NOK : Consolidated Financial Results for the Three Months Ended June 30, 2022 (Japanese GAAP)PDF（187KB）

Member of Financial Accounting Standards Foundation

NOK CORPORATION and Consolidated Subsidiaries

Consolidated Financial Results for the Three Months Ended June 30, 2022 (Japanese GAAP)

		Date: August 2, 2022
Company name:	NOK Corporation	Listed on the Tokyo Stock Exchange
Securities code:	7240	URL https://www.nok.co.jp
Representative:	Masao Tsuru	Telephone: [phone]
	Representative Director, CEO
Inquiries:	Takashi Kaku
	Department Manager
	Corporate Communication Department
Quarterly securities report filing date (as planned): August 12, 2022

Dividend payable date (as planned): -

Supplemental material of quarterly results: None

Convening briefing of quarterly results: None

(Fractions are rounded down to the nearest million yen.)

1. Consolidated Financial Results for the First Three Months of Fiscal 2022 (April 1, 2022 to June 30, 2022)

(1)	Consolidated operating results						(Percentage figures represent year-on-year changes.)
			Net sales			Operating income		Ordinary income			Profit attributable to owners
								of parent
		3 mos. ended June	million yen		%		million yen	%	million yen		%		million yen	%
		161,031		2.7	(1,394)	-	4,941		(54.6)		2,053	(70.0)
		30, 2022
		3 mos. ended June	156,735		38.5	6,882	-	10,875		-		6,846	-
		30, 2021
Note: Comprehensive income: 17,887 million yen, 88.9% (as of June 30, 2022); 9,471 million yen, 250.7% (as of June 30, 2021)
			Net income per share		Diluted net income per share
		3 mos. ended June			yen				yen
				11.87			-
		30, 2022
		3 mos. ended June			39.58			-
		30, 2021
(2)	Consolidated financial position
			Total assets			Net assets	Capital adequacy ratio	Net assets per share
				million yen			million yen				%			yen
		June 30, 2022			868,175			565,262				58.9			2,955.68
		March 31, 2022			857,324			554,355				58.6			2,903.78

Reference: Owner's equity: 511,232 million yen (as of June 30, 2022); 502,262 million yen (as of March 31, 2022)

2. Dividends

			Dividend per share
	First quarter	Second quarter	Third quarter	Fiscal year end	Total
	yen	yen	yen	yen	yen
FY 2021	-	25.00	-	35.00	60.00
FY 2022	-
FY 2022 (Forecast)		25.00	-	25.00	50.00

Note: Correction of dividend forecast from the most recent dividend forecast: None

3. Consolidated Forecasts for Fiscal 2022 (April 1, 2022 to March 31, 2023)

(Percentage figures represent year-on-year changes.)

	Net sales		Operating income	Ordinary income	Profit attributable to	Net income per share
		owners of parent
	million yen	%	million yen	%	million yen	%	million yen	%	yen
Half year	351,800	8.5	4,300	(71.1)	12,200	(44.1)	7,000	(46.2)	40.47
Full year	740,800	8.5	22,300	(28.8)	34,200	(25.9)	19,500	(24.5)	112.74

Note: Correction of financial forecast from the most recent financial forecast: Yes

NOK Corporation (7240): Summary of Consolidated Financial Results for the Three Months Ended June 30, 2022

1. Qualitative Information on the Consolidated Operating Results for the Three Months Ended June 30, 2022

1. Explanation of Financial Position and Operating Results
   During the first three months of the current consolidated fiscal year, the future outlook of the Japanese economy became increasingly unpredictable due to downside risks to the economy such as soaring raw material and energy prices, fluctuations in financial markets, and the protraction of the conflict between Russia and Ukraine, on top of the impact of China's lockdowns as a result of the spread of COVID-19 and the constraints on automobile production caused by the supply shortage of semiconductors and other components.
   In the automobile industry, production declined both in Japan and overseas owning to the effect of China's lockdowns and the shortage of semiconductors and other components.
   In the electronic equipment industry, demand for smartphones and HDDs decreased due to the impact of China's lockdowns and the shortage of semiconductors and other components.
   Under these circumstances, the operating results of the Group by business segment were as follows:
   In the seal business, sales for automobile applications decreased due largely to production cuts, despite an increase in sales as a result of foreign exchange rate movements as well as passing on soaring raw material prices to selling prices. Sales to manufacturers of general industrial machinery declined reflecting the effect of China's lockdowns among other factors, despite brisk domestic demand from manufacturers of construction machinery, machine tools, and robots.
   As a result, net sales stood at 81,005 million yen (down 3.6% year on year). Operating income amounted to 3,161million yen (down 68.1% year on year) due to soaring material prices and a rise in expenses in addition to the effect of decreased sales.
   In the electronic product business, sales to manufacturers of high-end smartphones and automobiles increased on the back of the significant positive effect of foreign exchange rate movements on sales, despite a decline in demand due to China's lockdowns and the impact of the semiconductor shortage among other factors.
   As a result, net sales totaled 73,047 million yen (up 10.1% year on year). Operating loss came to 4,907 million yen (compared to an operating loss of 3,369 million yen in the same period of the previous fiscal year) due to a decrease in actual sales excluding the effect of foreign exchange rate movements and an increase in expenses.
   In other businesses, sales increased reflecting a recovery in demand related to office equipment as well as the positive effect of foreign exchange rate movements on sales, despite a decline in demand for special lubricants.
   As a result, net sales totaled 6,978 million yen (up 9.8% year on year). Operating income came to 347 million yen (up 4.1% year on year).
   In summary, the Group posted the following results for the first three months of the current consolidated fiscal year: Net sales totaled 161,031 million yen (up 2.7% year on year); operating loss was 1,394 million yen (compared to an operating income of 6,882 million yen in the same period of the previous fiscal year); ordinary income ended at 4,941 million yen (down 54.6% year on year), resulting in 2,053 million yen in profit attributable to owners of parent (down 70.0% year on year).
   Total assets as of June 30, 2022 stood at 868,175 million yen, an increase of 10,851 million yen compared with March 31, 2022. This was mainly attributable to increases in property, plant and equipment and inventories, despite decreases in cash and deposits and notes and accounts receivable-trade.
   Total liabilities as of June 30, 2022 amounted to 302,913 million yen, a decrease of 56 million yen compared with March 31, 2022. This was mainly due to a decrease in accounts payable-trade, despite an increase in short-term loans payable. Net assets totaled 565,262 million yen, an increase of 10,907 million yen compared with March 31, 2022. Consequently, the ratio of shareholders' equity to total assets stood at 58.9%. This mainly reflected an increase in foreign currency translation adjustment due to exchange rate fluctuations, despite the payment of dividends.
2. Explanation of Consolidated Financial Projections and Other Prospects for the Future
   As a result of a review of the consolidated financial projections for the first half of the fiscal year ending March 2023, our projection for net sales, operating income, ordinary income and profit attributable to owners of parent have been revised downward from the previously announced projections.
   With regard to the consolidated earnings forecast for the fiscal year ending March 2023, the Company has left the earnings forecast for the second half unchanged and has only reflected the revised amount of the earnings forecast for the first half.

- 1 -

NOK Corporation (7240): Summary of Consolidated Financial Results for the Three Months Ended June 30, 2022

2. Consolidated Quarterly Financial Statements and Principal Notes

(1) Consolidated Quarterly Balance Sheet		(million yen)
		FY 2021	1Q FY 2022
		(as of March 31, 2022)	(as of June 30, 2022)
Assets
Current assets
Cash and deposits	113,085	108,772
Notes and accounts receivable-trade	151,015	147,745
Electronically recorded monetary claims	18,489	18,926
Inventories	111,261	119,396
Other	13,323	14,840
Allowance for doubtful accounts	(132)	(137)
Total current assets	407,043	409,544
Noncurrent assets
Property, plant and equipment	88,204	88,789
Buildings and structures, net
Machinery, equipment and vehicles, net	102,894	109,461
Other, net	58,103	59,182
Total property, plant and equipment	249,203	257,433
Intangible assets	3,971	4,090
Investments and other assets
Investment securities	163,644	160,228
Net defined benefit asset	1,869	1,941
Other	31,733	35,075
Allowance for doubtful accounts	(142)	(138)
Total investments and other assets	197,105	197,107
Total noncurrent assets	450,280	458,631
Total assets		857,324	868,175

- 2 -

NOK Corporation (7240): Summary of Consolidated Financial Results for the Three Months Ended June 30, 2022

		(million yen)
	FY 2021	1Q FY 2022
	(as of March 31, 2022)	(as of June 30, 2022)
Liabilities
Current liabilities
Accounts payable-trade	62,568	55,941
Short-term loans payable	60,545	67,112
Income taxes payable	6,924	2,580
Provision for bonuses	11,148	9,265
Other	61,150	63,117
Total current liabilities	202,337	198,017
Noncurrent liabilities

Long-term loans payable

Deferred tax liabilities

Net defined benefit liabilities

Provision for business restructuring

Other

Total noncurrent liabilities

Total liabilities

Net assets

Shareholders' equity

Capital stock

Capital surplus

Retained earnings

Treasury stock

Total shareholders' equity Accumulated other comprehensive income

Valuation difference on available-for-sale securities Foreign currency translation adjustment Remeasurements of defined benefit plans

Total accumulated other comprehensive income Non-controlling interests

Total net assets

Total liabilities and net assets

10,398	12,335
9,404	10,127
73,355	73,461
579	604
6,893	8,367
100,632	104,895
302,969	302,913
23,335	23,335
23,591	23,591
365,880	361,880
(230)	(233)
412,577	408,573
60,663	57,258
34,263	50,399
(5,243)	(4,999)
89,684	102,658
52,092	54,029
554,355	565,262
857,324	868,175

- 3 -

NOK Corporation (7240): Summary of Consolidated Financial Results for the Three Months Ended June 30, 2022

(2) Consolidated Quarterly Income Statement and Consolidated Quarterly Comprehensive Income Statement

(Consolidated Quarterly Income Statement)
(Three Months Ended June 30, 2022)		(million yen)
		3 months ended	3 months ended
		June 30, 2021	June 30, 2022
Net sales	156,735	161,031
Cost of sales	128,960	139,332
Gross profit	27,774	21,699
Selling, general and administrative expenses	20,892	23,094
Operating income (loss)	6,882	(1,394)
Non-operating income
Dividend income	1,159	1,367
Foreign exchange gains	804	3,578
Share of profit of entities accounted for using equity	1,856	1,408
method
Other	774	692
Total non-operating income	4,596	7,047
Non-operating expenses	452	493
Interest expenses
Other	150	217
Total non-operating expenses	602	711
Ordinary income	10,875	4,941
Extraordinary income	70	1,196
Gain on sales of noncurrent assets
Gain on sales of investment securities	-	1,596
Other	0	-
Total extraordinary income	70	2,792
Extraordinary loss	124	232
Loss on retirement of noncurrent assets
Other	0	5
Total extraordinary loss	124	238
Income before income taxes	10,822	7,495
Income taxes	2,758	4,502
Net income	8,063	2,992
Profit attributable to non-controlling interests	1,217	939
Profit attributable to owners of parent		6,846	2,053

- 4 -