Summary of Consolidated Financial Results [Japanese GAAP]
For the Fiscal Year Ended March 31, 2021
May 11, 2021
Listed company: Nippon Kayaku Co., Ltd. (URL https://www.nipponkayaku.co.jp/english/)
Listed stock exchange: First Section, Tokyo Stock Exchange
Code No.: 4272
Representative (name, position): Atsuhiro Wakumoto, President
Director in charge of inquiries: Tsutomu Kawamura, Executive Director, General Manager of Finance & Accounting Division, Financial Group
Scheduled date of the Annual Shareholders Meeting: June 25, 2021
Scheduled date for start of dividend payments: June 28, 2021
Filing date of securities report: June 25, 2021
Preparation of supplementary materials for financial results: Yes
Financial results presentation meeting: Yes (for securities analysts and institutional investors)
1. Consolidated Business Results for the Fiscal Year Ended March 31, 2021 (April 1, 2020-March 31, 2021) (Figures shown are rounded down to the nearest million yen.)
(1) Consolidated Operating Results
(Percentages indicate amount of change from the same period of the previous fiscal year.)
Net sales | Operating income | Ordinary income | Profit attributable to | |||||||||||||
owners of parent | ||||||||||||||||
Fiscal year ended | Million yen | % | Million yen | % | Million yen | % | Million yen | % | ||||||||
173,381 | (1.0) | 15,194 | (13.1) | 16,538 | (8.3) | 12,574 | (1.9) | |||||||||
March 31, 2021 | ||||||||||||||||
Fiscal year ended | 175,123 | 1.4 | 17,485 | (12.3) | 18,026 | (16.6) | 12,815 | (13.7) | ||||||||
March 31, 2020 | ||||||||||||||||
Note: Comprehensive | income | Fiscal year ended March 31, 2021: 23,368 million yen (640.1%) | ||||||||||||||
Fiscal year ended March 31, 2020: 3,157 million yen ((77.1)%) | ||||||||||||||||
Profit attributable | Profit attributable | Ordinary income | ||||||||||||||
to owners of | to owners of | Return on equity | Operating income | |||||||||||||
parent per | parent per | to total assets | to net sales ratio | |||||||||||||
ratio | ||||||||||||||||
share-primary | share-diluted | |||||||||||||||
Fiscal year ended | Yen | Yen | % | % | % | |||||||||||
73.62 | 73.61 | 5.8 | 5.8 | 8.8 | ||||||||||||
March 31, 2021 | ||||||||||||||||
Fiscal year ended | 74.25 | 74.23 | 6.0 | 6.3 | 10.0 | |||||||||||
March 31, 2020 | ||||||||||||||||
Reference: Equity | in earnings of affiliates | |||||||||||||||
Fiscal year ended March 31, 2021: 263 million yen | ||||||||||||||||
Fiscal year ended March 31, 2020: 34 million yen | ||||||||||||||||
(2) Consolidated Financial Position | ||||||||||||||||
Total assets | Net assets | Equity ratio | Net assets per share | |||||||||||||
As of March 31, | Million yen | Million yen | % | Yen | ||||||||||||
294,535 | 228,273 | 77.2 | 1,332.06 | |||||||||||||
2021 | ||||||||||||||||
As of March 31, | 278,496 | 210,019 | 75.2 | 1,225.71 | ||||||||||||
2020 | ||||||||||||||||
Reference: Equity | As of March 31, 2021: | 227,506 million yen | ||||||||||||||
As of March 31, 2020: 209,344 million yen |
This document is an English translation of parts of the Japanese-language original.
All financial information has been prepared in accordance with generally accepted accounting principles in Japan.
Nippon Kayaku Co., Ltd.
Summary of Consolidated Financial Results [Japanese GAAP]
For the Fiscal Year Ended March 31, 2021
(3) Status of Consolidated Cash Flows
Cash flows from | Cash flows from | Cash flows from | Cash and cash | |||||||||||||
equivalents at | ||||||||||||||||
operating activities | investing activities | financing activities | ||||||||||||||
end of year | ||||||||||||||||
Fiscal year ended | Million yen | Million yen | Million yen | Million yen | ||||||||||||
24,408 | (17,606) | (8,402) | 47,483 | |||||||||||||
March 31, 2021 | ||||||||||||||||
Fiscal year ended | 27,281 | (17,543) | (13,894) | 46,663 | ||||||||||||
March 31, 2020 | ||||||||||||||||
2. Status of Dividends | ||||||||||||||||
Dividend amount per share | Total dividend | Dividend | Dividend | |||||||||||||
End of | End of | End of | payout to net | |||||||||||||
End of | Year | payment | payout ratio | |||||||||||||
first | second | third | year | (year) | (consolidated) | assets ratio | ||||||||||
quarter | quarter | quarter | (consolidated) | |||||||||||||
Yen | Million yen | % | % | |||||||||||||
Fiscal year ended | - | 15.00 | - | 15.00 | 30.00 | 5,159 | 40.4 | 2.4 | ||||||||
March 31, 2020 | ||||||||||||||||
Fiscal year ended | - | 15.00 | - | 15.00 | 30.00 | 5,123 | 40.7 | 2.3 | ||||||||
March 31, 2021 | ||||||||||||||||
Fiscal year ending | ||||||||||||||||
March 31, 2022 | - | 15.00 | - | 15.00 | 30.00 | 50.7 | ||||||||||
(forecast) |
3. Consolidated Business Results Forecasts for the Fiscal Year Ending March 31, 2022 (April 1, 2021- March 31, 2022)
(Percentages indicate amount of change from the same period of the previous fiscal year.)
Net sales | Operating income | Ordinary income | Profit attributable to | Profit attributable to | ||||||
owners of parent | owners | |||||||||
of parent per share | ||||||||||
First | Million yen | % | Million yen | % | Million yen | % | Million yen | % | Yen | |
84,500 | 4.9 | 5,300 | (24.0) | 5,500 | (25.1) | 4,500 | (7.9) | 26.35 | ||
half | ||||||||||
Full | 176,000 | 1.5 | 12,400 | (18.4) | 13,000 | (21.4) | 10,100 | (19.7) | 59.14 | |
year | ||||||||||
Notes
- Significant changes in subsidiaries during the fiscal period (changes in designated subsidiaries that result in changes in scope of consolidation): None
- Changes to accounting policies and estimates and restatements
- Changes to accounting policies associated with revision of accounting standards or similar items: None
- Changes other than [1]: None
- Changes to accounting estimates: None
- Restatements: None
- Number of shares issued (common stock)
-
Number of shares issued at end of the fiscal period (including treasury stock) As of March 31, 2021: 177,503,570 shares
As of March 31, 2020: 177,503,570 shares - Number of treasury stock at end of the fiscal period As of March 31, 2021: 6,710,650 shares
As of March 31, 2020: 6,709,685 shares - Average number of shares during the fiscal period Fiscal year ended March 31, 2021: 170,793,371 shares Fiscal year ended March 31, 2020: 172,597,255 shares
-
Number of shares issued at end of the fiscal period (including treasury stock) As of March 31, 2021: 177,503,570 shares
This document is an English translation of parts of the Japanese-language original.
All financial information has been prepared in accordance with generally accepted accounting principles in Japan.
Nippon Kayaku Co., Ltd.
Summary of Consolidated Financial Results [Japanese GAAP]
For the Fiscal Year Ended March 31, 2021
Reference: Overview of Non-consolidated Business Results
1. Non-consolidated Business Results for the Fiscal Year Ended March 31, 2021 (April 1, 2020-March 31, 2021)
(1) Non-consolidated Operating Results
(Percentages indicate amount of change from the same period of the previous fiscal year.)
Net sales | Operating income | Ordinary income | ||||||||||
Fiscal year ended | Million yen | % | Million yen | % | Million yen | % | ||||||
115,618 | 8.5 | 9,436 | 4.0 | 13,459 | (0.3) | |||||||
March 31, 2021 | ||||||||||||
Fiscal year ended | 106,608 | 3.1 | 9,075 | 5.3 | 13,494 | 3.9 | ||||||
March 31, 2020 | ||||||||||||
Net income | Net income per share | Diluted net income | ||||||||||
per share | ||||||||||||
Fiscal year ended | Million yen | % | Yen | Yen | ||||||||
22,610 | 111.2 | 132.38 | - | |||||||||
March 31, 2021 | ||||||||||||
Fiscal year ended | 10,703 | 2.7 | 62.01 | - | ||||||||
March 31, 2020 | ||||||||||||
(2) Non-consolidated Financial Position | ||||||||||||
Total assets | Net assets | Equity ratio | Net assets per share | |||||||||
As of March 31, | Million yen | Million yen | % | Yen | ||||||||
230,810 | 180,428 | 78.2 | 1,056.38 | |||||||||
2021 | ||||||||||||
As of March 31, | 215,528 | 160,823 | 74.6 | 941.59 | ||||||||
2020 | ||||||||||||
Reference: Equity As of March 31, 2021: 180,428 million yen
As of March 31, 2020: 160,823 million yen
- Summary financial statements are not subject to audit by a certified public accountant or audit firm.
- Analysis related to appropriate use of the business results forecasts, and other notes
(Disclaimer concerning forward-looking statements)
The information in this report constitutes forward-looking statements regarding future events and performance. This information is based on the beliefs and assumptions of management in light of information currently available to it at the time of announcement and subject to a number of uncertainties that may affect future results. Actual business results may differ substantially from the forecasts herein due to various factors. For matters pertaining to business forecasts, please refer to "1. Overview of Operating Results, Financial Position, and Future Outlook, (4) Future Outlook" on page 4 of the Supplementary Information.
(How to obtain the supplementary materials for financial results)
The Company plans to hold a teleconference for securities analysts and institutional investors on Wednesday, May 12, 2021. The supplementary materials for financial results for distribution at this teleconference will be posted on the Company's website.
This document is an English translation of parts of the Japanese-language original.
All financial information has been prepared in accordance with generally accepted accounting principles in Japan.
Nippon Kayaku Co., Ltd.
Summary of Consolidated Financial Results [Japanese GAAP]
For the Fiscal Year Ended March 31, 2021
Supplementary Information
Contents | ||
1. Overview of Operating Results, Financial Position, and Future Outlook | 2 | |
(1) | Overview of Operating Results for the Fiscal Year Ended March 31, 2021 | 2 |
(2) | Overview of Financial Position for the Fiscal Year Ended March 31, 2021 | 3 |
(3) | Overview of Cash Flows for the Fiscal Year Ended March 31, 2021 | 3 |
(4) | Future Outlook | 4 |
(5) | Basic Policy Concerning Profit Dividends and Dividends for the Fiscal Year Ended March | 5 |
31, 2021 and Fiscal Year Ending March 31, 2022 | ||
2. Basic Stance on Selection of Accounting Principles | 5 | |
3. Consolidated Financial Statements and Notes to Consolidated Financial Statements | 6 | |
(1) | Consolidated Balance Sheets | 6 |
(2) | Consolidated Statements of Income & Consolidated Statements of Comprehensive Income | 8 |
(3) | Consolidated Statements of Changes in Net Assets | 10 |
(4) | Consolidated Statements of Cash Flows | 12 |
(5) | Notes to Consolidated Financial Statements | 14 |
Notes Regarding Assumptions for the Going Concern | 14 | |
Business Combinations, etc. | 14 | |
Segment Information | 16 | |
Significant Subsequent Events | 18 |
This document is an English translation of parts of the Japanese-language original.
All financial information has been prepared in accordance with generally accepted accounting principles in Japan.
1
Nippon Kayaku Co., Ltd.
Summary of Consolidated Financial Results [Japanese GAAP]
For the Fiscal Year Ended March 31, 2021
1. Overview of Operating Results, Financial Position, and Future Outlook
(1) Overview of Operating Results for the Fiscal Year Ended March 31, 2021
In this fiscal year (April 1, 2020 to March 31, 2021), a deceleration in the overall global economy occurred from restrictions on economic activity to prevent the spread of the novel coronavirus. The U.S. and Europe experienced rapid deterioration in their economies, but measures taken to combat the virus and economic measures implemented by each country provided underlying support and signs of a gradual rebound were seen in consumer spending and corporate revenues. In China, the economy continued to recover as economic activity resumed. In the Japanese economy, improvement in consumer spending and corporate revenues has been evident, but the unpredictability of the timing for bringing the pandemic under control has caused uncertainty over the future to persist.
In the functional chemicals industry, which encompasses functional materials, the need is increasing for high-performance materials for use in high-speed (5G) communication devices in the information and communication fields, for high-performance materials and optical materials for the increasingly sophisticated electronic equipment in vehicles, and for various kinds of color materials for digital printing in the printing industry. The global trends in energy and resource conservation are also creating demand for high-strength, lightweight materials and high-performance catalysts for chemical reactions.
In the pharmaceuticals industry, there is need to both maintain Japan's national health insurance system and promote innovations that will deliver drugs with superior therapeutic efficacy to patients with intractable conditions. The generic drugs and biosimilars markets are experiencing high growth amid healthcare system reforms that take the costs of social security and medical care into consideration and efforts to maintain healthcare costs at a reasonable level. Domestic manufacturing of biomedicines and biosimilars is promising from the perspective of industry development.
In the automotive industry, the global spread of the novel coronavirus caused a rapid decline in automobile production, but improvement began in the Chinese market and signs of a rebound were also seen in the European and U.S. markets from the latter half of the fiscal year. However, the timing for bringing the pandemic under control is still unpredictable, and the speed of the rebound in auto production has slowed.
Amid these conditions, the Nippon Kayaku Group worked to implement the key themes and resolve the mid- and long-term key issues outlined in "KAYAKU Next Stage," the mid-term business plan launched in the fiscal year ended March 31, 2020, while also making active use of flextime, telecommuting, and other systems to accommodate the restrictions on corporate activity. We took these steps to ensure the safety of employees working in the Company and at Group companies while also implementing a new lifestyle and promote efficient workstyles aimed at minimizing the impact on our business.
As a result, net sales for the fiscal year ended March 31, 2021 totaled 173,381 million yen, a decrease of 1,741 million yen (1.0%) year-on-year. Sales in the safety systems business declined, while sales in the functional chemicals and the pharmaceuticals businesses outperformed the previous fiscal year.
Consolidated operating income totaled 15,194 million yen, a decrease of 2,291 million yen (13.1%) year-on-year. This decline resulted from underperformance of the functional chemicals and safety systems businesses compared with the previous fiscal year, despite year-on-year growth in the pharmaceuticals business.
Consolidated ordinary income was 16,538 million yen, a decline of 1,487 million yen (8.3%) from the previous
year.
Profit attributable to owners of parent was 12,574 million yen, a decrease of 241 million yen (1.9%) year-on-year.
Performance by business segment is as described below.
[1] Functional Chemicals Business
Sales stood at 72,465 million yen, an increase of 924 million yen (1.3%) year-on-year.
The functional materials business as a whole outperformed the previous fiscal year. The outperformance resulted from strong sales of epoxy resins used in semiconductor encapsulation from increased demand for IT equipment due to teleworking in addition to the proliferation of high-speed (5G) communications devices and IoT, and the increasingly sophisticated electronic equipment in vehicles. The addition of the LCD and semiconductor cleaner business through a business acquisition contributed to segment performance.
The color materials business saw strong sales of colorants for inkjet printers for consumer use due to increased demand for printing while telecommuting from home. However, the color materials business as a whole underperformed the previous fiscal year due to sluggish sales of colorants for inkjet printers in industrial applications, developer for thermal paper, and dyes for textiles.
This document is an English translation of parts of the Japanese-language original.
All financial information has been prepared in accordance with generally accepted accounting principles in Japan.
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Nippon Kayaku Co. Ltd. published this content on 20 May 2021 and is solely responsible for the information contained therein. Distributed by Public, unedited and unaltered, on 20 May 2021 01:01:06 UTC.