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.

February 3, 2023

Consolidated Financial Results
for the Nine Months Ended December 31, 2022
(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 7, 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 nine months ended December 31, 2022 (from April 1, 2022 to
December 31, 2022)(1) Consolidated operating results (cumulative)
Net sales
Nine 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%

December 31, 2022

361,511

10.8

8,484

22.2

9,133

40.2

5,794

23.3

December 31, 2021

326,190

–

6,945

21.5

6,512

0.8

4,701

9.2

Note: Comprehensive income

For the nine months ended December 31, 2022:
For the nine months ended December 31, 2021:

Basic earnings
per share
Nine months ended¥5,634 million¥2,744 million[105.3%][(50.4)%]

Diluted earnings
per share
Yen

Yen

December 31, 2022

266.16264.93

December 31, 2021

212.69211.33(2) Consolidated financial position
Total assets
As of

Net assets

Equity-to-asset ratio

Millions of yen

Millions of yen

December 31, 2022

264,440

92,411

34.7

March 31, 2022

259,41392,60535.5

Reference:

EquityAs of December 31, 2022:
As of March 31, 2022:¥91,851 million¥91,981 million%

2. Cash dividends
Annual dividends per shareFirst quarter-end
Fiscal year ended
March 31, 2022
Fiscal year ending
March 31, 2023

Second quarter-end

Third quarter-end

Yen

Yen

Yen

Fiscal year-end
Yen

Yen

–

49.00

–

74.00

123.00

–

60.00

–
80.00

140.00Fiscal year ending
March 31, 2023
(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, 2023 (from April 1, 2022 to March
31, 2023)(Percentages indicate year-on-year changes.)
Net sales
Millions of yen

Full year

490,000

Operating profit% Millions of yen

5.9

13,500

Profit attributable toowners of parent

Ordinary profit% Millions of yen

13.6

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

14,500% Millions of yen

23.5

9,570

Basic earnings
per share

%

Yen

18.7

433.23

* 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, 2022

23,155,882 shares

As of March 31, 2022

23,155,882 shares(ii) Number of treasury shares at the end of the period
As of December 31, 2022

1,814,705 shares

As of March 31, 2022

1,048,982 shares(iii) Average number of shares outstanding during the period (cumulative from the beginning of the fiscal
year)
Nine months ended December 31, 2022

21,771,000 shares

Nine months ended December 31, 2021

22,105,008 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 December 31, 2022 and 188,917 shares as of March 31,2022). 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) (177,036 shares for the nine months ended December 31, 2022
and 191,321 shares for the nine months ended December 31, 2021).

* 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
Additional information .......................................................................................................................................... 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, 2022 to December 31, 2022), the Japanese economy showedsigns of a recovery as economic activities normalized. Nevertheless, the outlook remained uncertain with thelack of prospects for the COVID-19 pandemic coming under control, besides the prolonged situation in
Ukraine, soaring raw material and crude oil prices, and the record-level depreciation of the yen.
In the industrial field, although supply chain disruptions and the supply shortage of on-vehicle
semiconductors, etc. resulted in production adjustments and other effects in part of the automobile-relatedindustry, demand for capital investment has been steady. In the housing and construction field, public works
investment and the number of new constructions, mainly condominiums, remained firm.
In overseas countries, prices of parts and raw materials and personnel expenses increased, whereas the
economy continued to recover moderately in the U.S. and Southeast Asian countries including Thailand,
Vietnam, and Indonesia. However, economic growth slowed down in China due to the government’s zeroCOVID policy.
In operating under these circumstances in the final year of its Midterm Management Plan “Growing Together
2023,” which is the second stage of “Yuasa Vision 360,” the Yuasa Trading Group is implementing various
measures under the basic policies of “growth business strategy,” “core business strategy,” and “strengthening
management foundation,” aiming to evolve into a “TSUNAGU Service Integrated Shosha Group.”
For “growth business strategy,” we concentrated on the development and application of new products andservices both internally and jointly with other companies, including “concrete compaction management
system using MR (Mixed Reality)” for ensuring quality and saving labor (increasing productivity) on
construction sites, “risk saver,” a disaster risk management system for visualizing supply chain risks,“gatepost with delivery box equipped with V2H (Vehicle to Home) function,” which can be used as an
emergency power supply during disasters, and “zeroboard construction,” a cloud service that enables
accurate visualization of CO2 emissions from construction work sites in real time. We also made proposals
for such issues as climate change countermeasures, labor-saving and automation, based on the understandingthat growth businesses are businesses that solve social issues.
For “core business strategy,” we are strengthening and expanding our AI-based initiatives toward becoming a“TSUNAGU Service Integrated Shosha Group,” which enables us to demonstrate our comprehensive
strengths in one-stop. We are promoting proposal-based sales and marketing aimed at connecting AI withcustomers’ “manufacturing,” “home,” “environmental,” and “community development” sites to enhance theadvancement and efficiency of customers’ on-site operations.
For “strengthening management foundation,” in order to improve shareholder returns and capital efficiency,
and to enable the execution of flexible capital policies in response to changes in the business environment,
the Company has been implementing a share buyback program. In addition, we have determined to acquireland in Minato-ku, Tokyo, in order to build the new head office in anticipation of further business expansionof the Group.
In our efforts toward “ESG” and “SDGs,” based on the Yuasa Trading Group’s “Sustainability Declaration,”
we aim to be carbon neutral across the entire Group by 2030, as well as to actively disclose information
related to ESG and climate change, such as CO2 emissions, to contribute to building a sustainable society
through our business activities. As part of the efforts, we launched environmental preservation activities
called “YUASA Tree Planting Project” in Sungai Merbok Mangrove Forest Reserve, Malaysia, consisting
mainly of mangrove planting activities.
As a result, consolidated net sales for the nine months under review increased 10.8% from the same periodof the previous fiscal year to ¥361,511 million. In terms of profits, operating profit was ¥8,484 million (up22.2% year on year), ordinary profit was ¥9,133 million (up 40.2% year on year), and profit attributable toowners of parent was ¥5,794 million (up 23.3% year on year).
Results by reportable segment are as follows:
During the third quarter under review, an absorption-type merger between YUASAQUOBIS CO., LTD. and
TOYOSANGYO CO., LTD., the Company’s consolidated subsidiaries, in which YUASAQUOBIS CO.,LTD. is the surviving company, was conducted. In conjunction with this, the Company has changed themethod of classifying the business of TOYOSANGYO CO., LTD., which was previously included in the
Building Supplies & Exterior segment, to include it in the Housing Air & Fluidic Control Systems segment.

2

Segment information for the nine months ended December 31, 2021 has been prepared based on thesegments after the change.
<Industrial Equipment & Tools Division>
In the Industrial Equipment & Tools Division, demand was partially satisfied in the semiconductor market in
the latter half of the period under review, whereas plant utilization rates in the related industry became stable.
However, demand for capital investment remained firm, and sales grew mainly for control related
equipment.
Under these circumstances, we focused on the solutions sales, and proposed automation and streamlining ofproduction sites to realize smart factories and strove to expand sales of control-related equipment such ascompressors with high energy-saving performance, which respond to growing interest in carbon neutrality,
BCP, etc., and as a result, net sales were ¥55,843 million (up 4.9% year on year).
<Machine Tools Division>
In the Machine Tools Division, sales of motors and other related parts for EVs were strong in theautomobile-related industry. Demand for carbon-neutral products and energy-saving systems also increased
due to growing environmental awareness. Overseas, despite the impact of the soaring cost of raw materials,
the economy is recovering mainly in Southeast Asian countries and large projects increased in Thailand,
Indonesia and Vietnam.
Under these circumstances, we focused on sales of products and systems developed by the Company such as“Robo Combo,” a robot system using articulated robots, as well as on proposals for switching to unmanned,
cost reduction, stable processing, and energy-saving promotion systems by taking advantage of various
subsidies, and as a result, net sales were ¥81,595 million (up 20.7% year on year).
<Housing, Air & Fluidic Control Systems Division>
In the Housing, Air & Fluidic Control Systems Division, the number of new housing starts, particularly indetached housing, declined, whereas demand for remodeling remained firm. Sales of equipment related to air
conditioning grew in reaction to growing needs for energy conservation. Sales of pipes/joints products
including valves and pumps, and housing fixtures for wet areas such as kitchens and toilets were also firm.
In the renewable energy field, sales of storage batteries and peripheral devices were on a firm trend due tothe increasing demand in the midst of calls for measures to become carbon neutral.
Under these circumstances, as a result of efforts such as system proposals toward becoming carbon neutral
and strengthening engineering capability, net sales were ¥126,332 million (up 8.5% year on year).
<Building Supplies & Exterior Division>
For the Building Supplies & Exterior Division, construction of logistics facilities and condominiums
increased, and sales of exterior products and building hardware products remained firm mainly in the
Metropolitan area, while sales of storage sheds and delivery boxes increased due to growing demand. In
addition, publics works investment in products for natural disaster and traffic accident countermeasuresremained firm.
Under these circumstances, introduction of aluminum privacy fences that replace concrete fences, which are
at risk of tipping over, and efforts to propose and expand sales of resilience products, which are a
combination of bollards with flood sensors, water stop plates, and other equipment, as a measure against
damage from flash torrential rains, resulted in net sales of ¥37,164 million (up 14.3% year on year).
<Construction Machines Division>
For the Construction Machines Division, public works projects such as infrastructure development, disasterrecovery, and disaster prevention/mitigation work, as well as private sector capital investment, remained
firm. Demand for construction machines from rental companies and civil engineering-related commercial
products was firm. Nevertheless, longer delivery times for construction machines due to shortages ofcomponents, particularly on-vehicle semiconductors, soaring prices of materials and energy, and shortages of
construction skilled workers had an impact.

3

Under these circumstances, we focused on expanding our lineup with an emphasis on safety measures atconstruction sites and sales of a variety of resilience products and vehicles for work at height. In addition, we
strove to expand our used construction machines auction business, and enhancing container housemanufacturing, and construction machines maintenance and rental functions, resulting in net sales of¥26,884 million (up 8.1% year on year).
<Energy Division>
For the Energy Division, demand recovered as economic activities normalized; however, crude oil prices
remained high due to concerns over energy supply owing to the situation in Ukraine and the progression of
the yen depreciation, continuously affecting prices of petroleum products such as gasoline and diesel fuels.
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, efforts
to strengthen sales of marine fuel in the Keihin area resulted in net sales of ¥14,425 million (up 4.8% year onyear).
<Others>
For Others, we worked to expand sales of new seasonal household appliances in the consumer goods
business, which was impacted by soaring raw material costs and the depreciation of the yen. Meanwhile, we
responded to diversifying consumer needs in the online sales business. In the wood products business,
although severe sales conditions persisted as domestic demand was sluggish due to stagnant new housing
starts besides the impact from the progression of the yen depreciation and lockdowns in producer countries,
we worked to develop new suppliers and to develop and expand sales of commercial products utilizing
domestic lumber.
As a result, net sales were ¥19,265 million (up 8.3% year on year).

4(2) Explanation of financial position
As of December 31, 2022, total assets were ¥264,440 million, an increase of ¥5,026 million from the end of
the previous fiscal year. This was mainly due to a ¥7,647 million increase in electronically recordedmonetary claims - operating and a ¥5,620 million increase in inventories, while notes and accounts
receivable - trade, and contract assets decreased by ¥8,150 million.
Total liabilities were ¥172,028 million, an increase of ¥5,220 million from the end of the previous fiscal year.
This was mainly due to an increase of ¥8,679 million in electronically recorded obligations - operating,whereas notes and accounts payable - trade decreased by ¥3,810 million.
Total net assets were ¥92,411 million, a decrease of ¥193 million from the end of the previous fiscal year.
This was mainly due to an increase in retained earnings of ¥2,832 million, despite a decrease of ¥2,792
million due to purchase of treasury shares.
As a result, the equity-to-asset ratio was 34.7% (35.5% 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, 2023, the earnings
forecasts are unchanged from the announcement in the “Consolidated Financial Results for the Fiscal Year
Ended March 31, 2022” dated May 13, 2022.
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, 2022
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
Intangible assets
Goodwill
Other
Total intangible assets
Investments and other assets
Retirement benefit asset
Other
Allowance for doubtful accounts
Total investments and other assets
Total non-current assets
Total assets

6

As of December 31, 2022

53,74450,897

121,531

113,380

22,79916,1473,420(59)
217,584

30,446
21,7674,632(90)
221,034

12,667

14,028

2,133
1,202
3,336

1,560
1,017
2,577

12,385
13,783(343)
25,826
41,829259,413

12,43014,706(337)
26,79943,405
264,440

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

96,11245,815
3,128
2,870
2,623

92,30254,494
3,173
334
1,292

70

–

8,331
158,953

11,840163,438

581
191

533
210

173

170

998
5,909
7,854
166,808

1,079
6,596
8,589
172,028

20,644
6,831
60,155(1,692)85,93820,644
6,837
62,987(4,484)85,984

1,798
48
46
4,149
6,042
238
385
92,605
259,413

1,755
(200)
815
3,496
5,866
165
395
92,411
264,440

(2) Consolidated statement of income and consolidated statement of comprehensive income
Consolidated statement of income (cumulative)(Millions of yen)
Nine months ended
December 31, 2021
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
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
Loss on COVID-19
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, 2022

326,190
292,545
33,644
26,6996,945

361,511324,167
37,344
28,860
8,484

1,083
213
375
1,672

1,184
214
162
1,561

662
1,442
2,104
6,512

762
150
912
9,133

140
1,108
1,248

3
0
3

–
30
3
53
28
115
7,646
2,940
4,705
4
4,701

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

Consolidated statement of comprehensive income (cumulative)(Millions of yen)
Nine months ended
December 31, 2021
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, 2022

4,705

5,808

(1,386)
(11)
179
(742)
(1,960)
2,744

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

2,741

5,618

3

15

(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
No item to report.
Additional information
Accounting estimates related to the impact of the spread of COVID-19
During the nine months under review, there are no significant changes in the accounting estimates of the
impact of the spread of COVID-19 described in the financial results reports for the previous fiscal year.

10Segment information
I.

Nine months ended December 31, 2021 (from April 1, 2021 to December 31, 2021)
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

53,241

67,614

116,387

32,527

24,86813,768308,407

17,782

326,190–

326,190

9,502

3,026

6,062

3,754

3,208

22

25,575490

26,066(26,066)–

Total

62,74370,640122,449

36,281

28,077

13,790333,983

18,273352,256(26,066)

326,190

Segment profit

1,212

2,437

3,425

1,157

613

192

9,038

110

9,148

(2,203)

6,945

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 ¥2,203 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, 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

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

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 ¥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.
3. Matters related to changes in reportable segments
During the third quarter under review, an absorption-type merger between YUASAQUOBIS CO., LTD. and
TOYOSANGYO CO., LTD., the Company’s consolidated subsidiaries, in which YUASAQUOBIS CO.,LTD. is the surviving company, was conducted. In conjunction with this, the Company has changed themethod of classifying the business of TOYOSANGYO CO., LTD., which was previously included in the
Building Supplies & Exterior segment, to include it in the Housing Air & Fluidic Control Systems segment.

11

Segment information for the nine months ended December 31, 2021 has been prepared based on thesegments after the change.

12