Quarterly Financial Results for the 3rd Quarter, Ended December 31, 2022 (Japanese GAAP, Consolidated)
February 8, 2023 | |||||
Name of Listed Company: Kaneka Corporation | Stock Exchange Listing: Tokyo | ||||
Code Number: | 4118 | URLhttps://www.kaneka.co.jp/en/ | |||
Representative: Minoru Tanaka | Title: President, Representative Director | ||||
Contact Person: Osamu Ishida | Title: Executive Officer - Investors & Public Relations Department | ||||
Phone: +81-3-5574-8090 | |||||
Scheduled date for submitting financial statements: February 10, 2023 | Scheduled date of dividend distribution: - |
Note: Figures have been rounded down to the nearest million yen.
1. Consolidated Business Performance for the 3rd Quarter, Ended December 31, 2022 (from April 1, 2022 to December 31, 2022)
(1) Consolidated business performance (cumulative) | (% indicates year-on-year change) | ||||||||
Net sales | Operating income | Ordinary income | Net income attributable | ||||||
to owners of parent | |||||||||
¥ million | % | ¥ million | % | ¥ million | % | ¥ million | % | ||
Apr. 2022 - Dec. 2022 | 567,143 | 11.5 | 27,621 | (17.1) | 26,601 | (15.0) | 18,890 | (14.2) | |
Apr. 2021 - Dec. 2021 | 508,716 | 20.7 | 33,317 | 92.7 | 31,288 | 147.7 | 22,021 | 128.0 | |
Note: Comprehensive income: ¥27,794 million (1.6%) for the nine months ended December 31, 2022 ¥27,345 million (65.7%) for the nine months ended December 31, 2021
Net income | Fully diluted net | ||
per share | income per share | ||
¥ | ¥ | ||
Apr. 2022 - Dec. 2022 | 286.61 | 285.86 | |
Apr. 2021 - Dec. 2021 | 337.55 | 336.63 | |
(2) Consolidated financial position | |||
Total assets | Net assets | Shareholders' | |
equity ratio | |||
¥ million | ¥ million | % | |
As of December 31, 2022 | 788,686 | 427,259 | 51.8 |
As of March 31, 2022 | 726,959 | 412,204 | 53.3 |
Reference: Shareholders' equity: ¥408,559 million as of December 31, 2022 ¥387,150 million as of March 31, 2022
2. Dividends
Annual dividends | |||||
1st Quarter | 2nd Quarter | 3rd Quarter | Year-end | Annual | |
¥ | ¥ | ¥ | ¥ | ¥ | |
Apr. 2021 - Mar. 2022 | - | 50.00 | - | 60.00 | 110.00 |
Apr. 2022 - Mar. 2023 | - | 55.00 | - | ||
Apr. 2022 - Mar. 2023 | 55.00 | 110.00 | |||
(Forecasts) | |||||
Note: Changes in dividend forecast during the quarter under review: None |
3. Forecast for Consolidated Business Performance for the Year Ending March 31, 2023 (from April 1, 2022 to March 31, 2023)
(Percentage figures represent changes from the corresponding periods of the previous fiscal year)
Operating | Net income | Net income | |||||||
Net sales | Ordinary income | attributable to | |||||||
income | per share | ||||||||
owners of parent | |||||||||
¥ million | % | ¥ million | % | ¥ million | % | ¥ million | % | ¥ | |
Full year | 756,000 | 9.3 | 36,500 (16.2) | 34,000 | (16.7) | 24,000 | (9.4) | 364.67 | |
Note: Revisions to consolidated business performance forecasts during the quarter under review: Yes
- Notes
- Changes in principal subsidiaries during the term: None
- Application of simplified methods of accounting and specific accounting methods: None
- Changes in accounting principles, changes in estimates, or restatements
- Changes owing to revisions in accounting standards: Yes
- Changes other than 1. above: None
- Changes in accounting estimates: None
- Restatements: None
Note: For details, please refer to the section entitled "(3) Notes to the Consolidated Financial Statements (Changes in Accounting Principles)" under "2. Quarterly Consolidated Financial Statements and Main Notes" on page 10.
(4) 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 during the period (calculated cumulatively from the beginning of the fiscal year):
December 31, | 68,000,000 | March 31, 2022 | 68,000,000 |
2022 | shares | shares | |
December 31, | 2,187,709 | March 31, 2022 | 2,761,323 |
2022 | shares | shares | |
December 31, | 65,909,803 | December 31, | 65,239,177 |
2022 | shares | 2021 | shares |
※These financial statements are exempt from audit procedures
※Explanations or other items pertaining to appropriate use of business performance forecasts The business performance forecasts and certain other statements contained in this document are forward-looking statements, which are based on information currently available to the Company and certain assumptions determined to be reasonable by the Company. For a variety of reasons, actual performance may differ substantially from these forecasts. They do not constitute a guarantee that the Company will achieve these forecasts or other forward-looking statements. For cautionary items used in business performance forecasts, please refer to the section entitled "(3) Consolidated Business Forecasts" under "1. Quarterly Consolidated Business Performance" on page 5.
Quarterly Financial Results for the 3rd Quarter, Ended December 31, 2022, Kaneka Corporation (4118)
Supplementary Materials
Contents
1. Quarterly Consolidated Business Performance ------------------------------------------------------ | P. 2 | |
(1) | Consolidated Business Performance -------------------------------------------------------------- | P. 2 |
(2) | Consolidated Financial Position ---------------------------------------------------------------------- | P. 4 |
(3) | Consolidated Business Forecasts ------------------------------------------------------------------ | P. 5 |
2. Quarterly Consolidated Financial Statements and Main Notes --------------------------------- | P. 6 | |
(1) | Quarterly Consolidated Balance Sheets ---------------------------------------------------------- | P. 6 |
(2) | Quarterly Consolidated Statements of Income and Comprehensive Income ------------ | P. 8 |
(3) | Notes to the Consolidated Financial Statements ----------------------------------------------- | P. 10 |
(Notes on the Premise of a Going Concern) ----------------------------------------------------- | P. 10 | |
(Notes in the Event of Significant Changes in the Amount of Shareholders' Equity) | --- P. 10 | |
(Changes in Accounting Principles) ---------------------------------------------------------------- | P. 10 | |
(Segment Information) -------------------------------------------------------------------------------- | P. 10 |
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Quarterly Financial Results for the 3rd Quarter, Ended December 31, 2022, Kaneka Corporation(4118)
1.Quarterly Consolidated Business Performance
(1) Consolidated Business Performance
-
State of the Global Economy - Deceleration and Instability -
During the first nine months (April 1 to December 31, 2022, "1-3Q") of the fiscal year ending March 31, 2023, the global economy was unstable due to the sharp rise in energy and resource prices triggered by the Ukraine crisis, growing inflation and monetary tightening in various economies, which put a sudden brake on the economy in the third quarter (October 1 to December 31, 2022, "3Q"), and there were also currency fluctuations. - Kaneka Group's Business Performance - Despite Foundation Businesses Impacted, Leading-edge Businesses Grown -
Under these circumstances, Kaneka Group's business performance for 1-3Q was as follows. Consolidated net sales were ¥567,143 million (up 11.5% year-on-year), operating income was ¥27,621 million (down 17.1% year-on-year), ordinary income was ¥26,601 million (down 15.0% year- on-year), and net income attributable to owners of parent was ¥18,890 million (down 14.2% year-on- year).
Net sales and operating income by segment for the first nine months | (Millions of yen) | ||||||
Net sales | |||||||
FY2022 | Difference | ||||||
1Q | 2Q | 3Q | 1-3Q | (year-on-year) | |||
Material SU | 88,919 | 83,975 | 77,812 | 250,707 | 33,469 | ||
15.4% | |||||||
Quality of Life SU | 45,000 | 42,194 | 43,812 | 131,008 | 4,869 | ||
3.9% | |||||||
Health Care SU | 16,623 | 17,369 | 18,658 | 52,651 | 10,630 | ||
25.3% | |||||||
Nutrition SU | 41,879 | 44,091 | 46,018 | 131,988 | 9,454 | ||
7.7% | |||||||
Others | 316 | 231 | 240 | 787 | 2 | ||
0.3% | |||||||
Total | 192,739 | 187,863 | 186,541 | 567,143 | 58,426 | ||
11.5% | |||||||
Operating income | |||||||
FY2022 | Difference | ||||||
1Q | 2Q | 3Q | 1-3Q | (year-on-year) | |||
Material SU | 10,756 | 7,947 | 3,767 | 22,470 | (3,796) | ||
(14.5%) | |||||||
Quality of Life SU | 4,600 | 4,069 | 4,386 | 13,056 | (727) | ||
(5.3%) | |||||||
Health Care SU | 3,856 | 3,653 | 4,471 | 11,981 | 3,561 | ||
42.3% | |||||||
Nutrition SU | 806 | 1,296 | 2,290 | 4,393 | 745 | ||
20.4% | |||||||
Others | 186 | 95 | 112 | 395 | 45 | ||
13.1% | |||||||
Adjustment | (7,994) | (8,460) | (8,221) | (24,676) | (5,523) | ||
- | |||||||
Total | 12,212 | 8,601 | 6,808 | 27,621 | (5,695) | ||
(17.1%) | |||||||
※SU:Solutions Unit |
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Quarterly Financial Results for the 3rd Quarter, Ended December 31, 2022, Kaneka Corporation(4118)
In 3Q, some of our segments continued to experience declining demand and falling market conditions due to factors including the sluggish building materials and construction markets in Europe and the U.S., falling PVC market prices in Asia, and supply-demand adjustments in the electronics market, which had a significant impact on our business performance. On the other hand, in leading-edge businesses (Health Care Solutions Unit, etc.), sales of new products using our unique and differentiated technologies are steadily expanding and the business is growing speedily. In foundation businesses, Foam & Residential Techs and Foods strengthened their earnings foundation as spreads improved due to price revisions in response to rising raw material prices and other factors. We are making steady progress in transforming our business portfolio.
-
Foundation businesses … Vinyls and Chlor-Alkali, Modifiers, Foam & Residential Techs, Performance Fibers, Foods
Leading-edge businesses… Modified Silicone polymers, E & I Technology, Pharma, Medical, Supplemental Nutrition, Agris, PV & Energy management
The operating performance by business segment was as follows:
- Material Solutions Unit
This unit was strongly affected by economic slowdown in Europe, the U.S., and Asia, resulting in higher sales and lower profits.
- For Vinyls and Chlor-Alkali, although caustic soda sales remained steady in 3Q, demand for PVC resins in Asian markets was dull and market conditions remained weak.
- For Modifiers, demand for rigid PVC usage for housing in Europe and the U.S. has slowed from the second quarter (July 1 to September 30, 2022, "2Q") and remained sluggish in 3Q due to customers' inventory adjustments. We have been shifting our Research & Business activities to expand the market for non-PVC applications to enhance profitability. Business performance bottomed out in 3Q and is now on a recovery track.
- For Modified Silicone polymers, demand temporarily slowed down due to the weak construction markets in Europe and the U.S., but the underlying tone of demand is strong, and following the decision made last year to increase capacity in Belgium, we are quickly considering the next capacity expansion in the U.S.
- KANEKA Biodegradable Polymer Green Planet™ has received many inquiries from major brand holders in Japan, Europe, and the U.S., and joint developments are expanding. We are also working hard on research and development of innovative technology to produce Green Planet™ from CO2 and H2 for social implementation of "biomanufacturing," a prioritized Japanese government policy.
- Quality of Life Solutions Unit
This unit increased sales, but E & I Technology was strongly affected by the supply-demand adjustment, resulting in a decrease in profits.
- For Foam & Residential Techs, performance recovered as a result of price revisions and firm sales in the domestic market. Demand in the overseas automotive sector is gradually recovering.
- As the energy crisis (electricity shortage) becomes a global problem, expectations for high-efficiency photovoltaic modules are increasing. Inquiries about our PV products are becoming increasingly active, as policies such as the mandatory installation of PV in new houses are spreading nationwide, including by the Tokyo Metropolitan Government. We will start operation of an additional production line for heterojunction PV during this fiscal year to respond to the strong demand for high-efficiency photovoltaic modules for residential use. We also plan to begin full-scale delivery of in-vehicle PV this spring. In addition, we are actively promoting initiatives that contribute to CO2 reduction, such as self-consignment and microgrids in cooperation with local governments.
- For E & I Technology, sales of polyimide products and resins for LCD panels fell below the previous year's level due to continued significant supply-demand adjustments in the smartphone and large-
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Kaneka Corporation published this content on 10 February 2023 and is solely responsible for the information contained therein. Distributed by Public, unedited and unaltered, on 10 February 2023 08:49:03 UTC.