Translation from the Original Japanese Version.
Consolidated Financial Results for the Three Months Ended June 30, 2022 (Japanese GAAP)
July 28, 2022
Company name: Toho Titanium Co., Ltd.
Code number: 5727
Stock Exchange Listings: Tokyo
URL: https://www.toho-titanium.co.jp/
Representative: Yasuji Yamao, Representative Director and President
Contact person: Hiromu Tomeba, General Manager, Planning, Corporate Management Division Telephone: +81-45-394-5521
Scheduled date of filing of Securities Report: August 9, 2022
Scheduled date of commencement of dividend payments: -
Supplemental materials for the financial results: None.
Quarterly financial results presentation: None.
(Figures of less than ¥1 million are rounded off.) | |||||||||||||||||||||||
1. Consolidated Results for the Three Months Ended June 30, 2022 (From April 1, 2022 to June 30, 2022) | |||||||||||||||||||||||
(1) Consolidated Operating Results | (Percentage figures are changes from the same period in the previous fiscal year.) | ||||||||||||||||||||||
Net sales | Operating income | Ordinary income | Profit attributable to | ||||||||||||||||||||
owners of parent | |||||||||||||||||||||||
Millions of yen | % | Millions of yen | % | Millions of yen | % | Millions of yen | % | ||||||||||||||||
Three months Ended | 20,079 | 70.0 | 2,622 | 110.2 | 2,956 | 138.0 | 2,019 | 157.4 | |||||||||||||||
June 30, 2022 | |||||||||||||||||||||||
Three months Ended | 11,810 | 48.1 | 1,247 | 268.4 | 1.242 | - | 784 | - | |||||||||||||||
June 30, 2021 | |||||||||||||||||||||||
(Note) Comprehensive income Three months ended June 30, 2022: | ¥ | 2,162 million [(178.8%)] | |||||||||||||||||||||
Three months ended June 30, 2021: | ¥ | 775 million [(-%)] | |||||||||||||||||||||
Net income | Diluted net income | ||||||||||||||||||||||
per share | per share | ||||||||||||||||||||||
Yen | Yen | ||||||||||||||||||||||
Three months Ended | 28.38 | ― | |||||||||||||||||||||
June 30, 2022 | |||||||||||||||||||||||
Three months Ended | 11.02 | ― | |||||||||||||||||||||
June 30, 2021 | |||||||||||||||||||||||
(2) Consolidated Financial Position | |||||||||||||||||||||||
Total assets | Net assets | Shareholders' equity ratio | |||||||||||||||||||||
Millions of yen | Millions of yen | % | |||||||||||||||||||||
June 30, 2022 | 98,700 | 48,687 | 49.2 | ||||||||||||||||||||
March 31, 2022 | 98,095 | 47,166 | 47.9 | ||||||||||||||||||||
(For reference) Shareholders' equity | June 30, 2022: ¥48,553 million | March 31, 2022: ¥47,031 million | |||||||||||||||||||||
2. Dividends | |||||||||||||||||||||||
Annual cash dividend per share | |||||||||||||||||||||||
End of 1Q | End of 2Q | End of 3Q | Year-End | Total | |||||||||||||||||||
Yen | Yen | Yen | Yen | Yen | |||||||||||||||||||
FY2021 | ― | 6.00 | ― | 9.00 | 15.00 | ||||||||||||||||||
FY2022 | ― | ||||||||||||||||||||||
FY2022 (Forecast) | 11.00 | ― | 11.00 | 22.00 |
(Note) Revisions to the previously announced forecast of cash dividends: None.
3. Consolidated Financial Forecasts for FY2022 (From April 1, 2022 to March 31, 2023)
(Percentage figures are changes from the same period in the previous fiscal year.)
Net Sales | Operating income | Ordinary income | Profit attributable to | Net income | ||||||
owners of parent | per share | |||||||||
Millions of yen | % | Millions of yen | % | Millions of yen | % | Millions of yen | % | Yen | ||
FY 2022 | 41,600 | 58.3 | 4,800 | 83.0 | 5,000 | 93.6 | 3,400 | 81.6 | 47.77 | |
2nd half | ||||||||||
(Cumulative) | ||||||||||
FY2022 | 81,000 | 45.9 | 8,200 | 56.8 | 8,000 | 54.5 | 5,400 | 46.1 | 75.87 | |
(Note) Revisions to the previously announced forecasts: Yes.
For details, please refer to the release"Notice of Revision to Consolidated Earnings Forecasts for the Six Months Ending September 30, 2022"dated July 28, 2022.
Notes
- Changes in the scope of material subsidiaries during the period (i.e. changes in specified subsidiaries involving a change in the scope of consolidation): None.
- Adoption of accounting treatment specific to the preparation of quarterly consolidated financial statements: None.
- Changes in accounting policies or in accounting estimates, and restatement
- Changes in accounting policies owing to revisions in accounting rules and standards: Yes.
- Changes in accounting policies other than (i) above: None.
- Changes in accounting estimates: None.
- Restatement: None.
- Number of shares issued (common stock)
- Number of issued shares at the end of the period (including treasury stock)
June 30, 2022: | 71,270,910 shares |
March 31, 2022: | 71,270,910 shares |
(ii) Number of shares of treasury stock at the end of the period
June 30, 2022: | 98,409 shares |
March 31, 2022: | 98,309 shares |
(iii) Average number of issued and outstanding shares during the period
June 30, 2022: | 71,172,576 shares |
June 30, 2021: | 71,172,710 shares |
This document is outside the scope of audit procedures.
Explanation concerning appropriate use of performance forecasts and other special notes
(Notes concerning forward-looking statements)
・Business performance forecasts and other forward-looking statements contained in this document are based on the information available to the Company at the time of its announcement and on certain assumptions that the Company considers reasonable. The Company makes no representations that they are achievable. Actual results may differ materially from the forecasts depending on a variety of factors
Attached Materials: Table of Contents | ||
1. | Qualitative Information on the Quarterly Results ............................................................................................. | 2 |
(1) | Explanations on Operating Results ......................................................................................................................... | 2 |
(2) | Explanations on Financial Position ......................................................................................................................... | 4 |
(3) | Explanations on Consolidated Financial Forecasts and Other Future Forecast Information .................................. | 4 |
2. | Consolidated Financial Statements...................................................................................................................... | 5 |
(1) | Consolidated Balance Sheets................................................................................................................................... | 5 |
(2) | Consolidated Statements of Operations and Comprehensive Income (Loss).......................................................... | 7 |
Consolidated Statements of Operations | ||
Three Months Ended June 30, 2022 .................................................................................................................. | 7 | |
Consolidated Statements of Comprehensive Income (Loss) | ||
Three Month Ended June 30, 2022 ................................................................................................................... | 8 | |
(3) | Explanatory Notes to Consolidated Financial Statements....................................................................................... | 9 |
Notes on the Assumption of a Going Concern...................................................................................................... | 9 | |
Notes on Significant Changes in Shareholders' Equity......................................................................................... | 9 | |
Changes in accounting policies............................................................................................................................. | 9 | |
Segment Information etc. .................................................................................................................................... | 10 |
1
1. Qualitative Information on the Quarterly Results
- Explanations on Operating Results
During the three months ended June 30, 2022 (from April 1, 2022 to June 30, 2022), the Japanese economy showed signs of a gradual recovery as restrictions on action due to the COVID-19 eased.
The global economy continues to experience high raw material and energy prices due to Russia's invasion of Ukraine, supply chain disruptions, and policy rate hikes by national central banks to curb inflation, all of which have raised concerns about a stagnant economic recovery.
Under such circumstances, consolidated net sales for the period were 20,079 million yen (a 70.0% increase as compared to the corresponding period of the previous year), the operating income was 2,622 million yen (a 110.2% increase). The ordinary income was 2,956 million yen (a 138.0% increase) and the net income attributable to owners of the parent was 2,019 million yen (compared to a 157.4% increase in the same period of the previous fiscal year).
Results by business segment were as follows.
From the three months ended June 30, 2022 (from April 1, 2022 to June 30, 2022), in order to better evaluate and manage the performance of each reportable segment, the Company has changed its method of allocating company-wide general and administrative expenses. Excluding general and administrative expenses related to research and development mainly for the creation and promotion of new businesses, to each segment based on reasonable standards.
Segment information for the first quarter of the previous fiscal year is described based on the calculation method after the change.
Titanium Metal Business
Sales of titanium metal in the first quarter of the current fiscal year, demand for both aircraft and general industrial applications remained steady.
Demand for aircraft applications is increasing on the back of a recovery trend in passenger demand, along with demand for substitutes for Russian-made expanded products. Demand for high-purity titanium for general industrial and semiconductor applications also remains strong. In addition to domestic shipments including inventory, we also supply titanium from our joint venture in Saudi Arabia.
In terms of earnings, costs continue to rise due to the high cost of raw ore, sub-materials, and transportation.
However, in the first quarter of the current fiscal year, due to the time lag in reflecting rising costs in the cost of sales, the depreciation of the yen against the U.S. dollar, price revisions by some customers, and increased shipment volume, net sales of the Titanium Metal Business for the period reported 13,978 million yen, (an increase 140.3%, as compared to the corresponding period of the previous year) and the operating income of the business for the period was 1,652 million yen, (a loss of 438 million yen).
Catalysts Business
Sales of catalysts for polyolefin in the first quarter of the current fiscal year were lower than the same period of the previous fiscal year due to the recording of sales for the first quarter of the previous fiscal year that had been delayed from the previous fiscal year, despite strong demand for polyolefin catalysts themselves.
2
Under such circumstances, net sales of the Catalysts Business for the period were 1,850 million yen (a decrease 8.4%, as compared to the corresponding period of the previous year), and the operating income of the business for the period was 533 million yen, a 26.0% decrease.
Chemicals Business
Sales of chemicals in the first quarter of the current fiscal year were lower than in the same period of the previous year due to a decline in demand for multilayer ceramic capacitors (MLCC), which is the main application for ultra-fine nickel powder, and economic stagnation caused by the U.S. interest rate hike and the lockdown in China.
Under such circumstances, net sales of the Chemical Business for the period were 4,295 million yen (an increase 6.8%, as compared to the corresponding period of the previous year), and the operating income of the business for the period was 817 million yen, a 31.3% decrease.
Net Sales by Segment
(Millions of yen) | ||||
Business Segment | Three month | Three month | Change | |
ended June 30, 2022 | ended June 30, 2021 | |||
Titanium Metal | 13,978 | 5,816 | 140.3% | |
Catalysts | 1,805 | 1,971 | (8.4%) | |
Chemicals | 4,295 | 4,022 | 6.8% | |
Consolidated Total | 20,079 | 11,810 | 70.0% | |
Operating Income by Segment | ||||
(Millions of yen) | ||||
Business Segment | Three month | Three month | Change | |
ended June 30, 2022 | ended June 30, 2021 | |||
Titanium Metal | 1,652 | (438) | -% | |
Catalysts | 533 | 720 | (26.0%) | |
Chemicals | 817 | 1,189 | (31.3%) | |
Common Costs and Expenses Not | (380) | (223) | - | |
Allocated to the Individual Segments | ||||
Total | 2,622 | 1,247 | 110.2% | |
3
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Toho Titanium Co. Ltd. published this content on 28 July 2022 and is solely responsible for the information contained therein. Distributed by Public, unedited and unaltered, on 28 July 2022 06:27:07 UTC.