NICHIAS CORPORATION Consolidated Financial Results for the Second Quarter of the Fiscal Year
Ending March 31, 2022 (April 1, 2021 to September 30, 2021)
November 8, 2021 | ||||||||||||||||||||||||||||||
NICHIAS Corporation | ||||||||||||||||||||||||||||||
Company Name: | ||||||||||||||||||||||||||||||
Stock Exchange Listing: | Tokyo Stock Exchange (Code number 5393) | |||||||||||||||||||||||||||||
URL: | https://www.nichias.co.jp/nichias-E/ | |||||||||||||||||||||||||||||
Representative: | Toshiyuki Takei, President and Chief Executive Officer | |||||||||||||||||||||||||||||
Inquiries: | Kiminori Nakata, Representative Director and Senior Managing Executive Officer | |||||||||||||||||||||||||||||
Phone: | +81-3-4413-1111 | |||||||||||||||||||||||||||||
Scheduled date of filing of quarterly consolidated financial statements: November 11, 2021 | ||||||||||||||||||||||||||||||
Supplementary materials for financial results: | Available | |||||||||||||||||||||||||||||
Organization of financial results briefing: | Available (for institutional investors and | |||||||||||||||||||||||||||||
Scheduled date of commencement of dividend payment: | analysts) | |||||||||||||||||||||||||||||
December 1, 2021 | ||||||||||||||||||||||||||||||
(Fractional amounts of less than ¥1 million are discarded.) | ||||||||||||||||||||||||||||||
1. Consolidated financial results for the second quarter of the Fiscal Year 2021 | ||||||||||||||||||||||||||||||
(April 1, 2021 to September 30, 2021) | ||||||||||||||||||||||||||||||
(1) Operating Results (cumulative) | (Percentages represent year-on-yearchanges) | |||||||||||||||||||||||||||||
Net sales | Operating income | Ordinary income | Profit attributable to | |||||||||||||||||||||||||||
owners of the parent | ||||||||||||||||||||||||||||||
Millions of yen | % | Millions of yen | % | Millions of yen | % | Millions of yen | % | |||||||||||||||||||||||
FY2021 Q2 | 103,525 | 15.8 | 12,671 | 77.5 | 13,895 | 80.4 | 10,249 | 119.7 | ||||||||||||||||||||||
FY2020 Q2 | 89,370 | (11.5) | 7,137 | (28.4) | 7,700 | (23.3) | 4,666 | (33.7) | ||||||||||||||||||||||
Note: Comprehensive income | FY2021 Q2 ¥12,346 million---114.4%;FY2020 Q2¥5,759 million---(19.7)% | |||||||||||||||||||||||||||||
Basic earnings per share | Diluted earnings per share | |||||||||||||||||||||||||||||
Yen | Yen | |||||||||||||||||||||||||||||
FY2021 Q2 | 154.51 | － | ||||||||||||||||||||||||||||
FY2020 Q2 | 70.34 | |||||||||||||||||||||||||||||
－ | ||||||||||||||||||||||||||||||
(2) Consolidated Financial Position | ||||||||||||||||||||||||||||||
Total assets | Net assets | Equity ratio | ||||||||||||||||||||||||||||
Millions of yen | Millions of yen | % | ||||||||||||||||||||||||||||
As of September 30, 2021 | 230,330 | 146,560 | 63.2 | |||||||||||||||||||||||||||
As of March 31, 2021 | 219,602 | 136,450 | 61.7 | |||||||||||||||||||||||||||
(Reference) Shareholders' equity FY2021 Q2 ¥145,458 million; As of March 31, 2021 (FY2020) ¥135,429 million | ||||||||||||||||||||||||||||||
2. Dividends | ||||||||||||||||||||||||||||||
Annual Dividends | ||||||||||||||||||||||||||||||
End of 1st quarter | End of 1st half | End of 3rd | Year-end | Total | ||||||||||||||||||||||||||
quarter | ||||||||||||||||||||||||||||||
Yen | Yen | Yen | Yen | Yen | ||||||||||||||||||||||||||
FY2020 | － | 38.00 | － | 40.00 | 78.00 | |||||||||||||||||||||||||
FY2021 | － | 42.00 | ||||||||||||||||||||||||||||
FY2021 (Forecast) | － | 40.00 | 82.00 |
Note: Adjustments from the most recently released dividend forecast: None
3. Forecast of consolidated financial results for Fiscal Year 2021 (April 1, 2021 to March 31, 2022)
(Percentage figures represent changes from previous fiscal year) | |||||||||||
Net sales | Operating income | Ordinary income | Profit attributable to | Basic earnings | |||||||
owners of the parent | per share | ||||||||||
Millions of yen | % | Millions of yen | % | Millions of yen | % | Millions of yen | % | Yen | |||
Full year | 210,000 | 6.9 | 25,000 | 27.4 | 26,000 | 22.2 | 18,000 | 68.0 | 271.36 | ||
Note: Adjustments from the most recently released consolidated results forecast: None
*Notes
- Changes in significant subsidiaries during the consolidated quarter under review: None
- Application of specific accounting methods in the preparation of quarterly consolidated financial statements: None
- Changes in accounting policies, changes in accounting estimates, and restatements
1) | Changes in accounting policies due to revision of accounting standards: | Yes |
2) | Changes other than those in 1) above: | None |
3) | Changes in accounting estimates: | None |
4) | Restatements: | None |
(4) Number of shares outstanding (ordinary shares)
- Number of shares issued at the end of the period (including treasury stock)
FY2021 Q2 (As of September 30, 2021) | 67,811,917 shares | |
FY2020 | (As of March 31, 2021) | 67,811,917 shares |
- Number of shares of treasury stock at the end of the period
FY2021 Q2 (As of September 30, 2021) | 1,478,812 shares | |
FY2020 | (As of March 31, 2021) | 1,477,947 shares |
- Average number of shares outstanding during the period
FY2021 Q2 (As of September 30, 2021) | 66,333,551 shares |
FY2020 Q2 (As of September 30, 2020) | 66,335,006 shares |
*The consolidated financial results for the second quarter of the fiscal year ending March 31, 2022 are not subject to quarterly review by a certified public accountant or auditor.
*Information concerning proper use of financial forecasts and other special notes Information concerning forward-looking statements
Forward-looking statements concerning financial forecasts contained in these materials are based on information available to the Company when the forecasts were made and certain assumptions judged to be reasonable. However, the Company makes no guarantee that these forecasts will be achieved. Actual results may differ significantly from the forecasts due to a variety of factors. For items related to our earnings forecasts, etc., including underpinning assumptions and factors that could impact each item, please refer to "(3) Explanation of information related to future prospects including consolidated results forecasts" on page 3 in section "1. Qualitative information on the quarter under review."
Disclaimer: This is a Japanese-English translation of the summary of financial statements of the Company produced for your convenience. Since no auditor audited this report, officially only the Japanese version is assumed to be the summary of financial statements of the Company. This summary does not constitute any guarantee and the Company will not compensate any losses and/or damage stemming from actions taken based on these statements. In the case that there is any discrepancy between the Japanese and English versions, the Japanese version is assumed to be correct.
Attachment index | ||
1. Qualitative information on the quarter under review........................................................................................................................ | 2 | |
(1) | Explanation of operating results ................................................................................................................................................................... | 2 |
(2) | Explanation of financial position................................................................................................................................................................... | 2 |
(3) | Explanation of information related to future prospects including consolidated results forecasts................................... | 3 |
2. Consolidated financial statements and related notes......................................................................................................................... | 4 | |
(1) | Quarterly consolidated balance sheets ...................................................................................................................................................... | 4 |
(2) | Quarterly consolidated statements of income and consolidated statements of comprehensive income .................... | 6 |
Quarterly consolidated statements of income .............................................................................................................................................. | 6 | |
Quarterly consolidated statement of comprehensive income................................................................................................................ | 7 | |
(3) | Quarterly consolidated statements of cash flows.................................................................................................................................. | 8 |
(4) | Notes regarding quarterly consolidated financial statements ......................................................................................................... | 9 |
(Notes regarding going concern assumption) .......................................................................................................................................... | 9 | |
(Notes regarding significant changes in shareholders' equity [if any]) .......................................................................................... | 9 | |
(Changes in accounting policies) .................................................................................................................................................................... | 9 | |
(Segment information) ..................................................................................................................................................................................... | 10 | |
3. Supplementary materials................................................................................................................................................................................. | 11 |
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1. Qualitative information on the quarter under review
(1) Explanation of operating results
During the second quarter of the consolidated fiscal year, the economy remained in severe conditions due to the COVID-19 pandemic. In Japan, the manufacturing industry saw a recovery in capital investment and production, and exports continued to increase moderately. Overseas, emerging market economies have been hurt by the renewed spread of COVID-19, but the US economy is improving steadily and China has seen a moderate recovery.
In these conditions, the Group's net sales rose 15.8% year on year to ¥103,525 million, due to high demand for products for semiconductor production equipment and a recovery in demand for auto parts to pre-COVID-19 levels.
In terms of profits, operating income rose 77.5% year on year to ¥12,671 million, ordinary income rose 80.4% year on year to ¥13,895 million, and profit attributable to owners of the parent rose 119.7% year on year to ¥10,249 million.
The Company adopted the Accounting Standard for Revenue Recognition (Accounting Standards Board of Japan Statement No. 29, March 31, 2020; hereinafter the Accounting Standard for Revenue Recognition), etc. from the start of the first quarter of the current consolidated fiscal year. As a result, compared with before the application of the standard, net sales in the second quarter of the fiscal year rose ¥1,230 million and operating income and ordinary income both increased by ¥82 million. For details, refer to "2. Consolidated financial statements and related notes (4) Notes regarding quarterly consolidated financial statements (Changes in accounting policies) and (Segment information) Segment information 2. Matters related to changes in reporting segments, etc."
Net sales by segment for the second quarter of the fiscal year are as follows:
Sales in the Energy and Industrial Plants Divisionfell 0.8% year on year to ¥28,030 million. This was due to a decline in the number of periodic repair projects for petroleum refining and petrochemical companies, despite a boost to sales from changes in the method of revenue recognition related to construction contracts due to application of the Accounting Standard for Revenue Recognition, etc.
Sales in the Industrial Products Divisionincreased 9.4% year on year to ¥22,801 million owing to solid demand for fluororesin products and inorganic thermal insulation products driven by a recovery in the electronic components and semiconductor-related markets, and high demand for environmental products in the Chinese market.
Sales in the Advanced Products Divisionrose 49.3% year on year to ¥16,826 million, owing to strong demand for semiconductors.
Sales in the Autoparts Divisionrose 37.4% year on year to ¥22,160 million, as demand for automobiles has been recovering in Japan and overseas since the third quarter of the previous fiscal year following a decline in the second quarter of fiscal 2020 with the spread of COVID-19.
Sales in the Building Materials Divisionrose 6.6% year on year to ¥13,706 million, mainly reflecting changes in the method of revenue recognition for construction contracts due to the application of the Accounting Standard for Revenue Recognition, etc., even though the pandemic resulted in the delay and postponement of construction projects as well as a decline in demand.
(2) Explanation of financial position
1) Assets, liabilities, and net assets
Total assets at the end of the second quarter of the fiscal year ending March 31, 2022, were ¥230,330 million, up ¥10,727 million compared with the end of the previous fiscal year. This reflected a decline of ¥4,450 million in costs on uncompleted construction contracts and increases of ¥12,450 million in cash and deposits, ¥1,351 million in raw materials and supplies, ¥695 million in merchandise and finished goods, and ¥473 million in work in process.
Liabilities at the end of the second quarter of the fiscal year ending March 31, 2022, were ¥83,769 million, up ¥617 million compared with the end of the previous fiscal year. This was largely because provision for bonuses rose ¥884 million and electronically recorded monetary obligations rose ¥839 million, while notes and accounts payable - trade fell ¥1,079 million.
Net assets at the end of the second quarter of the fiscal year ending March 31, 2022, were ¥146,560 million, up ¥10,109 million compared with the end of the previous fiscal year. This was largely a result of increases in retained earnings of ¥8,024 million and in valuation difference on available-for-sale securities of ¥1,148 million.
2
2) Cash flows
Cash and cash equivalents at the end of the second quarter of the fiscal year ending March 31, 2022 (hereinafter, "cash"), increased by ¥12,182 million compared with the end of the previous fiscal year to ¥51,772 million. Cash flows and factors affecting cash flows are as follows:
(Net cash provided by [used in] operating activities)
Net cash provided by operating activities was ¥15,475 million (compared with receipts of ¥8,061 million in the same period of the previous fiscal year).
This was primarily because although cash decreased due to ¥3,741 million in income taxes paid and a ¥2,098 million increase in inventories, cash increased due to ¥14,022 million in income before income taxes, a ¥5,376 million decrease in trade receivables, and ¥3,083 million in depreciation & amortization.
(Net cash provided by [used in] investing activities)
Net cash used in investing activities was ¥846 million (compared with expenditures of ¥3,188 million in the same period of the previous fiscal year).
This mainly reflected an increase in cash due to ¥1,547 million in proceeds from liquidation of affiliated companies and a decrease in cash due to ¥1,918 million in expenditures for the acquisition of property, plant and equipment.
(Net cash provided by [used in] financing activities)
Net cash used in financing activities was ¥2,804 million (compared with expenditures of ¥2,715 million in the same period of the previous fiscal year).
This was mainly because of a decrease in cash due to ¥2,650 million in cash dividends paid.
(3) Explanation of information related to future prospects including consolidated results forecasts
There is no amendment to our consolidated earnings forecasts for the fiscal year ending March 31, 2022, disclosed in the "Notice of Revisions to Earnings Forecasts" on October 18, 2021.
The Company prepared these earnings forecasts based on the information available as of the day that these materials were released, and actual results could differ from forecasts depending on a variety of factors.
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Nichias Corporation published this content on 15 November 2021 and is solely responsible for the information contained therein. Distributed by Public, unedited and unaltered, on 15 November 2021 07:59:05 UTC.
