(English Translation)
This English translation is an abridged version of the original document in Japanese. In the event of any discrepancy, the Japanese version prevail.
Consolidated Financial Results for the First Quarter of the
Fiscal Year Ending November 30, 2023 (FY11/23)
(Three Months Ended February 28, 2023)
[Japanese GAAP]
April 7, 2023 | ||
Company name: | OSAKA ORGANIC CHEMICAL INDUSTRY LTD. | |
Listing: | Tokyo Stock Exchange, Prime Market | |
Securities code: | 4187 | URL: https://www.ooc.co.jp/ |
Representative: | Masayuki Ando, Representative Director and CEO | |
Contact: | Soichi Honda, Director, Corporate Officer, General Manager of Administration Division | |
TEL: +81-6-6264-5071 |
Scheduled date of filing of Quarterly Report: | April 7, 2023 |
Scheduled date of dividend payment: | - |
Preparation of supplementary materials for quarterly financial results: | Yes |
Holding of quarterly financial results meeting: | None |
(All amounts are rounded down to the nearest million yen)
1. Consolidated Financial Results for the First Quarter of FY11/23 (December 1, 2022 to February 28, 2023)
(1) Consolidated results of operations | (Percentages represent year-on-year changes) | |||||||
Net sales | Operating profit | Ordinary profit | Profit attributable to | |||||
owners of parent | ||||||||
Millions of yen | % | Millions of | % | Millions of yen | % Millions of yen | % | ||
yen | ||||||||
Three months ended Feb. 28, 2023 | ||||||||
6,870 | (15.4) | 1,005 | (39.6) | 1,040 | (40.0) | 726 | (40.0) | |
Three months ended Feb. 28, 2022 | 8,125 | - | 1,665 | 8.7 | 1,733 | 3.7 | 1,211 | 3.8 |
Note: Comprehensive income (millions of yen) | Three months ended Feb. 28, 2023: | 935 | (down 21.3%) | ||
Three months ended Feb. 28, 2022: | 1,188 | (down 5.9%) | |||
Net income per share | Diluted net income per share | ||||
Yen | Yen | ||||
Three months ended Feb. 28, 2023 | 33.71 | - | |||
Three months ended Feb. 28, 2022 | 54.97 | - |
Note: "Accounting Standard for Revenue Recognition" (ASBJ Statement No. 29, March 31, 2020), etc. have been applied since the beginning of the first quarter of the consolidated fiscal year ending November, 2022, and the figures stated for the period under review are adjusted following the application of the above-mentioned accounting standard, etc. Therefore, the year-on-year change of net sales for the period under review is omitted.
(2) Consolidated financial position
Total assets | Net assets | Equity ratio | |||
Millions of yen | Millions of yen | % | |||
As of Feb. 28, 2023 | 52,168 | 41,729 | 78.9 | ||
As of Nov. 30, 2022 | 52,836 | 41,394 | 77.3 | ||
Reference: Shareholders' equity (millions of yen) | As of Feb. 28, 2023: 41,153 | As of Nov. 30, 2022: 40,826 |
2. Dividends
Dividend per share | |||||||||||
1Q-end | 2Q-end | 3Q-end | Year-end | Total | |||||||
Yen | Yen | Yen | Yen | Yen | |||||||
Fiscal year ended Nov. 30, 2022 | - | 27.00 | - | 27.00 | 54.00 | ||||||
Fiscal year ending Nov. 30, 2023 | - | ||||||||||
Fiscal year ending Nov. 30, 2023 | 28.00 | - | 28.00 | 56.00 | |||||||
(Forecast) | |||||||||||
Note: Revisions to the most recently announced dividend forecast: None |
3. Consolidated Forecast for FY11/23 (December 1, 2022 to November 30, 2023)
(Percentages represent year-on-year changes)
Net sales | Operating profit | Ordinary profit | Profit attributable to | Net income per | ||||||
owners of parent | share | |||||||||
Millions of yen | % | Millions of yen | % | Millions of yen | % | Millions of yen | % | Yen | ||
First half | 13,900 | (13.9) | 2,000 | (39.8) | 2,100 | (40.5) | 1,400 | (42.8) | 64.93 | |
Full year | 29,000 | (10.0) | 3,800 | (36.0) | 4,000 | (37.2) | 2,800 | (40.8) | 129.85 |
Note: Revisions to the most recently announced consolidated forecast: Yes
* Notes
(1) Changes in significant subsidiaries during the period (change in scope of consolidation): None
Newly added: - | Excluded: - |
- Application of special accounting methods for presenting quarterly consolidated financial statements: None
- Changes in accounting policies and accounting-based estimates, and restatements
- Changes in accounting policies due to revisions in accounting standards, others: Yes
- Changes in accounting policies other than 1) above: None
- Changes in accounting-based estimates: None
- Restatements: None
Note: For details, please refer to "2. Quarterly Consolidated Financial Statements and Notes; (3) Notes to Quarterly Consolidated Financial Statements (Changes in Accounting Policies)" on page 8 (Attachment) of this quarterly financial report.
(4) Number of shares issued (common shares)
1) Number of shares issued at the end of the period (including treasury shares)
As of Feb. 28, 2023: | 22,410,038 shares | As of Nov. 30, 2022: | 22,410,038 shares |
2) Number of treasury shares at the end of the period | |||
As of Feb. 28, 2023: | 847,478 shares | As of Nov. 30, 2022: | 847,478 shares |
3) Average number of shares during the period | |||
Three months ended Feb. 28, 2023: | 21,562,560 shares | Three months ended Feb. 28, 2022: | 22,045,471 shares |
- The current quarterly financial report is not subject to quarterly review by certified public accountants or auditing firms.
-
Cautionary statement with respect to forward-looking statements and other special items
The forward-looking statements contained in this material are based on information available to the Company's management at the time the materials were prepared and include a variety of uncertainties. Actual results may differ from the forecasts due to changes in the business environment and other factors. Please refer to "Explanation of Consolidated Forecast and Other Forward-looking Statements" on page 3 (Attachment) of this quarterly financial report for items pertaining to the forecasts stated above.
OSAKA ORGANIC CHEMICAL INDUSTRY LTD. (4187) Financial Results for the First Quarter of FY11/23
Contents of Attachments
1. Qualitative Information on Quarterly Consolidated Financial Performance | 2 | |
(1) | Explanation of Results of Operations | 2 |
(2) | Explanation of Financial Position | 2 |
(3) | Explanation of Consolidated Forecast and Other Forward-looking Statements | 3 |
2. Quarterly Consolidated Financial Statements and Notes | 4 | |
(1) | Quarterly Consolidated Balance Sheet | 4 |
(2) | Quarterly Consolidated Statements of Income and Comprehensive Income | 6 |
(3) | Notes to Quarterly Consolidated Financial Statements | 8 |
Going Concern Assumption | 8 | |
Significant Changes in Shareholders' Equity | 8 | |
Changes in Accounting Policies | 8 | |
Segment and Other Information | 8 | |
Significant Subsequent Events | 9 |
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OSAKA ORGANIC CHEMICAL INDUSTRY LTD. (4187) Financial Results for the First Quarter of FY11/23
1. Qualitative Information on Quarterly Consolidated Financial Performance
(1) Explanation of Results of Operations
In the first quarter of the consolidated fiscal year ending November 30, 2023, despite the effect of high resource prices, the Japanese economy improved through increasing compatibility between the control of COVID-19 and economic activities. However, due to the continuation of high energy and grain prices on the back of the protracted Russian invasion of Ukraine and the increase in downside risk in the economy as a result of global monetary tightening, the outlook for the Japanese economy continues to be uncertain.
The Osaka Organic Chemical Industry Group is promoting its Second Five-yearMedium-term Business Plan, which started in the fiscal year that ended in November 2020. This plan is the second half of Next Stage 10, a long-term business plan covering the 10-year period that began with the fiscal year that ended in November 2015. Many activities are under way to accomplish the goals of this plan. In the chemical products business, we are focusing on improving profitability by concentrating investments on carefully selected categories in order to revitalize the product lineup. Another priority is increasing sales of raw materials for specialty ink for UV inkjet printers and eco-friendly products originated from biomass as the markets for these products grow worldwide. In the electronics materials business, we are strengthening activities for developing next-generation semiconductor materials to be the market leader in targeted categories and for increasing sales of new display materials. In the specialty chemicals business, there are measures to develop functional polymers and increase sales of raw materials for cosmetics and of high-purity specialty solvents. However, our business has been hit significantly by the sluggish demand particularly for electronics materials used for the manufacture of displays and semiconductors.
As a result, net sales for the period under review were 6,870 million yen (down 15.4% year on year), operating profit was 1,005 million yen (down 39.6% year on year), ordinary profit was 1,040 million yen (down 40.0% year on year), and profit attributable to owners of parent was 726 million yen (down 40.0% year on year).
Business results by segment are explained below (excluding inter-segment transactions).
1) Chemical products
Regarding acrylic acid ester, while sales of esters used in automotive coatings remained firm, sales of esters used in display adhesives and chemical products used in UV inkjet printers were sluggish. Sales of methacrylic acid esters decreased significantly. As a result, net sales were 2,117 million yen (down 25.4% year on year), and segment profit was 134 million yen (down 47.9% year on year).
2) Electronics materials
Regarding semiconductor materials, sales of raw materials used to manufacture ArF photoresist, the primary product of this segment, were flat as demand in the end market softened. As for display materials, sales remained weak due to sluggish demand for displays. As a result, net sales were 3,238 million yen (down 16.3% year on year), and segment profit was 581 million yen (down 46.3% year on year).
3) Specialty chemicals
Raw materials for cosmetics recorded strong sales abroad. As for functional materials, sales of products made for other companies remained weak. Sales of high-purity specialty solvents produced by a subsidiary remained solid. As a result, net sales stood at 1,514 million yen (up 7.0% year on year), and segment profit was 301 million yen (down 7.1% year on year).
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OSAKA ORGANIC CHEMICAL INDUSTRY LTD. (4187) Financial Results for the First Quarter of FY11/23
(2) Explanation of Financial Position
Total assets as of the end of the three-month period under review stood at 52,168 million yen, a decrease of 668 million yen from the end of the previous consolidated fiscal year. This was mainly attributable to a decrease of 1,307 million yen in cash and deposits, a decrease of 1,061 million yen in notes, accounts receivable-trade and contract assets, an increase of 488 million yen in finished goods, an increase of 207 million yen in work in process, an increase of 266 million yen in raw materials and supplies, an increase of 489 million yen in construction in progress, and an increase of 336 million yen in investment securities.
Total liabilities as of the end of the three-month period under review stood at 10,438 million yen, a decrease of 1,003 million yen from the end of the previous consolidated fiscal year. This was mainly attributable to a decrease of 348 million yen in notes and accounts payable-trade, an increase of 450 million yen in accounts payable-other, a decrease of 654 million yen in income taxes payable, and a decrease of 443 million yen in long-term borrowings.
Net assets as of the end of the three-month period under review stood at 41,729 million yen, an increase of 335 million yen from the end of the previous consolidated fiscal year. This was mainly attributable to increases of 144 million yen in retained earnings and 171 million yen in valuation difference on available-for-sale securities.
(3) Explanation of Consolidated Forecast and Other Forward-looking Statements
The Company has revised the consolidated earnings forecast announced on January 12, 2023. For the details of the revision, please refer to the "Notice of Revision of Earnings Forecasts" released today (April 7, 2023).
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