FY2023

3rd Quarter Results Presentation

KITZ CORPORATION

November 2023

The forecast data presented herein reflects assumed results based on conditions that are subject to change. KITZ Corporation does not make representations as to, or warrant, in whole or in part, the attainment or realization of any of the forecasted results presented in this document. Numerical figures presented herein are rounded down.

©2023 KITZ CORPORATION All Rights Reserved

Contents

  1. FY2023 Q1-Q3 Financial Results
  2. FY2023 Forecast
  3. Topics
    - Appendix -

©2023 KITZ CORPORATION All Rights Reserved

｜2

  1. FY2023 Q1-Q3 Financial Results
  2. FY2023 Forecast
  3. Topics
    - Appendix -

©2023 KITZ CORPORATION All Rights Reserved

｜3

Summary of FY2023 Q1-Q3 Results

Sales

YoY : +4.3%

123.3 Billion

vs. Plan : -0.9%

Operating Income

10.7 Billion

YoY : +25.5%

vs. Plan : +9.9%

  • Increased YoY due to higher sales in Valve Manufacturing Business and Others despite decreases in sales in Brass Bar Manufacturing Business
  • Valve Manufacturing Business increased YoY on the back of the effect of FY2022 & 2023's price revisions in the domestic market, strong performance in Semiconductor Equipment, and sales increase in the Americas, etc.
  • Brass Bar Manufacturing Business decreased YoY due to a decrease in sales volume, despite raw material prices, which affect sales prices, being similar to Q3 FY2022

Net Income Attributable

¥8.5 Billion

to Owners of the Parent

YoY：+31.4%

vs. Plan：+12.1%

  • Increase by 31.4% YoY with gains on sales of investment securities resulting from the sale of cross-shareholdings, etc.
  • Increased YoY due to profit growth in all the segments: Valve Manufacturing Business, Brass Bar Manufacturing Business, and Others
  • Valve Manufacturing Business increased YoY due to profit growth from sales growth
  • Brass Bar Manufacturing Business increased YoY due to a reduction of material losses, etc., despite a decrease in sales volume

©2023 KITZ CORPORATION All Rights Reserved

｜4

FY2023 Q1-Q3 Results

(Millions of Yen)

FY2022

FY2023

FY2023

Q1-Q3

Q1-Q3

Q1-Q3

YoY Change

vs. Plan

Results

Plan

Results

Sales

118,259

124,533

123,358

5,099

4.3%

(1,174)

(0.9)%

Valve Manufacturing

92,125

100,674

100,355

8,229

8.9%

(319)

(0.3)%

Brass Bar Manufacturing

24,571

22,040

21,134

(3,437)

(14.0)%

(905)

(4.1)%

Operating Income

8,525

9,736

10,702

2,176

25.5%

966

9.9%

%

7.2%

7.8%

8.7%

Valve Manufacturing

11,338

12,697

13,480

2,142

18.9%

783

6.2%

Brass Bar Manufacturing

108

244

301

193

179.3%

57

23.5%

Ordinary Income

9,465

10,276

11,528

2,063

21.8%

1,252

12.2%

%

8.0%

8.3%

9.3%

Net Income Attributable to

6,488

7,608

8,527

Owners of the Parent

2,039

31.4%

919

12.1%

%

5.5%

6.1%

6.9%

Yen / US Dollar

129.48

134

139.56

Yen / Euro

136.6

146

151.16

*Note : Total Sales and Operating Income

Electrolytic Copper, Yen/ton

1,196,667

1,240,000

1,239,889

include other segment and adjustment.

©2023 KITZ CORPORATION All Rights Reserved

｜5

Quarterly Results (Consolidated)

(Millions of Yen)

Sales/OP

OP Margin

OP(Right)

45,000

Sales(Left)

4500

12.0%

9.8%

40,000

4000

10.0%

35,000

3500

7.4%

7.2%

7.1%

8.9%

7.3%

30,000

3000

8.0%

6.1%

25,000

2500

6.0%

20,000

2000

15,000

1500

4.0%

10,000

1000

2.0%

5,000

500

0

0

0.0%

Q1

Q2

Q3

Q4

Q1

Q2

Q3

Q1

Q2

Q3

Q4

Q1

Q2

Q3

FY2022

FY2023

FY2022

FY2023

(Millions of Yen)

FY2022

FY2023

Q1

Q2

Q3

Q4

Q1

Q2

Q3

Sales

36,750

40,182

41,327

41,654

39,241

42,032

42,084

Operating Income

2,721

2,878

2,926

2,525

3,496

3,076

4,129

Ordinary Income

2,832

3,300

3,331

2,580

3,776

3,461

4,290

Net Income

1,866

2,280

2,341

2,061

3,376

2,108

3,042

OP Margin

7.4%

7.2%

7.1%

6.1%

8.9%

7.3%

9.8%

©2023 KITZ CORPORATION All Rights Reserved

｜6

Quarterly Results (Valve Manufacturing)

(Millions of Yen)

Sales/OP

Sales(Left)

35,000 OP(Right)

30,000

25,000

20,000

15,000

10,000

5,000

0

Q1

Q2

Q3

Q4

Q1

Q2

Q3

FY2022FY2023

5000

4000

3000

2000

1000

0

OP Margin

16.0%

13.2%

14.0%

14.3%

14.0%

12.0%

12.0%

11.7% 12.1%

11.0%

10.0%

8.0%

6.0%

4.0%

2.0%

0.0%

Q1

Q2

Q3

Q4

Q1

Q2

Q3

FY2022FY2023

(Millions of Yen)

FY2022

FY2023

Q1

Q2

Q3

Q4

Q1

Q2

Q3

Sales

28,773

30,936

32,416

33,063

32,043

33,687

34,624

Operating Income

3,803

3,626

3,908

3,641

4,488

4,042

4,949

OP Margin

13.2%

11.7%

12.1%

11.0%

14.0%

12.0%

14.3%

©2023 KITZ CORPORATION All Rights Reserved

｜7

Valve Manufacturing Business Results

- by Market -

  • Profit in Building & Facilities stayed solid despite slightly weak sales YoY. Water treatment performed well.
  • Favorable sales continued in the Americas for Petrochemicals.
  • Semiconductor Equipment increased YoY due to strong orders in FY2022. Semiconductor Materials (Filters) slightly increased YoY.
  • Fine Chemicals remained strong due to domestic pharmaceutical projects. In Hydrogen & Clean Energy, orders for package units continued favorably, but full-year sales may see only a minor increase as sales will be recorded in the following FY.

(Billions of Yen)

FY2022

FY2023

Q1-Q3

YoY Change

Q1

Q2

Q3

Q1-Q3

Q4

Q1

Q2

Q3

Total

Total

Building & Facilities

7.0

7.3

7.6

21.9

7.1

6.8

6.7

7.5

21.0

(0.9)

(4.3)%

Core

Petrochemicals

6.3

6.9

7.8

21.0

7.1

7.0

8.3

8.1

23.4

2.4

11.3%

Water Treatment

1.6

2.2

2.6

6.4

2.7

2.1

2.0

2.5

6.7

0.3

3.9%

Machinery & Equipment

2.8

2.8

2.7

8.3

2.7

2.5

2.4

2.6

7.5

(0.8)

(9.8)%

Core Total

17.7

19.2

20.7

57.6

19.6

18.4

19.4

20.7

58.5

0.9

1.5%

Semiconductor Equipment

4.7

5.1

5.4

15.2

6.2

6.1

6.2

6.4

18.8

3.6

23.4%

Semiconductor Materials

1.0

1.1

1.2

3.3

1.2

1.1

1.2

1.2

3.4

0.1

4.4%

Growth

(Filters)

Fine Chemicals

0.3

0.6

0.7

1.6

0.9

1.1

1.0

0.8

2.9

1.3

80.4%

Hydrogen & Clean Energy

0.3

0.2

0.2

0.7

0.2

0.2

0.2

0.2

0.6

(0.1)

(12.9)%

Growth Total

6.3

7.0

7.5

20.8

8.5

8.5

8.6

8.6

25.7

4.9

23.5%

Others

4.6

4.7

4.5

13.8

4.6

5.1

5.7

5.3

16.1

2.3

16.7%

Total

28.8

30.9

32.7

92.1

32.8

32.0

33.7

34.6

100.3

7.9

8.6%

Note : Since figures are shown in units of billion yen, totals may not align to the calculation.

All Rights Reserved

｜8

Valve Manufacturing Business Results

- by Area -

  • Sales ratios: Domestic 59% / Overseas 41%.

Both domestic and overseas sales increased by 10% and 8% YoY, respectively.

  • In the Americas, strong sales continued in the industrial field, such as Petrochemicals.
  • Sales in ASEAN and South Korea decreased by 10% YoY due to ongoing difficult market conditions for both industrial and general purpose products.
  • Sales in China increased by 16% YoY due to higher industrial product sales despite the real estate recession.
  • Sales in India continue to grow due to the strong performance of Micro Pneumatics, a KITZ Group company, expanding into petrochemical plant projects.

(Billions of Yen)

FY2022

FY2023

YoY Change

Q1

Q2

Q3

Q1-Q3

Q4

Q1

Q2

Q3

Q1-Q3

Total

Total

Japan

17.3

18.1

18.4

53.8

19.0

19.1

19.8

20.0

59.1

53

10%

Overseas Total

11.4

12.8

13.9

38.3

14.1

12.8

13.8

14.5

41.2

30

8%

ASEAN, Korea,

4.2

5.0

5.3

14.7

4.8

4.3

4.3

4.5

13.2

(14)

(10)%

and others

China

2.3

2.4

2.8

7.6

3.2

2.3

2.8

3.6

8.8

13

16%

India

0.2

0.3

0.3

0.9

0.4

0.4

0.4

0.5

1.4

5

60%

Asia Total

6.8

7.7

8.5

23.2

8.5

7.1

7.7

8.7

23.5

4

2%

Americas

3.6

3.9

4.6

12.2

4.7

4.5

4.7

4.5

13.9

17

14%

(North and South America)

Europe, etc.

0.8

1.0

1.0

2.9

1.1

1.1

1.3

1.2

3.8

9

31%

Note : Since figures are shown in units of billion yen, totals may not align to the calculation.

©2023 KITZ CORPORATION All Rights Reserved

｜9

Valve Manufacturing Business Results

- Operating Profit Analysis by Factors-

(Millions of Yen)

FY2022

FY2023

FY2023

Q1-Q3

Q1-Q3

Q1-Q3

YoY Change

vs. Plan

Results

Plan

Results

Sales

92,125

100,674

100,355

8,229

8.9%

(319)

(0.3)%

Operating

11,338

12,697

13,480

2,142

18.9%

783

6.2%

Income

(Millions of Yen)

18,000

16,000

14,000

12,000

Cost

Material

Parts &

Cost

10,000

Reduction

Energy Cost

SG&A

Forex

Sales Volume

+280

+620

8,000

-1,280

-760

+210

Product Mix

13,480

6,000

+3,060

11,338

4,000

2,000

0

FY2022 Q1-Q3

FY2023 Q1-Q3

©2023 KITZ CORPORATION All Rights Reserved ｜10

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Kitz Corporation published this content on 13 November 2023 and is solely responsible for the information contained therein. Distributed by Public, unedited and unaltered, on 14 November 2023 16:53:24 UTC.