Consolidated Financial Statements for the Fiscal Year Ended March 31, 2022
May 10, 2022
These financial statements have been prepared for reference only in accordance with accounting principles and practices generally accepted in Japan.
NAGASE & CO., LTD. | Stock exchange listing: Tokyo (Prime Market) | |
Code number: | 8012 | URL (https://www.nagase.co.jp/english/) |
Representative: | Kenji Asakura, Representative Director and President | |
Contact: | Yoshihisa Shimizu, Executive Officer, General Manager, Corporate Management Department | |
TEL: | +81-3-3665-3103 |
Annual general meeting of stockholders (scheduled): June 20, 2022
Start of distribution of dividends (scheduled): June 21, 2022
Securities report filing (scheduled): June 21, 2022
Supplementary documents: Yes
Investors' meeting: Yes
(Note: Amounts have been rounded down to the nearest million yen.)
1. Consolidated Results for the Fiscal Year Ended March 31, 2022 (April 1, 2021 to March 31, 2022)
(1) Consolidated Operating Results
(% = year-on-year change)
Net sales | Gross profit | Operating income | Ordinary income | Profit attributable to | ||||||||
owners of the parent | ||||||||||||
Millions of yen | % | Millions of yen | % | Millions of yen | % | Millions of yen | % | Millions of yen | % | |||
FYE March 2022 | 780,557 | 24.8 | 139,494 | 21.7 | 35,263 | 60.9 | 36,497 | 59.7 | 25,939 | 37.8 | ||
FYE March 2021 | 625,245 | - | 114,600 | 9.2 | 21,916 | 14.3 | 22,854 | 19.8 | 18,829 | 24.3 | ||
(Notes) 1. Comprehensive income | FYE March 2022: | ¥28,608 million (10.3% decrease) |
FYE March 2021: ¥31,887 million (790.7%)
2. At the beginning of the fiscal year ended March 2022, the Company adopted the Accounting Standard for Revenue Recognition (Accounting Standards Board of Japan (ASBJ) Statement No. 29, March 31, 2020). Results for the fiscal year ended March 2021 reflect a retroactive application of this accounting standard. As a result, net sales affected by this retroactive application do not show the year-on-year rate of change in the fiscal year ended March 2021.
Earnings per | Earnings per | Return on equity | Ordinary income/ | Operating | ||||
share | share (diluted) | total assets | income/net sales | |||||
Yen | Yen | % | % | % | ||||
FYE March 2022 | 213.46 | − | 7.7 | 5.3 | 4.5 | |||
FYE March 2021 | 151.91 | − | 5.9 | 3.7 | 3.5 | |||
(Reference)Equity in earnings of affiliates | FYE March 2022: | (¥1,031) million | ||||||
FYE March 2021: | (¥327) million |
(2) Consolidated Financial Position | ||||||||
Total assets | Net assets | Shareholders' | Net assets per share | |||||
equity ratio | ||||||||
Millions of yen | Millions of yen | % | Yen | |||||
FYE March 2022 | 739,720 | 355,092 | 46.5 | 2,868.22 | ||||
FYE March 2021 | 640,587 | 338,431 | 51.5 | 2,670.09 | ||||
(Reference)Equity capital | FYE March 2022: | ¥344,261 million | ||||||
FYE March 2021: | ¥329,687 million |
(3) Consolidated Cash Flows
Cash flows from | Cash flows from | Cash flows from | Cash and cash | |
equivalents, end of the | ||||
operating activities | investing activities | financing activities | ||
year | ||||
Millions of yen | Millions of yen | Millions of yen | Millions of yen | |
FYE March 2022 | (17,776) | (7,664) | 27,282 | 53,336 |
FYE March 2021 | 20,391 | 2,643 | (25,866) | 48,553 |
2. Dividends
Annual Dividends per Share | Total dividends | Payout ratio | Dividends/ | |||||
1Q | 2Q | 3Q | Fiscal | Annual | paid | net assets | ||
(consolidated) | ||||||||
year end | (full fiscal year) | (consolidated) | ||||||
Yen | Yen | Yen | Yen | Yen | Millions of yen | % | % | |
FYE March 2021 | − | 22.00 | − | 24.00 | 46.00 | 5,691 | 30.3 | 1.8 |
FYE March 2022 | − | 24.00 | − | 30.00 | 54.00 | 6,514 | 25.1 | 1.9 |
FYE March 2023 (forecast) | − | 30.00 | − | 30.00 | 60.00 | 24.7 |
(Note) A year-end dividend for FYE March 2022 includes regular dividend of ¥24 per share and special dividend of ¥6 per share.
3. Consolidated Earnings Forecast for the Fiscal Year Ending March 31, 2023 (April 1, 2022 to March 31, 2023)
(% = year-on-year change)
Gross profit | Operating income | Ordinary income | Profit attributable to | Earnings per | |||||||
owners of the parent | share | ||||||||||
Millions of yen | % | Millions of yen | % | Millions of yen | % | Millions of yen | % | Yen | |||
Full fiscal year | 159,000 | 14.0 | 38,000 | 7.8 | 39,000 | 6.9 | 28,500 | 9.9 | 241.35 |
* Notes
(1) Changes in major subsidiaries during the period (changes in specified subsidiaries accompanying changes in the
scope of consolidation): No | |||
New: ― (Company name: | ) | Excluded: ― (Company name: | ) |
- Changes in accounting policies, changes in accounting estimates, and restatement of prior period financial statements after error corrections
- Changes in accordance with revisions to accounting and other standards: Yes
- Changes in items other than (i) above: No
- Changes in accounting estimates: No
- Restatement of prior period financial statements after error corrections: No
(Note) For details, please refer to 3. Consolidated Financial Statements and Notes (5) Notes Related to Consolidated Financial Statements (Change in Accounting Policy), on P.16 of this document.
- Number of shares issued and outstanding (common stock)
i. Number of shares issued and outstanding as of the fiscal period end (including treasury stock)
March 31, 2022 | 120,908,285 shares | March 31, 2021 | 124,408,285 shares |
- Number of treasury stock as of the fiscal period end
March 31, 2022 | 881,767 shares | March 31, 2021 | 933,995 shares |
- Average number of shares during the period
March 31, 2022 | 121,522,286 shares | March 31, 2021 | 123,955,784 shares |
- These consolidated financial statements are not subject to audit by an independent audit corporation
- Cautionary Statement with Respect to Forecasts of Consolidated Business Results
The earnings forecasts presented in this document are based upon currently available information and assumptions deemed rational. A variety of factors could cause actual results to differ materially from forecasts.
For matters related to earnings forecasts, please refer to 1. Business Performance, (4) Future Outlook, on P.6 of this document.
NAGASE & CO., LTD. (8012) | ||
Consolidated Financial Statements for the Fiscal Year Ended March 31, 2022 | ||
Attachments | ||
1. Business Performance | 2 | |
(1) | Review of Business Performance | 2 |
(2) | Review of Financial Position | 5 |
(3) | Summary of Cash Flows | 5 |
(4) | Future Outlook | 6 |
(5) | Dividend Policy and Dividends for the Fiscal Years Ending March 2021 and 2022 | 7 |
2. Basic Policy on the Selection of Accounting Standards | 7 | |
3. Consolidated Financial Statements and Notes | 8 | |
(1) | Consolidated Balance Sheets | 8 |
(2) | Consolidated Statements of Income and Consolidated Statements of Comprehensive Income | 10 |
(3) | Consolidated Statements of Changes in Shareholders' Equity | 12 |
(4) | Consolidated Statements of Cash Flows | 14 |
(5) | Notes Related to Consolidated Financial Statements | 16 |
(Assumption for Going Concern) | 16 | |
(Change in Accounting Policy) | 16 | |
(Additional Information) | 16 | |
(Segment Information, etc.) | 17 | |
(Per-Share Data) | 23 | |
(Significant Subsequent Events) | 23 |
- 1 -
NAGASE & CO., LTD. (8012)
Consolidated Financial Statements for the Fiscal Year Ended March 31, 2022
1. Business Performance
- Review of Business Performance a. General Summary of Results
The global economy during the consolidated fiscal year under review experienced a general recovery in activities that had been stagnant due to the spread of COVID-19, as regulations were eliminated or eased in response to the progress of a third round of vaccinations across various countries. Throughout the year, uncertainty intensified due to soaring raw materials prices, the impact of semiconductor shortages, ongoing logistics disruptions, and the escalation of the situation in Ukraine. However, it was also a year in which many felt we were entering an era of the new normal.
Among the regions where the NAGASE Group operates, economic activity remained strong particularly in Greater China, which demonstrated a significant recovery. In North America, recovery in employment and expansion of personal consumption resulted in stabilized economic activity overall. In Japan, corporate earnings improved; however, measures to prevent infections had a limiting effect on personal consumption and failed to generate a significant economic recovery.
In this environment, the NAGASE Group contributed to the maintenance of supply chains in related industries and experienced earnings growth. As a result of the preceding, earnings for the current consolidated fiscal year were as follows.
(Millions of yen)
Prior Consolidated | Current Consolidated | |||
Fiscal Year | Fiscal Year | Change | Change (%) | |
(March 31, 2021) | (March 31, 2022) | |||
Net sales | 625,245 | 780,557 | 155,312 | 24.8 |
Gross profit | 114,600 | 139,494 | 24,894 | 21.7 |
Operating income | 21,916 | 35,263 | 13,346 | 60.9 |
Ordinary income | 22,854 | 36,497 | 13,643 | 59.7 |
Profit before income taxes | 29,272 | 39,557 | 10,284 | 35.1 |
Profit attributable to owners | 18,829 | 25,939 | 7,109 | 37.8 |
of the parent | ||||
- At the beginning of the current consolidated fiscal year, the Company adopted the Accounting Standard for Revenue Recognition (ASBJ Statement No. 29, March 31, 2020). Indicators for the previous fiscal year reflect a retroactive application
of this accounting standard.
- For performance in the current fiscal year, higher profit in all segments resulted in all stages of profit below gross profit reaching record highs.
- Factors behind the higher profits were the recovery of the automobile-related business, which was greatly affected by COVID-19 in the first half of the prior consolidated fiscal year, the continued strong performance of the electronics-related business and resins business from the second half of the prior consolidated fiscal year, and performance of the Prinova Group in the Life & Healthcare Segment driving up profits. For details, see b. Segment Summary.
- Profit attributable to owners of the parent amounted to ¥25.9 billion, up ¥7.1 billion, mainly due to the impact of loss on valuation of investment securities and impairment losses, despite an increase in ordinary income of ¥13.6 billion.
- 2 -
NAGASE & CO., LTD. (8012)
Consolidated Financial Statements for the Fiscal Year Ended March 31, 2022
- Segment Summary
The following describes performance by segment.
Note that from the beginning of the current consolidated fiscal year, the names and categorizations for reportable segments have been partially amended. Year-on-year amounts and ratios for the previous fiscal year are calculated after rearranging reportable segment classifications to match those of the current fiscal year.
Functional Materials | ||||
(Millions of yen) | ||||
Prior Consolidated | Current Consolidated | |||
Fiscal Year | Fiscal Year | Change | Change (%) | |
(March 31, 2021) | (March 31, 2022) | |||
Net sales | 75,294 | 99,874 | 24,580 | 32.6 |
Gross profit | 15,562 | 19,819 | 4,256 | 27.4 |
Operating income | 4,712 | 7,823 | 3,111 | 66.0 |
The major factors behind performance were as follows.
- Raw materials sales recovered for coating and urethane raw materials as well as those related to processing industrial oil solutions and plastic materials, driven by a recovery in automobile production
- Sales trended strong in areas like electronics chemicals for the electronics industry, such as for semiconductor- related products
- Operating income increased due to an increase in gross profit
Advanced Materials & Processing | ||||
(Millions of yen) | ||||
Prior Consolidated | Current Consolidated | |||
Fiscal Year | Fiscal Year | Change | Change (%) | |
(March 31, 2021) | (March 31, 2022) | |||
Net sales | 209,715 | 257,283 | 47,568 | 22.7 |
Gross profit | 26,816 | 32,313 | 5,497 | 20.5 |
Operating income | 7,311 | 10,858 | 3,546 | 48.5 |
The major factors behind performance were as follows.
- Sales increased for resins in the office equipment, appliance, and video game device markets due to increased demand, and profitability improved due to soaring market conditions
- Sales increased for resins for industrial and packaging applications, as well as dyes and additives, due to recovery in demand
- Sales decreased for digital print processing materials and conductive materials
- Operating income increased due to an increase in gross profit
- 3 -
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Nagase & Co. Ltd. published this content on 31 May 2022 and is solely responsible for the information contained therein. Distributed by Public, unedited and unaltered, on 31 May 2022 04:29:06 UTC.