,267

14,330Total equity

236,023

246,052

332,785

342,459

Non-current liabilities

Total liabilities
EquityTotal liabilities and equity-5-

EXEDY Corporation (7278) FY2022 2nd Quarter Financial Results(2) Quarterly Consolidated Statement of Income and Quarterly Consolidated Statement ofComprehensive Income (Quarterly Consolidated Statement of Income)
FY2021 2nd Quarter

FY2022 2nd Quarter(April 1, 2021 through(April 1, 2022 throughSeptember 30, 2021)

September 30, 2022)

Millions of yen

Millions of yen

Revenue

123,353

138,206

Cost of sales

100,096

118,147

Gross profit

23,257

20,059Selling, general and administrative expenses

14,841

16,372Other income

576

545

Other expenses

329

659

Operating profit

8,662

3,573

Finance income

829

2,958

Finance costs

469

477

Share of profit of investments accounted for using

12

43

Profit before tax

9,034

6,097

Income tax expense

2,459

1,842

Profit

6,575

4,255

5,927

3,867

649

388

6,575

4,255

126.3482.39

equity method

Profit attributable to
Owners of parent
Non-controlling interests
ProfitEarnings per share
Basic and diluted earnings per share-6-

EXEDY Corporation (7278) FY2022 2nd Quarter Financial Results(Quarterly Consolidated Statement of Comprehensive Income)

FY2021 2nd Quarter

FY2022 2nd Quarter(April 1, 2021 throughSeptember 30, 2021)(April 1, 2022 throughSeptember 30, 2022)

Millions of yen

Millions of yen

Profit

6,575

4,255

114

(70)

114

(70)

(338)

9,382

0

6

(338)

9,388

(224)

9,318

6,351

13,573

6,117

12,285

Non-controlling interests

234

1,288

Comprehensive income

6,351

13,573

Other comprehensive income
Items that will not be reclassified to profit or loss
Net change in fair value of equity instruments
designated as measured at fair value throughother comprehensive income
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 ofinvestments accounted for using equity method
Total of items that may be reclassified to profit
or loss
Total other comprehensive income
Comprehensive income
Comprehensive income attributable to
Owners of parent-7-

EXEDY Corporation (7278) FY2022 2nd Quarter Financial Results(3) Quarterly Consolidated Statement of Changes in Equity
Previous second quarter consolidated cumulative period(April 1, 2021 through September 30, 2021)
Equity attributable to owners of parent
Other components of equity
Net change
in fair valueof equity
Exchange
instruments
differences
Share
CapitalTreasury
designatedoncapitalsurplussharesas measured
Totaltranslation
at fair valueof foreign
throughoperations
othercomprehensi
ve incomeMillions of yen Millions of yen Millions of yen Millions of yen Millions of yen Millions of yen

Balance as of April 1, 2021
Profit for the period
Other comprehensive income
Comprehensive income
Purchase of treasury shares
Disposal of treasury shares
Dividends of surplus
Share-based remunerationtransactions
Transfer to retained earnings
Total transactions with owners
Total changes in equity
Balance as of Sept. 30, 2021

8,284
-

7,571
(15)
-

(3,822)(0)53-(1,271)
76
76
-

287
114
114
-

(984)
190
190
-

-

(14)

-

-

-

-

8,284

(29)
(29)
7,542

52
52
(3,770)76(1,195)

114
401

190
(794)

Equity attributable toowners of parent
Retained
Total
earnings

Noncontrollinginterests

Total

Millions of yen Millions of yen Millions of yen Millions of yen

Balance as of April 1, 2021
Profit for the period
Other comprehensive income
Comprehensive income
Purchase of treasury shares
Disposal of treasury shares
Dividends of surplus
Share-based remunerationtransactions
Transfer to retained earnings
Total transactions with owners
Total changes in equity
Balance as of Sept. 30, 2021

192,878
5,927
5,927(1,407)

203,927
5,927
190
6,117
(0)
38
(1,407)

12,803
649
(414)
234
(699)

216,730
6,575
(224)
6,351
(0)
38
(2,106)

-

(14)

-

(14)

(1,407)
4,520
197,398(1,384)
4,733
208,660

(699)
(464)
12,339(2,083)
4,269
220,999-8-

EXEDY Corporation (7278) FY2022 2nd Quarter Financial Results

Current second quarter consolidated cumulative period(April 1, 2022 through September 30, 2022)
Equity attributable to owners of parent
Other components of equity
Net change
in fair valueof equity
Exchange
instruments
differences
Share
CapitalTreasury
designatedoncapitalsurplussharesas measured
Totaltranslation
at fair valueof foreign
throughoperations
othercomprehensi
ve incomeMillions of yen Millions of yen Millions of yen Millions of yen Millions of yen Millions of yen

Balance as of April 1, 2022
Profit for the period
Other comprehensive income
Comprehensive income
Purchase of treasury shares
Disposal of treasury shares
Dividends of surplus
Share-based remunerationtransactions
Transfer to retained earnings
Total transactions with owners
Total changes in equity
Balance as of Sept. 30, 2022

8,284

7,555

(3,768)

7,274

250

7,524

-

(13)
-

(0)
55
-

8,488
8,488
-

(70)
(70)
-

8,418
8,418
-

-

(14)

-

-

-

-

8,284

(27)
(27)
7,528

54
54
(3,713)

8,488
15,761

(329)
(329)
(399)
(149)

(329)
(329)
8,089
15,613Equity attributable toowners of parent
Retained
Total
earnings

Noncontrollinginterests

Total

Millions of yen Millions of yen Millions of yen Millions of yen

Balance as of April 1, 2022

202,160

221,756

14,267

236,023

Profit for the period
Other comprehensive income
Comprehensive income
Purchase of treasury shares
Disposal of treasury shares
Dividends of surplus
Share-based remunerationtransactions
Transfer to retained earnings
Total transactions with owners
Total changes in equity
Balance as of Sept. 30, 2022

3,867
3,867
(2,346)

3,867
8,418
12,285(0)41(2,346)

388
900
1,288
(1,225)

4,255
9,318
13,573(0)
41(3,571)

-

(14)

-

(14)

329
(2,017)1,850
204,011(2,319)9,966
231,722(1,225)63
14,330(3,544)
10,029246,052-9-

EXEDY Corporation (7278) FY2022 2nd Quarter Financial Results(4) Quarterly Consolidated Statement of Cash FlowsFY2021 2nd Quarter

FY2022 2nd Quarter(April 1, 2021 throughSeptember 30, 2021)(April 1, 2022 throughSeptember 30, 2022)

Millions of yen

Millions of yen

Cash flows from operating activities
Profit before tax
Depreciation and amortization
Interest and dividend income
Interest expenses
Share of loss (profit) of investments accounted forusing equity method
Foreign exchange loss (gain)
Decrease (increase) in inventories
Decrease (increase) in trade and other receivables
Increase (decrease) in trade and other payables
Other
SubtotalInterest and dividends received
Interest paid
Income taxes paid
Net cash provided by (used in) operating activities
Cash flows from investing activities
Payments into time deposits
Proceeds from withdrawal of time deposits
Purchase of property, plant and equipment
Proceeds from sale of property, plant and equipment
Purchase of intangible assets
Proceeds from sale of investment securities
Other
Net cash provided by (used in) investing activities
Cash flows from financing activities
Proceeds from short-term borrowings
Repayments of short-term borrowings
Proceeds from long-term borrowings
Repayments of long-term borrowings
Dividends paid
Other
Net cash provided by (used in) financing activities
Effect of exchange rate changes on cash and cash
equivalents
Net increase (decrease) in cash and cash equivalents
Cash and cash equivalents at beginning of period
Cash and cash equivalents- 10 -

9,034
9,707
(145)
375

6,097
9,985
(135)
379

(12)

(43)

(14)
(5,207)
3,579
(520)
2,043
18,840164(385)(1,805)
16,813

(1)
(826)
1,225
(19)
(331)
16,332160(380)(4,923)
11,189(200)
347(7,330)
46
(438)
5
(69)
(7,638)(1,196)
1,295(4,405)
29
(258)
944
(522)
(4,114)

13,091(13,377)
10,339(13,577)(1,407)(895)(5,826)

6,467(3,074)425(5,321)(2,350)(1,485)(5,337)

(416)

1,272

2,932
51,56754,5003,009
55,40758,416

EXEDY Corporation (7278) FY2022 2nd Quarter Financial Results(5) Notes on Quarterly Consolidated Financial Statements(Notes for Going Concern)
Not applicable(Change in Accounting Policy)
Not applicable(Change in Accounting Estimate)
Not applicable(Segment Information)(1) Overview of Reportable Segments
The reportable segments are components of business activities for which discrete, and such information isregularly reviewed by the Company’s Board of Directors 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 ofautomotive parts. From the aspects of function, technological specification and productive structure, theproduct lines of the Company are classified roughly into 2 group, "Manual Transmission Parts" and "AutomaticTransmission Parts". The Company, in corporation with its consolidated subsidiaries, design business strategy
and conduct business for these 2 product lines inside Japan and overseas. Accordingly, the reportablesegments of the Company are composed of 2 segments, "MT (Manual Automotive Drivetrain related
business)" which manufactures and sells Manual Transmission Parts and "AT (Automatic Automotive
Drivetrain related business)" which manufactures and sells Automatic Transmission Parts.
(2) Information of Revenue, Profit and Loss by Segment and The Amount of Other Important Items.
Previous second quarter consolidated cumulative period (April 1, 2021 to September 30, 2021)(Million Yen)
Reportable Segment

Other(Note 1)

Adjustments
Consolidated(Note 4)

MT

AT

Total

30,92579,408110,333

13,020-123,353

141

1,133

1,274

3,351

(4,625)-31,06680,541

111,607

16,371(4,625)

123,353

3,752

4,385

8,137

1,019

(494)

8,662

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

829

Finance Costs

469

Share of profit of investments accounted for using equity method

12

Profit before Tax

9,034(Note) 1. Other includes businesses which is not part of any of the 2 reportable segments, and contain
industrial machine drivetrain 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 quarterly consolidated income statement.
4. Elimination of intersegment transactions and corporate expenses are included in adjustments.

- 11 -

EXEDY Corporation (7278) FY2022 2nd Quarter Financial Results

Current second quarter consolidated cumulative period (April 1, 2022 to September 30, 2022)(Million Yen)
Reportable Segment

Other(Note 1)

Adjustments
Consolidated(Note 4)

MT

AT

Total

34,77487,978

122,752

15,454-

138,206

156

313

469

2,676

(3,145)-

Total

34,93088,291

123,221

18,129(3,145)

138,206

Segment Profit (Loss) (Note 3)

3,916

(63)

3,853

926

(1,207)

3,573

Revenue
External Customers
Intersegments (Note 2)

Finance Income

2,958

Finance Costs

477

Share of profit of investments accounted for using equity method

43

Profit before Tax

6,097(Note) 1. Other includes businesses which is not part of any of the 2 reportable segments, and contain
industrial machine drivetrain operation, clutches for motorcycle operation, transport operation, etc.
2. Amount of intersegments transactions is based on market price.
3. Segment profit (loss) is based on operating profit on quarterly consolidated income statement.
4. Elimination of intersegment transactions and corporate expenses are included in adjustments.

- 12 -