FY2024 | January 9, 2025 |
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.
Presentation Materials for Financial Results for
the Fiscal Year Ended November 30, 2024
Our products are invisible, but used around you.
OSAKA ORGANIC CHEMICAL INDUSTRY LTD.
Tokyo Stock Exchange, Prime Market: 4187
Contents | 2 |
- FY11/24 Financial Summary
- FY11/25 Forecast
- Initiatives to Improve Corporate Value
- Appendix
FY11/24 Financial Summary | 3 |
Operating environment
While the domestic economy is showing gradual recovery, the high level of interest rates in Europe and the United States, and the stagnation in the real estate market in China pose risks. Furthermore, the outlook remains uncertain due to factors such as rising prices, impacts surrounding the Middle East region, and changes in the financial and capital markets.
Net sales
Net sales increased by 13.1% year on year to 32,698 million yen, driven by strong sales performance in the Chemicals Business and a recovery in the sales of the Electronics Materials Business.
Operating profit
Despite an increase in depreciation, operating profit increased by 28.8% year on year to 4,608 million yen, primarily due to net sales increase.
(Millions of yen)
FY11/23
results
FY11/24 forecast
FY11/24
results
YoY change
Amount | % |
Net sales | 28,907 | 32,000 | 32,698 | +3,791 | +13.1% |
Operating profit | 3,577 | 4,200 | 4,608 | +1,031 | +28.8% |
Ordinary profit | 3,877 | 4,400 | 4,753 | +876 | +22.6% |
Profit attributable to | 3,270 | 3,700 | 4,044 | +773 | +23.7% |
owners of parent | |||||
Price of naphtha in Japan | 68,150 | 70,000 | 75,600 | ― | ― |
(Yen/KL) (Our estimated value) | |||||
Exchange rate (Yen/USD) | 140 | 145 | 150 | ― | ― |
Factors Affecting Operating Profit | 4 |
While inventory valuation had a positive impact on profits, both the cost of sales and selling, general and administrative expenses increased due to an increase in depreciation, labor costs, fuel and electricity cost, and transportation expenses. However, operating profit increased by 1.03 billion yen from the previous fiscal year, primarily driven by significant growth in net sales of chemical products and electronics materials.
Increase in net sales
+¥ 3.79 billion
Increase in cost of sales
+¥ 2.06 billion
Increase in SG&A
+¥ 0.69 billion
Chemical products | +¥ 2.21 billion |
Electronics materials | +¥ 1.59 billion |
Specialty chemicals | -¥0.01 billion |
Increase in cost of raw materials Impact of inventory valuation Increase in depreciation Increase in labor costs Increase in fuel and electricity
+¥ 1.58 billion -¥0.42 billion +¥ 0.49 billion +¥ 0.10 billion +¥ 0.11 billion
Others
Increase in depreciation Increase in personnel expenses Increase in transportation expenses Increase in transaction fees and others
+¥ 0.36 billion +¥ 0.12 billion +¥ 0.10 billion
+¥ 0.10 billion Others
Blue /↑: Positive factors | ||||
Red /↓: Negative factors | ||||
Increase in | Increase in | |||
cost of sales | ||||
net sales | Increase in | |||
SG&A | ||||
Operating profit | Operating profit | |||
¥ 3.57 billion | Operating Profit | +¥ 1.03 billion | ¥ 4.60 billion | |
FY11/23 | Change in net sales | Change in cost of sales | Change in SG&A | FY11/24 |
Results by Segment | 5 | ||||
Chemical products | Electronics materials | Specialty chemicals | |||
◇Sales of products for automotive coatings | ◇The semiconductor materials group saw | ◇In the cosmetics materials group, sales | |||
decreased. | a significant sales increase in its cutting- | were strong overseas. | |||
◇Sales of products for display adhesives | edge raw materials for EUV resists. | ◇As for functional materials, contract | |||
significantly increased. | Sales of mainstay raw materials for ArF | products were sluggish. | |||
Summary | ◇Sales of products for UV inkjet inks also | resists fell short of our expectations, | ◇Sales of high-purity specialty solvents | ||
increased. | despite showing a recovery trend. | produced by a subsidiary remained solid. | |||
◇Sales of methacrylate remained strong. | ◇In the display materials group, despite an | ||||
increase in sales for insulating films for | |||||
touch panels, group-wide sales were flat. | |||||
Net sales | ¥ 12.51 billion | ¥ 14.37 billion | ¥ 5.81 billion | ||
(YoY: +21.5%) | (YoY: +12.5%) | (YoY: -0.3%) | |||
Operating | ¥ 1.97 billion | ¥ 1.86 billion | ¥ 0.77 billion | ||
profit | (YoY: +108.7%) | (YoY: +12.4%) | (YoY: -20.8%) | ||
Net sales | Net sales by segment and OP margin (%) | OP margin | ||||
40 | ||||||
(Billions of yen) | 25.0 | (%) | ||||
23.8 | 23.6 | |||||
6.26 | 8.46 | 5.97 | 5.82 | 5.81 | ||
21.7 | ||||||
15.8 | ||||||
16.7 | ||||||
20 | 17.6 | 15 | ||||
16.4 | 15.22 | 13.0 | 14.37 | |||
14.50 | ||||||
12.56 | 12.77 | 13.3 | ||||
13.0 | ||||||
7.8 | 7.4 | 9.2 | 12.51 | |||
4.6 | 10.30 | |||||
9.84 | 12.05 | 11.03 | ||||
0 | 0 | |||||
FY11/20 | FY11/21 | FY11/22 | FY11/23 | FY11/24 | ||
Chemical products
Electronics materials
Specialty chemicals
Chemical products (OP margin)
Electronics materials (OP margin)
Specialty chemicals (OP margin)
*Adopted the "Accounting Standard for Revenue Recognition" and other standards from fiscal 2022
Contents | 6 |
- FY11/24 Financial Summary
- FY11/25 Forecast
- Initiatives to Improve Corporate Value
- Appendix
FY11/25 Forecast | 7 |
FY11/25 Forecast
In the fiscal year ending November 30, 2025, we forecast net sales of 34.0 billion yen, an increase of 1.3 billion yen, based on expectations of a gradual recovery in the semiconductor market from its bottom in 2023 and steady performance in the market of chemical products and specialty chemicals. Operating profit is expected to increase by 0.39 billion yen to 5.0 billion yen, primarily due to decreased depreciation.
(*The decrease in profit is mainly due to the significant extraordinary income recorded in the previous period.)
(Millions of yen)
FY11/24
results
Net sales | 32,698 |
FY11/25 forecast
34,000
YoY change
Amount | Rate of change |
+1,302 +4.0%
Operating profit | 4,608 | 5,000 | +392 | +8.5% | |
Ordinary profit | 4,753 | 5,200 | +447 | +9.4% | |
Profit attributable to owners of | 4,044 | 3,500 | -544 | -13.5% | |
parent | |||||
Price of naphtha in Japan | 75,600 | 75,000 | ― | ― | |
(Yen/KL) | (Our estimated value) | ||||
Exchange rate (Yen/USD) | 150 | 155 | ― | ― | |
■ Chemical Products | 8 | |||||||||||||||
FY11/24 | FY11/25 | Rate | Net sales / operating margin | |||||||||||||
Net sales | Forecasts | 2024 vs. 2025 | ||||||||||||||
(forecast) | ||||||||||||||||
¥ 12.51billion | ¥ 12.90billion | +3.1% | (Billions of yen) | Net sales | ||||||||||||
Operating margin (right axis) (%) | ||||||||||||||||
15.0 | 20 | |||||||||||||||
●Operating environment | 12.51 | 12.90 | ||||||||||||||
・Automobile production showed gradual recovery in Japan, | 11.03 | |||||||||||||||
while maintaining overall steady performance globally. | 10.30 | |||||||||||||||
15.8 | ||||||||||||||||
・In display-related products, the market of large-scale TVs is | ||||||||||||||||
slightly stagnating. | ||||||||||||||||
●OOC | 9.2 | 10 | ||||||||||||||
・Focusing on sales recovery for automotive coatings. | ||||||||||||||||
・Sales of products for display adhesives remained at high levels | 7.4 | |||||||||||||||
due to increased market share. | ||||||||||||||||
・Sales of materials for UV inkjet inks remained steady. | ||||||||||||||||
●Market risks | ||||||||||||||||
・Potential tariff increases associated with the U.S. | 0.0 | 0 | ||||||||||||||
administration transition. | FY11/22 | FY11/23 FY11/24 | FY11/25 | |||||||||||||
・Higher cost of raw materials derived from natural resources. | (Dotted line: Forecast) | |||||||||||||||
・Rapid fluctuations in exchange rates. |
■ Electronics Materials | 9 | |||||||
FY11/24 | FY11/25 | Rate | Net sales / operating margin | |||||
Net sales | Forecasts | 2024 vs. 2025 | ||||||
(forecast) | ||||||||
¥ 14.37billion | ¥ 15.50 billion | +7.8% | Net sales | |||||
(Billions of yen) | Operating margin (right axis) | (%) | ||||||
16.0 | 15.22 | 14.37 | 15.50 | 50 | ||||
●Operating environment | ||||||||
12.77 | ||||||||
・The semiconductor market gradually recovered. | ||||||||
・Cutting-edge EUV raw materials continued to remain strong. | ||||||||
・The display business is shifting from LCD to OLED. | ||||||||
●OCC | 25.0 | |||||||
・Sales of our mainstay ArF resist raw materials are recovering. | 25 | |||||||
・Materials for EUV applications continued to be strong. | ||||||||
・New display-related product materials grew. | 13.0 | 13.0 | ||||||
●Market risks | ||||||||
・Escalation of the U.S.-China economic confrontation. | ||||||||
0.0 | FY11/22 | FY11/23 | FY11/24 | FY11/25 | 0 | |||
(Dotted line: Forecast) |
■ Specialty Chemicals | 10 | |||||||||||||||||||
FY11/24 | FY11/25 | Rate | Net sales / operating margin | |||||||||||||||||
Net sales | Forecasts | 2024 vs. 2025 | ||||||||||||||||||
(forecast) | ||||||||||||||||||||
¥ 5.81billion | ¥ 5.60billion | -3.6% | Net sales | |||||||||||||||||
Operating margin (right axis) | ||||||||||||||||||||
(Billions of yen) | ||||||||||||||||||||
(%) | ||||||||||||||||||||
7.0 | 50 | |||||||||||||||||||
●Operating environment | 5.97 | 5.82 | 5.81 | 5.60 | ||||||||||||||||
・The domestic cosmetics market remained steady. | ||||||||||||||||||||
・In China, in addition to the economic slow down, the | ||||||||||||||||||||
competitive environment is changing due to the rise of local | ||||||||||||||||||||
manufacturers. | ||||||||||||||||||||
●OOC | 25 | |||||||||||||||||||
・Although cosmetics raw materials are struggling due to price | 21.7 | 16.7 | ||||||||||||||||||
competition, we will continue to actively expand overseas | ||||||||||||||||||||
sales. | ||||||||||||||||||||
・Sales of consignment products in functional materials are | 13.3 | |||||||||||||||||||
slow. | ||||||||||||||||||||
・The subsidiary's sales of specialty solvents are on a recovery | ||||||||||||||||||||
trend. | 0.0 | 0 | ||||||||||||||||||
●Market risks | FY11/22 | FY11/23 | FY11/24 | FY11/25 | ||||||||||||||||
(Dotted line: Forecast) | ||||||||||||||||||||
・Delayed market recovery in China.