Note:This document is a translation of a part of the original Japanese version and provided for reference purposes only. In the event of any discrepancy between the Japanese original and this English translation, the Japanese original shall prevail.
Consolidated Financial Results
for the Fiscal Year Ended June 30, 2022
[Japanese GAAP]
August 10, 2022 | ||||||||||||
Company name: ENVIPRO HOLDINGS Inc. | ||||||||||||
Stock exchange listing: Tokyo Stock Exchange | ||||||||||||
Code number: 5698 | ||||||||||||
URL: https://www.envipro.jp/ | ||||||||||||
Representative: Tomikazu Sano | Representative Director, President/CEO | |||||||||||
Contact: Naoki Takekawa | Director in charge of Management Department | |||||||||||
Phone: +81-544-21-3160 | ||||||||||||
Scheduled date of Annual General Meeting of Shareholders: September 28, 2022 | ||||||||||||
Scheduled date of commencing dividend payments: September 29, 2022 | ||||||||||||
Scheduled date of filing annual securities report: September 28, 2022 | ||||||||||||
Availability of supplementary briefing material on annual financial results: Available | ||||||||||||
Schedule of annual financial results briefing session: Scheduled (for securities analysts and institutional investors) | ||||||||||||
(Amounts of less than one million yen are rounded down) | ||||||||||||
1. Consolidated Financial Results for the Fiscal Year Ended June 30, 2022 (July 01, 2021 to June 30, 2022) | ||||||||||||
(1) Consolidated Operating Results | (% indicates changes from the previous corresponding period.) | |||||||||||
Net sales | Operating profit | Ordinary profit | Profit attributable to | |||||||||
owners of parent | ||||||||||||
Fiscal year ended | Million yen | % | Million yen | % | Million yen | % | Million yen | % | ||||
June 30, 2022 | 57,319 | 40.0 | 3,343 | 56.9 | 4,166 | 66.1 | 3,111 | 108.6 | ||||
June 30, 2021 | 40,933 | 20.8 | 2,130 | 169.6 | 2,508 | 168.3 | 1,491 | 147.8 |
(Note) Comprehensive income: | Fiscal year ended June 30, 2022: |
Fiscal year ended June 30, 2021: |
¥ | 3,205 | million | [ | 122.3%] |
¥ | 1,441 | million | [ | 124.2%] |
Basic earnings per | Diluted earnings per | Rate of return on | Ordinary profit to | Operating profit to | |||
share | share | equity | total assets ratio | net sales ratio | |||
Fiscal year ended | Yen | Yen | % | % | % | ||
June 30, 2022 | 105.20 | 100.72 | 21.6 | 15.0 | 5.8 | ||
June 30, 2021 | 50.57 | 48.42 | 12.1 | 9.6 | 5.2 | ||
(Reference) Share of profit of entities accounted for using equity method: | Fiscal year ended June 30, 2022: | ¥ | 523 million | ||||
Fiscal year ended June 30, 2021: | ¥ | 380 million |
(Note) The Company conducted a 2-for-1 stock split of shares of common stock on April 20, 2022; however, basic earnings per share and diluted earnings per share are calculated on the assumption that the stock split was conducted at the beginning of the previous fiscal year.
(2) Consolidated Financial Position
Total assets | Net assets | Equity ratio | Net assets per share | |||
As of | Million yen | Million yen | % | Yen | ||
June 30, 2022 | 28,963 | 16,219 | 54.6 | 533.00 | ||
June 30, 2021 | 26,548 | 13,333 | 48.8 | 438.86 | ||
(Reference) Equity: As of | June 30, 2022: | ¥ | 15,808 | million | ||
As of | June 30, 2021: | ¥ | 12,959 | million |
(3) Consolidated Cash Flows
Cash flows from | Cash flows from | Cash flows from | Cash and cash | |
equivalents at the end | ||||
operating activities | investing activities | financing activities | ||
of period | ||||
Fiscal year ended | Million yen | Million yen | Million yen | Million yen |
June 30, 2022 | 3,873 | (1,404) | (765) | 8,913 |
June 30, 2021 | (252) | (15) | (2,866) | 7,117 |
2. Dividends
Annual dividends | Payout | Dividends | ||||||||
Total | to net | |||||||||
ratio | ||||||||||
1st | 2nd | 3rd | Year-end | Total | dividends | assets | ||||
(consolidated) | ||||||||||
quarter-end | quarter-end | quarter-end | (consolidated) | |||||||
Fiscal year ended | Yen | Yen | Yen | Yen | Yen | Million yen | % | % | ||
June 30, 2021 | - | 0.00 | - | 25.00 | 25.00 | 369 | 24.7 | 3.0 | ||
June 30, 2022 | - | 0.00 | - | 25.00 | 25.00 | 741 | 23.8 | 5.1 | ||
Fiscal year ending | ||||||||||
June 30, 2023 | - | 0.00 | - | 20.00 | 20.00 | 29.2 | ||||
(Forecast) | ||||||||||
(Note) The Company conducted a 2-for-1 stock split of shares of common stock on April 20, 2022. The figures for dividends for the fiscal year ended June 30, 2021 are those prior to the stock split, and the figures for dividends for the fiscal year ending June 30, 2022, (forecast) are those after taking the stock split into consideration.
3. Consolidated Financial Results Forecast for the Fiscal Year Ending June 30, 2023 (July 01, 2022 to June 30, 2023)
(% indicates changes from the previous corresponding period.)
Net sales | Operating profit | Ordinary profit | Profit attributable to | Basic earnings | ||||||
owners of parent | per share | |||||||||
Million yen | % | Million yen | % | Million yen | % | Million yen | % | Yen | ||
Full year | 55,000 | (4.0) | 2,500 | (25.2) | 2,900 | (30.4) | 2,030 | (34.7) | 68.44 |
* Notes:
- Changes in significant subsidiaries during the period under review (changes in specified subsidiaries resulting in changes in scope of consolidation): No
- Changes in accounting policies, changes in accounting estimates and retrospective restatement
- Changes in accounting policies due to the revision of accounting standards: Yes
- Changes in accounting policies other than 1) above: No
- Changes in accounting estimates: No
- Retrospective restatement: No
- Total number of issued shares (common shares)
- Total number of issued shares at the end of the period (including treasury shares):
June 30, 2022: | 30,102,454 | shares |
June 30, 2021: | 30,102,454 | shares |
2) Total number of treasury shares at the end of the period:
June 30, 2022: | 442,348 | shares |
June 30, 2021: | 572,182 | shares |
3) Average number of shares during the period: | ||
Fiscal Year ended June 30, 2022: | 29,571,348 | shares |
Fiscal Year ended June 30, 2021: | 29,495,462 | shares |
(Note) The Company conducted a 2-for-1 stock split of common stock on April 20, 2022; however, the total number of issued shares at the end of the period, the total number of treasury shares at the end of the period, and the average number of shares during the period are calculated on the assumption that the stock split was conducted at the beginning of the previous fiscal year.
- These consolidated financial results are outside the scope of audit by certified public accountants or audit firms
- Explanation of the proper use of financial results forecast and other notes
The financial results forecast and other forward-looking statements in this material are based on information currently available to the Company and certain assumptions deemed to be reasonable, and actual results may differ significantly due to various factors. Please see the "(4) Future Outlook" from page 4 of the attached document of this material for the conditions for financial and other results, as well as important matters to be aware of when using the financial results forecast.
Table of Contents of Appendix | ||
1.Overview of Business Results, etc. ..............................................................................................................2 | ||
(1) | Overview of Business Results for the Period under Review ..................................................................... | 2 |
(2) Overview of Financial Position for the Period under Review ................................................................... | 3 | |
(3) | Overview of Cash Flows for the Period under Review ............................................................................. | 4 |
(4) Future Outlook ........................................................................................................................................... | 4 | |
(5) Significant Events regarding Going Concern Assumption ...................................................................... | 5 | |
2.Basic Stance Concerning Choice of Accounting Standards ....................................................................... | 5 | |
3.Consolidated Financial Statements and Primary Notes ................................................................................ | 6 | |
(1) | Consolidated Balance Sheets ..................................................................................................................... | 6 |
(2) | Consolidated Statements of Income and Comprehensive Income ............................................................. | 8 |
(3) | Consolidated Statements of Changes in Net Assets ................................................................................. | 10 |
(4) Consolidated Statements of Cash Flows .................................................................................................. | 12 | |
(5) Notes to the Consolidated Financial Statements ...................................................................................... | 14 | |
(Notes on Going Concern Assumption) ........................................................................................................ | 14 | |
(Changes in Accounting Policies) ................................................................................................................. | 14 | |
(Additional Information) ............................................................................................................................... | 14 | |
(Segment Information) ................................................................................................................................... | 15 | |
(Per Share Information) ................................................................................................................................. | 19 | |
(Significant Subsequent Events) ..................................................................................................................... | 19 |
1
1. Overview of Business Results, etc.
(1) Overview of Business Results for the Period under Review
In the Group's business areas, the situation remained unclear mainly due to stagnation in the supply chain amid the COVID-19 pandemic, as well as lockdowns in some regions and concerns over an economic slowdown in China. Meanwhile, although export demand for metal scrap repeated a pattern of increasing and decreasing, metal scrap prices remained firm due to the growing reputation of recycled raw materials against the backdrop of decarbonization, the ongoing weakening of the yen in the second half, and other factors.
As a result, the average ferrous scrap price (Tokyo Steel (Tahara) Tokkyu Grade Seaborne Price) during the fiscal year ended June 30, 2022 was ¥55,520, trending upward from ¥36,054 of the same period of the previous fiscal year. With regard to nonferrous metals, etc., the average prices of copper, aluminum, nickel, and cobalt rose above those seen in the same period of the previous fiscal year.
Amid this environment, during the fiscal year ended June 30, 2022, with a strategic concept of challenging ourselves to resolve issues toward realizing a "Decarbonized society", "Circular economy society" and "Distributed society" by viewing it as a business opportunity, based on our mission statement "Contribute to create a sustainable society", we have proceeded with measures to establish "Realization of concrete cases of the circular economy" and "A disciplined group of autonomous individuals with emergent abilities."
As a result, for the fiscal year ended June 30, 2022, net sales were ¥57,319 million (up 40.0% year on year), operating profit was ¥3,343 million (up 56.9% year on year), ordinary profit was ¥4,166 million (up 66.1% year on year), and profit attributable to owners of parent was ¥3,111 million (up 108.6% year on year).
Results by segment are as follows, with net sales shown as inter-segment sales or sales including transfers.
Summary of Business Results by Segment
<Net sales> | (Million yen) | |||
The 12th term | The 13th term | Increase/decrease | ||
(Fiscal year ended | (Fiscal year ended | |||
ratio | ||||
June 30, 2021) | June 30, 2022) | |||
Resource Circulation Business | 14,216 | 20,397 | 43.5% | |
Global Trading Business | 31,033 | 42,989 | 38.5% | |
Lithium-ion Battery Recycling Business | 356 | 1,347 | 277.8% | |
Others | 354 | 443 | 25.0% | |
Adjustment | (5,026) | (7,857) | - | |
Total | 40,933 | 57,319 | 40.0% | |
<Segment profit (loss)> | (Million yen) | |||
The 12th term | The 13th term | Increase/decrease | ||
(Fiscal year ended | (Fiscal year ended | |||
ratio | ||||
June 30, 2021) | June 30, 2022) | |||
Resource Circulation Business | 2,080 | 2,752 | 32.3% | |
Global Trading Business | 711 | 1,147 | 61.2% | |
Lithium-ion Battery Recycling Business | (80) | 478 | - | |
Others | 84 | 120 | 43.4% | |
Adjustment | (287) | (332) | - | |
Total | 2,508 | 4,166 | 66.1% |
(Note) Segment profit (loss) is adjusted with ordinary profit in the consolidated statements of income.
-
Resource Circulation Business
Metal scrap prices rose year on year, and the profitability of resource recycling increased further against the
backdrop of physical sorting technologies. In addition, the handling volume of ferrous scrap discharged from
2
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Envipro Holdings Inc. published this content on 10 August 2022 and is solely responsible for the information contained therein. Distributed by Public, unedited and unaltered, on 10 August 2022 07:05:14 UTC.