Envipro : Financial Results Briefing Materials for the Three Months Ended September 30, 2021

Financial Results Briefing Materials

for the Three Months Ended September 30, 2021

Envipro Holdings Inc.

November 12, 2021

Table of Contents

1. Financial Overview for the Three Months Ended September 30, 2021
2. Forecast for the Fiscal Year Ending June 30, 2022
3. Medium-TermManagement Plan and This Term Initiatives
4. Dividend Policy
5. Reference Data

2

１. Financial Overview for the Three Months Ended

September 30, 2021

3

Highlights for the Three Months Ended September 30, 2021

Consolidated Financial Results

Net sales

Operating profit

Ordinary profit

Profit*

Main Topics

¥14,292 million ¥795 million ¥921 million ¥666 million

（Up 92.1%	YoY）
（Up 516.1%	YoY）
（Up 325.0%	YoY）
（Up 377.2%	YoY）

• The average price of ferrous scrap during the fiscal year (Tokyo Steel (Tahara) Tokkyu Grade Seaborne Price) increased from ¥23,225 at the previous fiscal year to ¥49,461.
• The average market prices of copper, aluminum, nickel and cobalt also increased above those of the previous fiscal year.
• Sluggishness of exports of metal scrap to a part of overseas destinations with a resurgence of the spread of COVID-19.
• Soaring ocean freight rates due to difficulties in booking freighters because of worldwide shortage of shipping containers etc.
• In relation to the movement toward a decarbonized society, the evaluation of use of metal scrap improved due to its effectiveness in reducing CO2 emissions.
• In the Lithium-ion Batteries Recycling business, in addition to purchasing and acceptance of processing from leading battery manufacturers, progress was made in the development of collection, production, analysis, and sales systems.
• Announced a plan to build a new plant (to be completed in December 2022, total investment approximately ¥1.5 billion).

*Profit：Profit attributable to owners of parent

（Amounts and quantities are rounded down. The percentages are rounded off.）

4

Summary of Consolidated Statements of Income

				（million yen）
	June/2021	June/2022	YoY
	1Q	1Q
	Actual	Actual	Increase/	Ratio
	Decrease
Net sales	7,439	14,292	6,853	92.1％
Gross profit	1,544	2,600	1,055	68.4%
Operating profit	129	795	666	516.1％
Ordinary profit	216	921	704	325.0％
Profit before	215	926	711	330.4％
income taxes
Profit*	139	666	526	377.2％
Marginal profit*	1,535	2,269	733	47.8％
EBITDA*	314	962	648	206.1％
Fixed costs*	1,384	1,474	89	6.5％

• 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] -

※ Fixed costs = [Foreign exchange gains・non-operating income except equity method profit]	5