Summary of Consolidated Financial Results [Japanese GAAP]
For the Fiscal Year Ended March 31, 2022
May 12, 2022
Listed company: Nippon Kayaku Co., Ltd. (URL https://www.nipponkayaku.co.jp/english/)
Listed stock exchange: First Section, Tokyo Stock Exchange
Code No.: 4272
Representative (name, position): Atsuhiro Wakumoto, President
Director in charge of inquiries: Tsutomu Kawamura, Executive Director, General Manager of Finance & Accounting Division, Financial Group
Scheduled date of the Annual Shareholders Meeting: June 28, 2022
Scheduled date for start of dividend payments: June 29, 2022
Filing date of securities report: June 28, 2022
Preparation of supplementary materials for financial results: Yes
Financial results presentation meeting: Yes (for securities analysts and institutional investors)
1. Consolidated Business Results for the Fiscal Year Ended March 31, 2022 (April 1, 2021-March 31, 2022) (Figures shown are rounded down to the nearest million yen.)
(1) Consolidated Operating Results
(Percentages indicate amount of change from the same period of the previous fiscal year.)
Net sales | Operating income | Ordinary income | Profit attributable to | ||||||||||||
owners of parent | |||||||||||||||
Fiscal year ended | Million yen | % | Million yen | % | Million yen | % | Million yen | % | |||||||
184,805 | 6.6 | 21,050 | 38.5 | 23,154 | 40.0 | 17,181 | 36.6 | ||||||||
March 31, 2022 | |||||||||||||||
Fiscal year ended | 173,381 | (1.0) | 15,194 | (13.1) | 16,538 | (8.3) | 12,574 | (1.9) | |||||||
March 31, 2021 | |||||||||||||||
Note: Comprehensive | income | Fiscal year ended March 31, 2022: 26,123 million yen (11.8%) | |||||||||||||
Fiscal year ended March 31, 2021: 23,368 million yen (640.1%) | |||||||||||||||
Profit attributable | Profit attributable | Ordinary income | |||||||||||||
to owners of par- | to owners of par- | Operating income | |||||||||||||
Return on equity | to total assets | ||||||||||||||
ent per | ent per | ratio | to net sales ratio | ||||||||||||
share-primary | share-diluted | ||||||||||||||
Fiscal year ended | Yen | Yen | % | % | % | ||||||||||
101.70 | 101.65 | 7.3 | 7.6 | 11.4 | |||||||||||
March 31, 2022 | |||||||||||||||
Fiscal year ended | 73.62 | 73.61 | 5.8 | 5.8 | 8.8 | ||||||||||
March 31, 2021 | |||||||||||||||
Reference: Equity | in earnings of affiliates | ||||||||||||||
Fiscal year ended March 31, 2022: 210 million yen | |||||||||||||||
Fiscal year ended March 31, 2021: 263 million yen | |||||||||||||||
(2) Consolidated Financial Position | |||||||||||||||
Total assets | Net assets | Equity ratio | Net assets per share | ||||||||||||
As of March 31, | Million yen | Million yen | % | Yen | |||||||||||
315,459 | 246,425 | 77.8 | 1,459.06 | ||||||||||||
20212 | |||||||||||||||
As of March 31, | 294,535 | 228,273 | 77.2 | 1,332.06 | |||||||||||
2021 | |||||||||||||||
Reference: Equity | As of March 31, 2022: | 245,479 million yen | |||||||||||||
As of March 31, 2021: 227,506 million yen |
This document is an English translation of parts of the Japanese-language original.
All financial information has been prepared in accordance with generally accepted accounting principles in Japan.
Nippon Kayaku Co., Ltd.
Summary of Consolidated Financial Results [Japanese GAAP]
For the Fiscal Year Ended March 31, 2022
(3) Status of Consolidated Cash Flows
Cash flows from oper- | Cash flows from in- | Cash flows from fi- | Cash and cash equiva- | |||||||||||||
lents at | ||||||||||||||||
ating activities | vesting activities | nancing activities | ||||||||||||||
end of year | ||||||||||||||||
Fiscal year ended | Million yen | Million yen | Million yen | Million yen | ||||||||||||
23,141 | (10,641) | (11,090) | 52,962 | |||||||||||||
March 31, 2022 | ||||||||||||||||
Fiscal year ended | 24,408 | (17,606) | (8,402) | 47,483 | ||||||||||||
March 31, 2021 | ||||||||||||||||
2. Status of Dividends | ||||||||||||||||
Dividend amount per share | Total dividend | Dividend | Dividend | |||||||||||||
End of | End of | End of | payout to net | |||||||||||||
End of | Year | payment | payout ratio | |||||||||||||
first | second | third | year | (year) | (consolidated) | assets ratio | ||||||||||
quarter | quarter | quarter | (consolidated) | |||||||||||||
Yen | Million yen | % | % | |||||||||||||
Fiscal year ended | - | 15.00 | - | 15.00 | 30.00 | 5,123 | 40.7 | 2.3 | ||||||||
March 31, 2021 | ||||||||||||||||
Fiscal year ended | - | 15.00 | - | 25.00 | 40.00 | 6,730 | 39.3 | 2.9 | ||||||||
March 31, 2022 | ||||||||||||||||
Fiscal year ending | ||||||||||||||||
March 31, 2023 | - | 20.00 | - | 20.00 | 40.00 | - | ||||||||||
(forecast) |
3. Consolidated Business Results Forecasts for the Fiscal Year Ending March 31, 2023 (April 1, 2022- March 31, 2023)
(Percentages indicate amount of change from the same period of the previous fiscal year.)
Net sales | Operating income | Ordinary income | Profit attributable to | Profit attributable to | ||||||||||
owners of parent | owners | |||||||||||||
of parent per share | ||||||||||||||
First | Million yen | % | Million yen | % | Million yen | % | Million yen | % | Yen | |||||
97,100 | 9.3 | 8,700 | (20.2) | 9,300 | ( | 21.4 | ) | 6,000 | ( | 34.8 | ) | 35.66 | ||
half | ||||||||||||||
Full | 196,800 | 6.5 | 18,400 | (12.6) | 19,400 | ( | 16.2 | ) | 14,000 | ( | 18.5 | ) | 83.21 | |
year | ||||||||||||||
Notes
- Significant changes in subsidiaries during the fiscal period (changes in designated subsidiaries that result in changes in scope of consolidation): None
- Changes to accounting policies and estimates and restatements
- Changes to accounting policies associated with revision of accounting standards or similar items: Yes
- Changes other than [1]: None
- Changes to accounting estimates: None
- Restatements: None
Note: See "3. Consolidated Financial Statements and Notes to Consolidated Financial Statements, (5) Notes to Consolidated Financial Statements (Changes to Accounting Policies)" on page 15 of the Supplementary Information for further details.
- Number of shares issued (common stock)
-
Number of shares issued at end of the fiscal period (including treasury stock) As of March 31, 2022: 170,503,570 shares
As of March 31, 2021: 177,503,570 shares - Number of treasury stock at end of the fiscal period As of March 31, 2022: 2,257,985 shares
As of March 31, 2021: 6,710,650 shares - Average number of shares during the fiscal period Fiscal year ended March 31, 2022: 168,942,203 shares Fiscal year ended March 31, 2021: 170,793,371 shares
-
Number of shares issued at end of the fiscal period (including treasury stock) As of March 31, 2022: 170,503,570 shares
This document is an English translation of parts of the Japanese-language original.
All financial information has been prepared in accordance with generally accepted accounting principles in Japan.
Nippon Kayaku Co., Ltd.
Summary of Consolidated Financial Results [Japanese GAAP]
For the Fiscal Year Ended March 31, 2022
Reference: Overview of Non-consolidated Business Results
1. Non-consolidated Business Results for the Fiscal Year Ended March 31, 2022 (April 1, 2021-March 31, 2022)
(1) Non-consolidated Operating Results
(Percentages indicate amount of change from the same period of the previous fiscal year.)
Net sales | Operating income | Ordinary income | ||||||||||
Fiscal year ended | Million yen | % | Million yen | % | Million yen | % | ||||||
124,023 | 7.3 | 11,593 | 22.9 | 16,080 | 19.5 | |||||||
March 31, 2022 | ||||||||||||
Fiscal year ended | 115,618 | 8.5 | 9,436 | 4.0 | 13,459 | (0.3) | ||||||
March 31, 2021 | ||||||||||||
Net income | Net income per share | Diluted net income | ||||||||||
per share | ||||||||||||
Fiscal year ended | Million yen | % | Yen | Yen | ||||||||
12,609 | (44.2) | 74.63 | - | |||||||||
March 31, 2022 | ||||||||||||
Fiscal year ended | 22,610 | 111.2 | 132.38 | - | ||||||||
March 31, 2021 | ||||||||||||
(2) Non-consolidated Financial Position | ||||||||||||
Total assets | Net assets | Equity ratio | Net assets per share | |||||||||
As of March 31, | Million yen | Million yen | % | Yen | ||||||||
236,430 | 184,800 | 78.2 | 1,098.36 | |||||||||
2022 | ||||||||||||
As of March 31, | 230,810 | 180,428 | 78.2 | 1,056.38 | ||||||||
2021 | ||||||||||||
Reference: Equity As of March 31, 2022: 184,800 million yen
As of March 31, 2021: 180,428 million yen
- Summary financial statements are not subject to audit by a certified public accountant or audit firm.
- Analysis related to appropriate use of the business results forecasts, and other notes
(Disclaimer concerning forward-looking statements)
The information in this report constitutes forward-looking statements regarding future events and performance. This information is based on the beliefs and assumptions of management in light of information currently available to it at the time of announcement and subject to a number of uncertainties that may affect future results. Actual business results may differ substantially from the forecasts herein due to various factors. For matters pertaining to business forecasts, please refer to 1. Overview of Operating Results, Financial Position, and Future Outlook, (4) Future Out- look" on page 5 of the Supplementary Information.
(How to obtain the supplementary materials for financial results)
We have scheduled a briefing on financial results for securities analysts and institutional investors on Friday, May 13, 2022. The materials for the briefing will be posted on the corporate website.
This document is an English translation of parts of the Japanese-language original.
All financial information has been prepared in accordance with generally accepted accounting principles in Japan.
Nippon Kayaku Co., Ltd.
Summary of Consolidated Financial Results [Japanese GAAP]
For the Fiscal Year Ended March 31, 2022
Supplementary Information
Contents | ||
1. Overview of Operating Results, Financial Position, and Future Outlook | 2 | |
(1) | Overview of Operating Results for the Fiscal Year Ended March 31, 2022 | 2 |
(2) | Overview of Financial Position for the Fiscal Year Ended March 31, 2022 | 3 |
(3) | Overview of Cash Flows for the Fiscal Year Ended March 31, 2022 | 3 |
(4) | Future Outlook | 5 |
(5) | Basic Policy Concerning Profit Distribution and Dividends for the Fiscal Year Ended March | 5 |
31, 2022 and Fiscal Year Ending March 31, 2023 | ||
2. Basic Stance on Selection of Accounting Principles | 6 | |
3. Consolidated Financial Statements and Notes to Consolidated Financial Statements | 7 | |
(1) | Consolidated Balance Sheets | 7 |
(2) | Consolidated Statements of Income & Consolidated Statements of Comprehensive Income | 9 |
(3) | Consolidated Statements of Changes in Net Assets | 11 |
(4) | Consolidated Statements of Cash Flows | 13 |
(5) | Notes to Consolidated Financial Statements | 15 |
(Notes Regarding Assumptions for the Going Concern) | 15 | |
(Changes to Accounting Policies) | 15 | |
(Segment Information) | 16 | |
(Significant Subsequent Events) | 18 |
This document is an English translation of parts of the Japanese-language original.
All financial information has been prepared in accordance with generally accepted accounting principles in Japan.
1
Nippon Kayaku Co., Ltd.
Summary of Consolidated Financial Results [Japanese GAAP]
For the Fiscal Year Ended March 31, 2022
1. Overview of Operating Results, Financial Position, and Future Outlook
(1) Overview of Operating Results for the Fiscal Year Ended March 31, 2022
In this fiscal year (April 1, 2021 to March 31, 2022), the global economy saw economic activity begin to return to normal and signs of economic recovery, due in part to progress on vaccinations for the novel coronavirus (COVID-19). However, the impacts of the semiconductor shortage and the automobile industry production cuts, caused by difficulty in procuring parts during the COVID-19 pandemic in Southeast Asia, were exacerbated in Japan and overseas.
In the functional chemicals business, the need for semiconductor materials is increasing as rapid advances in digital technology lead to higher performance high-speed (5G) communications devices and other digital equipment, and increasingly sophisticated electronic equipment in vehicles. The global trends in energy and resource conservation are also creating demand for development of new environmentally friendly materials and recycling technology.
In the pharmaceuticals industry, we contribute to extending the healthy lifespan of people in Japan through innovative drug development while ensuring a stable supply of high quality pharmaceuticals. We must do this to pass on a society to the next generation where all people in Japan can be assured of receiving quality medical care. Nip- pon Kayaku must swiftly and consistently engage in pharmaceutical research, development, manufacturing, and supply to meet these expectations.
The automotive industry saw a rebound from the slump in global demand caused by the global spread of the novel coronavirus, with the exception of a few regions. However, the pace of overall automobile production decelerated from the second quarter into the third quarter, owing to the impact of the semiconductor shortage. It is still unclear when the pandemic will end and the failure to resolve the global shortage of parts has also slowed the speed of recovery in automobile production subsequently.
Amid these conditions, the Nippon Kayaku Group worked to implement the key themes and resolve the mid- and long-term key issues outlined in "KAYAKU Next Stage," the mid-term business plan launched in the fiscal year ended March 31, 2020, while also making active use of flextime, telecommuting, and other systems to accommodate the restrictions on corporate activity. We took these steps to ensure the safety of employees working in the Company and at Group companies while also promoting efficient workstyles aimed at minimizing the impact on our business.
As a result, consolidated net sales for the fiscal year ended March 31, 2022 totaled 184,805 million yen, an increase of 11,423 million yen (6.6%) year-on-year. Sales outperformed the previous fiscal year in all of the businesses.
Consolidated operating income totaled 21,050 million yen, an increase of 5,856 million yen (38.5%) year-on-year, outperforming the previous fiscal year in all businesses.
Consolidated ordinary income totaled 23,154 million yen, an increase of 6,615 million yen (40.0%) year-on-year, owing to foreign exchange gains.
Profit attributable to owners of parent was 17,181 million yen, an increase of 4,607 million yen (36.6%) year-on-year.
Regarding changes in accounting policies, the Company implemented the Accounting Standard for Revenue Recognition (ASBJ Statement No. 29, revised March 31, 2020) and other guidance from the beginning of this consolidated fiscal year. We have therefore used numbers based on calculation methods subject to different standards than in the previous fiscal year. See 3. Consolidated Financial Statements and Notes to Consolidated Financial Statements, (5) Notes to Consolidated Financial Statements (Changes to Accounting Policies) for further details.
Performance by business segment is as described below.
[1] Functional Chemicals Business
Sales rose to 77,152 million yen, an increase of 4,687 million yen (6.5%) year-on-year.
The functional materials business as a whole outperformed the previous fiscal year. The outperformance resulted from strong sales of semiconductor materials such as epoxy resins, MEMS, and other resin composites. The strong performance resulted from an increase in demand for IT equipment for telecommuting from home and other uses, in addition to the proliferation of high-speed (5G) communication devices and IoT, and increasingly sophisticated electronic equipment in vehicles. The semiconductor manufacturing equipment added through business acquisition also contributed to performance.
The color materials business as a whole outperformed the previous fiscal year. This outperformance was resulted from strong sales of colorants for inkjet printers for consumer use due to increased demand for printing while telecommuting from home as well as a rebound in demand for colorants for inkjet printers in industrial applications, materials for thermal paper, and dyes for textiles.
The catalyst business underperformed the previous fiscal year despite strong orders both in Japan and exports overseas. The underperformance resulted from sales pushed earlier into the previous period and postponements caused by delays in the construction of customers' plants due to COVID-19.
In the Polatechno business, a rebound in demand for polarizing films for LCD projectors and dye-type polariz-
This document is an English translation of parts of the Japanese-language original.
All financial information has been prepared in accordance with generally accepted accounting principles in Japan.
2
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Nippon Kayaku Co. Ltd. published this content on 26 May 2022 and is solely responsible for the information contained therein. Distributed by Public, unedited and unaltered, on 26 May 2022 07:11:26 UTC.