(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.
3Q FY11/24
October 11, 2024
Presentation Materials for Financial Results
for the Third Quarter of the Fiscal Year
Ending November 30, 2024
(December 1, 2023 - August 31, 2024)
OSAKA ORGANIC CHEMICAL INDUSTRY LTD.
Tokyo Stock Exchange, Prime Market: 4187
3Q FY11/2024 Financial Summary | 2 |
Operating environment
While the domestic economy continues to recover moderately, the outlook remains uncertain due to the high level of interest rates in Europe and the United States, stagnation in the real estate market in China, rising prices, impacts surrounding the Middle East region, and changes in the financial and capital markets.
Net sales
There was a sharp increase in raw materials for adhesives for displays. Semiconductor materials, which had been affected by sluggish demand, have gradually recovered. As a result, net sales increased 9.3% year on year to 23,784 million yen.
Operating profit
Operating profit decreased 1.9% year on year to 2,997 million yen due to factors such as the significant downward pressure on profits from depreciation and amortization of semiconductor materials manufacturing facilities completed last year.
(Millions of yen)
3Q FY11/23
results
Net sales | 21,754 |
3Q FY11/24
results
23,784
YoY change
Amount | % |
+2,029 +9.3%
Comparison with forecast
FY11/23 | 3Q |
Forecast | Progress rate |
32,000 | 74.3% |
Operating profit | 3,056 | 2,997 | -58 | -1.9% |
Ordinary profit | 3,298 | 3,067 | -230 | -7.0% |
Profit attributable to | 2,682 | 2,813 | +130 | +4.9% |
owners of parent | ||||
Price of naphtha in Japan | 66,000 | 77,167 | — | — |
(Yen/KL) (Our estimated value) | ||||
Exchange rate | 137 | 151 | — | — |
(Yen/USD) | ||||
4,200 | 71.4% |
4,400 | 69.7% |
3,700 | 76.0% |
70,000 | — |
145 | — |
Factors Affecting Operating Profit | 3 |
Operating profit decreased by ¥0.05 billion yen from the same quarter of the previous year, mainly due to an increase in depreciation and amortization, despite a significant increase in sales in the Chemicals business.
Increase in net sales
+¥ 2.02 billion
Chemical products | +¥ 2.08 billion |
Electronics materials | +¥ 0.34 billion |
Specialty chemicals | -¥ 0.39 billion |
Increase in cost of sales
+¥ 1.53 billion
Increase in cost of raw materials | +¥ 0.88 billion |
Impact of inventory valuation | -¥ 0.04 billion |
Increase in labor costs | +¥ 0.04 billion |
Increase in fuel and electricity | +¥ 0.06 billion |
Increase in depreciation | +¥ 0.46 billion |
Others | |
Increases in SG&A
+¥ 0.55 billion
Increase in personnel expenses | +¥ 0.05 billion |
Increase in depreciation | +¥ 0.37 billion |
Increase in transportation expenses | +¥ 0.08 billion |
Others | |
Increase in | Cost of sales | Blue / ↑: Positive factors | |
Red / ↓: Negative factors | |||
Net sales | |||
Increase | |||
Increases in | |||
SG&A | |||
Operating profit | Operating profit | ||
¥ 3.05 billion | ¥ 2.99 billion | ||
Operating Profit | -¥ 0.05 billion |
3Q FY11/23 | Change in net sales | Change in cost of goods sold | Change in SG&A | 3Q FY11/24 |
■Chemical Products | 4 | |||||
3Q FY11/24 | FY11/24 | Progress rate | Net sales / operating margin | |||
Net sales | Full-year forecast | Vs Full-year forecast | ||||
¥ 9.36 bn | ¥ 12.00 bn | 78.1 % | Net sales | |||
Operating margin(right axis) | ||||||
(billions of | ||||||||
yen) | ||||||||
6.0 | 18.5 | 20 | ||||||
●Operating environment | (%) | |||||||
17.9 | ||||||||
・Automobile production is stagnant domestically and generally strong globally, | ||||||||
but Japanese manufacturers are struggling in China. | ||||||||
・In display-related products, sales of large-scale TVs and other products were | ||||||||
strong. | ||||||||
●OOC | 11.9 | |||||||
・Sales for automotive paints declined, and overall sales for coating applications | 10.2 | 9.6 | 3.28 | 3.37 | ||||
were firm. | 10 | |||||||
・Sales of adhesives for displays substantial increase. | 2.46 | 2.70 | 3.01 | 2.70 | 2.96 | 3.05 | ||
・Sales of materials for UV inkjet inks were also strong. | 2.11 | |||||||
●Market risks | 7.5 | |||||||
・Crude oil prices remain high. | 6.4 | |||||||
・Higher cost of raw materials derived from natural resources. | ||||||||
・Rapid fluctuations in exchange rates. | ||||||||
0.0 | 0 |
(Dotted line: Forecast)
■Electronics Materials | 5 |
3Q FY11/24 | FY11/24 | Progress rate | Net sales / operating margin | |||||
Net sales | Full-year forecast | Vs Full-year forecast | ||||||
¥ 10.33 bn | ¥ 14.70 bn | 70.3 % | Net sales | |||||
Operating margin(right axis) | ||||||||
(billions of | ||||||||
yen) | ||||||||
●Operating environment | 6.0 | 20 | ||||||
17.9 | (%) | |||||||
・The semiconductor market gradually recovered. | 16.7 | |||||||
・Cutting-edge EUV lithography is becoming increasingly practical. | ||||||||
・The display business is shifting from LCD to OLED. | 14.4 | |||||||
●OOC | 13.2 | 4.00 | 4.05 | |||||
・Sales of our mainstay ArF resist raw materials are showing signs of recovery. | 3.67 | |||||||
・Materials for EUV applications increased steadily. | 3.23 | 3.32 3.42 | 3.09 | 3.56 | 11.9 | |||
・New display-related product materials grew. | 10 | |||||||
2.78 | ||||||||
●Market risks | ||||||||
・Escalation of the U.S.-China economic confrontation. | ||||||||
5.7 | ||||||||
0.0 | 1.1 | 0 | ||||||
(Dotted line: Forecast) |
■Specialty Chemicals | 6 |
3Q FY11/24 | FY11/24 | Progress rate | Net sales / operating margin | ||||||
Net sales | Full-year forecast | Vs Full-year forecast | |||||||
¥ 4.08 bn ¥ 5.30 bn | 77.0 % | Net sales | |||||||
(billions of | Operating margin(right axis) | ||||||||
yen) | 19.9 | ||||||||
3.5 | 20 | ||||||||
●Operating environment | |||||||||
(%) | |||||||||
・The domestic cosmetics market remained steady. | |||||||||
・In China, in addition to the economic slowdown, the rise of local manufacturers | 16.3 | 15.7 | |||||||
The competitive environment is changing. | 15.7 | ||||||||
14.6 | |||||||||
●OOC | |||||||||
・Raw materials for cosmetics recorded strong sales abroad. | |||||||||
・In the functional materials group, sales decreased due to a decrease in sales of | 10.5 | ||||||||
contracted products. | |||||||||
・Sales of specialty solvents produced by a subsidiary remained recovery trend. | 1.51 | 1.60 | 10 | ||||||
・In the third quarter, profit margins declined due to a decrease in sales of high | 1.34 | 1.42 | 1.39 | ||||||
value-added products, an increase in depreciation expenses, and disposal of non- | 1.36 | ||||||||
1.26 | 7.1 | ||||||||
conforming products. | |||||||||
1.32 | 1.33 | ||||||||
●Market risks | |||||||||
・Delayed market recovery in China. | |||||||||
0.0 | 0 | ||||||||
(Dotted line: Forecast) |
Capital Expenditures, Depreciation, R&D Expenses | 7 |
In 2023, we invested ¥8.66 billion in equipment such as semiconductor materials manufacturing facilities.
Depreciation and amortization are expected to increase in 2024, reaching ¥3.35 billion for the full year.
8,666 | Millions of yen |
5,000 | 4,776 | ||||||
Capital expenditures | |||||||
Depreciation | |||||||
R&D expenses | 3,350 | ||||||
2,452 | 2,448 | 2,439 | |||||
2,304 | 2,330 | ||||||
2,085 | 1,843 | ||||||
1,646 | 1,436 | ||||||
1,380 | |||||||
1,289 | 1,169 | 1,233 | 1,191 | ||||
1,209 | |||||||
FY11/20 | FY11/21 | FY11/22 | FY11/23 | FY11/24 | 3Q |
*(Dotted line: Forecast)
The performance forecasts and business plans described in this document are current forecasts and plans based on currently available information. Therefore, actual results may differ significantly due to various factors and risks, and no promises or guarantees are made.
Inquiries
We lead the world with specialty acrylates
IR & PR Group, Administration DivisionOSAKA ORGANIC CHEMICAL INDUSTRY LTD. TEL: +81-6-6264-5071
Tokyo Stock Exchange, Prime Market: 4187