Consolidated Financial Results for the Six Months Ended September 30, 2021(JPGAAP)
November 11, 2021
Name of listed company: Nissan Chemical Corporation | Stock Exchange: Tokyo |
Code number: 4021 | URL: https://www.nissanchem.co.jp/ |
Representative: YAGI Shinsuke, President | |
Inquiry to: DAIMON Hideki, Executive Officer and Head of Finance and Accounting Department Tel. +81 3 4463 8404 | |
Scheduled submission date of quarterly report: November 12, 2021 | 䚷䚷䚷䚷䚷 Scheduled dividend payment date: December 6, 2021 |
Supplemental information: Yes | |
Financial results meeting : Yes (For institutional investors and analysts) | (Amounts rounded down to the nearest million yen) |
1. Consolidated Financial Results for the Six Months Ended September 30, 2021 (From April 1, 2021 to September 30, 2021)
(1) Consolidated Operating Results | (% indicates the rate of increase/decrease against the same period of the previous year) | ||||||||||
Net sales | Operating | Ordinary | Net income attributable | ||||||||
income | income | to owners of parent | |||||||||
Million yen | % | Million yen | % | Million yen | % | Million yen | % | ||||
Six months ended September 30, 2021 | 91,807 | (2.8) | 21,324 | 18.6 | 22,263 | 22.5 | 16,291 | 17.2 | |||
Six months ended September 30, 2020 | 94,494 | (2.0) | 17,980 | (0.3) | 18,173 | (2.5) | 13,896 | (4.3) |
(Note) Comprehensive income: | Six months ended September 30, 2021 | : 13,772 million yen ,(16.2%) |
Six months ended September 30, 2020 | : 16,436 million yen ,48.7% |
Basic earnings | Diluted net income | ||
per share | per share | ||
Yen | Yen | ||
Six months ended September 30, 2021 | 113.94 | ||
Six months ended September 30, 2020 | 95.96 | ||
(2) Consolidated Financial Position | |||
Total assets | Net assets | Equity ratio | |
Million yen | Million yen | % | |
As of September 30, 2021 | 247,426 | 197,404 | 79.1 |
As of March 31, 2021 | 265,509 | 200,562 | 74.9 |
(Reference) Shareholders' equity: | As of September 30, 2021 | : 195,621 million yen | |||
As of March 31, 2021 | : 198,828 million yen | ||||
2. Cash Dividends | |||||
Cash dividends per share | |||||
First | Second | Third | Year-end | Annual | |
quarter | quarter | quarter | |||
Yen | Yen | Yen | Yen | Yen | |
Year ended March 31, 2021 | 46.00 | 58.00 | 104.00 | ||
Year ending March 31, 2022 | 50.00 | ||||
Year ending March 31, 2022 | 64.00 | 114.00 | |||
(Outlook) | |||||
(Note) Revision of the latest released dividend outlook: Yes |
Please refer to " Revision of Financial Results Outlook, Interim Dividend Payment and Dividend Outlook" for details.
3. Outlook of Consolidated Financial Results for the Fiscal Year Ending March 31, 2022 (From April 1, 2021 to March 31, 2022)
(% indicates the rate of increase/decrease against the same period of the previous year)
Net sales | Operating | Ordinary | Net income attributable | Basic earnings | ||||||||
income | income | to owners of parent | per share | |||||||||
Million yen | % | Million yen | % | Million yen | % | Million yen | % | Yen | ||||
Year ending March 31, 2022 | 205,500 | (1.7) | 47,400 | 11.4 | 48,800 | 11.2 | 36,400 | 8.8 | 255.10 |
(Note) Revision of the latest released outlook of financial results: Yes
(Note) The Company determined to apply "Accounting Standard for Revenue Recognition" (ASJB Statement No. 29) from FY 2021. 㻌㻌As a result, the above earnings outlook is the amount after applying the relevant accounting standards.
Please refer to " Revision of Financial Results Outlook, Interim Dividend Payment and Dividend Outlook" for details.
4. Notes | ||
(1) Changes in significant consolidated subsidiaries | ||
(Changes in specified subsidiaries involving changes in scope of consolidation) | : None | |
(2) Application of special accounting treatment to preparation of quarterly financial statements | : None | |
(3) Changes of accounting policies and accounting estimates, and restatement | ||
1. | Changes of accounting policies due to revisions of accounting standards | : Yes |
2. | Changes of accounting policies other than the above | : None |
3. | Changes in accounting estimates | : None |
4. | Restatements | : None |
(Note) Please refer to [2. Consolidated Financial Statements䚷(4) Notes to Consolidated Financial Statements "(Changes in Accounting Policies)"]䚷on page 10 for further details.
(4) Number of shares outstanding (common shares)
1. | Number of shares outstanding (including treasury shares) | |
As of September 30, 2021 | : 143,000,000 shares | |
As of March 31, 2021 | : 145,000,000 shares | |
2. | Number of treasury shares | |
As of September 30, 2021 | : 612,029 shares | |
As of March 31, 2021 | : 1,351,888 shares | |
3. | Average number of shares outstanding | |
As of September 30, 2021 | : 142,982,238 shares | |
As of September 30, 2020 | : 144,827,351 shares |
(Note) The Company has introduced "Board Benefit Trust (BBT)" based on the resolution of Board of Directors' meeting held on July 30,2019.The shares held by the Trust are included in the number of treasury shares at the end of the period, and they are included in the number of treasury shares deducted in calculating the average number of shares outstanding over the period. The number of shares held by the Trust (included in treasury shares) at the end of the period was 164,000 shares. In addition, the average number of shares held by the Trust during the period was 164,550 shares.
This is not included in the average number of shares outstanding.
- Presentation regarding implementation status of quarterly review procedures The financial release is not subject to quarterly review.
-
Explanations regarding appropriate use of business outlook and other special notes
The business outlook contained in this report is based on information available at the time of disclosure. Actual operating results may differ materially from the outlook due to various factors.
For supplemental information, please refer to our website.
The transcript of financial results briefing will be released on our website as well.
Table of Contents for Attached Materials | ||
1. Qualitative Information on Quarterly Results ........................................................................................................ | 2 | |
(1) | Business Performance .............................................................................................................................. | 2 |
(2) | Financial Position ..................................................................................................................................... | 3 |
(3) | Outlook of Consolidated Financial Results and Other Forward-looking Information .................................................... | 4 |
(4) | Basic Policy on Distribution of Earnings ......................................................................................................... | 4 |
2. Consolidated Financial Statements ................................................................................................................... | 5 | |
(1) | Consolidated Balance Sheets ...................................................................................................................... | 5 |
(2) | Consolidated Statements of Income / Consolidated Statements of Comprehensive Income ......................................... | 7 |
(3) | Consolidated Statements of Cash Flows ........................................................................................................ | 9 |
(4) | Notes to Consolidated Financial Statements .................................................................................................. | 10 |
(Notes on Assumption of Going Concern) ................................................................................................. | 10 | |
(Notes on Significant Changes in Shareholders' Equity) ................................................................................ | 10 | |
(Changes in Accounting Policies) ............................................................................................................ | 10 | |
(Segment Information) ......................................................................................................................... | 11 |
1
1Qualitative Information on Quarterly Results
(1) Business Performance
During the second quarter of the current fiscal year (April 1, 2021 to September 30, 2021), the domestic economy failed to achieve a full- fledged recovery due to sluggish personal consumption, which had shown signs of recovery due to the recurrence and extension of the declaration of emergency situations. Export demand making a firm start got dull due to Chinese economic slowdown, which also affected delayed economic recovery. Under these circumstances, sales of Basic Chemicals and Fine Chemicals increased in the Chemicals Segment. In the Performance Materials Segment, Display Materials, Semiconductor Materials and Inorganic materials performed well. In the Agricultural Chemicals Segment, although shipments remained at the same level as the previous year, sales decreased due to the adoption of the "Accounting Standards for Revenue Recognition." In the Pharmaceuticals Segment, although sales of drug discovery decreased, sales of "Custom Chemicals" (custom manufacturing and process researching services for pharmaceutical companies) increased.
As a result, business performances for this period were as follows. Sales were below the same period of previous fiscal year, however operating income, ordinary income, and net income attributable to owners of parent achieved record highs and exceeded the outlook announced in May.
(Million yen, amount rounded down to the nearest million yen) | ||||||
2Q FY2020 | 2Q FY2021 | Change | 2Q FY2021 | Change from | ||
(Outlook) | Outlook | |||||
Sales | 94,494 | 91,807 | (2,686) | 76,500 | +15,307 | |
Operating income | 17,980 | 21,324 | +3,343 | 17,700 | +3,624 | |
Ordinary income | 18,173 | 22,263 | +4,089 | 18,000 | +4,263 | |
Net income attributable | 13,896 | 16,291 | +2,394 | 14,000 | +2,291 | |
to owners of parent | ||||||
The Company adopted "Accounting Standard for Revenue Recognition" (ASBJ Statement No.29, revised on March 31, 2020) and other standards from the first quarter of the fiscal year ending March 31, 2022. For supplemental information, please refer to [2.Consolidated Financial Statement (4) Notes to Consolidated Financial Statements "(Changes in Accounting Policies)"] on page 10.
Explanations by segments are as below.
The Chemicals Segment
In Basic Chemicals, sales of melamine (adhesives agent for particle board) and high purity sulfuric acid (agent used for cleaning semiconductor) increased. In Fine Chemicals, sales of "TEPIC" (powder coating agent for paint, sealants, etc.) and cyanuric acid (raw material for sterilizing and disinfecting agents) of environmental chemicals also performed well.
As a result, sales of this segment were 17,085 million yen (an increase of 2,373 million yen) and operating income was 1,172 million yen (an increase of 1,311 million yen). Compared to the outlook (Note), sales were above 0.4 billion yen and operating income was above 0.2 billion yen.
(Note) The outlook is described on page 19 and 20 of the FY2021 Presentation Materials. (announced on May 14, 2021)
The Performance Materials Segment
In Display Materials, sales of "SUNEVER" (LCD alignment coating) for tablets and notebook PCs performed well. In Semiconductor Materials, sales of anti-reflective coating for semiconductors (ARC®*) and multilayer materials (OptiStack®*) increased, reflecting favorable operation by customers. In Inorganic materials, sales of "SNOWTEX" for polishing electronic materials and hard coating, and Organo / Monomer sol (various kinds of coating materials, resin additive) were steady. Sales of Oilfield materials (for enhancing oil recovery) increased.
As a result, sales of this segment were 39,555 million yen (an increase of 4,962 million yen) and operating income was 13,178 million yen (an increase of 2,444 million). Compared to the outlook (Note), sales were above 2.4 billion yen and operating income was above 1.6 billion yen. (Note) The outlook is described on page 19 and 20 of the FY2021 Presentation Materials. (announced on May 14, 2021)
- *ARC®, OptiStack® are registered trademarks of Brewer Science, Inc.
2
The Agricultural Chemicals Segment
Sales of Fluralaner (active ingredients for veterinary pharmaceuticals) declined due to a decrease in shipments caused by the impact of customer inventories and other factors, although royalty income was strong. In the domestic segment, sales of "ROUNDUP" (non-selective leaf treatment herbicide) were firm, and "DITHANE" (fungicide), which was acquired in the third quarter of FY2020, contributed to sales. On the other hand, shipments of "ALTAIR" (paddy rice herbicide) and "GRACIA" (insecticide) declined. In the overseas segment, sales of "GRACIA" decreased, but sales of "TARGA" (herbicide), "SANMITE" (insecticide and acaricide) and "QUINTEC" (fungicide) performed well. In addition, sales and operating income decreased due to adoption of the "Accounting Standards for Revenue Recognition."
As a result, sales of this segment were 24,950 million yen (a decrease of 795 million yen) and operating income was 6,991 million yen (a decrease of 803 million yen). Compared to the outlook (Note), sales were above 0.2 billion yen and operating income was above 1.2 billion yen.
(Note) The outlook is described on page 19 and 20 of the FY2021 Presentation Materials. (announced on May 14, 2021)
The Pharmaceuticals Segment
Sales of "LIVALO" (anti-cholesterol drug) increased in Japan, but decreased overseas due to the impact of increased sales of generic drugs. In "Custom Chemicals", sales of active pharmaceutical ingredients (generic) increased.
As a result, sales of this segment were 3,340 million yen (an increase of 314 million yen) and operating income was 451 million yen (an increase of 425 million yen). Compared to the outlook (Note), sales were above 0.4 billion yen and operating income was above 0.3 billion yen.
(Note) The outlook is described on page 19 and 20 of the FY2021 Presentation Materials. (announced on May 14, 2021)
Trading
Sales of this segment were 36,441 million yen (an increase of 2,704 million yen) and operating income was 1,255 million yen (an increase of 13 million yen). Compared to the outlook (Note), sales were above 2.9 billion yen and operating income was above 0.2 billion yen.
(Note) The outlook is described on page 19 and 20 of the FY2021 Presentation Materials. (announced on May 14, 2021)
Others
Sales of this segment were 10,373 million yen (an increase of 960 million yen) and operating loss was 3 million yen (a decrease in profit of 49 million yen).
(2) Financial Position
(Position of Assets, Liabilities and Net Assets)
Total assets as of September 30, 2021 was 247,426 million yen (a decrease of 18,082 million yen from March 31, 2021). It is mainly due to the decrease of notes and accounts receivable - trade.
Also, total liabilities as of September 30, 2021 was 50,022 million yen (a decrease of 14,924 million yen). It is mainly due to the decrease of short-term loans payable.
Net assets as of September 30, 2021 was 197,404 million yen (a decrease of 3,158 million yen). As a result of these factors, equity ratio was 79.1% (an increase of 4.2% from March 31, 2021).
(Position of Cash Flow)
Deducting income taxes paid from income before income taxes and non-controlling interests, depreciation and gain and loss on working capital, net cash provided by operating activities for the six months ended September 30, 2021 was 33,765 million yen (33,629 million yen for the same period of the previous year).
Due to the investment on plant and equipment, net cash used in investing activities for the six months ended September 30, 2021 was 6,091 million yen (2,585 million yen).
Due to the decrease in loans payable, payment for dividends and share repurchase, net cash used in financing activities for the six months ended September 30, 2021 was 31,560 million yen (32,770 million yen).
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Nissan Chemical Industries Ltd. published this content on 11 November 2021 and is solely responsible for the information contained therein. Distributed by Public, unedited and unaltered, on 11 November 2021 06:16:04 UTC.