Nippon Coke & Engineering : Financial Report for the First Quarter of the Fiscal Year Ending March 31, 2024

Nippon Coke & Engineering Co., Ltd. (3315) Consolidated Financial Report for the First Quarter of the Fiscal Year Ending March 31, 2024

August 3, 2023

Consolidated Financial Report for the First Quarter of the Fiscal Year Ending March 31, 2024

[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 10, 2023
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, 2024 (April 1 to June 30, 2023)

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	38,207	-9.5%	788	-	523	-	378	-
	Year Ending March 31, 2024
	First Quarter of the Fiscal	42,230	90.2%	-672	-	-1,725	-	-1,169	-
	Year Ended March 31, 2023
Note: Comprehensive income: First Quarter of the Fiscal Year Ending March 31, 2024	465 million yen (-%)
	First Quarter of the Fiscal Year Ended March 31, 2023	-1,209 million yen (-%)
		Net Income	Diluted Net Income per
		per Share (Yen)	Share (Yen)
	First Quarter of the Fiscal		1.30		-
	Year Ending March 31, 2024
	First Quarter of the Fiscal		-4.02		-
	Year Ended March 31, 2023

1. Consolidated Financial Position

				(In millions of yen unless otherwise stated)
		Total Assets		Net Assets	Equity Ratio (%)
	June 30, 2023	133,537	54,742	41.0
	March 31, 2023	140,202	54,277	38.7
(Reference) Shareholders' equity:	June 30, 2023	54,742 million yen
		March 31, 2023	54,277 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, 2023	-	0.00		-	0.00	0.00
Fiscal Year Ending March 31, 2024	-
Fiscal Year Ending March 31, 2024		0.00		-	3.00	3.00
(forecast)
Note: Revisions to the most recently announced dividend forecasts: No

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First quarter of the fiscal year ending March 31, 2024

June 30, 2023

June 30, 2023

Nippon Coke & Engineering Co., Ltd. (3315) Consolidated Financial Report for the First Quarter of the Fiscal Year Ending March 31, 2024

3. Consolidated Performance Forecast for the Fiscal Year Ending March 31, 2024 (April 1, 2023 to March 31, 2024)

(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	82,000	-12.9%	3,200		-	2,800	-	1,500	-	5.15
Full Fiscal Year	159,000	-8.7%	6,300		-	5,500	-	2,500	-	8.59

Note: Revisions to the most recently announced performance 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: -

1. Application of Special Accounting Practices for the Preparation of Quarterly Consolidated Financial Statements: No
2. Changes in Accounting Policies, Changes in Accounting Estimates, and Retrospective Restatements
3. 1. Changes in accounting policies in accordance with revisions to accounting standards and other regulations: No
   2. Changes in accounting principles other than (a) above: No
   3. Changes in accounting estimates: No
   4. Retrospective restatements: No

1. Issued Shares (Common Stock)
2. 1. Number of issued shares as of the end of the period (including treasury stock)
   2. Number of shares of treasury stock as of the end of the period
   3. Average number of shares for the period (fiscal year-to-date)

302,349,449 shares	March 31, 2023	302,349,449 shares
11,323,307	shares	March 31, 2023	11,323,046 shares
		First quarter of the
291,026,293	shares	fiscal year ended	291,027,533 shares
		March 31, 2023

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, 2024

1. Qualitative Information regarding Quarterly Financial Report

1. Discussion of Consolidated Business Results

During the first quarter (April 1, 2023 to June 30, 2023) of the fiscal year ending March 31, 2024, the Japanese economy continued to face volatile raw material prices and risks associated with economic slowdowns outside Japan caused by the conflict in Ukraine and global monetary tightening.

Under these circumstances, the Nippon Coke & Engineering Group recorded a decrease of 4,023 million yen in consolidated net sales, compared with the corresponding period of the previous fiscal year, to 38,207 million yen, due to the deterioration in market conditions for coking coal and decreased productions resulting from the implementation of the 2A coke kiln renewal project in the mainstay Coke Business. On the profit front, the Group recorded a consolidated operating income of 788 million yen, compared to an operating loss of 672 million yen for the corresponding period of the previous fiscal year, mainly due to the securing of profit margins as the volatility in the coking coal market subsided. The Group recorded a consolidated ordinary income of 523 million yen, compared to an ordinary loss of 1,725 million yen for the corresponding period of the previous fiscal year.

Net income attributable to owners of the parent for the first quarter of the fiscal year ending March 31, 2024 was 378 million yen, compared to net loss attributable to owners of the parent of 1,169 million yen for the corresponding period of the previous fiscal year.

Segment Information

Net sales in the Coke Business fell 5,405 million yen year on year to 25,360 million yen due to the aforementioned reasons and other factors. An operating income of 39 million yen was recorded, compared to an operating loss of 1,180 million yen for the corresponding period of the previous fiscal year.

Net sales in the Fuel and Resource Recycling Business increased 1,327 million yen year on year to 10,325 million yen. Operating income rose 414 million yen year on year to 1,005 million yen.

In the Comprehensive Engineering Business, net sales increased 43 million yen year on year to 1,698 million yen. Operating income fell 172 million yen year on year to 80 million yen.

In the Other Businesses segment, net sales were up 11 million yen year on year to 823 million yen. Operating income decreased 8 million yen year on year to 76 million yen.

1. Discussion of Consolidated Financial Position

Total assets as of June 30, 2023 stood at 133,537 million yen, 6,665 million yen lower than at the end of the previous fiscal year. The main changes were in machinery, equipment and vehicles, which were up 801 million yen; merchandise and finished goods, which were down 3,178 million yen; raw materials and supplies, which were down 2,424 million yen; and other current assets, which shrank by 1,793 million yen.

Total liabilities as of June 30, 2023 stood at 78,794 million yen, 7,131 million yen lower than at the previous fiscal year-end. In main movements, short-term loans payable were down 8,090 million yen.

Total net assets as of June 30, 2023 stood at 54,742 million yen, up 465 million yen compared with the end of the previous fiscal year. This was mainly attributable to an increase in retained earnings.

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