August 3, 2023
Consolidated Financial Results (Under IFRS)
For the First Quarter of the March 31, 2024 Fiscal Year
AIR WATER INC.
Head Office: 12-8, Minami semba 2-chome,
Chuo-ku, Osaka, Japan
(Note: All amounts are rounded down to the nearest million yen.)
1. Results for the three months ended June 30, 2023
(1) Consolidated operating results
(% of change from previous year)
Profit | Total | |||||||||||||||
Revenue | Operating profit | Profit before tax | Profit | attributable to | comprehensive | |||||||||||
owners of parent | income | |||||||||||||||
Million | % | Million | % | Million | % | Million | % | Million | % | Million | % | |||||
yen | yen | yen | yen | yen | yen | |||||||||||
Three months | ||||||||||||||||
ended | 230,039 | 2.4 | 11,263 | -13.3 | 11,501 | -9.3 | 7,362 | -13.0 | 7,141 | -11.7 | 21,563 | 28.8 | ||||
June 30, 2023 | ||||||||||||||||
Three months | ||||||||||||||||
ended | 224,720 | 8.9 | 12,984 | -19.4 | 12,683 | -21.3 | 8,457 | -26.6 | 8,089 | -24.1 | 16,741 | 32.6 | ||||
June 30, 2022 | ||||||||||||||||
Basic earnings | Diluted earnings | |||||||||||||||
per share | per share | |||||||||||||||
Yen | Yen | |||||||||||||||
Three months ended | 31.39 | 31.36 | ||||||||||||||
June 30, 2023 | ||||||||||||||||
Three months ended | 35.69 | 35.66 | ||||||||||||||
June 30, 2022 | ||||||||||||||||
- Consolidated financial position
Ratio of equity | ||||
Total assets | Total equity | Equity attributable | attributable | |
to owners of parent | to owners of parent | |||
to total assets | ||||
Million yen | Million yen | Million yen | % | |
As of June 30, 2023 | 1,091,366 | 460,846 | 444,111 | 40.7 |
As of March 31, 2023 | 1,091,645 | 446,482 | 430,232 | 39.4 |
2. Dividends
Dividend per share | |||||||||||||
End of first | End of second | End of third | Year-end | Annual | |||||||||
quarter | quarter | quarter | |||||||||||
Yen | Yen | Yen | Yen | Yen | |||||||||
The fiscal year | - | 28.00 | - | 32.00 | 60.00 | ||||||||
ended March 31, 2023 | |||||||||||||
The fiscal year | - | ||||||||||||
ending March 31, 2024 | |||||||||||||
The fiscal year | 30.00 | - | 30.00 | 60.00 | |||||||||
ending March 31, 2024 | |||||||||||||
(Forecasts) |
(Note) Changes in forecast of dividends for the fiscal year ending March 31, 2024, from the latest disclosure: No
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3. Forecast of consolidated operating results for the fiscal year ending March 31, 2024
(% of change from previous year)
Revenue | Operating profit | Profit before tax | Profit attributable to | Basic earnings | ||||||
owners of parent | per share | |||||||||
Million | % | Million | % | Million | % | Million | % | Yen | ||
yen | yen | yen | yen | |||||||
The second | ||||||||||
quarter | 500,000 | 7.8 | 32,000 | 23.4 | 31,000 | 22.4 | 20,000 | 22.4 | 87.90 | |
(cumulative) | ||||||||||
The fiscal year | 1,080,000 | 7.5 | 72,000 | 15.8 | 70,000 | 14.8 | 44,000 | 9.6 | 193.34 | |
(Note) Changes in forecast of consolidated operating results for the fiscal year ending March 31, 2024, from the latest disclosure: No
Notes
- Significant changes in subsidiaries during the period (changes in specified subsidiaries with changes in the scope of consolidation): None
- Changes in accounting policies and changes in accounting estimates
a. Changes in accounting policies required by IFRS: | None |
b. Changes in accounting policies other than (a): | None |
c. Changes in accounting estimates: | None |
- Number of shares outstanding (ordinary shares)
a. Total number of shares outstanding (including treasury shares)
As of June 30, 2023: | 229,755,057 shares |
As of March 31, 2023: | 229,755,057 shares |
b. Number of shares of treasury shares | |
As of June 30, 2023: | 2,145,087 shares |
As of March 31, 2023: | 2,402,613 shares |
c. Average number of shares during the term | |
First Three months of the fiscal year ending March 31, 2024: | 227,478,311 shares |
First Three months of the fiscal year ended March 31, 2023: | 226,634,168 shares |
- This report is exempt from quarterly review procedure based on the Financial Instruments and Exchange Act.
- Explanations and other special notes concerning the appropriate use of business performance forecasts
・The forward-looking statements such as result forecasts included in this document are based on the information available to AIR WATER INC. (hereinafter "the Company") at the time of the announcement and on certain assumptions considered reasonable. Actual results may differ materially from the forecast depending on a range of factors. For matters relating to the forecasts, please, refer to "1-(3) Explanation of future prediction information such as forecast of consolidated operating results".
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1.Qualitative Information relating to First Quarter Settlement of Accounts
(1) Explanation of Operating Results
-
Operating results for the current period
During the first quarter of the current consolidated fiscal year, the Japanese economy recovered moderately due to the
upward trend in corporate capital investment, in addition to the recovery of consumer spending reflecting the normalization of social and economic activity that has been impacted by the COVID-19 pandemic. However, the future remained uncertain mainly due to the decline in global demand for semiconductors and the increasing risk of the slowdown of overseas economies.
In this business environment, the Group achieved revenue of ¥1 trillion in the year ended March 31, 2022. To achieve the "terrAWell 30" long-term vision towards 2030, in line with its two foundations for growth, the "global environment" and "wellness," the Group produced synergy through the integration of its management resources, specifically its diverse businesses, human resources and technologies, and overall optimization, and accelerated initiatives to create new businesses that contribute to solving social issues.
Above all, in overseas and electronics-related businesses, which are positioned as growth areas, the Group pushed forward with M&A activities and the enhancement of manufacturing and supply infrastructure to expand the industrial gas business in North America and India. At the same time, the Group continued its aggressive capital investment in gas supply plants in response to the construction and expansion of semiconductor manufacturing plants, which is under way across Japan. Further, the Group established the new Global & Engineering Group, which oversees engineering functions as a technological domain essential for supplying industrial gases and promotes and manages overseas expansion, including the establishment of governance and risk management, in a centralized manner. The Group also began to enhance its core factory, which produces gas supply plants, and implemented other initiatives to further reinforce its engineering framework as the core of the industrial gas business.
In addition, the Group reformed its business structure with a focus on the integration and reorganization of group companies in business sectors including electronics and agricultural processing in Hokkaido to push its growth strategy forward in response to changes in the business environment. Thus, initiatives were implemented to create synergy within the Group and improve profitability through the optimal allocation of management resources.
Further, to create new businesses through innovation as quickly as possible, the Group established the new Gas Technology Development Center, which is specialized in the development of new ways of using gases, and set up a Development Center in each business sector. Thus, the Group aggressively promoted the development of new business models that help solve social issues, such as electronic and functional materials, decarbonization solutions, dental pulp regeneration therapy and onshore aquaculture.
During the first quarter of the current consolidated fiscal year, steady progress was made in measures to respond to the rising costs, including price revisions that were implemented in the previous fiscal year for various products including industrial gases and salt for business use. In Japan, there was a recovery in the foods and beverages field, reflecting the resumption of people's movements. Overseas, demand for gas remained brisk in India. Further, the woody biomass power generation business, whose overall performance was affected by the surge in marine transportation costs in the previous fiscal year, remained on a recovery trend due to the improvement of the cost environment.
However, there were changes in the external environment, including the slump of the semiconductor market and the slowdown of demand related to COVID-19, and the impact of the shortage of raw materials for carbonic acid gas was added to this.
As a result, for the current first quarter consolidated cumulative period, the group's revenue was ¥230,039 million (102.4% that of the corresponding period of the previous year), operating profit was ¥11,263 million (86.7%), and profit attributable to owners of parent was ¥7,141 million (88.3%).
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2) Consolidated results by segment for this period
From the first quarter of the current consolidated fiscal year, the engineering business in Japan and the overseas and engineering business including the industrial gas business in India, which were previously included in Digital & Industry, are included in the Other Business. Similarly, the carbonic acid gas and hydrogen business, which was previously included in Energy solutions, is now a part of Digital & Industry.
The segment information for the first quarter of the previous consolidated fiscal year shown here was prepared based on the revised reporting segments.
(Million yen) | |||||
Revenue | Operating profit | ||||
FY 2023.1Q | YoY Growth | FY2023.1Q | YoY Growth | ||
Digital & Industry | 81,316 | 108.2% | 5,333 | 92.8% | |
Energy Solutions | 13,821 | 92.5% | 665 | 71.6% | |
Health & Safety | 52,120 | 97.1% | 2,401 | 86.8% | |
Agriculture & Foods | 38,297 | 103.3% | 1,354 | 100.9% | |
Other Business | 44,483 | 101.3% | 783 | 57.6% | |
(Adjustment) | - | - % | 725 | 86.5% | |
Total | 230,039 | 102.4% | 11,263 | 86.7% |
(Note) The adjustment to operating profit is due to costs incurred at the company's headquarters division which was not allocated to any reporting segment.
<Digital & Industry>
Revenue in this segment was ¥81,316million (108.2% that of the corresponding period of the previous year), and operating profit was ¥5,333 million (92.8%).
In the business as a whole, there was steady progress in the revision of industrial gas prices, which has been under way since the previous fiscal year, and on-site gas supply for large semiconductor manufacturers maintained a high operating rate. On the other hand, there was a year-on-year decline in profit due to a shortage of the raw material gas in the carbonic acid gas supply in addition to the deteriorated conditions of the petrochemical market and customers' inventory adjustments in the functional materials sector.
In the electronics business, performance was on par with the previous year, despite a decline in sales of special chemical materials and heat control equipment for semiconductor manufacturing equipment, which reflected the decrease in demand for semiconductors. Performance was maintained because on-site gas supply for large semiconductor manufacturers basically maintained a high operating rate and customers continued to enhance equipment in anticipation of the medium- and long-term growth of demand, and as a result, demand for equipment for supplying special chemical materials and related construction work remained steady.
In the functional materials business, sales of precision polishing pads, electronic materials, etc. decreased due to a decline in semiconductor demand. In addition, basic chemicals were weak in reaction to the conditions of the petrochemical market that was trending upward in the same period of the previous fiscal year, and functional materials for agrochemicals were also affected by customers' inventory adjustments. Because of these and other factors, the performance of the functional materials business as a whole declined significantly year on year.
In the industrial gas business, the carbon dioxide gas supply was affected by shortage of raw material gas, and domestic demand for industrial gases, including on-site gas supply services for steel manufacturers, was on a weak note overall, despite a sign of recovery in gases for automobiles and construction equipment. In this environment, the industrial gas business as a whole remained strong due to steady progress in measures against cost increase, including the revision of the prices of industrial gases that began to be implemented in the previous fiscal year.
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<Energy solutions>
Revenue in this segment was ¥13,821 million (92.5% that of the corresponding period of the previous year), and operating profit was ¥665 million (71.6%).
In the energy business, business reorganization was conducted in Hokkaido as the main business area, with a focus on integration of wholesale and retail functions, in an attempt to improve profitability. In addition, sales volume of industrial LP gas increased as a result of aggressive fuel conversion carried out amid growing demand for low-carbon and decarbonized products. At the same time, orders received for LNG tank trucks and small LNG satellite facilities remained steady. However, unit selling price for LP gas dropped in tandem with import prices, causing revenue to decrease and also leading profits to be affected by inventory evaluation.
In the green innovation business, the Group implemented various demonstrations of the small CO2 collection device, ReCO2 STATION, and liquefied biomethane usable as an alternative fuel for LNG and took other initiatives to build a business model for the collection and use of CO2 and new energy, aiming to create a business which will help build a decarbonized society.
<Health & Safety>
Revenue in this segment was ¥52,120 million (97.1% of the level in the same period of the previous fiscal year), and operating profit was ¥2,401million (86.8%).
The business as a whole was affected by a year-on-year decline in contracts for leasing home oxygen concentrators and in the demand for hygiene materials and other infection control products, which was a result of the reclassification of COVID-19 as a class 5 infectious disease. This more than offset the strong showing of the safety services business, which includes gas fire extinguishing systems for data centers.
There was a year-on-year decline in the performance of the medical products business due to a decrease in sales of dental materials, which were strong in the previous fiscal year, in addition to a decline in contracts for leasing oxygen concentrators to local governments.
The safety services business remained steady due to the growth of demand for products for data centers in the fire extinguishing system sector, in addition to an increase in hospital renovation projects.
In the medical service business, the Group endeavored to acquire new customers by proposing measures to improve the efficiency of hospital management, but the business's performance was affected by the termination of a contract with a large hospital.
The consumer health business benefitted from the growth of contract manufacturing of sunscreen sprays and cosmetics in addition to an increase in sales of cosmetic needles and dental needles mainly in overseas markets, reflecting the recovery of demand following the COVID-19 pandemic. However, the business was affected by a decline in demand for hygiene materials and other infection control products and a decline in their prices.
<Agriculture & Foods>
Revenue in this segment was ¥38,297 million (103.3% that of the corresponding period of the previous year), and operating profit was ¥1,354 million (100.9%).
In the business as a whole, both revenue and profit increased due to steady performance in the contract manufacturing of plastic bottle beverages, more than offsetting the impact of the rising cost of eggs and other raw materials in the sweets and delicatessen sectors.
In the foods business, sales remained strong due to the development of new sales channels, with a focus on products for consumers, in addition to products for professional use such as at hotels and restaurants. However, profit decreased year on year because the increased raw materials costs were not fully absorbed. The sweets sector was affected by a supply shortage of eggs, which caused the discontinuation of sales of some products and other effects.
The natural food business that conducts the contract manufacturing of vegetable- and fruit-based drinks remained steady due to an increase in contracts for plastic bottle beverages for convenience stores.
The performance of the agriculture business remained unchanged year on year, despite an increase in the number of customers visiting stores operated in the area of direct sales of agricultural products and the fruit and vegetable retail
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AIR WATER Inc. published this content on 09 August 2023 and is solely responsible for the information contained therein. Distributed by Public, unedited and unaltered, on 09 August 2023 01:54:08 UTC.