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

August 4, 2023

Consolidated Financial Results
for the Three Months Ended June 30, 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:
August 8, 2023
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 three months ended June 30, 2023 (from April 1, 2023 to June 30,2023)(1) Consolidated operating results (cumulative)
Net sales
Three months ended(Percentages indicate year-on-year changes.)

Operating profit

Profit attributable toowners of parent

Ordinary profit

Millions of yen%

Millions of yen%

Millions of yen%

Millions of yen%

June 30, 2023

110,721

1.3

1,477

3.6

1,707

2.3

3,334

222.3

June 30, 2022

109,314

15.2

1,425

71.1

1,669

47.2

1,034

41.2

Note: Comprehensive income

For the three months ended June 30, 2023:
For the three months ended June 30, 2022:

Basic earnings
per share
Three months ended¥2,347 million¥906 million[159.1%][311.2%]

Diluted earnings
per share
Yen

Yen

June 30, 2023

158.40157.71

June 30, 2022

46.94

46.68

(2) Consolidated financial position
Total assets
As of

Net assets

Equity-to-asset ratio

Millions of yen

Millions of yen

June 30, 2023

259,048

95,612

36.7

March 31, 2023

271,218

95,24034.9

Reference:

EquityAs of June 30, 2023:
As of March 31, 2023:¥95,061 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

Total
Yen

–

60.00

–

80.00

140.0086.00

172.00–Fiscal year ending
March 31, 2024
(Forecast)

86.00

–

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

Operating profit% Millions of yen

Profit attributable toowners of parent

Ordinary profit% Millions of yen% Millions of yen

Basic earnings
per share%

Yen

Six months ending
September 30, 2023

252,000

7.7

5,900

14.9

6,400

12.6

6,300

72.1

300.55Full year

523,000

3.6

15,4005.5

16,4006.6

11,70016.1

558.17

Note: Revisions to the earnings forecasts most recently announced: None

* 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 June 30, 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 June 30, 2023

1,053,272 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)
Three months ended June 30, 2023

21,052,551 shares

Three months ended June 30, 2022

22,045,324 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 (171,096 shares as of June 30, 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 sharesthat are deducted for calculation of the average number of shares outstanding during the period (cumulative fromthe beginning of the fiscal year) (171,096 shares for the three months ended June 30, 2023 and 188,917 shares forthe three months ended June 30, 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 Three 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 Three 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 Three Months(1) Explanation of operating results
During the three months under review (April 1, 2023 to June 30, 2023), despite progress toward thenormalization of economic activities following the shift in classification of COVID-19 to a Category 5
infection, the outlook for the Japanese economy remained uncertain due to the protracted situation in
Ukraine, soaring raw material and energy prices, as well as the depreciation of the yen.
In the industrial field, demand for capital investment has been steady in automobile-related industry,
particularly for EV products. In semiconductor-related industries, on the other hand, there was a cautious
trend toward capital investment due to a sense of sufficient demand in some areas. In the housing andconstruction field, public capital investment remained firm, but new housing starts, mainly for owneroccupied houses, remained weak.
In overseas countries, although prices of parts and raw materials and personnel expenses increased, theeconomies of the U.S., China, and Southeast Asian countries such as Thailand, India, and Indonesia showeda trend toward gradual recovery.
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” in anticipation of the 360th anniversary of the Company’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 product creation, homecreation, environmental development, and urban development.
Under “corporate culture reform,” the YUASA PRIDE Project (Job Satisfaction Improvement & Human
Resource Respect Project) will increase employee engagement and develop human resources capable ofsolving social issues through “Tsunagu” value-chain innovation. Moreover, we aim to create an officeenvironment throughout the Group that can promote comprehensive strengths, challenges andcommunication. As part of this effort, in April 2023, we acquired land for the construction of a new head
office.
Under “DX promotion,” we will support business transformation by building infrastructure for datautilization, training human resources for digital transformation, reforming business processes, and creating
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. We also participated in the “GX League,” which wasestablished as a forum for companies, government, and academia to collaborate to discuss the transformationof economic and social systems (GX: Green Transformation) and practice the creation of new markets.
As part of the promotion of our growth strategy, we jointly developed the “Unmanned Concrete Sprinkling
and Curing Management Robot” that can automatically manage wet concrete, and “Line Automation Using a
Rewritable Laser System” that eliminates the need for relabeling operations by enabling high-speed
printing/erasing of container labels on factory lines.
In May 2023, the Company canceled 1,055,882 shares of treasury stock to further improve capital efficiency
and stock value. Moreover, as part of strengthening governance, the Company increased the number of
Outside Directors by one and newly appointed a female Audit & Supervisory Board Member for the
expansion of diversity of the Board of Directors.
As a result, consolidated net sales for the three months under review increased 1.3% from the same period of
the previous year, to ¥110,721 million. In terms of profits, operating profit was ¥1,477 million (up 3.6%
year-on-year), ordinary profit was ¥1,707 million (up 2.3% year-on-year), and profit attributable to ownersof parent was ¥3,334 million (up 222.3% year-on-year) mainly due to the recording of gain on return ofretirement benefit trust.
Results by reportable segment are as follows:<Industrial Equipment & Tools Division>
In the Industrial Equipment & Tools Division, despite plant utilization rates remaining steady in automotiverelated industries, growth in semiconductor-related industries was sluggish due to a sense of sufficient2demand. In addition, the purchase prices of mainstay products soared as a result of soaring material and fuelcosts, parts supply shortages, and the weak yen.
Under these circumstances, we focused on expanding sales of energy-saving products in response to growinginterest in carbon neutrality, automation and streamlining products to achieve smart factories, andinfrastructure environment proposals utilizing local 5G, resulting in net sales of ¥18,066 million (up 2.7%
year-on-year).
<Machine Tools Division>
In the Machine Tools Division, capital investment in automobile-related industries remained firm, especiallyfor EVs, while business negotiations related to aircraft also increased and demand for automation andunmanned systems held firm. Capital investment in semiconductors for PCs and smartphones remainedsluggish, on the other hand, in part due to reduced demand in the Chinese market. Overseas, the trend toward
local procurement accelerated, particularly in ASEAN and India.
Under these circumstances, net sales were ¥24,753 million (down 1.4% from the same period of the previousyear) despite efforts taken to expand sales of robot systems meeting requirements for automation and cost
reduction and sales of carbon neutral products by taking advantage of various subsidies, and strengthen
proposals for difficult-to-machine materials processing machines.
<Housing, Air & Fluidic Control Systems Division>
In the Housing, Air & Fluidic Control Systems Division, while the number of new owner-occupied housing
starts weakened, demand for remodeling remained firm, and housing fixtures and pipes/joints products also
moved solidly. In addition, due to the effects of factors such as rising energy costs, interest in energy
conservation was high, and sales of equipment related to air conditioning also grew. In the renewable energy
field, sales of solar panels, storage batteries, and other products remained strong.
Under these circumstances, net sales were ¥39,909 million (up 6.4% year-on-year) as a result of sales ofhigh-performance housing fixtures, pipes/joints products for non-residential use, and high-efficiency
equipment related to air conditioning, as well as efforts to strengthen system proposals and engineeringfunctions toward carbon neutrality.
<Building Supplies & Exterior Division>
For the Building Supplies & Exterior Division, sales of building hardware products and exterior products
such as steel mesh fences remained strong due to an increase in redevelopment projects and condominium
and hotel construction, mainly in the Tokyo metropolitan area. Publics works investment also demonstrated
underlying strength, particularly for products for countermeasures against natural disasters and traffic
accidents.
Under these circumstances, the division focused on proposing and expanding sales of resilience products,
including bollards with flood sensors, water stop plates, and other equipment, as a measure against damage
from flash torrential rains, as well as vehicle number authentication gates for improved security and laborsaving, and fabrication hardware related to construction, resulted in net sales of ¥11,806 million (up 3.8%
from the same period of the previous year).
<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 and energy prices, construction delays due to a shortage of
construction skilled workers, and long delivery times for construction equipment.
Under these circumstances, the Company strengthened its proposals for expanding sales of CO2
visualization products for construction sites, solutions for safe construction at construction and agriculturalsites, and AI image analysis technology for labor saving and efficiency improvement. In addition, although
we strove to expand our used construction and agricultural machines auction business, and enhanced
container house manufacturing, and construction machines maintenance and rental functions, net sales were
¥6,718 million (down 2.8% year-on-year).

3

<Energy Division>
For the Energy Division, a decline in demand for gasoline due to the shift to fuel-efficient vehicles, and highprices for petroleum products such as gasoline and diesel oil have made the future of the sector uncertain.
Under these circumstances, the gas station retail business, which operates mainly in the Tokai region, worked
to strengthen car care services such as car washing, automobile inspections, and coatings. In addition,although we made efforts to strengthen sales of marine fuel in the Keihin area, net sales were ¥4,485 million(down 8.9% year on year).
<Others>
In other segments, sales of seasonal household appliances such as high-performance circulators and electricfans increased in the consumer goods business. In the online sales business, we endeavored to operate sales
sites utilizing social networking services and other means to meet diversifying consumer needs. In the wood
products business, the number of detached housing starts remained sluggish, resulting in lower material
prices and a significant impact from a decline in imported timber shipments due to the depreciation of theyen, resulting in difficult sales conditions for core products, but we worked to build a domestic sales network
centered on recycled timber and develop private-brand products.
As a result, net sales were ¥4,982 million (down 15.4% year-on-year).

4(2) Explanation of financial position
As of June 30, 2023, total assets were ¥259,048 million, a decrease of ¥12,169 million from the end of theprevious fiscal year. This was primarily due to an increase in land of ¥30,461 million, while notes receivable,accounts receivable - trade and contract assets decreased by ¥24,146 million and cash and deposits decreasedby ¥15,634 million.
Total liabilities decreased by ¥12,541 million from the end of the previous fiscal year, to ¥163,436 million.
This was mainly due to a decrease in notes and accounts payable - trade of ¥15,754 million.
Total net assets increased by ¥371 million from the end of the previous fiscal year, to ¥95,612 million. Thiswas due to a decrease of ¥2,283 million in remeasurements of defined benefit plans due to partial return of
the retirement benefit trust, while shareholders’ equity increased by ¥1,368 million and valuation difference
on available-for-sale securities increased by ¥1,075 million.
As a result, the equity-to-asset ratio was 36.7% (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 first six months of the fiscal year ending March 31,
2024 and the full business year, the earnings forecasts are unchanged from the announcement in the“Consolidated Financial Results for the Fiscal Year Ended March 31, 2023” dated May 12, 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 June 30, 2023

52,44836,814

121,334

97,18730,15718,4803,667(89)225,997

31,997
21,302
6,661(83)
193,879

7,774
6,325
14,09938,235
5,183
43,419

1,369
1,305
2,675

1,178
1,823
3,001

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

19,091(342)
18,74865,169259,048

(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 June 30, 2023

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

82,93050,560
4,217
344
1,370

77

–

8,401
170,523

13,964
153,386

417
227

4,401
225

180

176

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

1,097
4,148
10,049163,436

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

20,644
6,753
66,277(2,853)90,822

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

3,425
40
591
181
4,239
165
385
95,612
259,048

(2) Consolidated statement of income and consolidated statement of comprehensive income
Consolidated statement of income (cumulative)(Millions of yen)Three months ended
June 30, 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 liquidation of subsidiaries and associates
Gain on return of retirement benefit trust
Total extraordinary income
Extraordinary losses
Loss on retirement of non-current assets
Loss on valuation of investment securities
Total extraordinary losses
Profit before income taxes
Income taxes
ProfitLoss attributable to non-controlling interests
Profit attributable to owners of parent

8

Three months ended
June 30, 2023

109,314
98,466
10,848
9,423
1,425

110,72199,078
11,642
10,165
1,477

371
83
52
508

378
92
91
563

238
25
263
1,669

264
68
332
1,707

–
–
–
–

1
21
3,255
3,278

1
2
3
1,666
632
1,033
(0)
1,034

0
–
0
4,986
1,654
3,332
(2)
3,334

Consolidated statement of comprehensive income (cumulative)(Millions of yen)Three months ended
June 30, 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

Three months ended
June 30, 2023

1,033

3,332

(168)
(25)
284
(217)
(127)
906

1,076
136
86
(2,283)
(984)
2,347

906

2,350

0

(2)

(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 three months ended June 30, 2023, capitalsurplus decreased by ¥83 million, retained earnings decreased by ¥2,627 million, and treasury shares
decreased by ¥2,710 million.

10

Segment information
I.

Three months ended June 30, 2022 (from April 1, 2022 to June 30, 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

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

Energy

Total

6,910

4,921

103,428

5,886

109,314–

109,314

1,108

997

9

8,164

84

8,248

(8,248)–39,596

12,484

7,908

4,931

111,592

5,971

117,563(8,248)109,314

719

387

35

44

2,349

(23)

2,325

(900)

1,425

Industrial
Equipment& Tools

MachineTools

Net sales
Sales to externalcustomers
Intersegment sales
or transfers

17,595

25,11037,514

11,375

2,760

1,205

2,081

Total

20,35526,316

Segment profit (loss)

374

789

Notes:

Total

Adjustment(Note 2)Others(Note 1)

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 (loss) of negative ¥900 million represents mainly costs related to theadministration division of the Company that has not been attributed to a reportable segment.
3. Segment profit is adjusted to operating profit (loss) 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. Three months ended June 30, 2023 (from April 1, 2023 to June 30, 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

Total

Adjustment(Note 2)

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

EnergyTotal

Others(Note 1)

6,718

4,485

105,739

4,982

110,721–110,721

1,434

1,231

8

9,475

62

9,537

(9,537)–42,29013,240

7,949

4,494

115,214

5,044

120,258(9,537)110,721

968

331

5

11

2,420

22

2,442

(965)

1,477

Industrial
Equipment& Tools

MachineTools

18,06624,75339,90911,806

3,073

1,345

2,381

Total

21,14026,098Segment profit

365

738

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 ¥965 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.
3. Matters related to changes in reportable segments
During the third quarter of the fiscal year ended March 31, 2023, an absorption-type merger between
YUASAQUOBIS CO., LTD. and TOYOSANGYO CO., LTD., the Company’s consolidated subsidiaries, inwhich YUASAQUOBIS CO., LTD. is the surviving company, was conducted. In conjunction with this, theCompany has changed the method of classifying the business of TOYOSANGYO CO., LTD., which waspreviously included in the Building Supplies & Exterior segment, to include it in the Housing, Air & Fluidic

11

Control Systems segment. Segment information for the three months ended June 30, 2022 has been preparedbased on the segments after the change.

12