Osaka Organic Chemical Industry : Presentation Materials for Financial Results for First Half of the Fiscal Year Ending November 30, 2023 (July 6, 2023 1,076KB)

July 6, 2023

Translation

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 First Half of the Fiscal Year Ending November 30, 2023

Our products are invisible, but used around you.

OSAKA ORGANIC CHEMICAL INDUSTRY LTD.

Tokyo Stock Exchange, Prime Market: 4187

Contents

2

01.		1H FY11/23 Financial Summary

02.	FY11/23 Forecast

03.

Topics

04.

appendix

1H FY11/23 Financial Summary

3

Operating environment

Social and economic activities normalized in response to the relaxation of behavioral restrictions caused by the new coronavirus disease. On the other hand, the outlook remains uncertain due to such factors as soaring raw material prices resulting from rising global prices and rapid exchange rate fluctuations.

Net sales

Sales of chemical products and electronic materials decreased due to sluggish demand for displays and semiconductors. As a result, sales decreased by 11.7% year-on-year to 14,262 million yen.

Operating profit

Operating profit decreased by 41.6% year-on-year to 1,934 million yen due to decreased sales and soaring raw material and fuel prices.

(million yen)

1H FY11/22

results

Net sales

16,144

1H FY11/23

forecast

2023/1/12	2023/4/7
initial forecast	revised forecast

15,900 13,900

2023/05

results

14,262

YoY change

Amount

%

△1,882 △11.7%

Operating profit	3,320	3,150	2,000	1,939	△1,382	△41.6%
Ordinary profit	3,526	3,250	2,100	2,074	△1,452	△41.2%
Profit attributable to	2,448	2,200	1,400	1,606	△843	△34.4%
owners of parent
Price of naphtha in Japan	74,800	72,000		66,750	―	―
(Yen/KL)
Exchange rates	119	133		134	―	―
(Yen/USD)

1H FY11/23 Financial Summary

4

Operating profit decreased by 1.38 billion yen compared to the same period of the previous fiscal year due to decreased sales of chemical products and electronic materials, an increase in cost of sales due to a decrease in inventory valuation, and an increase in fuel and electricity costs.

Decrease in net sales	Decrease in cost of goods sold	Decrease in SG&A
-￥1.88 billion	-￥0.45 billion	-¥0.05 billion

Chemical products	-￥1.07 billion
Electronics materials	-￥0.97 billion
Specialty chemicals	+￥0.16 billion

Decrease in cost of raw materials	-￥0.76 billion	Decrease in transportation	-￥0.02 billion
Inventory write-down	+¥0.26 billion	expenses	Others
Increase in fuel and electricity costs	+¥0.09 billion
Decrease in depreciation	-￥0.07 billion
	Others

	Decrease in net sales			Blue / ↑: Positive factors
			Red / ↓: Negative factors
		Decrease in cost	Slight decrease
		in SG&A
		of goods sold
Operating profit				Operating profit
3.32 billion yen		Operating profit -¥1.38billion		1.93 billion yen
0.00	Change in net sales	Change in cost of goods sold	Change in SG&A
1H FY11/22	1H FY11/23

Results by Segment

5

■ Chemical products

Sales for automotive coatings were firm, but sales of products for display adhesives and UV inkjet inks were sluggish. As a result, both sales and operating profit decreased substantially compared with the previous fiscal year.

■ Electronics materials

In semiconductor materials, sales of raw materials for EUV resists were strong, but demand for raw materials for ArF resists was sluggish, and sales were flat year on year. Sales of display materials were sluggish due to sluggish demand for displays, resulting in lower sales and profits compared with the same period of the previous year.

■ Specialty chemicals

Sales of cosmetic raw materials were strong overseas, but sales of functional materials were sluggish, and sales of high-purity special solvents at a subsidiary were strong. As a result, compared to the same period of the previous year, sales increased but profits decreased.

(billion yen)

Chemical products

Electronics materials

Specialty chemicals

	Net sales							45.8							65.6						31.1
							(YoY: -19.0%)		(YoY: -12.9%)						(YoY: +5.6%)
Operating profit							3.1							10.6						5.6
						(YoY: -42.7%)		(YoY: -48.7%)						(YoY: -18.6%)
										Net sales and operating margin by segment											Chemical products
	Net sales
																					Operating margin
	300						27.4																30
	(billions yen)																				(%)
																											Electronics materials
													22.6
						23.4
																		18.1								Specialty chemicals
											20.1
				29.5										16.2				15
				30.2			31.1							Chemical products
				75.4
					76.7			65.6								(Operating margin)
							9.9															Electronics materials
												4.8						7.0
																								(Operating margin)
				56.5		53.8				45.8
															Specialty chemicals
	0																						0
				First half of 2022	Second half of 2022	First half of 2023						(Operating margin)