Nippon Sheet Glass Company, Limited [5202] FY 2023 2nd Quarter Consolidated Financial Results
FY 2023 2nd Quarter Consolidated Financial Results 10 November 2022 (English translation of the Japanese original)
Listed Company Name: | Nippon Sheet Glass Company, Limited | Stock Exchange Listing: | Tokyo | |||
Code Number: | 5202 | (URL: http://www.nsg.com) | ||||
Representative: | Representative Executive Officer, | Name: | Shigeki Mori | |||
President and CEO | ||||||
Inquiries to: | General Manager, | Name: | Hiroyuki Genkai | |||
Investor Relations | Tel: | +81 3 5443 0100 | ||||
Submission of quarterly report to MOF: | 14 November 2022 | Payment of dividends start from: N/A | ||||
Quarterly result presentation papers: | Yes | |||||
Quarterly result presentation meeting: | Yes (Teleconference for institutional investors) |
1. Consolidated business results for FY 2023 2nd Quarter (From 1 April to 30 September 2022)
- Consolidated business results
(Loss)/profit | Total | ||||||||||||||||||
(Loss)/profit | (Loss)/profit for | attributable to | |||||||||||||||||
Revenue | Operating profit | comprehensive | |||||||||||||||||
before taxation | the period | owners of the | |||||||||||||||||
income | |||||||||||||||||||
parent | |||||||||||||||||||
¥ millions | % | ¥ millions | % | ¥ millions | % | ¥ millions | % | ¥ millions | % | ¥ millions | % | ||||||||
2Q FY 2023 | 375,651 | 29.2 | 14,437 | 13.7 | (34,543) | - | (37,006) | - | (38,816) | - | 325 | (98.6) | |||||||
2Q FY 2022 | 290,687 | 31.2 | 12,700 | 292.2 | 14,727 | 9,557 | 8,598 | 22,563 | |||||||||||
- | - | - | - | ||||||||||||||||
Earnings per | |||||||||||||||||||
share - basic | |||||||||||||||||||
2Q FY 2023 | ¥ | (438.08) | |||||||||||||||||
2Q FY 2022 | ¥ | 84.02 | |||||||||||||||||
Note: | Operating profit in the above table is defined as being operating profit stated before exceptional items. |
(2) Changes in financial position
Total | Total | |||||||||||||
Total assets | Total equity | shareholders' | shareholders' | |||||||||||
equity | equity ratio | |||||||||||||
¥ millions | ¥ millions | ¥ millions | % | |||||||||||
FY 2023 | 2nd Quarter | 1,007,434 | 182,965 | 151,856 | 15.1 | |||||||||
FY 2022 | Full year | |||||||||||||
939,281 | 169,355 | 145,291 | 15.5 | |||||||||||
2. Dividends
Dividends per share | |||||||||||||||||||||
1st Quarter | 2nd Quarter | 3rd Quarter | 4th Quarter | Annual | |||||||||||||||||
FY 2022 | (Actual) | - | ¥ 0.00 | - | ¥ 0.00 | ¥ | 0.00 | ||||||||||||||
FY 2023 | (Actual) | - | ¥ 0.00 | ||||||||||||||||||
FY 2023 | (Forecast) | - | ¥ 0.00 | ¥ | 0.00 | ||||||||||||||||
Note: | There have been no changes to the forecast dividends this quarter. |
- The above table shows dividends on common shares. Please refer to "(Reference) Dividends for Class A Shares" for information regarding dividends on Class A shares, which are unlisted and have different rights from common shares.
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Nippon Sheet Glass Company, Limited [5202] FY 2023 2nd Quarter Consolidated Financial Results
3. Forecast for FY 2023 (From 1 April 2022 to 31 March 2023)
Loss before | Loss for the | Loss attributable | Earnings | |||||||||
Revenue | Operating profit | to owners of the | per share | |||||||||
taxation | period | |||||||||||
parent | - basic | |||||||||||
¥ millions | % | ¥ millions | % | ¥ millions | % | ¥ millions | % | ¥ millions | % | ¥ | ||
Full year | 740,000 | 23.2 | 18,000 | (9.9) | (35,000) | - | (38,000) | - | (41,000) | - | (472.71) | |
Note: | | There have been changes to the forecast results this quarter. |
- Forecast of basic earnings per share for FY2023 is calculated by dividing the profit attributable to owners of the parent after deducting preferred dividends for Class A shares (a rate of 6.5% per annum applied to the outstanding balance at 31 March 2023), by 90,858,624 shares which is the number of ordinary shares issued at 30 September 2022, reduced by the number of treasury stock and restricted shares (261,800 shares).
- For details, please refer to the "Recognition of Exceptional loss, Differences between Actual Results and Previous Forecast, and Revision to Forecast for 2023/3" and the slides on 2023/3 forecast in 2023/3 Second Quarter Results presentation.
4. Other items
- Changes in status of principle subsidiaries --- No
- Changes implemented to the accounting policies, practice and presentations related to the preparation of quarterly consolidated financial statements
- Changes due to revisions in accounting standards under IFRS --- No
- Changes due to other reasons ---No
- Changes in accounting estimates --- No
- Numbers of shares outstanding (common stock)
- Number of shares issued at the end of the period, including shares held as treasury stock: 91,146,999 shares as of 30 September 2022 and 91,000,199 shares as at 31 March 2022
-
Number of shares held as treasury stock at the end of the period:
26,575 shares as at 30 September 2022 and 25,700 shares as at 31 March 2022 - Average number of shares in issue during the period, after deducting shares held as treasury stock: 90,836,265 shares for the period ending 30 September 2022 and 90,694,204 shares for the period ending 30 September 2021
Status of quarterly review procedures taken by external auditors for the quarterly resultsThis document (Tanshin) is out of scope for quarterly review by the external auditors.
Explanation for the appropriate usage of performance projections and other special items
The projections contained in this document are based on information currently available to us and certain assumptions that we consider to be reasonable. Hence the actual results may differ. The major factors that may affect the results include but are not limited to the economic and competitive environment in major markets, product supply and demand shifts, currency exchange and interest rate fluctuations, changes in supply of raw materials and fuel and changes and laws and regulations.
(For Reference) Dividends for Class A Shares
Dividends per share related to Class A Shares with different rights from those of common shares are as follows.
Dividends per share | |||||||||||||
1st Quarter | 2nd Quarter | 3rd Quarter | 4th Quarter | Total | |||||||||
Class A Shares | |||||||||||||
FY2022 (Actual) | - | ¥ 0.00 | - | ¥ | 65,000.00 | ¥ | 65,000.00 | ||||||
FY2023 (Actual) | - | ¥ 0.00 | |||||||||||
FY2023 (Forecast) | - | ¥ | 65,000.00 | ¥ | 65,000.00 | ||||||||
Note: Number of Class A Shares in issue are 30,000 shares. 40,000 Class A Shares were originally issued on 31 March 2017. On 7 December 2018, the Company acquired and then retired a total of 5,000 Class A shares. On 6 June 2019, the Company acquired and then retired a total of 5,000 Class A shares. The forecast of dividends, for Class A shares that have dividend record dates belonging to FY2023, is ¥ 1,950 million.
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Nippon Sheet Glass Company, Limited [5202] FY 2023 2nd Quarter Consolidated Financial Results
[Attachments]
Table of contents in the attachments (including mandatory disclosure items)
- Narratives about financial results
- Business Performance
- Financial Condition
- Prospects
- Consolidated financial statements and their notes
-
(a) Condensed quarterly consolidated income statement
(b) Condensed quarterly consolidated statement of comprehensive income - Condensed quarterly consolidated balance sheet
- Condensed quarterly consolidated statement of changes in equity
- Condensed quarterly consolidated statement of cash flow
- Notes to the condensed quarterly consolidated financial statements
-
(a) Condensed quarterly consolidated income statement
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Nippon Sheet Glass Company, Limited [5202] FY 2023 2nd Quarter Consolidated Financial Results
1. Narratives about financial results
- Business Performance
(a) Background to Results
The Group experienced mixed market conditions during the second quarter of the year. Architectural markets continued to be generally positive, although economic headwinds started to dampen demand somewhat in some regions. Input costs remain at a high level, although continue to be largely offset by selling prices. Demand for solar energy glass was positive. Automotive markets were negatively affected by a shortage of semi-conductors in the supply chain, although there were signs that the magnitude of this issue was beginning to lessen towards the end of the quarter. In addition, price improvements were successfully agreed with a number of automotive customers, with the intention of mitigating the high level of input costs. Technical glass markets were mostly positive, with demand for the Group's products improving across many areas.
Group revenues increased by 29 percent to ¥ 375,651 million (2Q FY2022 ¥ 290,687 million), with the majority of the improvement being in the Architectural business. At constant exchange rates, cumulative revenues would have increased by 19 percent. Operating profits were ¥ 14,437 million (2Q FY2022 ¥ 12,700 million). Net exceptional losses of ¥ 44,949 million included an impairment of goodwill and other intangible assets of ¥ 48,776 million, which represented a full impairment of all remaining goodwill and intangible assets related to the Group's automotive business in Europe originally arising on the acquisition of Pilkington in 2006. Please see note 2 (5)(d) for a further explanation of this item. Taxation charges of ¥ 2,463 million (2Q FY2022 ¥ 5,170 million) are calculated based on the effective rate expected for the full-year, with adjustments for specific individually material items as appropriate. As a consequence of the significant exceptional cost, the Group recorded a loss attributable to owners of the parent of ¥ 38,816 million (2Q FY2022 profit of ¥ 8,598 million).
(b) Review by Business Segment
The Group's business lines cover three core product sectors: Architectural, Automotive, and Technical Glass.
Architectural, representing 49 percent of cumulative revenues, includes the manufacture and sale of flat glass and various interior and exterior glazing products within the commercial and residential markets. It also includes glass for the Solar Energy sector.
Automotive, with 46 percent of cumulative revenues, supplies a wide range of automotive glazing for new vehicles and for replacement markets.
Technical Glass, representing 5 percent of cumulative revenues, comprises several discrete businesses, including the manufacture and sale of very thin glass used as cover glass for displays, lenses and light guides for printers, and glass fiber components for engine timing belts.
Other operations include corporate costs, consolidation adjustments, certain small businesses not included in the segments covered above and the amortization of other intangible assets related to the acquisition of Pilkington.
The table below shows a summary of cumulative results by business segment.
¥ millions | Revenue | Operating profit/(loss) | ||||
2nd Quarter | 2nd Quarter | 2nd Quarter | 2nd Quarter | |||
FY 2023 | FY 2022 | FY 2023 | FY 2022 | |||
Architectural | 182,111 | 132,019 | 15,495 | 13,640 | ||
Automotive | 171,872 | 135,221 | (1,694) | (1,071) | ||
Technical Glass | 20,186 | 21,679 | 5,689 | 5,710 | ||
Other Operations | 1,482 | 1,768 | (5,053) | (5,579) | ||
Total | 375,651 | 290,687 | 14,437 | 12,700 | ||
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Nippon Sheet Glass Company, Limited [5202] FY 2023 2nd Quarter Consolidated Financial Results
Architectural Business
The Architectural business recorded cumulative revenues of ¥ 182,111 million (2Q FY2022: ¥ 132,019 million)
and an operating profit of ¥ 15,495 million (2Q FY2022: ¥ 13,640 million).
Architectural revenues and profits increased from the previous year due to higher selling prices and the translational impact of a weaker Japanese yen.
In Europe, representing 43 percent of the Group's architectural sales, revenues improved significantly as a consequence of increased selling prices and foreign exchange movements. Profits fell however, as the increased prices did not fully offset higher input costs. Volumes showed signs of weakening during the second quarter, as rising inflation and interest rates dampened business and consumer confidence.
In Asia, representing 27 percent of the Group's architectural sales, revenues and profits were above the previous year. Sales volumes increased, and a positive operational performance helped mitigate the effect of increasing input costs.
In the Americas, representing 30 percent of the Group's architectural sales, revenues and profits were ahead of the previous year. Customer demand was positive, although North American logistics constraints continue to negatively affect sales volumes. The Group started to warm-up its second float glass production line in Argentina during the second quarter, with glass production expected from the third quarter.
Automotive Business
The Automotive business recorded cumulative revenues of ¥ 171,872 million (2Q FY2022: ¥ 135,221 million) and
an operating loss of ¥ 1,694 million (2Q FY2022: loss of ¥ 1,071 million).
Volumes continued to be at low levels across most regions, with the increase in consolidated revenues being partly due to the weakening Japanese yen.
Europe represents 41 percent of the Group's automotive sales. Revenues increased, due partly to foreign exchange movements, with overall volumes being negatively affected by a shortage of semi-conductor components at the Group's customers. There were signs in the second quarter that supply chain issues at the Group's customers are starting to be gradually resolved. Profitability continued to be affected by increasing input costs, although this was partly offset by rising sales prices, with the Group successfully concluding price negotiations with a number of customers during the second quarter. Volumes in glass replacement markets were positive.
In Asia, representing 19 percent of the Group's automotive sales, revenues improved from the previous year, as price increases were negotiated with customers to mitigate the effect of rising input costs. Profitability was similar to the previous year.
In the Americas, representing 40 percent of the Group's automotive sales, revenues increased from the previous year whilst profits declined. Demand in North America was generally positive with vehicle manufacturers increasing levels of inventory, although profitability was further affected by increasing input costs. Demand in South America was relatively strong, with volumes improving in Argentina.
Technical Glass Business
The Technical Glass business recorded cumulative revenues of ¥ 20,186 million (2Q FY2022: ¥ 21,679 million)
and an operating profit of ¥ 5,689 million (2Q FY2022: ¥ 5,710 million).
Revenues and profits fell slightly in the Technical Glass business due to the disposal of the Battery Separator division during the previous year. The lost revenue and profits from this disposal was largely offset by positive market conditions experienced by continuing businesses.
In the fine glass business, continued cost reduction efforts and a better sales mix underpinned a further
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NSG - Nippon Sheet Glass Co. Ltd. published this content on 10 November 2022 and is solely responsible for the information contained therein. Distributed by Public, unedited and unaltered, on 10 November 2022 06:26:01 UTC.