Financial information for fiscal 2016

Summary

During the consolidated fiscal year, the Japanese economy drifted toward a gradual recovery on the economic policies of the government. However, the economic slowdown in China and other emerging countries in Asia, changes in U.S. policy directions after the presidential election, and other factors mean that the future remains uncertain.

The Aichi Steel Group’s production and sales volumes of specialty steel and forgings, our core products, increased over the previous consolidated fiscal year due to strong demand despite the effect of the January 8 explosion.

Net sales stood at 212,837 million yen for the current consolidated fiscal year, a 0.6% decrease from the previous consolidated fiscal year of 214,120 million yen. In terms of profit, we posted logistics costs of 4,808 million yen in the year as our share of costs incurred by suppliers because of the January 8 accident. Although selling prices declined, sales volumes increased, energy prices dropped, and our overseas subsidiaries experienced a business recovery.

As a result, the Aichi Steel Group posted an operating income of 7,218 million yen, a 22.7% increase from the previous fiscal year of 5,883 million yen, which was due to increased costs associated with alternative production efforts after the January 8 accident. Total assets were 273,107 million yen, up 21,347 million yen from the end of the previous fiscal year.

Consolidated cash flows

Net cash provided by operating activities decreased by 11,843 million yen from the previous fiscal year to 13,350 million yen. Although profit before income taxes increased 6,636 million yen compared with the preceding term, other current assets decreased, and cash flow from the increase in other current liabilities rose 9,045 million yen (cash decreased 4,881 million yen in the previous consolidated fiscal year), cash declined by 12,495 million yen due to an increase in accounts receivable-trade and a decrease in notes and accounts payable-trade (cash increased 15,682 million yen in the previous consolidated fiscal year).

Net cash used in investing activities decreased by 7,555 million yen from the previous fiscal year to 19,677 million yen. The main factor was payments for purchases of property, plant and equipment, which used 9,404 million yen more than in the previous fiscal year.

Net cash used in financing activities stood at 15,231 million yen (previous fiscal year was a deficit of 9,466 million yen). This was due to income of 20,000 million yen through a corporate bond issue in this fiscal year.

Sales by business segment

Net sales (consolidated)

Net sales (consolidated)

Specialty steel

Specialty steel is the mainstay product of the Aichi Steel Group.
Demand was strong for specialty steel predominantly for use in automobiles, and for stainless steel predominantly for use in the domestic market, with an increase in overall sales volume this fiscal year compared to the previous year’s decrease, which was due to the effect of the January 8 accident. This resulted in net sales of 97,450 million yen for the current consolidated fiscal year, a 3.3% increase from the previous consolidated fiscal year of 94,321 million yen.

Forged products

Closed-die forged products for automobiles account for a major part of this segment. Selling prices declined, and overseas subsidiary net sales decreased due to exchange rate changes, resulting in net sales of 97,751 million yen for this consolidated fiscal year, a 4.4% decrease from the previous consolidated fiscal year of 102,248 million yen.

Electro-magnetic products

Aiming to turn this segment into the Company’s core business in the future, the Aichi Steel Group develops business in four industrial fields: electronic components, dental accessories, sensors, and magnetic products. In the electronic components segment, the sales volume of heat dissipation components for inverters installed on hybrid vehicles increased, resulting in net sales of 13,673 million yen for this consolidated fiscal year, a 1.3% increase from the previous consolidated fiscal year of 13,495 million yen.

Other businesses

Aichi Steel’s subsidiaries are involved in such business activities as providing services and engaging in computer software development. Net sales for this consolidated fiscal year were 3,962 million yen, a 2.3% decrease from the previous consolidated fiscal year of 4,055 million yen.

  • Sales volume
    (Non-consolidated basis)

    Sales volume (Non-consolidated basis)
  • Net sales
     

    Net sales
  • Operating income

    Operating income
  • Profit attributable to owners of parent

    Profit attributable to owners of the parent
  • ROE

    ROE
  • Net assets, capital adequacy ratio

    Net assets, capital adequacy ratio

Five–year summary (consolidated)

Five–year summary (consolidated)

Notes:

1 Diluted net income per share for 2013 is not written because no dilutive shares exist.

2 The cash dividend for the fiscal year ended March 31, 2017 was 55.00 yen per share, comprising an interim dividend of 5.00 yen and a final dividend of 50.00 yen.
Because every 10 shares in the Company were consolidated into 1 share effective of October 1, 2016, the interim dividend of 5.00 yen was pre-consolidation and the final dividend of 50.00 yen was post-consolidation. When making calculations related to the share consolidation, the full-year dividend is considered to be 100.00 yen per share, comprising an interim
dividend of 50.00 yen and a final dividend of 50.00 yen

Financial/business information and highlights