Date: October 26, 2023

Preliminary

Summary of Consolidated Financial Statements

for the Second Quarter Ended September 30, 2023 (IFRS Basis)

Listed company name:

Nitto Denko Corporation

Stock exchange listing:

Tokyo Stock Exchange, Prime Market

Code Number:

6988

URL

https://www.nitto.com/

Company Representative:

Hideo Takasaki, President

Contact Person:

Yasuhiro Iseyama, Senior Executive Vice President, Director of Corporate Accounting & Finance Division

Phone:

+81-6-7632-2101

Filing date of quarterly financial statements: Estimated starting date of dividend paying: Preparation of supplementary explanatory materials: Holding of quarterly earnings release conference:

October 30, 2023

Nobember 24, 2023 Yes

Yes (for investment analysts and institutional investors)

(All monetary values noted herein are rounded down to the nearest million yen)

1. Consolidated financial results for the six months ended September 30, 2023

(1) Operating results

(% of change from same period in the previous year)

Net profit

Total

Operating

Profit before

attributable to

Revenue

Net profit

comprehensive

profit

income taxes

owners of the

income

parent company

Millions

%

Millions

%

Millions

%

Millions

%

Millions

%

Millions

%

of yen

of yen

of yen

of yen

of yen

of yen

For the six months ended

449,344

(7.3)

64,472

(30.1)

64,240

(30.2)

44,264

(30.2)

44,216

(30.3)

90,958

(17.6)

September 30, 2023

For the six months ended

484,909

13.8

92,279

26.7

92,035

26.7

63,442

21.6

63,398

21.6

110,350

98.5

September 30, 2022

Basic earnings per share

Diluted earnings per share

Yen

Yen

For the six months ended

308.88

308.77

September 30, 2023

For the six months ended

428.29

428.12

September 30, 2022

(2) Financial position

Equity attributable to owners

Ratio of equity attributable to

Total assets

Total equity

owners of the parent company

of the parent company

to total assets

Millions of yen

Millions of yen

Millions of yen

%

As of September 30, 2023

1,205,290

944,579

943,572

78.3

As of March 31, 2023

1,153,647

903,194

902,211

78.2

2. Dividends

Dividends per share

1Q

2Q

3Q

Year-end

Annual

Yen

Yen

Yen

Yen

Yen

March, 2023

-

120.00

-

120.00

240.00

March, 2024

-

130.00

March, 2024 (Forecast)

-

130.00

260.00

(Note) Revision of dividend forecast in the current quarter: No

- 1 -

3. Forecast for the fiscal year ending March 31, 2024

(% of change from same period in the previous year)

Net profit

Revenue

Operating profit

Profit before

Net profit

attributable to

Basic earnings

income taxes

owners of the

per share

parent company

Millions

%

Millions

%

Millions

%

Millions

%

Millions

%

Yen

of yen

of yen

of yen

of yen

of yen

Annual

920,000

(1.0)

140,000

(4.9)

140,000

(4.7)

100,000

(8.5)

100,000

(8.4)

698.57

(Note) Revision of consolidated forecast in the current quarter: Yes

  • Others
    1. Changes in significant subsidiaries during the second quarter ended September 30, 2023: No
    2. Changes in accounting policies applied and changes in accounting estimates
      1. Changes in accounting policies required by IFRS: No
      2. Changes in accounting policies other than the above: No
      3. Changes in accounting estimates: No
    4. Number of shares outstanding (Common stock)
      1. Number of shares outstanding at the end of the period (including treasury shares)

As of September 30, 2023:

143,551,735

As of March 31, 2023: 149,758,428

2.

Number of treasury shares at the end of the period

As of September 30, 2023:

1,000,129

As of March 31, 2023: 3,840,554

3.

Average number of outstanding shares during the period (cumulative from the beginning of the period)

April-September 2023: 143,149,916

April-September 2022: 148,026,050

  • These quarterly financial results are not subject to quarterly review procedures by Certified Public Accountants or audit firm.
  • Explanations for adequate utilization of the forecast and other special matters

The forward-looking statements shown in this report, including the forecast, are prepared based on information available to the Company and on certain assumptions deemed reasonable as of the issuing date of the report. Consequently, the statements herein do not constitute promises regarding actual results by the Company. Actual results may differ materially from forecasted figures due to various unknown factors.

- 2 -

(Reference) Segment Information (six months)

(Millions of yen)

For the six months ended

For the six months ended

September 30, 2022

September 30, 2023

Revenue

Revenue

Y-o-Y (%)

Industrial Tape

Revenue

172,545

171,499

99.4

Operating profit

16,611

17,622

106.1

Information Fine Materials

196,513

182,034

92.6

Optronics

Circuit Materials

61,879

47,917

77.4

Total

258,393

229,952

89.0

Operating profit

71,485

57,642

80.6

Life Science

30,072

19,286

64.1

Membrane

16,907

16,314

96.5

Human Life

Personal Care Materials

16,743

25,534

152.5

Total

63,722

61,135

95.9

Operating profit

5,234

(5,427)

-

Others

Revenue

3

6

200.5

Operating profit

(1,782)

(2,906)

-

Adjustment

Revenue

(9,755)

(13,249)

-

Operating profit

730

(2,458)

-

Total

Revenue

484,909

449,344

92.7

Operating profit

92,279

64,472

69.9

(Note) Some changes have been made to reporting segments from FY2023. The name of Flexible Printed Circuits has been changed to Circuit Materials and the plastic optical cable business has been transferred from Others to Circuit Materials of Optronics. In addition, Certain related businesses have been transferred from Personal Care Materials of Human Life to Industrial Tape and Certain business included in Adjustment has been transferred to Others. Such changes have also been reflected in the figures for the first half ended September 30, 2022.

- 3 -

(Reference) Segment Information (three months)

(Millions of yen)

For the three months ended

For the three months ended

September 30, 2022

September 30, 2023

Revenue

Revenue

Y-o-Y (%)

Industrial Tape

Revenue

91,100

90,806

99.7

Operating profit

8,283

10,164

122.7

Information Fine Materials

111,709

95,389

85.4

Optronics

Circuit Materials

35,251

30,199

85.7

Total

146,960

125,588

85.5

Operating profit

46,351

37,610

81.1

Life Science

12,127

10,145

83.7

Membrane

9,067

8,019

88.5

Human Life

Personal Care Materials

14,548

13,691

94.1

Total

35,743

31,856

89.1

Operating profit

190

(2,490)

-

Others

Revenue

0

2

229.1

Operating profit

(914)

(1,621)

-

Adjustment

Revenue

(5,264)

(7,365)

-

Operating profit

(152)

(1,601)

-

Total

Revenue

268,540

240,888

89.7

Operating profit

53,758

42,061

78.2

(Note) Some changes have been made to reporting segments from FY2023. The name of Flexible Printed Circuits has been changed to Circuit Materials and the plastic optical cable business has been transferred from Others to Circuit Materials of Optronics. In addition, Certain related businesses have been transferred from Personal Care Materials of Human Life to Industrial Tape and Certain business included in Adjustment has been transferred to Others. Such changes have also been reflected in the figures for the first half ended September 30, 2022.

- 4 -

(Reference) Segment Information (annual forecast)

(Millions of yen)

Forecast for the fiscal year ending

March 31, 2024

Revenue

Y-o-Y (%)

Industrial Tape

Revenue

347,500

101.3

Operating profit

38,500

141.5

Information Fine Materials

367,500

99.9

Optronics

Circuit Materials

100,000

87.3

Total

467,500

96.9

Operating profit

120,000

94.2

Life Science

44,000

81.8

Membrane

33,000

99.2

Human Life

Personal Care Materials

54,500

131.0

Total

131,500

102.2

Operating profit

(5,000)

-

Others

Revenue

-

-

Operating profit

(5,500)

-

Adjustment

Revenue

(26,500)

-

Operating profit

(8,000)

-

Total

Revenue

920,000

99.0

Operating profit

140,000

95.1

- 5 -

2. Quarterly Consolidated Financial Statements

(1) Quarterly consolidated statement of financial position

(Millions of yen)

As of March 31, 2023

As of September 30, 2023

Assets

Current assets

Cash and cash equivalents

329,966

307,481

Trade and other receivables

178,388

222,446

Inventories

141,101

139,240

Other financial assets

2,141

1,908

Other current assets

20,358

26,808

Subtotal

671,956

697,884

Assets held for sale

5,232

-

Total current assets

677,189

697,884

Noncurrent assets

Property, plant and equipment

333,103

356,135

Right-of-use assets

12,959

14,662

Goodwill

58,822

64,215

Intangible assets

21,469

20,920

Investments accounted for using equity method

2,140

2,163

Financial assets

8,860

9,968

Deferred tax assets

23,420

23,882

Other noncurrent assets

15,682

15,456

Total noncurrent assets

476,457

507,405

Total assets

1,153,647

1,205,290

- 6 -

(Millions of yen)

As of March 31, 2023

As of September 30, 2023

Liabilities and Equity

Liabilities

Current liabilities

Trade and other payables

91,834

100,404

Borrowings

272

263

Income tax payables

18,488

18,394

Other financial liabilities

22,162

24,649

Other current liabilities

54,053

52,620

Subtotal

186,811

196,333

Liabilities directly associated with assets

1,436

-

held for sale

Total current liabilities

188,248

196,333

Noncurrent liabilities

Other financial liabilities

15,729

17,493

Defined benefit liabilities

40,015

40,696

Deferred tax liabilities

4,173

4,015

Other noncurrent liabilities

2,286

2,171

Total noncurrent liabilities

62,204

64,376

Total liabilities

250,452

260,710

Equity

Equity attributable to owners of the parent company

Share capital

26,783

26,783

Capital surplus

50,047

49,924

Retained earnings

786,269

761,797

Treasury shares

(27,631)

(8,264)

Other components of equity

66,741

113,331

Total equity attributable to owners of the parent

902,211

943,572

company

Noncontrolling interests

983

1,006

Total equity

903,194

944,579

Total liabilities and equity

1,153,647

1,205,290

- 7 -

  1. Quarterly consolidated statement of profit or loss and Quarterly consolidated statement of comprehensive income (Quarterly consolidated statement of profit or loss)

(Millions of yen)

For the six months ended

For the six months ended

September 30, 2022

September 30, 2023

Revenue

484,909

449,344

Cost of sales

298,944

291,972

Gross profit

185,964

157,371

Selling, general and administrative expenses

71,380

71,731

Research and development expenses

20,398

21,870

Other income

2,693

6,376

Other expenses

4,599

5,673

Operating profit

92,279

64,472

Finance income

1,019

1,029

Finance expenses

1,293

1,268

Share of profit of investments accounted for

29

7

using the equity method

Profit before income taxes

92,035

64,240

Income tax expenses

28,592

19,976

Net profit

63,442

44,264

Net profit attributable to:

Owners of the parent company

63,398

44,216

Noncontrolling interests

43

48

Total

63,442

44,264

Earnings per share attributable to owners of the parent company

Basic earnings per share (Yen)

428.29

308.88

Diluted earnings per share (Yen)

428.12

308.77

- 8 -

(Quarterly consolidated statement of comprehensive income)

(Millions of yen)

For the six months ended

For the six months ended

September 30, 2022

September 30, 2023

Net profit

63,442

44,264

Other comprehensive income

Items that will not be reclassified to profit or loss

Net changes on financial assets measured at fair value

(358)

16

through other comprehensive income

Items that may be reclassified to profit or loss

Exchange differences on translation of foreign

45,053

46,607

operations

Net changes in fair value of cash flow hedges

2,209

1

Share of other comprehensive income of investments

2

68

accounted for using equity method

Total other comprehensive income

46,907

46,693

Total comprehensive income

110,350

90,958

Total comprehensive income attributable to:

Owners of the parent company

110,303

90,907

Noncontrolling interests

46

51

Total

110,350

90,958

- 9 -

  1. Quarterly consolidated statement of changes in equity For the six months ended September 30, 2022

(Millions of yen)

Equity attributable to owners of the parent company

Non-

Share

Capital

Retained

Treasury

Other

components

Total

controlling

Total equity

capital

surplus

earnings

shares

of equity

interests

Balance as of April 1,

26,783

49,992

705,910

(9,771)

48,276

821,192

913

822,105

2022

Net profit

-

-

63,398

-

-

63,398

43

63,442

Other comprehensive

-

-

-

-

46,904

46,904

3

46,907

income

Total comprehensive

-

-

63,398

-

46,904

110,303

46

110,350

income

Share based

remuneration

-

-

-

-

(110)

(110)

-

(110)

transactions

Dividends

-

-

(16,281)

-

-

(16,281)

(29)

(16,311)

Changes in treasury

-

71

-

138

-

210

-

210

shares

Transfer from other

components of equity

-

-

-

-

(4,206)

(4,206)

-

(4,206)

to non-financial

assets

Total transactions with

-

71

(16,281)

138

(4,317)

(20,388)

(29)

(20,418)

owners

Balance as of

26,783

50,064

753,027

(9,632)

90,864

911,107

930

912,038

September 30, 2022

For the six months ended September 30, 2023

(Millions of yen)

Equity attributable to owners of the parent company

Non-

Share

Capital

Retained

Treasury

Other

components

Total

controlling

Total equity

capital

surplus

earnings

shares

of equity

interests

Balance as of April 1,

26,783

50,047

786,269

(27,631)

66,741

902,211

983

903,194

2023

Net profit

-

-

44,216

-

-

44,216

48

44,264

Other comprehensive

-

-

-

-

46,690

46,690

3

46,693

income

Total comprehensive

-

-

44,216

-

46,690

90,907

51

90,958

income

Share based

remuneration

-

(47)

-

-

(100)

(148)

-

(148)

transactions

Dividends

-

-

(17,510)

-

-

(17,510)

(28)

(17,538)

Changes in treasury

-

(51,254)

-

19,366

-

(31,887)

-

(31,887)

shares

Transfer from

retained earnings to

-

51,178

(51,178)

-

-

-

-

-

capital surplus

Total transactions with

-

(122)

(68,688)

19,366

(100)

(49,545)

(28)

(49,573)

owners

Balance as of

26,783

49,924

761,797

(8,264)

113,331

943,572

1,006

944,579

September 30, 2023

- 10 -

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Nitto Denko Corporation published this content on 26 October 2023 and is solely responsible for the information contained therein. Distributed by Public, unedited and unaltered, on 26 October 2023 07:12:07 UTC.