Press Release
Consolidated Financial Results for the Fiscal Year Ended March 31, 2024
Shin-Etsu Chemical Co., Ltd. | (JP GAAP) |
April 25, 2024 |
Listing Code: No. 4063 (URL: https://www.shinetsu.co.jp/en/)
Listing Stock Exchange: Tokyo and Nagoya
Representative: Yasuhiko Saitoh (Mr.) Representative Director/President
Personnel to contact: Toshiyuki Kasahara (Mr.) Corporate Officer, General Manager of Finance & Accounting Department
Tel: +81-3-6812-2350 | ||
Date of the annual shareholders' meeting | …… | June 27, 2024 |
Date of the filing of the consolidated financial statements | …… | June 20, 2024 |
Date of year-end dividend payment | …… | June 28, 2024 |
Preparation of supplemental explanatory materials: Yes ("Appendix" is attached.)
Holding of financial results meeting: Yes (for investment analysts and institutional investors)
Amounts are stated in millions of yen by discarding fractional amounts less than 1 million.
Percentage figures indicate increase (decrease) over previous fiscal year.
1. Consolidated Operating Performance for the Fiscal Year Ended March 31, 2024
(From April 1, 2023 to March 31, 2024)
(1) Results of consolidated operations | (Millions of yen) | ||||||||||||
Net sales | Operating income | Ordinary income | Net income attributable to | ||||||||||
owners of parent | |||||||||||||
April 2023 - March 2024 | 2,414,937 | (14.0%) | 701,038 | (29.8%) | 787,228 | (22.8%) | 520,140 | (26.6%) | |||||
April 2022 - March 2023 | 2,808,824 | 35.4% | 998,202 | 47.6% | 1,020,211 | 46.9% | 708,238 | 41.6% | |||||
(Note) Comprehensive income (Millions of yen) April 2023 - March 2024: | 746,804[(25.4%)] | ||||||||||||
April 2022 - March 2023: 1,000,984[49.8%] | |||||||||||||
Net income | Diluted net | Ratio of net income | Ratio of ordinary | Ratio of | |||||||||
per share | income per | to stockholders' | income to total | operating income | |||||||||
(yen) | share (yen) | equity | assets | to net sales | |||||||||
April 2023 - March 2024 | 259.41 | 259.13 | 12.8% | 15.9% | 29.0% | ||||||||
April 2022 - March 2023 | 347.84 | 347.61 | 19.7% | 23.2% | 35.5% | ||||||||
(Reference) Equity in earnings (losses) of affiliates (Millions of yen) April 2023 - March 2024: 8,607 | |||||||||||||
April 2022 - March 2023: 9,522 |
(Note) The Company enacted a five-for-one stock split of its common stock with an effective date of April 1, 2023. Based on "Accounting Standard for Earnings Per Share," per share information for the fiscal year ended March 31, 2023 represents the amount after the stock split.
(2) Consolidated financial position | (Millions of yen) | |||||||||||||||
Total assets | Net assets | Stockholders' | Net assets per share | |||||||||||||
equity ratio | (yen) | |||||||||||||||
March 31, 2024 | 5,147,974 | 4,424,073 | 82.7% | 2,133.17 | ||||||||||||
March 31, 2023 | 4,730,394 | 4,026,209 | 81.8% | 1,918.37 | ||||||||||||
(Reference) Stockholders' | equity (Millions of yen) | As of March 31, 2024: 4,257,922 | As of March 31, 2023: 3,870,394 | |||||||||||||
(3) Consolidated cash flows | (Millions of yen) | |||||||||||||||
Cash flows from | Cash flows from | Cash flows from | Cash and cash | |||||||||||||
equivalents at the end of | ||||||||||||||||
operating activities | investing activities | financing activities | ||||||||||||||
fiscal year | ||||||||||||||||
April 2023 - March 2024 | 755,183 | (1,099,208) | (369,466) | 590,135 | ||||||||||||
April 2022 - March 2023 | 788,013 | (186,488) | (423,559) | 1,247,344 | ||||||||||||
2. Cash Dividends | ||||||||||||||||
Cash dividends per share | Total annual cash Dividend | Ratio of | ||||||||||||||
for the fiscal year (yen) | ||||||||||||||||
dividend paid | payout | dividend payout | ||||||||||||||
1st | 2nd | 3rd | Year- | Fiscal | ||||||||||||
(Millions of yen) | ratio | to net assets | ||||||||||||||
quarter | quarter | quarter | end | year | ||||||||||||
April 2022 - March 2023 | - | 225.00 | - | 275.00 | 500.00 | 202,469 | 28.7% | 5.7% | ||||||||
April 2023 - March 2024 | - | 50.00 | - | 50.00 | 100.00 | 200,079 | 38.5% | 4.9% |
(Note) The Company enacted a five-for-one stock split of its common stock with an effective date of April 1, 2023. "Cash dividends per share" for April 2022 - March 2023 represents the actual amount prior to the stock split, and the annual dividend for April 2022 - March 2023 reflecting the stock split would be ¥100 per share.
3. Forecast of Consolidated Operating Performance for the First Quarter Ended June 30, 2024
(From April 1, 2024 to June 30, 2024) | (Millions of yen) | |||||
Net sales | Operating income | Ordinary income | Net income | Net income | ||
attributable to | per share | |||||
owners of parent | (yen) | |||||
1st quarter | 585,000 | (2.4%) | 165,000 (13.5%) | 190,000 (12.5%) | 120,000 (21.9%) | 60.10 |
(Note) As it is difficult to make a reasonable prediction of the performance in the fiscal year ending in March 2025 at this point, we only release the forecast for the first quarter. Please see [1. Results of Operations and Financial Overview (2) Business Prospects] on page 10 for further details.
Forward-looking statements such as the forecast of results of operations made in this document involves risks and uncertainties since they are based on management's assumptions and beliefs in light of the information currently available to it. The reader should be aware that actual results may be materially different from any future results expressed herein due to various factors. Material factors affecting the actual results may include overall economic conditions in which the businesses of our company and our group companies are involved, the relevant market trends and fluctuations in foreign exchange rates of the yen, in particular, the exchange rate between the U.S. dollar and the yen; provided, however, that such factors as may affect results of operations are not limited to those enumerated above.
(Notes)
(1) Changes in significant subsidiaries which affected the scope of consolidation during the current fiscal year: No
(2) Changes of accounting policies applied, changes in accounting estimates and retrospective restatement
Changes of accounting policies applied due to revisions of accounting standards: No
Changes of accounting policies other than the above: No
Changes in accounting estimates: No
Retrospective restatement: No
(3) Number of shares outstanding (common stock) | March 31, 2024 | March 31, 2023 |
Number of shares outstanding at the year end | 2,001,691,765 | 2,024,122,965 |
Number of shares of treasury stock at the year end | 5,637,568 | 6,576,200 |
Weighted-average number of shares | April 2023 - March 2024 | April 2022 - March 2023 |
2,005,085,165 | 2,036,096,654 | |
outstanding over the year | ||
(Note) Number of shares after the stock split is shown.
(Reference) Summary of Non-consolidated Financial Results
Non-consolidated Operating Performance for the Fiscal Year Ended March 31, 2024
(From April 1, 2023 to March 31, 2024)
(1) Results of non-consolidated operations | (Millions of yen) | ||||||||
Net sales | Operating income | Ordinary income | Net income | ||||||
April 2023 - March 2024 | 730,352 | (8.6%) | 160,431 | (13.9%) | 342,832 | 29.3% | 303,739 | 40.4% | |
April 2022 - March 2023 | 799,346 | 15.2% | 186,327 | 14.3% | 265,224 | 31.8% | 216,344 | 43.4% | |
Net income per share | Diluted net income | ||||||||
(yen) | per share (yen) | ||||||||
April 2023 - March 2024 | 151.48 | 151.34 | |||||||
April 2022 - March 2023 | 106.25 | 106.19 |
(Note) Based on "Accounting Standard for Earnings Per Share," per share information for the fiscal year ended March 31, 2023 represents the amount after the stock split.
(2) Non-consolidated financial position | (Millions of yen) | ||||
Total assets | Net assets | Stockholders' equity | Net assets per share | ||
ratio | (yen) | ||||
March 31, 2024 | 1,462,097 | 707,892 | 48.1% | 352.41 | |
March 31, 2023 | 1,342,714 | 705,368 | 52.3% | 347.92 | |
(Note) Stockholders' equity | (Millions of yen) As of | March 31, 2024: 703,439 | As of March 31, 2023: 701,948 |
Stockholders' equity used for the calculation of indices is net assets excluding share subscription rights.
(Information regarding audit procedures)
The financial information contained in this report is not subject to the audit procedures by independent auditors.
Shin-Etsu Chemical Co., Ltd. (4063) | ||
Fiscal Year Ended March 31, 2024 | ||
(Attached Documents) | ||
INDEX | ||
1. Results of Operations and Financial Overview | 2 | |
(1) Results of Operations and Financial Position Overview | 2 | |
(2) Business Prospects | 10 | |
(3) Management Policies | 11 | |
2. Basic Approach to the Selection of Accounting Standards | 11 | |
3. Consolidated Financial Statements | 12 | |
(1) Consolidated Balance Sheets | 12 | |
(2) Consolidated Statements of Income and Statements of Comprehensive Income | 14 | |
(3) Consolidated Statements of Changes in Net Assets | 16 | |
(4) Consolidated Statements of Cash Flows | 18 | |
(5) Notes to Consolidated Financial Statements | 19 | |
(Notes on Premise of Going Concern) | 19 | |
(Segment Information) | 19 | |
(Per Share Information) | 21 | |
(Major Subsequent Events) | 21 | |
(Appendix) | ||
1. | Quarterly Operating Results | 22 |
2. | Capital Expenditures and Depreciation and Amortization | 23 |
3. | Forecast of Investments and Depreciation and Amortization of FY 2024 (Annual) | 23 |
4. | Other Financial Items (Consolidated) | 24 |
5. | Comparative Balance Sheets (Consolidated) | 24 |
6. | Cash Dividends per Share | 25 |
7. | Sales by Manufacturing Location for Each Segment | 25 |
8. | Sales by Region | 26 |
9. | Assets by Segments | 26 |
10. Average Exchange Rate | 26 | |
11. Topics (Apr. 2023 - Apr. 2024) | 27 | |
12. Capital Investments | 27 |
1
Shin-Etsu Chemical Co., Ltd. (4063)
Fiscal Year Ended March 31, 2024
1. Results of Operations and Financial Overview
(1) Results of Operations and Financial Position Overview
1) General Overview
During the fiscal year ended March 31, 2024 (April 1, 2023, to March 31, 2024), while the "probability of a soft landing" became a hot topic in the United States, the Chinese economy entered the phase of major adjustment. In a situation where geopolitical risks are added to the Chinese economic slowdown and the resulting oversupply, the economies of Japan and the Eurozone shifted in contrast with each other, and several emerging countries sustained their growth. There was a difference between strong and weak performances in individual industries. In such a situation, we maintained close communication with our customers, continued to provide a reliable supply of products with required quality, and conducted sales with agility. On the other hand, to ensure financial soundness, we recorded losses based on market fluctuations. We will continue working to improve our operating performance. To that end, we will accelerate the development of products that are valuable to our customers and continue capital investments with a medium- to long-term perspective in order to meet the needs and demands of customers and markets in a timely manner.
The business results for the fiscal year ended March 31, 2024, are as follows:
(Billions of yen) | ||||||||
Fiscal year | Fiscal year | Increase | ||||||
22/4 - 23/3 | 23/4 - 24/3 | (Decrease) | ||||||
Net sales | 2,808.8 | 2,414.9 | (14%) | (393.9) | ||||
Operating income | 998.2 | 701.0 | (30%) | (297.2) | ||||
Ordinary income | 1,020.2 | 787.2 | (23%) | (233.0) | ||||
Net income attributable to | 708.2 | 520.1 | (27%) | (188.1) | ||||
owners of parent | ||||||||
ROIC | 33.6% | 19.4% | (14 points) | |||||
ROE | 19.7% | 12.8% | (7 points) | |||||
ROA | 23.2% | 15.9% | (7 points) | |||||
Per Share (Yen) | ||||||||
Net income | 348 | 259 | (89) | |||||
Cash dividends | 100 | (Forecast)100 | - |
Quarterly
Apr-Jun | Jul-Sep | Oct-Dec | Jan-Mar |
599.2 | 596.7 | 627.5 | 591.5 |
190.8 | 191.0 | 177.6 | 141.5 |
217.1 | 210.3 | 188.2 | 171.4 |
153.6 | 147.8 | 105.0 | 113.6 |
Note 1 ・ The Company enacted a five-for-one stock split of its common stock with an effective date of April 1, 2023.
"Net income per share" and "Cash dividends per share" for the fiscal year ended March 31, 2023 represents the amount after the stock split.
Note 2 ・ ROIC: Return on invested capital
Net operating income after tax / (Net assets + Interest-bearing liabilities-Cash)
- ROE: Return (Net income attributable to owners of parent) on equity
Equity used for this calculation is net assets excluding both share subscription rights and non-controlling interests in consolidated subsidiaries.
- ROA: Return (Ordinary Income) on total assets.
- Amounts are stated in billions of yen by discarding fractional amounts less than 0.1 billion on this summary.
2
Shin-Etsu Chemical Co., Ltd. (4063)
Fiscal Year Ended March 31, 2024
2) Business Segment Overview
Net sales and Operating income by Segment
(Billions of yen)
Net sales | Operating income | |||||
Fiscal year | Fiscal year | Increase | Fiscal year | Fiscal year | Increase | |
22/4 - 23/3 | 23/4 - 24/3 | (Decrease) | 22/4 - 23/3 | 23/4 - 24/3 | (Decrease) | |
Infrastructure | 1,308.0 | 1,010.2 | (23%) | 541.3 | 321.9 | (41%) |
Materials | (297.8) | (219.4) | ||||
Electronics | 875.6 | 850.4 | (3%) | 301.4 | 272.1 | (10%) |
Materials | (25.2) | (29.3) | ||||
Functional | 493.3 | 425.2 | (14%) | 130.6 | 85.0 | (35%) |
Materials | (68.1) | (45.6) | ||||
Processing & | 131.6 | 128.9 | (2%) | 26.3 | 24.1 | (8%) |
Specialized Services | (2.7) | (2.2) | ||||
Total | 2,808.8 | 2,414.9 | (14%) | 998.2 | 701.0 | (30%) |
(393.9) | (297.2) |
Processing & | Processing & | ||||
Specialized Services | |||||
5% | Specialized Services | ||||
Functional | 3% | ||||
Functional | Materials | ||||
12% | |||||
Materials | |||||
18% | Net | Operating | |||
sales | Materials | income | Materials | ||
2,414.9 | 701.0 | ||||
Infrastructure | Infrastructure | ||||
Electronics | Billions of yen | 42% | Electronics | Billions of yen | 46% |
Materials | |||||
Materials | 39% | ||||
35% |
3
Shin-Etsu Chemical Co., Ltd. (4063)
Fiscal Year Ended March 31, 2024
Infrastructure Materials
Fiscal year 22/4 - 23/3 | Fiscal year 23/4 - 24/3 | Increase / | |
(Billions of yen) | (Billions of yen) | (Decrease) | |
Net sales | 1,308.0 | 1,010.2 | (23%) |
Operating income | 541.3 | 321.9 | (41%) |
As for PVC, the export pressures from Chinese manufacturers continued, but we strove to maintain the price level. The caustic soda market was in a similar situation.
Net Sales | Annual | ||||||
First Half | |||||||
(Billions of yen) | |||||||
1,400.0 | 1,308.0 | ||||||
1,050.0 | 1,010.2 | ||||||
700.0 | 651.6 | |||||
490.9 | ||||||
350.0 | ||||||
0.0 | ||||||
Operating Income
(Billions of yen)
600.0 541.3
450.0
300.0 289.8
150.0
0.0
Annual
First Half
321.9
165.2
Fiscal year 22/4 - 23/3
Fiscal year 23/4 - 24/3
Fiscal year 22/4 - 23/3
Fiscal year 23/4 - 24/3
- Continuing price level correction.
- Launching of the capacity increases of the US operation and conducting sales activities that take advantage of it.
- Further improvement of the comprehensive strength of PVC business.
4
Shin-Etsu Chemical Co., Ltd. (4063)
Fiscal Year Ended March 31, 2024
Electronics Materials
Fiscal year 22/4 - 23/3 | Fiscal year 23/4 - 24/3 | Increase / | |
(Billions of yen) | (Billions of yen) | (Decrease) | |
Net sales | 875.6 | 850.4 | (3%) |
Operating income | 301.4 | 272.1 | (10%) |
In the semiconductor market, the adjustment phase since the autumn of the year before last continued during the period under review, but there were also signs that the market had bottomed out. Under these circumstances, we focused on shipping semiconductor materials such as silicon wafer, photoresist and photomask blanks as planned. As for rare earth magnets, adjustment also continued in industrial application, but we focused on expanding sales to automotive and other markets.
Net Sales
(Billions of yen)
Annual First Half
Operating Income
(Billions of yen)
Annual First Half
1,000.0 875.6
800.0
600.0
439.3
400.0
850.4
424.8
350.0
280.0
210.0
140.0
301.4
159.5
272.1
154.2
200.0
0.0
70.0
0.0
Fiscal year 22/4 - 23/3
Fiscal year 23/4 - 24/3
Fiscal year 22/4 - 23/3
Fiscal year 23/4 - 24/3
- Providing materials and technologies that are indispensable to the progress of devices including AI applications.
- Implementing as soon as possible the mass production of magnet technology without using heavy rare earths.
- Contributing to the reduction of greenhouse gas emissions by proposing technologies that enhance energy saving and electrification.
- To strengthen and expand the supply system for semiconductor lithography materials, a new production base will be built (investment amount: approximately 83 billion yen).
5
Shin-Etsu Chemical Co., Ltd. (4063)
Fiscal Year Ended March 31, 2024
Functional Materials
Fiscal year 22/4 - 23/3 | Fiscal year 23/4 - 24/3 | Increase / | |
(Billions of yen) | (Billions of yen) | (Decrease) | |
Net sales | 493.3 | 425.2 | (14%) |
Operating income | 130.6 | 85.0 | (35%) |
In the commodity product group, the inventory adjustment and the slowdown in the market caused by the slump in the Chinese economy continued and their impact intensified in the second half of the fiscal year. In response, we strove to make up for it by increasing the sales of highly functional product groups. We booked an impairment loss of 10.5 billion yen on silicone polymer manufacturing facilities in Thailand.
Net Sales
(Billions of yen)
500.0 493.3
400.0
300.0 255.3
200.0
100.0
0.0
Annual First Half
425.2
215.4
Operating Income
(Billions of yen) | |||
150.0 | 130.6 | ||
120.0 | |||
90.0 | 73.5 | ||
60.0 | |||
30.0 | |||
0.0 | |||
Annual First Half
85.0
51.7
Fiscal year 22/4 - 23/3
Fiscal year 23/4 - 24/3
Fiscal year 22/4 - 23/3
Fiscal year 23/4 - 24/3
- Significant and focused promotion of higher silicone product functionality and raising of the level of environmental impact reduction.
- Continuous development of highly functional products for automotive applications, personal care application, healthcare application, etc.
- Capital investment to strengthen the pharmaceutical cellulose business (10 billion yen).
6
Shin-Etsu Chemical Co., Ltd. (4063)
Fiscal Year Ended March 31, 2024
Processing & Specialized Services
Fiscal year 22/4 - 23/3 | Fiscal year 23/4 - 24/3 | Increase / | |
(Billions of yen) | (Billions of yen) | (Decrease) | |
Net sales | 131.6 | 128.9 | (2%) |
Operating income | 26.3 | 24.1 | (8%) |
The demand for semiconductor wafer-related containers continued to be adjusted particularly for in-process products, and the sales of input devices for automobiles remained strong as the automobiles industry recovered. The sales of PVC wrapping films have increased for the food service and lodging industry against the background of the increase in inbound tourist demand.
Net Sales
(Billions of yen)
Annual First Half
Operating Income
(Billions of yen)
Annual First Half
150.0
120.0
131.6
128.9
- 26.3
20.0
24.1
90.0
63.0
60.0
30.0
0.0
64.6
15.0 14.0
10.0
5.0
0.0
11.9
Fiscal year 22/4 - 23/3
Fiscal year 23/4 - 24/3
Fiscal year 22/4 - 23/3
Fiscal year 23/4 - 24/3
- Going ahead with the enhancement of the production capacity of semiconductor wafer-related containers. Further development and market penetration of EV-related products.
7
Shin-Etsu Chemical Co., Ltd. (4063)
Fiscal Year Ended March 31, 2024
3) Information on Assets, Liabilities and Net assets
At the end of FY 2023 (March 31, 2024), total assets increased by ¥417.6 billion compared with that at the end of the previous fiscal year to ¥5,147.9 billion. It was mainly due to increases in overseas consolidated subsidiary assets because of yen depreciation, and property, plant and equipment.
Total liabilities increased by ¥19.8 billion from that at the end of the previous fiscal year to ¥723.9 billion.
Total net assets increased by ¥397.8 billion compared with that at the end of the previous fiscal year to ¥4,424.0 billion. This increase was mainly due to net income attributable to owners of parent of ¥520.1 billion for FY 2023, ¥168.6 billion for foreign currency translation adjustments due to yen depreciation, offset by ¥211.2 billion for a cash dividend payment and ¥107.7 billion for purchases of treasury stock.
4) Status of Cash Flows
Billions of yen | |||||
April 1, 2022 - | April 1, 2023 - | Increase | |||
March 31, 2023 | March 31, 2024 | (Decrease) | |||
Cash and cash equivalents at beginning of fiscal year | 1,008.9 | 1,247.3 | 238.4 | ||
1. | Cash flows from operating activities | 788.0 | 755.1 | (32.9) | |
2. | Cash flows from investing activities | (186.4) | (1,099.2) | (912.8) | |
3. | Cash flows from financing activities | (423.5) | (369.4) | 54.1 | |
Net | 4. | Effect of foreign exchange and others | 60.4 | 56.2 | (4.2) |
increase (decrease) in cash and cash equivalents | 238.4 | (657.2) | (895.6) | ||
Cash and cash equivalents at end of fiscal year | 1,247.3 | 590.1 | (657.2) |
The balance of cash and cash equivalents at the end of FY 2023 decreased by 53% (¥657.2 billion) compared with that at the end of the previous fiscal year to ¥590.1 billion.
Cash flows from operating activities
Net cash provided by operating activities amounted to ¥755.1 billion, a decrease of ¥32.9 billion from the previous fiscal year. This consisted mainly of ¥795.6 billion in income before income taxes and non-controlling interests, ¥227.6 billion in depreciation and amortization, and ¥208.9 billion for the payment of income taxes.
Cash flows from investing activities
Net cash used for investing activities increased by ¥912.8 billion from the previous fiscal year to ¥1,099.2 billion. This was mainly due to ¥781.3 billion for net increase in time deposits and ¥374.4 billion for purchases of property, plant and equipment.
Cash flows from financing activities
Net cash used for financing activities decreased by ¥54.1 billion from the previous fiscal year to ¥369.4 billion. This was mainly due to ¥107.7 billion for purchases of treasury stock and a cash dividend payment of ¥211.2 billion.
8
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Shin-Etsu Chemical Co. Ltd. published this content on 25 April 2024 and is solely responsible for the information contained therein. Distributed by Public, unedited and unaltered, on 25 April 2024 07:14:21 UTC.