EXEDY Corporation (7278) FY2023 1st Quarter Financial Results
July 31, 2023

FY2023 1st Quarter Consolidated Financial Results〔IFRS〕(April 1, 2023 through June 30, 2023)(English translation extracted from the original Japanese document)
EXEDY Corporation
Listing:Tokyo Stock Exchange
7278
URL: 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: August 10, 2023
Scheduled Date to commence dividend payments: None
Preparation of supplementary material on quarterly Financial Results : None
Holding of quarterly financial results briefing: None
(Note: All amounts less than one million yen is rounded off)
Company Name:
Code No.:
Representative:
Contact Person:

1. Consolidated Financial Results for the 1st Quarter of FY2023 (April 1, 2023 to June 30, 2023)(1) Consolidated Operating Results (cumulative)(Percentage of change from previous year)
Revenue
MillionYen

FY2023 Q1
FY2022 Q1MillionYen%

73,36764,447

Profitbefore Tax

Operating Profit

13.8
3.8

2,414
1,034

Basic Earnings
per Share

Million
Yen

%
133.5
(75.0)

%

3,565
2,568

38.8
(42.5)

Million
Yen

%

2,877
1,775

62.1
(44.4)

Million
Yen

%

2,598
1,532

69.6
(44.8)

Total
Comprehensive
IncomeMillion
Yen

%

8,639
9,209

(6.2)
201.9

Diluted Earnings
per Share

Yen
55.34
32.65

FY2023 Q1
FY2022 Q1Profit Attributable to
Owners of Parent

ProfitYen-(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%

338,685
331,875

245,474
239,901

231,174
225,56368.3
68.0

FY2023 Q1
FY2022

2. Dividends
Annual Dividends per Share
1st Quarter

2nd Quarter
Yen-

FY2022
FY2023
FY2023 (Forecast)

Yen
45.00

3rd Quarter
Yen-

Fiscal Year-end
Yen
45.00

60.00

-

60.00

Total
Yen
90.00
120.00(Note) Revisions of dividend forecast from recently announced figures: None

3. FY2023 Consolidated Financial Forecast (April 1, 2023 to March 31, 2024)(Percentage of change from previous year)

Revenuemillions of yen

Q2 (YTD)
FY2023150,000
310,000

Operating Profit
%
8.5
8.5

Income before
Income Taxes

millions of yen%

millions of yen

6,000
13,000

67.9
48.4

5,500
12,000%

Profit Attributable to
Owners of Parent
millions of yen

(9.8)
21.0

3,000
7,000

%
(22.4)
52.5

Basic Earnings
Per Share
yen

63.89
149.08(Note) Revisions of financial forecast from recently announced figures: None

N o t e : T hi s d oc u m en t h a s b e e n t r an s l at ed f ro m t h e J a p an es e or i g i n al f o r re f er e nc e p u rp o s e s o nl y. I n t h e e v e n t o f an ydi s c r e p an c y b et w e e n t h i s t ra ns l at e d do c um e nt a n d t h e J ap a ne s e o ri g i n al , t h e o ri gi na l s h al l p r e v ai l .

EXEDY Corporation (7278) FY2023 1st 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
② Changes in accounting policies except ①：None③ Changes in accounting estimates：None(Note) For the details, refer to attachment p.10 “2. Quarterly Consolidated Financial Statements
and Principal Notes (4) Notes on Quarterly Consolidated Financial Statements”(3) Number of Outstanding Shares (Ordinary shares)①Number of shares outstanding at the
FY2023 Q1
end of period (including treasury shares)②Number of treasury shares at the end
FY2023 Q1of period③Average number of ordinary shares
FY2023 Q1outstanding during the period

48,593,736 shares

FY2022 Q4

48,593,736 shares

1,639,580 shares

FY2022 Q4

1,639,537 shares

46,954,188 shares

FY2022 Q1

46,928,166 shares(Note) The shares held within the ESOP trust accounts (FY2023 Q1 : 89,800 shares, FY2022Q4: 89,800 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. (FY2023 Q1 : 89,800 shares, FY2022 Q1 : 100,000 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) FY2023 1st 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...…………………………………………………………………………………

22(3) Explanation of Forecast of Consolidated Financial Results and Other Forward-Looking Information………
2. Quarterly Consolidated Financial Statements and Principal Notes…………………………………………………...

3
34(1) Quarterly Consolidated Statement of Financial Position…………………………………………………………
(2) Quarterly Consolidated Statement of Income/Consolidated Statement of Comprehensive Income …………

46(3) Quarterly Consolidated Statement of Changes in Equity……………………………………………………….…
(4) Notes on Quarterly Consolidated Financial Statements…………………………………………………………

8
10(Notes for Going Concern) …………………………………………………………………….………….………
(Change of Accounting Policy) ……………………………………………………………………………………

10
10(Change in Accounting Estimate) ………………………………………………………………………………….
(Segment Information) ……………………………………………………………………………………………

10
10

1

EXEDY Corporation (7278) FY2023 1st Quarter Financial Results

1. Qualitative Information on Quarterly Financial Results.
(1) Explanation of Operating Results

In the first quarter of the current consolidated cumulative period, the revenue increased due to the recovery oforders mainly in the AT (Automatic Automotive Drivetrain related business) segment, as well as passing on raw
material price increase to the selling price, and the impact of foreign exchange conversion due to the depreciationof the yen. In terms of profits, Operating profit increased due to increase in sales, despite soaring raw material andenergy costs.
The results for for the first quarter of the current consolidated cumulative period were, Revenue ¥73.4 billion(increased by 13.8% from the same period of the previous fiscal year), Operating profit ¥2.4 billion (increased by
133.5% from the same period of the previous fiscal year), Profit before tax ¥3.6 billion (increased by 38.8% fromthe same period of the previous fiscal year), Profit attributable to owners of the parent company was ¥2.6 billion(increased by 69.6% 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 ¥17.8 billion (increased by 5.7% from the same period of the previous fiscal year). Segment profit
was ¥1.5 billion (decreased by 19.6% from the same period of the previous fiscal year),due to decrease in orderand soaring raw material and energy costs despite the sales increase by the impact of foreign exchange conversion
due to the depreciation of the yen.
[AT (Automatic Automotive Drivetrain related business)]
Revenue was ¥47.0 billion (increased by 16.0% from the same period of the previous fiscal year). This was due tothe recovery of orders, as well as passing on raw material price increase to the selling price, and the impact offoreign exchange conversion due to the depreciation of the yen. The segment profit was ¥0.6 billion (¥0.9 billion
operating loss in the same period of the previous fiscal year) due to increase in sales, despite soaring raw material
and energy costs.
[TS (Industrial machine Drivetrain operations)]
Revenue was ¥3.9 billion (increased by 19.9% from the same period of the previous fiscal year). Segment profit
was ¥0.6 billion (increased by 140.1% from the same period of the previous fiscal year), due to an increase in sales
and cost reduction efforts.
[Others]
Revenue was ¥4.6 billion (increased by 21.1% from the same period of the previous fiscal year). Segment profit
was ¥0.2 billion (increased by 129.7% from the same period of the previous fiscal year) due to an increased salesof motorcycle clutches in the ASEAN region and cost reduction efforts.

<Location Information>
The summary by location is as follows.
[Japan]
Revenue was ¥30.8 billion (increased by 7.7% from the same period of the previous fiscal year). Operating profit
was ¥1.9 billion (increased by 249.6% from the same period of the previous fiscal year) due to increase in sales bypassing on raw material price increase to the selling price.
[Americas]
Revenue was ¥13.7 billion (increased by 14.0% 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 ¥0.3
billion (¥0.5 billion operating loss in the same period of the previous year) due to soaring raw material and energy
costs.

2

EXEDY Corporation (7278) FY2023 1st Quarter Financial Results[Asia and Oceania]
Revenue was ¥26.3 billion (increased by 20.9% from the same period of the previous fiscal year). This was due tothe recovery of orders, as well as passing on raw material price increase to the selling price, and the impact offoreign exchange conversion due to the depreciation of the yen. Operating profit was ¥1.4 billion (increased by
130.9% from the same period of the previous fiscal year) due to increase in sales.
[Others]
Revenue was ¥2.6 billion (increased by 23.2% from the same period of the previous fiscal year). Operating profit
was ¥29 million (decreased by 85.0% from the same period of the previous fiscal year) due to soaring raw material
prices, despite an increase in sales.
(2) Explanation of Financial Position.
In terms of the assets at the end of this first quarter consolidated accounting period, the total assets were ¥338.7
billion (¥331.9 billion at the end of the previous consolidated fiscal year), it increased by ¥6.8 billion (2.1%) fromthe end of the previous fiscal year. The main contents are ¥3.0 billion increase in cash and cash equivalents, ¥1.0
billion increase in trade and other receivables, ¥1.7 billion increase in inventories, and ¥0.5 billion increase ininvestments in Equity Instruments.
Total liabilities were ¥93.2 billion (¥92.0 billion at the end of the previous consolidated fiscal year), it increased by¥1.2 billion (1.3%) from the end of the previous fiscal year. The main contents are ¥0.6 billion increase in corporate
bonds and borrowings, and ¥0.6 billion increase in trade and other payables.
Total equity was ¥245.5 billion (¥239.9 billion in the previous consolidated fiscal year), it increased by ¥5.6 billion(2.3%) from the end of the previous fiscal year. The main contents were ¥5.1 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¥0.5 billion increase in retained earnings (¥2.6 billion increase due to the profit attributable to owners of the parent
company, and ¥2.1 billion decrease due to the appropriation of surplus (dividend)).
(3) Explanation of Forecast of Consolidated Financial Results and Other Forward-Looking Information
There is no change in the consolidated financial forecast for the fiscal year ending March 31, 2024, which wasannounced on April 28, 2023.

3

EXEDY Corporation (7278) FY2023 1st Quarter Financial Results

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

As of March 31, 2023

As of June 30, 2023

Millions of yen

Millions of yen

AssetsCurrent assets
Cash and cash equivalents

59,53862,560Trade and other receivables

53,92954,880

Other financial assets

2,155

2,245

Inventories

44,19845,930

Other current assets

3,634

3,261

Total current assets

163,454

168,876

Property, plant and equipment

154,632

154,956

Goodwill and intangible assets

2,939

2,835

272

584

1,810

2,305

Other financial assets

96

94

Deferred tax assets

6,366

6,723

Retirement benefit asset

1,206

1,210

Other non-current assets

1,100

1,101

Total non-current assets

168,421

169,809331,875

338,685

Non-current assets

Investments accounted for using equity method
Investments in Equity Instruments

Total assets

4

EXEDY Corporation (7278) FY2023 1st Quarter Financial Results
As of March 31, 2023

As of June 30, 2023

Millions of yen

Millions of yen

Liabilities and equity
Liabilities
Current liabilities
Bonds and borrowings

8,228

8,894

Trade and other payables

37,78938,434

Other financial liabilities

545

617

Income taxes payable

1,664

1,082

Employee benefits accruals

2,336

2,383

Provisions

2,186

2,165

Other current liabilities

3,379

3,592

Total current liabilities

56,12757,168

Bonds and borrowings

25,42325,327

Other financial liabilities

1,076

1,090

Retirement benefit liability

6,609

6,638

697

704

Other non-current liabilities

2,042

2,284

Total non-current liabilities

35,84836,043

91,975

93,211

Share capital

8,284

8,284

Capital surplus

7,541

7,543

Treasury shares(3,709)(3,709)Other components of equity

10,63915,763Retained earnings

202,808203,293

Total equity attributable to owners of parent

225,563

231,174

Non-controlling interests

14,33814,300Total equity

239,901

245,474

331,875

338,685

Non-current liabilities

Deferred tax liabilities

Total liabilities
EquityTotal liabilities and equity

5

EXEDY Corporation (7278) FY2023 1st Quarter Financial Results(2) Quarterly Consolidated Statement of Income and Consolidated Statement of Comprehensive Income(Quarterly Consolidated Statement of Income)

FY2022 1st Quarter

FY2023 1st Quarter(April 1, 2022 through(April 1, 2023 throughJune 30, 2022)

June 30, 2023)

Millions of yen

Millions of yen

Revenue

64,44773,367

Cost of sales

55,506

62,619Gross profit

8,941

10,748Selling, general and administrative expenses

8,127

8,398

Other income

316

266

Other expenses

96

203

Operating profit

1,034

2,414

Finance income

1,734

1,383

Finance costs

224

251

Share of profit of investments accounted for using

25

19

2,568

3,565

793

688

1,775

2,877

1,532

2,598

243

279

1,775

2,877

32.65

55.34

equity method
Profit before tax
Income tax expense
ProfitProfit attributable to
Owners of parent
Non-controlling interests
ProfitEarnings per share
Basic and diluted earnings per share

6

EXEDY Corporation (7278) FY2023 1st Quarter Financial Results(Quarterly Consolidated Statement of Comprehensive Income)
FY2022 1st Quarter

FY2023 1st Quarter(April 1, 2022 through(April 1, 2023 throughJune 30, 2022)

June 30, 2023)

Millions of yen

Millions of yen

Profit

1,775

2,877

(47)

125

(47)

125

7,477

5,631

4

6

7,481

5,637

Total other comprehensive income

7,434

5,762

Comprehensive income

9,209

8,639

Owners of parent

8,131

7,722

Non-controlling interests

1,078

917

Comprehensive income

9,209

8,639

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

Comprehensive income attributable to7

EXEDY Corporation (7278) FY2023 1st Quarter Financial Results(3) Quarterly Consolidated Statement of Changes in Equity
Previous first quarter consolidated cumulative period(April 1, 2022 through June 30, 2022)
Equity attributable to owners of parent
Other components of equity

Exchangedifferencesontranslation offoreign
operations

Net change infair value ofequityinstruments
designated asmeasured atfair value
through othercomprehensiv
e income

Total

Share capital

Capital surplus

Treasury shares

Millions of yen

Millions of yen

Millions of yen

Millions of yen

Millions of yen

Millions of yen

8,284

7,555

(3,768)

7,274

250

7,524

Profit for the period

-

-

-

-

-

-

Other comprehensive income

-

-

-

6,646

(47)

6,599

Balance as of April 1, 2022

Comprehensive income

-

-

-

6,646

(47)

6,599

Purchase of treasury shares

-

-

(0)

-

-

-

Disposal of treasury shares

-

-

-

-

-

-

Dividends of surplus

-

-

-

-

-

-

Share-based remuneration transactions

-

7

-

-

-

-

Transfer to retained earnings

-

-

-

-

(329)

(329)

Total transactions with owners

-

7

(0)

-

(329)

(329)

Total changes in equity

-

7

(0)

6,646

(377)

6,269

Balance as of June 30, 2022

8,284

7,562

(3,768)13,920(127)

13,793Equity attributable to owners ofparentRetained
Total
earnings

Non-controllinginterests

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

1,532

1,532

243

1,775

-

6,599

835

7,434

1,532

8,131

1,078

9,209

Purchase of treasury shares

-

(0)

-

(0)

Disposal of treasury shares

-

-

-

-

(2,346)(2,346)(1,060)(3,406)
7

Other comprehensive income
Comprehensive income

Dividends of surplus
Share-based remuneration transactions
Transfer to retained earnings
Total transactions with owners

-

7

-

329

-

-

-

(2,017)(2,340)(1,060)(3,400)Total changes in equity

(485)

5,791

18

5,809

Balance as of June 30, 2022

201,676

227,547

14,285

241,832

8

EXEDY Corporation (7278) FY2023 1st Quarter Financial Results

Current first quarter consolidated cumulative period(April 1, 2023 through June 30, 2023)
Equity attributable to owners of parent
Other components of equity

Exchangedifferencesontranslation offoreign
operations

Net change infair value ofequityinstruments
designated asmeasured atfair value
through othercomprehensiv
e income

Total

Share capital

Capital surplus

Treasury shares

Millions of yen

Millions of yen

Millions of yen

Millions of yen

Millions of yen

Millions of yen

8,284

7,541

(3,709)11,454(815)

10,639Profit for the period

-

-

-

-

-

-

Other comprehensive income

-

-

-

4,999

125

5,124

Balance as of April 1, 2023

Comprehensive income

-

-

-

4,999

125

5,124

Purchase of treasury shares

-

-

(0)

-

-

-

Disposal of treasury shares

-

-

-

-

-

-

Dividends of surplus

-

-

-

-

-

-

Share-based remuneration transactions

-

2

-

-

-

-

Transfer to retained earnings

-

-

-

-

-

-

Total transactions with owners

-

2

(0)

-

-

-

Total changes in equity

-

2

(0)

4,999

125

5,124

Balance as of June 30, 2023

8,284

7,543

(3,709)16,453(690)

15,763Equity attributable to owners ofparentRetained
Total
earnings

Non-controllinginterests

Total

Millions of yen

Millions of yen

Millions of yen

Millions of yen

Balance as of April 1, 2023

202,808

225,563

14,338239,901

Profit for the period

2,598

2,598

279

2,877

-

5,124

638

5,762

2,598

7,722

917

8,639

Purchase of treasury shares

-

(0)

-

(0)

Disposal of treasury shares

-

-

-

-

(2,113)(2,113)(955)(3,068)

Share-based remuneration transactions

-

2

-

2

Transfer to retained earnings

-

-

-

-

(2,113)(2,111)(955)(3,066)

Other comprehensive income
Comprehensive income

Dividends of surplus

Total transactions with owners
Total changes in equity

485

5,611

(38)

5,574

Balance as of June 30, 2023

203,293

231,174

14,300245,4749

EXEDY Corporation (7278) FY2023 1st Quarter Financial Results(4) 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 3 group, "Manual Transmission Parts", "AutomaticTransmission Parts" and “Industrial machine Drivetrain Parts”. The Company, in corporation with its
consolidated subsidiaries, design business strategy and conduct business for these 3 product lines inside
Japan and overseas. Accordingly, the reportable segments of the Company are composed of 3 segments, "MT(Manual Automotive Drivetrain related business)" which manufactures and sells Manual Transmission Parts,"AT (Automatic Automotive Drivetrain related business)" which manufactures and sells Automatic Transmission
Parts and “TS (Industrial machine Drivetrain operations)” which manufactures and sells parts for construction
machinery and industrial vehicles
The segment information for the first quarter of the previous fiscal year is disclosed based on the reporting
segment classification for the first quarter of the current fiscal year.
(2) Information of Revenue, Profit and Loss by Segment and The Amount of Other Important Items.
Previous first quarter consolidated cumulative period (April 1, 2022 to June 30, 2022)
Reportable Segment

Other(Note 1)

(Million Yen)
Adjustments
Consolidated(Note 4)

MT

AT

TS

Total

16,79740,541

3,272

60,6093,838-

64,447

81

174

15

270

1,291

(1,561)-

Total

16,87840,7153,286

60,8795,129(1,561)64,447

Segment Profit (Loss) (Note 3)

1,865

(874)

267

1,257

68

(292)

1,034

Revenue
External Customers
Intersegments (Note 2)

Finance Income

1,734

Finance Costs

224

Share of profit of investments accounted for using equity method

25

Profit before Tax

2,568(Note) 1. Other includes businesses which is not part of any of the reportable segments, and contain 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.
10

EXEDY Corporation (7278) FY2023 1st Quarter Financial Results
Current first quarter consolidated cumulative period (April 1, 2023 to June 30, 2023)
Reportable Segment

Other(Note 1)

(Million Yen)
Adjustments
Consolidated(Note 4)

MT

AT

TS

Total

17,75347,045

3,922

68,7204,648-

73,367

69

127

16

212

1,281

(1,493)-

17,822

47,172

3,938

68,932

5,929(1,493)73,367

1,500

637

640

2,777

156

(520)

2,414

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

1,383

Finance Costs

251

Share of profit of investments accounted for using equity method

19

Profit before Tax

3,565(Note) 1. Other includes businesses which is not part of any of the reportable segments, and contain 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