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

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

Consolidated Financial Report for the First Three Quarters of the

Fiscal Year Ending March 31, 2023

		February 3, 2023
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:	February 14, 2023
Scheduled date of dividend payment commencement:	-

(Figures are rounded down to the nearest million yen)

1. Consolidated Performance for the First Three Quarters of the Fiscal Year Ending March 31, 2023 (April 1 to December 31, 2022)

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

(In millions of yen unless otherwise stated; percentage figures show the year-on-year change.)

Net Sales

Operating Income

Ordinary Income

Net Income Attributable

to Owners of the Parent

First Three Quarters of the Fiscal

133,621

58.1%

-3,256

‐

-4,267

‐

-3,296

‐

Year Ending March 31, 2023

First Three Quarters of the Fiscal

84,504

33.7%

10,386

202.2%

9,866

235.4%

6,604

283.2%

Year Ended March 31, 2022

Note: Comprehensive income: First Three Quarters of the Fiscal Year Ending March 31, 2023

-3,262 million yen (‐%)

First Three Quarters of the Fiscal Year Ended March 31, 2022

6,610 million yen (242.9%)

Net Income per

Diluted Net Income per

Share (Yen)

Share (Yen)

First Three Quarters of the Fiscal

-11.33

‐

Year Ending March 31, 2023

First Three Quarters of the Fiscal

22.70

‐

Year Ended March 31, 2022

(2)

Consolidated Financial Position

Total Assets

Net Assets

Equity Ratio (%)

December 31, 2022

143,546

52,043

36.3

March 31, 2022

128,767

57,343

44.5

(Reference) Shareholders' equity: December 31, 2022 52,043 million yen

March 31, 2022 57,343 million yen

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Dividend Information

Dividends (Yen)

End of the

End of the

End of the

Fiscal

Total

First Quarter

Interim Period Third Quarter

Year-End

The Fiscal Year Ended March 31, 2022

‐

0.00

‐

7.00

7.00

The Fiscal Year Ending March 31, 2023

‐

0.00

‐

The Fiscal Year Ending March 31, 2023 (forecast)

0.00

0.00

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

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Nippon Coke & Engineering Co., Ltd. (3315) Consolidated Financial Report for the First Three Quarters 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 show the year-on-year change.)

Net Sales	Operating Income	Ordinary Income	Net Income Attributable	Net Income per
to Owners of the Parent	Share (Yen)
Full Fiscal Year 174,000 39.5%	-1,300	‐	-1,900	‐	-2,000	‐	-6.87

Note: Revisions to the most recently announced dividend 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 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	December 31, 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	December 31, 2022	11,322,734 shares	March 31, 2022	11,321,741 shares
end of the period
(c) Average number of	First three quarters of		First three quarters of
shares for the period	the fiscal year ending	291,027,244 shares	the fiscal year ended	291,028,363 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 Three Quarters of the Fiscal Year Ending March 31, 2023

1. Qualitative Information regarding Quarterly Financial Report

1. Discussion of Consolidated Business Results

During the first three quarters (April 1, 2022 to December 30, 2022) of the fiscal year ending March 31, 2023, the Japanese economy continued to face volatile raw material prices caused by the prolonged conflict in Ukraine and impacts from COVID-19, while also facing downward risks from overseas economic situations, such as exchange rate trends.

Under these circumstances, the Nippon Coke & Engineering Group recorded an increase of 49,117 million yen in consolidated net sales, compared with the corresponding period of the previous fiscal year, to 133,621 million yen, due partly to improvement in market conditions for coking coal in the mainstay Coke Business as well as depreciation of the yen. On the profit front, the Group recorded a consolidated operating loss of 3,256 million yen, compared with operating income of 10,386 million yen in the corresponding period of the previous fiscal year. This loss was due to the impact of overvalued inventories resulting from a sharp decline in the coking coal market after a sharp rise in the market price, and a write-down of inventories at the end of the third quarter. The Group recorded a consolidated ordinary loss of 4,267 million yen, compared with ordinary income of 9,866 million yen in the corresponding period of the previous fiscal year.

Net loss attributable to owners of the parent for the first three quarters of the fiscal year ending March 31, 2023 was 3,296 million yen, compared to net income attributable to owners of the parent of 6,604 million yen in the corresponding period of the previous fiscal year.

Segment Information

Due to the aforementioned reasons and other factors, net sales in the Coke Business increased 32,135 million yen year on year to 88,139 million yen. An operating loss of 5,731 million yen was recorded, compared to operating income of 8,963 million yen for the corresponding period of the previous fiscal year.

Net sales in the Fuel and Resource Recycling Business increased 16,487 million yen year on year to 37,345 million yen. Operating income rose 731 million yen year on year to 2,525 million yen.

In the Comprehensive Engineering Business, net sales increased 463 million yen year on year to 5,405 million yen. Operating income rose 169 million yen year on year to 747 million yen.

In the Other Businesses segment, net sales were up 30 million yen year on year to 2,731 million yen. Operating income increased 177 million yen year on year to 459 million yen.

1. Discussion of Consolidated Financial Position

Total assets as of December 31, 2022 stood at 143,546 million yen, 14,778 million yen higher than the end of the previous fiscal year. The main changes were merchandise and finished goods, which were up 9,469 million yen; raw materials and supplies, which were up 3,973 million yen; construction in progress, which was up 3,408 million yen; other current liabilities, which were up 2,263 million yen; and accounts receivable - trade and contract assets, which were down 5,579 million yen.

Total liabilities as of December 31, 2022 stood at 91,502 million yen, 20,078 million yen higher than at the previous fiscal year-end. In main movements, short-term loans payable were up 24,165 million yen, other current liabilities were up 1,363 million yen, notes and accounts payable - trade shrank by 3,023 million yen, and income taxes payable were down 2,938 million yen.

Total net assets as of December 31, 2022 stood at 52,043 million yen, down 5,300 million yen compared with the end of the previous fiscal year, mainly due to a decrease in retained earnings.

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