Nippon Coke & Engineering : Consolidated Financial Report for the First Quarter of the Fiscal Year Ending March 31 2023 J-GAAP

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

August 4, 2022

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

[J-GAAP]

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:	August 12, 2022
Scheduled date of dividend payment commencement:	-
Holding of financial results briefing:	No
	(Figures are rounded down to the nearest million yen)

1. Consolidated Performance for the First Quarter of the Fiscal Year Ending March 31, 2023 (April 1 to June 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 Income	Ordinary Income	Net Income Attributable
		to Owners of the Parent
	First Quarter of the Fiscal	42,230	90.2%	-672	-	-1,725	-	-1,169		-
	Year Ending March 31, 2023
	First Quarter of the Fiscal	22,207	9.9%	2,761	-	2,652	-	1,733		-
	Year Ended March 31, 2022
Note: Comprehensive income: First Quarter of the Fiscal Year Ending March 31, 2023	-1,209 million yen (-%)
	First Quarter of the Fiscal Year Ended March 31, 2022	1,688 million yen (-%)
		Net Income	Diluted Net Income per
		per Share (Yen)	Share (Yen)
	First Quarter of the Fiscal		-4.02			-
	Year Ending March 31, 2023
	First Quarter of the Fiscal		5.96			-
	Year Ended March 31, 2022

1. Consolidated Financial Position

			(In millions of yen unless otherwise stated)
		Total Assets	Net Assets	Equity Ratio (%)
	June 30, 2022	145,319		54,096	37.2
	March 31, 2022	128,767		57,343	44.5
	(Reference) Shareholders' equity:	June 30, 2022 54,096	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	Interim Period		Third Quarter		Year-End
Fiscal Year Ended March 31, 2022	-	0.00		-	7.00	7.00
Fiscal Year Ending March 31, 2023	-
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 Quarter of the Fiscal Year Ending March 31, 2023

3. Consolidated Performance Forecast 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	Ordinary Income	Net Income Attributable	Net Income per
	Income	to Owners of the Parent	Share (Yen)
Interim Period	102,000	110.2%	-1,300	-	-2,500	-	-1,900	-	-6.53
Full Fiscal Year	185,000	32.6%	2,400	-410.5%	900	-	0	-	0.00

Note: Revisions to the most recently announced performance forecasts: Yes

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 principles 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	June 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	June 30, 2022	11,322,183	shares	March 31, 2022	11,321,741 shares
end of the period
(c) Average number of	First quarter of the			First quarter of the
shares for the period	fiscal year ending	291,027,533	shares	fiscal year ended	291,028,651 shares
(fiscal 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 Quarter of the Fiscal Year Ending March 31, 2023

1. Qualitative Information regarding Quarterly Financial Report

1. Discussion of Consolidated Business Results

During the first quarter (April 1, 2022 to June 30, 2022) of the fiscal year ending March 31, 2023, the Japanese economy faced rising raw material prices and risks associated with economic slowdowns outside Japan, which required full attention, amid concerns about a renewed spread of COVID-19 and the prolonged conflict in Ukraine.

Under these circumstances, the Nippon Coke & Engineering Group recorded an increase of 20,023 million yen in consolidated net sales, compared with the corresponding period of the previous fiscal year, to 42,230 million yen, due partly to improvement in market conditions for coking coal and exchange rate fluctuations in the mainstay Coke Business. On the profit front, profit margins decreased due to the sharp increase in the price of coking coal. 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 672 million yen, compared with operating income of 2,761 million yen in the corresponding period of the previous fiscal year, and a consolidated ordinary loss of 1,725 million yen, compared with ordinary income of 2,652 million yen in the corresponding period of the previous fiscal year.

Net loss attributable to owners of the parent for the first quarter of the fiscal year ending March 31, 2023 was 1,169 million yen, compared to net income attributable to owners of the parent of 1,733 million yen in the corresponding period of the previous fiscal year.

Segment Information

Net sales in the Coke Business increased 16,150 million yen year on year to 30,766 million yen due to the aforementioned reasons and other factors. An operating loss of 1,180 million yen was recorded, compared to operating income of 2,394 million yen for the corresponding period of the previous fiscal year.

Net sales in the Fuel and Resource Recycling Business increased 3,447 million yen year on year to 8,997 million yen. Operating income decreased 51 million yen year on year to 590 million yen.

In the Comprehensive Engineering Business, net sales increased 356 million yen year on year to 1,654 million yen. Operating income rose 141 million yen year on year to 252 million yen.

In the Other Businesses segment, net sales were up 68 million yen year on year to 812 million yen. Operating income increased 78 million yen year on year to 84 million yen.

1. Discussion of Consolidated Financial Position

Total assets as of June 30, 2022 stood at 145,319 million yen, 16,552 million yen higher than the end of the previous fiscal year. The main changes were merchandise and finished goods, which were up 10,833 million yen; raw materials and supplies, which were up 8,898 million yen; and notes and accounts receivable - trade and contract assets, which were down 5,033 million yen.

Total liabilities as of June 30, 2022 stood at 91,223 million yen, 19,799 million yen higher than at the previous fiscal year-end. In main movements, notes and accounts payable - trade were up 13,447 million yen, short-term loans payable were up 8,234 million yen, and income taxes payable were down 2,876 million yen.

Total net assets as of June 30, 2022 stood at 54,096 million yen, down 3,247 million yen compared with the end of the previous fiscal year, mainly due to a decrease in retained earnings.

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