Nitto Boseki : Financial Results (Fiscal Year Ending 2024/Mar 1Q）（242KB）

Disclaimer: This document has been translated from the Consolidated Financial Results report originally written in Japanese and is provided for your reference and convenience only, without any warranty as to its accuracy or as to the completeness of the information. The Japanese original of the document is the sole official version.

Consolidated Financial Results

for the First Three Months of the Fiscal Year Ending March 31, 2024

August 3, 2023

Company Name:

Nittobo

Securities Code:

3110

Stock Exchange Listing:

Tokyo Stock Exchange

URL:

https://www.nittobo.co.jp/eng/index

Representative:

Yuichi Tsuji, Director, Representative and Chief Executive Officer

Contact:

Hiroki Kajikawa, Executive Officer

Tel:

+81-3-4582-5040

Scheduled date of filing quarterly securities report:

August 9, 2023

Scheduled date of commencement of dividend payment:

Preparation of supplementary explanatory material for quarterly financial results: Yes

Organization of quarterly financial results briefing:

Yes (online conference for institutional investors and

analysts)

(Millions of yen, rounded down)

1. Consolidated financial results for the first three months of the fiscal year ending March 31, 2024 (April 1, 2023 to June 30, 2023)

(1) Consolidated results of operations (cumulative)

(Percentage figures represent year-on-year changes.)

Net sales

Operating profit

Ordinary profit

Profit attributable to

owners of parent

Three months ended

Millions of yen

June 30, 2023

20,297

(14.8)

885

(66.1)

1,884

(47.6)

1,059

(77.9)

June 30, 2022

23,827

16.1

2,613

54.3

3,594

121.5

4,787

486.7

(Note) Comprehensive income: Three months ended June 30, 2023

¥2,483 million [(60.6)%]

Three months ended June 30, 2022

¥6,310 million [245.7%]

Basic earnings

Diluted earnings

per share

Three months ended

Yen

June 30, 2023

29.10

June 30, 2022

124.06

(2) Consolidated financial position

Total assets

Net assets

Equity-to-asset ratio

As of

Millions of yen

June 30, 2023

183,788

110,208

57.1

March 31, 2023

185,585

108,948

55.9

(Reference) Equity: As of June 30, 2023

¥104,996 million;

As of March 31, 2023 ¥103,793 million

2. Dividends

Dividends per share

First quarter-

Second quarter-

Third quarter-

Fiscal year-end

Annual total

end

Yen

Fiscal year ended March 31, 2023

22.50

32.50

55.00

Fiscal year ending March 31, 2024

22.50

45.00

(Forecast)

(Note) Revision of the forecasted dividends from most recently announced figures: None

3. Consolidated earnings forecasts for the fiscal year ending March 31, 2024 (April 1, 2023 to March 31, 2024)

(Percentage figures represent year-on-year changes.)

Net sales

Operating profit

Ordinary profit

Profit attributable to

Basic earnings

owners of parent

per share

Millions of yen

Yen

First half

42,000

(10.7)

2,500

(45.6)

3,000

(51.7)

2,000

(73.2)

54.93

Full year

92,000

5.1

6,500

33.2

7,000

15.4

4,500

62.3

123.59

(Note) Revision of the forecasted earnings from most recently announced figures: Yes

* Notes

(1) Changes in significant subsidiaries during the period: None

(Changes in specific subsidiaries accompanied by changes in the scope of consolidation)

Newly included:

None;

Excluded:

None

As of June 30, 2023

37,723,012 shares As of March 31, 2023

37,723,012 shares

(b) Number of treasury shares at the end of the period

As of June 30, 2023

1,313,473 shares As of March 31, 2023

1,313,357 shares

Three months ended June 30, 2023

36,409,610 shares Three months ended June 30, 2022

38,590,217 shares

*Quarterly financial results reports are exempt from quarterly review conducted by certified public accountants or an audit corporation.

*Explanation on the appropriate use of earnings forecasts and other special notes

Cautions on forward-looking statements, etc.

The projections contained in this document are based on information currently available to NITTO BOSEKI CO., LTD. (hereinafter, the "Company") and certain assumptions that are deemed to be reasonable, and the Company does not intend to guarantee their achievement. Moreover, actual business and other results may differ from the forecast due to various factors going forward. For matters related to the forecasts, please see "(2) Explanation on Consolidated Earnings Forecasts for the Fiscal Year" of "1. Qualitative Information on Quarterly Financial Results" on page 4.

NITTO BOSEKI CO., LTD. (3110)

1. Qualitative Information on Quarterly Financial Results

(1) Explanation on Operating Results

During the first three months ended June 30, 2023, recovery of the global economy was at a gradual pace due to factors such as prolonged inflation in Europe and the United States and uncertainties concerning the Chinese economy since its zero-COVID policy was lifted. In the Japanese economy, although social and economic activities have moved toward full-scale normalization following the downgrading of COVID-19 to a category V infectious disease, the outlook remained uncertain mainly due to the risk of downward pressure on the economy caused by global monetary tightening resulting from rising prices.

In such an environment, the Nittobo Group (hereinafter, the "Group") aims to become a corporate group that continues to create a global niche No.1 business that contributes to "Environment/Energy," "Digital Society," and "Health/Safety/Security" in order to help achieve a sustainable society, based on its Mid-Term Business Plan with the fiscal year ending March 31, 2024 as its final year.

In April 2023, the Group welcomed the 100th anniversary of its founding as well as a new start for the next 100 years.

As a result, consolidated net sales were ¥20,297 million (down 14.8% year on year), operating profit was ¥885 million (down 66.1% year on year), ordinary profit was ¥1,884 million (down 47.6% year on year) and profit attributable to owners of parent was ¥1,059 million (down 77.9% year on year).

The status of operations and initiatives being carried out in each business are as follows.

In the Glass Fiber Yarn Business, sales of composite materials used in reinforced plastic applications and yarn for electronic materials were lower than the level in the same period of the previous fiscal year affected by inventory adjustments in the supply chain. In addition, revenue deteriorated due to the rise in energy prices and other factors. As a result, net sales in the Glass Fiber Yarn Business were ¥5,748 million (down 16.6% year on year) and operating loss was ¥270 million (compared with an operating profit of ¥428 million in the same period of the previous fiscal year).

In the Glass Fiber Cloth Business, while a recovery was seen in sales of Special Glass for servers in data centers, other than that the demand for semiconductors remained sluggish, and there was an impact mainly from inventory adjustments in the supply chain. As a result, net sales in the Glass Fiber Cloth Business were ¥5,423 million (down 22.3% year on year) and operating profit was ¥758 million (down 46.5% year on year).

In the Glass Fiber for Industrial Materials Business, strong sales of insulation used in residential housing and glass cloth for facility and construction materials contributed to revenue. As a result, net sales in the Glass Fiber for Industrial Materials Business were ¥4,936 million (up 7.6% year on year) and operating profit was ¥11 million (compared with an operating loss of ¥20 million in the same period of the previous fiscal year).

In the Life Science Business, sales in the medical business were steady. On the other hand, revenue decreased as Nitto Beverage Co., Ltd., which is engaged in the beverage business, was excluded from the scope of consolidation of the Company in January 2023. As a result, net sales in the Life Science Business were ¥3,240 million (down 27.4% year on year) and operating profit was ¥554 million (down 36.3% year on year).

In the Textile Business, although sales of interlining products were strong, there was an impact from higher costs. As a result, net sales in the Textile Business were ¥639 million (up 5.5% year on year) and operating profit was ¥36 million (down 14.2% year on year).

NITTO BOSEKI CO., LTD. (3110)

(2) Explanation on Consolidated Earnings Forecasts for the Fiscal Year

After giving consideration to the operating results of the first three months ended June 30, 2023, and the current business trend, the Company has upwardly revised its net sales and operating profit for the first six months of the fiscal year ending March 31, 2024. Ordinary profit and profit attributable to owners of parent were revised as a result of the revision to operating profit. The full-year earnings forecast figures involve numerous uncertainties regarding the second half of the fiscal year, so revisions to the earnings forecasts have only been reflected for the first six months.

Revisions to the consolidated earnings forecasts for the first six months of the fiscal year ending March 31, 2024 (April 1, 2023 to September 30, 2023)

Net sales

Operating profit

Ordinary profit

Profit attributable

Basic earnings

to owners of parent

per share

Millions of yen

Yen

Previous forecasts (A)

40,000

0.00

Revised forecasts (B)

42,000

2,500

3,000

2,000

54.93

Amount changed (B) - (A)

2,000

2,500

3,000

2,000

Change (%)

5.0

Results for the first six

months of the fiscal year

47,037

4,597

6,205

7,474

195.32

ended March 31, 2023

Revisions to the consolidated earnings forecasts for the fiscal year ending March 31, 2024 (April 1, 2023 to March 31, 2024)

Net sales

Operating profit

Ordinary profit

Profit attributable

Basic earnings

to owners of parent

per share

Millions of yen

Yen

Previous forecasts (A)

90,000

4,000

2,500

68.66

Revised forecasts (B)

92,000

6,500

7,000

4,500

123.59

Amount changed (B) - (A)

2,000

2,500

3,000

2,000

Change (%)

2.2

62.5

75.0

80.0

Results for the fiscal year

87,529

4,880

6,067

2,772

73.94

ended March 31, 2023

NITTO BOSEKI CO., LTD. (3110)

2. Quarterly Consolidated Financial Statements and Significant Notes Thereto

(1) Quarterly Consolidated Balance Sheet

(Millions of yen)

As of March 31, 2023

As of June 30, 2023

Assets

Current assets

Cash and deposits

21,594

15,591

Notes and accounts receivable - trade

21,954

23,158

Merchandise and finished goods

16,631

17,395

Work in process

5,611

6,148

Raw materials and supplies

24,186

24,381

Other

4,239

3,676

Allowance for doubtful accounts

(2)

Total current assets

94,215

90,348

Non-current assets

Property, plant and equipment

Buildings and structures, net

19,620

19,508

Machinery, equipment and vehicles, net

25,756

25,923

Land

15,490

15,541

Leased assets, net

568

540

Construction in progress

5,553

6,188

Other, net

1,620

1,570

Total property, plant and equipment

68,609

69,273

Intangible assets

3,133

3,063

Investments and other assets

Investment securities

14,094

16,366

Retirement benefit asset

1,251

1,468

Deferred tax assets

2,904

1,911

Other

1,397

1,378

Allowance for doubtful accounts

(20)

Total investments and other assets

19,627

21,103

Total non-current assets

91,369

93,439

Total assets

185,585

183,788

Attachments

Disclaimer

Nitto Boseki Co. Ltd. published this content on 03 August 2023 and is solely responsible for the information contained therein. Distributed by Public, unedited and unaltered, on 03 August 2023 07:19:28 UTC.

AttachmentsDisclaimerNitto Boseki Co. Ltd.03 August 202303 August 2023 07:19:28 UTC

Nitto Boseki : Financial Results (Fiscal Year Ending 2024/Mar 1Q） （242KB）

Nitto Boseki : Financial Results (Fiscal Year Ending 2024/Mar 1Q）（242KB）