NOK CORPORATION and Consolidated Subsidiaries
Consolidated Financial Results for the Three Months Ended June 30, 2023 (Japanese GAAP)
Date: August 2, 2023 | ||||||||||||||
Company name: | NOK Corporation | Listed on the Tokyo Stock Exchange | ||||||||||||
Securities code: | 7240 | URL https://www.nok.co.jp | ||||||||||||
Representative: | Masao Tsuru | Telephone: +81-3-5405-6372 | ||||||||||||
Representative Director, CEO | ||||||||||||||
Inquiries: | Kiyoshi Igarashi | |||||||||||||
Manager | ||||||||||||||
IR Department | ||||||||||||||
Quarterly securities report filing date (as planned): August 10, 2023 | ||||||||||||||
Dividend payable date (as planned): - | ||||||||||||||
Supplemental material of quarterly results: None | ||||||||||||||
Convening briefing of quarterly results: None | ||||||||||||||
(Fractions are rounded down to the nearest million yen.) | ||||||||||||||
1. Consolidated Financial Results for the First Three Months of Fiscal 2023 (April 1, 2023 to June 30, 2023) | ||||||||||||||
(1) Consolidated operating results | (Percentage figures represent year-on-year changes) | |||||||||||||
Net sales | Operating income | Ordinary income | Profit attributable to | |||||||||||
owners of parent | ||||||||||||||
million yen | % | million yen | % | million yen | % | million yen | % | |||||||
3 mos. ended Jun. 30, 2023 | 163,957 | 1.8 | (1,226) | - | 6,445 | 30.4 | 2,297 | 11.9 | ||||||
3 mos. ended Jun. 30, 2022 | 161,031 | 2.7 | (1,394) | - | 4,941 | (54.6) | 2,053 | (70.0) | ||||||
Note: Comprehensive income: 31,617 million yen, 76.8 % (as of June 30, 2023); 17,887 million yen, 88.9% (as of June 30, 2022)
Net income per share | Diluted net income per share | ||||
Yen | Yen | ||||
3 mos. ended Jun. 30, 2023 | 13.56 | - | |||
3 mos. ended Jun. 30, 2022 | 11.87 | - | |||
(2) Consolidated financial position | |||||
Total assets | Net assets | Capital adequacy ratio | Book-value Per Share | ||
million yen | million yen | % | Yen | ||
Jun. 30, 2023 | 904,987 | 599,844 | 60.1 | 3,204.97 | |
Mar. 31, 2023 | 862,750 | 577,346 | 60.6 | 3,082.93 | |
Reference: Owner's equity: 543,484 million yen (as of June 30, 2023); 522,426 million yen (as of March 31, 2023)
2. Dividends
Dividend per share | ||||||||||||||||
First quarter | Second quarter | Third quarter | Fiscal year end | Total | ||||||||||||
yen | yen | yen | yen | yen | ||||||||||||
FY 2022 | - | 25.00 | - | 50.00 | 75.00 | |||||||||||
FY 2023 | - | |||||||||||||||
FY 2023 (Forecast) | 37.50 | - | 37.50 | 75.00 | ||||||||||||
Note: Correction of dividend forecast from the most recent dividend forecast: None | ||||||||||||||||
3. Consolidated Forecast for Fiscal 2023 (April 1, 2023 to March 31, 2024) | ||||||||||||||||
(Percentage figures represent year-on-year changes) | ||||||||||||||||
Net sales | Operating income | Ordinary income | Profit attributable to | Net income per share | ||||||||||||
owners of parent | ||||||||||||||||
million yen | % | million yen | % | million yen | % | million yen | % | yen | ||||||||
Half year | 341,000 | (3.3) | 2,400 | (60.8) | 8,800 | (46.9) | 2,300 | (77.4) | 13.57 | |||||||
Full year | 735,200 | 3.6 | 23,500 | 52.8 | 34,200 | 28.8 | 18,800 | 41.1 | 110.92 |
Note: Correction of financial forecast from the most recent financial forecast: Yes
*Notes
- Material changes in subsidiaries during this period (Changes in scope of consolidations resulting from change in subsidiaries): None
- Applying of specific accounting of the consolidated quarterly financial statements: Yes
(Note) For details, please refer to "(3) Notes Concerning Consolidated Quarterly Financial Statements" on page 7 of the attached document.
(3) Changes in accounting policies and accounting estimates, retrospective restatement | ||
(1) | Changes in accounting policies based on revisions | : None |
of accounting standard | ||
(2) | Changes in accounting policies other than ones | : None |
based on revisions of accounting standard | ||
(3) | Changes in accounting estimates | : None |
(4) | Retrospective restatement | : None |
(4) Number of issued and outstanding shares (common stock) | |||||
(1) | Number of issued and outstanding shares at the end of each | Jun. 30, | 173,138,537 | Mar. 31, 2022 | 173,138,537 |
period (including treasury stock) | 2023 | shares | shares | ||
(2) | Number of shares of treasury stock at the end of each period | Jun. 30, 2023 | 3,563,022 | Mar. 31, 2022 | 3,680,752 |
shares | shares | ||||
(3) Average number of shares (year to date) | 3 mos. ended | 169,490,511 | 3 mos. ended | 172,966,870 | |
Jun. 30, 2023 | shares | Jun. 30, 2022 | shares | ||
*This summary of quarterly financial results is not subject to quarterly review procedures of a certified public accountant or audit firm.
* Proper use of the forecasts for financial results, and other important matters:
Forward-looking statements such as forecasts of future financial results and other descriptions concerning our future business included in this document are based on currently available information and certain assumptions that we consider to be reasonable, and no representation or warranty is given with regard to the realization of such forecasts, etc. Actual financial results may differ significantly due to various factors. For assumptions, etc., used as the basis for the forecasts for financial results, please see "Explanation of Consolidated Financial Forecasts and Other Prospects for the Future" on page 2 of the attached document.
NOK Corporation (7240): Summary of Consolidated Financial Results for the Three Months Ended June 30, 2023
○Table of Contents of Attached Document | ||
1. Qualitative Information on the Consolidated Operating Results for the Three Months Ended June 30, 2023 | 2 | |
(1) | Explanation of Financial Position and Operating Results | 2 |
(2) | Explanation of Consolidated Financial Forecasts and Other Prospects for the Future | 2 |
2. Consolidated Quarterly Financial Statements and Principal Notes | 3 | |
(1) | Consolidated Quarterly Balance Sheet | 3 |
(2) | Consolidated Quarterly Income Statement and Consolidated Quarterly Comprehensive Income Statement | 5 |
Consolidated Quarterly Income Statement | ||
Three Months Ended June 30, 2023 | 5 | |
Consolidated Quarterly Comprehensive Income Statement | ||
Three Months Ended June 30, 2023 | 6 | |
(3) | Notes Concerning Consolidated Quarterly Financial Statements | 7 |
(Notes Concerning the Going Concern Assumption) | 7 | |
(Notes on Significant Changes in the Amount of Shareholders' Equity) | 7 | |
(Accounting Treatments Specific to the Preparation of Consolidated Quarterly Financial Statements) | 7 | |
(Segment Information) | 7 | |
(Significant Events After the Reporting Period) | 8 |
- 1 -
NOK Corporation (7240): Summary of Consolidated Financial Results for the Three Months Ended June 30, 2023
1. Qualitative Information on the Consolidated Operating Results for the Three Months Ended June 30, 2023
(1) Explanation of Financial Position and Operating Results
In the economic environment surrounding Japan during the first three months of the current consolidated fiscal year, restrictions on behavior related to COVID-19 were eased and the normalization of economic activities has progressed. However, the outlook remains uncertain due to the risk of an economic downturn caused by soaring prices for raw materials and energy, and inflation.
In the automobile industry, the effects of supply shortage of semiconductors and other components are gradually dissipating, and the number of vehicles produced has increased, mainly in Japan.
In the electronics industry, demand for smartphones declined due to the prolonged replacement cycle by end-users. As for hard disk drives, demand declined as the market was still recovering from the slump in the previous fiscal year.
Under these circumstances, the operating results of the Group by business segment were as follows:
In the seal business, automobile production, which had fallen due to the supply shortage of semiconductors and other components, recovered mainly in Japan. This led to increased sales. For general industrial machinery applications, sales declined in industries such as construction machinery, machine tools, and robots, due to the effect of the economic slowdown in China.
As a result, net sales totaled 87,231 million yen (up 7.7% year on year). Operating income amounted to 3,444 million yen (up 8.9% year on year) mainly due to increased sales.
In the electronic product business, sales for automobile applications, mainly for automotive batteries, increased due to the recovery from the lockdowns in China last year. On the other hand, sales for smartphones declined due to a prolonged replacement cycle, and sales for hard disk drives also declined due to delayed recovery in demand.
As a result, net sales totaled 69,965 million yen (down 4.2% year on year). Operating loss declined to 4,759 million yen (compared to an operating loss of 4,907 million yen in the same period of the previous fiscal year) due to a suppression of personnel expenses, despite the impact of a decline in sales.
In the other businesses, overseas sales of products for office equipment declined, and demand for special lubricants also declined.
As a result, net sales totaled 6,761 million yen (down 3.1% year on year). Operating income came to 97 million yen (down 72.0% year on year).
In summary, the Group posted the following operating results for the first three months of the current consolidated fiscal year: Net sales totaled 163,957 million yen (up 1.8% year on year); operating loss was 1,226 million yen (compared to an operating loss of 1,394 million yen in the same period of the previous fiscal year); ordinary income ended at 6,445 million yen (up 30.4% year on year), resulting in 2,297 million yen in profit attributable to owners of parent (up 11.9% year on year).
Total assets as of June 30, 2023 stood at 904,987 million yen, an increase of 42,236 million yen compared with March 31, 2023. This was mainly attributable to an increase in cash, deposits, and inventories, and an increase in investment securities due to an increase in the market value of shares held by the Company.
Total liabilities as of June 30, 2023 amounted to 305,143 million yen, an increase of 19,738 million yen compared with March 31, 2023. This was mainly due to an increases in accounts-payable trade and deferred tax liabilities, despite a decline in provision for bonuses.
Net assets totaled 599,844 million yen, an increase of 22,497 million yen compared with March 31, 2023. Consequently, the ratio of shareholders' equity to total assets stood at 60.1%. This mainly reflected an increase in the valuation difference on available-for-sale securities due to an increase in the market value of foreign currency translation adjustment and stock holdings as a result of exchange rate fluctuations, despite the payment of dividends.
(2) Explanation of Consolidated Financial Forecasts and Other Prospects for the Future
As a result of a review of the consolidated financial forecasts for the first half of the financial year ending March 31, 2024, our forecasts for net sales, operating income, and ordinary income have been revised downward from the previously announced forecasts. Profit attributable to owners of parent has been revised upward from the previously announced forecasts. In regard to the full-year earnings forecasts, the earnings forecasts for the second half remains unchanged, and only the revised earnings forecasts for the first half has been reflected.
- 2 -
NOK Corporation (7240): Summary of Consolidated Financial Results for the Three Months Ended June 30, 2023
2. Consolidated Quarterly Financial Statements and Principal Notes
- Consolidated Quarterly Balance Sheet
(million yen) | |||
FY 2022 | 1Q FY 2023 | ||
(as of March 31, 2023) | (as of June 30, 2023) | ||
Assets | |||
Current assets | |||
Cash and deposits | 104,690 | 109,991 | |
Notes and accounts receivable-trade | 141,172 | 143,980 | |
Electronically recorded monetary claims | 19,760 | 20,516 | |
Inventories | 119,597 | 125,517 | |
Other | 16,065 | 13,556 | |
Allowance for doubtful accounts | (138) | (154) | |
Total current assets | 401,146 | 413,408 | |
Noncurrent assets | |||
Property, plant and equipment | |||
Buildings and structures, net | 95,055 | 96,665 | |
Machinery, equipment and vehicles, net | 107,778 | 111,568 | |
Other, net | 49,804 | 49,085 | |
Total property, plant and equipment | 252,638 | 257,320 | |
Intangible assets | 3,958 | 4,107 | |
Investments and other assets | |||
Investment securities | 163,316 | 184,768 | |
Net defined benefit asset | 4,574 | 4,717 | |
Other | 37,243 | 41,000 | |
Allowance for doubtful accounts | (128) | (334) | |
Total investments and other assets | 205,006 | 230,151 | |
Total noncurrent assets | 461,603 | 491,579 | |
Total assets | 862,750 | 904,987 |
- 3 -