Translation
Notice: This document is an excerpt translation of the original Japanese document and is only for reference purposes. In the event of any discrepancy between this translated document and the original Japanese document, the latter shall prevail.
Summary of Consolidated Financial Results
for the Year Ended March 31, 2022
(Based on Japanese GAAP)
May 11, 2022 | |||||||||||||||||||
Company name | FUJIMORI KOGYO CO., LTD. | ||||||||||||||||||
Stock exchange listing | Tokyo | ||||||||||||||||||
Stock Code | 7917 | URL https://www.zacros.co.jp/ | |||||||||||||||||
Representative | President & CEO | Eishi Fuyama | |||||||||||||||||
Inquiries | Senior Executive Officer in Charge of Administration | Michihiko Sato | TEL 81-3-5804-4221 | ||||||||||||||||
Scheduled date of ordinary general meeting of shareholders | June 17, 2022 | ||||||||||||||||||
Scheduled date to commence dividend payments | June 20, 2022 | ||||||||||||||||||
Scheduled date to file Securities Report | June 17, 2022 | ||||||||||||||||||
Preparation of supplementary material on earnings | yes | ||||||||||||||||||
Holding of earnings performance review | yes | (for securities analysts and institutional investors) | |||||||||||||||||
(Amounts less than one million yen are rounded down) | |||||||||||||||||||
1. Consolidated financial results for the year ended March 31, 2022 (from April 1, 2021 to March 31, 2022) | |||||||||||||||||||
(1) Consolidated operating results | (Percentages indicate year-on-year changes) | ||||||||||||||||||
Net sales | Operating income | Ordinary income | Net income attributable to | ||||||||||||||||
owners of parent | |||||||||||||||||||
Millions of yen | % | Millions of yen | % | Millions of yen | % | Millions of yen | % | ||||||||||||
Year ended March 31, 2022 | 127,819 | 9.0 | 10,341 | 0.5 | 11,102 | 3.7 | 7,693 | 5.7 | |||||||||||
Year ended March 31, 2021 | 117,250 | 2.6 | 10,286 | 16.1 | 10,708 | 18.2 | 7,278 | 36.6 | |||||||||||
Note: Comprehensive income | Year | ended March 31, | 2022 | ¥8,958 million[15.0%] | |||||||||||||||
Year ended March 31, 2021 | ¥7,789 million[28.3%] | ||||||||||||||||||
Net income | Diluted net income | Net income/equity | Ordinary | Operating | |||||||||||||||
per share | per share | income/total assets | income/net sales | ||||||||||||||||
Yen | Yen | % | % | % | |||||||||||||||
Year ended March 31, 2022 | 403.60 | 398.88 | 10.2 | 9.1 | 8.1 | ||||||||||||||
Year ended March 31, 2021 | 382.43 | 377.58 | 10.5 | 9.5 | 8.8 |
Reference: Equity in earnings (losses) of affiliates | Year ended March 31, 2022 | ¥ - million | ||||||||||||||||
(2) Consolidated financial position | Year ended March 31, 2021 | ¥ - million | ||||||||||||||||
Total assets | Net assets | Equity ratio | Net assets per share | |||||||||||||||
Millions of yen | Millions of yen | % | Yen | |||||||||||||||
Year ended March 31, 2022 | 127,370 | 85,221 | 61.9 | 4,144.85 | ||||||||||||||
Year ended March 31, 2021 | 117,393 | 77,941 | 61.8 | 3,811.40 | ||||||||||||||
Reference: Equity | Year ended | March 31, 2022 | ¥78,878 million | Year ended March 31, 2021 | ¥72,539 million | |||||||||||||
(3) Consolidated cash flows | ||||||||||||||||||
Net cash provided by | Net cash provided by | Net cash provided by | Cash and cash | |||||||||||||||
(used in) operating | (used in) investing | (used in) financing | equivalents at end of | |||||||||||||||
activities | activities | activities | period | |||||||||||||||
Millions of yen | Millions of yen | Millions of yen | Millions of yen | |||||||||||||||
Year ended March 31, 2022 | 11,396 | (5,180) | (2,765) | 28,149 | ||||||||||||||
Year ended March 31, 2021 | 11,895 | (9,894) | (806) | 24,278 | ||||||||||||||
2. Cash dividends | ||||||||||||||||||
Annual dividends | Dividend | Ratio of | ||||||||||||||||
dividends | ||||||||||||||||||
Total cash | payout | to net | ||||||||||||||||
1st quarter- | 2nd quarter- | 3rd quarter- | Fiscal year- | dividends | ratio | |||||||||||||
Total | assets | |||||||||||||||||
(Total) | (Consoli- | |||||||||||||||||
end | end | end | end | (Consoli- | ||||||||||||||
dated) | dated) | |||||||||||||||||
Yen | Yen | Yen | Yen | Yen | Millions of yen | % | % | |||||||||||
Year ended March 31, 2021 | - | 35.00 | - | 40.00 | 75.00 | 1,427 | 19.6 | 2.1 | ||||||||||
Year ended March 31, 2022 | - | 40.00 | - | 42.00 | 82.00 | 1,562 | 20.3 | 2.1 | ||||||||||
Year ending March 31, 2023 (Forecast) | - | 42.00 | - | 42.00 | 84.00 | 21.6 |
3. Forecast of consolidated financial results for the year ending March 31, 2023 (from April 1, 2022 to March 31, 2023)
(Percentages indicate year-on-year changes)
Net sales | Operating income | Ordinary income | Net income attributable | Net income | |||||
to owners of parent | per share | ||||||||
Millions of yen | % | Millions of yen | % | Millions of yen | % | Millions of yen | % | Yen | |
Full year | 132,500 | 3.7 | 10,800 | 4.4 | 11,100 | (0.0) | 7,400 | (3.8) | 388.85 |
*Notes | |
(1) Changes in significant subsidiaries during the year ended March 31, 2022 | none |
(changes in specified subsidiaries resulting in change in scope of consolidation): | |
(2) Changes in accounting policies, changes in accounting estimates, and restatement of prior period financial statements after error corrections
a. Changes in accounting policies due to revisions to accounting standards and other regulations: | yes |
b. Changes in accounting policies due to other reasons: | none |
c. Changes in accounting estimates: | none |
d. Restatement of prior period financial statements after error corrections: | none |
- Number of issued shares (common shares)
a. Total number of issued shares at the end of the period (including treasury shares)
Year ended March 31, 2022 | 19,267,760 | shares | Year ended March 31, 2021 | 19,267,760 | shares | ||||||||||||||
b. Number of treasury shares at the end of the period | |||||||||||||||||||
Year ended March 31, 2022 | 237,406 | shares | Year ended March 31, 2021 | 235,631 | shares | ||||||||||||||
c. Average number of shares during the period | |||||||||||||||||||
Year ended March 31, 2022 | 19,061,390 | shares | Year ended March 31, 2021 | 19,032,178 | shares | ||||||||||||||
(Reference) Summary of non-consolidated financial results | |||||||||||||||||||
Non-consolidated earnings for year ended March 31, 2022 (April 1, 2021 to March 31, 2022) | |||||||||||||||||||
(1) Non-consolidated operating results | (Percentages indicate year-on-year changes) | ||||||||||||||||||
Net sales | Operating income | Ordinary income | Net income | ||||||||||||||||
Millions of yen | % | Millions of yen | % | Millions of yen | % | Millions of yen | % | ||||||||||||
Year ended March 31, 2022 | 79,763 | 7.0 | 6,148 | (4.4) | 6,906 | (2.5) | 5,350 | 3.4 | |||||||||||
Year ended March 31, 2021 | 74,574 | 6.2 | 6,434 | 11.7 | 7,086 | 10.2 | 5,176 | 30.5 | |||||||||||
Net income | Diluted net income | ||||||||||||||||||
per share | per share | ||||||||||||||||||
Yen | Yen | ||||||||||||||||||
Year ended March 31, 2022 | 280.71 | 277.42 | |||||||||||||||||
Year ended March 31, 2021 | 271.99 | 268.54 | |||||||||||||||||
(2) Non-consolidated financial position | |||||||||||||||||||
Total assets | Net assets | Equity ratio | Net assets per share | ||||||||||||||||
Millions of yen | Millions of yen | % | Yen | ||||||||||||||||
Year ended March 31, 2022 | 95,414 | 66,574 | 69.3 | 3,473.79 | |||||||||||||||
Year ended March 31, 2021 | 91,437 | 63,562 | 68.9 | 3,312.20 | |||||||||||||||
Reference: Equity | As of March | 31, 2022 | 66,107 Millions of yen | ||||||||||||||||
As of March 31, 2021 | 63,038 Millions of yen |
- Financial results reports are not subject to audit by certified public accounts and auditors.
-
Proper use of earnings forecasts, and other special matters
The above forecasts of consolidated financial results are based on information currently available to the Company and on certain assumptions deemed to be reasonable. However, the Company makes no guarantee that these forecasts will be achieved. Consequently, actual business and other results may differ substantially due to various factors. For more information on assumptions for the financial results forecasts and use of the forecasts, please refer to "(2) Future outlook" in "1. Overview of Business Results" on page 2.
1. Overview of Business Results
(1) Overview of operating results and financial position for the fiscal year under review
In the fiscal year under review, the global economy saw moves toward the normalization of socio-economic activity due to progress in the rollout of COVID-19 vaccines. However, the emergence of highly transmissible mutant strains of the virus, rising raw materials prices, supply chain disruptions due to Russia's invasion of Ukraine, and other factors resulted in a return to unstable conditions in the second half of the fiscal year.
In this environment, sales in the Environment Solution Business declined due to the application of the revenue recognition standard and other factors, but sales in the Information Electronics Business rose thanks to strong sales of protective film and information recording materials. Sales in the Wellness Business and the Building & Civil Engineering Materials Business also increased. As a result, the Group's sales rose year-on-year.
On the profit and loss front, profit rose year-on-year due to revenue growth centered on the Information Electronics Business and the Wellness Business, despite a rise in raw materials prices, higher fixed costs due to efforts to strengthen human resources, and investment in strategic costs and R&D.
As a result, in the fiscal year under review, net sales increased 9.0% year-on-year to 127,819 million yen, operating income rose 0.5% to 10,341 million yen, ordinary income rose 3.7% to 11,102 million yen, and net income attributable to owners of parent rose 5.7% to 7,693 million yen.
The Company applied the "Accounting Standard for Revenue Recognition, etc." (Accounting Standards Board of Japan (ASBJ) Statement No. 29, March 31, 2020) from the beginning of the fiscal year under review. For details, please see "4. Consolidated Financial Statements and Significant Notes Thereto (5) Notes to the consolidated financial statements (Changes in accounting policies)."
The performance of each segment is as follows.
In conjunction with the corporate reorganization for the purpose of strongly promoting the Group's Medium-Term Business Plan, the previous three reportable segments of "Life science," "Information electronics," and "Building & civil engineering materials" have been changed to the four segments of "Wellness," "Environment solution," "Information electronics," and "Building & civil engineering materials" from the second quarter of the fiscal year ended March 31, 2022.
For the following year-on-year comparisons, the figures for the same period of the previous year are reorganized into the changed segment categories for comparative analysis.
(Wellness Business)
Overall business sales increased thanks to strong year-on-year sales growth of pharmaceutical and medical packaging materials at an overseas subsidiary and continued firm sales of single-use bags for biopharmaceutical production, etc. and related products.
As a result, net sales rose 17.9% over the previous year to 23,992 million yen.
(Environment Solution Business)
In liquid containers, sales rose steadily, particularly at an overseas subsidiary, and sales of large-capacity refillable pouches in packaging materials for daily commodities rose year-on-year. In packaging materials for foods, orders declined year on year due to spot sales of filling and delivery systems in the first quarter of the previous fiscal year, in addition to the impact of the decline in orders resulting from the application of revenue recognition standards, resulting in an overall decline in sales year on year for the business as a whole.
As a result, net sales declined 2.3% over the previous year to 35,197 million yen.
(Information Electronics Business)
In display-related materials, sales rose year-on-year due to an increase in orders for protection film as the market expanded along with a shift to larger TV screens, and a large contribution from increased production following the installation of new machinery in the Company's Showa Plant, which started full-scale operation in the previous fiscal year. In electronic components related and others, sales of information recording materials for personal computers and servers increased significantly due to the development of high-speed, large- capacity communication infrastructure and sales were also stable for tablets and smartphones. Overall business sales increased due to these and other factors.
As a result, net sales rose 16.8% year-on-year to 48,570 million yen.
(Building & Civil Engineering Materials Business)
In building materials related, the application of the standard for revenue recognition depressed sales, but sales of building-chimney construction and air-conditioning pipes were solid and sales of void slabs (floor construction materials) for housing complexes rose year- on-year. In civil engineering materials related, net sales of materials for tunnels declined.
As a result, net sales rose 4.1% over the previous year to 20,058 million yen.
1
(2) Future outlook
We expect the outlook for the global economy to remain uncertain amid geopolitical risk due to Russia's invasion of Ukraine, rising prices, the impact of changes in financial and capital markets and exchange rates, the emergence of mutant strains of COVID-19, and other factors. In this environment, the Group will be significantly impacted by the recent rise in costs, including higher raw materials prices, energy costs, and transportation costs. We expect these conditions to continue, but the Group will work to improve profitability by promoting further gains in production efficiency, securing sales, passing on costs, and through other initiatives. We will also promote the commercialization of new fields such as medical care and energy, and focus on developing environmentally friendly products and services to reduce the burden on the environment. By doing this, we will explore and create new business opportunities and further expand our strategic investment and R&D capabilities for future growth and development.
In the Wellness Business, we will strive to capture demand for medical products, medical devices, and regenerative medicine needs, expand product development and services for each field, and further strengthen our sales and production capabilities. In pharmaceutical and medical packaging materials, we expect sales to grow due to securing orders, and expect single-use bags for biopharmaceutical production and related products to remain firm, mainly for pharmaceutical manufacturers' vaccines and antibody drugs. In response to growing demand, we plan to construct a new manufacturing building at our Mie Plant and strengthen our production and development capabilities.
In the Environment Solution Business, we will work to further strengthen and expand existing businesses while striving to realize customer needs and development themes. This includes initiatives such as developing mono-material soft packaging materials that reduce the environmental burden both in Japan and overseas, with a view toward a recycling-oriented society. In liquid containers, we will strive to expand sales by responding to the increase in overseas demand at our three domestic and overseas bases, expand our lineup of environmentally friendly products in packaging materials for daily commodities, and continue to promote sales expansion activities to capture growing demand for large-capacity refillable pouches.
In the Information Electronics Business, we will strengthen global marketing and product development with a view toward sustainable growth of existing businesses and a smart society. We will contribute to the realization of a smart society by providing new value such as free standing electrodes (under development) that can help achieve new structures and designs for large and next-generation batteries. We expect demand for information recording materials related to electronic components to continue to increase for personal computers and servers given the continued development of data centers and other infrastructure amid rapid progress in the digitalization of society and the economy. In display-related materials, we expect demand for mainstay protective film to remain strong.
In the Building & Civil Engineering Materials Business, the Group will strive to bolster system proposals that lead to differentiation, strengthen infrastructure to improve quality and productivity, and promote the development of products for construction sites that reduce labor costs, are lightweight, and have high heat insulation. We will continue to focus on sales in the equipment field, and win orders for building-chimney construction and expand sales of materials for tunnels.
The Group anticipates net sales of 132.5 billion yen (up 3.7% year-on-year), 10.8 billion yen in operating income (up 4.4% year-on-year), and 11.1 billion yen in ordinary income (down 0.0% year-on-year) for the full consolidated fiscal year ending March 31, 2023. We expect net income attributable to owners of parent of 7.4 billion yen (down 3.8% year-on-year) because corporate taxes are likely to be higher than the fiscal year ended March 31, 2022, due to the large tax breaks, etc., received in that year.
Regarding our earnings forecasts, we have made estimates based on currently available information, but if external factors are worse than anticipated, these matters could have a significant impact on our forecasts.
2
2. Consolidated Financial Statements and Significant Notes Thereto
(1) Consolidated balance sheets
(Millions of yen) | ||
As of March 31, 2021 | As of March 31, 2022 | |
Assets | ||
Current assets | ||
Cash and deposits | 8,980 | 11,051 |
Notes and accounts receivable - trade | 33,520 | - |
Notes receivable - trade | - | 4,974 |
Accounts receivable - trade | - | 30,819 |
Contract assets | - | 868 |
Securities | 15,297 | 17,097 |
Merchandise and finished goods | 5,279 | 6,190 |
Work in process | 1,645 | 1,741 |
Raw materials and supplies | 3,804 | 5,568 |
Other | 2,324 | 2,659 |
Allowance for doubtful accounts | (43) | (47) |
Total current assets | 70,809 | 80,925 |
Non-current assets | ||
Property, plant and equipment | ||
Buildings and structures | 42,450 | 45,190 |
Accumulated depreciation | (25,037) | (26,416) |
Buildings and structures, net | 17,412 | 18,773 |
Machinery, equipment and vehicles | 58,405 | 60,913 |
Accumulated depreciation | (49,665) | (52,193) |
Machinery, equipment and vehicles, net | 8,739 | 8,720 |
Tools, furniture and fixtures | 7,706 | 7,946 |
Accumulated depreciation | (6,547) | (6,932) |
Tools, furniture and fixtures, net | 1,159 | 1,014 |
Land | 8,130 | 8,329 |
Construction in progress | 2,306 | 1,698 |
Other | 891 | 1,032 |
Accumulated depreciation | (309) | (427) |
Other, net | 582 | 604 |
Total property, plant and equipment | 38,330 | 39,140 |
Intangible assets | ||
Goodwill | 283 | 257 |
Other | 777 | 769 |
Total intangible assets | 1,061 | 1,027 |
Investments and other assets | ||
Investment securities | *1 5,717 | *1 4,769 |
Deferred tax assets | 703 | 741 |
Other | 812 | 780 |
Allowance for doubtful accounts | (41) | (13) |
Total investments and other assets | 7,191 | 6,277 |
Total non-current assets | 46,583 | 46,444 |
Total assets | 117,393 | 127,370 |
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Fujimori Kogyo Co. Ltd. published this content on 11 May 2022 and is solely responsible for the information contained therein. Distributed by Public, unedited and unaltered, on 06 June 2022 10:51:01 UTC.