Financial Results
2018年5月14日
for the Fiscal
Year Ended株式会社 加藤製作所
March 31, 2023
May 12, 2023

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 Fiscal
Year Ended March 31, 2023
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 operating profit (excluding one-time losses)

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 3II.

Notice Concerning the Appropriation of Surplus (Dividend
Increase)

III.

Consolidated Financial Results Forecast for
Fiscal Year Ending March 31, 2024

P. 1 4
P. 1 51

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

 While net sales for the fiscal year ended March 31, 2023 decreased to 57,530 million yen due to supply chain
disruptions, business performance recovered considerably, and we returned to profitability even after excluding the onetime loss recorded in the previous fiscal year (blue figures in brackets) thanks to the steady implementation of measures
to improve and enhance profitability as set out in our Medium-term Management Plan.
(Unit: millions of yen)

Results for the year ended
March 31, 2022

Results for the year ended
March 31, 2023

YOY
comparison

Net
sales

63,54957,530(6,018)Operatingprofit(loss)(7,222)

1,258+8,481

Ordinary
profit(loss)(6,929)1,865+8,794

Profit (loss)
attributableto owners ofparent(9,575)

2,403+11,978

Dividend
per share(yen)（967）*Excluding one-time loss

（674）*Excluding one-time loss

（226）*Excluding one-time loss

InterimYear-end
Annual

00.00
10.00
10.00

InterimYear-end
Annual+2,225+2,539+2,17700.00
30.00 (forecast)
30.00 (forecast) *See P.14

*One-time loss: Loss incurred as a result of our revenue structure reforms
2Changes in consolidated financial results
進化の奥の更なる真価へ(Unit: millions of yen)

Net sales

Operating profit (loss)/
Operating profit (loss) margin※(7,222)(11.4)％For year ended
March 31, 2021

For year ended
March 31, 2022

For year ended
March 31, 2023

For year ended
March 31, 2021

For year ended
March 31, 2022

For year ended
March 31, 2023

*Recording of one-time loss
3

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

Profit (loss) attributable to owners of parent/
Net profit (loss) margin

Ordinary profit (loss)/
Ordinary profit (loss) margin
1,865

2,500

3.2%

1,500
500

2.0%

(1,921)((674))((1.1)%)(500)(3.3)%(4.0)%(3,500)(15.1)%For year ended For year ended
March 31, 2021 March 31, 2022

*One-time loss recorded

For year ended
March 31, 2023

R O E ( R e t ur n o n e q u i t y)(6.0)%(4,500)※

5.4%(8.0)%(5,500)(5.0)%(6,929)(6,500)(7,500)*0.0%(2.0)%(1,500)(2,500)

2,403
4.0%

(10.9)％For year ended
21/3月期
March
31, 2021*One-time loss recorded

For year ended
22/3月期
March 31, 2022

For year ended
23/3月期
March 31, 2023

(10.0)%(10.0)%(10.9)%(15.0)%(12.0)%(20.4)%(20.0)%(25.0)%For year ended
March 31, 2021

For year ended
March 31, 2022

For year ended
March 31, 2023

4

Consolidated statement of income

進化の奥の更なる真価へ(Unit: millions of yen)
For the year ended March 31, 2022
AmountPercentage

For the year ended March 31, 2023
AmountPercentage

Year-on-year
Amount change Percent change

Net sales

63,549100.0%

57,530100.0%(6,018)(9.5)%

Cost of sales

56,91389.6%

48,42984.2%(8,483)(14.9)%

Gross profit

6,635

10.4%

9,100

15.8%

2,465

37.2%

Selling, general and administrative expenses

13,857

21.8%

7,841

13.6%

(6,015)(43.4)%

Operating profit (loss)(7,222)(11.4)%

1,258

2.2%

8,481

-

293

0.5%

606

1.1%

313

106.9%

Ordinary profit (loss)(6,929)(10.9)%

1,865

3.2%

8,794

-

Extraordinary income (losses)(2,088)(3.3)%

636

1.1%

2,724

-

Profit (loss) before income taxes(9,017)(14.2)%

2,501

4.3%

11,519

-

572

0.9%

49

0.1%

(522)

(91.3)%

(14)

0.0%

48

0.1%

63

-

(9,575)(15.1)%

2,403

4.2%

11,978-Non-operating income (expenses)

Income taxes
Profit (loss) attributable to non- controllinginterests
Profit (loss) attributable to owners ofparentROE(20.4)%

 Improvement in cost sales ratio and operating
profit margin
Profitability improved due to selling price revisions, the reduction invarious fixed costs, and a drastic reduction of manufacturing costs
Cost sales ratio: 89.6% → 84.2%
Operating profit margin (11.4%) [(1.5%)] → 2.2％
Figures in bracket [ ] represent margin excluding one-time loss.

5.4%+25.8 points

 Increase in non-operating income
Mainly due to foreign exchange gains of 413 million
yen (up 63 million yen) and dividends received of 214
million yen (up 188 million yen)

 Increase in extraordinary profit
Mainly due to gains on the sale of The Hitachinaka
5
Plant (temporary name) of 986 million yen

Analysis of operating profit (excluding onetime losses)

進化の奥の更なる真価へ(Unit: millions of yen)
Provision for
doubtful accounts

Operating profit(loss) for year
ended
Mar. 31, 2022(500)

(2,000)

SGA

Sales
volume(1,000)(1,500)Exchange rate
fluctuations

After-sales parts

(967)
(621)

(339)

Operating profit(loss) for year
ended
Mar. 31, 2023

・Selling price revision
・Cost reduction
・Product line-up Factors of changes in operating profit (loss)・ Decrease in sales volume(621 million) yen

・ Selling price/cost/product line-up measures

1,095 million yen

・ Increase in after-sales parts
・ Decrease in SGA (personnel costs, etc.)

367 million yen

2,225 million yen

1,200 million yen

・ Fluctuations in exchange rates

523 million yen

・ Increase in provision for doubtful accounts(339 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
AmountCurrent
assetsAssetsNon-current
assetsLiabilities

Liabilities
andNet assets
Net assets

Percentage

As of March 31, 2023

Year-on-year

AmountAmount change

Percentage

Cash and deposits

18,66918.2%

19,977

20.2%

1,308

 Decrease in trade receivables

Trade receivables

28,34027.6%

25,06025.4%(3,280)28,340 million yen → 25,060 million yen*Trade receivables turnover period improved

Inventories

32,07031.2%

31,583

32.0%

(487)

Other

(1,662)(1.6)%(948)(1.0)%

714(As of Mar. 31, 2022:

162.8 days)

Total current assets

77,41775.4%

75,67276.6%(1,744)(As of Mar. 31, 2023:

159.0 days）

Property, plant and equipment

21,185

20.6%

19,13119.4%(2,053)

399

0.4%

414

0.4%

15

Investments and other assets

3,643

3.5%

3,580

3.6%

(63)

Total non-current assets

25,22824.6%

23,12623.4%(2,101)

Total assets

102,645100.0%

98,799100.0%(3,846)

Trade payables

13,15912.8%

13,942

14.1%

783

Interest-bearing debt

40,23039.2%

34,37934.8%(5,850)

Other

5,010

4.9%

3,571

3.6%

(1,439)Total liabilities

58,40056.9%

51,89352.5%(6,507)Retained earnings

28,49527.8%

30,781

31.2%

2,285

Valuation and translation
adjustments

4,640

4.5%

4,901

5.0%

260

40,230 million yen → 34,379 million yen

Other11,10910.8%

11,223

11.4%

113*Decrease due to repayment of long-term

Total net assets

44,24543.1%

46,906

47.5%

2,660

Total liabilities and net assets

102,645100.0%

98,799100.0%(3,846)

Intangible assets

 Decrease in inventories
32,070 million yen → 31,583 million yen*Inventory turnover period worsened due tolower sales(As of Mar. 31, 2022:

184.2 days)(As of Mar. 31, 2023

200.4 days）

 Decrease in interest-bearing debt

borrowings

7

Consolidated statement of cash flows

進化の奥の更なる真価へ

 Regarding consolidated cash flow for the fiscal year ended March 31, 2023, cash flows from operating activities increased
by 6.4 billion yen due to the collection of trade receivables and control of inventory assets. Cash flows from investing
activities increased by 1.3 billion following the sale of the Hitachinaka Plant (temporary name). Cash flows from financing
activities were at the same level as the previous fiscal year as a result of the repayment of long-term borrowings. As aresult, the cash balance rose by 1.3 billion year on year and interest-bearing debt decreased by 5.8 billion yen.
(Unit: millions of yen)

Cash flows from financing activities

AmountAmount(9,017)2,501

Depreciation

1,956

1,576

Decrease (increase) in trade receivables

6,342

3,736

9,427

730

Increase (decrease) in trade payables

731

517

Other, net

105(2,592)

Net cash provided by (used in) operating
activities

9,547

6,471

Purchase of property, plant and equipment(1,241)(197)

Other, net

1,737

1,567

Net cash provided by (used in) investing
activities

496

1,369

Increase (decrease) in interest-bearing debt

(6,362)Other, net
Net cash provided by (used in) financing
activities

Increase (decrease)

For the year ended March 31, 2023

Profit (loss) before income taxes

Cash flows from operating activities Decrease (increase) in inventories

Cash flows from investing activities

For the year ended March 31, 2022

Effect of exchange rate change CF from operating activities
Increased by 6.4 billion yen
mainly due to the decrease intrade receivables

 CF from investing activities
Increased by 1.3 billion yen
primarily due to the sale of noncurrent assets(6,477) 

(275)

(129)

(6,637)(6,606)648

73

Net increase (decrease)

4,054

1,308

Cash and cash equivalents at beginning of
period14,614

18,669Cash and cash equivalents at end of period

18,66919,977

Balance of interest-bearing debt

40,23034,379CF from financing activities
Decreased by 6.6 billion yen
primarily due to repayment oflong-term borrowings

 Cash balance
Increased by 1.3 billion yen year
on year.

 Interest-bearing debt
Decreased by 5.8 billion yen year
on year.

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 year ended March 31,

For the year ended March 31,

2021
Composition

2022
Composition

Amountratio

Amountratio

For the year ended March 31,
2023
Composition
Amountratio

Year-on-year
AmountPercentchangechangeMobile cranes
Domestic sales

30,32051.8%

30,88948.6%

31,521

54.8%

631

2.0%

Overseas sales

4,453

7.6%

6,274

9.9%

3,669

6.4%

(2,605)(41.5)%

Subtotal

34,773

59.4%

37,16358.5%

35,19061.2%(1,973)(5.3)%

Domestic sales

10,682

18.3%

11,463

18.0%

8,533

14.8%

(2,929)(25.6)%

Overseas sales

11,45919.6%

13,82521.8%

12,898

22.4%

(926)

(6.7)%

Subtotal

22,14237.8%

25,28839.8%

21,431

37.3%(3,856)(15.3)%

Construction
equipment

Industrial equipment
Domestic sales

1,604

2.7%

1,078

1.7%

906

1.6%

(172)

(16.0)%

Overseas sales

0

0.0%

17

0.0%

1

0.0%

(16)

(91.4)%

Subtotal

1,604

2.7%

1,096

1.7%

908

1.6%

(188)

(17.2)%

Domestic sales

42,60772.8%

43,431

68.3%

40,96171.2%(2,470)(5.7)%

Overseas sales

15,91227.2%

20,11731.7%

16,56928.8%(3,548)(17.6)%

58,519100.0%

63,549100.0%

57,530100.0%(6,018)(9.5)%

Total

Total

Having been affected by supply chain
disruptions and considering profitability
factors and the state of orders, we focusedon selection and concentration in our
production and sales strategies, prioritizing
cranes in Japan, for which there is a large
backlog of orders, and construction
equipment for Europe and the UnitedStates.
As a result, sales of mobile cranes inJapan increased by 2.0% year on year,
including price revisions. At the same time,
despite the increase in demand in Europe
and the United States, sales of construction
equipment for overseas markets decreased
by 6.7% due to a decline in demand in
China.

Changes in domestic and overseas net sales

Changes in net sales by principal item

（Unit: millions of yen)

(Unit: millions of yen)
80,00058,51970,00060,00050,00040,0001,604
22,14263,5491,096
25,28857,530908

21,431equipment

油圧ショベルConstruction
equipment

37,16335,19010,0000

その他
Industrial

等
Mobile cranes
建設用ク
34,77358,51963,54957,53070,00030,00020,00080,000レーン

60,00050,00015,912

20,117

16,56940,000

海外
Overseas

30,00020,00042,60643,43140,961

Domestic
国内

10,000For year ended
21/3月期
March
31, 20210
For year ended
22/3月期
March
31, 2022

For year ended
23/3月期
March
31, 2023

For year ended For year ended
21/3月期
22/3月期
March
31, 2021 March
31, 2022

For year ended

23/3月期
March 31, 2023

9

Changes in consolidated net sales by principal
item (Mobile cranes）

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

Rough terrain cranes

Changes in net sales• Operations for traveling and a crane are available at one
operator’ cab• Excellent in abilities for travelling over rough terrain in a small
radius• For domestic (4.9t - 80t, 10 models)• For overseas (13t - 70t, 8 models)

Overseas

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

Domestic• Cranes with abilities for both high speed traveling and travelingrough terrain• For domestic (110t - 300t, 4 models)• For overseas (110t - 130t, 2 models)

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)

For year ended
March 31, 2021

For year ended
March 31, 2022

For year ended
March 31, 2023

 Domestic sales*Net sales increased by 2.0% year on year following price revisions
and our decision to focus on sales activities emphasizing profits

 Overseas sales*Sales decreased by 41.5% year on year due to supply chain
disruptions• For overseas (55t - 300t, 6 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]
Hydraulic excavators(Unit: millions of yen)

Changes in net sales• Excavating machinery with crawler traveling section• Capable of self-propelling in unspecified places• Durable and easy to operate• For domestic (8t - 50t, 7 models)• For overseas (8t - 38t, 12 models)

Overseas

Mini excavators• Small hydraulic excavators
Domestic• Usable at various sites with ability to turn a small radius• For domestic (0.9t - 8t, 15 models)• For overseas (0.9t - 13t, 21 models)
For year ended
March 31, 2021

Crawler carriers• Transporting machine capable of self-propelling in unspecified places• Usable at various sites with excellent work efficiency• For domestic (3.7t - 11t, 7 models)• For overseas (3.7t - 11t, 5 models)

For year ended
March 31, 2022

For year ended
March 31, 2023

 Domestic sales* Decreased 25.6% year on year due to supply chain disruptions

 Overseas sales* Decreased 6.7% year on year despite the solid sales in North America
and Europe, as demand in other markets failed to pick up markedly

11Changes in consolidated net sales by principal
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）• For overseas (custom-made)Overseas

Vacuum trucks• Sucking various objects from sludge to powder and granularmaterials

Domestic• Diverse lineup of products including various models from small tolarge-sized ones
• For domestic（9 models）• For overseas (custom-made)For year ended
March 31, 2021

Snow sweepers• Adopting a powerful brush and blowing method

For year ended
March 31, 2022

For year ended
March 31, 2023

 Net sales*Decreased 17.2% year on year on supply chain disruptions and otherproduction-related factors• 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 year ended March 31,
2021

For the year ended March 31,
2022

Composition
ratio

AmountAmountComposition
ratio

For the year ended March 31,
2023
Composition
ratio

AmountYear-on-year
AmountchangePercentchangeComposition ratio of
total net sales

10,601

66.6%

10,745

53.4%

5,698

34.4%

(5,047)(47.0)%

9.9%

52

0.3%

302

1.5%

523

3.2%

221

73.3%

0.9%

Europe

3,294

20.7%

4,871

24.2%

5,166

31.2%

294

6.1%

9.0%

Oceania

426

2.7%

980

4.9%

934

5.6%

(45)

(4.6)%

1.6%

Africa

58

0.4%

218

1.1%

82

0.5%

(135)

(62.1)%

0.1%

1,479

9.3%

2,998

14.9%

4,163

25.1%

1,164

38.8%

7.2%

15,912100.0%

20,117100.0%

16,569100.0%(3,548)

Asia
Middle and Near East

North America/Central and SouthAmerica

Total overseas net sales(17.6)%
28.8%(Unit: millions of yen)

 Asia (down 47.0% year on year)
Decreased significantly due to a decline indemand in the Chinese market
10,745 million yen → 5,698 million yen

NorthAmerica/Central
and South America
AfricaEurope (up 6.1% year on year)
Increased only slightly due to the impact of
supply chain disruptions although backlog oforders remains high
4,871 million yen → 5,166 million yen

Oceania
EuropeMiddle andNear East North America/Central and South America(up 38.8% year on year)
Increased due to brisk demand in the Americas
market2,998 million yen → 4,163 million yen

Asia

For year ended
March 31, 2021

For year ended
March 31, 2022

For year ended
March 31, 2023

13

Notice concerning the appropriation of
surplus (dividend increase)

進化の奥の更なる真価へ

At the meeting of the Board of Directors held on May 12, 2023, the Company resolved the following amendment to the year-end
dividend for the 124th fiscal year with a record date of March 31, 2023, which was announced on the same day.

This matter is set to be officially decided following the Annual General Meeting of Shareholders to be held on June 29, 2023.

Year-end dividend
for the 124th fiscal
year

Revised proposal
Latest forecast
Year ended March 31,(Announced May 12, 2023) (Announced May 13, 2023)
2022

Record date

March 31, 2023

March 31, 2023

March 31, 2022

30.00 yen

10.00 yen

10.00 yen

Total amount ofdividends

351 million yenー

117 million yen

Effective dateJune 30, 2023

ーJune 30, 2022

Retained earningsーRetained earnings

Dividend per share

Divdend resource

As a basic principle, the Company makes decisions regarding dividends based on its belief that the returning of profits to shareholders is
one of its most important management tasks, while comprehensively taking into account such factors as financial results for each term,
dividend payout ratio, and internal reserves needed for future growth..
The full-year financial results for the fiscal year ended March 31 ,2023 have shown a significant recovery from the previous fiscal year
thanks to the progress in improving profitability, which has been one of the medium-term management plan goals. Therefore, based on
the above policy, the Company has decided to revise (upward) the amount of year-end dividend from the previously announced forecastof 10 yen per share to 30 yen per share.

14

Full-year consolidated financial results
forecast for fiscal year ending March 31, 2024
 Key points of forecast(Unit: millions of yen)

* While the economic environment is expected to improve partially due to the rebound indemand through the recovery process from the COVID-19 pandemic and the impact ofvarious policies, we remain concerned that recessionary effects sparked by Russia’s
prolonged invasion of Ukraine and tighter monetary policy in Europe and the United States in
the face of inflationary pressures will spread to Japan and dampen the economy there.
Against that backdrop, the Group formulated a Medium-term Management Plan, whichstarted in the fiscal year ended March 31, 2023. In the fiscal year ending March 31, 2024, thesecond year of the medium-term Management Plan, while we will continue to work on themeasures stipulated under the plan, namely, improving and enhancing profitability, improving
the financial structure, and building future business foundations, we have taken into accountpotential limitations relating to the supply of some major parts for our main products as well
as a gradual decline in foreign exchange gains in the consolidated financial results forecast
as below.
* We plan to record an extraordinary gain relating to the sale of non-current assets at ourconsolidated subsidiary KATO WORKS (THAILAND) CO., LTD.
FY ended Mar. 31, 2023
AmountRatio

FY ending Mar. 31, 2024
(Forecast)Amount57,530100%

60,000Operating profit (loss)

1,258

2.2%

1,200

Ordinary profit (loss)

1,865

3.2%

900

Profit (loss) attributable to owners of parent

2,403

4.2%

2,000

Net sales

FY ended Mar. 31, 2023

Year-end
Annual*Net sales

For year ended For year ended
March 31, 2022 March 31, 2023

For year ending
March 31, 2024
(Forecast)

Operating profit (loss)

FY ending Mar. 31, 2024 (Forecast)

0.00 yen

20.00 yen*

30.00 yen

20.00 yen*

30.00 yen

40.00 yenInterim
Dividend pershare

進化の奥の更なる真価へ

The interim and year-end dividends per share for the fiscal year ended March 31, 2023 are scheduled to be
officially decided at the 124th Annual General Meeting of Shareholders to be held on June 29, 2023.

For year ended For year ended
March 31, 2022 March 31, 2023

For year ending
March 31, 2024
(Forecast)15

進化の奥の更なる真価へ

Contact

KATO WORKS CO., LTD.
IR Team, General Affairs Department*
1-9-37 Higashioi,
Shinagawa-ku, Tokyo, 140-0011
E-Mail: ir-kato@kato-works.co.jp*We will establish the Corporate Communications Department on June 1, 2023.
The Corporate Communications Department will have a dedicated person in charge of IR and public relations and will
strive to strengthen communication with shareholders, investors, and other stakeholders, while also working toactively enrich information disclosures and IR materials including disclosure materials and promote proactive PR
activities.
Contents on the present plans and the forecasts included in this material are planned and forecasted based on information presently available to the Company and certain premises
deemed reasonable by the Company. Actual business results, etc. may be significantly different from them due to various factors. Therefore, this material does not promise or
guarantee that they will be realized.

16