Consolidated Financial Results for the First Quarterof the Fiscal Year Ending March 2025 [Japan GAAP]
July 30, 2024
Name of Company:
Futaba Industrial Co., Ltd.
Stock Exchange Listing: Tokyo Stock Exchange, Prime Market, Nagoya Stock Exchange, Premier Market
Stock Code:7241
URL: https://www.futabasangyo.com/en/
Representative:
Yoshihiro Uozumi, President
Contact Person:
Yoshihiro Kobayashi, Accounting Manager
Tel:+81-(564) 31-2211
Scheduled date of commencement of dividend payment: ‒Supplementary materials for financial results:
Yes
Information meeting for financial results:
No(Yen in millions, rounded down)

1. Financial results for the first quarter of the fiscal year ending March 2025 (April 1, 2024 – June 30, 2024)(1) Results of Operations (Consolidated, year-to-date)(Percentage figures represent year on year changes)
Profit attributable to
Net sales
Operating profit
Ordinary profit
owners of parent
First quarter ended

Million yen%

Million yen%

June 2024
186,453(8.9)
3,614(23.6)
June 2023
204,673
33.3
4,729
‒
Note: Comprehensive income:
1Q FY2025: 4,923 million yen [-43.6%]

Yen

June 2024
June 2023

Million yen

%

Yen

26.51
34.38

26.51
34.38

(2) Financial Position (Consolidated)
Total assets

Net assets

Million yen

As of June 30, 2024
As of March 31, 2024
Reference: Shareholders’ equity:

%

3,992
(18.0)
2,371(22.9)
4,865
‒
3,074
‒
1Q FY2024: 8,722 million yen [288.8%]

Earnings per share
fully diluted

Earnings per shareFirst quarter ended

Million yen

Equity ratio

Million yen

326,351
134,033
334,780
130,901
As of June 30, 2024: 127,046 million yen

%

38.9
37.2
As of March 31, 2024: 124,378 million yen

2. Dividends

End of 1Q
FY2024FY2025

Dividend per share
End of 3Q

End of 2Q

End of FY

Total

Yen

Yen

Yen

Yen

Yen

‒
‒

15.00

‒

20.00

35.00

‒

18.00

35.00

FY2025 (estimated)
17.00
Note: Change in the estimation of dividend from the latest announcement: None

3. Forecast for the fiscal year ending March 2025 (Consolidated, April 1, 2024 - March 31, 2025)(Percentage figures represent year on year changes)

Net sales
Million yen

Operating profit%

Million yen

Profit attributable toowners of parent

Ordinary profit%

Full year
740,000(7.0)
16,000(16.7)
Note: Change in the forecast from the latest announcement: None

Million yen

15,000Earnings per share%

Million yen%

Yen(18.9)

12,000(6.5)

134.15*Notes(1) Major changes in the scope of consolidation during the period: None
Newly consolidated company: None
Eliminated: None

(2) Use of accounting methods specifically for the preparation of the quarterly consolidated financial statements: Yes
Note: Please see “2. Quarterly Consolidated Financial Statements and Important Notes, (3) Notes to the Quarterly Consolidated
Financial Statements” on page 7 of the Supplementary Information for more details.
(3) Changes in accounting principles and estimates, and retrospective restatement(a) Changes due to revision of accounting standards: None(b) Changes other than in (a): None(c) Changes in accounting estimates: None(d) Retrospective restatement: None
(4) Number of shares outstanding (common stock)(a) Shares outstanding (including treasury shares)(b) Treasury shares(c) Average number of shares outstanding

End of 1Q FY2025:

89,580,827 shares

End of FY2024:

89,580,827 shares

End of 1Q FY2025:

115,096 shares

End of FY2024:

114,669 shares

1Q FY2025:

89,465,864 shares

1Q FY2024:

89,426,761 shares* Review by certified public accountants or accounting firms of the attached quarterly consolidated financial statements: None
* Cautionary statement regarding forecasts of operating results and special notes
The forward-looking statements contained in this report are based on information currently available to management. As such, theseestimates are subject to uncertainties. In addition, actual results may differ materially from those discussed in the forward-looking
statement due to in changes in the economy, markets, stock prices and exchange rates.

Index for Supplementary Information

1. Qualitative Information on Consolidated Financial Results for the First Quarter under Review ...................................................... 2(1) Explanation of the Results of Operations.................................................................................................................................... 2(2) Explanation of Financial Position ............................................................................................................................................... 2
2. Quarterly Consolidated Financial Statements and Important Notes .................................................................................................. 3(1) Quarterly Consolidated Balance Sheet........................................................................................................................................ 3(2) Quarterly Consolidated Statement of Income and Comprehensive Income ................................................................................ 5(3) Notes to the Quarterly Consolidated Financial Statements ......................................................................................................... 7(Notes to going concern assumptions) .......................................................................................................................................... 7(Notes to significant changes in shareholders’ equity) ................................................................................................................. 7(Application of special accounting for preparing the quarterly consolidated financial statements) .............................................. 7(Segment information) .................................................................................................................................................................. 7(Notes to statement of cash flows) ................................................................................................................................................ 7―1―

1. Qualitative Information on Consolidated Financial Results for the First Quarter under Review(1)

Explanation of the Results of Operations
The Group has aspired to become a strong and sustainable global company based on the following three pillars: strong measures
to be a trusted and successful company, to be a true global company, and for a sustainable corporate foundation.
The Group has established “strengthening earnings capacity and working to increase free cash flow (FCF)” as medium-term
management targets from FY2022 to FY2024. By further strengthening earnings capacity mainly through improvements in
production efficiency and working to achieve robust increases in FCF, the Group will secure returns to shareholders and allocate
funds for the repayment of interest-bearing debt and investment for future growth.
The Group will continue to provide value and increase information transmission to shareholders, investors and all stakeholders,
including customers, employees and local communities.
During the first quarter of the fiscal year under review, net sales decreased 8.9% year on year, to 186.4 billion yen, operating
profit decreased 23.6% year on year, to 3.6 billion yen, ordinary profit decreased 18.0% year on year, to 3.9 billion yen andprofit attributable to owners of parent decreased 22.9% year on year, to 2.3 billion yen. These results chiefly reflected a decline
in customers’ automobile production volume.
Geographic segment performance was as follows.
1) JapanNet sales were 78.3 billion yen, a decrease of 15.1% from the same period of the previous fiscal year. Segment profit was
0.8 billion yen, a decrease of 70.1% year on year.
2) North America
Net sales were 63.2 billion yen, an increase of 15.1% from the same period of the previous fiscal year. Segment profit was
1.4 billion yen, an increase of 351.5% year on year.
3) Europe
Net sales were 16.8 billion yen, a decrease of 20.1% from the same period of the previous fiscal year. Segment profit was
0.4 billion yen, a decrease of 3.2% year on year.
4) China
Net sales were 16.7 billion yen, a decrease of 27.7% from the same period of the previous fiscal year. Segment profit was
0.2 billion yen, a decrease of 51.7% year on year.
5) Asia
Net sales were 13.7 billion yen, a decrease of 10.4% from the same period of the previous fiscal year. Segment profit was
0.5 billion yen, an increase of 17.6% year on year.

(2)

Explanation of Financial Position
Total assets at the end of the first quarter of the fiscal year under review were 326.3 billion yen, a decrease of 8.4 billion yen
from the end of the previous fiscal year, mainly due to a decrease in notes and accounts receivable - trade. Total liabilities
amounted to 192.3 billion yen, an 11.5 billion yen decrease from the end of the previous fiscal year, mainly due to a decreasein notes and accounts payable - trade. Net assets increased 3.1 billion yen from the end of the previous fiscal year to 134.0
billion yen due mainly to an increase in foreign currency translation adjustment.

―2―2. Quarterly Consolidated Financial Statements and Important Notes(1)

Quarterly Consolidated Balance Sheet(Million yen)
As of March 31, 2024

AssetsCurrent assets
Cash and deposits
Notes and accounts receivable - tradeFinished goods
Work in process
Raw materials and supplies
Other

As of June 30, 2024

25,02989,572
6,714
15,024
7,370
9,805

23,75980,493
7,098
16,6197,533
9,184

Total current assets
Non-current assets
Property, plant and equipment

153,518

144,688

Buildings and structures, net

35,74836,599Machinery, equipment and vehicles, net

59,911

59,623Tools, furniture and fixtures, net

13,525

12,106

Land

14,853

14,972

Leased assets, net

2,403

2,544

Construction in progress

9,724

12,252

136,167

138,099

1,896

1,898

26,61933
14,592
1,535
424
(8)
43,197
181,262
334,780

25,13235
14,668
1,421
415
(8)
41,664
181,662
326,351

Total property, plant and equipment
Intangible assets
Investments and other assets
Investment securities
Long-term loans receivable
Retirement benefit asset
Deferred tax assets
Other
Allowance for doubtful accounts
Total investments and other assets
Total non-current assets
Total assets―3―

(Million yen)
As of March 31, 2024
Liabilities
Current liabilities
Notes and accounts payable - trade
Electronically recorded obligations - operating
Short-term borrowings
Current portion of long-term borrowings
Income taxes payable
Accrued consumption taxes
Provision for bonuses for directors (and other officers)
Accrued expenses
Other
Total current liabilities
Non-current liabilities
Bonds payable
Long-term borrowings
Deferred tax liabilities
Provision for product warranties
Provision for dismantlement and removal
Retirement benefit liability
Other
Total non-current liabilities
Total liabilities
Net assets
Shareholders’ equity
Share capital
Capital surplus
Retained earnings
Treasury shares
Total shareholders’ equity
Accumulated other comprehensive income
Valuation difference on available-for-sale securities
Foreign currency translation adjustment
Remeasurements of defined benefit plans
Total accumulated other comprehensive income
Non-controlling interests
Total net assets
Total liabilities and net assets―4―

As of June 30, 2024

86,135
3,790
1,105
11,773
2,639
2,498
32
15,576
14,376
137,926

76,995
3,706‒
11,916
3,087
2,161
7
17,47011,757
127,102

6,000
41,137
10,191
388
933
5,057
2,243
65,951

6,000
40,759
9,650
419
933
5,066
2,386
65,215

203,878

192,318

16,8209,186
58,893(46)
84,853

16,8209,186
59,475(47)
85,435

14,712
16,094
8,718
39,525
6,523
130,901
334,780

13,484
19,651
8,476
41,611
6,986
134,033
326,351

(2)Quarterly Consolidated Statement of Income and Comprehensive Income
Quarterly consolidated statement of income
For the first quarter(Million yen)First quarter ended Jun. 30, 2023
(Apr. 1, 2023 – Jun. 30, 2023)

First quarter ended Jun. 30, 2024
(Apr. 1, 2024 – Jun. 30, 2024)

204,673
193,183
11,490186,453
175,358
11,094

6,760
4,729

7,480
3,614

104
215
70

140
282
79

18

75

261
109
779

1,228
198
2,006

320
119
183
‒
19
642
4,865
4,865
1,611
3,254
179
3,074

205
284
528
577
30
1,628
3,992
3,992
1,536
2,455
83
2,371

Net sales
Cost of sales
Gross profit
Selling, general and administrative expenses
Operating profit
Non-operating income
Interest income
Dividend income
Gain on sales of scraps
Share of profit of entities accounted for using equity
methodForeign exchange gains
Miscellaneous income
Total non-operating income
Non-operating expenses
Interest expenses
Loss on abandonment of non-current assets
Loss on valuation of derivatives
Business restructuring expenses
Miscellaneous loss
Total non-operating expenses
Ordinary profit
Profit before income taxes
Income taxes
ProfitProfit attributable to non-controlling interests
Profit attributable to owners of parent―5―

Quarterly consolidated statement of comprehensive income
For the first quarter(Million yen)First quarter ended Jun. 30, 2023
(Apr. 1, 2023 – Jun. 30, 2023)

First quarter ended Jun. 30, 2024
(Apr. 1, 2024 – Jun. 30, 2024)

3,254

2,455

1,662
3,851
(85)

(1,227)
3,752
(242)

40

186

5,468

2,468

8,722

4,923

8,227

4,457

495

465

ProfitOther comprehensive income
Valuation difference on available-for-sale securities
Foreign currency translation adjustment
Remeasurements of defined benefit plans, net of tax
Share of other comprehensive income of entities
accounted for using equity method
Total other comprehensive income
Comprehensive income
Comprehensive income attributable toComprehensive income attributable to owners ofparentComprehensive income attributable to noncontrolling interests

―6―

(3)

Notes to the Quarterly Consolidated Financial Statements(Notes to going concern assumptions)
None(Notes to significant changes in shareholders’ equity)
None(Application of special accounting for preparing the quarterly consolidated financial statements)(Calculation of tax expenses)
Tax expenses for the Company and some of its consolidated subsidiaries are calculated by reasonably estimating the effective
tax rate after applying tax effect accounting to profit before income taxes for the consolidated fiscal year, including the firstquarter under review, and multiplying profit before income taxes by the estimated effective tax rate.
(Segment information)
First quarter ended June 30, 2023 (April 1, 2023 to June 30, 2023)
1. Information related to net sales and profit (loss) by reportable segment(Million yen)
Reportable segments
Japan

Net sales
Of which tooutside customers
Of which intersegment andtransfers
Total
Segment profit

North
America

Europe

China

Asia

Total

Adjustments(Note 1)

Total
(Note 2)

90,19654,96321,04623,127

15,338204,673‒

204,673

2,135

0

0

1

0

2,138

(2,138)‒92,33254,964

21,047

23,12815,339206,811(2,138)204,673

2,706

323

467

611

485

4,594

134

4,729

Notes: 1. The segment profit adjustment of 134 million yen is for the elimination of intersegment transactions.
2. Segment profit is adjusted to the operating profit in quarterly consolidated statements of income.
First quarter ended June 30, 2024 (April 1, 2024 to June 30, 2024)
1. Information related to net sales and profit (loss) by reportable segment(Million yen)
Reportable segments
Japan
Net sales
Of which tooutside customers
Of which intersegment andtransfers
Total
Segment profit

North
America

Europe

China

Asia

Total

Adjustments(Note 1)

Total
(Note 2)75,913

63,255

16,815

16,71813,750186,453‒

186,453

2,446

20

0

0

0

2,469

(2,469)‒78,35963,275

16,816

16,71913,751

188,922(2,469)186,453

808

1,461

452

294

571

3,588

25

3,614

Notes: 1. The segment profit adjustment of 25 million yen is for the elimination of intersegment transactions.
2. Segment profit is adjusted to the operating profit in quarterly consolidated statements of income.
(Notes to statement of cash flows)
The Company did not prepare quarterly consolidated statements of cash flows for the first quarter under review. Depreciation(including amortization of intangible assets) for the first quarter under review is as follows.
First quarter ended June 30, 2023
First quarter ended June 30, 2024
(April 1, 2023 to June 30, 2023)(April 1, 2024 to June 30, 2024)
Depreciation

7,433 million yen―7―7,171 million yen

July 30, 2024 Futaba Industrial Co., Ltd.

Supplementary data for the first three months of the fiscal year ending March 2025
1. Consolidated financial results(Million yen, rounded down)
The first three months
under review

The previous three months(From April 2024 to June 2024) (From April 2023 to June 2023)% of total
Net sales(including parts supplied by customers)

186,453(excluding parts supplied by customers)
Operating profit
Ordinary profit
Profit attributable to owners of parent
Earnings per share
Capital expenditures (Completion basis)
Depreciation
Foreign exchange rate (USD/Yen)
Number of consolidated companies

112,744
3,614
3,992
2,371

( 3.2% )( 3.5% )( 2.1% )Change (%)(From April 2024 to March 2025)% of total
204,673( 100.0% )Full-year forecast
Change114,722
4,729
4,865
3,074

( 100.0% )( 4.1% )( 4.2% )( 2.7% )26.51 yen
5,139
7,171
155.9 yen21

34.38 yen
3,379
7,433
137.4 yen
21

ChangeChange (%)-55,802-7.0%-4,664-3,213-3,489-831-1.0%-16.7%-18.9%-6.5%

9,785-5,65350.9%-18.4%% of total-18,220-8.9%

740,000-1,977-1,115
-873
-702

-1.7%
-23.6%-18.0%-22.9%

445,000
16,00015,00012,0001,759-261( 100.0% )( 3.6% )( 3.4% )( 2.7% )134.15 yen
29,00025,000145.0 yen
21

52.1%
-3.5%

(Note) Figures in parentheses indicate the net sales ratio excluding parts supplied by customers.

* Supplementary explanations regarding year-on-year change in net sales
Net sales (excluding parts supplied by customers)

FY3/2024
First Quarter
Results

204.6

Amount of parts supplied by customers

Billion yen

FY3/2025
First Quarter
Results

-18.2

89.9

186.4
73.7

-1.9

112.7

114.7

Net sales in real terms, excluding the effects ofchanges in materials quoted prices and fluctuations
in foreign exchange rates, decreased 6.7 billion yen(5.8%) compared to the same period of theprevious fiscal year.

- Meaning of the term "parts supplied by customers"
Catalysts and other parts supplied for value by customers
Sales prices of products, including parts supplied by customers,
include values of parts supplied by customers and have no
impact on profits.
- Meaning of the term "changes in materials prices"
It means that, due to changes in market conditions, unit
purchase prices of materials and materials costs, which arecomponents of sales prices, fluctuate by the same amount.
There is no impact on profits because sales and costs fluctuateby the same amount.

Excludeexternal factors-6.7

External factors

114.7

4.7

Change in materials
quoted price
0.4
Exchange rate
fluctuations
4.3

108.0

2. Factors for increase/decrease in operating profit (year-on-year comparison)
Factors for profit increase
Rationalization enhancement
Decrease in depreciation

Amount1.1
0.3(Billion yen)AmountFactors for profit decrease
Decrease in profit due to lower sales in the
Automotive Parts Business

1.7

Sales price revision
Total

1.4
Net balance

Decrease in operating profit

0.6
0.2
2.5

Changes in product mix, etc.
Total
-1.1

3. Financial results by segment (excluding parts supplied by customers)
The first three months
under review(Million yen, rounded down)

The previous three months(From April 2024 to June 2024) (From April 2023 to June 2023)

Profit margin
Japan

Net sales (excluding parts
supplied by customers)
Operating profit

50,612808

Net sales (excluding parts
supplied by customers)

35,858Operating profit

1,461

EuropeNet sales (excluding parts
supplied by customers)

10,291China

Net sales (excluding parts
supplied by customers)

North
America

Operating profit

Operating profit
Asia

Net sales (excluding parts
supplied by customers)
Operating profit

Eliminatio Net salesnOperating profit
Total

Net sales (excluding parts
supplied by customers)
Operating profit

452

4.4%

2.2%

1.2%

467

4.4%

611

3.5%

4,435
11.9%

112,7443,614

323

17,355

4,813
571-2,46925

4.8%

10,666

13,637294

2,706
27,5364.1%

485-2,138134

11.0%

114,722
3.2%

Change (%)(From April 2024 to March 2025)

Profit margin
56,866

1.6%

Full-year forecast
Change

4,729

4.1%

ChangeChange (%)

Profit margin-6,253-11.0%

219,500-1,897-70.1%

7,800

8,321

30.2%

131,000

1,137

351.5%

4,600

-375

-3.5%

36,500

-14

-3.2%

400

-3,718-21.4%

51,000-316-51.7%

1,300

378

8.5%

21,000

85
-330
-109

17.6%

1,900
-14,000
0-1,977-1.7%445,000-1,115-23.6%

16,000

3.6%

3.5%

1.1%

2.5%

9.0%

3.6%

-6,058-2.7%-2,000-20.4%

19,808

17.8%

1,110

31.8%

-4,719-11.4%-1,675-80.7%-13,177-20.5%-916-41.3%

4,313

25.9%

462
-4,831-193

32.2%-4,664-1.0%-3,213-16.7%