Consolidated Financial Results for the Year Ended March 31, 2021(JPGAAP)
May 14, 2021 | |||
Name of listed company: Nissan Chemical Corporation | Stock Exchange: Tokyo | ||
Code Number: 4021 | URL: http://www.nissanchem.co.jp/ | ||
Representative: YAGI Shinsuke, President | |||
Inquiry to: DAIMON Hideki, | Executive Officer and Director of Finance and Accounting Department Tel. +81 3 4463 8404 | ||
Scheduled date of annual shareholders' meeting | : June 25, 2021 | Scheduled dividend payment date : June 28, 2021 | |
Scheduled date of submitting the Annual Securities Report | : June 25, 2021 | ||
Supplemental information | : Yes | ||
Financial results meeting | : Yes (for institutional investors and analysts) | (Amounts rounded down to the nearest million yen) | |
1. Consolidated Financial Results for the Year Ended March 31, 2021 (From April 1, 2020 to March 31, 2021)
(1) Consolidated Operating Results | (% indicates the rate of increase/decrease year on year) | |||||||||||
Net sales | Operating | Ordinary | Net income attributable to | |||||||||
income | income | owners of parent | ||||||||||
Million yen | % | Million yen | % | Million yen | % | Million yen | % | |||||
Year ended March 31, 2021 | 209,121 | 1.1 | 42,530 | 10.0 | 43,893 | 9.7 | 33,470 | 8.7 | ||||
Year ended March 31, 2020 | 206,837 | 0.9 | 38,647 | 4.2 | 40,003 | 2.3 | 30,779 | 4.8 |
(Note) Comprehensive income: | Year ended March 31, 2021 | : 38,663 million yen, 44.7% | ||||||||
Year ended March 31, 2020 | : 26,726 million yen, 2.0% | |||||||||
Basic earnings | Diluted net income | Ratio of | Ratio of ordinary | Ratio of operating | ||||||
net income to | income to | income to | ||||||||
per share | per share | |||||||||
shareholders' equity | total assets | net sales | ||||||||
Yen | Yen | % | % | % | ||||||
Year ended March 31, 2021 | 231.73 | 17.5 | 17.0 | 20.3 | ||||||
Year ended March 31, 2020 | 210.09 | 16.9 | 16.1 | 18.7 | ||||||
(Reference) Equity in earnings of affiliates | : Year ended March 31, 2021 | : 1,123 million yen | ||||||||
: Year ended March 31, 2020 | : 945 million yen | |||||||||
(2) Consolidated Financial Position | ||||||||||
Total assets | Net assets | Equity ratio | Net assets | |||||||
per share | ||||||||||
Million yen | Million yen | % | Yen | |||||||
As of March 31, 2021 | 265,509 | 200,562 | 74.9 | 1,384.13 | ||||||
As of March 31, 2020 | 249,522 | 185,528 | 73.7 | 1,264.23 | ||||||
(Reference) Shareholders' equity: | As of March 31, 2021 : 198,828 million yen | |||||||||
As of March 31, 2020 : 183,917 million yen | ||||||||||
(3) 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 period | ||||||||||
Million yen | Million yen | Million yen | Million yen | |||||||
Year ended March 31, 2021 | 39,939 | (12,854) | (25,629) | 32,380 | ||||||
Year ended March 31, 2020 | 35,550 | (15,624) | (25,186) | 30,639 | ||||||
2. Cash Dividends | ||||||||||
Cash dividends per share | Total | Dividend | Ratio of | |||||||
payout | dividend | |||||||||
First | Second | Third | cash dividends | |||||||
Year-end | Annual | ratio | to net assets | |||||||
quarter | quarter | quarter | (annual) | |||||||
(consolidated) | (consolidated) | |||||||||
Yen | Yen | Yen | Yen | Yen | Million yen | % | % | |||
Year ended March 31, 2020 | 42.00 | 48.00 | 90.00 | 13,144 | 42.8 | 7.2 | ||||
Year ended March 31, 2021 | 46.00 | 58.00 | 104.00 | 14,979 | 44.9 | 7.9 | ||||
Year ending March 31, 2022 | 48.00 | 60.00 | 108.00 | 45.2 | ||||||
(Outlook) | ||||||||||
3. Outlook of Consolidated Financial Results for the Fiscal Year Ending March 31, 2022 (From April 1, 2021 to March 31, 2022)
(% indicates the rate of increase/decrease against the same period of the previous year)
Net sales | Operating | Ordinary | Net income attributable to | Basic earnings | ||||||||
income | income | owners of parent | per share | |||||||||
Million yen | % | Million yen | % | Million yen | % | Million yen | % | Yen | ||||
Six months | 76,500 | (19.0) | 17,700 | (1.6) | 18,000 | (1.0) | 14,000 | 0.7 | 98.03 | |||
ending September 30, 2021 | ||||||||||||
Year ending March 31, 2022 | 172,500 | (17.5) | 43,600 | 2.5 | 44,900 | 2.3 | 34,100 | 1.9 | 239.18 | |||
(Note) The Company determined to apply the "Accounting Standard for Revenue Recognition" (Corporate Accounting Standard No. 29) from FY 2021. As a result, the above earnings outlook is the amount after applying the relevant accounting standards.For supplemental information, please refer to "(Outlook of business result for the next term)" on page 3 to page 4.
4. Notes | |||
(1) Changes in significant consolidated subsidiaries | |||
(Changes in specified subsidiaries involving changes in scope of consolidation) | : None | ||
(2) Changes of accounting policies and accounting estimates, and restatement | |||
1. | Changes of accounting policies due to revisions of accounting standards | : None | |
2. | Changes of accounting policies other than the above | : None | |
3. | Changes in accounting estimates | : None | |
4. | Restatements | : None | |
(3) Number of shares outstanding (common shares) | |||
1. | Number of shares outstanding (including treasury shares) | ||
As of March 31, 2021 | : 145,000,000 shares | ||
As of March 31, 2020 | : 146,000,000 shares | ||
2. | Number of treasury shares | ||
As of March 31, 2021 | : 1,351,888 shares | ||
As of March 31, 2020 | : 522,578 shares | ||
3. | Average number of shares outstanding over the year | ||
As of March 31, 2021 | : 144,438,465 shares | ||
As of March 31, 2020 | : 146,511,438 shares |
(Note) The Company has introduced "Board Benefit Trust (BBT)" from the second quarter of the previous fiscal year.
The shares held by the Trust are included in the number of treasury shares at the end of the period, and they are included in the number of treasury shares deducted in calculating the average number of shares outstanding over the period.
The number of shares held by the Trust (included in treasury shares) at the end of the period was 165,800 shares. In addition, the average number of shares held by the Trust during the period was 165,892 shares.
This is not included in the average number of shares outstanding.
-
Presentation regarding implementation status of audit procedures
This financial release is not subject to audit procedures based on Financial Instruments and Exchange Law in Japan.
Audit procedures of financial statements based on Financial Instruments and Exchange have not been completed at the time of disclosure. - Explanations regarding appropriate use of business outlook and other special notes
The business outlook contained in this report is based on information available at the time of disclosure. Actual operating results may differ materially from the outlook due to various factors.
The prerequisite information of outlook and other items are on page 3 to page 4.
For supplemental information, please refer to our website.
The transcript of financial results briefing will be released on our website as well.
Table of Contents for Attached Materials | ||
1. Analysis of Business Performances and Financial Position ........................................................................................................... | 2 | |
(1) | Analysis of Business Performance ........................................................................................................................................... | 2 |
(2) | Analysis of Financial Position ................................................................................................................................................... | 5 |
(3) | Basic Policy on Distribution of Earnings and Dividends for current and next term ................................................................... | 5 |
2. Management Policy ....................................................................................................................................................................... | 6 | |
(1) | Basic Management Policy ........................................................................................................................................................ | 6 |
(2) | Target Management Indicator .................................................................................................................................................. | 6 |
(3) | Mid-andLong-term Management Strategies and Issues to be addressed ............................................................................... | 6 |
3. Basic Approach to the Selection of Accounting Standards .............................................................................................................. | 7 | |
4. Consolidated Financial Statements ............................................................................................................................................... | 8 | |
(1) | Consolidated Balance Sheets .................................................................................................................................................. | 8 |
(2) | Consolidated Statements of Income / Consolidated Statements of Comprehensive Income .................................................. | 10 |
(3) | Consolidated Statements of Changes in Net Assets ............................................................................................................... | 12 |
(4) | Consolidated Statements of Cash Flows ................................................................................................................................ | 14 |
(5) | Notes to Consolidated Financial Statements .......................................................................................................................... | 15 |
(Going Concern Assumption) ............................................................................................................................................ | 15 | |
(Segment and Related Information) ................................................................................................................................... | 15 | |
(Per Share Information) ..................................................................................................................................................... | 18 | |
(Significant Subsequent Events) ........................................................................................................................................ | 18 |
1
1. Analysis of Business Performance and Financial Position
(1) Analysis of Business Performance
In the current fiscal year(April 1, 2020 to March 31, 2021), the domestic economy recorded significant negative growth due to the spread of the COVID-19. Though exports have been partially picked up towards the latter half of the year, the sever situation continued such as prolonged stagnation of consumer spending. Under these circumstances, sales of Basic Chemicals decreased in the Chemicals Segment. In the Performance Materials Segment, Display Materials and Semiconductor Materials performed well. Sales of the Agricultural Chemicals Segment were unchanged from the previous fiscal year. In the Pharmaceuticals Segment, although sales of "Custom Chemicals" (custom manufacturing and process researching services for pharmaceutical companies) increased, sales of drug discovery decreased.
As a result, operating and ordinary income achieved record highs for the seventh consecutive year and net income attributable to owners of parent for the eighth consecutive year, exceeding the earnings outlook announced in November.
(Million yen, amounts rounded down to the nearest million yen) | |||||||
FY2019 | FY2020 | Year-on-year | FY2020 | Change from | |||
(Actual) | (Actual) | change | (Outlook) | Outlook | |||
Net sales | 206,837 | 209,121 | +2,283 | 209,500 | (379) | ||
Operating income | 38,647 | 42,530 | +3,883 | 40,300 | +2,230 | ||
Ordinary income | 40,003 | 43,893 | +3,889 | 41,100 | +2,793 | ||
Net income attributable | 30,779 | 33,470 | +2,690 | 31,400 | +2,070 | ||
to owners of parent | |||||||
- Explanations by segments are as below.
The Chemicals Segment
In Basic Chemicals, although sales of high purity sulfuric acid (agent used for cleaning semiconductor) increased, sales of melamine (adhesives agent for particle board) declined due to market conditions.In Fine Chemicals, sales of "TEPIC" (powder coating agent for paint, sealants, etc.) were basically unchanged from the previous fiscal year,while sales for environmental chemicals (sterilizing and disinfecting agents for pools and septic tanks, etc.) decreased.
As a result, sales of this segment were 31,908 million yen (a decrease of 2,427 million yen) and operating income was 1,482 million yen (an increase of 186 million yen). Compared to the outlook, net sales were above 0.2 billion yen and operating income was above 0.3 billion yen.
The Performance Materials Segment
In Display Materials, sales of "SUNEVER" (LCD alignment coating) for tablets and notebook PCs performed well. In Semiconductor Materials, sales of anti-reflection coating materials for semiconductors (ARC®*) and multilayer materials (OptiStack®*) increased, reflecting the strong operation of customers. In Inorganic materials, sales of Organo / Monomer sol (various kinds of coating materials, resin additive) decreased, while sales of "SNOWTEX" for polishes for electronic materials were firm.
As a result, sales of this segment were 71,648 million yen (an increase of 6,187 million yen) and operating income was 22,416 million yen (an increase of 5,429 million yen). Compared to the outlook, net sales were above 1.8 billion yen and operating income was above 1.8 billion yen.
* ARC® and OptiStack® are registered trademarks of Brewer Science, Inc.
2
The Agricultural Chemicals Segment
Sales of Fluralaner (active ingredients for veterinary pharmaceuticals) decreased due to the impact of inventories of customers. In the domestic agrochemicals segment, sales of "ALTAIR" (paddy rice herbicide) and "DITHANE" (fungicide) acquired in the third quarter of FY 2020 contributed to sales. On the other hand, sales of "ROUNDUP" (non-selective leaf treatment herbicide) were firm, and shipments of "GRACIA" (insecticide) declined due to moderate insect pests outbreaks. In the overseas agrochemicals segment, sales of "GRACIA", "ALTAIR" and "PERMIT" (herbicide) were robust.
As a result, sales of this segment were 63,848 million yen (a decrease of 189 million yen) and operating income was 18,202 million yen (a decrease of 1,050 million yen). Compared to the outlook, net sales were below 0.8 billion yen and operating income was below 0.5 billion yen.
The Pharmaceuticals Segment
Sales of "LIVALO" (anti-cholesterol drug) declined due to increased sales of generic drugs. In "Custom Chemicals", sales of active pharmaceutical ingredients (generics) increased.
As a result, sales of this segment were 6,652 million yen (a decrease of 310 million yen) and operating income was 357 million yen (a decrease of 575 million yen). Compared to the outlook, net sales were below 0.1 billion yen and operating income was below 0.2 billion yen.
Trading
Sales of this segment were 69,820 million yen (an increase of 1,912 million yen) and operating income was 2,498 million yen (an increase of 385 million yen).Compared to the outlook, net sales were above 0.7 billion yen and operating income was above 0.4 billion yen.
Others
Sales of this segment were 23,763 million yen (an increase of 1,369 million yen) and operating income was 831 million yen (an increase of 146 million yen).
(Note) From FY2020, we have changed the method of totaling operating income by segments. Year-on-year comparisons are calculated using figures compiled using the same method. Under the new method, consolidation adjustments (such as unrealized gains on inventories and non-current assets) previously allocated to individual segments are collectively processed with the adjustments for the entire company. The impact of this change is minor.
(Outlook of business result for the next term) | ||||||
Outlook of Financial Results | ||||||
(Billion yen, amounts rounded to the nearest billion yen) | ||||||
FY2020 | FY2021 | Increase or | Rate of change | |||
Actual | Outlook | decrease | (%) | |||
(A) | (B) | (B-A) | ||||
Net sales | 209.1 | 172.5 | (36.6) | (18)% | ||
Operating income | 42.5 | 43.6 | +1.1 | +3% | ||
Ordinary income | 43.9 | 44.9 | +1.0 | +2% | ||
Net income attributable to owners of | 33.5 | 34.1 | +0.6 | +2% | ||
parent | ||||||
Basic earnings per share | 231.73 yen | 239.18 yen | +7.45 yen | +3% | ||
Average U.S. dollar exchange rate | 106 yen | 107 yen | - | - |
3
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Nissan Chemical Industries Ltd. published this content on 14 May 2021 and is solely responsible for the information contained therein. Distributed by Public, unedited and unaltered, on 14 May 2021 15:06:08 UTC.