2nd Quarter Consolidated Financial Results for the Year Ending March 31, 2022
(All financial information has been prepared in accordance with Generally Accepted Accounting Principles in Japan)
November 5, 2021
Company name | : DAICEL CORPORATION |
Stock Exchange on which the shares are listed | : Tokyo Stock Exchange in Japan |
Code number | : 4202 |
URL | : https://www.daicel.com |
Representative | : Yoshimi Ogawa, President and CEO |
Contact person | : Masahiko Hirokawa, Deputy General Manager, Corporate Support Headquarters and |
General Manager, Investor Relations & Corporate Communications | |
Phone +81-3-6711-8121 | |
Scheduled date for submitting financial statements | : November 12, 2021 |
Scheduled date for dividend payment | : December 2, 2021 |
The additional materials of the Financial Results | : Yes |
The briefing session of the Financial Results | : Yes (for institutional investors and analysts) |
1. Consolidated Financial Results for the Six Months Ended September 30, 2021 | (Amounts are rounded down to the nearest million) | |||||||||
(1) Consolidated Operating Results | (% of change from previous year) | |||||||||
Net Sales | Operating profit | Ordinary profit | Profit attributable | |||||||
to owners of parent | ||||||||||
Millions of Yen | % | Millions of Yen | % | Millions of Yen | % | Millions of Yen | % | |||
Six months ended Sep. 30, 2021 | 224,817 | 28.2 | 27,259 | 199.3 | 29,835 | 193.5 | 22,046 | 573.6 | ||
Six months ended Sep. 30, 2020 | 175,346 | (16.8) | 9,107 | (49.0) | 10,166 | (45.5) | 3,273 | (72.0) | ||
(Note) Comprehensive income: 34,891 millions of yen [351.0%] for the six months ended September 30, 2021 and 7,737 millions of yen [14.5%] for the six months ended September 30, 2020
Profit per share | Diluted profit | |
per share | ||
Yen | Yen | |
Six months ended Sep. 30, 2021 | 73.15 | - |
Six months ended Sep. 30, 2020 | 10.78 | - |
(2) Consolidated Financial Position
Total assets | Net assets | Capital adequacy ratio | Net assets per share | |
Millions of Yen | Millions of Yen | % | Yen | |
As of Sep. 30, 2021 | 674,010 | 274,343 | 39.8 | 888.07 |
As of Mar. 31, 2021 | 640,385 | 245,000 | 37.1 | 789.34 |
(Reference) Shareholders' equity: 267,938 millions of yen as of September 30, 2021 and 237,852 millions of yen as of March 31, 2021 2. Dividends
Cash dividends per share | |||||||
(Reference data) | 1st quarter | 2nd quarter | 3rd quarter | 4th quarter | Annual | ||
Yen | Yen | Yen | Yen | Yen | |||
Year ended Mar. 31, 2021 | - | 16.00 | - | 16.00 | 32.00 | ||
Year ending Mar. 31, 2022 | - | 16.00 | |||||
Year ending Mar. 31, 2022 | - | 16.00 | 32.00 | ||||
(Forecast) | |||||||
(Note) Revisions to the latest announced dividend forecast: Not applicable |
3. Forecast of Consolidated Financial Results for the Year Ending March 31, 2022
(% of change from same period of previous year)
Net sales | Operating profit | Ordinary profit | Profit attributable | Profit | |||||||
to owners of parent | per share | ||||||||||
Millions of Yen | % | Millions of Yen | % | Millions of Yen | % | Millions of Yen | % | Yen | |||
Year ending Mar. 31, 2022 | 448,000 | 13.8 | 38,000 | 19.8 | 42,000 | 21.1 | 24,000 | 21.7 | 79.55 | ||
(Note) Revisions to the latest announced forecast of consolidated financial results: Applicable
*Notes
- Changes in significant subsidiaries during the six months ended Sep. 30, 2021: Not applicable (Note) Changes in specified subsidiaries that caused a change in the scope of consolidation
- Adoption of specific accounting methods for presenting quarterly financial statements: Not applicable
- Changes in accounting policies, changes in accounting estimates and restatements
- Changes in accounting policies due to revisions of accounting standards: Applicable
- Changes in accounting policies other than (3)-i: Not applicable ⅲ Changes in accounting estimates: Not applicable
ⅳ Retrospective restatements: Not applicable
- Number of shares issued (common share)
ⅰ Number of shares issued at the end of each period | As of Sep. 30, 2021 | 302,942,682 shares | As of Mar. 31, 2021 | 302,942,682 shares |
(including treasury shares) | ||||
ⅱ Number of treasury shares at the end of each period | As of Sep. 30, 2021 | 1,232,729 shares | As of Mar. 31, 2021 | 1,609,633 shares |
ⅲ Average number of shares during the each period | Six months ended | 301,392,123 shares | Six months ended | 303,557,332 shares |
(Cumulative from the beginning of the fiscal year) | Sep. 30, 2021 | Sep. 30, 2020 | ||
*This Quarter Consolidated Financial Results report is not subject to quarterly review.
*Explanations or other special matters to appropriate use of the forecast of consolidated financial results
The forecast of consolidated financial results and certain other statements contained in this document are forward-looking statements, which are rationally determined based on information currently available to the company. For a variety of reasons, actual performance may differ substantially from these projections.
4. Qualitative Information on the Period under Review
(1) Overview of the operating results
Looking at the world trends during the consolidated second quarter of the fiscal year ending March 2022 (six months ended September 30, 2021), although economic stagnation caused by the spread of COVID-19 has been recovering to some extent, the global economy remained uncertain due to further spread of COVID-19 and has been affected by decline in automobile production because of the semiconductor shortage.
Amid such circumstances, the Daicel Group has steadily seized sales opportunities offered by the recovery in demand and worked on sales price revisions and cost reductions.
Compared to the same period last year which was affected by COVID-19, the sales revenue for the consolidated second quarter of the fiscal year under review totaled 224,817million (up 28.2% year-on-year). On the income front, operating income amounted to 27,259 million (up 199.3% year-on-year), ordinary income was 29,835 million (up 193.5% year-on-year) and net income attribute to owners of the parent was 22,046 million (up 573.6% year-on-year).
Segment information is summarized as follows.
[Medical / Healthcare]
The healthcare business increased in sales revenue due to an increase in sales volume of cosmetic and health food ingredients. The chiral separation business also increased in sales revenue due to an increase in sales volume of optical resolution columns. The overall segment sales came to ¥9,634 million (up 23.8% year-on-year). Operating income amounted to ¥1,896 million (up
132.4% year-on-year) due to an increase of sales volume.
[Smart]
The display business, such as cellulose acetate for optical films, and high-performance films, registered growth in sales revenue due to higher sales volume as a result of a strong demand in LCD panels.
The IC/Semiconductor business, such as solvents for printed electronics and resist materials, increased in sales revenue driven by higher sales volume, and other factors due to a recovery in semiconductor market demand.
The overall segment sales came to ¥15,445 million (up 49.7% year-on-year). Operating income amounted to ¥3,402 million (up 228.4% year-on-year), due to an increase of sales volume and sales price revisions.
[Safety]
As automobile production volume recovered, the automobile airbag inflator (gas-generation device) and other mobility business increased in sales volume, resulting in higher revenue compared to the same period in the prior fiscal year despite the impact of lower automobile production
Consequently, overall segment sales came to ¥31,897 million (up 17.3% year-on-year). Operating income also came to ¥2,396 million (operating loss of 1,668 million yen in the same period of the previous year) due to an increase of sales volume and recovery of utilization rate.
[Material]
Although there were changes in accounting standards resulting in decline in sales revenue, acetic acid business registered growth in sales revenue due to rising market conditions.
Sales revenue of acetic acid derivatives increased due to rising market conditions.
Acetate tow sales volume and sales revenue decreased slightly due to a change in accounting standards
Caprolactone derivatives and alicyclic-epoxy-resin recorded higher sales revenue driven by higher sales volume due to recovery in demand for auto paint and electronic material applications.
Consequently, overall segment sales amounted to ¥58,049 million (up 17.8 % year-on-year). Operating income amounted to ¥11,646 million (up 55.6% year-on-year), due to an increase of sales price.
[Engineering Plastics]
In the business of Polyplastics Co., Ltd., such as polyacetal (POM), polybutylene terephthalate (PBT) resin, and liquid crystal polymer (LCP), sales volume increased due to the recovery of demand for automobiles and smartphones, and revised sales prices.
In the business of Daicel Miraizu Ltd., such as ABS and engineering plastic alloy resin, barriers for food and water-soluble polymers, sales volume increased due to the recovery of demand for compound resin and water-soluble polymers, resulting in an increase in sales.
Consequently, overall segment sales amounted to ¥104,391 million (up 39.8% year-on-year). Operating income was ¥15,107 million (up 83.6% year-on-year) due to an increase of sales volume sales price revisions.
[Other Businesses]
Sales revenue of other businesses decreased due to lower sales volume of defense-related business.
Consequently, overall segment sales increased to 5,399 million (down 11.5% year-on-year). Operating income amounted to 756 million (down 19.2% year-on-year).
(2) Overview of financial position for the fiscal year under review
Total assets as of September 30, 2021 were 674,010 million, an increase of 33,625 million from March 31, 2021, due to increases in inventory, despite a decrease in notes and accounts receivable.
Total liabilities were 399,667 million, an increase of 4,283million from March 31, 2021, due to an increase in bills payable and accounts payable.
Total net assets were 274,343million. Total shareholders' equity, which is calculated as the net assets minus non-controlling interests, was 267,938 million. Shareholders' equity ratio was 39.8%.
(3) Overview of cash flow for the period under review
Cash and cash equivalents ("Cash") in the cumulative consolidated second quarter amounted to ¥90,918 million. Cash flow from operating activities
Cash flow from operating activities during the consolidated second quarter under review was + 28,411million (vs. +21,861 million in the same period last year). The increases in cash flow were mainly attributable to 29,592 million of profit before income taxes and 12,934 million of depreciation and amortization. Meanwhile, the main factor for the decreases in cash flow was 14,042 million of decrease (increase) in inventories.
Cash flow from investment activities
Cash flow from investment activities during the consolidated second quarter under review was -21,289 million (vs. -18,112 million in the same period last year). The main factors for the decrease in cash flow were expenditures of 19,269 million for the purchase of property, plant and equipment.
Cash flow from financing activities
Cash flow from financing activities during the consolidated second quarter under review was -7,503 million (vs. -4,302 million in the same period last year). Meanwhile, the main factors accounting for the decrease in cash flow were an expenditure of 4,819 million in cash dividend payments, 2,027 million for repayments of long-term borrowings and 1,008 million for dividends paid to non-controlling interests.
(4) Explanation regarding future forecast information of consolidated financial results
Based on the business results for the consolidated second quarter of the current fiscal year, the Company has revised its consolidated earnings forecasts for the full fiscal year ending March 31, 2022 announced on August 3, 2021. For details, please refer to the " Notice Regarding Differences between Consolidated Financial Forecast and Actual Results for Six-month Period ended September 30, 2021, and Revision to Consolidated Financial Forecast for Fiscal Year ending March 31, 2022" released today.
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Daicel Corporation published this content on 05 November 2021 and is solely responsible for the information contained therein. Distributed by Public, unedited and unaltered, on 05 November 2021 04:51:05 UTC.