Translation
Financial Results Explanatory Material
for 1Q FY2023
(Three months ended June 30, 2023)
TSE Prime Market, Securities code:6997
NIPPON CHEMI‐CON CORPORATION | August 2023 | 0 | ||||
1Q FY2023 - Results Overview
- Net sales (41.1 billion yen, +7% YoY, -2% QoQ)
- Automotive electronics market
Firm automotive demand and easing of the semiconductor shortage led to an increase in vehicle production volume. - Industrial equipment market
- Automotive electronics market
Translation
Demand targeted at plant automation and productivity improvement was robust, but concerns over deceleration of the global economy from the second half of last fiscal year and other factors led to a correction phase.
-
ICT market
The deceleration in demand for PCs and servers and inventory adjustments continued.
-
ICT market
- Operating income (2.4 billion yen, -1.4% YoY, -38.5% QoQ)
- We continued to address the surge in the price of materials and electricity due to the prolonged conflict between Russia and Ukraine and rising energy costs by implementing structural reforms to reduce costs and revising selling prices.
- Profit attributable to owners of parent
- Recognition of an extraordinary loss for the approx. 18.1-billion-yen settlement of a U.S. civil lawsuit with Avnet, Inc. and three other companies resulted in a loss attributable to owners of parent of 13.8 billion yen.
NIPPON CHEMI‐CON CORPORATION | August 2023 | 1 | ||||
1Q FY2023 - Consolidated Results (YoY, QoQ)
Translation
YoY: Higher net sales, lower operating income | ||||||||||
QoQ: Lower net sales and operating income | (Million yen, %) | |||||||||
FY2022 | FY2023 | YoY | QoQ | |||||||
1Q | 4Q | 1Q | Change | % Change | Change | % Change | ||||
Net sales | 38,439 | 41,982 | 41,137 | +2,698 | +7.0% | (845) | (2.0%) | |||
Operating income | 2,447 | 3,926 | 2,413 | (34) | (1.4%) | (1,513) | (38.5%) | |||
Ratio to net sales | 6.4% | 9.4% | 5.9% | (0.5 pt) | - | (3.5 pt) | - | |||
Profit/loss attributable to | (2,281) | 220 | (13,827) | (11,546) | - | (14,047) | - | |||
owners of parent | ||||||||||
Ratio to net sales | (5.9%) | 0.5% | (33.6%) | (27.7 pt) | - | (34.1 pt) | - | |||
Capital investment | 1,585 | 2,569 | 1,501 | (84) | (5.3%) | (1,068) | (41.6) | |||
Depreciation and amortization | 1,458 | 1,432 | 1,532 | +74 | +5.1% | +100 | +6.9 | |||
R&D expenses | 1,084 | 1,135 | 1,118 | +34 | +3.1% | (17) | (1.5%) | |||
Avg. exchange rate: USD (yen) | 129.57 | 132.34 | 137.37 | 6.0% weaker yen | 3.8% weaker yen | |||||
EUR (yen) | 138.12 | 142.10 | 149.47 | 8.2% weaker yen | 5.2% weaker yen | |||||
*The approx. 18.1-billion-yen settlement for the U.S. civil lawsuit has been posted as extraordinary loss for 1Q FY2023.
NIPPON CHEMI‐CON CORPORATION | August 2023 | 2 | ||||
1Q FY2023 - Operating Income (YoY)
Translation
(Unit: Billion yen)
Surge in price of materials, electricity, etc. roughly equal to positive
effect from cost reductions, weakening yen, selling price revisions, etc.
NIPPON CHEMI‐CON CORPORATION | August 2023 | 3 | ||||
1Q FY2023 - Operating Income (QoQ)
Translation
(Unit: Billion yen)
Decrease in net sales and SG&A, material, electricity, and other
expenses exceeded the positive effect from the weakening yen, selling
price revisions, and cost reductions.
NIPPON CHEMI‐CON CORPORATION | August 2023 | 4 | ||||