Mitsubishi Steel Mfg.co., Ltd.TSE: 5632

Financial Results for the Fiscal Year Ended March 2023 and Mid-term Business Plan

May 17, 2023 at 10:00 PM UTC · Issued by Mitsubishi Steel Mfg.co., Ltd.

May 18, 2023

Financial Results for the Fiscal Year Ended March 2023

May 18, 2023

I. FY2022 Results

II. Full-year Forecasts for FY2023

Full-Year performance results

I. FY2022 Results

Net sales grew YoY. Contributing factors included progress in passing on higher raw material costs to selling prices and the foreign exchange consequences of the weak yen.
Operating income was down YoY, due mainly to the following factors:

・Special Steel Bars business: Lower sales volumes in Japan

・Springs business: Higher procurement costs due to the weak yen

Ordinary income and net income were down YoY due to decrease in operating income and various other factors, including foreign exchange revaluation losses and lower gains on sales of assets than recorded in the previous period.
Both sales and profits fell short of previous forecasts (revised upward February 3) for various reasons, including lower than expected demand for construction machinery and automotive applications. (See p. 10 for more information.)

					(JPY100M)

	FY2021		FY2022
	Previous		Difference between
	results	Results	YoY change
	forecast*	previous forecast
			and results
Net sales	1,463	1,750	1,705	△45	242

Operating income	63	65	55	△10	△8

Ordinary income	58	45	37	△8	△21

Net income attributable	41	27	22	△5	△19
to owners of parent
company

		3		* Figures announced February 3, 2023

Factors contributing to changes in net sales and operating income (YoY comparison)

I. FY2022 Results

Net sales

(JPY100M)

			Foreign	Consolidation
		Increased	adjustments, etc.
Decreased	Selling prices	exchange
sales under
sales		gains/losses
	contract*1

volumes

FY2021 results	FY2022 results
Operating income	*1: Sales under contract to Nippon Steel Corporation

(JPY100M)

Energy and	Includes:
・Inventory valuation: +15
freight costs	・Higher Springs business procurement costs

	Decreased				due to weak yen: △7
	sales	Raw material			R&D costs,
	volumes	prices
			depreciation
		(market	Raw

		conditions)
	Selling	material
		Production
		prices	Costs of
	prices		Inventory
		(carryovers,	costs	shipping raw
			valuation,
			etc.)*2		materials to
FY2021	Not recovered in				North	etc.	FY2022
results	previous period				America*3		results

*2: Difference between the cost of raw material inventories at the end of the previous year and current price of raw materials. While during FY2021 use of raw material inventories stockpiled before the sharp price increases had positive effects of JPY2.1B, there were no such effects in FY2022, and the difference had a negative effect on profits as a result.

*3: Temporary freight costs incurred due to emergency responses to the bankruptcy of a materials supplier's source of funding in FY2021

Company analysis