August 3, 2021 | ||
Summary of Consolidated Financial and Business Results | ||
for the First Quarter of the Year Ending March 2022 | ||
Company Name: | Oji Holdings Corporation (Code No. 3861 Tokyo Stock Exchange) | |
URL: | https://www.ojiholdings.co.jp/ | |
Representative: | Masatoshi Kaku, President & Chief Executive Officer | |
Contact: | Hiroyuki Isono, Director of the Board, Senior Executive Officer | |
Telephone: | 03-3563-1111 | +81-3-3563-1111(overseas) |
(All yen figures are rounded down to the nearest one million yen)
1. Results for the First Quarter of the Year Ending March 31, 2022 (April 1, 2021 - June 30, 2021) (Unaudited)
- Consolidated Business Results
(Figures shown in percentage are ratios compared to the same period of the previous year)
Net sales | Operating | income | Ordinary income | Profit attributable to | ||||||
owners of parent | ||||||||||
Millions of yen | % | Millions of yen | % | Millions of yen | % | Millions of yen | % | |||
First Quarter of FY2021 | 342,721 | 6.5 | 28,054 | 155.4 | 34,569 | 482.6 | 20,610 | 860.0 | ||
First Quarter of FY2020 | 321,869 | (14.3) | 10,984 | (54.5) | 5,933 | (74.8) | 2,146 | (82.1) | ||
Note: Comprehensive income | First Quarter of FY2021 | 45,125 million | yen | |||||||
First Quarter of FY2020 | (11,065) million yen | |||||||||
Profit per share | Diluted profit per | |||||||||
share | ||||||||||
Yen | Yen | |||||||||
First Quarter of FY2021 | 20.81 | 20.80 | ||||||||
First Quarter of FY2020 | 2.17 | 2.17 |
Note: Oji Holdings has applied the "Accounting Standard for Revenue Recognition" (ASBJ Statement No. 29, March 31, 2020), etc. effective from the beginning of the first quarter of the current consolidated fiscal year. The Accounting Standard for Revenue Recognition has been accounted for in the consolidated financial results for the fiscal year ending in March 2022.
(2) Consolidated Financial Condition
Total assets | Net assets | Shareholders' | Net assets per share | ||
equity ratio | |||||
Millions of yen | Millions of yen | % | Yen | ||
First Quarter of FY2021 | 2,011,192 | 827,010 | 38.6 | 783.63 | |
Year ended March 2021 | 1,981,438 | 865,606 | 37.9 | 758.28 | |
Note: Shareholders' equity | First Quarter of FY2021 | 776,092 million yen | |||
FY2020 | 750,981 million yen |
2. Cash Dividends
Dividend per share | |||||
End of 1Q | End of 2Q | End of 3Q | End of FY | Annual | |
Yen | Yen | Yen | Yen | Yen | |
FY2020 | - | 7.00 | - | 7.00 | 14.00 |
FY2021 | - | ||||
FY2021 (Forecast) | 7.00 | - | 7.00 | 14.00 |
Note : Change in forecast of dividend … None
3. Consolidated Forecasts for the Year Ending March 2022 (April 1, 2021-March 31, 2022)
(Figures shown in percentage for the full year are ratios compared to the previous year, Figures shown in percentage for Second Quarter are ratios compared to the same period of the previous year)
Net sales | Operating income | Ordinary income | Profit attributable to | Profit per share | ||||||
owners of parent | ||||||||||
Second Quarter | Millions of yen | % | Millions of yen | % | Millions of yen | % | Millions of yen | % | Yen | |
700,000 | 7.3 | 50,000 | 70.6 | 50,000 | 126.3 | 30,000 | 191.6 | 30.29 | ||
(cumulative) | ||||||||||
Full year | 1,450,000 | 6.7 | 120,000 | 41.5 | 120,000 | 44.5 | 70,000 | 41.0 | 70.68 | |
Note : Change in consolidated forecasts … No |
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4. Notes
- Changes in important subsidiaries
(changes regarding specified subsidiaries accompanying changes in the scope of consolidation) : None
- Application of simple accounting methods and quarterly peculiar accounting methods : None
- Changes in accounting methods compared with recent consolidated accounting periods
(i) | Changes due to accounting standard changes : | Yes |
(ii) | Changes besides (i) : | None |
(iii) | Accounting estimate change : | None |
(iv) | Restatement : | None |
(4) Outstanding balance of issued shares (common stock)
- Outstanding balance of issued shares at the end of fiscal year (Including treasury shares)
First Quarter of FY2021 | 1,014,381,817 | FY2020 | 1,014,381,817 |
(ii) Outstanding balance of treasury shares at the end of fiscal year | |||
First Quarter of FY2021 | 24,001,338 | FY2020 | 24,002,558 |
(iii) Weighted average number of shares during fiscal year | |||
First Quarter of FY2021 | 990,380,364 | First Quarter of FY2020 | 990,012,407 |
NOTICE
- This document is exempt from audit procedures required by Financial Instruments and Exchange Act.
- Forecasts released are based on expectations of future economic conditions as of the date of publication. The actual results may differ drastically from these forecasts due to various factors that may arise in the future.
- This document is an excerpt translation of the Japanese original and is only for reference purposes. In the event of any discrepancy between this translation and the Japanese original, the latter shall prevail.
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1. Qualitative Information Concerning Business Performance and Financial Situation
(1) Qualitative Information Concerning Business Performance
Business Performance for the First Quarter of FY2021 (April 1, 2021 - June 30, 2021)
Net Sales | Operating Profit | Ordinary Profit | Profit Attributable | Profit Per Share | |
to Owners of Parent | |||||
Billions of yen | Billions of yen | Billions of yen | Billions of yen | Yen | |
1st Quarter of | 342.7 | 28.1 | 34.6 | 20.6 | 20.81 |
FY2021 | |||||
1st Quarter of | 321.9 | 11.0 | 5.9 | 2.1 | 2.17 |
FY2020 | |||||
Increase (Decrease) | 20.9 | 17.1 | 28.6 | 18.5 | |
Increase (Decrease) | 6.5% | 155.4% | 482.6% | 860.0% |
The Oji Group has set "Profitability Improvement of Domestic Business", "Expansion of Overseas Business" and "Promotion of Innovation" as the fundamental policies of its FY2019-2021Medium-term Management Plan. Through "Contribution to a Sustainable Society", we aim to become a global corporate group which stably maintains consolidated operating profit of more than ¥100.0 billion.
Based on the fundamental policies, in the domestic business, we have focused on restructuring our production system to respond to the structural changes in demand, and worked to improve capital efficiency while concentrating management resources on promising businesses to strengthen our ability to generate cash flow. In regard to overseas business, we have organically expanded the existing operations by expanding the number of overseas operations as well as developing new businesses utilizing existing infrastructure. We have also worked to create synergies among our businesses as well as operations. In regard to promoting innovation, we have promoted the development and the early commercialization of new businesses and products that meet the needs of the environment and society, in order to actualize "Contribution to a Sustainable Society".
As the business environment has changed drastically due to the spread of COVID-19 and consumption structure, lifestyles, and working styles have diversified, many opportunities and risks are expected to expand. Meanwhile, we will continue to steadily implement strategic measures to improve our corporate value in line with our fundamental policies of management strategies in Medium-term Management Plan. We will also promptly and appropriately implement business structure reforms in light of environmental changes caused by COVID-19.
Consolidated net sales for the first quarter of FY2021 increased by ¥20.9 billion to ¥342.7 billion (year-on-year increase of 6.5%) due to a gradual recovery in market conditions and an increase in pulp sales prices. Overseas sales ratio increased by 3.7 points from the previous year to 32.4%.
Consolidated operating profit increased by ¥17.1 billion to ¥28.1 billion (year-on-year increase of 155.4%) due to increased profit in each segment. Ordinary profit increased by ¥28.6 billion to ¥34.6 billion (year-on-year increase of 482.6%) due in part to an increase in operating profit and foreign exchange gains. Profit before taxes increased by ¥27.3 billion to ¥33.9 billion (year-on-year increase of 411.9%), and profit attributable to owners of parent increased by ¥18.5 billion to ¥20.6 billion (year-on-year increase of 860.0%). Oji Holdings has applied "Accounting Standard for Revenue Recognition (ASBJ Statement No. 29, March 31, 2020)" from the beginning of the first quarter of FY2021 and changed the accounting method for revenue recognition. Please refer to "Notes of Consolidated Quarterly Financial Statement (Changes in accounting policies)" on page 11 of the attached document for more details.
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Overview of Business Performance for the First Quarter of FY2021 by Segment | |||||||||
(i) Business Performance by Segment | (Unit: Billions of yen) | ||||||||
Net Sales | Operating Profit(Loss) | ||||||||
1st Quarter of | 1st Quarter of | Increase | 1st Quarter of | 1st Quarter of | Increase | ||||
FY2020 | FY2021 | (Decrease) | FY2020 | FY2021 | (Decrease) | ||||
Reporting | Household & | 152.2 | 167.3 | 9.9% | 5.3 | 8.6 | 61.4% | ||
Segment | Industrial Materials | ||||||||
Functional Materials | 48.6 | 45.1 | (7.2%) | 3.3 | 3.4 | 2.2% | |||
Forest Resources & | 58.5 | 66.8 | 14.3% | 1.3 | 9.7 | 666.9% | |||
Environment Marketing | |||||||||
Printing & | 56.2 | 57.8 | 2.8% | (1.0) | 4.8 | - | |||
Communications Media | |||||||||
Total | 315.6 | 337.1 | 6.8% | 8.9 | 26.5 | 199.0% | |||
Others | 63.1 | 71.4 | 13.1% | 1.2 | 2.0 | 59.9% | |||
Total | 378.7 | 408.5 | 7.9% | 10.1 | 28.5 | 182.0% | |||
Adjustment (*) | (56.8) | (65.8) | 0.9 | (0.4) | |||||
Consolidated total | 321.9 | 342.7 | 6.5% | 11.0 | 28.1 | 155.4% | |||
*Adjustment is mainly those concerning internal transactions.
(ii) Overview of Business Performance by Segment
The Oji Group's four reporting segments are: "Household and Industrial Materials", "Functional Materials", "Forest Resources and Environment Marketing", and "Printing and Communications Media". Each of the reporting segment consists of those that are recognized to be similar in terms of economic characteristics, manufacturing methods or processes of products, markets in which products are sold, and types of customers, among the constituent units of the Oji Group. Business segments that are not included in the reporting segments are classified as "Others".
Major business lineup for the segments are as follows. - Household and Industrial Materials:
Containerboard/corrugated containers, boxboard/folding cartons, packing paper/paper bags, household paper, disposable diapers, etc.
- Functional Materials:
Specialty paper, thermal paper, adhesive materials, film, etc.
- Forest Resources and Environment Marketing:
Pulp, energy, forest plantation/lumber processing, etc.
- Printing and Communications Media:
Newsprint, printing/publication/communication paper, etc.
- Others:
Real estate, engineering, trading business, logistics, etc.
As stated in "Changes in accounting policies", "Accounting Standard for Revenue Recognition (ASBJ Statement No. 29, March 31, 2020)" has been adopted from the beginning of the current first quarter and the accounting method for revenue recognition and the method used to calculate profit and loss for business segments have been changed. As a result of this change, compared to the previous method, net sales in the current first quarter decreased by ¥0.6 billion for Household and Industrial Materials segment, ¥3.4 billion for Functional Materials segment, ¥0.1 billion for Forest Resources and Environment Marketing segment, ¥6.8 billion for Printing and Communications Media segment, and ¥ 2.0 billion for Others. The effects on each segment's profit or loss is immaterial.
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○Household and Industrial Materials
In the first quarter of FY2021, net sales amounted to ¥167.3 billion (year-on-year increase of 9.9%), and operating profit was ¥8.6 billion (year-on-year increase of 61.4%).
Regarding domestic business, domestic sales volume of containerboard and corrugated containers increased from the previous year, due to continued steady sales for e-commerce industry as a result of a trend of staying home to prevent the spread of COVID-19, in addition to the overall recovery in demand. As for boxboard, domestic sales volume increased from the previous year due to a recovery in demand for souvenirs and gifts, which had declined in the previous year on account of the trends of staying home and refraining from holding events. Export sales volume of boxboard increased from the previous year. As for packing paper, domestic sales volume increased from the previous year due in part to a recovery of economic activities in the automotive industry despite a continual decline in demand due to the trend of staying home and the restriction on economic activities. Export sales volume increased from the previous year. As for disposable diapers for babies, domestic sales volume decreased, but export sales volume remained static from the previous year. As for disposable diapers for adults, sales volume decreased from the previous year. As for household paper, sales volume remained static from the previous year.
Regarding overseas business, in Southeast Asia, in containerboard business, both sales volume and sales amount increased from the previous year due to strong demand from converting companies. As for corrugated containers, sales volume and sales amount increased from the previous year due to strong sales since the end of last year and penetration of a price increase. As for disposable diapers, in Malaysia, sales volume decreased from the previous year due to sluggish sales at retail stores on account of the impact of COVID-19. In Indonesia, sales volume increased significantly from the previous year due to our continual efforts for sales expansion at convenience stores. In Oceania, as for containerboard, export sales volume decreased from the previous year due in part to a disruption of marine transport schedules accompanying the worldwide shortage of containers. As for corrugated containers, sales volume increased from the previous year both in New Zealand and Australia.
○Functional Materials
In the first quarter of FY2021, net sales amounted to ¥45.1 billion (year-on-year decrease of 7.2%), and operating profit was ¥3.4 billion (year-on-year increase of 2.2%).
Regarding domestic business, overall sales volume and sale amount increased from the previous year due to an increase in demands for films for condensers used in electric vehicles (electric vehicles, hybrid vehicles, plug-in hybrid vehicles and fuel cell vehicles) , film separate for manufacturing electronic components for smartphones, and paper for manufacturing electronic components, although demands for tickets and luxury packages have continued to decrease due to a decline in the number of tourists visiting Japan and decrease in events held accompanying the spread of COVID-19. As for thermal paper, sales volume remained static but sales amount decreased from the previous year on account of a decline in demand for high-priced products for medical applications.
Regarding overseas business, sales volume increased from the previous year in Southeast Asia, and remained static in South America. However, sales volume decreased in Europe from the previous year in reaction to customers' trends to secure inventories in the previous year.
○Forest Resources and Environment Marketing
In the first quarter of FY2021, net sales amounted to ¥66.8 billion (year-on-year increase of 14.3%), and operating profit was ¥9.7 billion (year-on-year increase of 666.9%).
Regarding domestic business, sales volume of pulp business increased from the previous year mainly because of an increase in the export volume of dissolving pulp to China due to a recovery from the economic stagnation caused by the spread of COVID-19. Sales volume of energy business decreased from the previous year due to suspension of facilities at MPM Oji Eco-Energy Co., Ltd. following regular inspections.
Regarding overseas business, sales volume of pulp business decreased from the previous year, while sales amount increased due to an increase in pulp sales prices. As for lumber business, sales volume increased from the previous year.
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Oji Holdings Corporation published this content on 03 August 2021 and is solely responsible for the information contained therein. Distributed by Public, unedited and unaltered, on 03 August 2021 09:55:27 UTC.