ペガサスミシン製造（6262） – PEGASUS Sewing Machine Nine-month FY2022 IR Presentation

Fiscal Year Ending March 31, 2022Financial ResultsBriefing Materials for 3QAnnounced on January 27, 2022PEGASUS SEWING MACHINE MFG. CO., LTD.【Code：6262, Tokyo stock exchange in Japan】Table of contents●Overview for 3Q of FY2022 ・・・・・・・・・・・ 3●Reference ・・・・・・・・・・・・・・・・・・・・・・・・・・・・ 14●Corporate Profile・・・・・・・・・・・・・・・・・・・・・・ 172/22Overview for3Q of FY2022 3/22Business Environment✔ COVID-19✔ Rise in marine transportation costs and delay in transportationdue to shortage of containers✔ President Biden’s policy toward China (human rights issues, etc.)Industrial sewing machine✔ Increase in capital investment due to recovery in global demand for apparel✔ Increase in orders from countries around consumption areasDie casting auto parts✔ Restrictions on commuting to work to contain the COVID-19 infections in Vietnam✔ Rise in raw material prices✔ Decrease in automobile production due to delayin procurement of parts (semiconductors, harnesses, etc.)4/22Overview of Consolidated Financial ResultsNet sales8,29914,722(Million yen: Amounts of less than one million yen are rounded down)(※Results excluding the effects of foreign exchange are indicated in parentheses)Previous 3QCurrent3QChangePercentage change6,47511,8311,8242,890180323421,2721,3121,305+6,422(+5,896)+5,356(+4,999)+1,065(+897)+77.4％(+71.0%)+82.7％(+77.2%)+58.4%(+49.2%)+1,092+604.9%+988+306.0%+1,262 +2,946.2%Industrial sewing machinesDie casttingauto partsOperating profitOrdinary profitProfit beforeincome taxesProfit (loss) attributable to owners of parent▲1061,037+1,144ー5/22Overview of Net Sales by BusinessImage ofdie casting productsExamples use of die casting productsDie castingauto parts19.6％Net sales14,722million yenIndustrial sewing machine80.4％Overedger stitchmachinesInterlock stitch machines6/22Net Sales by Business and LocationIndustrial sewing machineStrong sales in Asia, driven by market recovery in Bangladesh and India.11,8316,475JapanChinaAsia314 million yen YoY change：+16.9％2,256 million yenYoY change：+86.3％6,140 million yenYoY change：+116.9％Previous 3Q Current 3QAmericas1,910 million yenYoY change：+57.2％Qty. of units soldAverage unit priceExcluding the effectsof foreign exchange ：＋6.6％：＋68.0%：＋10.3％Europe1,209 million yenYoY change：+27.5％(Million yen: Amounts of less than one million yen are rounded down)7/22Net Sales by Business and LocationDie casting auto parts2,8901,824Record-high sales owing to a good return on investment in newly launched parts, despite adverse impacts of decrease in automobile production due to semiconductor shortage, etc.ChinaAsia1,442 million yen YoY change：＋48.3％932 million yen YoY change：＋81.3％Previous3Q Current 3QAmericas515 million yen YoY change：+52.6％(Million yen: Amounts of less than one million yen are rounded down)8/22Changes in Operating Profit✓ Increase in net sales offset the impacts of rise in material and transportation costs, etc., leading to higher revenue and profit.▲602+2,181▲508+211,272180０Previous 3Q Operating profitIncrease of1,092 million yenIncrease insalesIncrease incostsIncrease in expensesExchange rate fluctuationsCurrent 3QOperating profit(Million yen: Amounts of less than one million yen are rounded down)9/22Consolidated Balance SheetsEnd of previous yearCurrent 3QChangeMain factors contributing to changes(Million yen: Amounts of less than one million yen are rounded down)Current assets21,25723,957+2,699Non-current assetsTotal assets8,5889,351+76329,84633,309+3,463・Cash and deposits・Notes and accounts receivable – trade・Property, plant and equipment・Intangible assets・Investments and other assetsEnd of previous yearCurrent 3QChangeMain factors contributing to changesCurrent liabilities4,5165,995+1,479・Notes and accounts payable – trade・Short-term borrowingsNon-currentliabilitiesNet assetsTotal liabilities andnet assets3,2673,161▲106 ・Long-term borrowings22,06124,151+2,089・Retained earnings・Foreign currency translation adjustment29,84633,309+3,463(Major changes in primary accounts are presented above)10/22+850+1,477+608+20+134+736+379▲225+690+1,338Consolidated Financial Position(Amounts of less than one million yen are rounded down)End ofprevious yearCurrent 3QCapital (million yen)Capital adequacy ratio (%)21,38171.623,41770.3End of previous yearCurrent 3Q861.77943.844580.535330.56(Amounts of less than one million yen are rounded down)Previous 3Q Current 3QBVPS (yen)PBR (times)Year-end share price (yen)Profit (loss) attributableto owners ofparent (million yen)EPS (yen)▲1061,037▲4.2941.8211/22Consolidated Statements of Cash Flows(Million yen: Amounts of less than one million yen are rounded down)Previous 3QCurrent 3QMain factors contributing to changesCash flows from operating activities1,2351,439 ・Profit before income taxes・Decrease (increase) in trade receivablesCash flows from investing activities201 ▲278 ・Purchase of property, plant and equipment・Net increase (decrease) in short-term borrowings・Repayments of long-term borrowings・Dividends paidCash flows from financing activities ▲193 ▲491Effect of exchange rate change on cash and cash equivalents▲195414Net increase (decrease) in cash and cash equivalentsCash and cash equivalents at beginning of periodCash and cash equivalents at end of period1,0471,0835,6488,2736,6959,357(Major changes in primary accounts are presented above)ーーーー1,305▲1,157▲539300▲339▲34712/22Capital investment・Depreciation・R&D expenses(Million yen: Amounts of less than one million yen are rounded down)Previous 3QCurrent 3QChangeCapital investmentDepreciationR&D expenses352561308539614284＜Main capital investments＞(Million yen: Amounts of less than one million yen are rounded down)Company nameDetailsTotal investmentPEGASUS-SHIMAMOTO AUTO PARTS (VIETNAM) CO., LTD.Expansion of productionfacilities, etc.PEGASUS(TIANJIN) SEWING MACHINE CO., LTD.Repair of buildings, etc.+187+53▲2319715413/22Reference14/22ReferenceNet Sales by Business and Location (YoY change excluding the effects of foreign exchange)(Amounts of less than one million yen are rounded down) Industrial sewing machineJapanChinaAsiaAmericasEuropeTotalNet sales (million yen)Current 3QYoY change (%)YoY change excluding the effects of foreign exchange (%)31416.916.92,25686.36,140116.970.3114.71,9101,20911,83157.255.627.519.082.777.2Previous 3QNet sales (million yen)2691,2112,8311,2159486,475Die casting auto partsChinaAsiaAmericasTotal(Amounts of less than one million yen are rounded down) Net sales (million yen)Current 3QYoY change (%)YoY change excluding the effects of foreign exchange (%)1,44248.335.693281.379.451552.642.12,89058.449.2Previous 3QNet sales (million yen)9725143371,82415/22ReferenceEffects of foreign exchange (based on consolidated net sales for 3Q of FY2022)CurrenciesJPYUSDEURRMBMXNResults for the current yearExcluding the effects of foreign exchangeResults for the previous yearYoY change excluding the effects of foreign exchange8,9831,2093,69814,72214,1968,2995,896Cost of sales2,0403,2769,5465,2294,317Exchange rates for the period－ ¥108.57 ¥129.96¥16.78¥5.38Exchange rates for the previous periodDifference (yen) Net salesChange in foreign exchangeRatio (%)Ratio (%)Change in foreign exchangeRatio (%)42.7Change in foreign exchangeChange in foreign exchangeCost of sales ratio (%)－ ¥107.46 ¥121.25¥15.34¥5.011.118.711.44－3142.1－20.5－－－－61.09132.93332.91146－8.281390.421394.0969－25.13174,12941.435462317.953▲90－0.375153.5354844.933852.45▲3－－－－100.05259,970100.04233,478100.0801,2722167.7－－－－－－－－－－－－－－－－－－－1,25167.2180－63.0Selling and administrative expenses 1,4851,1443,3982,889508Operating profit▲3,2114,5621,029 ▲1,054▲531,070－－－－－－－－－－－(Million yen: Amounts of less than one million yen are rounded down except for Exchange rates, ratio, Cost of sales ratio)16/22Corporate Profile17/22Corporate Philosophy・Basic Policy for BusinessCorporate PhilosophyThrough our people & technology, we strive to provide better Products, Service and Quality and make a positive contribution to the world of “social development”Basic Policy for Business● We deepen exchanges with people throughout the world, and develop reliable business activities. Deploying people and products throughout the world we plan our activities with respect for universal values.● Always striving to master Pegasus‘s core technology we aim for superior global quality manufacturing. Striving to attain the position of the “true, leading manufacturer of chain-stitch sewing machines”, we supply our products at optimum quality, optimum price and with optimum lead times.● We always learn from our customers, form their needs into tangible shape, and utilizing this offer services and information. Constantly learning from customers and always maintaining the truth is the spirit that supports all of Pegasus’s business activities.● By building on the relations with our associates and employees we aim for mutual growth and development. By the handing down of our predecessors’ originality and ingenuity we oversee the creation of new ideas. And these endeavors lead to personal development of our employees and, needless to say of course, also our associates.18/22Corporate Profileas of March, 2021NamePEGASUS SEWING MACHINE MFG. CO., LTD.RepresentativePresident Shigemi MimaFoundedJanuary, 1914LocationFukushima-ku, Osaka, JapanCapital2,255.55million yen (as of March,2021) Sales12,422million yen (From April 1, 2020 to March 31, 2021) Number ofemployeesBusiness1,281［consolidated］212［non-consolidated］ (as of March,2021) Manufacture and sale of industrial chain stitching sewing machines and partsManufacture and sale of die casting auto parts and other die casting parts19/22Shareholders Informationas of September, 2021◆Principal ShareholdersShareholder’s NameHolding RatioThe Master Trust Bank of Japan Ltd. (Trust Account)Custody Bank of Japan, Ltd. (Trust Account) MIMA Co.,LTD.Sumitomo Mitsui Banking Co.Keizo BandoTakako YoshidaShigemi MimaMasamichi MimaTakehiro BandoPEGASUS SEWING MACHINE Shareholding Association9.8%9.2%6.3%3.3%3.0%2.9%2.5%1.9%1.7%1.6%Total42.2%Individuals and Others 49.6%◆Shareholders Breakdown (%)◆Shareholding Breakdown by Ownership (%)Foreign Corporations, etc. 1.4%Financial Institutions 0.3%Individuals and OthersSecurities Companies 0.5%97.2%Other Corporations 0.6%Treasury Stock 0.01%Foreign Corporations, etc. 7.5%Financial Institutions 25.5%Securities Companies 5.4%Other Corporations 11.9%Treasury Stock 0.1%20/22(million yen)net sales20,00015,00010,0005,0000Changes in Consolidated Financial ResultsNet sales(left)Operating profit(right)Ordinary profit(right)Profit attributable toowners of parent(right)(million yen) profit4,000Net salesOperating profitOrdinary profitProfit attributable to owners of parent19278▲14921266174FY2012FY2013FY2014FY2015FY2016FY2017FY2018FY2019FY2020FY202111,15210,17014,06716,20619,18818,96116,97818,89114,96912,4221,1181,2601,7232,1892,3562,3882,7982,8312,2122,0302,3062,5424994849532,3282,1602,1031,2702,079▲206516681707(Million yen: Amounts of less than one million yen are rounded down)2,000０21/22Notes regarding this document:Financial results forecast and other forward-looking information contained in this document are based on information currently available to the Company as well as estimates on the economic environment, and are therefore subject to a number of uncertainties.Actual results may differ from these forecasts due to a variety of factors.The Company does not guarantee the accuracy of any information provided in this document.