Envipro : Financial Results Briefing Materials for the Fiscal Year Ended June 30, 2022

Financial Results Briefing Materials for the Fiscal Year Ended June 30, 2022

Envipro Holdings Inc.

(TSE Code：5698)

August 10, 2022

Table of Contents

１．Financial Overview - FY2022

２．Forecast - FY2023

３．Dividend Policy

４．Reference Data

2

Highlights - FY 2022

Consolidated Financial Results
Net sales	¥57,319 million
Operating profit	¥3,343 million
Ordinary profit	¥4,166 million
Profit before income taxes	¥4,176 million
Profit*	¥3,111 million
Prerequisite

（Up 40.0%	YoY）
（Up 56.9%	YoY）
（Up 66.1%	YoY）
（Up 98.7%	YoY）
（Up 108.6%	YoY）

	Ferrous scrap	Electrolytic	Gold price	Silver price	Nickel price	Cobalt price	Exchange rate
	price	copper price
Actual	¥55,520/ｔ	¥1,181/kg	¥6,956/g	¥90,329/kg	¥3,033/kg	¥8,382/kg	¥117/US$
Initial forecast	¥50,000/ｔ	¥1,000/kg	¥6,000/g	¥85,000/kg	¥1,800/kg	¥4,650/kg	¥105/US$

Main Topics

• Although economic activities have been recovering from COVID-19 pandemic, reduction in production is continuing due to soaring ocean freight rates and the shortage of semiconductors, etc.
• The supply and demand of metal scrap in Japan and overseas remained unstable amid the everchanging situation overseas.
• In relation to the movement toward a decarbonized society, the evaluation of use of recycled resource improved due to its effectiveness in reducing CO2 emissions.
• In the Lithium-ion Battery Recycling Business, in addition to rising prices of cobalt and increase in purchase amount from leading battery manufacturers, etc., progress was made in the development of collection, production, analysis, and sales systems.
• New plant construction has progressed.(Fuji City, Shizuoka, Scheduled completion: September 2022, Total investment: Approx. ¥1.8 billion)

*Profit: Profit attributable to owners of parent
（Amounts and quantities are rounded down. The percentages are rounded off.）	3

Summary of Consolidated Statements of Income - FY 2022

	June/2021		June/2022
			YoY
	Actual	Actual	Increase/	Ratio
			Decrease
Handling volume (t)	693	706	13	1.9%
Net sales	40,933	57,319	16,385	40.0%
Gross profit	8,364	10,628	2,263	27.1%
Operating profit	2,130	3,343	1,212	56.9%
Ordinary profit	2,508	4,166	1,658	66.1%
Profit before	2,101	4,176	2,074	98.7%
income taxes
Profit*	1,491	3,111	1,619	108.6%
Marginal profit*	8,023	9,968	1,945	24.2%
EBITDA*	2,868	4,042	1,174	40.9%
Fixed costs*	5,895	6,325	430	7.3%
ROE	12.1%	21.6%	9.5%	78.5%

		（¥ million）
	June/2022
	Compared with
Forecast	forecast announced on
announced on	May 13, 2022
May 13, 2022	Increase/	Ratio
	Decrease
-	-	-
57,000	319	0.6%
-	-	-
3,310	33	1.0%
4,000	166	4.2%
-	-	-
2,870	241	8.4%
-	-	-
-	-	-
-	-	-
-	-	-

*Profit: Profit attributable to owners of the parent
*Marginal profit = Net sales - Variable costs
*EBITDA = Operating profit + Depreciation + Amortization of goodwill
*Fixed costs = [Cost of sales･Selling, General & administrative expenses・fixed cost equivalency of Non-operating expenses] -	4
※ Fixed costs = [Foreign exchange gains・non-operating income except equity method profit]

Analysis of Difference in Consolidated Ordinary Profit（YoY）

（¥ million）	Investment in human capital
(Increased in personnel, Improved treatment)
5,000

4,500

＋1,705

＋365

＋142

4,166

4,000

(124)

(236)

(1)

(192)

3,500

3,000

2,508

Resource Circulation(↑)

2,500

・The market price of resource rose.

・Handling volume increased.

2,000

Global Trading(↑)

・Domestic demand was captured.

1,500

・Taking advantage of fluctuations in market price

Lithium-ion Battery Recycling(↑)

1,000

・The market price of copper , nickel, cobalt rose.

・Handling volume increased.

500

Variable Costs

Fixed Costs

0

June/2021

Trading

Waste Disposal

Foreigh

Personnel

Equipment

Other

Share of profit

June/2022

(Full Year)

Gain/Loss

Coast

Exchange

Expenses

Cost

Expenses

of entities

(Full Year)

&

Gain/Loss

accounted

Electricity Power

for using equity

Cost

method

5