Nippon Coke & Engineering : Consolidated Financial Report for the First Half of the Fiscal Year Ending March 31, 2023

Nippon Coke & Engineering Co., Ltd. (3315) Consolidated Financial Report for the First Half of the Fiscal Year Ending March 31, 2023

Consolidated Financial Report for the First Half of the Fiscal Year Ending March 31, 2023

[J-GAAP]

		November 11, 2022
Company name:	Nippon Coke & Engineering Co., Ltd.	Listed stock exchange: Tokyo Stock Exchange
Securities code:	3315	URL: n-coke.com/en/index.html
Representative:	MATSUOKA Hiroaki, President and Representative Director
Inquiries:	OKUZONO Takayuki, General Manager, Personnel and General Affairs Department
	TEL: [phone]

Scheduled filing date of the Company's quarterly report:	November 14, 2022
Scheduled date of dividend payment commencement:	-
Preparation of quarterly financial report supplemental explanatory materials:	Yes
Holding of quarterly financial results briefing:	No

(Figures are rounded down to the nearest million yen)

1. Consolidated Performance for the First Half of the Fiscal Year Ending March 31, 2023 (April 1 to September 30, 2022)

1. Consolidated Business Results (year-to-date)

(In millions of yen unless otherwise stated; percentage figures are changes from the same period of the previous fiscal year.)

		Net Sales	Operating		Ordinary		Net Income Attributable
				Income		Income		to Owners of the Parent
First Half of the Fiscal Year		94,195	94.1%	-2,198		-		-3,727	-		-2,676	-
Ending March 31, 2023
First Half of the Fiscal Year		48,518	17.9%	6,113		310.2%		5,886	404.7%	3,959	601.5%
Ended March 31, 2022
Note: Comprehensive income:	First Half of the Fiscal Year Ending March 31, 2023		-2,721 million yen (-%)
	First Half of the Fiscal Year Ended March 31, 2022		3,958 million yen (473.2%)
		Net Income per	Diluted Net Income per
		Share (Yen)		Share (Yen)
First Half of the Fiscal Year			-9.20			-
Ending March 31, 2023
First Half of the Fiscal Year			13.61			-
Ended March 31, 2022

1. Consolidated Financial Position

	Total Assets	Net Assets	Equity Ratio (%)
September 30, 2022	145,499	52,584	36.1
March 31, 2022	128,767	57,343	44.5

(Reference) Shareholders' equity: September 30, 2022 52,584 million yen March 31, 2022 57,343 million yen

2. Dividend Information

			Dividends (Yen)
	End of the	End of the			End of the		Fiscal		Total
	First Quarter	First Half			Third Quarter		Year-End
Fiscal Year Ended March 31, 2022	-	0.00			-	7.00	7.00
Fiscal Year Ending March 31, 2023	-	0.00
Fiscal Year Ending March 31, 2023					-		-		-
(forecast)
Note: Revisions to the most recently announced dividend forecasts: No

Note: The year-end dividend forecast for the fiscal year ending March 31, 2023 is yet to be decided. The Company intends to disclose the forecast dividend amount promptly when it is possible to do so.

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Nippon Coke & Engineering Co., Ltd. (3315) Consolidated Financial Report for the First Half of the Fiscal Year Ending March 31, 2023

3. Consolidated Performance Forecasts for the Fiscal Year Ending March 31, 2023 (April 1, 2022 to March 31, 2023)

(In millions of yen unless otherwise stated; percentage figures are changes from the same period of the previous fiscal year.)

	Net Sales	Operating Income	Ordinary Income	Net Income Attributable	Net Income per
	to Owners of the Parent	Share (Yen)
Full Fiscal Year	176,000	41.1%	0	-	-1,200	-	-1,500	-	-5.15

Notes: Revisions to the most recently announced dividend forecasts: No

Cautionary Notes

1. Changes in Important Subsidiaries during the Period (changes in specified subsidiaries due to changes in the scope of consolidation and application of the equity method): No

Newly included: - Excluded: -

(2) Application of Special Accounting Practices for the Preparation of Quarterly Consolidated Financial Statements: No

(3) Changes in Accounting Policies, Changes in Accounting Estimates, and Retrospective Restatements

(a) Changes in accounting policies in accordance with revisions to accounting standards and other regulations: No

(b) Changes in accounting policies other than (a) above: No

(c) Changes in accounting estimates: Yes

(d) Retrospective restatements: No

(4) Issued Shares (Common Stock)

(a) Number of issued shares
as of the end of the period	September 30, 2022	302,349,449 shares	March 31, 2022	302,349,449 shares
(including treasury stock)
(b) Number of shares of
treasury stock as of the	September 30, 2022	11,322,343 shares	March 31, 2022	11,321,741 shares
end of the period
(c) Average number of shares	First half of the		First half of the
for the period (fiscal	fiscal year ending	291,027,381 shares	fiscal year ended	291,028,512 shares
year-to-date)	March 31, 2023		March 31, 2022

Note: Quarterly consolidated financial reports are not subject to quarterly review procedures conducted by certified accountants and/or corporate auditors.

Cautionary Statement and Other Explanatory Notes

Forward-looking statements including performance forecasts contained in this document are based on certain reasonable presumptions and beliefs in light of information currently available to management and should not be interpreted as a promise or guarantee by the Company that information or quantitative data will be achieved. Moreover, readers are advised that actual results may differ materially from forecasts due to a variety of factors.

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Nippon Coke & Engineering Co., Ltd. (3315) Consolidated Financial Report for the First Half of the Fiscal Year Ending March 31, 2023

1. Qualitative Information regarding Quarterly Financial Report

1. Discussion of Consolidated Business Results

During the first half (April 1, 2022 to September 30, 2022) of the fiscal year ending March 31, 2023, the Japanese economy continued to face volatile raw material prices and risks associated with economic slowdowns outside Japan, caused by the prolonged conflict in Ukraine and the impact of COVID-19.

Under these circumstances, the Nippon Coke & Engineering Group recorded an increase of 45,677 million yen in consolidated net sales, compared with the corresponding period of the previous fiscal year, to 94,195 million yen, due partly to improvement in market conditions for coking coal and coke products in the mainstay Coke Business as well as depreciation of the yen. On the profit front, profit margins decreased due to the sharp increase in the price of coking coal and other factors. Subsequently, market conditions for coking coal declined sharply, leading to a write-down of inventories at the end of the period. As a result, the Group recorded a consolidated operating loss of 2,198 million yen, compared with operating income of 6,113 million yen in the corresponding period of the previous fiscal year, and a consolidated ordinary loss of 3,727 million yen, compared with ordinary income of 5,886 million yen in the corresponding period of the previous fiscal year.

Net loss attributable to owners of the parent for the first half of the fiscal year ending March 31, 2023 was 2,676 million yen, compared to net income attributable to owners of the parent of 3,959 million yen in the corresponding period of the previous fiscal year.

Segment Information

Net sales in the Coke Business increased 33,344 million yen year on year to 64,771 million yen due to the aforementioned reasons and other factors. An operating loss of 3,635 million yen was recorded, compared to operating income of 5,268 million yen for the corresponding period of the previous fiscal year.

Net sales in the Fuel and Resource Recycling Business increased 11,916 million yen year on year to 24,132 million yen. Operating income rose 334 million yen year on year to 1,573 million yen.

In the Comprehensive Engineering Business, net sales increased 373 million yen year on year to 3,563 million yen. Operating income rose 210 million yen year on year to 505 million yen.

In the Other Businesses segment, net sales were up 42 million yen year on year to 1,728 million yen. Operating income increased 113 million yen year on year to 244 million yen.

1. Discussion of Consolidated Financial Position

Total assets as of September 30, 2022 stood at 145,499 million yen, 16,732 million yen higher than the end of the previous fiscal year. The main changes were merchandise and finished goods, which were up 10,737 million yen; raw materials and supplies, which were up 2,476 million yen; and construction in progress, which was up 2,427 million yen.

Total liabilities as of September 30, 2022 stood at 92,915 million yen, 21,491 million yen higher than at the previous fiscal year-end. In main movements, short-term loans payable were up 21,255 million yen, other current liabilities were up 1,273 million yen, and income taxes payable were down 2,014 million yen.

Total net assets as of September 30, 2022 stood at 52,584 million yen, down 4,759 million yen compared with the end of the previous fiscal year, mainly due to a decrease in retained earnings.

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