Financial Results
2018年5月14日
for the Six
Months Ended株式会社 加藤製作所
September 30, 2022
November 10, 2022

KATO WORKS CO., LTD.

Table of Contents
進化の奥の更なる真価へ

I． Summary of Consolidated Financial Results for the Six Months
Ended September 30, 2022

II.

1.

Summary of consolidated financial results

P. 2

2.

Changes in consolidated financial results

P. 3 - P. 4

3.

Consolidated statement of income

P. 5

4.

Analysis of changes in operating profit (loss)

P. 6

5.

Consolidated balance sheet

P. 7

6.

Consolidated statement of cash flows

P. 8

7.

Changes in consolidated net sales by principal item

P. 9 - P. 1 2

8.

Changes in consolidated net sales by destination

P. 1 3Full-Year Consolidated Financial Results Forecast
for Fiscal Year Ending March 31, 2023
1.

Full-year consolidated financial results forecast for fiscal year
ending March 31, 2023

P. 1 41

Summary of consolidated financial results
進化の奥の更なる真価へ

 While net sales for the six months ended September 30, 2022 were 26,171 million yen, a decrease of
15.5% year on year, the Company recorded a significant improvement in profits, returning to
profitability.
(Unit: millions of yen)

Results for the six months ended Results for the six months ended
September 30, 2021
September 30, 2022

YOY
comparison[percentage change]

Net
sales

30,95926,171(4,787)

Operatingprofit(loss)(1,033)301+1,334

Ordinary
profit(loss)(932)

999+1,932

Profit (loss)
attributableto ownersof parent

(988)

953

+1,941[-15.5%]2

Changes in consolidated financial results
進化の奥の更なる真価へ(Unit: millions of yen)

Operating profit (loss)/
Operating profit (loss) margin

Net sales
2,000

2.0%

1.2%

1,500

50,0000.0%

45,0001,000

40,000500

35,00030,000(2.0)%

30,95926,171

26,6740(3.3)%

301

25,000(4.0)%(500)
20,000(1,000)15,00010,000(5.7)%(6.0)%(1,033)(1,500)5,000(1,522)(2,000)0
Six months ended Six months ended Six months ended(8.0)%
Six months ended Six months ended Six months ended

September 30,

September 30,

September 30,

September 30,

September 30,

September 30,

2020

2021

2022

2020

2021

2022

3

Changes in consolidated financial results
進化の奥の更なる真価へ(Unit: millions of yen)

Profit (loss) attributableto owners of parent

Ordinary profit (loss)

2,000

2,000

1,500

1,500

999

1,000

500

500

0

0

(500)

(500)

(1,000)

953

1,000

(1,000)

(932)

(988)

(1,126)(1,500)(1,500)(2,000)(1,310)(2,000)Six months ended Six months ended Six months ended

Six months ended Six months ended Six months ended

September 30,

September 30,

September 30,

September 30,

September 30,

September 30,

2020

2021

2022

2020

2021

2022

4

Consolidated statement of income
進化の奥の更なる真価へ(Unit: millions of yen)
For the six months ended
September 30, 2021
AmountPercentage

For the six months ended
September 30, 2022
AmountPercentage

Year-on-year
AmountchangePercentchangeNet sales

30,959100.0%

26,171100.0%(4,787)(15.5)%

Cost of sales

27,23588.0%

22,061

84.3%(5,173)(19.0)%

Gross profit

3,724

12.0%

4,109

15.7%

385

10.4%

Selling, general and administrative
expenses

4,757

15.4%

3,808

14.6%

(949)

(19.9)%(1,033)(3.3)%

301

1.2%

1,334

-

100

0.3%

698

2.7%

597

593.6%(932)(3.0)%

999

3.8%

1,932

-

15

0.0%

0

0.0%

(15)

(100.0)%(917)(3.0)%

999

3.8%

1,917

-

Income taxes

46

0.1%

53

0.2%

7

15.2%

Profit (loss) attributable to noncontrolling interests

24

0.1%

(6)

0.0%

(31)

-

(988)

(3.2)%

953

3.6%

1,941

-

Operating profit (loss)
Non-operating income (expenses)
Ordinary profit (loss)
Extraordinary income (losses)
Profit (loss) before income taxes

Profit (loss) attributable to ownersof parent Improvement of cost sales ratio
Profitability improved due to production cost reductions andselling price revisions, etc.

88.0％ → 84.3％ (a 3.7 percentage point decrease) Increase in non-operating income Decrease in ratio of selling, general andadministrative expenses to net sales
The ratio of selling, general and administrative expenses to net sales
decreased from 15.4% to 14.6% due to business restructuring efforts

Non-operating income increased due to foreign exchange gains
resulting from the weaker yen, etc.

100 million yen → 698 million yen

5Analysis of changes in operating profit (loss)
進化の奥の更なる真価へ(Unit: millions of yen)301

 Factors of changes in operating profit (loss)・ Decrease in sales volume(670 million) yen

・ Changes in selling prices/cost/product line-up

780 million yen

・ Fluctuations in exchange

275 million yen

・ Decrease in selling, general and administrative expenses

593 million yen

・ Decrease in provision for doubtful accounts

355 million yen

1,334 million yen

6Consolidated balance sheet
進化の奥の更なる真価へ(Unit: millions of yen)
As of March 31, 2022
AmountPercentage

As of September 30, 2022
AmountYear-on-year

Percentage

Amount change Decrease in trade receivables

Cash and deposits

18,66918.2%

19,62819.0%

959

28,340 million yen → 25,545 million yen

Trade receivables

28,34027.6%

25,54524.8%(2,794)* The trade receivables turnover period

Inventories

32,07031.2%

34,774

33.7%

2,704

Other

(1,662)(1.6)%(1,506)(1.5)%

156(As of Mar. 31, 2022: 162.8 days)

Total current assets

77,41775.4%

78,442

76.0%

1,025

(As of Sep. 30, 2022: 178.1 days)

Property, plant and equipment

21,185

20.6%

20,648

20.0%

(536)

Non-current Intangible assets
assetsInvestments and other assets

399

0.4%

407

0.4%

7

3,643

3.5%

3,707

3.6%

63

25,22824.6%

24,763

24.0%

(465)

102,645100.0%

103,206

100.0%

560

Current
assetsAssetsTotal non-current assets
Total assets

deteriorated due to a decrease in sales

 Increase in inventories
32,070 million yen → 34,774 million yen* The inventory turnover period
deteriorated due to a decrease in sales(As of Mar. 31, 2022: 184.1 days)

Liabilities

Liabilities
andNet assets
Net assets

Trade payables

13,15912.8%

15,349

14.9%

2,189

Interest-bearing debt

40,23039.2%

37,91836.7%(2,311)

5,010

4.9%

3,933

3.8%

(1,077)

Total liabilities

58,40056.9%

57,20155.4%(1,198)Retained earnings

28,49527.8%

29,340

28.4%

844

4,640

4.5%

5,420

5.3%

780

Other

11,10910.8%

11,243

10.9%

133

Total net assets

44,24543.1%

46,004

44.6%

1,759

102,645100.0%

103,206

100.0%

560

Other

Valuation and translation
adjustments

Total liabilities and net assets(As of Sep. 30, 2022: 242.5 days)

 Decrease in interest-bearing
debt
40,230 million yen → 37,918 million yen* Decreased due to repayment of a portionof long-term borrowings

7

Consolidated statement of cash flows
進化の奥の更なる真価へ(Unit: millions of yen)

Profit (loss) before income taxes
Depreciation
Decrease (increase) in trade receivables
Cash flows from operating activities Decrease (increase) in inventories
Increase (decrease) in trade payables

Cash flows from financing activities

AmountAmount

(917)

999

959

806

2,277

3,730

3,088

(2,097)1,858

207(1,531)

Net cash provided by (used in) operating
activities

7,499

3,765

Purchase of property, plant and equipment

(907)

(85)

Other, net

180

66

Net cash provided by (used in) investing
activities

(727)

(19)

Increase (decrease) in interest-bearing debt

(1,994)(2,825)

(221)

(143)

(2,215)(2,969)

148

182

4,704

959

14,614

18,669--19,31919,628Other, net
Net cash provided by (used in) financing
activities

Increase (decrease)

For the six months ended
September 30, 2022

1,884

Other, net

Cash flows from investing activities

For the six months ended
September 30, 2021

Effect of exchange rate change
Net increase (decrease)
Cash and cash equivalents at beginning of
periodIncrease in cash and cash equivalents resulting
from inclusion of subsidiaries in consolidation
Cash and cash equivalents at end of period Decrease in CF fromoperating activities
Mainly from an increase ininventories

 Decrease in CF fromfinancing activities
Mainly from repayment oflong-term borrowings

8Changes in consolidated net sales byprincipal item

進化の奥の更なる真価へ(Unit: millions of yen)
For the six months ended
September 30, 2020

For the six months ended
September 30, 2021

Composition
ratio

AmountComposition
ratio

Amount

For the six months ended
September 30, 2022

Year-on-year

Composition
ratio

AmountAmountchange Mobile cranes

PercentchangeMobile cranes
Domestic sales

14,19253.2%

14,07445.5%

14,275

54.5%

Overseas sales

1,776

6.7%

3,212

10.4%

1,772

6.8%

201

1.4%

Subtotal

15,96959.9%17,28655.8%

16,04761.3%(1,238)Domestic sales

5,024

18.8%

6,241

20.2%

4,168

15.9%

(2,072) (33.2)%

Overseas sales

5,273

19.8%

6,955

22.5%

5,432

20.8%

(1,523) (21.9)%

Subtotal

10,29838.6%

13,196

42.6%

9,600

36.7%

(3,595) (27.2)%

406

1.5%

474

1.5%

522

2.0%

(1,439) (44.8)%(7.2)%

Construction
equipment

Industrial equipment
Domestic sales

47

10.0%

Overseas sales

0

0.0%

0

0.0%

0

0.0%

Subtotal

406

1.5%

475

1.5%

523

2.0%

47

9.9%

Domestic sales

19,623

73.6%

20,79067.2%

18,96672.5%(1,823)(8.8)%

Overseas sales

7,050

26.4%

10,168

32.8%

7,205

27.5%

(2,963) (29.1)%

Total

26,674100.0%

30,959100.0%

26,171100.0%(4,787) (15.5)%

Domestic: Although demand was on a recovery path andthe order backlog remains high, the net sales
increase was small as parts were in short
supplyOverseas: Net sales decreased due to the effect of supply
chain disruptions

 Construction equipment
Domestic: Net sales decreased due to the effect of supply
chain disruptions

0 (33.3)%

Total

Changes in net sales by principal item

Overseas: Net sales decreased due to supply chain
disruptions although the trend of orders received
was strong in North America and Europe backed
by robust demand

Changes in domestic and overseas net sales(Unit:
millionsof ofyen)(Unit:
millionsyen)(Unit: millions of yen)
50,00026,67445,00030,95950,00026,17145,000Industrial

35,000475

30,00020,000406
10,29813,196equipment

523
9,600

15,00010,0005,000
030,95926,17140,00040,00025,00026,674

15,96917,286

16,047

Construction
equipment
Mobile cranes

35,00030,00025,0007,050

10,16820,000Overseas

7,205

15,00010,000

Domestic
19,623

20,79018,9665,000

0
Six months ended

Six months ended

Six months ended

Six months ended

Six months ended

Six months ended

September 30, 2020

September 30, 2021

September 30, 2022

September 30, 2020

September 30, 2021

September 30, 2022

9

Changes in consolidated net sales byprincipal item (Mobile cranes）

進化の奥の更なる真価へ[Explanation of main products]

Rough terrain cranes• Operations for traveling and a crane are available at one
operator’s cab.
• Excellent in abilities for traveling rough terrain and turning in asmall radius

Changes in net sales
30,000(Unit: millions of yen)

15,96917,286

16,047

1,776

3,212

1,772

Overseas

14,192

14,074

14,275

Domestic

25,000• For domestic (4.9t - 80t, 7 models)• For overseas (13t - 70t, 8 models)

20,00015,000All terrain cranes• Operator’s cabs are independent respectively for traveling and for
crane operations.

10,0005,000• Cranes with abilities for both high-speed traveling and travelingrough terrain

0• For domestic (110t - 400t, 5 models)Six months ended

Six months ended

Six months ended

September 30, 2020

September 30, 2021

September 30, 2022

• For overseas (130t – 300t, 2 models) Domestic sales

Crawler cranes• The lattice boom can be used at various sites, depending on its
combination.
• The telescopic boom can be set up quickly with an extendable
boom.
• For domestic (50t - 200t, 6 models)→

Increased 1.4% year on year with higher sales for all terrain cranes
and medium- to large-scale rough terrain cranes, supported byenhanced domestic sales activities

 Overseas sales→ Decreased 44.8% year on year due to a significant decline in Asia
(Taiwan and Thailand)• For overseas (55t - 300t, 7 models)10Changes in consolidated net sales byprincipal item (Construction equipment）

進化の奥の更なる真価へ[Explanation of main products](Unit: millions of yen)

Hydraulic excavators

Changes in net sales• Excavating machinery with crawler traveling section• Capable of self-propelling at unspecified places

20,000

10,29813,1969,600• Durable and easy to operate• For domestic (8t - 50t, 7 models)• For overseas (8t - 38t, 12 models)

15,000Overseas

10,000Mini excavators• Small hydraulic excavators

5,273• For overseas (0.9t - 13t, 22 models)

5,432

5,000

• Usable at various sites with ability to turn a small radius• For domestic (0.9t - 8t, 15 models)

6,955

5,024
0

6,241

Domestic

4,168

Six months ended

Six months ended

Six months ended

September 30, 2020

September 30, 2021

September 30, 2022

 Domestic sales

Crawler carriers• Transporting machine capable of self-propelling at unspecified places→ Decreased 33.2% year on year due to the effect of supply chain
disruptions• Usable at various sites with excellent work efficiency

 Overseas sales• For domestic (3.7t - 11t, 6 models)→ Decreased 21.9% year on year as sales in North America andEurope remained solid but demand in the Chinese market declined• For overseas (3.7t - 11t, 4 models)11Changes in consolidated net sales byprincipal item (Industrial equipment）

進化の奥の更なる真価へ[Explanation of main products](Unit: millions of yen)

Street sweepers

Changes in net sales• Having both high ability to clean up and a compact size
• Human-friendly, low-noise, and highly
efficient sweeper• For domestic（2 models）

1,800

406

475

523

1,600
1,400

• For overseas (custom-made)Vacuum trucks• Sucking various objects from sludge to powder and granularmaterials• Diverse lineup of products including various models from small tolarge-sized ones

1,200

800
600

Domestic

400• For domestic（9 models）

200• For overseas (custom-made)0

Snow sweepers

Overseas

1,000

474

406

522

Six months ended

Six months ended

Six months ended

September 30, 2020

September 30, 2021

September 30, 2022

 Increase in net sales→ Increased 9.9% year on year due to higher net sales in Japan• Adopting a powerful brush and blowing method• Realizing speedy and efficient snow removal• For domestic（5 models）• For overseas (custom-made)12

Changes in consolidated net sales bydestination (excluding Japan）

進化の奥の更なる真価へ(Unit: millions of yen)
For the six months ended
September 30, 2020

For the six months ended
September 30, 2021

Composition
ratio

Amount

For the six months ended
September 30, 2022

Composition
ratio

AmountYear-on-year
AmountchangeComposition
ratio

AmountComposition ratio of
total net sales

Percentchange

4,747

67.3%

5,719

56.2%

2,314

32.1%

(3,405)(59.5)%

8.8%

13

0.2%

103

1.0%

219

3.1%

116

111.7%

0.8%

Europe

1,499

21.3%

2,413

23.7%

2,368

32.9%

(45)

(1.9)%

9.0%

Oceania

52

0.7%

480

4.7%

427

5.9%

(52)

(11.0)%

1.6%

Africa

14

0.2%

96

0.9%

31

0.4%

(64)

(67.1)%

0.1%

Asia
Middle and Near East

North America/Central
and South America
Total overseas net sales

723

10.3%

1,354

13.3%

1,842

25.6%

488

36.0%

7.0%

7,050

100.0%

10,168100.0%

7,205

100.0%(2,963)(29.1)%

27.5%(Unit: millions of yen)

 Asia (down 59.5% year on year)
Decreased due to a continued decline in demandin the Chinese market
5,719 million yen → 2,314 million yen

7,205

10,1687,050
15,000North
America/Central
and South America

12,500Africa Europe (down 1.9% year on year)
Decreased due to the effect of supply chain
disruptions although the trend of orders received
remained solid
2,413 million yen → 2,368 million yen

 North America/Central and SouthAmerica (up 36.0% year on year)
Increased due to brisk demand in the Americas
market1,354 million yen → 1,842 million yen

10,000
480
7,500
52
5,000

2,500

0

723
1,499

14
103

1,354

96

Oceania

2,413

427

13

4,747

5,719

1,842

31

Europe2,368

Middle and Near

2,314

Asia

East

219

Six months ended

Six months ended

Six months ended

September 30, 2020

September 30, 2021

September 30, 202213

Full-year consolidated financial results
forecast for fiscal year ending March 31, 2023

進化の奥の更なる真価へ◆ Consolidated financial results forecOn November 10, 2022, the Company announced the following
revisions to the full-year consolidated financial results forecast for the fiscal year ending March 31, 2023 as
the shortage of parts resulting from supply chain disruptions and declining demand for construction in the
Chinese market are expected to continue for the foreseeable future in the third quarter and beyond. While thebusiness environment remain severe, the Company will strive to improve its performance(Unit:
by implementingamillions of yen)
Results for
Forecast for
Forecast for
range of measures.
Results for
FY ended March 31, 2022
FY ending March 31, 2023
FY ending March 31, 2023
FY ended March 31, 2022
(excluding one-time factors)(initial plan)(revised November 10, 2022)
ast
Net sales

63,54963,54964,10060,500

Cost sales ratio

89.6%

87.8%

85.4%

86.8%

Operating profit(loss)
Operating profit(loss) margin
Ordinary profit(loss)(7,222)

(967)

1,300

100

(11.4)%(1.5)%

2.0%

0.2%(6,929)

(674)

1,000

400

Profit (loss)
attributable toowners of parent(9,575)

226

600

1,000

Inventories

32,07032,07031,00033,470◆Shareholder returns
No revision has been made to the dividends forecast under the initial plan.
FY ended March 31, 2022

Dividend
per share

FY ending March 31, 2023 (forecast)Interim0.00 yen

0.00 yen

Year-end

10.00 yen

10.00 yen

Total

10.00 yen

10.00 yen14

Notes/Contact

進化の奥の更なる真価へ

Contents on the present plans and the forecasts included in thismaterial are based on information presently obtained and certain
premises deemed reasonable by the Company. Actual businessresults, etc. may be significantly different from them due to various
factors. Therefore, this material does not promise or guarantee theirrealization.

Contact
KATO WORKS CO., LTD.
IR team
1-9-37 Higashioi,
Shinagawa-ku, Tokyo, 140-0011
E-Mail:ir-kato@kato-works.co.jp

15