Amada : Consolidated Results for the Fiscal Year Ended March 31,2023(with script)

AMADA CO.,LTD.

Financial Results Briefing for the Fiscal Year Ended March 2023 (Presentation)

May 12, 2023

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During the last fiscal year, while the global economy gradually recovered, the outlook for the global economy as a whole remained uncertain due to accelerating inflation, rising policy interest rates, and the emergence of geopolitical risks. In this environment, we continued to experience the impact of delayed material procurement on production activities.

Still, against the backdrop of a backlog of orders that remained high, our sales revenue increased 17% from the previous fiscal year to JPY365.6 billion.

Operating income was JPY49.8 billion, up 29.4% YoY, due to the effect of increased sales and improved selling prices, as well as the impact of foreign exchange rates, despite the significant impact of soaring material costs and increased distribution costs.

Net income was JPY34.1 billion, up 23% YoY, despite a negative financial account balance due to the impact of the yen's appreciation in H2.

When we explained our earnings forecast in May last year, we reported that we hoped to break our record-high levels of sales of JPY338.1 billion and operating income of JPY45.1 billion for FY2018, and we were able to achieve record highs in both sales and income, including net income.

Orders received totaled to JPY394.8 billion, a 5.3% increase over the previous fiscal year, further surpassing the record high of JPY375 billion set in the previous fiscal year. As a result, the order backlog was JPY172.1 billion, a further increase of JPY34.1 billion from the end of the previous fiscal year.

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Next, we will explain the consolidated income statement results.

As mentioned at the beginning of this briefing, revenue was JPY365.6 billion, up 17% from the same period last year. Gross profit was JPY159.3 billion, up 19.2% from the previous year, and the gross profit margin rose 0.9 percentage points to 43.6% from 42.7% in the previous year.

The gross profit margin was generally compensated by a 1.8-point improvement in selling prices due to curbed discounting and a 0.6-point increase in capacity utilization due to higher output, despite the increased impact of soaring material costs. This was an improvement of 0.9 points from the previous year, partly due to the impact of foreign exchange rates.

SG&A expenses totaled JPY109.7 billion, up JPY15.3 billion from the previous year, but the SG&A-to-sales ratio improved slightly to 30% from 30.2% in the same period last year. The variable cost ratio increased by 0.5 percentage points to 5% due to the impact of rising logistics costs in Japan and overseas. Fixed costs amounted to JPY91.5 billion, an increase of JPY11.3 billion from the same period last year. Factors that may cause fixed costs to increase will be explained later in this report.

As a result, operating income was JPY49.8 billion, up 29.4% from the previous year.

Compared to the revised forecast announced at the time of the Q2 earnings announcement, which is shown on the right, net sales, operating income, and net income were all higher, partly due to the impact of foreign exchange rates.

In addition, the yen depreciated. Exchange rate was JPY135.48 for USD1, JPY140.97 for EUR1 and JPY19.75 for CNY1.

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Next, on page three, the trend of orders.

The total amount was JPY394.8 billion, a 5% increase from the previous year's JPY375 billion.

The sheet-metal division, shown in the bar graph in the center, recorded orders of JPY

288.5 billion in the current financial year, up 4% on the previous year, partly due to a high level of orders. Of these, orders for machines, shown in black, remained flat at JPY203.4 billion. due to a significant increase over the previous year.

Orders received by region are shown on the right side. While domestic orders totaled JPY165.9 billion, up 9% from the previous year, overseas orders totaled JPY228.8 billion, up only 3%, due to the high level of orders but the hurdle set in the previous year.

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Next, page four is the results by industry segment.

The metal working machinery segment, shown in the bar graph on the left, reported sales revenue of JPY301.3 billion, an increase of 18% from JPY255.8 billion in the previous year, and operating income was JPY41.5 billion, an increase of 33% from JPY31.1 billion in the previous year.

On the right side, the metal machine tools segment posted sales revenue of JPY63 billion, up 14% from JPY55.5 billion in the previous fiscal year. Operating income was JPY7.6 billion, up 14% from JPY6.6 billion in the previous fiscal year.

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