Q3 FY2022
Earnings Presentation
2022/11/8
Table of Contents
Ⅰ | Q3 FY2022 Financial Summary | P 3-13 |
Ⅱ | T-2024 Progress Report | P14-17 |
Reference material | P18-21 |
Ⅰ
Q3 FY2022
Financial Summary
FY2022 Business Topics (January-September 2022)
The International Monetary Fund (IMF) announced the outlook for the global economic growth rate on October 11. The growth rate for 2022 remains unchanged at 3.2% from the previous outlook (July) and the outlook for 2023 has been revised downward 0.2% to 2.7% against the backdrop of the energy crisis associated with the situation in Ukraine, monetary tightening by central banks of various countries, and the economic slowdown in China. The IMF pointed out that appropriate measures of monetary and fiscal policies are required to contain inflation.
Amid soaring costs for raw materials and energy around the globe, the company's performance for Q3 continued to be strong with a substantial YoY increase in both net sales and operating income, with 33.1% (33.8% Q2 YoY) for net sales, 58.6% (52.7% Q2 YoY) for operating income, 83.1% (82.7% Q2 YoY) for ordinary income, and 68.6% (62.1% Q2 YoY) for quarterly net income.
Progress against the FY2022 guidance are 80.8% for net sales, 80.0% for operating income, 94.5% for ordinary income, and 80.6% for net income that is beyond the standard progress rate of 75.0% for Q3.
The soaring raw material prices, fuel expenses, transportation costs, etc., caused by rising crude oil prices and the sharp depreciation of the yen are being passed on to product prices in all businesses.
In the graphite electrode business, crude steel production continues to decline, mainly in the major producing countries of Japan and in Europe, due to macroeconomic deterioration caused by the Ukraine crisis. The future upward trend of EAF demand backed by the de-carbonization remains unchanged.
In the carbon black business, operations were at full capacity at bases in Japan, Thailand, and Canada with strong global auto and tire production. The U.S.operation was impacted by the capital investment (e.g. gas scrubbers) to meet U.S. environmental and the associated equipment issues.
In the fine carbon business, continued strong demand remained amid increasing uncertainty in the semiconductor market. High value-added components for semiconductor manufacturing facility produced at subsidiary in Korea is expanding. Rapid growth of advanced driver assistance systems (ADAS) and electric vehicles (EV) are supporting the expanding demand for SiC semiconductors that are the core component for the power semiconductor.
In the smelting and lining business, despite being partially affected by Ukraine crisis, global aluminum production and relining demand in aluminum smelters are strong. Supply and demand of Carbon electrodes have been tight due to a strong demand of polysilicon and aluminum alloys.
In the industrial furnaces and related products business, by increasing growth in the EV, 5G, and IoT related markets led a continued strong demand, despite China operation being partially affected by lockdowns.
Tokai Carbon Q3 FY2022 Earnings Presentation 4
Summary of Consolidated Results
- Reversal in the market for graphite electrodes and increasing growth of markets for fine carbon led to YoY increases in net sales and operating income
- Net sales ¥246.3b, Operating income ¥28.0b, ROS 11.4% (ROS 9.5% YoY)
Millions of yen | |||||
Jan-Sep 2021 | Jan-Sep 2022 | YoY Change | %Change | ||
Net sales | 185,095 | 246,332 | +61,237 | +33.1% | |
Operating income | 17,669 | 28,015 | +10,345 | +58.6% | |
Ordinary income | 17,547 | 32,132 | +14,585 | +83.1% | |
Net income attributable to owners | 9,559 | 16,121 | +6,562 | +68.6% | |
of the parent company | |||||
Group companies As of September 30, 2022 | Average exchange rates: | ||||
2021 | USD1= ¥108.50 | ||||
Consolidated subsidiaries: | 31 | ||||
Equity method affiliates: | 1 | EUR1= ¥129.83 | |||
2022 | USD1= ¥128.05 |
EUR1= ¥135.95
Tokai Carbon Q3 FY2022 Earnings Presentation 5
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Tokai Carbon Co. Ltd. published this content on 08 November 2022 and is solely responsible for the information contained therein. Distributed by Public, unedited and unaltered, on 08 November 2022 00:03:01 UTC.