Sales and operating income grew 9.6% and 7.9%, respectively, year on year.
Sales were 17,148 million yen, up 9.6% year on year. While SHOEI increased sales by 4.4% in Europe, which is the primary market of the company, thanks to the favorable performance of new products, and rose sales by 29.4% in North America, due to the strengthening of its sales network and the healthy performance of new products, the company boosted sales in Japan by 12.9%. In other regions (Asia, Oceania, and South America) where sales dropped in the first half, sales increased in the second half.
Operating income was 3,734 million yen, up 7.9% year on year. The increase in unit prices as well as sales volume contributed, absorbing the augmentation of material costs and SG&A. Since the exchange rate as of the end of the term of the subsidiary (the end of Jun.) was nearly unchanged from the fiscal year September 2017, there was little effect of the exchange rate on profit.
The exchange rates for the sales of SHOEI were 1 US dollar = 109.78 yen (1.14-yen appreciation from the previous term) and 1 euro = 132.03 yen (9.67-yen depreciation from the previous term). The exchange rates for overseas subsidiaries (as of Jun. 29, 2018) were 1 US dollar = 110.54 yen (1.46-yen appreciation from the previous term) and 1 euro = 127.91 yen (0.06-yen appreciation from the previous term).
On Jul. 27, the earnings forecast was revised upwardly, and the results were in line with the forecast as a whole.
The company raised the dividend amount by 8.00 yen/share, paying a term-end dividend of 93.00 yen/share.


The performance of premium helmets remained healthy in all regions of Europe, including Germany, France, and Italy, thanks to robust consumer spending. In North America, the sales of new motorcycles were still sluggish, and the helmet market was on a plateau. In Japan, the sales of new motorcycles of 126 cc or larger displacement were on a plateau, due to robust consumer spending. However, the helmet market expanded, as seniors tend to own more than one high-grade helmet. As the entire Asian economy is growing, the sales of medium and large-sized motorcycles are increasing in China, although the increase rate is lower than before. The helmet market has been healthy as a whole since Aug., although there were some effects of the revision to the helmet specifications.
In this situation, the total sales volume in the world increased 3% year on year to 521,000 products, although some shipments were delayed until the next term due to the typhoon at the end of Sep. In Europe, sales volume declined 5% year on year to 235,000 products, as new products sold well, but the inventory of leading distributors was adjusted. In North America, the company shifted from a 1-distributor system to a 2-distributor system in Oct. last year. Sales volume rose 27% to 90,000 products, as the existing distributor reduced stocks before the shift and the sales of new products, whose shipment began in Mar., were favorable. In Japan, sales volume was firm partially thanks to the release of new products, and increased 9% to 132,000 products. In Asia, total sales volume rose 7% year on year, while in China, sales volume declined 1%, because the helmet specifications were revised in Aug.
"NEOTEC II," a sun visor-attached helmet compatible with an intercom, is highly evaluated for its unorthodox design and intercom function, and became a record-breaking hit.

The number of orders was healthy, and the backlog of orders increased 11.0% from the end of the previous term.



The balance of assets as of the end of the fiscal year September 2018 was 16,755 million yen, up 1,752 million yen from the end of the previous term. This is mainly because cash and deposits increased 884 million yen, receivables rose 384 million yen, inventories grew 290 million yen, and noncurrent assets increased 202 million yen.
The balance of liabilities was 3,096 million yen, up 348 million yen from the end of the previous term. This is mainly because outstanding taxes augmented 161 million yen, payables rose 49 million yen, outstanding payments increased 48 million yen, and net defined benefit liability augmented 43 million yen, while other payables dropped 50 million yen.
The balance of net assets was 13,659 million yen, up 1,403 million yen from the end of the previous term. This is mainly because retained earnings rose 1,407 million yen. Equity ratio was 81.5% (81.7% as of the end of the previous term).

The balance of cash and cash equivalents as of the end of the fiscal year September 2019 was 8,114 million yen, up 884 million yen from the end of the previous term.
Operating CF was 3,304 million yen, up 1,545 million yen from the end of the previous term. The main factors in increasing operating CF were net income before taxes and other adjustments amounting to 3,747 million yen and a depreciation of 952 million yen, while the main factors in decreasing operating CF were receivables increasing 384 million yen, inventories growing 291 million yen, and the payment of corporate income tax, etc. amounting to 1,007 million yen.
Investing CF was 1,214 million yen, down 175 million yen from the end of the previous term. This is mainly because the company invested 1,114 million yen for purchase of fixed assets, in order to maintain and upgrade production equipment.
Free CF was 2,089 million yen, up 1,370 million yen from the end of the previous term.
Financing CF was 1,172 million yen, down 83 million yen from the end of the previous term. This is mainly because the company paid 1,169 million yen for dividends.