NOK CORPORATION and Consolidated Subsidiaries
Consolidated Semi-Annual Financial Results Ended September 30, 2024 (Japanese GAAP)
November 7, 2024
Company name: | NOK Corporation (URL https://www.nok.co.jp) |
Securities code: | 7240 (Tokyo Stock Exchange) |
Representative: | Masao Tsuru |
Representative Director, Group CEO | |
Inquiries: | Tel: +81-3-5405-6372 |
Shin Okubo, Head, Investor Relations |
Semi-annual securities report filing date (as planned): November 13, 2024
Dividend payable date (as planned): December 3, 2024
Supplemental material of semi-annual results: None
Convening briefing of semi-annual results: Yes
(Fractions are rounded down to the nearest million yen)
1. Consolidated Financial Results for the Six Months of FY2024 (Q2/FY2024: April 1, 2024 to September 30, 2024)
(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 | % | ||
Q2/FY2024 | 393,666 | 11.1 | 19,084 | 292.4 | 21,117 | 28.8 | 13,604 | 11.7 | |
Q2/FY2023 | 354,239 | 0.4 | 4,863 | (20.5) | 16,389 | (1.0) | 12,181 | 19.6 |
Note: Comprehensive income: (2,365) million yen, - % (Q2/FY2024); 46,601 million yen, 72.8 % (Q2/FY2023)
Net income per share | Diluted net income | |||
per share | ||||
yen | yen | |||
Q2/FY2024 | 82.61 | - | ||
Q2/FY2023 | 71.84 | - | ||
(2) Consolidated financial position | ||||
Total assets | Net assets | Capital adequacy ratio | Book-value Per Share | |
million yen | million yen | % | yen | |
End of Q2/FY2024 | 922,966 | 621,394 | 62.3 | 3,488.13 |
End of FY2023 | 952,379 | 639,001 | 61.5 | 3,561.00 |
Reference: Owner’s equity: 574,955 million yen (end of Q2/FY2024); 586,055 million yen (end of FY2023)
2. Dividends
Dividend per share | ||||||||||||||||||
First quarter | Second quarter | Third quarter | Fiscal year end | Total | ||||||||||||||
yen | yen | yen | yen | yen | ||||||||||||||
FY2023 | - | 37.50 | - | 50.00 | 87.50 | |||||||||||||
FY2024 | - | 50.00 | ||||||||||||||||
FY2024 (Forecast) | - | 50.00 | 100.00 | |||||||||||||||
Note: Revision of dividend forecast from the most recent dividend forecast: None | ||||||||||||||||||
3. Consolidated Forecast for FY2024 (April 1, 2024 to March 31, 2025) | (Percentage figures represent year-on-year changes) | |||||||||||||||||
Net sales | Operating income | Ordinary income | Profit attributable to | Net income per | ||||||||||||||
owners of parent | share | |||||||||||||||||
million yen | % | million yen | % | million yen | % | million yen | % | yen | ||||||||||
Full year | 745,500 | (0.7) | 31,900 | 39.2 | 38,700 | (3.9) | 22,800 | (27.9) | 138.45 | |||||||||
Note: Revision 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 semi-annual financial statements: Yes
(Note) For details, please refer to “(3) Notes Concerning Consolidated Semi-annual Financial Statements” in the attached document.
(3) Changes in accounting policies and accounting estimates, retrospective restatement
- Changes in accounting policies based on revisions : Yes 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 |
- Number of issued and outstanding shares (common stock)
- Number of issued and outstanding shares at the end of each period (including treasury stock)
- Number of shares of treasury stock at the end of each period
- Average number of shares (year to date)
Q2/FY2024 | 173,138,537 | FY2023 | 173,138,537 |
Q2/FY2024 | 8,306,372 | FY2023 | 8,562,394 |
Q2/FY2024 | 164,678,707 | Q2/FY2023 | 169,571,836 |
*Consolidated semi-annual financial results reports are exempt from review o by certified public accountants or an 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” in the attached document.
NOK Corporation (7240): Summary of Consolidated Financial Results for the Six Months Ended September 30, 2024
○Table of Contents of Attached Document | ||
1. Qualitative Information on the Consolidated Semi-annual Operating Results Ended September 30, 2024 | 2 | |
(1) | Financial Position and Operating Results | 2 |
(2) | Consolidated Financial Forecasts and Other Prospects for the Future | 2 |
2. Consolidated Semi-annual Financial Statements and Principal Notes | 3 | |
(1) | Consolidated Semi-annual Balance Sheet | 3 |
(2) | Consolidated Semi-annual Income Statement and Consolidated Semi-annual Comprehensive Income Statement 5 | |
Consolidated Semi-annual Income Statement | 5 | |
Consolidated Semi-annual Comprehensive Income Statement | 6 | |
(3) | Notes Concerning Consolidated Semi-annual Financial Statements | 7 |
(Notes on Changes in accounting policies) | 7 | |
(Accounting Treatments Specific to the Preparation of Consolidated Semi-annual Financial Statements) | 7 | |
(Segment Information) | 8 | |
(Notes on Significant Changes in the Amount of Shareholders’ Equity) | 8 | |
(Notes Concerning the Going Concern Assumption) | 8 |
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NOK Corporation (7240): Summary of Consolidated Financial Results for the Six Months Ended September 30, 2024
1. Qualitative Information on the Consolidated Operating Results for the Six Months Ended September 30, 2024
- Financial Position and Operating Results
For the first half of the current fiscal year, the Group posted the following operating results: Net sales totaled 393.6 billion yen (up 11.1% year on year); operating income was 19.0 billion yen (up 292.4% year on year); ordinary income ended at
21.1 billion yen (up 28.8% year on year), resulting in 13.6 billion yen in profit attributable to owners of the parent (up 11.7% year on year).
Compared to the same period of the previous fiscal year, sales for the seal business trended sideways while sales for the electronic product business increased. At the operating income stage, operating income increased for both the seal business and the electronic product business. Regarding ordinary income and net income, year-on-year increases were relatively smaller compared with that for operating income due to recording foreign exchange gains and a gain on sales of investment securities in the same period of the previous fiscal year, despite recording foreign exchange losses in this period.
The business overview for each business segment is as follows.
Net sales amounted to 179.1 billion yen (down 0.2% year on year) and operating income was 11.2 billion yen (up 34.9% year on year).
For automobile applications, the production volume of Japanese automobiles, which is a key indicator of sales, decreased compared to the same period of the previous fiscal year. In addition to the decrease in production volume in Japan, in overseas regions, sales of Japanese automobiles were sluggish in the China market, where demand is growing for electric vehicles, and in the ASEAN region, such as the ongoing tightening of automobile loans in key market Thailand also impacted automobile demand. For general industrial machinery applications, sales were impacted by sluggish consumption and capital investment mainly due to inflation in Europe and America and the real estate downturn in China, which lead to a slump in demand. Net sales for the segment only decreased slightly due to the positive effect of the exchange rate.
On the other hand, operating income increased due to an improvement in variable costs such as raw material prices in addition to the promotion of price revision activities such as passing on selling prices.
Net sales amounted to 197.5 billion yen (up 22.5% year on year) and operating income was 6.5 million yen (compared to an operating loss of 3.5 billion yen in the same period of the previous fiscal year).
For smartphones, the timing of peak demand, which was in the third quarter of the previous fiscal year, occurred in the second quarter of the fiscal year, so sales increased year on year. Regarding sales for automobiles, sales increased for automotive batteries in electric vehicles for global automobile manufacturers, however sales for other purposes decreased. Sales for hard disk drives increased mainly due to a recovery in demand for data centers, which had been on a continued decline. In addition to these factors, there was also a positive effect due to the exchange rate, and net sales for the segment increased.
Due to the increase in net sales, profit greatly improved from an operating loss recorded in the same period of the previous fiscal year.
Net sales amounted to 17.0 billion yen (up 25.5% year on year) and operating income greatly increased from 0.1 billion yen in the previous fiscal year to 1.3 billion yen.
Total assets as of September 30, 2024 stood at 922.9 billion yen, a decrease of 29.4 billion yen compared with March 31, 2024. This was mainly attributable to a decrease in investment securities because of revaluation based on the value as of the reporting date. Total liabilities as of September 30, 2024 amounted to 301.5 billion yen, a decrease of 11.8 billion yen compared with March 31, 2024. This was mainly due to decreases in income taxes payable and deferred tax liabilities. Net assets totaled 621.3 billion yen, a decrease of 17.6 billion yen compared with March 31, 2024. Consequently, the ratio of shareholders’ equity to total assets stood at 62.3%. This mainly reflected a dividend payment and revaluation of investment securities as of the reporting date.
(2) Consolidated Financial Forecasts and Other Prospects for the Future
Regarding the full-year results forecasts for the fiscal year ending March 31, 2025, due to a review based on the business situation in the first half of the fiscal year, the forecasts for net sales, operating income, and ordinary income have been revised upward. Profit attributable to owners of the parent for the period has been slightly revised downward from the previously announced forecasts.
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NOK Corporation (7240): Summary of Consolidated Financial Results for the Six Months Ended September 30, 2024
2. Consolidated Semi-annual Financial Statements and Principal Notes
(1) Consolidated Semi-annual Balance Sheet | (million yen) | |||
FY2023 | Q2/FY2024 | |||
(as of March 31, 2024) | (as of September 30, 2024) | |||
Assets | ||||
Current assets | ||||
Cash and deposits | 136,913 | 139,305 | ||
Notes and accounts receivable-trade | 154,313 | 159,435 | ||
Electronically recorded monetary claims | 22,552 | 20,934 | ||
Inventories | 114,767 | 109,616 | ||
Other | 12,616 | 11,891 | ||
Allowance for doubtful accounts | (185) | (161) | ||
Total current assets | 440,977 | 441,021 | ||
Noncurrent assets | ||||
Property, plant and equipment | 92,810 | 90,513 | ||
Buildings and structures, net | ||||
Machinery, equipment and vehicles, net | 104,108 | 100,488 | ||
Other, net | 52,834 | 57,006 | ||
Total property, plant and equipment | 249,753 | 248,009 | ||
Intangible assets | 14,874 | 14,460 | ||
Investments and other assets | ||||
Investment securities | 188,007 | 166,777 | ||
Net defined benefit asset | 13,428 | 14,129 | ||
Other | 45,483 | 38,711 | ||
Allowance for doubtful accounts | (145) | (141) | ||
Total investments and other assets | 246,774 | 219,475 | ||
Total noncurrent assets | 511,401 | 481,945 | ||
Total assets | 952,379 | 922,966 |
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NOK Corporation (7240): Summary of Consolidated Financial Results for the Six Months Ended September 30, 2024
(million yen) | |||
FY2023 | Q2/FY2024 | ||
(as of March 31, 2024) | (as of September 30, 2024) | ||
Liabilities | |||
Current liabilities | |||
Accounts payable-trade | 68,548 | 66,853 | |
Short-term loans payable | 56,593 | 58,199 | |
Income taxes payable | 13,441 | 2,549 | |
Provision for bonuses | 11,219 | 14,946 | |
Other | 63,420 | 64,115 | |
Total current liabilities | 213,222 | 206,664 | |
Noncurrent liabilities | |||
Long-term loans payable | 18,871 | 19,447 | |
Deferred tax liabilities | 24,332 | 18,624 | |
Net defined benefit liabilities | 46,945 | 47,353 | |
Provision for share awards for directors (and | 398 | 522 | |
other officers) | |||
Other | 9,607 | 8,960 | |
Total noncurrent liabilities | 100,155 | 94,908 | |
Total liabilities | 313,377 | 301,572 | |
Net assets | |||
Shareholders’ equity | |||
Capital stock | 23,335 | 23,335 | |
Capital surplus | 26,203 | 27,343 | |
Retained earnings | 385,291 | 390,518 | |
Treasury stock | (14,014) | (13,676) | |
Total shareholders’ equity | 420,815 | 427,522 | |
Accumulated other comprehensive income | |||
Valuation difference on available-for-sale | 71,971 | 58,124 | |
securities | |||
Foreign currency translation adjustment | 68,779 | 65,419 | |
Remeasurements of defined benefit plans | 24,487 | 23,888 | |
Total accumulated other comprehensive | 165,239 | 147,433 | |
income | |||
Non-controlling interests | 52,946 | 46,438 | |
Total net assets | 639,001 | 621,394 | |
Total liabilities and net assets | 952,379 | 922,966 |
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NOK Corporation (7240): Summary of Consolidated Financial Results for the Six Months Ended September 30, 2024
- Consolidated Semi-annualIncome Statement and Consolidated Semi-annualComprehensive Income Statement (Consolidated Semi-annualIncome Statement)
(Six Months Ended September 30, 2024)
(million yen) | ||||
Q2/FY2023 | Q2/FY2024 | |||
Net sales | 354,239 | 393,666 | ||
Cost of sales | 303,164 | 325,381 | ||
Gross profit | 51,075 | 68,285 | ||
Selling, general and administrative expenses | 46,212 | 49,200 | ||
Operating income | 4,863 | 19,084 | ||
Non-operating income | ||||
Dividend income | 1,602 | 1,668 | ||
Foreign exchange gains | 6,123 | - | ||
Share of profit of entities accounted for using | 4,873 | 5,163 | ||
equity method | ||||
Other | 2,565 | 3,649 | ||
Total non-operating income | 15,165 | 10,481 | ||
Non-operating expenses | ||||
Interest expenses | 1,584 | 1,689 | ||
Foreign exchange losses | - | 5,736 | ||
Loss on valuation of derivatives | 1,325 | - | ||
Other | 728 | 1,023 | ||
Total non-operating expenses | 3,638 | 8,449 | ||
Ordinary income | 16,389 | 21,117 | ||
Extraordinary income | ||||
Gain on sales of noncurrent assets | 34 | 277 | ||
Gain on sales of investment securities | 6,044 | 457 | ||
Other | - | 6 | ||
Total extraordinary income | 6,078 | 741 | ||
Extraordinary loss | ||||
Loss on retirement of noncurrent assets | 548 | 350 | ||
Other | 606 | 44 | ||
Total extraordinary loss | 1,154 | 394 | ||
Income before income taxes | 21,313 | 21,464 | ||
Income taxes | 7,105 | 5,928 | ||
Net income | 14,208 | 15,535 | ||
Profit attributable to non-controlling interests | 2,027 | 1,930 | ||
Profit attributable to owners of parent | 12,181 | 13,604 |
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NOK Corporation (7240): Summary of Consolidated Financial Results for the Six Months Ended September 30, 2024
(Consolidated Semi-annual Comprehensive Income Statement) | |||
(Six Months Ended September 30, 2024) | (million yen) | ||
Q2/FY2023 | Q2/FY2024 | ||
Net income | 14,208 | 15,535 | |
Other comprehensive income | |||
Valuation difference on available-for-sale securities | 11,888 | (13,831) | |
Foreign currency translation adjustment | 17,377 | (1,728) | |
Remeasurements of defined benefit plans, net of tax | 44 | (617) | |
Share of other comprehensive income of entities | 3,081 | (1,724) | |
accounted for using equity method | |||
Total other comprehensive income | 32,392 | (17,901) | |
Comprehensive income | 46,601 | (2,365) | |
(Detail) | |||
Comprehensive income attributable to owners of parent | 42,536 | (4,201) | |
Comprehensive income attributable to non-controlling | 4,065 | 1,835 | |
interests |
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NOK Corporation (7240): Summary of Consolidated Financial Results for the Six Months Ended September 30, 2024
- Notes Concerning Consolidated Semi-annualFinancial Statements (Notes on Changes in accounting policies)
(Application of the “Accounting Standard for Current Income Taxes,” etc.)
The “Accounting Standard for Current Income Taxes” (ASBJ Statement No. 27, October 28, 2022; hereinafter referred to as the “2022 Revised Accounting Standard”), etc., have been applied from the beginning of the current fiscal year. Regarding the revisions to the categories in which current income taxes should be recorded (taxation on other comprehensive income), the Company follows the transitional treatment prescribed in the proviso to Paragraph 20-3 of the 2022 Revised Accounting Standard and the transitional treatment prescribed in the proviso to Paragraph 65-2 (2) of the “Implementation Guidance on Tax Effect Accounting” (ASBJ Guidance No. 28, October 28, 2022; hereinafter referred to as the “2022 Revised Implementation Guidance”). These changes in accounting policies have no impact on the semi-annual consolidated financial statements.
In addition, with regard to revisions related to the treatment in consolidated financial statements when gains or losses arising from the sale of subsidiary shares, etc., among consolidated companies are deferred for tax purposes, the 2022 Revised Implementation Guidance has been applied from the beginning of the current fiscal year. These changes in accounting policies have been applied retroactively, and the semi-annual consolidated financial statements and consolidated financial statements for the same period of the previous fiscal year and the previous fiscal year have been prepared on a retroactive basis. These changes in accounting policies have no impact on the semi-annual consolidated financial statements of the same semi-annual of the previous fiscal year and the consolidated financial statements for the previous fiscal year.
(Accounting Treatments Specific to the Preparation of Consolidated Semi-annualFinancial Statements)
As for tax expenses, some consolidated subsidiaries estimated an effective tax rate in a reasonable manner applying tax effect accounting to income before income taxes for the consolidated fiscal year including the period under review, and multiplied the estimated effective tax rate by income before income taxes for the period under review.
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NOK Corporation (7240): Summary of Consolidated Financial Results for the Six Months Ended September 30, 2024
(Segment Information)
- Q2/FY2023
1. Information regarding net sales and income (loss) by reportable segment
(million yen) | |||||||
Reportable segments | Amount included in the | ||||||
Electronic | Total | Adjustments | consolidated semi- | ||||
annual income | |||||||
Seal | Other | (Note 1) | |||||
product | statement | ||||||
(Note 2) | |||||||
Net sales | |||||||
Net sales to external customers | 179,494 | 161,171 | 13,572 | 354,239 | – | 354,239 | |
Inter-segment sales/transfers | 718 | 44 | 332 | 1,095 | (1,095) | – | |
Total | 180,213 | 161,215 | 13,905 | 355,335 | (1,095) | 354,239 | |
Segment income | 8,317 | (3,572) | 119 | 4,864 | (1) | 4,863 |
Notes: 1. The amount of (1) million yen in adjustments of segment income (loss) represents the result of the elimination of inter-segment transactions.
2. Segment income is adjusted for operating income stated in the consolidated semi-annual income statement.
II Q2/FY2024
1. Information regarding net sales and income (loss) by reportable segment
(million yen) | |||||||
Reportable segments | Amount included in the | ||||||
Electronic | Total | Adjustments | consolidated semi- | ||||
annual income | |||||||
Seal | Other | (Note 1) | |||||
product | statement | ||||||
(Note 2) | |||||||
Net sales | |||||||
Net sales to external customers | 179,134 | 197,504 | 17,027 | 393,666 | - | 393,666 | |
Inter-segment sales/transfers | 804 | 10 | 364 | 1,179 | (1,179) | - | |
Total | 179,939 | 197,514 | 17,392 | 394,846 | (1,179) | 393,666 | |
Segment income | 11,224 | 6,506 | 1,347 | 19,077 | 6 | 19,084 |
Notes: 1. The amount of 6 million yen in adjustments of segment income (loss) represents the result of the elimination of inter-segment transactions.
2. Segment income is adjusted for operating income stated in the consolidated semi-annual income statement.
(Notes on Significant Changes in the Amount of Shareholders’ Equity) None.
(Notes Concerning the Going Concern Assumption)
None.
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