Note: This document has been translated from the Japanese original for reference purposes only. In the event ofany discrepancy between this translated document and the Japanese original, the original shall prevail.

February 2, 2024

Consolidated Financial Results
for the Nine Months Ended December 31, 2023
(Under Japanese GAAP)
Company name:
YUASA TRADING CO., LTD.
Listing:
Tokyo Stock Exchange
Securities code:
8074
URL:
https://www.yuasa.co.jp/english/index.html
Representative:
Hiroyuki Tamura, Representative Director, President & CEO
Inquiries:
Hideki Tani, General Manager Finance Dept.
Telephone:+81-3-6369-1366
Scheduled date to file quarterly securities report:
February 6, 2024
Scheduled date to commence dividend payments:–
Preparation of supplementary material on quarterly financial results: None
Holding of quarterly financial results briefing:
None(Yen amounts are rounded down to millions, unless otherwise noted.)

1. Consolidated financial results for the nine months ended December 31, 2023 (from April 1, 2023 to
December 31, 2023)(1) Consolidated operating results (cumulative)
Net sales
Nine months ended(Percentages indicate year-on-year changes.)

Operating profit

Millions of yen%

Millions of yen

Profit attributable toowners of parent

Ordinary profit%

Millions of yen%

Millions of yen%

December 31, 2023

376,985

4.3

9,385

10.6

10,104

10.6

8,920

54.0

December 31, 2022

361,511

10.8

8,484

22.2

9,133

40.2

5,794

23.3

Note: Comprehensive income

For the nine months ended December 31, 2023:
For the nine months ended December 31, 2022:

Basic earnings
per share
Nine months ended¥8,015 million¥5,634 million[42.3%][105.3%]

Diluted earnings
per share
Yen

Yen

December 31, 2023

424.23422.56

December 31, 2022

266.16264.93(2) Consolidated financial position
Total assets
As of

Net assets

Equity-to-asset ratio

Millions of yen

Millions of yen

December 31, 2023

285,778

99,208

34.5

March 31, 2023

271,218

95,24034.9

Reference:

EquityAs of December 31, 2023:
As of March 31, 2023:¥98,665 million¥94,677 million%

2. Cash dividends
Annual dividends per shareFirst quarter-end
Fiscal year ended
March 31, 2023
Fiscal year ending
March 31, 2024

Second quarter-end

Third quarter-end

Yen

Yen

Yen

Fiscal year-end
Yen

Yen

–

60.00

–

80.00

140.00

–

86.00

–
96.00

182.00Fiscal year ending
March 31, 2024
(Forecast)

Total

Note: Revisions to the forecast of cash dividends most recently announced: None

3. Consolidated earnings forecasts for the fiscal year ending March 31, 2024 (from April 1, 2023 to March
31, 2024)(Percentages indicate year-on-year changes.)
Net sales
Millions of yen

Full year

523,000

Operating profit

Profit attributable toowners of parent

Ordinary profit% Millions of yen% Millions of yen% Millions of yen

3.6

5.5

6.6

15,400Note: Revisions to the earnings forecasts most recently announced: None

16,40012,400

Basic earnings
per share

%

Yen

23.0

589.32

* Notes(1) Changes in significant subsidiaries during the period (changes in specified subsidiaries resulting in the change
in scope of consolidation): None
(2) Adoption of accounting treatment specific to the preparation of quarterly consolidated financial statements:
None(3) Changes in accounting policies, changes in accounting estimates, and restatement(i) Changes in accounting policies due to revisions to accounting standards and other regulations: None(ii) Changes in accounting policies due to other reasons: None(iii) Changes in accounting estimates: None(iv) Restatement: None
(4) Number of issued shares (common shares)(i)

Total number of issued shares at the end of the period (including treasury shares)
As of December 31, 2023

22,100,000 shares

As of March 31, 2023

23,155,882 shares(ii) Number of treasury shares at the end of the period
As of December 31, 2023

1,098,683 shares

As of March 31, 2023

2,041,301 shares(iii) Average number of shares outstanding during the period (cumulative from the beginning of the fiscal
year)
Nine months ended December 31, 2023

21,027,920 shares

Nine months ended December 31, 2022

21,771,000 shares

Note: The shares of the Company held by the “Board Incentive Plan (BIP) Trust” are included in the number of treasury
shares at the end of the period (227,716 shares as of December 31, 2023 and 171,096 shares as of March 31,2023). Also, the shares of the Company held by the “Board Incentive Plan (BIP) Trust” are included in treasury
shares that are deducted for calculation of the average number of shares outstanding during the period(cumulative from the beginning of the fiscal year) (199,387 shares for the nine months ended December 31, 2023
and 177,036 shares for the nine months ended December 31, 2022).

* Quarterly financial results reports are exempt from quarterly review conducted by certified public accountants
or an audit corporation.
* Proper use of earnings forecasts, and other special matters(Caution regarding forward-looking statements)
The forward-looking statements, including earnings forecasts, contained in this document are based on
information currently available to the Company and on certain assumptions deemed to be reasonable. Thesestatements do not purport that the Company pledges to realize such statements. Actual business and otherresults may differ substantially due to various factors. For the suppositions that form the assumptions forearnings forecasts and cautions concerning the use thereof, please refer to “1. Qualitative Information
Regarding Results for the First Nine Months, (3) Explanation of consolidated earnings forecasts and otherforward-looking statements” on page 5 of the attached material.

Attached Materials
1.

Qualitative Information Regarding Results for the First Nine Months ....................................................................... 2(1) Explanation of operating results.............................................................................................................................. 2(2) Explanation of financial position ............................................................................................................................ 5(3) Explanation of consolidated earnings forecasts and other forward-looking statements .......................................... 5

2.

Quarterly Consolidated Financial Statements and Significant Notes Thereto ............................................................ 6(1) Consolidated balance sheet ..................................................................................................................................... 6(2) Consolidated statement of income and consolidated statement of comprehensive income .................................... 8
Consolidated statement of income (cumulative) ..................................................................................................... 8
Consolidated statement of comprehensive income (cumulative) ............................................................................ 9(3) Notes to quarterly consolidated financial statements ............................................................................................ 10
Notes on going concern assumption...................................................................................................................... 10
Notes on significant changes in the amount of shareholders’ equity .................................................................... 10
Segment information ............................................................................................................................................. 111

1. Qualitative Information Regarding Results for the First Nine Months(1) Explanation of operating results
During the nine months under review (April 1, 2023 to December 31, 2023), despite progress toward thenormalization of economic activities and gradual recovery in the business climate, the outlook for theJapanese economy remained uncertain due to an increase of geopolitical risks such as the protracted situationin Ukraine, soaring raw material and energy prices, as well as the depreciation of the yen.
In the industrial field, production was normalized in automobile-related industries as the effects ofsemiconductor shortages waned, and demand for capital investment remained steady, particularly for EV
products. In semiconductor-related industries, on the other hand, there was still a trend of cautiousness
toward capital investment due to a sense that demand was fulfilled. In the housing and construction field,
public and private capital investment remained firm, but new housing starts, mainly for owner-occupied
houses, continued to remain weak.
In overseas countries, although prices of parts and raw materials and personnel expenses increased, theeconomies of the U.S. and Southeast Asian countries such as Thailand, India, and Indonesia showed a trend
toward gradual recovery. In China, movement toward economic recovery came to a standstill.
Under these circumstances, the Group has launched a new medium-term management plan, “Growing
Together 2026,” covering the three-year period from April 2023 to March 2026, which constitutes the thirdand final stage of realizing the “Yuasa Vision 360,” our ideal state for the 360th anniversary of theCompany’s founding in 2026. We will promote business reforms based on “corporate culture reform,” “DX
promotion,” and “sustainability promotion,” with the aim of enhancing corporate value by developing
market-out businesses addressing both sales of products and sales of services in the fields of manufacturing,home building, environment building, and town building.
Under “corporate culture reform,” we are advancing the YUASA PRIDE Project (Work Satisfaction
Increasing & Regard for the Individual Project) to increase employee engagement and develop humanresources capable of solving social issues through “Tsunagu” value-chain innovation. Also, as a measure forcreating environments that make it easy to demonstrate comprehensive strengths, challenges andcommunication, we have proceeded with a project for the construction of a new head office.
Under “DX promotion,” we will support business transformation by providing reskilling opportunities for
employees to build a data utilization infrastructure, develop DX talent, reform business processes, and create
innovation.
Under “Sustainability promotion,” we aim to reduce the Group’s CO2 emissions by 30% by March 2026,
and accelerate the carbon neutral promotion business. In addition, we join the “GX League,” which is
working toward the transformation of economic and social systems, and we are using the Joint Crediting
Mechanism (JCM) to deliver our first solar power generation system outside of Asia in Mexico as part of our
proposals for carbon neutrality overseas.
As part of the promotion of our growth strategy, we expanded sales of robots and automation equipment, andjointly developed the “Unmanned Concrete Sprinkling and Curing Management Robot.” Also, we started
sale of “Line Automation Using a Rewritable Laser System” and GCCP (Green control for coolant pump)that was developed in-house and for which we have already obtained a patent. Furthermore, in November
2023, the Company launched the “AI Appearance Inspection System F[ai]ND OUT Series EX,” which wasdeveloped jointly with connectome.design inc., an equity method affiliate of the Company, to realize greater
automation and efficiency in product inspection. These wide-ranging solutions were presented at the
INTERNATIONAL ROBOT EXHIBITION 2023.
In addition, a new South Asia Block was established to strengthen the overseas strategy and strengthen thesystem to exercise total coordination skills overseas.
As a result, consolidated net sales for the nine months under review increased 4.3% from the same period of
the previous year, to ¥376,985 million. In terms of profits, operating profit was ¥9,385 million (up 10.6%
year on year), ordinary profit was ¥10,104 million (up 10.6% year on year), and profit attributable to ownersof parent was ¥8,920 million (up 54.0% year on year) mainly due to the recording of gain on return ofretirement benefit trust.

2

Results by reportable segment are as follows:<Industrial Equipment & Tools Division>
In the Industrial Equipment & Tools Division, although plant utilization rates in the automotive industry
recovered, sales of mainstay cutting tools and other products were sluggish due to the impact of inventory
adjustments at production sites. Meanwhile, demand for carbon neutral-related energy-saving products
remained strong.
Under these circumstances, we focused on infrastructure environment proposals such as local 5G solutions
aimed at realizing smart factories that aim to solve the issue of labor shortages and improve productivity
through labor-saving and automation, resulting in net sales of ¥58,169 million (up 4.2% year-on-year).
<Machine Tools Division>
In the Machine Tools Division, capital investment demand increased in the automobile-related industry,
particularly for EV-related components, and there was also a demand for capital investment in robotics,
construction machinery and defense-related industries. In semiconductor-related industries, on the other
hand, the demand for machine tools remained sluggish due to a sense that demand was fulfilled. Overseas,
although business conditions remained sluggish in the Chinese market they showed resilience in the USA
and South-East Asian countries.
Under these circumstances, net sales were ¥84,609 million (up 3.7% year on year) as a result of theCompany strengthening its proposals for carbon neutrality, automation and unmanned solutions, including“Robo Combo,” the Company’s original robot system, through exhibitions and other events in Japan, as wellas efforts to expand sales of carbon neutral-related products overseas.
<Housing, Air & Fluidic Control Systems Division>
In the Housing, Air & Fluidic Control Systems Division, while the number of new owner-occupied housing
remained weak, demand for remodeling remained firm, and housing fixtures, pipes/joints products andequipment related to air conditioning also moved solidly. In addition, in response to growing interest in
carbon neutrality, etc., demand in the renewable energy field grew and sales of solar panels and storage
batteries were on a firm trend.
Under these circumstances, net sales were ¥136,779 million (up 8.3% year on year) as a result of efforts to
expand sales of mid- to high-end models in housing fixtures and equipment related to air conditioning, andto strengthen system proposals and engineering functions in the renewable energy sector.
<Building Supplies & Exterior Division>
For the Building Supplies & Exterior Division, sales of building hardware and exterior products centered on
fences remained strong due to an increase in redevelopment projects and condominium and hotel
construction, mainly in the Tokyo metropolitan area, as well as an increase in the construction of logistics
facilities. Publics works investment also demonstrated underlying strength, particularly for products forcountermeasures against natural disasters and traffic accidents.
Under these circumstances, net sales were ¥39,196 million (up 5.5% year on year) as a result of the divisionfocusing on proposing and expanding sales of resilience products such as bollards with flooding sensors andwater stop plates, the “SAI-GATE” vehicle number authentication gates for improved security and laborsaving, and pedestrian protection measures including protective fences and impact-resistant bollards, andfabrication hardware related to construction.
<Construction Machines Division>
For the Construction Machines Division, private capital investment remained steady, along with public
works projects such as infrastructure development and disaster prevention/mitigation works. On the other
hand, we continued to see soaring material price, construction delays due to a shortage of construction
skilled workers, and long delivery times for construction equipment.
Under these circumstances, the Company expanded sales of CO2 visualization products for construction
sites, strengthened its proposals of solutions for safe construction at construction and agricultural sites and3

AI image analysis technology for labor saving and efficiency improvement, and expanded sales of products
imported from overseas, while actively proposing disaster prevention and disaster mitigation products togovernment agencies. In addition, we strove to expand our used construction and agricultural machines
auction business, and enhanced container house manufacturing, and construction machines maintenance andrental functions, resulting in net sales of ¥27,812 million (up 3.5% year on year).
<Energy Division>
In the Energy Division, amid a decline in demand for gasoline due to the spread of fuel-efficient vehicles, thedomestic market stabilized mainly due to the continuation of government fuel oil subsidies.
Under these circumstances, the gas station retail business, which operates mainly in the Tokai region,
continued to work to strengthen car care services such as car washing, automobile inspections, and coatings.
In addition, we made efforts to strengthen sales of marine fuel in the Keihin area, resulting in net sales of¥14,470 million (up 0.3% year on year).
<Others>
In other segments, in the consumer goods business, sales of winter seasonal household appliances were
weak, affected by a warm winter and other factors. In the e-commerce and mail-order businesses, we
actively introduced new products, mainly household appliances, in response to consumer needs. In the wood
products business, the number of new housing starts remained weak and demand for both imported anddomestic timber was sluggish. Despite focusing on sales of non-housing products and building new sales
networks for domestic timber, as well as strengthening efforts to develop private-brand products, sales were¥15,946 million (down 17.2% year on year).

4(2) Explanation of financial position
As of December 31, 2023, total assets were ¥285,778 million, an increase of ¥14,560 million from the end of
the previous fiscal year. This was primarily due to increases in land of ¥31,289 million and other current
assets of ¥7,711 million, despite decreases in cash and deposits of ¥14,003 million and notes and accounts
receivable - trade, and contract assets of ¥11,022 million.
Total liabilities were ¥186,570 million, an increase of ¥10,592 million from the end of the previous fiscal
year. This was primarily due to increases in other current liabilities of ¥11,342 million, electronicallyrecorded obligations - operating of ¥9,260 million and long-term borrowings of ¥3,425 million, despite
decreases in notes and accounts payable - trade of ¥8,866 million and income taxes payable of ¥4,731
million.
Total net assets increased by ¥3,967 million from the end of the previous fiscal year, to ¥99,208 million. Thiswas mainly due to an increase of ¥2,754 million in retained earnings and cancellation of treasury shares of¥2,231 million while there was a decrease of ¥2,333 million in remeasurements of defined benefit plans due
to partial termination of the retirement benefit trust.
As a result, the equity-to-asset ratio was 34.5% (34.9% at the end of the previous fiscal year).
(3) Explanation of consolidated earnings forecasts and other forward-looking statements
Regarding the consolidated earnings forecasts for the fiscal year ending March 31, 2024, the earnings
forecasts are unchanged from the announcement in the “Notice Concerning Revisions to Full-Year
Consolidated Earnings Forecasts and Dividend Forecasts for the Fiscal Year Ending March 31, 2024” dated
November 13, 2023.
Furthermore, the earnings forecasts were created based on information which is currently available on the
day of the announcement, and the actual performance and results may differ from the forecast values andoutlook.

5

2. Quarterly Consolidated Financial Statements and Significant Notes Thereto(1) Consolidated balance sheet(Millions of yen)
As of March 31, 2023
AssetsCurrent assets
Cash and deposits
Notes and accounts receivable - trade, and contract
assetsElectronically recorded monetary claims - operating
Inventories
Other
Allowance for doubtful accounts
Total current assets
Non-current assets
Property, plant and equipment
Land
Other, net
Total property, plant and equipment
Intangible assets
Goodwill
Other
Total intangible assets
Investments and other assets
Other
Allowance for doubtful accounts
Total investments and other assets
Total non-current assets
Total assets

6

As of December 31, 2023

52,44838,445

121,334

110,31130,15718,4803,667(89)225,997

36,70621,991
11,378(87)
218,744

7,774
6,325
14,09939,0635,300
44,364

1,369
1,305
2,675

921
3,279
4,201

28,787(341)
28,44545,220271,218

18,809(341)
18,467
67,034
285,778(Millions of yen)
As of March 31, 2023
Liabilities
Current liabilities
Notes and accounts payable - trade
Electronically recorded obligations - operating
Short-term borrowings
Income taxes payable
Provision for bonuses
Provision for bonuses for directors (and otherofficers)
Other
Total current liabilities
Non-current liabilities
Long-term borrowings
Provision for share awards
Provision for share awards for directors (and otherofficers)
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
Deferred gains or losses on hedges
Foreign currency translation adjustment
Remeasurements of defined benefit plans
Total accumulated other comprehensive income
Share acquisition rights
Non-controlling interests
Total net assets
Total liabilities and net assets

7

As of December 31, 2023

98,68451,443
3,273
5,682
2,960

89,81860,704
4,092
950
1,475

77

–

8,401
170,523

19,744
176,785

417
227

3,843
255

180

182

1,070
3,557
5,454
175,977

1,065
4,438
9,785
186,570

20,644
6,837
67,273(5,301)89,453

20,644
6,753
70,027(3,069)94,356

2,349
(96)
505
2,465
5,224
165
397
95,240271,218

3,233
(64)
1,009
131
4,309
145
397
99,208285,778

(2) Consolidated statement of income and consolidated statement of comprehensive income
Consolidated statement of income (cumulative)(Millions of yen)
Nine months ended
December 31, 2022
Net sales
Cost of sales
Gross profit
Selling, general and administrative expenses
Operating profit
Non-operating income
Interest income
Dividend income
Other
Total non-operating income
Non-operating expenses
Interest expenses
Other
Total non-operating expenses
Ordinary profit
Extraordinary income
Gain on sale of non-current assets
Gain on sale of investment securities
Gain on liquidation of subsidiaries and associates
Gain on return of retirement benefit trust
Total extraordinary income
Extraordinary losses
Loss on sale of non-current assets
Loss on retirement of non-current assets
Loss on valuation of investment securities
Loss on liquidation of subsidiaries and associates
Total extraordinary losses
Profit before income taxes
Income taxes
ProfitProfit attributable to non-controlling interests
Profit attributable to owners of parent

8

Nine months ended
December 31, 2023

361,511324,167
37,344
28,8608,484

376,985
336,099
40,88531,500
9,385

1,184
214
162
1,561

1,183
256
212
1,652

762
150
912
9,133

793
140
933
10,104

3
0
–
–
3

2
31
19
3,255
3,308

23
6
4
5
39
9,096
3,287
5,808
14
5,794

101
0
–
–
101
13,311
4,381
8,930
9
8,920

Consolidated statement of comprehensive income (cumulative)(Millions of yen)
Nine months ended
December 31, 2022
ProfitOther comprehensive income
Valuation difference on available-for-sale securities
Deferred gains or losses on hedges
Foreign currency translation adjustment
Remeasurements of defined benefit plans, net of tax
Total other comprehensive income
Comprehensive income
Comprehensive income attributable toComprehensive income attributable to owners of parent
Comprehensive income attributable to non-controllinginterests

9

Nine months ended
December 31, 2023

5,808

8,930

(42)
(249)
770
(652)
(174)
5,634

884
31
503
(2,333)
(914)
8,015

5,618

8,005

15

9

(3) Notes to quarterly consolidated financial statements
Notes on going concern assumption
No item to report.
Notes on significant changes in the amount of shareholders’ equity(Cancellation of treasury shares)
Based on the resolution of the Board Directors meeting held on May 12, 2023, the Company cancelled
1,055,882 treasury shares on May 31, 2023. As a result, during the nine months ended December 31, 2023,
capital surplus decreased by ¥83 million, retained earnings decreased by ¥2,627 million, and treasury shares
decreased by ¥2,710 million.

10

Segment information
I.

Nine months ended December 31, 2022 (from April 1, 2022 to December 31, 2022)
1. Information on the amount of net sales and profit/loss for each reportable segment(Millions of yen)
Reportable segments
Housing,
Air &Building
Construction
Fluidic Supplies &Machines
Control
Exterior
Systems

EnergyTotal

Others(Note 1)

Total

Adjustment(Note 2)

Amount recorded in
the quarterly
consolidated
statement of income(Note 3)

Industrial
Equipment& Tools

MachineTools

Net sales
Sales to externalcustomers
Intersegment sales
or transfers

55,84381,595

126,332

37,164

26,884

14,425342,246

19,265361,511–

361,511

9,584

3,454

6,466

3,743

3,224

32

26,505

270

26,775(26,775)–

Total

65,42785,050132,798

40,90830,10814,457368,751

19,535388,287(26,775)

361,511

Segment profit

1,482

3,345

3,836

1,478

789

183

11,11569

11,185(2,700)8,484

Notes:

1. The classification “Others” is a segment of business not included in the reportable segments and includes businesses
selling lifestyle-related products and wood products.
2. The adjustment of the segment profit of negative ¥2,700 million represents mainly costs related to the administration
division of the Company that has not been attributed to a reportable segment.
3. Segment profit is adjusted to operating profit as recorded on the quarterly consolidated statement of income.

2. Information on impairment losses on non-current assets, goodwill, etc. for each reportable segment
No item to report.

II. Nine months ended December 31, 2023 (from April 1, 2023 to December 31, 2023)
1. Information on the amount of net sales and profit/loss for each reportable segment(Millions of yen)
Reportable segments
Housing,
Air &Building
Construction
Fluidic Supplies &Machines
Control
Exterior
Systems

EnergyTotal

Others(Note 1)

Total

Adjustment(Note 2)

Amount recorded in
the quarterly
consolidated
statement of income(Note 3)

Industrial
Equipment& Tools

MachineTools

58,16984,609136,779

39,196

27,812

14,470361,038

15,946

376,985–

376,985

10,846

4,080

8,182

4,150

3,886

33

31,179300

31,480(31,480)–

Total

69,016

88,689144,962

43,346

31,69914,504392,218

16,247

408,465(31,480)

376,985

Segment profit

1,538

3,484

4,963

1,373

755

143

12,258237

12,496(3,111)

9,385

Net sales
Sales to externalcustomers
Intersegment sales
or transfers

Notes:

1. The classification “Others” is a segment of business not included in the reportable segments and includes businesses
selling lifestyle-related products and wood products.
2. The adjustment of the segment profit of negative ¥3,111 million represents mainly costs related to the administration
division of the Company that has not been attributed to a reportable segment.
3. Segment profit is adjusted to operating profit as recorded on the quarterly consolidated statement of income.

2. Information on impairment losses on non-current assets, goodwill, etc. for each reportable segment
No item to report.

11