Consolidated Financial Results for Fiscal Year Ending March 31, 2023
(Based on IFRS)
May 11, 2023 | ||
Company name: Nippon Sanso Holdings Corporation | Stock exchange listing: Tokyo (Prime) | |
TSE Code: | 4091 URL: https://www.nipponsanso-hd.co.jp | |
Representative: Toshihiko Hamada, Representative Director, President CEO | ||
Inquiries: | Keita Kajiyama, General Manager, Investor Relations | |
Tel.: | +81-3-5788-8512 |
Scheduled date to be held Ordinary General Meeting of Shareholders: June 20, 2023
Scheduled date to file Securities Report: June 21, 2023
Scheduled date to commence dividend payments: June 21, 2023
Supplementary materials on quarterly financial results: Yes
Quarterly results explanatory meeting: Yes (For institutional investors and analysts)
(Amounts less than ¥1 million are omitted)
1. Financial results for FYE2023 (April 1, 2022 - March 31, 2023)
(1) Operating results
(Percentages indicate year-on-year change)
Core operating | Net income | Total | ||||||||||||||||||||||||
Revenue | Operating income | Net income | attributable to | comprehensive | ||||||||||||||||||||||
income | ||||||||||||||||||||||||||
owners of the parent | income | |||||||||||||||||||||||||
(¥ million) | % | (¥ million) | % | (¥ million) | % | (¥ million) | % | (¥ million) | % | (¥ million) | % | |||||||||||||||
FYE2023 | 1,186,683 | 24.0 | 123,124 | 19.9 | 119,524 | 18.1 | 75,965 | 14.0 | 73,080 | 14.0 | 118,859 | (10.2) | ||||||||||||||
FYE2022 | 957,169 | 17.0 | 102,710 | 17.7 | 101,183 | 13.9 | 66,637 | 17.2 | 64,103 | 16.1 | 132,363 | 11.3 | ||||||||||||||
(Reference) | Income before income taxes | |||||||||||||||||||||||||
FYE2023: ¥105,503 million [15.2%] | ||||||||||||||||||||||||||
FYE2022: ¥91,611 million [17.9%] | ||||||||||||||||||||||||||
Core operating income is calculated as operating income excluding certain gains and expenses attributable to | ||||||||||||||||||||||||||
non-recurring factors (non-recurring items). | ||||||||||||||||||||||||||
Return on equity | Income before | Core operating | ||||||||||||||||||||||||
Basic earnings | Diluted net income | attributable to | income taxes to | income to revenue | ||||||||||||||||||||||
per share (Yen) | per share (Yen) | owners of the | total assets ratio | ratio (%) | ||||||||||||||||||||||
parent (%) | (%) | |||||||||||||||||||||||||
FYE2023 | 168.85 | - | 10.8 | 5.1 | 10.4 | |||||||||||||||||||||
FYE2022 | 148.13 | - | 11.2 | 4.8 | 10.7 | |||||||||||||||||||||
(Reference) | Share of profit (loss) of associates and joint ventures accounted for using the equity method | |||||||||||||||||||||||||
FYE2023: ¥3,553 million | FYE2022: ¥3,512 million |
(2) Financial position
Total assets | Total equity | Equity attributable to | Equity attributable to | Equity attributable to | |
owners of the parent | owners of the parent | owners of the parent | |||
(¥ million) | (¥ million) | ||||
(¥ million) | ratio (%) | per share (yen) | |||
FYE2023 | 2,158,950 | 757,996 | 724,314 | 33.5 | 1,673.32 |
(March 31, 2023) | |||||
FYE2022 | 1,977,026 | 661,137 | 628,714 | 31.8 | 1,452.84 |
(March 31, 2022) | |||||
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(3) Consolidated cash flows
Cash flows from | Cash flows from | Cash flows from | Balance of cash and cash | |
operating activities | investing activities | financing activities | equivalents at term-end | |
(¥ million) | (¥ million) | (¥ million) | (¥ million) | |
FYE2023 | 187,959 | (98,073) | (54,430) | 132,217 |
FYE2022 | 148,760 | (70,858) | (77,946) | 93,697 |
2. Dividends
Annual Dividend | Total amount | Payout ratio | Ratio of dividends to | ||||||
End of 1st | End of 2nd | End of 3rd | Term | equity attributable to | |||||
Total | of dividends | (consolidated) | |||||||
quarter | quarter | quarter | end | owners of the parent | |||||
(¥ million) | (%) | ||||||||
(Yen) | (Yen) | (Yen) | (Yen) | (Yen) | (consolidated) (%) | ||||
FYE2022 | - | 16.00 | - | 18.00 | 34.00 | 14,718 | 23.0 | 2.6 | |
FYE2023 | - | 18.00 | - | 20.00 | 38.00 | 16,450 | 22.5 | 2.4 | |
FYE2024 | - | 20.00 | - | 20.00 | 40.00 | 24.6 | |||
(est.) | |||||||||
3. Forecasts for business operations for FYE2024 full term (April 1, 2023 - March 31, 2024)
(Percentages indicate year-on-year change)
Core operating | Net income | Basic | ||||||||||||
Revenue | Operating income | Net income | attributable to owners | earnings | ||||||||||
income | ||||||||||||||
of the parent | per share | |||||||||||||
(¥ million) | % | (¥ million) | % | (¥ million) | % | (¥ million) | % | (¥ million) | % | (Yen) | ||||
Full term | 1,160,000 | (2.2) | 127,500 | 3.6 | 127,500 | 6.7 | 73,500 | (3.2) | 70,500 | (3.5) | 162.87 | |||
(Reference) | Income before income taxes | |||||||||||||
FYE2024 full term: ¥102,000 million [(3.3%)] |
- Notes
-
Changes in significant subsidiaries during the period: None
(Transfer of specified subsidiaries resulting in changes in the scope of consolidation) - Changes in accounting policies, changes in financial forecasts
- Changes in accounting policies required by IFRS: None
- Changes in accounting policies other than 1.: None
- Changes in accounting estimates: None
- Number of outstanding shares (common shares)
1. Number of outstanding shares at the end of | As of | 433,092,837 | As of | 433,092,837 |
the period (including treasury stock) | Mar.31, 2023 | shares | Mar. 31, 2022 | shares |
2. Number of treasury stocks at the end of the | As of | 232,517 | As of | 344,870 |
period | Mar.31, 2023 | shares | Mar. 31, 2022 | shares |
3. Average number of shares during the period | FYE2023 | 432,812,252 | FYE2022 | 432,749,204 |
shares | shares | |||
- Financial reports are out of the scope of audit by certified public accountants or audit corporations.
- Explanation on the appropriate use of the forecasts of financial results and other comments
The forward-looking statements such as the forecasts of financial result stated in this document are based on the information currently available on the Company and certain assumptions that the Company judges as rational. The Company is under no obligation to guarantee their achievement. Actual financial results may vary significantly due to various reasons. For details on the assumptions of the forecasts and related matters, please see page 6, "(4) Future Outlook" in "1. Overview of Business Results."
The Company held a briefing of results for institutional investors and analysts on Friday, May 19, 2023.
Results materials handed out at that briefing were posted on the Company website in a prompt manner following the briefing.
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○ Contents
1. Overview of Business Results……………………………………………………………………………………………… | 4 |
(1) Overview of Business Results for the Fiscal Year Under Review……………………………………………………… | 4 |
(2) Overview of Financial Position for the Fiscal Year Under Review……………………………………………………… | 5 |
(3) Overview of Cash Flows for the Fiscal Year Under Review…………………………………………………………… | 6 |
(4) Future Outlook…………………………………………………………………………………………………………… | 6 |
(5) Basic Policy on Profit Distribution and Dividends for FYE2023 and FYE2024………………………………………… | 7 |
2. Basic Policy on Selection of Accounting Standards………………………………………………………………………… | 7 |
3. Consolidated Financial Statements and Main Notes………………………………………………………………………… | 8 |
(1) Consolidated Statement of Financial Position…………………………………………………………………………… | 8 |
(2) Consolidated Statement of Profit or Loss and Consolidated Statement of Comprehensive Income…………………… | 10 |
(3) Consolidated Statement of Changes in Equity…………………………………………………………………………… | 12 |
(4) Consolidated Statement of Cash Flows………………………………………………………………………………… | 14 |
(5) Notes to the Consolidated Financial Statements………………………………………………………………………… | 16 |
(Notes regarding going concern assumption)…………………………………………………………………………… | 16 |
(Segment information) ………………………………………………………………………………………………… | 16 |
(Per share information) ………………………………………………………………………………………………… | 19 |
(Significant subsequent events) ………………………………………………………………………………………… | 19 |
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1. Overview of Business Results
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Overview of Business Results for the Fiscal Year Under Review (General overview)
In the current year under review (from April 1, 2022 to March 31, 2023), the Nippon Sanso Holdings Group (NSHD Group) has faced a challenging and unpredictable business environment as a result of geopolitical issues in Ukraine, trade tensions between the US and China, unprecedented global energy costs, global inflation, and JPY depreciation. These items resulted in shipment volume of air separation gases (oxygen, nitrogen, argon), our main product, decreasing from the previous fiscal year. However, due to solid price management such as pass through, and various productivity initiatives, the NSHD Group achieved the following results for the fiscal year under review.
Revenue on a consolidated basis increased 24.0% year-on-year to ¥1,186,683 million, core operating income increased 19.9% to ¥123,124 million, operating income increased 18.1% to ¥119,524 million, and net income attributable to owners of the parent increased 14.0% to 73,080 million.
As for the impact of foreign exchange rates year-on-year, JPY depreciated against the USD from ¥113.04 to ¥136.00 (+¥22.96, or +20.3%), against the EUR from ¥131.11 to ¥141.62 (+¥10.51, or +8.0%), and against the AUD from ¥83.33 to ¥92.67 (+¥9.34, or +11.2%). As a result, overall revenue and core operating income were favorably impacted by approximately ¥79.6 billion and ¥9.9 billion respectively.
Core operating income is calculated by excluding from operating income certain gains and losses attributable to non-recurring factors such as losses arising from business withdrawal or downsizing.
(Overview of business performance by reportable segment)
A breakdown of business performance by reportable segment is as follows.
Effective from the fiscal year under review, the names of the reportable segments, which were previously "Gas Business in Japan," " Gas Business in the United States," " Gas Business in Europe," " Gas Business in Asia & Oceania," and "Thermos Business," were changed to "Japan," " United States," "Europe," " Asia & Oceania," and "Thermos" in that order, without impacting segment information.
Segment income represents core operating income.
(1) Japan
In the industrial gas-related business, revenue increased year-on-year mainly due to price revisions in response to cost and inflation increases, despite a decrease in shipment volume on both core product air separation gases and LP gas. In the electronics-related business, electronic material gases revenue increased strongly. In equipment and installation, both industrial gas-related and electronics-related revenue increased.
In addition, segment income was suppressed due to the time lag between manufacturing and distribution cost increases related to energy and general inflation, etc., and the time to recover the costs from customers.
As a result, in the Japan segment, revenue increased 13.0% year-on-year to ¥420,452 million and segment income increased 2.4% to ¥31,680 million.
(2) The United States
In the industrial gas-related business, shipment volume of air separation gases, a core product, were flat with prior year. However, revenue increased year-on-year mainly due to price revisions in conjunction with cost increases. Revenue from carbon dioxide gas was strong. In equipment and installation, industrial gas-related revenue increased significantly in hardgoods for welding and cutting related products, while electronics-related revenue turned slightly negative.
As a result, in the United States segment, revenue increased 34.8% year-on-year to ¥303,090 million and segment income increased 35.7% to ¥37,074 million. Revenue and segment income were favorably impacted by the weak JPY.
(3) Europe
Revenue increased from air separation gases, a core product, although shipment volumes declined due to lower customer requirements. This reflects a lag in price recovery efforts offsetting the significant surge in both energy and inflation. In addition, productivity initiatives and cost reduction efforts contributed to the positive performance of the business.
As a result, in the Europe segment, revenue increased 30.1% year-on-year to ¥272,888 million, and segment income increased 32.7% to ¥34,904 million. Revenue and segment income were favorably impacted by the weak JPY.
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(4) Asia & Oceania
In the industrial gas-related business, shipment volume in air separation gas, a core product, remained firm, and sales revenue increased. In LP gas, of which a large portion of sales are in the Australia region, revenue increased due to price increases linked to higher purchase costs and firm trends in shipped volume. In electronic-related business, revenue increased from robust sales for both gases and equipment.
As a result, in the Asia & Oceania segment, revenue increased 29.5% year-on-year to ¥159,965 million and segment income increased 20.5% to ¥15,465 million. Revenue and segment income were favorably impacted by the weak JPY.
(5) Thermos
In Japan, due to milder restrictions for outside activities from Spring 2022, both sales of portable mugs and sports bottles as well as sales for the kitchenware products such as frying pans were strong, contributing to considerable increase in revenue. Overseas, revenues are generally firm. Segment income decreased because of both rising raw material prices due to inflation and production costs increasing due to the weak JPY.
As a result, the Thermos segment revenue increased 12.4% year-on-year to ¥30,190 million, the segment income decreased 6.5% to ¥6,021 million.
(2) Overview of Financial Position for the Fiscal Year Under Review
Total assets amounted to ¥2,158,950 million as of March 31, 2023, an increase of ¥181,924 million from March 31, 2022. Foreign exchange rates resulted in an increase in total assets of approximately ¥106.1 billion. This mainly reflected foreign exchange rate changes, such as the JPY depreciation of ¥11.14 against the USD and the JPY depreciation of ¥9.02 against the EUR as of March 31, 2023, compared with the rates as of March 31, 2022.
In the fiscal year, trade receivables increased as a result of increased revenues. In addition, the Company proceeded with the planned repayment of interest-bearing debt with a focus on continued debt reduction and financial soundness. The Company will continue to communicate openly and appropriately with the bond market and financial institutions to improve our liquidity and funding capacity.
The hybrid financing raised in January 2019 and March 2019 totaled ¥250 billion, and the rating agencies (Japan Credit Rating Agency and Rating, Ltd. and Investment Information, Inc.) have approved 50% of this financing as "equity". The Company has referred to this as equity-type debt. As a financial soundness indicator that considers this hybrid financing, the Company has established the Adjusted net D/E ratio* as one of our key performance indicators and strives for the optimal composition of debt and equity. The Adjusted net D/E ratio achieved was 0.81 times, an improvement of 0.13 points from the end of the previous fiscal year.
(Note) Adjusted net D/E ratio: (Net interest-bearing debt - Equity-type debt) / (Equity attributable to owners of the parent + Equity-type debt)
[Assets]
Total current assets were ¥527,074 million, an increase of ¥104,581 million from March 31, 2022. The main changes were an increase in cash and cash equivalents and trade receivables, and the impact from JPY depreciation against major currencies such as the USD and the EUR. Total non-current assets were ¥1,631,875 million, an increase of ¥77,343 million from March 31, 2022, mainly reflecting increases in plant, property and equipment, goodwill and the impact from JPY depreciation against major currencies.
[Liabilities]
Total current liabilities were ¥425,157 million, an increase of ¥93,562 million from March 31, 2022. The main changes were an increase in bonds and borrowings, trade payables, and the impact from JPY depreciation against major currencies. Total non- current liabilities were ¥975,796 million, a decrease of ¥8,496 million from March 31, 2022. The main factors were a decrease in bonds and borrowings, an increase in deferred tax liabilities and the impact from JPY depreciation against major currencies.
[Equity]
Total equity amounted to ¥757,996 million, an increase of ¥96,859 million from March 31, 2022. The main factors were an increase due to the recording of profit attributable to owners of parent, a decrease due to retained earnings paid as dividends, and an increase in foreign exchange differences on translation of foreign operations.
The equity attributable to owners of the parent ratio stood at 33.5%, up 1.7 percentage points from the previous fiscal year-end.
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Nippon Sanso Holdings Corporation published this content on 01 June 2023 and is solely responsible for the information contained therein. Distributed by Public, unedited and unaltered, on 01 June 2023 09:51:06 UTC.