May 15, 2024

FY23 Financial Results

(Fiscal Year Ended March 31, 2024)

Securities Code: 6287.T

FY23 Results &

FY24-28Medium-term

Management Plan

FY24 Consolidated Forecasts

Japan & Overseas Initiatives

1

FY23 Results &

FY24-28Medium-term

Management Plan

FY24 Consolidated Forecasts

Japan & Overseas Initiatives

2

Consolidated

Summary

  • FY23 Results
  • Consolidated sales and OI reached record highs.
  • Both overseas and Japan businesses contributed to sales.
    OI was driven by overseas while Japan achieved its revised plan.
  • Q4 (Jan-Mar) Results
  • Consolidated sales increased YoY while OI remained flat.
    The OI decline in Primary Label businesses was offset by higher profits in Asia, Oceania, and Japan.
    • Overseas Base business : Sales and OI increased
      Overseas Primary business: Sales increased but OI decreased
      Japan business: Sales were flat and OI increased
  • OI overseas exceeded its plan. Japan was in line with plan.
    • Asia and Oceania performed well versus plan.
  • Outlook for FY24
  • Consolidated sales and OI are forecasted to mark record highs.

3

Consolidated

FY23

Sales and OI by Business Segment

Auto-ID

Total Sales

Solutions

Operating

business

Income

Total Sales

Overseas

Operating

Income

Total Sales

Japan

Operating

Income

Consolidated

Total Sales

（incl. eliminations）

Operating

Income

FY23

143,446

(127,447)

9,968

(6,200)

67,931

(51,933)

8,243

(4,475)

75,514

1,724

143,446

(127,447)

10,383

(6,615)

FY22

142,824

(125,157)

9,748

(6,205)

68,657

(50,990)

7,111

(3,568)

74,166

2,637

142,824

(125,157)

8,841

(5,297)

(Millions of JPY)

YoY

excl. FX impact

+0.4%

+3.2%

(+1.8%)

(+1.1%)

+2.3%

+21.4%

(-0.1%)

(+11.2%)

-1.1%

+4.8%

(+1.8%)

(-0.0%)

+15.9%

+42.8%

(+25.4%)

(+46.1%)

+1.8%

+1.8%

-34.6%

-36.2%

+0.4%

+3.2%

(+1.8%)

(+1.1%)

+17.4%

+38.6%

(+24.9%)

(+38.0%)

* Figures in parentheses exclude the Russian subsidiaries.

4

Consolidated

FY23

Consolidated Results

FY23

Net Sales

143,446

(127,447)

Operating

10,383

Income

(6,615)

Operating Income %

7.2%

(5.2%)

Ordinary Income

8,961

(5,716)

Profit attributable to

3,565

owners of parent

(1,578)

Effective Tax Rate

25.8%

EBITDA*

15,456

(11,165)

(Millions of JPY)

FY22

Change

YoY

142,824

+621

+0.4%

(125,157)

(+2,290)

(+1.8%)

8,841

+1,541

+17.4%

(5,297)

(+1,317)

(+24.9%)

6.2%

+1.0pt

-

(4.2%)

(+1.0pt)

-

9,068

-106

-1.2%

(5,391)

(+324)

(+6.0%)

4,184

-619

-14.8%

(1,987)

(-409)

(-20.6%)

30.6%

-4.8pt

-

13,961

+1,494

+10.7%

(9,710)

(+1,454)

(+15.0%)

Average exchange rates for FY23: JPY 144.58 /USD, JPY 156.74 /EUR, FY22: JPY 135.49 /USD, JPY 140.98 /EUR

FX sensitivity for FY23: JPY +503million in sales and JPY +19million in OI for +1 JPY against USD and assuming all others move by the same ratio

  • EBITDA = Operating Income + Depreciation + Amortization ･Depreciation for FY23: JPY 4,926 million (4,404 million)

･Amortization for FY23: JPY 146 million (146 million)

FY22: JPY 4,855 million (4,148 million)

FY22: JPY 264 million (264 million)

* Figures in parentheses exclude the Russian subsidiaries.

5

Consolidated

Sales and OI by Business Segment

Jan-Mar

(Millions of JPY)

Auto-ID Solutions business

Overseas

Japan

Consolidated （incl. eliminations）

Total Sales

Operating

Income

Total Sales

Operating

Income

Total Sales

Operating

Income

Total Sales

Operating

Income

FY23 Jan-Mar

36,031 (32,257)

2,139 (1,421)

16,725 (12,951)

1,238 (520)

19,305

901

36,031 (32,257)

2,295 (1,577)

FY22 Jan-Mar

34,489 (30,748)

2,039 (1,034)

15,153 (11,411)

1,445 (440)

19,336

594

34,489 (30,748)

1,760 (755)

YoY

+4.5% (+4.9%) +4.9% (+37.4%) +10.4% (+13.5%) -14.3% (+18.2%)

-0.2%

+51.5%

+4.5% (+4.9%) +30.4% (2.1x)

excl. FX impact +3.6% (+2.7%) +9.0% (+42.9%) +8.5% (+7.6%) -7.4% (+35.1%)

-0.2%

+48.7%

+3.6% (+2.7%) +35.2% (2.2x)

* Figures in parentheses exclude the Russian subsidiaries.

6

Consolidated

Jan-Mar

Consolidated Results

FY23

Jan-Mar

Net Sales

36,031

(32,257)

Operating

2,295

Income

(1,577)

Operating Income %

6.4%

(4.9%)

Ordinary Income

1,194

(709)

Profit attributable to

(1,241)

owners of parent

(-1,538)

EBITDA*

3,633

(2,763)

(Millions of JPY)

FY22

Change

Jan-Mar

YoY

34,489

+1,541

+4.5%

(30,748)

(+1,508)

(+4.9%)

1,760

+535

+30.4%

(755)

(+822)

(2.1x)

5.1%

+1.3pt

-

(2.5%)

(+2.4pt)

-

1,391

-197

-14.2%

(863)

(-154)

(-17.9%)

(932)

-308

-

(-1,223)

(-314)

-

2,970

+662

+22.3%

(1,817)

(+945)

(+52.0%)

* EBITDA = Operating Income + Depreciation + Amortization

･Depreciation for Jan-Mar FY23: JPY 1,300 million (1,148 million)

Jan-Mar FY22: JPY

1,182million (1,034 million)

･Amortization for Jan-Mar FY23: JPY 37 million (37 million)

Jan-Mar FY22: JPY

27 million (27 million)

* Figures in parentheses exclude the Russian subsidiaries.

7

(Millions of JPY)

Auto-ID Solutions Business (Overseas)

Jan- Mar

Overview

Labor shortage-related demand was captured by SATO's solutions.

Sales increased, partly due to the completion of inventory adjustments for printers at distributors in the U.S. and Europe. OI decreased due to intensified competition in Russia and the impact of applying hyperinflationary accounting standards in Argentina.

FY23

FY22

Change

Jan-Mar

Jan-Mar

YoY

excl. FX impact

Total Sales

16,725

15,153

+1,572

+10.4%

+8.5%

(12,951)

(11,411)

(+1,539)

(+13.5%)

(+7.6%)

Gross Profit

6,306

5,761

+544

+9.5%

-

(4,949)

(4,181)

(+768)

(+18.4%)

-

Gross Profit %

37.7%

38.0%

-0.3pt

-

-

(38.2%)

(36.6%)

(+1.6pt)

-

-

Operating Income

1,238

1,445

-207

-14.3%

-7.4%

(520)

(440)

(+80)

(+18.2%)

(+35.1%)

Operating Income %

7.4%

9.5%

-2.1pt

-

-

(4.0%)

(3.9%)

(+0.2pt)

-

-

FY23

FY22

Change

YoY

excl. FX impact

Total Sales

67,931

68,657

-725

-1.1%

+4.8%

(51,933)

(50,990)

(+942)

(+1.8%)

(-0.0%)

Gross Profit

27,719

25,255

+2,464

+9.8%

-

(21,185)

(19,307)

(+1,878)

(+9.7%)

-

Gross Profit %

40.8%

36.8%

+4.0pt

-

-

(40.8%)

(37.9%)

(+2.9pt)

-

-

Operating Income

8,243

7,111

+1,131

+15.9%

+42.8%

(4,475)

(3,568)

(+907)

(+25.4%)

(+46.1%)

Operating Income %

12.1%

10.4%

+1.8pt

-

-

(8.6%)

(7.0%)

(+1.6pt)

-

-

* Figures in parentheses exclude the Russian subsidiaries.

8

Auto-ID Solutions Business (Overseas)

Major Gains/Losses in OI

(Millions of JPY)

Jan-Mar

+772

-436

•

Negative factors

(+545)

(-73)

•

Positive factors

-443

(-318)

-100

(-74)

1,445

  1. • Europe and The Americas primary labels
    • Factories
  • Asia/Oceania
  • Europe and The Americas primary labels

•

Asia/Oceania

•

The Americas primary labels

1,238

•

Europe primary labels

•

Factories

(520)

FY23

7,111

(3,568)

  • Europe and The Americas primary labels
  • Europe

+1,947

(+740)

+2,662

-1,569

(+1,253)

(-348)

• Europe and The Americas

•

Europe

•

Europe primary labels

primary labels

•

The Americas

• The Americas

-1,908

(-738)

  • Europe and The Americas primary labels

8,243

(4,475)

Excludes exchange rate effects

* Figures in parentheses exclude the Russian subsidiaries. Comments shown in the bubble include the Russian subsidiaries.

9

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Disclaimer

SATO Holdings Corporation published this content on 15 May 2024 and is solely responsible for the information contained therein. Distributed by Public, unedited and unaltered, on 15 May 2024 11:28:05 UTC.