FLASH REPORT
November. 4, 2022
Company name (official): KYB Corporation

URL https://www.kyb.co.jp/english/

Stock listing: Tokyo Stock Exchange (Prime Market)

Code number: 7242

Address of head office: 4-1, Hamamatsu-cho 2-chome, Minato-ku, Tokyo 105-5128, Japan

Telephone: +81 3- 3435- 3580

For further information, please contact : Tsuyoshi Matsuoka, Manager,
Public Relations & Investor Relations Sect., Executive Office Dept.
The following statements are an English-translation of the original Japanese-language document for your convenience.
In the case that there is any discrepancy between Japanese and English versions, Japanese version is assumed to be correct.

(All amounts are rounded to the nearest million yen, unless otherwise noted.)

1. Consolidated financial results for the six months ended September 30, 2022
( from April 1, 2022 to September 30, 2022 )(1) Consolidated operating results(Percentages indicate the change of the same period of the previous year)

Net sales
Six months ended

Millions of yen

Segment profit%

Millions of yen

Operating profit%

Millions of yen%

Profit before taxes
Millions of yen%

September 30, 2022

209,886

12.9

11,6920.2

14,826

7.5

14,535

14.7

September 30, 2021

185,882

33.9

11,667－

13,797－

12,674－Six months ended

Profit for the period

Profit attributable toowners of the parent

Comprehensive
income for the period

Millions of yen

Millions of yen

Millions of yen

%

%

%

Basic earnings
per share
Yen

September 30, 2022

11,42713.0

10,604

11.6

23,410114.1

396.69September 30, 2021

10,109

－

9,502

－

10,933－362.45

Diluted earnings
per share
Six months ended

Yen

September 30, 2022

396.65September 30, 2021－

*Segment profit is calculated by deducting cost of sales and selling, general and administrative expenses from sales.

(2) Consolidated financial position

As of
September 30, 2022
March 31, 2022

Total assets

Total equity

Equity attributable toowners of the parent

Millions of yen

Millions of yen

Millions of yen

443,738
434,187

181,217160,914173,602
153,411

Ratio of equity
Equity attributable toattributable toowners of the parent
owners of theper share
parent to total assets
%

39.1
35.3

Yen

6,296.94
5,508.47

2. Cash dividends
Annual cash dividends per share
End of firstquarter

End of second
quarter

End of third
quarterYear-end

Total

Yen

Yen

Yen

Yen

Yen

Previous fiscal year

－

45.00

－

60.00

105.00Current fiscal year

－

70.00
－

70.00

140.00Current fiscal year (forecast)*The above table shows dividends on common shares. Please refer to "(Reference) Dividends for Class Shares" forinformation regarding dividends on class shares, which are unlisted and have different rights from common shares.

3. Forecasts for the current fiscal year (April 1, 2022 to March 31, 2023)(Percentages indicate the change of the same period of the previous year)

Net sales

Millions of yen
Current fiscal year

Current fiscal year

442,000

Segment profit%

Millions of yen%

26,50013.8

Operating profit

Millions of yen

Profit for the period

Profitattributable toowners of the parent

Millions of yen

Millions of yen

21,700%20,400(9.2)

29,700

7.2%

Profit before taxes

Millions of yen

28,900(1.0)

Basic earnings
per share

%

Yen

(9.5)

761.88*Segment profit is calculated by deducting cost of sales and selling, general and administrative expenses from sales.

(Reference) Dividends for Class Shares

Dividends per share related to Class Shares with different rights from those of common shares are as follows.
Annual cash dividends per share
Class A Shares

End of firstquarter

End of second
quarter

End of third
quarterYear-end

Total

Yen

Yen

Yen

Yen

Yen

Previous fiscal year－

1,952,054.80－

3,739,726.00

5,691,780.80

Current fiscal year－

3,760,274.00－

3,739,726.00

7,500,000.00

Current fiscal year (forecast)* Number of Class A Shares issued are 125 shares. The Class A Shares were issued on 28 June 2021.
Dividend whose reference date is attributed during FY2022 is planned to be 937 million yen.

%
0.3

Consolidated Statements of Financial Position
KYB Corporation and its Consolidated Subsidiaries(Unit: Millions of yen)
As of March 31, 2022

As of September 30, 2022

AssetsCurrent assets:
Cash and cash equivalents

52,11842,803

Trade and other receivables

108,823

118,699

Inventories

66,11470,261Other current financial assets

2,755

3,974

Other current assets

10,611

10,566

Total current assets

240,421

246,302

159,803

162,329266

292

Intangible assets

3,549

3,468

Investments accounted for using the equity method

6,484

7,062

Other non-current financial assets

14,545

14,537

Other non-current assets

7,204

7,561

Deferred tax assets

1,916

2,187

193,766

197,436

434,187443,738

Non-current assets:
Property, plant and equipment
Goodwill

Total non-current assets
Total assets

(Unit: Millions of yen)
As of March 31, 2022

As of September 30, 2022

Liabilities and equity
Current liabilities:
Trade and other payables

81,737

77,145

Borrowings

65,81566,848

Income tax payables

3,168

2,369

Other current financial liabilities

30,49529,732

Provisions

13,92012,291Other current liabilities

3,237

1,953

Total current liabilities

198,371

190,337

Bonds and borrowings

25,041

23,383Liabilities for retirement benefits

4,629

4,759

Other non-current financial liabilities

27,83026,805

Provisions

8,612

8,058

716

625

Deferred tax liabilities

8,074

8,554

Total non-current liabilities

74,902

72,184273,273

262,521

Share capital

27,64827,648

Capital surplus

38,351

38,342Retained earnings

76,00784,496

Treasury shares

(605)

(582)

Other components of equity

12,01023,698

Total equity attributable to owners of the parent

153,411

173,602

7,503

7,616

Total equity

160,914

181,217

Total liabilities and equity

434,187443,738

Non-current liabilities:

Other non-current liabilities

Total liabilities
EquityEquity attributable to owners of the parent:

Non-controlling interests

Consolidated Statements of Income
KYB Corporation and its Consolidated Subsidiaries(Unit: Millions of yen)
For the six months
ended September 30, 2021
（Apr. 1 through Sep. 30, 2021)

For the six months
ended September 30, 2022
（Apr. 1 through Sep. 30, 2022)

Net sales

185,882

209,886

Cost of sales

147,857

168,648

Gross profit

38,02541,238Selling, general and administrative expenses

26,35829,545Equity in profit of affiliates

247

494

Other income

970

2,727

Other expenses

(913)

88

Operating profit

13,797

14,826

Finance income

373

516

Finance costs

1,496

806

Profit before taxes

12,674

14,535

Income tax expenses

2,565

3,108

Profit for the period

10,10911,427

9,502

10,604607

823

10,10911,427

Basic earnings per share (in yen)362.45396.69Diluted earnings per share (in yen)－

396.65

Profit attributable to:
Owners of the parent
Non-controlling interests
Profit for the period

Earnings per shareConsolidated Statements of Comprehensive Income
KYB Corporation and its Consolidated Subsidiaries(Unit: Millions of yen)
For the six months
ended September 30, 2021
（Apr. 1 through Sep. 30, 2021)

For the six months
ended September 30, 2022
（Apr. 1 through Sep. 30, 2022)

10,10911,427

Net changes in financial assets measured at fair value throughother comprehensive income

(4)

36

Remeasurements of defined benefit plans

12

(8)

Share of other comprehensive income of investments
accounted for using the equity method

(2)

(11)

Total

6

17

Exchange differences on translation of foreign operations

531

11,077

Share of other comprehensive income of investments
accounted for using the equity method

287

889

Total

818

11,966

Total other comprehensive income

824

11,983Comprehensive income for the period

10,933

23,41010,42622,177507

1,233

10,933

23,410

Profit for the period

Other comprehensive income:Items that will not be reclassified to profit or loss:

Items that may be reclassified to profit or loss:

Comprehensive income for the period attributable to:
Owners of the parent
Non-controlling interests
Comprehensive income for the period

Consolidated Statements of Changes in Equity
KYB Corporation and its Consolidated Subsidiaries(Unit: Millions of yen)
Share capital
Balance at April 1, 2021

Capital surplus

Retained earnings

Treasury shares

27,64829,41449,579(603)

Profit for the period

－

－

9,502

－

Other comprehensive income

－

－

－

－

Total comprehensive income for the period

－

－

9,502

－

6,250

6,250

－

－

－

(254)

－

－

Comprehensive income for the period:

Transactions with owners:
Contributions by and distributions to owners
in their capacity as owners:
Issuance of preference shares
Share issuance costs(6,250)

6,250

－

－

Acquisition of treasury shares

－

－

－

(1)

Disposal of treasury shares

－

－

－

－

Share-based payment transactions

－

－

－

－

Dividends of surplus－(1,916)－－

Transfer to retained earnings

－

－

(11)

－

Total contributions by and distributions to owners
in their capacity as owners－

10,330(11)(1)

Dividends of surplus

－

－

－

－

Total changes in equity interest of subsidiaries

－

－

－

－

Total transactions with owners－

10,330(11)(1)

Balance at September 30, 2021

27,64839,74559,070(604)

Balance at April 1, 2022

27,64838,351

76,007(605)

Profit for the period－－

10,604－

Other comprehensive income

－

－

－

－

Total comprehensive income for the period－－

10,604－Issuance of preference shares

－

－

－

－

Share issuance costs

－

－

－

－

Transfer of share capital to capital surplus

－

－

－

－

Acquisition of treasury shares

－

－

－

(1)

Disposal of treasury shares

－

(24)

－

24

Share-based payment transactions

－

15

－

－

Dividends of surplus－－(2,000)－Transfer to retained earnings

－

－

(115)

－

Total contributions by and distributions to owners
in their capacity as owners－(9)(2,115)23

Dividends of surplus

－

－

－

－

Total changes in equity interest of subsidiaries

－

－

－

－

－

(9)

(2,115)23

27,64838,342

84,496(582)

Transfer of share capital to capital surplus

Changes in equity interest of subsidiaries:

Comprehensive income for the period:

Transactions with owners:
Contributions by and distributions to owners
in their capacity as owners:

Changes in equity interest of subsidiaries:

Total transactions with owners
Balance at September 30, 2022

(Unit: Millions of yen)
Other components of equity

Net changes infinancial assets
Remeasurements
measured at fairof definedvalue throughbenefit plansother comprehensive income

Balance at April 1, 2021

3,805

－

Exchangedifferenceson translationof foreign
operations

Comprehensive
income for theyear attributableto ownersof the parent

Total
other
componentsof equity

840

4,645

110,683

Noncontrollinginterests

Total
equity6,043

116,726

10,109Comprehensive income for the period:
Profit for the period

－

－

－

－

9,502

607

Other comprehensive income

(4)

11

916

924

924

(100)

824

Total comprehensive income for the period

(4)

11

916

924

10,426507

10,933Issuance of preference shares

－

－

－

－

12,500－12,500Share issuance costs

－

－

－

－

(254)

－

(254)

Transfer of share capital to capital surplus

－

－

－

－

－

－

－

Acquisition of treasury shares

－

－

－

－

(1)

－

(1)

Disposal of treasury shares

－

－

－

－

－

－

－

Share-based payment transactions

－

－

－

－

－

－

－

Dividends of surplus

－

－

－

－

(1,916)－(1,916)

Transfer to retained earnings

22

(11)

－

11

－

－

－

Total contributions by and distributions to owners
in their capacity as owners

22

(11)

－

11

10,329－10,329Dividends of surplus

－

－

－

－

－

(303)

(303)

Total changes in equity interest of subsidiaries

－

－

－

－

－

(303)

(303)

Transactions with owners:
Contributions by and distributions to owners
in their capacity as owners:

Changes in equity interest of subsidiaries:

22

(11)

－

11

10,329(303)

10,027

Balance at September 30, 2021

3,823

－

1,756

5,580

131,438

6,248

137,685

Balance at April 1, 2022

3,108

－

8,902

12,010

153,411

7,503

160,914

Total transactions with owners

Comprehensive income for the period:
Profit for the period

－

－

－

－

10,604823

11,427

Other comprehensive income

36

(16)

11,553

11,573

11,573410

11,983

Total comprehensive income for the period

36

(16)

11,553

11,573

22,177

1,233

23,410Issuance of preference shares

－

－

－

－

－

－

－

Share issuance costs

－

－

－

－

－

－

－

Transfer of share capital to capital surplus

－

－

－

－

－

－

－

Acquisition of treasury shares

－

－

－

－

(1)

－

(1)

Disposal of treasury shares

－

－

－

－

－

－

－

Share-based payment transactions

－

－

－

－

15

－

15

Transactions with owners:
Contributions by and distributions to owners
in their capacity as owners:

Dividends of surplus

－

－

－

－

(2,000)－(2,000)Transfer to retained earnings

100

16

－

115

－

－

－

Total contributions by and distributions to owners
in their capacity as owners

100

16

－

115

(1,986)－(1,986)

－

－

－

－

－

(1,121)(1,121)(1,121)

Changes in equity interest of subsidiaries:
Dividends of surplus
Total changes in equity interest of subsidiaries

－

－

－

－

－

(1,121)

Total transactions with owners

100

16

－

115

(1,986)(1,121)(3,107)3,243－

20,45523,698

173,602

7,616

181,217

Balance at September 30, 2022

Consolidated Statements of Cash FlowsKYB Corporation and its Consolidated Subsidiaries

For the six months
ended September 30, 2021
（Apr. 1 through Sep. 30, 2021)(Unit: Millions of yen)
For the six months
ended September 30, 2022
（Apr. 1 through Sep. 30, 2022)

Profit before taxes

12,674

14,535

Depreciation and amortization

9,293

9,219

Impairment losses

163

437

Reversal gain of impairment losses

(53)

(15)

Gain on sales of fixed asset

(16)

(59)

(17)

(152)

(6,307)(3,627)

Finance income

(373)

(516)

Finance costs

1,496

806

Equity in profit of affiliates

(247)

(494)

(Increase) decrease in trade and other receivables

1,613(4,047)(Increase) decrease in inventories(4,992)

932

Increase (decrease) in trade and other payables(5,469)(7,551)

Other

909

(1,562)

Subtotal

8,673

7,906

Interest received

129

200

Dividends received

446

960

(1,205)(654)

Income taxes paid

(217)

(3,520)

Payments of loss associated with the Anti-Trust law(529)(1,095)

Net cash from operating activities

7,297

3,796

(1,510)

(996)

99

－

(4,521)(6,046)

Proceeds from sales of property, plant and equipment

85

105

Payment for purchases of other financial assets

(17)

(2)

Proceeds from sale of other financial assets

211

200

Other

(244)

(186)

(5,896)(6,926)

Cash flows from operating activities:

Increase (decrease) in assets and liabilities for retirement
benefits
Increase (decrease) in provisions for product warranties

Interest paid

Cash flows from investing activities:
Payment into time deposits
Proceeds from withdrawal of time deposits
Payment for purchases of property, plant and equipment

Net cash flows from investing activities

For the six months
ended September 30, 2021
（Apr. 1 through Sep. 30, 2021)(Unit: Millions of yen)
For the six months
ended September 30, 2022
（Apr. 1 through Sep. 30, 2022)

Net increase (decrease) in short-term borrowings

5,138

(426)

Repayments of lease liabilities(2,862)(3,177)

Proceeds from long-term borrowings

11,941

1,202

Repayment of long-term borrowings(35,882)(4,457)

Proceeds from issuance of bonds

6,966

－

Proceeds from sale and lease back

1,603

－

Proceeds from issuance of preference shares

12,271

－

(1)

(1)

(1,916)(2,000)

Dividends paid to non-controlling interests(303)(1,121)

Net cash flows from financing activities(3,044)(9,979)Effect of changes in foreign exchange rates

355

3,794

Net increase (decrease) in cash and cash equivalents(1,288)(9,315)

Cash and cash equivalents at beginning of period

68,70052,118Cash and cash equivalents at end of period

67,41242,803

Cash flows from financing activities:

Payments for purchase of treasury shares
Dividends paid

Segment InformationKYB Corporation and its Consolidated Subsidiaries

For the six months ended September 30, 2021
(Unit: Millions of yen)
Reportable segment
Automotive
Hydraulic
Aircraftcomponents components Components

Others(Note 1)

Adjustment
Consolidated(Note 2)

Total

Subtotal

Net sales:
Outside customers
Intersegment sales and transfers
Total
Segment profit (loss)

113,475

65,468

1,910

180,853

5,029

185,882

－

475

396

－

870

41

911

(911)

－

113,950

65,864

1,910

181,723

5,069

186,793(911)

185,882
11,667

185,882

7,248

5,738

(1,879)

11,107526

11,63334

Equity in profit of affiliates

247

－

－

247

－

247

－

247

Other income and expenses (net)

(174)

2,094

(23)

1,897

(14)

1,883

－

1,883

Operating profit (loss)

7,321

7,832

(1,902)

13,251

512

13,76334

13,797

Finance income and costs (net)(1,123)

Profit before taxes

12,674

Notes: 1. “Others” includes “Special-purpose Vehicles”and "Electronic Equipment” that are not included in the three of reportable segment.
2. ¥34 million of adjustment of segment profit is the elimination of intersegment transactions.

For the six months ended September 30, 2022
(Unit: Millions of yen)
Reportable segment
Automotive
Hydraulic
Aircraftcomponents components Components

Others(Note 1)

Adjustment
Consolidated(Note 2)

Total

Subtotal

Net sales:
135,746

66,9772,546

205,269

4,617

209,886

－

468

360

－

828

39

866

(866)

－

136,214

67,3362,546

206,097

4,656

210,752(866)

209,886

8,374

3,786

(697)

11,462

177

11,64053

11,692

494

－

－

494

－

494

－

494

Other income and expenses (net)

1,474

1,159

(11)

2,622

17

2,639

－

2,639

Operating profit (loss)

10,342

4,944

(708)

14,578

195

14,77353

14,826

Outside customers
Intersegment sales and transfers
Total
Segment profit (loss)
Equity in profit of affiliates

209,886

Finance income and costs (net)Profit before taxes
Notes: 1. “Others” includes “Special-purpose Vehicles”and "Electronic Equipment” that are not included in the three of reportable segment.
2. ¥53 million of adjustment of segment profit is the elimination of intersegment transactions.

*With regard to the changes of reportable segment
We have included "Railroad equipment" related product which was a part of "Hydraulic Components" in the "Automotive Components" from the first quarter,
as a result of reviewing the segment management classification due to the reorganization of the KAYABA Group.
Financial information for the same period of the previous fiscal year has been revised to reflect this change.

(290)
14,535

4-Nov-22
KYB Corporation

Second Quarter of FY2022 Financial Results Supplementary Information
1．Breakdown of sales
FY2021 2Q
Sales
composition
ratio（¥ million）

FY2022 2Q
Sales
composition
ratio（¥ million）

Differences
Sales
composition
ratio（¥ million）

113,475

61.0%

135,74664.7%

22,271

19.6%

Shock absorber for automobiles

80,991

43.6%

99,01947.2%

18,02822.3%

Shock absorber for motorcycles

15,772

8.5%

20,851

9.9%

5,079

32.2%

Hydraulic equipment for automobiles

11,880

6.4%

10,7395.1%△ 1,142-9.6%

Others

4,832

2.6%

5,138

2.4%

306

6.3%

65,46835.2%

66,977

31.9%

1,508

2.3%

Hydraulic equipment for industrial use

61,60933.1%

63,879

30.4%

2,271

3.7%

System products

2,060

1.1%

1,364

0.6%

△ 697

-33.8%

Others

1,799

1.0%

1,733

0.8%

△ 66

-3.7%

1,910

1.0%

2,546

1.2%

637

33.4%

1,910

1.0%

2,546

1.2%

637

33.4%

5,029

2.7%

4,617

2.2%

△ 412

-8.2%

Special-purpose Vehicles

4,411

2.4%

4,050

1.9%

△ 360

-8.2%

Electronic Equipment, etc.

618

0.3%

567

0.3%

△ 52

-8.4%

209,886 100.0%

24,004

12.9%

Automotive Components

Hydraulic Components

Aircraft Components
Aircraft Components

Special-purpose Vehicles and Electronic Equipment, etc.

Total

185,882 100.0%

2．FOREX Rate（\）
FY2021
Average FOREX Rate

Apr-Jun 2021

JPY/USD
JPY/EUR
JPY/CNY

Apr-Sep 2021

109.49131.9516.95

FY2022

Apr-Dec 2021

109.80130.8916.98

Full year

111.10130.61
17.25

Apr-Jun 2022

112.38130.56
17.51

Apr-Sep 2022

129.57138.1019.57

133.97138.72
19.88（\）

FOREX Rate prevailingat the end of quarter

FY202130 Jun 2021

JPY/USD
JPY/EUR
JPY/CNY

30 Sep 2021

110.61131.6317.12

FY202231 Dec 2021

111.95129.9017.29

31 Mar 2022

115.02130.5218.07

30 Jun 2022

122.41136.77
19.26

30 Sep 2022

136.69142.6520.39

144.81142.32
20.37

3．Segment sales (*2)（\ million）
FY2021
1Q
Automotive Components
Hydraulic Components
Aircraft Components
Special-purpose Vehicles andElectronic Equipment, etc.
Total

2Q

FY2022
3Q

4Q

1Q

2Q

58,282
33,173
1,016

55,19332,295893

60,03936,619988

64,26934,548757

64,40232,3791,476

71,344
34,598
1,070

2,447

2,581

2,606

2,652

2,151

2,466

94,91990,963

100,253

102,226

100,409109,477

4．Segment operating income (*1)(*2)（\ million）
FY2021
1Q
Automotive Components
Hydraulic Components
Aircraft Components
Special-purpose Vehicles andElectronic Equipment etc.
Total

2Q
3,395
3,178
△ 526

FY2022
3Q

3,874
2,572
△ 1,353

4Q
3,599
3,743
△ 297

1Q
5,110
2,283
△ 1,785

2Q
3,935
1,898
△ 146

4,473
1,905
△ 551

333

194

198

193

△9

187

6,380

5,287

7,243

5,802

5,679

6,014

5．Capital Expenditure, Depreciation（\ million）
FY2021
1Q
Capital Expenditure
Depreciation Expenses

2Q
4,217
4,713

FY2022
3Q

2,798
4,580

4Q
3,262
4,647

1Q
3,737
4,374

2Q
2,788
4,587

3,764
4,630

6． R&D Expenses（\ million）
FY2021
1Q
R&D Expenses

2Q
1,289

FY2022
3Q

1,628

4Q
1,337

1Q
1,514

2Q
1,526

1,524

7．Foreign Exchange gain or loss (*3)（\ million）
FY2021
1Q
Other Income / Other Expenses
Finance Income / Finance Costs
Total

2Q
678
65
743

FY2022
3Q

△ 465
△ 203
△ 668

4Q
136
189
325

1Q
1,229
376
1,605

2Q
1,242
△ 54
1,188

(*1) “Segment operating income”, which is described above, is different from “Segment profits (losses)” which is described in “Segment Information”
section in the Flash Report. “Segment operating income” amount includes “Adjustment” amount, which is described in the Flash Report”.
(*2) With regard to the changes of reportable segment
We have included "Railroad equipment" related product which was a part of "Hydraulic Components" in the "Automotive Components" from the current first quarter,
as a result of reviewing the segment management classification due to the reorganization of the KYB Group.
And also, conventionally, "System products" was one of reportable segment.
However, as a result of reviewing the segment management classification due to the reorganization of the KYB Group,
we have included it in the "Hydraulic Components" from the previous second quarter.
Financial information for the same period of the previous fiscal year has been revised to reflect these changes.

(*3) “Foreign Exchange Gain or Loss” ,which is described above, comes from the amount of foreign exchange gain or loss in “Other income” ,“Other expense”, “Finance income” and “Finance costs” in the Consolidated Statements of Income. Foreign exchange gain is written as plus
and foreign exchange loss is written as minus.

761
△ 63
698