Note: This document is a translation of a part of the original Japanese version and provided for reference purposes only. In the event of any discrepancy between the Japanese original and this English translation, the Japanese original shall prevail.
Consolidated Financial Results
for the Three Months Ended June 30, 2024
[Japanese GAAP]
August 9, 2024 | ||||||||||||||||
Company name: IWATANI CORPORATION | ||||||||||||||||
Stock exchange listing: Tokyo | ||||||||||||||||
Code number: 8088 | ||||||||||||||||
URL: https://www.iwatani.co.jp/ | ||||||||||||||||
Representative: Hiroshi Majima President | ||||||||||||||||
Contact: | Tetsuo Matsuo | General Manager Accounting Dept. | ||||||||||||||
Phone: 06-7637-3325 | ||||||||||||||||
Scheduled date of commencing dividend payments: - | ||||||||||||||||
Availability of supplementary briefing material on financial results: Yes | ||||||||||||||||
Schedule of financial results briefing session: Yes | ||||||||||||||||
(Amounts of less than one million yen are rounded down) | ||||||||||||||||
1. Consolidated Financial Results for the Three Months Ended June 30, 2024 (April 1, 2024 to June 30, 2024) | ||||||||||||||||
(1) Consolidated Operating Results | (% indicates changes from the previous corresponding period.) | |||||||||||||||
Net sales | Operating profit | Ordinary profit | Profit attributable to | |||||||||||||
owners of parent | ||||||||||||||||
Three months ended | Million yen | % | Million yen | % | Million yen | % | Million yen | % | ||||||||
June 30, 2024 | 197,519 | (2.2) | 8,419 | (1.1) | 15,038 | 41.7 | 11,601 | 61.7 | ||||||||
June 30, 2023 | 201,909 | (0.9) | 8,512 | (3.6) | 10,614 | (6.3) | 7,172 | (12.3) | ||||||||
(Note) Comprehensive income: | Three months ended June 30, 2024: | ¥ | 17,533 million[ | 13.5%] | ||||||
Three months ended June 30, 2023: | ¥ | 15,445 million[ | 28.4%] | |||||||
Basic earnings | Diluted earnings per | |||||||||
per share | share | |||||||||
Three months ended | Yen | Yen | ||||||||
June 30, 2024 | 201.67 | - | ||||||||
June 30, 2023 | 124.69 | - | ||||||||
(2) Consolidated Financial Position | ||||||||||
Total assets | Net assets | Capital adequacy ratio | ||||||||
As of | Million yen | Million yen | % | |||||||
June 30, 2024 | 833,780 | 382,880 | 44.6 | |||||||
March 31, 2024 | 834,391 | 372,930 | 43.4 | |||||||
(Reference) Equity: | As of | June 30, 2024: | ¥ | 372,149 million | ||||||
As of March 31, 2024: | ¥ | 362,328 million |
2. Dividends
Annual dividends | |||||
1st | 2nd | 3rd | Year-end | Total | |
quarter-end | quarter-end | quarter-end | |||
Yen | Yen | Yen | Yen | Yen | |
Fiscal year ended March 31, 2024 | - | - | - | 130.00 | 130.00 |
Fiscal year ending March 31, 2025 | - | ||||
Fiscal year ending March 31, 2025 | - | - | 32.50 | 32.50 | |
(Forecast) | |||||
(Note) 1. Revision to the forecast for dividends announced most recently: No |
- The Company plans to carry out a 4-for-1 stock split of its common share, with an effective date of October 1, 2024.
The year-end dividend per share forecast for the fiscal year ending March 31, 2025 takes into account the impact of this stock split. The year-end dividend forecast for the fiscal year ending March 31, 2025 that does not take into account the stock split is 130.00 yen. - One of the company's divedend policies is to distribute 20% of profit of Cosmo Energy HD, excluding the impact of inventory valuation factors and multiplied by the shareholding ratio. Dividends under this policy are not included in annual dividends for the fiscal year ending March 31, 2025(Forecast).
3. Consolidated Financial Results Forecast for the Fiscal Year Ending March 31, 2025(April 1, 2024 to March 31, 2025)
(% indicates changes from the previous corresponding period.)
Net sales | Operating profit | Ordinary profit | Profit attributable to | Basic earnings | |||||||
owners of parent | per share | ||||||||||
Million yen | % | Million yen | % | Million yen | % | Million yen | % | Yen | |||
Full year | 902,000 | 6.4 | 52,700 | 4.1 | 72,800 | 10.0 | 54,000 | 14.0 | 234.67 | ||
(Note) 1. Revision to the financial results forecast announced most recently: No
2. The Company plans to carry out a 4-for-1 stock split of its common share, with an effective date of October 1, 2024.
The basic earnings per share in the consolidated financial results forecast for the fiscal year ending March 31, 2025 take into account the impact of this stock split. The basic earnings per share for the fiscal year ending March 31, 2025 that do not take into account the stock split is 938.67 yen.
- Notes:
(1) Significant changes in the scope of consolidation during the period: Yes
New | 2 Companies |
Exclusion: | 3 Companies |
- Accounting policies adopted specially for the preparation of quarterly consolidated financial statements: No
- Changes in accounting policies, changes in accounting estimates and retrospective restatement
- Changes in accounting policies due to the revision of accounting standards: Yes
- Changes in accounting policies other than 1) above: No
- Changes in accounting estimates: No
- Retrospective restatement: No
(Note) For details, please refer to "2. Quarterly Consolidated Financial Statements and Notes (3) Explanatory Notes to Quarterly
Consolidated Financial Statement (Notes to Changes in Accounting Policies)" on page 8 of the attached document.
(4) Total number of issued shares (common shares)
1) Total number of issued shares at the end of the period (including treasury shares):
June 30, 2024: | 58,561,649 shares |
March 31, 2024: | 58,561,649 shares |
2) | Number of treasury shares at the end of the period: | |
June 30, 2024: | 1,034,065 shares | |
March 31, 2024: | 1,033,325 shares | |
3) | Average number of shares outstanding during the period: | |
Three months ended June 30, 2024: | 57,527,811 shares | |
Three months ended June 30, 2023: | 57,524,159 shares |
*1. Review of the Japanese-language originals of the attached consolidated quarterly financial statements by certified public accountants or an audit firm： Yes (voluntary)
*2. Cautionary Statement with Respect to Forward-Looking Statements, and Other Information (Caution regarding forward-looking statements)
The forward-looking statements, such as results forecasts, included in this document are based on information currently available to the Company and assumptions considered reasonable, and do not purport to be a promise by the Company to achieve such results. Actual results may differ materially, depending on a range of factors. For the assumptions prerequisite to the results forecasts and the points to be noted in the use of the results forecasts, please see "1. Overview of Operating Results, Etc. (3) Consolidated Financial Results Forecasts" on page 3.
Contents
Overview of Operating Results, Etc. …………………………………………………………………………… 2
- Overview of Operating Results for the Three Months Ended June 30, 2024 ……………………………. 2
- Segment Information …………………………….……………….……………….……………….……. 2
(3) | Overview of Financial Position for the Three Months Ended June 30, 2024 …………………………… | 3 |
(4) | Consolidated Financial Results Forecasts ………………………………………………………………... | 3 |
Quarterly Consolidated Financial Statements and Notes .……………………………………………………… | 4 |
- Quarterly Consolidated Balance Sheets ………………………………………………………………….. 4
- Quarterly Consolidated Statements of Income and Comprehensive Income …………………………….. 6
- Explanatory Notes to Quarterly Consolidated Financial Statements …………………………………….. 8 (Notes to Changes in Accounting Policies) ………………………………………………………………. 8
(Notes to Segment Information, Etc.) …………………………………………………………………… | 8 |
(Notes in the Event of Significant Changes in Shareholders' Equity) …………………………………… | 9 |
(Notes on the Assumption of a Going Concern) ………………………………………………………… | 9 |
(Notes to Quarterly Consolidated Statements of Cash Flows) …………………………………………… | 9 |
(Notes to Significant Subsequent Events) ……………………………………………………………….. 10
(Notes to Additional Information) ……………………………………………………………………….. 10
Additional Information …………………………………………………………………………………………. 11
Results for 1Q FY2024 ………………………………………………………………………………………... 11
- Consolidated Statements of Income ……………………………………………………………………… 11
- Operating Profit Except for Impact of LPG Import Price Fluctuation …………………………………… 11
- LPG Import Price (CP) …………………………………………………………………………………… 11
- Segment Information ……………………………………………………………………………………... 11
- LPG and Industrial Gases Net Sales -Sales Volume ……………………………………………………... 12
- Financial Position ………………………………………………………………………………………… 12
- Capital Expenditure ………………………………………………………………………………………. 12
- Amount of share of profit or loss of Cosmo accounted for using equity method ………………………... 12
- Non-consolidated…………………………………………………………………………….…………… 12
- 1 -
Overview of Operating Results, Etc.
(1) Overview of Operating Results for the Three Months Ended June 30, 2024
During the cumulative first quarter of the current fiscal year, the Japanese economy continued to recover gradually, with signs of a pick-up in personal consumption due to an improvement in the income environment, and capital investment also remaining strong against the backdrop of improving corporate earnings, despite the uncertainty surrounding the future due to exchange rate fluctuations and rising prices.
Under these circumstances, Iwatani (hereinafter referred to as the "Company") expanded its business to achieve its basic policies of "solutions to social issues" and "sustained growth" in accordance with its medium-term management plan, "PLAN27," which ends in the fiscal year ending March 31, 2028.
In order to realize a hydrogen energy-based society, the Company opened the Iwatani Cosmo Hydrogen Refueling Station Heiwajima, the first hydrogen-refueling station located within a truck terminal in Japan. We have also taken steps to expand demand for hydrogen, for instance, starting construction of a new hydrogen station for commercial vehicles in Tokyo.
In the Integrated Energy Business, the Company has begun the operation of a cylinder filling station constructed within the Negishi Liquefied Gas Terminal, an LPG import terminal. We will carry out import, filling, and distribution on the same premises to improve logistics efficiency and strengthen our supply system and profitability in the Kanto and Tokyo metropolitan areas.
In the Industrial Gases & Machinery Business, we opened a new gas center in Singapore with expanded manufacturing capacity for helium, semiconductor material gases, air separation gases, etc. and will promote business expansion in Southeast Asia.
In the Materials Business, we strengthened sales of biomass fuels to domestic power plants.
As a result, for the first quarter of the current fiscal year, net sales were 197.519 billion yen (-4.389 billion yen year-on-year), operating profit was 8.419 billion yen (-0.093 billion yen year-on-year), ordinary profit was 15.038 billion yen (+4.423 billion yen year-on-year), and profit attributable to owners of parent was 11.601 billion yen (+4.428 billion yen year-on-year).
-
Segment Information Integrated Energy
In the Integrated Energy Business, the LPG import prices were higher than those in the previous fiscal year, sales prices rose, and sales volume of industrial LPG remained strong, resulting in an increase in revenue. On the other hand, profits increased as the profitability of LPG improved in the wholesale sector while declining in the retail sector, and LPG price fluctuation had a positive impact (+1.658 billion yen year-on-year).
As a result, net sales in this segment were 82.567 billion yen (+5.606 billion yen year-on-year), and operating profit was 3.267 billion yen (+1.666 billion yen year-on-year).
Industrial Gases & Machinery
In the Industrial Gases & Machinery Business, sales of air separation gases remained strong mainly for the electronic components industries. In the hydrogen business, the sales volume of liquid hydrogen for space development increased. On the other hand, the profitability of specialty gases declined due to the weakening of helium markets, mainly in Asia. In machinery and equipment, sales of automobile-related equipment and gas supply facilities decreased.
As a result, net sales in this segment were 60.371 billion yen (-1.811 billion yen year-on-year), and operating profit was 3.286 billion yen (-1.613 billion yen year-on-year).
- 2 -
Materials
In the Materials Business, sales of resin products, mainly for air conditioners, increased, and in the mineral sands business overseas, production and sales at our own mining sites remained strong. On the other hand, sales of stainless steel and rechargeable battery materials for next-generation automobiles were sluggish due to factors such as falling market prices and inventory adjustments at sales destinations.
As a result, net sales in this segment were 47.316 billion yen (-8.004 billion yen year-on-year), and operating profit was 2.529 billion yen (-0.240 billion yen year-on-year).
Others
Net sales were 7.263 billion yen (-0.180 billion yen year-on-year), and operating profit was 0.788 billion yen (+0.177 billion yen year-on-year).
-
Overview of Financial Position for the Three Months Ended June 30, 2024 Total Assets
Total assets at the end of the first quarter of the current fiscal year decreased by 0.610 billion yen from the end of the previous fiscal year to 833.780 billion yen. This was mainly due to a decrease of 17.022 billion yen in notes and accounts receivable - trade, and contract assets, despite increases of 6.086 billion yen in merchandise and finished goods, 5.516 billion yen in investment securities, and 3.312 billion yen in property, plant and equipment, respectively.
Total Liabilities
Total liabilities at the end of the fiscal quarter of the current fiscal year decreased by 10.561 billion yen from the end of the previous fiscal year to 450.899 billion yen. This was mainly due to decreases of 9.172 billion yen in notes and accounts payable - trade, 8.839 billion yen in income taxes payable, and 4.576 billion yen in other under current liabilities including equipment and electronically recorded obligations - operating, respectively, despite an increase of 11.487 billion yen in short-term borrowings.
Interest-bearing debt, including lease liabilities, etc., at the end of the first quarter increased by 14.510 billion yen to 269.031 billion yen from the end of the previous fiscal year.
Total Net Assets
Total net assets at the end of the first quarter of the current fiscal year increased by 9.950 billion yen from the end of the previous fiscal year to 382.880 billion yen. This was mainly due to increases of 4.245 billion yen in retained earnings, 2.650 billion yen in valuation difference on available-for-sale securities, and 2.461 billion yen in foreign currency translation adjustment, respectively.
(4) Consolidated Financial Results Forecasts
Although economic trends, fluctuations in LPG import prices, and other factors may affect our business performance, we have not changed our consolidated earnings forecast announced on May 13, 2024, for the first quarter of the current fiscal year.
- 3 -
Quarterly Consolidated Financial Statements and Notes
(1) Quarterly Consolidated Balance Sheets
(Million yen) | ||
As of March 31, 2024 | As of June 30, 2024 | |
Assets | ||
Current assets | ||
Cash and deposits | 33,937 | 30,344 |
Notes and accounts receivable - trade, and contract assets | 145,981 | 128,959 |
Electronically recorded monetary claims - operating | 26,852 | 27,582 |
Merchandise and finished goods | 58,510 | 64,596 |
Work in process | 5,204 | 7,354 |
Raw materials and supplies | 10,749 | 10,959 |
Other | 28,515 | 26,980 |
Allowance for doubtful accounts | (177) | (180) |
Total current assets | 309,573 | 296,597 |
Non-current assets | ||
Property, plant and equipment | ||
Land | 73,937 | 74,667 |
Other, net | 151,474 | 154,057 |
Total property, plant and equipment | 225,412 | 228,725 |
Intangible assets | ||
Goodwill | 19,569 | 20,227 |
Other | 16,932 | 18,573 |
Total intangible assets | 36,502 | 38,801 |
Investments and other assets | ||
Investment securities | 225,427 | 230,943 |
Other | 38,017 | 39,258 |
Allowance for doubtful accounts | (541) | (544) |
Total investments and other assets | 262,903 | 269,657 |
Total non-current assets | 524,817 | 537,183 |
Total assets | 834,391 | 833,780 |
- 4 -
(Million yen) | ||
As of March 31, 2024 | As of June 30, 2024 | |
Liabilities | ||
Current liabilities | ||
Notes and accounts payable - trade | 66,067 | 56,894 |
Electronically recorded obligations - operating | 34,935 | 31,439 |
Short-term borrowings | 129,161 | 140,649 |
Income taxes payable | 12,542 | 3,702 |
Contract liabilities | 7,201 | 7,722 |
Provision for bonuses | 6,765 | 4,209 |
Provision for loss on liquidation of subsidiaries and associates | 68 | 45 |
Other | 55,771 | 51,194 |
Total current liabilities | 312,513 | 295,858 |
Non-current liabilities | ||
Bonds payable | 40,000 | 40,000 |
Long-term borrowings | 70,100 | 73,170 |
Provision for retirement benefits for directors (and other officers) | 1,385 | 1,372 |
Retirement benefit liability | 5,884 | 5,994 |
Other | 31,576 | 34,503 |
Total non-current liabilities | 148,947 | 155,041 |
Total liabilities | 461,461 | 450,899 |
Net assets | ||
Shareholders' equity | ||
Share capital | 35,096 | 35,096 |
Capital surplus | 32,043 | 32,043 |
Retained earnings | 245,694 | 249,940 |
Treasury shares | (1,546) | (1,553) |
Total shareholders' equity | 311,288 | 315,528 |
Accumulated other comprehensive income | ||
Valuation difference on available-for-sale securities | 37,375 | 40,025 |
Deferred gains or losses on hedges | 4,317 | 4,798 |
Foreign currency translation adjustment | 8,201 | 10,663 |
Remeasurements of defined benefit plans | 1,145 | 1,134 |
Total accumulated other comprehensive income | 51,039 | 56,621 |
Non-controlling interests | 10,601 | 10,731 |
Total net assets | 372,930 | 382,880 |
Total liabilities and net assets | 834,391 | 833,780 |
- 5 -
- Quarterly Consolidated Statements of Income and Comprehensive Income Quarterly Consolidated Statements of Income (For the three months)
(Million yen) | ||
For the three months ended | For the three months ended | |
June 30, 2023 | June 30, 2024 | |
Net sales | 201,909 | 197,519 |
Cost of sales | 150,258 | 143,861 |
Gross profit | 51,651 | 53,657 |
Selling, general and administrative expenses | ||
Transportation costs | 7,131 | 7,666 |
Provision of allowance for doubtful accounts | 19 | (3) |
Salaries, allowances and bonuses | 10,497 | 11,142 |
Provision for bonuses | 2,900 | 3,002 |
Retirement benefit expenses | 440 | 499 |
Provision for retirement benefits for directors (and other officers) | 37 | 41 |
Other | 22,112 | 22,889 |
Total selling, general and administrative expenses | 43,138 | 45,238 |
Operating profit | 8,512 | 8,419 |
Non-operating income | ||
Interest income | 130 | 111 |
Dividend income | 628 | 772 |
Foreign exchange gains | 125 | - |
Share of profit of entities accounted for using equity method | 469 | 5,283 |
Subsidy income | 469 | 471 |
Other | 798 | 854 |
Total non-operating income | 2,622 | 7,493 |
Non-operating expenses | ||
Interest expenses | 414 | 607 |
Foreign exchange losses | - | 121 |
Other | 105 | 145 |
Total non-operating expenses | 520 | 874 |
Ordinary profit | 10,614 | 15,038 |
Extraordinary income | ||
Gain on sale of non-current assets | 950 | 183 |
Gain on receipt of donated non-current assets | 49 | - |
Gain on sale of investment securities | 0 | 1,580 |
Subsidy income | 0 | 2 |
Total extraordinary income | 1,000 | 1,767 |
Extraordinary losses | ||
Loss on sale of non-current assets | 312 | 10 |
Loss on retirement of non-current assets | 94 | 88 |
Loss on sale of investment securities | 0 | 1 |
Loss on valuation of investment securities | 1 | - |
Loss on tax purpose reduction entry of non-current assets | 43 | 2 |
Total extraordinary losses | 451 | 103 |
Profit before income taxes | 11,163 | 16,702 |
Income taxes | 3,719 | 4,804 |
Profit | 7,443 | 11,897 |
Profit attributable to non-controlling interests | 271 | 296 |
Profit attributable to owners of parent | 7,172 | 11,601 |
- 6 -
Quarterly Consolidated Statements of Comprehensive Income (For the three months)
(Million yen) | |||
For the three | For the three | ||
months ended | months ended | ||
June 30, 2023 | June 30, 2024 | ||
Profit | 7,443 | 11,897 | |
Other comprehensive income | |||
Valuation difference on available-for-sale securities | 6,420 | 2,636 | |
Deferred gains or losses on hedges | 1,369 | 362 | |
Foreign currency translation adjustment | 52 | 2,090 | |
Remeasurements of defined benefit plans, net of tax | (15) | 21 | |
Share of other comprehensive income of entities accounted for using equity method | 174 | 525 | |
Total other comprehensive income | 8,001 | 5,635 | |
Comprehensive income | 15,445 | 17,533 | |
Comprehensive income attributable to | |||
Comprehensive income attributable to owners of parent | 15,089 | 17,184 | |
Comprehensive income attributable to non-controlling interests | 356 | 349 |
- 7 -