Toyota Boshoku Corporation (3116) investor relations material

Executive summary

• Operating profit declined due to lower volumes in China, market impacts from the Middle East, and higher overhead costs, despite positive effects from new products and foreign exchange gains.

• Revenue rose 10.1% year-over-year to ¥528.1 billion, driven by higher production in Japan and favorable foreign exchange, despite lower production in China.

• Profit attributable to owners of the parent dropped 18.9% year-over-year to ¥8.8 billion.

• Forecasts have been revised downward due to changing demand in China, with efforts underway to minimize profit decline through cost reductions and profit improvement activities.

• Continued efficient upfront investments are planned to achieve the 2030 Mid-term Plan, focusing on expanding sales, strategic human capital, and R&D.

Financial highlights

• Q1 FY2027 revenue rose 10.1% year-over-year to ¥528.1 billion, while operating profit fell 15.1% to ¥15.9 billion.

• Gross profit increased to ¥51.5 billion from ¥49.9 billion year-over-year.

• Net profit attributable to owners dropped 18.9% year-over-year to ¥8.8 billion.

• Earnings per share (basic) decreased to ¥49.03 from ¥60.48 year-over-year.

• Cash and cash equivalents at period end rose to ¥283.6 billion from ¥255.7 billion year-over-year.

Outlook and guidance

• FY2027 revenue forecast is ¥2,100 billion, down from the previous forecast of ¥2,120 billion.

• Operating profit forecast is ¥76.0 billion, revised down from ¥80.0 billion.

• Net profit forecast is ¥46.0 billion, down from ¥48.0 billion.

• Annual dividend is planned at ¥86 per share, maintaining a DOE of 3.1%.

• Exchange rate assumptions: USD/JPY 150, EUR/JPY 180, THB/JPY 4.7, CNY/JPY 21.7.