Note: This 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.
Consolidated Financial Results
for the Year Ended November 30, 2024
[Japanese GAAP]
January 9, 2025
Company name: OSAKA ORGANIC CHEMICAL INDUSTRY LTD.
Listing: Tokyo | |
Securities code: 4187 | |
URL: https://www.ooc.co.jp/ | |
Representative: Masayuki Ando | Representative Director and CEO |
Inquiries: Soichi Honda | Director, Corporate Officer, General Manager of Administration |
Division | |
Telephone: +81-(0)6-6264－5071
Scheduled date of annual general meeting of shareholders: February 27, 2025
Scheduled date to commence dividend payments: February 28, 2025
Scheduled date to file annual securities report: February 28, 2025
Preparation of supplementary material on financial results: Yes
Holding of financial results briefing: Yes (for institutional investors and analysts, and individual investors)
(Yen amounts are rounded down to millions, unless otherwise noted.) | |||||||||
1. Consolidated Financial Results for the Fiscal Year Ended November 30, 2024 (December 1, 2023 to November 30, 2024) | |||||||||
(1) Consolidated Operating Results | (Percentages indicate year-on-year changes.) | ||||||||
Net sales | Operating profit | Ordinary profit | Profit attributable to | ||||||
owners of parent | |||||||||
Fiscal year ended | Millions of yen | % | Millions of yen | % | Millions of yen | % | Millions of yen | % | |
November 30, 2024 | 32,698 | 13.1 | 4,608 | 28.8 | 4,753 | 22.6 | 4,044 | 23.7 | |
November 30, 2023 | 28,907 | (10.3) | 3,577 | (39.7) | 3,877 | (39.1) | 3,270 | (30.8) |
(Note) Comprehensive income: | Fiscal year ended November 30, 2024: |
Fiscal year ended November 30, 2023: |
¥ | 4,219 million | [ | 5.0%] |
¥ | 4,019 million | [ | (17.0) %] |
Basic earnings per | Diluted earnings per | Rate of return on | Ordinary profit to | Operating profit to | |
share | share | equity | total assets ratio | net sales ratio | |
Fiscal year ended | Yen | Yen | % | % | % |
November 30, 2024 | 191.25 | - | 9.1 | 8.3 | 14.1 |
November 30, 2023 | 152.94 | - | 7.8 | 7.2 | 12.4 |
(Reference) Equity in earnings (losses) of affiliated companies: Fiscal year ended November 30, 2024: Fiscal year ended November 30, 2023:
(2) Consolidated Financial Position
- - million
- - million
Total assets | Net assets | Capital adequacy ratio | Net assets per share | ||
As of | Millions of yen | Millions of yen | % | Yen | |
November 30, 2024 | 59,964 | 46,139 | 75.8 | 2,150.61 | |
November 30, 2023 | 54,636 | 43,629 | 78.7 | 2,021.12 | |
(Reference) Equity: As of | November 30, 2024: | ¥ | 45,435 million | ||
As of | November 30, 2023: | ¥ | 42,984 million | ||
(3) Consolidated Cash Flows | |||||
Cash flows from | Cash flows from | Cash flows from | Cash and cash | ||
equivalents at the end | |||||
operating activities | investing activities | financing activities | |||
of period | |||||
Fiscal year ended | Millions of yen | Millions of yen | Millions of yen | Millions of yen | |
November 30, 2024 | 8,600 | (298) | (3,127) | 13,047 | |
November 30, 2023 | 4,370 | (4,127) | (476) | 7,890 |
2. Dividends
Annual dividends | Payout | Dividends | ||||||||
Total | to net | |||||||||
ratio | ||||||||||
dividends | assets | |||||||||
1st | 2nd | 3rd | Year-end | Total | ||||||
(consolidated) | ||||||||||
quarter-end | quarter-end | quarter-end | (consolidated) | |||||||
Fiscal year ended | Yen | Yen | Yen | Yen | Yen | Millions of yen | % | % | ||
November 30, 2023 | - | 28.00 | - | 28.00 | 56.00 | 1,190 | 36.6 | 2.9 | ||
November 30, 2024 | - | 32.00 | - | 34.00 | 66.00 | 1,394 | 34.5 | 3.2 | ||
Fiscal year ending | ||||||||||
November 30, 2025 | - | 34.00 | - | 34.00 | 68.00 | 41.1 | ||||
(Forecast) | ||||||||||
3. Consolidated Financial Results Forecast for the Fiscal Year Ending November 30, 2025 (December 1, 2024 to November 30, 2025) (Percentages indicate year-on-year changes.)
Net sales | Operating profit | Ordinary profit | Profit attributable to | Basic earnings | |||||||
owners of parent | per share | ||||||||||
Millions of | Millions of | Millions of | Millions of | ||||||||
Six months ending May | yen | % | yen | % | yen | % | yen | % | Yen | ||
16,800 | 9.5 | 2,500 | 34.4 | 2,600 | 30.7 | 1,700 | (15.8) | 81.00 | |||
31, 2025 | |||||||||||
Full year | 34,000 | 4.0 | 5,000 | 8.5 | 5,200 | 9.4 | 3,500 | (13.5) | 165.50 | ||
* Notes: | |||||||||||
(1) Significant changes in the scope of consolidation during the period: | None | ||||||||||
Newly included: | - | (Company name: | ) | ||||||||
Excluded: | - | (Company name: | ) |
- Changes in accounting policies, changes in accounting estimates, and restatement
- Changes in accounting policies due to revisions to accounting standards and other regulations: None
- Changes in accounting policies due to other reasons: None
- Changes in accounting estimates: None
- Restatement: None
- Number of issued shares (common shares)
- Total number of issued shares at the end of the period (including treasury shares):
November 30, 2024: | 22,410,038 | shares |
November 30, 2023: | 22,410,038 | shares |
2) Number of treasury shares at the end of the period: | ||
November 30, 2024: | 1,283,303 | shares |
November 30, 2023: | 1,142,585 | shares |
3) Average number of shares outstanding during the period: | ||
Fiscal Year ended November 30, 2024: | 21,147,955 | shares |
Fiscal Year ended November 30, 2023: | 21,387,005 | shares |
*Financial statements are not subject to audits by certified public accountants or auditing firms. *Cautionary statement with respect to forecasts of financial results and other special items
The forward-looking statements in this document, including forecasts of financial results, are based on information currently available to the Company and are subject to a number of uncertainties. Accordingly, actual results may differ from the forecasts due to changes in business conditions and other factors. Please refer to "1. Overview of Results of Operations, (4) Outlook" on page 3 of the attached materials for matters related to forecasts of financial results.
OSAKA ORGANIC CHEMICAL INDUSTRY LTD. (4187) Financial Results for FY11/24
- Contents of Attachments
1. Overview of Results of Operations | 2 | |
(1) | Results of Operations | 2 |
(2) | Financial Position | 3 |
(3) | Cash Flows | 3 |
(4) | Outlook | 3 |
(5) | Basic Policy for Profit Distribution, and Dividends in the Current and Next Fiscal Years | 5 |
2. Basic Approach for the Selection of Accounting Standards | 5 | |
3. Consolidated Financial Statements and Notes | 6 | |
(1) | Consolidated Balance Sheet | 6 |
(2) | Consolidated Statements of Income and Comprehensive Income | 8 |
Consolidated Statement of Income | 8 | |
Consolidated Statement of Comprehensive Income | 9 | |
(3) | Consolidated Statement of Changes in Equity | 10 |
(4) | Consolidated Statement of Cash Flows | 12 |
(5) | Notes to Consolidated Financial Statements | 14 |
Going Concern Assumption | 14 | |
Changes in Presentation Method | 14 | |
Segment and Other Information | 14 | |
Per-share Information | 17 | |
Significant Subsequent Events | 17 |
1
OSAKA ORGANIC CHEMICAL INDUSTRY LTD. (4187) Financial Results for FY11/24
1. Overview of Results of Operations
(1) Results of Operations
During the fiscal year under review, in the Japanese economy, business conditions maintained a moderate recovery trend due to the improvement in the employment and income situation and the effects of various policies. On the other hand, high interest rates in Europe and the United States and the stagnation of the real estate market in China pose a risk that the downturn in overseas economies could exert downward pressure on the Japanese economy. In addition, the outlook remains uncertain due to price increases, conditions surrounding the Middle East region, changes in the financial and capital markets, and other factors.
Under these circumstances, we launched a new medium-term management planning Progress & Development 2030 (P&D 2030) for the period from the fiscal year ended November 30, 2024 to the fiscal year ending November 30, 2030. Based on our Group management philosophy, P&D 2030 has set a management vision of "providing value to the global market as a leading company in specialty acrylic acid esters." Under this vision, we will promote sustainable management that takes ESG into account, aiming to increase corporate value and achieve sustainable growth.
In the Chemicals Business, we worked to improve profitability by integrating and closing products, and focused on expanding sales of environmentally friendly products, such as those derived from biomass. In the Electronics Materials Business, the Group worked to accelerate the development of cutting-edge semiconductor materials and to develop new applications for photoresist materials. In the functional chemicals business, the Group worked to strengthen the overseas expansion of cosmetic raw materials and expand sales of high-purity special solvents. In July 2024, we established a subsidiary in South Korea. Going forward, we will work to strengthen our overseas sales system by acquiring new customers and cultivating new markets.
As a result, for the fiscal year under review, net sales were 32,698 million yen (up 13.1% year on year), operating profit was 4,608 million yen (up 28.8% year on year), ordinary profit was 4,753 million yen (up 22.6% year on year), and profit attributable to owners of parent was 4,044 million yen (up 23.7% year on year).
① Business results by segment are explained below (excluding inter-segment transactions). Chemical products
In the Chemicals Business, sales of the acrylic acid ester group for automotive coatings decreased, but sales for display adhesives increased significantly, along with increased sales for UV inkjet inks. In the methacrylate group, sales were strong. As a result, net sales were 12,513 million yen (up 21.5% year on year) and segment profit was 1,978
②million yen (up 108.7% year on year). Electronics materials
In the Electronic Materials Business, sales of raw materials for cutting-edge EUV resists increased significantly. However, while sales of raw materials for ArF resists, which are the Company's mainstay, showed a recovery trend from sluggish demand due to inventory adjustments, Group-wide sales growth fell short of our expectations. In the display materials group, despite an increase in sales for insulating films for touch panels, sales for the group as a whole were flat. In addition, sales of other groups' new display materials, etc. increased. As a result, net sales were 14,374
③million yen (up 12.5% year on year) and segment profit was 1,869 million yen (up 12.4% year on year). Specialty chemicals
In the Specialty Chemicals Business, 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 and other products at subsidiaries remained solid. As a result, net sales were 5,810 million yen (down 0.3% year on year) and segment profit was 771 million yen (down 20.8% year on year).
2
OSAKA ORGANIC CHEMICAL INDUSTRY LTD. (4187) Financial Results for FY11/24
(2) Financial Position
Total assets at the end of the fiscal year under review increased by 5,327 million yen from the end of the previous fiscal year to 59,964 million yen. This was mainly attributable to an increase of 5,156 million yen in cash and deposits, an increase of 2,513 million yen in accounts receivable - trade due to the last day of the fiscal year under review being a holiday for financial institutions, a decrease of 2,028 million yen in property, plant and equipment, and a decrease of 302 million yen in investment securities.
Liabilities at the end of the fiscal year under review increased by 2,816 million yen from the end of the previous fiscal year to 13,824 million yen. This was mainly due to an increase of 2,122 million yen in notes and accounts payable - trade, mainly due to the last day of the fiscal year under review being a holiday for financial institutions and an increase of 660 million yen in income taxes payable.
Net assets at the end of the fiscal year under review increased by 2,510 million yen from the end of the previous fiscal year to 46,139 million yen. This was mainly due to an increase of 2,773 million yen in retained earnings, an increase of 419 million yen in treasury shares, a decrease of 170 million yen in valuation difference on available-for-sale securities, and an increase of 259 million yen in remeasurements of defined benefit plans.
(3) Cash Flows
During the fiscal year under review, cash and cash equivalents (hereinafter referred to as "funds") increased by 5,156 million yen to 13,047 million yen (up 65.4% year on year), mainly due to 298 million yen invested in investing activities from 8,600 million yen provided by operating activities and a decrease of 3,127 million yen in financing activities.
(Cash flows from operating activities)
Net cash provided by operating activities was 8,600 million yen (net cash provided of 4,370 million yen in the previous fiscal year) due to profit before income taxes of 5,567 million yen, depreciation of 3,283 million yen, and income taxes refund (paid) of 850 million yen.
(Cash flows from investing activities)
Net cash used in investing activities was 298 million yen (net cash used of 4,127 million yen in the previous fiscal year). This was mainly due to purchase of property, plant and equipment of 1,027 million yen associated with the construction of new facilities, etc., and proceeds from sale of investment securities of 1,054 million yen.
(Cash flows from financing activities)
Net cash used in financing activities was 3,127 million yen (net cash used of 476 million yen in the previous fiscal year) due to proceeds from long-term borrowings of 400 million yen for the construction of new facilities, 1,771 million yen of repayments of long-term borrowings, 427 million yen of purchase of treasury shares, and 1,271 million yen of dividends paid.
(4) Outlook
With regard to the future outlook, uncertainty is expected to persist due to factors such as the possibility of an economic slowdown overseas, particularly in China, price hikes due to soaring fuel and raw material prices, heightened geopolitical risks such as the situation in Ukraine and the situation in the Middle East, and the impact of potential policy changes following the U.S. administration transition.
Under these circumstances, we launched a new medium-term management planning Progress & Development 2030
3
OSAKA ORGANIC CHEMICAL INDUSTRY LTD. (4187) Financial Results for FY11/24
(P&D 2030) for the period from the fiscal year ended November 30, 2024 to the fiscal year ending November 30, 2030. Under the new medium-term management plan P&D 2030, we will promote sustainable management with consideration for ESG under the management vision of "providing value to the global market as a leading company in
specialty acrylic acid esters" based on our group management philosophy.
As for business domains, our basic strategy is to expand our focus areas by accelerating the development of cutting- edge semiconductor materials, expanding our semiconductor business by rolling out into peripheral materials, expanding our LCD resist design technology to non-display applications, expanding our hydrophilic polymer technology to bio-compatible materials and new electronic materials applications, collaborating with other organizations and manufacturers related to organic piezoelectric materials and flexible elastomer materials, and launching new markets.
In addition, the Group will strive to develop materials for the environmental community through measures such as developing biomass acrylate, going downstream, developing acrylic acid derived from non-fossil raw materials, taking on the challenge of completely non-fossil-based materials, and disclosing environmental data such as LCA.
To strengthen our overseas strategy, we will establish sales companies in China, South Korea, and North America, enhance our channel strategy, including local production, and expand sales channels to ASEAN, India, and other countries, centered on cosmetics materials.
In initiatives related to sustainability, we aim to contribute to a sustainable society by implementing measures aimed at achieving carbon neutrality, reducing waste, and reusing resources to realize a circular economy.
Through the promotion of IT and DX, we will work to improve quality, prevent problems, improve safety, and improve productivity. At the same time, we will improve employee job satisfaction and engagement by optimizing the working environment and working styles, create a framework for diversifying employment, and implement human capital management such as education and human resource development tailored to the environment and strategy.
Furthermore, we will strengthen risk management by ensuring thorough compliance, strengthening the supply chain, and enhancing the viability of BCP.
Taking these factors into account, we plan to achieve the following performance targets: net sales of 34,000 million yen, operating profit of 5,000 million yen, ordinary profit of 5,200 million yen, and profit attributable to owners of the parent of 3,500 million yen.
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OSAKA ORGANIC CHEMICAL INDUSTRY LTD. (4187) Financial Results for FY11/24
(5) Basic Policy for Profit Distribution, and Dividends in the Current and Next Fiscal Years
The priorities of the Group are strengthening financial soundness and the foundation for business operations from a long-term perspective and making steady and consistent distributions of earnings to shareholders.
Regarding shareholder returns, we will strive to distribute dividends according to our business performance, while maintaining balance by considering factors such as the enhancement of internal reserves for the Company's business performance and future business plans, with a payout ratio of 40% as a key guideline, and enhance shareholder returns through measures including flexible share buybacks.
For the fiscal year ended November 30, 2024, we paid a dividend of 32 yen per share for the second quarter based on our basic policy. For the year-end dividend, we plan to increase the dividend by 2 yen to 34 yen per share (annual dividend of 66 yen per share), reflecting strong business performance, particularly in the Chemicals Business.
The Company plans to pay a dividend of 68 yen per share for the next fiscal year (for the fiscal year ending November 30, 2025), which is 34 yen for the second quarter and 34 yen for the end of the fiscal year.
2. Basic Approach for the Selection of Accounting Standards
The Group will continue to prepare consolidated financial statements using the generally accepted accounting principles in Japan for the time being to permit comparisons with prior years and with the financial data of other companies.
We will take suitable actions with regard to the application of International Financial Reporting Standards by taking into account associated factors in Japan and other countries.
5
OSAKA ORGANIC CHEMICAL INDUSTRY LTD. (4187) Financial Results for FY11/24
Consolidated Financial Statements and Notes
Consolidated Balance Sheet
(Thousands of yen) | ||||
As of November 30, 2023 | As of November 30, 2024 | |||
Assets | ||||
Current assets | ||||
Cash and deposits | 7,890,809 | 13,047,614 | ||
Notes receivable - trade | 25,878 | 31,414 | ||
Electronically recorded monetary claims - | 335,183 | 374,384 | ||
operating | ||||
Accounts receivable - trade | 7,985,781 | 10,499,381 | ||
Contract assets | 623,007 | 721,241 | ||
Finished goods | 4,558,239 | 4,799,006 | ||
Work in process | 1,979,792 | 2,070,025 | ||
Raw materials and supplies | 2,175,488 | 1,989,293 | ||
Other | 1,540,540 | 773,069 | ||
Allowance for doubtful accounts | (12,736) | (18,415) | ||
Total current assets | 27,101,985 | 34,287,015 | ||
Non-current assets | ||||
Property, plant and equipment | ||||
Buildings and structures | 19,448,521 | 19,683,681 | ||
Accumulated depreciation | (10,727,778) | (11,356,487) | ||
Buildings and structures, net | 8,720,743 | 8,327,194 | ||
Machinery, equipment and vehicles | 34,866,382 | 36,111,190 | ||
Accumulated depreciation | (26,192,631) | (28,580,644) | ||
Machinery, equipment and vehicles, net | 8,673,751 | 7,530,545 | ||
Land | 2,172,476 | 2,172,476 | ||
Construction in progress | 520,490 | 94,679 | ||
Other | 3,277,607 | 3,347,568 | ||
Accumulated depreciation | (2,921,604) | (3,057,277) | ||
Other, net | 356,003 | 290,291 | ||
Total property, plant and equipment | 20,443,464 | 18,415,187 | ||
Intangible assets | ||||
Goodwill | 43,333 | 23,333 | ||
Other | 59,379 | 50,538 | ||
Total intangible assets | 102,713 | 73,871 | ||
Investments and other assets | ||||
Investment securities | 6,500,840 | 6,197,896 | ||
Shares of subsidiaries and associates | - | 96,958 | ||
Retirement benefit asset | 357,945 | 758,144 | ||
Deferred tax assets | 209 | 1,927 | ||
Other | 129,806 | 133,712 | ||
Total investments and other assets | 6,988,802 | 7,188,638 | ||
Total non-current assets | 27,534,980 | 25,677,697 | ||
Total assets | 54,636,965 | 59,964,713 |
6
OSAKA ORGANIC CHEMICAL INDUSTRY LTD. (4187) Financial Results for FY11/24
(Thousands of yen) | ||||
As of November 30, 2023 | As of November 30, 2024 | |||
Liabilities | ||||
Current liabilities | ||||
Notes and accounts payable - trade | 3,802,732 | 5,924,864 | ||
Current portion of bonds payable | 25,000 | - | ||
Current portion of long-term borrowings | 1,728,157 | 2,188,610 | ||
Accounts payable - other | 814,077 | 1,524,265 | ||
Income taxes payable | 234,679 | 895,161 | ||
Contract liabilities | 14,130 | 45,651 | ||
Provision for bonuses for directors (and other | 15,590 | 42,210 | ||
officers) | ||||
Other | 463,683 | 1,109,114 | ||
Total current liabilities | 7,098,050 | 11,729,879 | ||
Non-current liabilities | ||||
Long-term borrowings | 3,169,849 | 1,337,923 | ||
Deferred tax liabilities | 628,650 | 634,911 | ||
Provision for share awards for directors (and other | 21,107 | 35,086 | ||
officers) | ||||
Other | 90,085 | 86,937 | ||
Total non-current liabilities | 3,909,693 | 2,094,858 | ||
Total liabilities | 11,007,743 | 13,824,737 | ||
Net assets | ||||
Shareholders' equity | ||||
Share capital | 3,600,295 | 3,600,295 | ||
Capital surplus | 3,511,017 | 3,513,436 | ||
Retained earnings | 35,954,913 | 38,727,951 | ||
Treasury shares | (2,709,700) | (3,129,535) | ||
Total shareholders' equity | 40,356,525 | 42,712,148 | ||
Accumulated other comprehensive income | ||||
Valuation difference on available-for-sale | 2,514,638 | 2,344,090 | ||
securities | ||||
Foreign currency translation adjustment | 125,461 | 132,235 | ||
Remeasurements of defined benefit plans | (12,589) | 246,812 | ||
Total accumulated other comprehensive income | 2,627,510 | 2,723,138 | ||
Non-controlling interests | 645,186 | 704,689 | ||
Total net assets | 43,629,221 | 46,139,976 | ||
Total liabilities and net assets | 54,636,965 | 59,964,713 | ||
7
OSAKA ORGANIC CHEMICAL INDUSTRY LTD. (4187) Financial Results for FY11/24
Consolidated Statements of Income and Comprehensive Income
Consolidated Statement of Income
(Thousands of yen) | ||
For the fiscal year | For the fiscal year | |
ended November 30, 2023 | ended November 30, 2024 | |
Net sales | 28,907,186 | 32,698,809 |
Cost of sales | 20,947,756 | 23,010,361 |
Gross profit | 7,959,430 | 9,688,447 |
Selling, general and administrative expenses | 4,382,266 | 5,079,643 |
Operating profit | 3,577,163 | 4,608,803 |
Non-operating income | ||
Interest income | 1,693 | 5,278 |
Dividend income | 165,779 | 150,135 |
Foreign exchange gains | 34,225 | - |
Insurance claim income | 72,590 | - |
Other | 39,501 | 50,187 |
Total non-operating income | 313,791 | 205,602 |
Non-operating expenses | ||
Interest expenses | 7,336 | 9,326 |
Foreign exchange losses | - | 20,669 |
Donations | - | 27,000 |
Commission for purchase of treasury shares | 3,241 | 602 |
Loss on investments in investment partnerships | 2,521 | 2,191 |
Other | 46 | 640 |
Total non-operating expenses | 13,146 | 60,431 |
Ordinary profit | 3,877,808 | 4,753,974 |
Extraordinary income | ||
Gain on sale of non-current assets | 873 | - |
Gain on sale of investment securities | 586,542 | 815,207 |
Total extraordinary income | 587,415 | 815,207 |
Extraordinary losses | ||
Loss on sale of non-current assets | 1,889 | - |
Loss on retirement of non-current assets | 7,726 | 1,608 |
Total extraordinary losses | 9,615 | 1,608 |
Profit before income taxes | 4,455,607 | 5,567,573 |
Income taxes - current | 1,146,055 | 1,486,506 |
Income taxes - deferred | (51,393) | (36,793) |
Total income taxes | 1,094,661 | 1,449,712 |
Profit | 3,360,946 | 4,117,860 |
Profit attributable to non-controlling interests | 89,959 | 73,278 |
Profit attributable to owners of parent | 3,270,986 | 4,044,582 |
8