Financial Results for the Second Quarter Ended September 30, 2023
[According to IFRS] (Consolidated)
November 9, 2023 | |||||
Name of Listed Company | UACJ Corporation | ||||
Stock Exchange Listings | Tokyo | ||||
Code Number | 5741 | URL https://www.uacj.co.jp/english/ | |||
Representative | (Title) | Representative Director | |||
(Name) | Miyuki Ishihara | ||||
Contact Person | (Title) | General Manager, Accounting Department, Finance and Accounting Division | |||
(Name) | Atsushi Hashimoto | Phone | +81-3-6202-2600 | ||
Scheduled date for submitting financial statements November 13, 2023 | Scheduled Date of Dividend | December 1, 2023 | |||
Distribution |
Supplementary materials available on quarterly financial results: Yes
Quarterly results briefing: Yes | (For institutional investors and securities analysts) |
Note: Figures have been rounded to the nearest million yen. |
1. Consolidated Business Performance for the Second Quarter Ended September 30, 2023 (from April 1, 2023 to September 30, 2023)
(1) Consolidated business performance (cumulative)
Profit attributable to | Total | ||||||||||||||||||||
Revenue | Operating income | Profit before tax | Profit | comprehensive | |||||||||||||||||
owners of parent | |||||||||||||||||||||
income | |||||||||||||||||||||
Six months ended | ¥million | % | ¥million | % | ¥million | % | ¥million | % | ¥million | % | ¥million | % | |||||||||
September 30, 2023 | 434,943 | (13.2) | 12,902 | (20.0) | 10,123 | (36.0) | 5,894 | (43.8) | 4,549 | (51.7) | 27,157 | (31.1) | |||||||||
September 30, 2022 | 501,127 | - | 16,136 | - | 15,827 | - | 10,479 | - | 9,410 | - | 39,399 | - | |||||||||
Basic earnings per share | Diluted earnings per share | ||||||||||||||||||||
Six months ended | ¥ | ¥ | |||||||||||||||||||
September 30, 2023 | 94.33 | - | |||||||||||||||||||
September 30, 2022 | 195.13 | - | |||||||||||||||||||
(2) Consolidated financial position | |||||||||||||||||||||
Total assets | Total equity | Equity attributable to owners | Ratio of equity attributable to | ||||||||||||||||||
of parent | owners of parent to total | ||||||||||||||||||||
assets | |||||||||||||||||||||
As of: | ¥million | ¥million | ¥million | % | |||||||||||||||||
September 30, 2023 | 938,304 | 289,273 | 265,594 | 28.3 | |||||||||||||||||
March 31, 2023 | 895,731 | 267,987 | 246,495 | 27.5 | |||||||||||||||||
2. Dividends | |||||||||||||||||||||
Annual dividends | |||||||||||||||||||||
1st quarter | 2nd quarter | 3rd quarter | Year-end | Total | |||||||||||||||||
Year ended/ending: | ¥ | ¥ | ¥ | ¥ | ¥ | ||||||||||||||||
March 31, 2023 | - | 0.00 | - | 85.00 | 85.00 | ||||||||||||||||
March 31, 2024 | - | 45.00 | |||||||||||||||||||
March 31, 2024 | - | 45.00 | 90.00 | ||||||||||||||||||
(Forecasts) | |||||||||||||||||||||
(Note) Changes in dividend forecast during the quarter under review: Yes
For details, please refer to "Notice Regarding Dividends from Surplus (Interim Dividend)" announced on November 9, 2023.
3. Forecast for Consolidated Business Performance in the Term Ending March 31, 2024 (from April 1, 2023 to March 31, 2024)
(% indicates year-on-year change)
Revenue | Operating income | Profit attributable to owners | Basic earnings per share | ||||||
of parent | |||||||||
¥million | % | ¥million | % | ¥million | % | ¥ | |||
Full year | 880,000 | (7.8) | 27,000 | 152.4 | 11,000 | - | 228.12 | ||
(Note) Changes in consolidated business performance forecasts during the quarter under review: Yes
For details, please refer to "1. Qualitative Information on Results for the Second Quarter Ended September 30, 2023 (3) Forecast for Consolidated Business Performance."
Notes
- Changes in significant subsidiaries during the period (Changes in the scope of consolidation of specific subsidiaries): None
- Changes in accounting policies, changes in estimates
- Changes in accounting policies required by IFRS: None
- Changes in accounting policies other than a. above: None
- Changes in accounting estimates: None
- Number of shares outstanding (common stock)
- Number of shares issued at the end of the period (including treasury stock)
- Number of shares of treasury stock at the end of the period
- Average number of shares outstanding during the period (calculated cumulatively from the beginning of the fiscal year)
As of September 30, | 48,328,193 shares | As of March 31, 2023 | 48,328,193 shares |
2023 | |||
As of September 30, | 107,899 shares | As of March 31, 2023 | 106,933 shares |
2023 | |||
For the six months | For the six months | ||
ended September | 48,220,787 shares | ended September | 48,222,433 shares |
30, 2023 | 30, 2022 | ||
*These financial results are outside the scope of auditing by certified public accountants or accounting auditors.
*Explanations pertaining to appropriate use of information concerning future forecasts
The operating results forecasts and certain other statements contained in this document are forward-looking statements that are rationally determined based on information available to the UACJ Group at the time the results were announced. Actual performance may differ substantially from these projections due to fluctuations in the economy or a variety of other known and unknown factors.
(Application of International Accounting Standards (IFRS))
The UACJ Group has applied International Accounting Standards ("IFRS") from the three months ended June 30, 2023. In addition, financial data for the six months ended September 30, 2022, and for the fiscal year ended March 31, 2023, are presented in accordance with IFRS.
Please refer to "2. Condensed Quarterly Consolidated Financial Statements and Main Notes (4) Notes to the Condensed Quarterly Consolidated Financial Statements (First-Time Adoption)" on page 12 of the attached materials for information concerning the differences in financial data between IFRS and Japanese Accounting Standards.
List of attachments
1. Qualitative Information on Results for the Second Quarter Ended September 30, 2023…………………… | 2 | |
(1) | Explanation of operating results…………………………………………………………………………………… | 2 |
(2) | Consolidated Financial Position…………………………………………………………………………………… | 2 |
(3) | Forecast for Consolidated Business Performance ……………………………………………………………… | 3 |
2. Condensed Quarterly Consolidated Financial Statements and Main Notes……………………………………… | 4 | |
(1) | Condensed Quarterly Consolidated Statements of Financial Position………………………………………… | 4 |
(2) | Condensed Quarterly Consolidated Statements of Income and Condensed Comprehensive Income…… | 6 |
(3) | Condensed Quarterly Consolidated Statement of Changes in Equity………………………………………… | 8 |
(4) | Notes to the Condensed Quarterly Consolidated Financial Statements……………………………………… | 10 |
(Notes on the Assumption of a Going Concern) ………………………………………………………………… | 10 | |
(Segment Information) ……………………………………………………………………………………………… | 10 | |
(First-Time Adoption) ………………………………………………………………………………………………… | 12 |
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1. Qualitative Information on Results for the Second Quarter Ended September 30, 2023
The UACJ Group has applied International Accounting Standards ("IFRS") from the three months ended June 30, 2023. In addition, financial data for the six months ended September 30, 2022, and the fiscal year ended March 31, 2023, have also been reclassified to IFRS for comparative analysis.
Please refer to "2. Condensed Quarterly Consolidated Financial Statements and Main Notes (4) Notes to the Condensed Quarterly Consolidated Financial Statements (First-Time Adoption)" on page 12 of the attached materials for information concerning the differences in financial data between IFRS and Japanese Accounting Standards.
(1) Explanation of operating results
During the six months ended September 30, 2023, although restrictions on economic activities put in place to counter COVID-19 were progressively lifted, the global economy was also affected by the prolongation of Russia's invasion of Ukraine, and the raising of interest rates in the United States and elsewhere to control inflation. As for the Japanese economy, progress was made in balancing measures to prevent infection with economic activity, such as the reclassification of COVID-19 as a Class 5 disease, and business conditions showed signs of a pickup centered on personal consumption and inbound tourist demand. However, with increased geopolitical risks, soaring resource prices, and higher prices caused by the weaker yen, the outlook for the environment in which the Company operates remains uncertain.
In this environment, declines in sales volume, falling aluminum ingot prices and other factors resulted in consolidated revenue of ¥434,943 million (down 13.2% year on year). Regarding income, the decline in sales volume and the negative impact of inventories led to consolidated operating income of ¥12,902 million (down 20.0% year on year), consolidated ordinary income before tax of ¥10,123 million (down 36.0% year on year), and net income attributable to owners of the parent of ¥4,549 million (down 51.7% year on year).
Information by segment is as follows.
Flat Rolled Products Business
In the aluminum flat-rolled products industry, demand for sheet materials in Japan fell year on year. In addition to falling demand for can stock, which was caused by reduced demand for drinking at home as a result of increased events and opportunities for eating out, downturns in areas such as semiconductor production equipment, electrical machinery, and construction led to a year-on-year decrease in domestic demand. Overall demand for extruded products declined year on year, despite a year-on-year increase in the area of automotive materials.
The UACJ Group's domestic sales volume of sheet materials for can stock declined slightly year on year, and although sheet materials used in automotive materials were strong compared with the previous year, the UACJ Group's overall domestic sales volume declined year on year due to downturns in semiconductor production equipment, electrical machinery, and construction. Similarly, extruded products also declined year on year against a background of falling demand.
Overseas sales volume of the Group fell year on year, owing to decreases in can stock at Tri-Arrows Aluminum Inc. and UACJ (Thailand) Co., Ltd., which resulted in a year-on-year decline in the UACJ Group's total volume of flat-rolled products.
As a result of the above, revenue in the Flat Rolled Products Business was ¥374,265 million (down 15.8% year on year), due to factors such as a decrease in sales volume and falling prices of aluminum ingots. Operating income came to ¥16,565 million (down 6.9% year on year), due to declining sales volume and the negative impact of inventories.
Precision-Machined Components and Related Businesses
Due to a recovery in automobile-related demand after the easing of the semiconductor shortage and the launch of new components in North America, revenue came to ¥103,920 million (up 1.5% year on year), and operating income was ¥2,116 million (up 73.3% year on year).
(2) Consolidated Financial Position
Due to the increase in inventories, the impact of foreign exchange conversion, and other factors, total assets as of September 30, 2023, amounted to ¥938,304 million (up 4.8% from March 31, 2023), and total liabilities were up 3.4% to ¥649,031 million.
Due to the recording of net income attributable to owners of the parent and increases in foreign currency translation adjustments, total shareholders' equity was ¥289,273 million (up 7.9%).
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(3) Forecast for Consolidated Business Performance
Owing to the decline in revenue and the negative impact of inventories caused by falling aluminum ingot prices, the Company has revised forecasts of consolidated business performance announced on May 11, 2023.
The Company expects revenue of ¥880,000 million, operating income of ¥27,000 million, and net income attributable to owners of the parent of ¥11,000 million.
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2. Condensed Quarterly Consolidated Financial Statements and Main Notes
- Condensed Quarterly Consolidated Statements of Financial Position
(Millions of yen) | ||||||
Date of transition | Previous fiscal year | Current fiscal year | ||||
(as of March 31, | (as of September 30, | |||||
(April 1, 2022) | ||||||
2023) | 2023) | |||||
Assets | ||||||
Current assets | ||||||
Cash and cash equivalents | 22,962 | 23,357 | 32,560 | |||
Trade and other receivables | 161,344 | 158,994 | 166,079 | |||
Inventories | 242,392 | 228,662 | 239,329 | |||
Other financial assets | 10,918 | 11,848 | 9,821 | |||
Other current assets | 9,820 | 14,789 | 13,474 | |||
Total current assets | 447,436 | 437,650 | 461,262 | |||
Non-current assets | ||||||
Property, plant and equipment | 357,693 | 365,655 | 378,786 | |||
Right-of-use assets | 4,370 | 6,900 | 8,714 | |||
Goodwill and intangible assets | 41,441 | 42,856 | 44,372 | |||
Investment property | 5,731 | 5,573 | 5,690 | |||
Investments accounted for using equity | 14,756 | 17,220 | 18,362 | |||
method | ||||||
Other financial assets | 9,657 | 9,927 | 11,554 | |||
Retirement benefit assets | 150 | 150 | 175 | |||
Deferred tax assets | 9,004 | 7,202 | 6,063 | |||
Other non-current assets | 2,497 | 2,599 | 3,326 | |||
Total non-current assets | 445,299 | 458,081 | 477,042 | |||
Total assets | 892,735 | 895,731 | 938,304 | |||
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(Millions of yen) | ||||||
Date of transition | Previous fiscal year | Current fiscal year | ||||
(as of March 31, | (as of September 30, | |||||
(April 1, 2022) | ||||||
2023) | 2023) | |||||
Liabilities and equity | ||||||
Liabilities | ||||||
Current liabilities | ||||||
Trade and other payables | 143,227 | 139,375 | 137,244 | |||
Loans payable | 150,024 | 163,921 | 177,364 | |||
Lease obligations | 1,270 | 1,310 | 1,303 | |||
Income taxes payable | 3,344 | 439 | 1,538 | |||
Other financial liabilities | 59,970 | 53,947 | 55,956 | |||
Provisions | 152 | 138 | 1,166 | |||
Other current liabilities | 13,962 | 12,487 | 13,383 | |||
Total current liabilities | 371,949 | 371,617 | 387,954 | |||
Non-current liabilities | ||||||
Loans payable | 196,272 | 176,462 | 183,016 | |||
Lease obligations | 4,304 | 6,810 | 9,103 | |||
Other financial liabilities | 28,254 | 31,463 | 27,222 | |||
Retirement benefit obligations | 18,554 | 18,256 | 18,630 | |||
Provisions | 1,153 | 1,112 | 1,079 | |||
Deferred tax liabilities | 12,758 | 17,429 | 17,241 | |||
Other non-current liabilities | 4,336 | 4,595 | 4,786 | |||
Total non-current liabilities | 265,632 | 256,127 | 261,077 | |||
Total liabilities | 637,581 | 627,744 | 649,031 | |||
Equity | ||||||
Capital stock | 52,277 | 52,277 | 52,277 | |||
Capital surplus | 79,383 | 79,458 | 79,476 | |||
Retained earnings | 101,881 | 97,782 | 98,319 | |||
Treasury stock | (338) | (341) | (344) | |||
Other components of equity | 2,025 | 17,319 | 35,867 | |||
Total equity attributable to owners of | 235,228 | 246,495 | 265,594 | |||
parent | ||||||
Non-controlling interests | 19,927 | 21,493 | 23,679 | |||
Total equity | 255,155 | 267,987 | 289,273 | |||
Total liabilities and equity | 892,735 | 895,731 | 938,304 | |||
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- Condensed Quarterly Consolidated Statements of Income and Condensed Comprehensive Income (Condensed Quarterly Consolidated Statements of Income)
(Millions of yen) | |||
FY2022 2nd Quarter | FY2023 2nd Quarter | ||
(From April 1, 2022 | (From April 1, 2023 | ||
to September 30, 2022) | to September 30, 2023) | ||
Revenue | 501,127 | 434,943 | |
Cost of sales | (441,792) | (387,529) | |
Gross profit | 59,335 | 47,414 | |
Selling, general and administrative expenses | (40,784) | (34,856) | |
Share of profit (loss) of entities accounted for using | 912 | 756 | |
equity method | |||
Other revenue | 799 | 1,059 | |
Other expenses | (4,126) | (1,471) | |
Operating income | 16,136 | 12,902 | |
Financial revenue | 4,021 | 3,146 | |
Financial expenses | (4,330) | (5,925) | |
Profit before tax | 15,827 | 10,123 | |
Income tax expenses | (5,348) | (4,229) | |
Profit | 10,479 | 5,894 | |
Profit attributable to | |||
Owners of parent | 9,410 | 4,549 | |
Non-controlling interests | 1,069 | 1,345 | |
Profit | 10,479 | 5,894 | |
Earnings per share for the period | |||
Basic earnings per share (¥) | 195.13 | 94.33 | |
Diluted earnings per share for the period (¥) | - | - |
- 6 -
(Condensed Quarterly Consolidated Statements of Comprehensive Income)
(Millions of yen) | ||||
FY2022 2nd Quarter | FY2023 2nd Quarter | |||
(From April 1, 2022 | (From April 1, 2023 | |||
to September 30, 2022) | to September 30, 2023) | |||
Profit | 10,479 | 5,894 | ||
Other comprehensive income | ||||
Items that will not be reclassified to profit or loss | ||||
Net change in fair value of financial assets | (43) | 908 | ||
measured through other comprehensive income | ||||
Remeasurements of defined benefit plans | (10) | 0 | ||
Share of other comprehensive income of | 120 | 106 | ||
investments accounted for using equity method | ||||
Items that may be reclassified to profit or loss | ||||
Exchange differences on translation of foreign | 26,214 | 18,741 | ||
operations | ||||
Effective portion of change in fair value of cash | 863 | 737 | ||
flow hedges | ||||
Share of other comprehensive income of | 1,775 | 770 | ||
investments accounted for using equity method | ||||
Other comprehensive income, net of tax | 28,920 | 21,263 | ||
Comprehensive income | 39,399 | 27,157 | ||
Comprehensive income attributable to | ||||
Owners of parent | 34,560 | 23,183 | ||
Non-controlling interests | 4,839 | 3,974 | ||
Total comprehensive income for the period | 39,399 | 27,157 | ||
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(3) Condensed Quarterly Consolidated Statement of Changes in Equity
First Six Months of the Fiscal Year Ended March 31, 2023 (April 1, 2022 to September 30, 2022)
(Millions of yen) | ||||||||||||
Equity attributable to owners of parent | ||||||||||||
Other components of equity | ||||||||||||
Capital | Retained | Treasury | Exchange | Effective | ||||||||
Capital stock | differences | portion of | ||||||||||
surplus | earnings | stock | on | change in | ||||||||
translation of | fair value of | |||||||||||
foreign | cash flow | |||||||||||
operations | hedges | |||||||||||
Balance as of April 1, 2022 | 52,277 | 79,383 | 101,881 | (338) | - | 700 | ||||||
Profit | - | - | 9,410 | - | - | - | ||||||
Other comprehensive income | - | - | - | - | 24,432 | 675 | ||||||
Comprehensive income | - | - | 9,410 | - | 24,432 | 675 | ||||||
Purchase of treasury stock | - | - | - | (1) | - | - | ||||||
Dividends | - | - | (4,099) | - | - | - | ||||||
Share-based payment | - | 38 | - | - | - | - | ||||||
transactions | ||||||||||||
Transfer from other components | - | - | 86 | - | - | - | ||||||
of equity to retained earnings | ||||||||||||
Total transactions with owners, | ||||||||||||
- | 38 | (4,013) | (1) | - | - | |||||||
etc. | ||||||||||||
Balance as of September 30, | ||||||||||||
52,277 | 79,421 | 107,278 | (339) | 24,432 | 1,375 | |||||||
2022 | ||||||||||||
Balance as of April 1, 2022 Profit
Other comprehensive income Comprehensive income Purchase of treasury stock Dividends
Share-based payment transactions
Transfer from other components of equity to retained earnings Total transactions with owners, etc.
Balance as of September 30, 2022
Equity attributable to owners of parent
Other components of equity
Net change in | Non- | |||||||||
fair value of | Remeasurements | controlling | Total equity | |||||||
financial assets | Total | interests | ||||||||
of defined benefit | ||||||||||
measured | Total | |||||||||
retirement benefit | ||||||||||
through other | ||||||||||
plans | ||||||||||
comprehensive | ||||||||||
income | ||||||||||
1,325 | - | 2,025 | 235,228 | 19,927 | 255,155 | |||||
- | - | - | 9,410 | 1,069 | 10,479 | |||||
(43) | 86 | 25,150 | 25,150 | 3,770 | 28,920 | |||||
(43) | 86 | 25,150 | 34,560 | 4,839 | 39,399 | |||||
- | - | - | (1) | - | (1) | |||||
- | - | - | (4,099) | (943) | (5,042) | |||||
- | - | - | 38 | - | 38 | |||||
- | (86) | (86) | - | - | - | |||||
- | (86) | (86) | (4,062) | (943) | (5,005) | |||||
1,282 | - | 27,089 | 265,725 | 23,823 | 289,548 | |||||
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Disclaimer
UACJ Corp. published this content on 09 November 2023 and is solely responsible for the information contained therein. Distributed by Public, unedited and unaltered, on 14 November 2023 15:05:16 UTC.