IWATANI CORPORATION FY2023 1st Half Financial Results
(Results for the Six Months Ended September 30, 2023)
(Forward-Looking Statements)
This material contains forward-looking statements based on expectations and are not guarantees or assurances of future performance. Accordingly, please be fully aware that results may differ materially from those expectations.
Copyright © Iwatani Corporation. All rights reserved.
November 17, 2023 Iwatani Corporation
[Securities code 8088]
Contents
-
FY2023 1st Half Overview -Highlights
-Consolidated Operating Results (Analysis of Net Sales)
-Consolidated Operating Results (Analysis of Operating Profit) -Consolidated Operating Results (Segment Analysis) -Operating Profit Analysis of Each Segment
-Balance Sheet (Consolidated) -Statement of Cash Flows - FY2023 Forecasts
-Forecasts for the year ending March 31, 2024 -Forecasts of Each Segment
-Returns to Shareholders
3. Progress of Medium-Term Management Plan "PLAN27"
-Overview
-Progress of Priority Measures
Copyright © Iwatani Corporation. All rights reserved. | 1 |
FY2023 1st Half Overview
Copyright © Iwatani Corporation. All rights reserved. | 2 |
Highlights
Decrease in net sales. Despite the negative impact of LPG import price fluctuation, strong sales of products for industrial use contributed to increase in operating profit which marked record high.
Summary of Financial Results for the 1st Half of FY2023
- Decrease in net sales due to lower LPG import prices, decrease in sales volumes of LPG and decline in sales of rechargeable battery materials.
- Increase in operating profit due to strong sales of products for industrial use, despite the negative impact of LPG import price fluctuation compared to the previous year.
- Full-yearfinancial forecasts: no change
■ Operating profit quarterly trends (100 million yen)
Net sales
Operating profit
Ordinary profit
Profit attributable to
owners of parent
394.2 billion yen | YoY (19.0) billion yen | (4.6%) | |
14.5 billion yen | YoY +0.2 | billion yen | +1.9% |
18.1 billion yen | YoY (0.1) | billion yen | (0.7%) |
12.0 billion yen | YoY (0.5) | billion yen | (4.3%) |
Copyright © Iwatani Corporation. All rights reserved.
165 | ||
88 | 91 | 85 |
54 | 60 | |
1Q | 2Q | 3Q | 4Q | 1Q | 2Q | 3Q | 4Q |
FY2022 | FY2023 |
*The figures for the 1Q, 2Q, 3Q of FY2022 reflect the finalization of the | 3 |
provisional accounting treatment for a business combination. | |
Consolidated Operating Results (Analysis of Net Sales)
(100 million yen)
FY23 1H | FY22 1H | YoY | FY23 | |
Results | Results | (A)-(B) | Progress | |
Forecasts | ||||
(A) | (B) * | (A)/(B) | ||
Net sales | 3,942 | 4,132 | (190) | 9,070 | 43.5% | |
(4.6%) | ||||||
+27 | - | - | ||||
Gross profit | 1,009 | 981 | ||||
+2.8% | ||||||
Operating profit | 145 | 143 | +2 | 450 | 32.4% | |
+1.9% | ||||||
Operating profit | +59 | |||||
excluding impact | 197 | 137 | 450 | 43.8% | ||
of LPG import | +43.1% | |||||
price fluctuation | ||||||
Non-operating | 35 | 39 | (3) | - | - | |
income/expenses | (9.8%) | |||||
Ordinary profit | 181 | 183 | (1) | 503 | 36.2% | |
(0.7%) | ||||||
Profit attributable | 120 | 126 | (5) | 335 | 36.0% | |
to owners of parent | (4.3%) | |||||
- The figures for the 1st half of FY2022 reflect the finalization of the provisional accounting treatment for a business combination.
Decrease factors
■ lower LPG import prices and decrease in sales volume due to higher temperature
■ decrease in sales of rechargeable battery materials caused by inventory adjustments at sales destinations
■ strong sales of products for industrial use
■ Net sales
Integrated | ||||
4,132 Energy | 189 | Materials | Others | 3,942 |
(253) | Industrial | (124) | (1) | |
Gases & |
Machinery
FY22 1H | FY23 1H |
Copyright © Iwatani Corporation. All rights reserved. | 4 |
Consolidated Operating Results (Analysis of Operating Profit)
(100 million yen)
FY23 1H | FY22 1H | YoY | FY23 | ||
Results | Results | (A)-(B) | Progress | ||
Forecasts | |||||
(A) | (B) * | (A)/(B) | |||
Net sales | 3,942 | 4,132 | (190) | 9,070 | 43.5% |
(4.6%) | |||||
Gross profit | 1,009 | 981 | +27 | - | - |
+2.8% | |||||
Operating profit | 145 | 143 | +2 | 450 | 32.4% |
+1.9% | |||||
Operating profit | +59 | ||||
excluding impact |
Increase factors
■ strong sales of products for industrial use contributed to increase in operating profit despite the negative impact of LPG import price fluctuation
■ decrease in non-operating income/expenses due to decline in share of profit of entities accounted for using equity method and increase in interest expense, which led to decrease in ordinary profit and profit attributable to owners of parent
■ Operating profit
143 | Integrated | 4 | 5 | 145 | |
Energy | |||||
44 | |||||
of LPG import | 197 | 137 | +43.1% | 450 | 43.8% |
price fluctuation | |||||
Non-operating | 35 | 39 | (3) | - | - |
income/expenses | (9.8%) | ||||
Ordinary profit | 181 | 183 | (1) | 503 | 36.2% |
(0.7%) | |||||
Profit attributable | 120 | 126 | (5) | 335 | 36.0% |
to owners of parent | (4.3%) | ||||
Materials
(51) Industrial
Gases &
Machinery
Others
- The figures for the 1st half of FY2022 reflect the finalization of the provisional accounting treatment for a business combination.
FY22 1H | FY23 1H |
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Consolidated Operating Results (Segment Analysis)
(100 million yen)
FY23 1H | FY22 1H * | YoY | YoY | FY23 | Progress | |
Results (A) | Results (B) | (A)-(B) | (A)/(B) | Forecasts | ||
Net sales | 3,942 | 4,132 | (190) | (4.6%) | 9,070 | 43.5% |
■ Integrated Energy | 1,433 | 1,686 | (253) | (15.0%) | 3,980 | 36.0% |
■ Industrial Gases & Machinery | 1,268 | 1,079 | +189 | +17.6% | 2,592 | 48.9% |
■ Materials | 1,085 | 1,210 | (124) | (10.3%) | 2,202 | 49.3% |
■ Others | 155 | 156 | (1) | (1.1%) | 296 | 52.4% |
Operating profit | 145 | 143 | +2 | +1.9% | 450 | 32.4% |
■ Integrated Energy | (11) | 39 | (51) | - | 180 | - |
■ Industrial Gases & Machinery | 108 | 64 | +44 | +69.5% | 175 | 62.0% |
■ Materials | 62 | 57 | +4 | +8.1% | 123 | 50.9% |
■ Others, Adjustments | (13) | (17) | +4 | - | (28) | - |
Operating profit excluding impact of LPG | 197 | 137 | +59 | +43.1% | 450 | 43.8% |
import price fluctuation | ||||||
Ordinary profit | 181 | 183 | (1) | (0.7%) | 503 | 36.2% |
Profit attributable to owners of parent | 120 | 126 | (5) | (4.3%) | 335 | 36.0% |
* The figures for the 1st half of FY2022 reflect the finalization of the provisional accounting treatment for a business combination.
Copyright © Iwatani Corporation. All rights reserved. | 6 |
Impact of LPG Import Price Fluctuations
Assumption | Wholesale price is linked to LPG import price. | ||
① | |||
LPG import price | linked to | Wholesale price |
Assumption Term from import to sale is
- approx. three months.
Approx. three months
-LPG from Middle East(CP) -LPG from the US(MB)
Gas-producing country | Iwatani's LPG | LPG users |
import & storage terminal |
Legally required reserves:40 days
LPG import
price
fluctuation
Produces short-term impact on performance(due to market fluctuations)
(If LPG import prices return to original levels, impact will be zero.)
Rising phase
Cheap inventory sold at high price | Falling phase | Expensive inventory sold at low price | ||
Cost basis | ||||
Earnings | Basis for selling price | |||
Earnings | ||||
booster effect | depressor effect |
Basis for selling price | Cost basis |
Copyright © Iwatani Corporation. All rights reserved. | 7 |
Operating Profit Analysis of Integrated Energy | |||||||||||||
Results | (100 million yen) | Main factors | |||||||||||
■ Impact of LPG import price fluctuation (5,670) | |||||||||||||
FY23 1H | FY22 1H | YoY | YoY | FY23 | Progress | ||||||||
Results (A) | Results (B) | (A)-(B) | (A)/(B) | Forecasts | (100 million | Full | |||||||
1Q | 2Q | 1H | 3Q | 4Q | |||||||||
yen) | year | ||||||||||||
1,433 | 1,686 | (253) (15.0%) | 3,980 | 36.0% | |||||||||
Net Sales | FY23 | (17.3) | (34.0) | (51.3) | - | - | - | ||||||
Operating | (11) | 39 | (51) | - | 180 | - | FY22 | +20.4 | (15.0) | +5.3 | (29.3) | (7.3) | (31.3) |
Profit | |||||||||||||
Changes | (37.7) | (19.0) | (56.7) | - | - | - | |||||||
Operating profit | |||||||||||||
39 | 33 | +5 | +16.7% | 180 | 21.9% | ■ Retail | +630 | ||||||
of LPG import | |||||||||||||
excluding impact | |||||||||||||
price fluctuation | -improvement in profitability of LPG | ||||||||||||
Analysis of Changes in Operating Profit | (million yen) | ■ Wholesale (120) | ||
3,910 | ||||
-decrease in sales due to cancellation of barter trading | ||||
■ Industrial (150) | ||||
-decrease in LPG sales for calorific adjustment | ||||
for city gas | ||||
630 | 200 | ■ Others +200 | ||
-strong sales of gas-related safety equipment | ||||
(5,670) | (120) | (150) | (1,199) | |
FY22 1H Impact of LPG Retail | Wholesale Industrial | Others | FY23 1H | ||
import price | Copyright © Iwatani Corporation. All rights reserved. | 8 | |||
fluctuation |
Operating Profit Analysis of Industrial Gases & Machinery
Results | (100 million yen) | ||||||||
FY23 1H | FY22 1H | YoY | YoY | FY23 | Progress | ||||
Results (A) | Results (B) | (A)-(B) | (A)/(B) | Forecasts | |||||
Net Sales | 1,268 | 1,079 | +189 | +17.6% | 2,592 | 48.9% | |||
Operating | |||||||||
108 | 64 | +44 | +69.5% | 175 | 62.0% | ||||
Profit | |||||||||
Analysis of Changes in Operating Profit | (million yen) | ||||||||
2,690 330 10,852
900 530
6,402
Main factors
■ Air separation gases +900
-decrease in sales volume mainly for the electronic component industry
-took an action toward growing production cost
■ Hydrogen Business +530
-decrease in sales volume mainly for the semiconductor industry
-took an action toward growing production cost
■ Specialty gases +2,690
-strong sales of carbon dioxide for the beverage and chemical industries
-stable procurement and supply of helium
■ Gas-related equipment +330
-improve in sales of power semiconductors-related equipment
-increase in sales of gas-related equipment
FY22 1H | Air separation | Hydrogen | Specialty | Gas-related | FY23 1H | |
gases | Business | gases | equipment | 9 | ||
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Iwatani Corporation published this content on 16 November 2023 and is solely responsible for the information contained therein. Distributed by Public, unedited and unaltered, on 17 November 2023 03:11:04 UTC.
