Note: This document has been translated from a part of the Japanese original for reference purposes only. In the event of any discrepancy between this translated document and the Japanese original, the original shall prevail.

August 7, 2023

[Summary] Consolidated Financial Results

for the Three Months Ended June 30, 2023

(Under IFRS)

Company name:

Toray Industries, Inc.

Listing:

Tokyo Stock Exchange

Securities code:

3402

URL:

www.toray.com

Representative:

Mitsuo Ohya, President

Inquiries:

Toshiki Matsumura, General Manager, Corporate Communications Department

Telephone:

+81-3-3245-5178

Scheduled date to file quarterly securities report:

August 10, 2023

Scheduled date to commence dividend payments:

-

Preparation of supplementary material on quarterly financial results: Yes

Holding of quarterly financial results briefing:

Yes (for Securities Analysts/

Institutional Investors)

(Yen amounts are rounded to the nearest million.)

1. Consolidated financial results for the three months ended June 30, 2023 (from April 1, 2023 to June 30, 2023)

(1) Consolidated financial performance

(Percentages indicate year-on-year changes.)

Revenue

Core operating income

Operating income

Profit before tax

Three months

Millions of yen

%

Millions of yen

%

Millions of yen

%

Millions of yen

%

ended

June 30, 2023

578,057

(4.6)

21,906

(19.2)

20,794

(59.1)

25,107

(56.1)

June 30, 2022

605,869

17.9

27,108

(24.9)

50,883

41.8

57,224

39.8

Profit

Profit attributable to

Basic earnings

Diluted earnings

owners of parent

per share

per share

Three months

Millions of yen

%

Millions of yen

%

Yen

Yen

ended

June 30, 2023

16,054

(61.9)

13,946

(65.1)

8.71

8.69

June 30, 2022

42,093

29.1

39,921

34.3

24.94

24.89

Notes:

1. Comprehensive income for the three months ended June 30, 2023 and 2022 were ¥128,095 million ((1.9％)) and ¥130,556 million (206.1％), respectively.

2. Core operating income is calculated by excluding income and expenses due to non-recurring factors from operating income.

(2) Consolidated financial position

Total assets

Total equity

Equity attributable to

Equity ratio

owners of parent

As of

Millions of yen

Millions of yen

Millions of yen

%

June 30, 2023

3,347,370

1,747,560

1,643,300

49.1

March 31, 2023

3,194,041

1,635,810

1,535,028

48.1

2. Cash dividends

Annual dividends per share

First quarter-end

Second quarter-

Third quarter-end

Fiscal year-end

Total

end

Yen

Yen

Yen

Yen

Yen

Year ended

-

9.00

-

9.00

18.00

March 31, 2023

Year ending

-

March 31, 2024

Year ending

March 31, 2024

9.00

-

9.00

18.00

(Forecast)

Note: Revisions to the forecast of cash dividends most recently announced: None

3. Segment information

Revenue

Three months ended June 30,

2023

2022

Change

Millions of yen

Millions of yen

%

Fibers & Textiles

223,794

225,786

(0.9)

Performance Chemicals

214,830

245,008

(12.3)

Carbon Fiber Composite Materials

68,748

68,629

0.2

Environment & Engineering

55,963

50,719

10.3

Life Science

11,288

12,319

(8.4)

Other

3,434

3,408

0.8

Consolidated total

578,057

605,869

(4.6)

Core operating income

Three months ended June 30,

2023

2022

Change

Millions of yen

Millions of yen

%

Fibers & Textiles

10,926

8,682

25.8

Performance Chemicals

7,402

16,871

(56.1)

Carbon Fiber Composite Materials

2,738

2,405

13.8

Environment & Engineering

6,151

3,487

76.4

Life Science

(467)

95

-

Other

387

372

4.0

Total

27,137

31,912

(15.0)

Reconciliations

(5,231)

(4,804)

-

Consolidated total

21,906

27,108

(19.2)

Notes:

  1. "Other" represents service-related businesses such as analysis, physical evaluation and research.
  2. "Reconciliations" of core operating income for the three months ended June 30, 2023 of ¥(5,231) million include intersegment eliminations of ¥129 million and corporate expenses of ¥(5,360) million. "Reconciliations" of core operating income for the three months ended June 30, 2022 of ¥(4,804) million include intersegment eliminations of ¥330 million and corporate expenses of ¥(5,134) million. The corporate expenses consist of the headquarters' research expenses that are not allocated to each reportable segment.

4. Consolidated financial forecasts for the fiscal year ending March 31, 2024 (from April 1, 2023 to March 31, 2024)

(Percentages indicate year-on-year changes.)

Revenue

Core operating income

Profit attributable to

Basic earnings

owners of parent

per share

Millions of yen

%

Millions of yen

%

Millions of yen

%

Yen

Six months

ending September

1,200,000

(4.9)

45,000

(17.3)

29,000

(50.9)

18.11

30, 2023

Year ending

2,560,000

2.8

120,000

25.0

76,000

4.4

47.45

March 31, 2024

Note: Revisions to the forecast of consolidated financial forecast most recently announced: Yes

* Notes

  1. Changes in significant subsidiaries during the period (changes in specified subsidiaries resulting in the change in scope of consolidation): None
  2. Changes in accounting policies and changes in accounting estimates
    1. Changes in accounting policies required by IFRS: None
    2. Changes in accounting policies due to other reasons: None
    3. Changes in accounting estimates: None
  4. Number of issued shares (ordinary shares)
    1. Total number of issued shares at the end of the period (including treasury shares)

As of June 30, 2023

As of March 31, 2023

1,631,481,403 shares

1,631,481,403 shares

  1. Number of treasury shares at the end of the period

As of June 30, 2023

As of March 31, 2023

29,837,923 shares

30,457,569 shares

(iii) Average number of shares outstanding during the period

Three months ended June 30, 2023

Three months ended June 30, 2022

1,601,230,326 shares

1,600,813,723 shares

  • Quarterly financial results reports are exempt from quarterly review conducted by certified public accountants or an audit corporation.
  • Proper use of earnings forecasts, and other special matters
    Earnings forecasts given herein have been prepared based on assumptions such as economic environment outlook available as of the publication of this report and these forecasts are not guarantees of future performance. Actual results may differ significantly from forecasts due to various factors. For the assumptions underlying the forecasts herein, please refer to "Consolidated Financial Performance and Financial Position 3. Forecast for the Fiscal Year Ending March 31, 2024" of the accompanying materials.

Consolidated Financial Performance and Financial Position

1. Overview of the Three Months Ended June 30, 2023

During the period under review (from April 1, 2023 to June 30, 2023), the recovery in the global economy lacked strength due to the impact of rising inflation and interest rates particularly in Europe and the U.S. and the slowdown in the recovery in China. The Japanese economy continued on the path of normalization after the COVID-19 pandemic, although the uncertainties in the European and U.S. economies and prolonged adjustment in the semiconductor market exerted downward pressure on the recovery.

Under such circumstances, Toray Group starting from fiscal 2023 has been promoting its medium-term management program "Project AP-G 2025", aiming to achieve sound, sustainable growth through the implementation of five basic strategies of "Sustainable growth," "Ultimate value creation," "Product and operational excellence," "Enhancement of people-centric management," and "Risk management and governance."

As a result, consolidated revenue for the three months ended June 30, 2023 declined 4.6% compared with the same period a year earlier to ¥578.1 billion, while core operating income (Note 1) fell 19.2% to ¥21.9 billion. Operating income declined 59.1% to ¥20.8 billion and profit attributable to owners of parent fell 65.1% to ¥13.9 billion.

Financial performance by segment is described below.

Financial Performance by Segment:

Fibers & Textiles

Both apparel applications and hygiene material applications were sluggish respectively due to worsening market conditions in Europe and the U.S. and the impact of the worsening supply-demand balance. Industrial applications witnessed a demand recovery trend in automobile applications and there was improvement in the spread from the price decline of natural gas, etc. in Europe.

As a result, revenue of overall Fibers & Textiles segment decreased 0.9% to ¥223.8 billion compared with the same period of the previous fiscal year while core operating income rose 25.8% to ¥10.9 billion.

Performance Chemicals

In the resins and chemicals businesses, the resins business was weak given the impact of demand declines in the Chinese markets and other factors. Demand declined due to inventory adjustment in supply chains for optical applications and electronic parts in the films business as well as circuit materials in the electronic & information materials business.

As a result, revenue of overall Performance Chemicals segment decreased 12.3% to ¥214.8 billion compared with the same period of the previous fiscal year and core operating income declined 56.1% to ¥7.4 billion.

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Toray Industries Inc. published this content on 07 August 2023 and is solely responsible for the information contained therein. Distributed by Public, unedited and unaltered, on 07 August 2023 03:47:04 UTC.