Nippon Coke & Engineering Co., Ltd.TSE: 3315

Consolidatd Financial Results fot the Nine Months Ended December 31,2024

Feb 17, 2025 at 7:23 AM UTC · Issued by Nippon Coke & Engineering Co., Ltd.

DISCLAIMER: This English document has been translated from 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.

February 7, 2025

	Consolidated Financial Results
	for the Nine Months Ended December 31, 2024
	(Under Japanese GAAP)
Company name:	Nippon Coke & Engineering Co., Ltd.
Listing:	Tokyo Stock Exchange
Securities code:	3315
URL:	https://www.n-coke.com/en/index.html
Representative:	MATSUOKA Hiroaki, President and Representative Director
Inquiries:	OKUZONO Takayuki, General Manager, Personnel and General Affairs Department
Telephone:	+81-3-5560-1311

Scheduled date of dividend payment commencement:-

Preparation of semiannual financial report supplemental explanatory materials: Yes

Holding of financial results briefing:

None

(Figures are rounded down to the nearest million yen)

1. Consolidated financial results for the nine months ended December 31, 2024 (from April 1, 2024 to December 31, 2024)

Consolidated Business Results (cumulative)

					(Percentage figures indicate year-on-year changes.)
			Operating profit		Ordinary profit	Profit(loss)
	Net sales		attributable to
	(loss)			(loss)
						owners of parent

Nine months ended	Millions of Yen	%	Millions of Yen		%	Millions of Yen	%	Millions of Yen	%
December 31, 2024	77,918	(26.6)	(4,362)	-		(5,365)	-	(4,756)	-
December 31, 2023	106,156	(20.6)	2,469	-		2,038	-	1,003	-

Note: Comprehensive income:	For the nine months ended December 31, 2024	(4,823) million yen (-%)
	For the nine months ended December 31, 2023	1,200 million yen (-%)
	Basic earnings per share	Diluted earnings per share
Nine months ended	Yen	Yen
December 31, 2024	(16.34)	-
December 31, 2023	3.45	-

Consolidated Financial Position

	Total assets	Net assets	Equity ratio
As of	Millions of Yen	Millions of Yen	%
December 31, 2024	145,622	50,658	34.8
March 31, 2024	140,713	56,355	40.0
(Reference) Shareholders' equity:	As of December 31, 2024	50,658 million yen
	As of March 31, 2024	56,355 million yen

2. Cash dividends

	End of the
	first quarter
	Yen
Fiscal year ended March 31, 2024	-
Fiscal year ending March 31, 2025	-
Fiscal year ending March 31, 2025
(forecast)

Annual dividends per share
End of the	End of the	Fiscal	Total
second quarter	third quarter	year-end

Yen	Yen	Yen	Yen
0.00	-	3.00	3.00
0.00	-
		-	-

Note: Revisions to the most recently announced dividend forecasts: None

Note: The year-end dividend forecast for the fiscal year ending March 31, 2025 is yet to be decided. The company intends to disclose the forecast dividend amount promptly when it is able to do so.

3. Forecast of consolidated financial results for the fiscal year ending March 31, 2025 (from April 1, 2024 to March 31, 2025)

	Net sales		Operating profit	Ordinary profit	Profit attributable to	Basic earnings
		owners of parent	per share

	Millions of Yen	%	Millions of Yen		% Millions of Yen	%	Millions of Yen	%	Yen
Full Fiscal Year	-	-	-	-	-	-	-	-	-

Note: Revisions to the most recently announced performance forecasts: Yes

Please refer to the "Notice Concerning Revisions to Full-Year Results Forecasts" released today (February 7, 2025) for the revision of the consolidated financial results forecasts.

Cautionary Notes

(1) Significant changes in the scope of consolidation during the Period: None

Newly included: -

Excluded: -

Application of special accounting practices for the preparation of quarterly consolidated financial statements: None
Changes in accounting policies, changes in accounting estimates, and restatement
1. Changes in accounting policies in accordance with revisions to accounting standards and other regulations: Yes
2. Changes in accounting principles other than (a) above: None
3. Changes in accounting estimates: None
4. Restatements: None
Number of issued shares (Common shares)
1. Number of issued shares as of the end of the period (including treasury stock)

As of December 31, 2024	302,349,449	shares
As of March 31, 2024	302,349,449	shares
(b) Number of shares of treasury stock as of the end of the period
As of December 31, 2024	11,325,593	shares
As of March 31, 2024	11,324,359	shares
(c) Average number of shares for the period (fiscal year-to-date)
Nine months ended December 31, 2024	291,024,518	shares
Nine months ended December 31, 2023	291,025,960	shares

Review of the Japanese-language originals of the attached consolidated quarterly financial statements by certified public accountants or an audit firm: None
Proper use of earnings forecasts, and other special matters

Forward-looking statements including performance forecasts contained in this document are based on certain reasonable presumptions and beliefs in light of information currently available to management and should not be interpreted as a promise or guarantee by the Company that information or quantitative data will be achieved. Moreover, readers are advised that actual results may differ materially from forecasts due to a variety of factors.

1. Summary of Business Results

(1) Business Results for the Period under Review

During the nine months (April 1, 2024, to December 31, 2024) ended of the fiscal year ending March 31, 2025, expectations persisted for a continued moderate recovery in the Japanese economy, driven by improvements in employment and income conditions. On the other hand, uncertainties persisted due to volatile raw material prices and risks associated with economic slowdowns outside Japan driven by concerns about the Chinese economic outlook, the effects of sustained high interest rates in the U.S. and Europe, as well as U.S. policy developments.

Under these circumstances, in the mainstay Coke Business, the Nippon Coke & Engineering Group has been actively working on equipment renewal for the 2A coke oven battery, one of the four coke oven batteries, as well as the restoration of two existing coke oven batteries that have begun to show signs of aging. The renewal of the 2A coke oven was completed in September 2024, and operations began. However, the aging coke oven batteries were unable to return to expected production levels, resulting in coke production of 716,000 tonnes (a decrease of 162,000 tonnes compared to the corresponding period of the previous fiscal year). The accompanying increase in manufacturing costs led to a substantial decline in the Group's overall performance.

As a result of these factors, the Nippon Coke & Engineering Group recorded a decrease of 28,237 million yen in consolidated net sales for the first three quarters of the fiscal year ending March 31, 2025, compared with the corresponding period of the previous fiscal year, to 77,918 million yen. On the profit front, the Group recorded a consolidated operating loss of 4,362 million yen, compared to operating profit of 2,469 million yen for the corresponding period of the previous fiscal year. The Group recorded a consolidated ordinary loss of 5,365 million yen, compared to ordinary profit of 2,038 million yen for the corresponding period of the previous fiscal year.

Net loss attributable to owners of the parent was 4,756 million yen, compared to net profit attributable to owners of the parent of 1,003 million yen for the corresponding period of the previous fiscal year.

Segment Information

Net sales in the Coke Business fell 18,240 million yen year on year to 47,751 million yen due to the aforementioned reasons and other factors. An operating loss of 7,024 million yen was recorded, compared to an operating loss of 677 million yen for the corresponding period of the previous fiscal year.

Net sales in the Fuel and Resource Recycling Business declined 10,176 million yen year on year to 20,888 million yen. Operating profit decreased 696 million yen year on year to 2,251 million yen.

In the Comprehensive Engineering Business, net sales increased 237 million yen year on year to 6,637 million yen. Operating profit rose 226 million yen year on year to 1,264 million yen.

In the Other Businesses segment, net sales were down 58 million yen year on year to 2,640 million yen. Operating profit rose 12 million yen year on year to 401 million yen.

(2) Financial Position for the Period under Review

Total assets as of December 31, 2024 stood at 145,622 million yen, 4,909 million yen higher than the end of the previous fiscal year. The main changes were in machinery, equipment and vehicles, which were up 15,954 million yen; deferred tax assets, which rose 1,385 million yen; construction in progress, which was down 6,817 million yen; and raw materials and supplies, which shrank by 5,966 million yen.

Total liabilities as of December 31, 2024 stood at 94,964 million yen, 10,605 million yen higher than at the previous fiscal year-end. The main changes were in long-term loans payable, which were up 27,888

million yen; other current liabilities, which rose 873 million yen; short-term loans payable, which were down 17,760 million yen; and income taxes payable, which decreased by 545 million yen.

Total net assets as of December 31, 2024 stood at 50,658 million yen, down 5,696 million yen compared with the end of the previous fiscal year, mainly due to a decrease in retained earnings.

(3) Discussion of Forecast Data, Including Consolidated Performance Forecasts

The consolidated earnings forecast for the fiscal year ending March 2025 has been revised to reflect the impact of the fire that occurred on December 24, 2024, which was previously reported. Please refer to the "Notice Concerning Revisions to Full-Year Financial Forecasts" released on February 7, 2025 for the details.

Quarterly Consolidated Balance Sheet

		(Millions of Yen)
	As of March 31, 2024	As of December 31, 2024
Assets
Current assets
Cash and deposits	6,164	4,792
Notes and accounts receivable-trade, and	14,768	14,724
contract assets

Merchandise and finished goods	12,783	13,180
Work in process	1,381	2,014
Raw materials and supplies	28,573	22,606
Other	741	1,365
Allowance for doubtful accounts	(9)	-
Total current assets	64,404	58,683
Noncurrent assets
Property, plant and equipment
Buildings and structures	24,807	25,391
Accumulated depreciation	(16,576)	(17,078)
Buildings and structures, net	8,231	8,313
Machinery, equipment and vehicles	99,883	118,604
Accumulated depreciation	(81,505)	(84,272)
Machinery, equipment and vehicles,	18,378	34,332
net

Land	33,590	33,579
Construction in progress	9,445	2,627
Other	2,350	2,626
Accumulated depreciation	(1,643)	(1,782)
Other, net	706	843
Total property, plant and equipment	70,352	79,696
Intangible fixed assets
Other	424	457
Total intangible fixed assets	424	457
Investments and other assets
Investment securities	1,194	1,085
Deferred tax assets	3,346	4,732
Other	1,032	1,008
Allowance for doubtful accounts	(41)	(41)
Total investments and other assets	5,532	6,784
Total noncurrent assets	76,309	86,939
Total assets	140,713	145,622

		(Millions of Yen)
	As of March 31, 2024	As of December 31, 2024
Liabilities
Current liabilities
Notes and accounts payable-trade	20,704	21,258
Short-term loans payable	37,437	19,676
Income taxes payable	603	58
Provision for bonuses	728	384
Provision for loss on liquidation of	341	345
subsidiaries and associates

Provision for loss on order received	15	35
Other	8,366	9,240
Total current liabilities	68,198	50,999
Noncurrent liabilities
Long-term loans payable	8,495	36,384
Net defined benefit liability	3,034	3,092
Provision for directors' retirement benefits	56	45
Provision for environmental measures	3,514	3,514
Provision for loss on liquidation of	6	0
subsidiaries and associates

Other	1,052	927
Total noncurrent liabilities	16,159	43,964
Total liabilities	84,358	94,964
Net assets
Shareholders' equity
Capital stock	7,000	7,000
Capital surplus	1,750	1,750
Retained earnings	48,551	42,921
Treasury stock	(1,209)	(1,209)
Total shareholders' equity	56,091	50,462
Accumulated other comprehensive income
Valuation difference on available-for-sale	404	320
securities

Deferred gains or losses on hedges	(1)	(7)
Remeasurements of defined benefit plans	(138)	(116)
Total accumulated other comprehensive	264	196
income

Total net assets	56,355	50,658
Total liabilities and net assets	140,713	145,622

Quarterly Consolidated Statement of Income

		(Millions of Yen)
	Nine months ended	Nine months ended
	December 31, 2023	December 31, 2024
Sales	106,156	77,918
Cost of sales	98,980	77,369
Gross profit	7,176	548
Selling, general and administrative expenses	4,706	4,911
Operating profit (loss)	2,469	(4,362)
Non-operating income
Interest receivable	14	11
Dividend receivable	24	25
Other	104	39
Total non-operating income	143	76
Non-operating expenses
Interest expenses	227	374
Expenses related to loans payable	－	256
Other	347	448
Total non-operating expenses	575	1,079
Ordinary profit (loss)	2,038	(5,365)
Extraordinary profit
Gain on sales of noncurrent assets	231	26
Other	5	5
Total extraordinary profit	236	32
Extraordinary loss
Loss on retirement of noncurrent assets	828	589
Other	31	15
Total extraordinary loss	859	605
Net profit (loss) before taxes	1,415	(5,938)
Income taxes-current	212	173
Income taxes-deferred	198	(1,356)
Total income taxes	411	(1,182)
Profit (loss)	1,003	(4,756)
Profit (loss) attributable to owners of the parent	1,003	(4,756)

Quarterly Consolidated Statement of Comprehensive Income

(Millions of Yen)

Profit (loss)

Other comprehensive income

Valuation difference on available-for-sale securities

Deferred gains or losses on hedges Adjustment amounts of retirement benefits Total other comprehensive income

Comprehensive income (Breakdown)

Comprehensive income attributable to owners of parent

Comprehensive income attributable to non- controlling interests

Nine months ended	Nine months ended
December 31 ,2023	December 31, 2024
1,003	(4,756)
169	(83)
5	(5)
21	21
196	(67)
1,200	(4,823)
1,200	(4,823)
-	-