Consolidated Financial Results for the Year Ended March 31, 2023(JPGAAP)
May 15, 2023 | ||||
Name of listed company: Nissan Chemical Corporation | Stock Exchange: Tokyo | |||
Code Number: 4021 | URL: https://www.nissanchem.co.jp/ | |||
Representative: YAGI Shinsuke, President | ||||
Inquiry to: ARITA Nobuhiro, Senior Managing Associate Executive Officer and Head of Finance and Accounting Department | Tel. +81 3 4463 8401 | |||
Scheduled date of annual shareholders' meeting | : June 28, 2023 | Scheduled dividend payment date : June 29, 2023 | ||
Scheduled date of submitting the Annual Securities Report | : June 28, 2023 | |||
Supplemental information | : Yes | |||
Financial results meeting | : Yes (for institutional investors and analysts) | |||
(Amounts rounded down to the nearest million yen) |
1. Consolidated Financial Results for the Year Ended March 31, 2023 (From April 1, 2022 to March 31, 2023)
(1) Consolidated Operating Results | (% indicates the rate of increase/decrease year on year) | |||||||||||
Net sales | Operating | Ordinary | Net income attributable to | |||||||||
income | income | owners of parent | ||||||||||
Million yen | % | Million yen | % | Million yen | % | Million yen | % | |||||
Year ended March 31, 2023 | 228,065 | 9.7 | 52,283 | 2.6 | 55,793 | 3.9 | 41,087 | 6.0 | ||||
Year ended March 31, 2022 | 207,972 | (0.5) | 50,959 | 19.8 | 53,690 | 22.3 | 38,776 | 15.9 |
(Note) Comprehensive income: | Year ended March 31, 2023 | : 41,690 million yen, 14.2% | ||||||||
Year ended March 31, 2022 | : 36,511 million yen, (5.6)% | |||||||||
Basic earnings | Diluted net income | Ratio of | Ratio of ordinary | Ratio of operating | ||||||
net income to | income to | income to | ||||||||
per share | per share | |||||||||
shareholders' equity | total assets | net sales | ||||||||
Yen | Yen | % | % | % | ||||||
Year ended March 31, 2023 | 291.36 | - | 19.4 | 19.3 | 22.9 | |||||
Year ended March 31, 2022 | 271.88 | - | 19.2 | 19.7 | 24.5 | |||||
(Reference) Equity in earnings of affiliates | : Year ended March 31, 2023 | : 1,485 million yen | ||||||||
: Year ended March 31, 2022 | : 950 million yen | |||||||||
(2) Consolidated Financial Position | ||||||||||
Total assets | Net assets | Equity ratio | Net assets | |||||||
per share | ||||||||||
Million yen | Million yen | % | Yen | |||||||
As of March 31, 2023 | 298,715 | 221,526 | 73.1 | 1,557.12 | ||||||
As of March 31, 2022 | 279,687 | 208,009 | 73.6 | 1,454.01 | ||||||
(Reference) Shareholders' equity: | As of March 31, 2023 : 218,419 million yen | |||||||||
As of March 31, 2022 : 205,912 million yen | ||||||||||
(3) Consolidated Cash Flows | ||||||||||
Cash flows from | Cash flows from | Cash flows from | Cash and cash | |||||||
equivalents at | ||||||||||
operating activities | investing activities | financing activities | ||||||||
end of period | ||||||||||
Million yen | Million yen | Million yen | Million yen | |||||||
Year ended March 31, 2023 | 35,226 | (19,643) | (25,030) | 29,647 | ||||||
Year ended March 31, 2022 | 41,949 | (12,395) | (27,868) | 34,658 | ||||||
2. Cash Dividends | ||||||||||
Cash dividends per share | Total | Dividend | Ratio of | |||||||
payout | dividend | |||||||||
First | Second | Third | cash dividends | |||||||
Year-end | Annual | ratio | to net assets | |||||||
(annual) | ||||||||||
quarter | quarter | quarter | (consolidated) | (consolidated) | ||||||
Yen | Yen | Yen | Yen | Yen | Million yen | % | % | |||
Year ended March 31, 2022 | - | 50.00 | - | 72.00 | 122.00 | 17,306 | 44.9 | 8.6 | ||
Year ended March 31, 2023 | - | 70.00 | - | 94.00 | 164.00 | 23,076 | 56.3 | 10.9 | ||
Year ending March 31, 2024 | - | 70.00 | - | 94.00 | 164.00 | 55.1 | ||||
(Outlook) | ||||||||||
3. Outlook of Consolidated Financial Results for the Fiscal Year Ending March 31, 2024 (From April 1, 2023 to March 31, 2024)
(% indicates the rate of increase/decrease against the same period of the previous year)
Net sales | Operating | Ordinary | Net income attributable to | Basic earnings | ||||||||
income | income | owners of parent | per share | |||||||||
Million yen | % | Million yen | % | Million yen | % | Million yen | % | Yen | ||||
Six months | 108,600 | (0.9) | 26,100 | (7.3) | 26,400 | (17.5) | 19,700 | (16.8) | 140.74 | |||
ending September 30, 2023 | ||||||||||||
Year ending March 31, 2024 | 237,300 | 4.0 | 54,700 | 4.6 | 55,500 | (0.5) | 41,500 | 1.0 | 297.61 | |||
:Yes
: Yes
: None
: None
: None
(Note) Please refer to [4. Consolidated Financial Statements (5) Notes to Consolidated Financial Statements "(Changes in Accounting Policies)"] on page 15 for further details.
(3) Number of shares outstanding (common shares)
1. Number of shares outstanding (including treasury shares)
As of March 31, 2023 | : 141,300,000 shares |
As of March 31, 2022 | : 143,000,000 shares |
2. Number of treasury shares | |
As of March 31, 2023 | : 1,029,072 shares |
As of March 31, 2022 | : 1,383,611 shares |
3. Average number of shares outstanding over the year | |
As of March 31, 2023 | : 141,019,817 shares |
As of March 31, 2022 | : 142,624,319 shares |
(Note) The Company has introduced | "Board Benefit Trust (BBT)" based on the resolution of Board of Directors' meeting held on |
July 30,2019. The shares held by the Trust are included in the number of treasury shares at the end of the period, and they are included in the number of treasury shares deducted in calculating the average number of shares outstanding over the period. The number of shares held by the Trust (included in treasury shares) at the end of the period was 152,500 shares. In addition, the average number of shares held by the Trust during the period was 154,679 shares.
This is not included in the average number of shares outstanding.
-
Presentation regarding implementation status of audit procedures
This financial release is not subject to audit procedures based on Financial Instruments and Exchange Law in Japan.
Audit procedures of financial statements based on Financial Instruments and Exchange have not been completed at the time of disclosure. - Explanations regarding appropriate use of business outlook and other special notes
The business outlook contained in this report is based on information available at the time of disclosure. Actual operating results may differ materially from the outlook due to various factors.
The prerequisite information of outlook and other items are on page 3 to page 4.
For supplemental information, please refer to our website.
The transcript of financial results briefing will be released on our website as well.
Table of Contents for Attached Materials | ||
1. Analysis of Business Performance and Financial Position | 2 | |
(1) | Analysis of Business Performance | 2 |
(2) | Analysis of Financial Position | 4 |
(3) | Basic Policy on Distribution of Earnings and Dividends for current and next term | 5 |
2. Management Policy | 6 | |
(1) | Basic Management Policy | 6 |
(2) | Mid-andLong-term Management Strategies and Issues to be addressed | 6 |
(3) | Target Management Indicator | 8 |
3. Basic Approach to the Selection of Accounting Standards | 8 | |
4. Consolidated Financ ial Statements | 9 | |
(1) | Consolidated Balance Sheets | 9 |
(2) | Consolidated Statements of Income / Consolidated Statements of Comprehensive Income | 11 |
(3) | Consolidated Statements of Changes in Net Assets | 13 |
(4) | Consolidated Statements of Cash Flow s | 15 |
(5) | Notes to Consolidated Financial Statements | 16 |
(Notes on Assumption Going Concern) | 16 | |
(Changes in Accounting Policies) | 16 | |
(Additional Information) | 16 | |
(Segment and Related Information) | 17 | |
(Per Share Information) | 22 | |
(Significant Subsequent Events) | 22 |
1
1. Analysis of Business Performance and Financial Position
(1) Analysis of Business Performance
During the current fiscal year (April 1, 2022 to March 31, 2023), although consumer spending showed a recovery trend due to the relaxation of behavioral restrictions, the domestic economy did not achieve a full-fledged recovery due to soaring raw fuel material prices, inflation, as well as continued weak exports against the backdrop of sluggish overseas economies. Under these circumstances, in the Chemicals Segment, sales of both Basic Chemicals and Fine Chemicals increased. In the Performance Materials Segment, although sales of Display Materials declined, Semiconductor Materials and Inorganic Materials performed well.
In the Agricultural Chemicals Segment, sales increased. In the Healthcare Segment, sales of "Custom Chemicals" (custom manufacturing and solution proposal business for pharmaceutical companies) increased.
As a result, sales, operating income and net income attributable to owners of parent fell short of the forecasts announced in February. However, compared to the same period last year, sales and each income increased. In addition, operating and ordinary income achieved record highs for the ninth consecutive year, and net income attributable to owners of parent for the tenth consecutive year.
(Million yen, amounts rounded down to the nearest million yen) | ||||||
FY2021 | FY2022 | Year-on-year | FY2022 | Change from | ||
(Actual) | (Actual) | change | (Outlook) | Outlook | ||
Sales | 207,972 | 228,065 | 20,093 | 229,500 | (1,435) | |
Operating income | 50,959 | 52,283 | 1,323 | 53,400 | (1,117) | |
Ordinary income | 53,690 | 55,793 | 2,103 | 55,500 | 293 | |
Net income attributable | 38,776 | 41,087 | 2,311 | 42,100 | (1,013) | |
to owners of parent | ||||||
Explanations by segments are as below.
We changed our reporting segments from the first quarter of the current fiscal year. For details, please refer to "4. Consolidated Financial Statements (5) Notes to Consolidated Financial Statements (Segment information)."
The Chemicals Segment
In Basic Chemicals, sales of urea and AdBlue®* (high-grade urea solution) increased due to price revisions in response to higher raw material and fuel. Sales of melamine (adhesives agent for particle board) declined as a result of the termination of sales in the third quarter under the structural reforms announced in August 2021.
In Fine Chemicals, sales of "TEPIC" (powder coating agent for paint, sealants, etc.) decreased, but environmental chemicals (sterilizing and disinfecting agents for pools and septic tanks, etc.) and fineoxocol (raw materials for cosmetics, etc.) increased.
As a result, sales of this segment were 39,034 million yen (an increase of 1,385 million yen) and operating income was 1,379 million yen (a decrease of 2,408 million yen). Compared to the outlook, sales were below 0.7 billion yen and operating income was below 0.3 billion yen.
* AdBlue® is a registered trademark of the Verband der Automobilindustrie (VDA).
The Performance Materials Segment
In Display Materials, sales of "SUNEVER" (LCD alignment coating) declined. In Semiconductor Materials, sales of anti-reflective coating for semiconductors (ARC®*) increased due to strong sales through the first half of the year, however, customer utilization declined from the third quarter of the year. In Inorganic Materials, sales of "SNOWTEX" for polishing electronic materials and hard coating and Oilfield materials (solvents to improve the efficiency of shale oil and gas extraction) were steady.
As a result, sales of this segment were 82,606 million yen (an increase of 941 million yen) and operating income was 25,449 million yen (a decrease of 2,171 million yen). Compared to the outlook, sales were a below 0.9 billion yen and operating income was below 0.8 billion yen.
* ARC® is registered trademarks of Brewer Science, Inc.
2
The Agricultural Chemicals Segment
Sales of Fluralaner (active ingredients for veterinary pharmaceuticals) increased due to the completion of customer inventory adjustments in the previous fiscal year. In Japanese domestic market, sales of "ROUNDUP" (non-selective foliar application herbicide), "ALTAIR" (paddy rice herbicide) and "GRACIA" (insecticide) were firm. In the overseas market, sales increased significantly due to strong sales of "LEIMAY" (fungicide), "GRACIA" and "TARGA" (herbicide).
As a result, sales of this segment were 81,584 million yen (an increase of 15,765 million yen) and operating income was 23,130 million yen (an increase of 5,002 million yen). "Compared to the outlook, sales were above 0.2 billion yen and operating income was below 0.4 billion yen.
The Healthcare Segment
Sales of "LIVALO" (anti-cholesterol drug) were at the same level as the FY2021. In "Custom Chemicals", sales increased due to steady sales of generic active pharmaceutical ingredients.
As a result, sales of this segment were 6,673 million yen (an increase of 83 million yen) and operating income was 2,990 million yen (an increase of 176 million yen). Compared to the outlook, sales were above 0.1 billion yen and operating income was above 0.1 billion yen.
Trading
Sales of this segment were 99,066 million yen (an increase of 18,629 million yen) and operating income was 3,701 million yen (an increase of 797 million yen). Compared to the outlook, sales were above 0.1 billion yen and operating income was above 0.4 billion yen.
Others
Sales of this segment were 26,384 million yen (an increase of 2,789 million yen) and operating income was 879 million yen (an increase of 187 million yen).
(Outlook of business result for the next term) | ||||||
Outlook of Financial Results | ||||||
(Billion yen, amounts rounded to the nearest billion yen) | ||||||
FY2022 | FY2023 | Increase or | Rate of change | |||
Actual | Outlook | decrease | ||||
(%) | ||||||
(A) | (B) | (B-A) | ||||
Sales | 228.1 | 237.3 | +9.2 | +4.0% | ||
Operating income | 52.3 | 54.7 | +2.4 | +4.6% | ||
Ordinary income | 55.8 | 55.5 | (0.3) | (0.5)% | ||
Net income attributable to owners of | 41.1 | 41.5 | +0.4 | +1.0% | ||
parent | ||||||
Basic earnings per share | 291.36 yen | 297.61 yen | +6.25 yen | +2.1% | ||
Average U.S. dollar exchange rate | 136 yen | 128 yen | - | - | ||
3
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Nissan Chemical Corporation published this content on 15 May 2023 and is solely responsible for the information contained therein. Distributed by Public, unedited and unaltered, on 15 May 2023 06:16:51 UTC.