JSR CORPORATION Translation
Notice: This document is an excerpt translation of the original Japanese document and is for reference purposes only. In the event of any discrepancy between this translated document and the original Japanese document, the latter shall prevail.
Consolidated Financial Results for the First Six Months of
the Fiscal Year Ending March 31, 2024
(under IFRS)
November 6, 2023 | |
Company name: | JSR Corporation |
Listing: | Tokyo Stock Exchange |
Securities code: | 4185 |
URL: | https://www.jsr.co.jp/ |
Representative: | Eric Johnson, Representative Director, CEO and President |
Inquiries: | Yoshiko Takeda, General Manager of Corporate Communications Department |
TEL: | +81-3-6218-3517 |
Scheduled date to file quarterly securities report: | November 13, 2023 |
Scheduled date to commence dividend payments: | ‐ |
Preparation of supplementary material on quarterly financial results: Yes | |
Holding of financial results presentation meeting: | Yes (for institutional investors and analysts) |
(Millions of yen with fractional amounts rounded, unless otherwise noted)
1. Consolidated financial results for the first six months of the fiscal year ending March 31, 2024(from April 1, 2023 to September 30, 2023)
(1) Consolidated operating results
Revenue | Core Operating profit | Operating profit | Profit | |||||||||||
Fiscal year ended | Millions of | % | Millions of | % | Millions of | % | Millions of yen | % | ||||||
yen | yen | yen | ||||||||||||
September 30, 2023 | 180,780 | (8.4) | (1,036) | - | (2,750) | - | (1,632) | - | ||||||
September 30, 2022 | 197,251 | 17.3 | 16,908 | (26.7) | 17,696 | (22.7) | 14,542 | (22.0) | ||||||
Profit attributable to | Total comprehensive | Basic earnings | Diluted earnings | |||||||||||
owners of parent | income | per share | per share | |||||||||||
Fiscal year ended | Millions of | % | Millions of | % | Yen | Yen | ||||||||
yen | yen | |||||||||||||
September 30, 2023 | (2,143) | - | 18,730 | (52.3) | (10.32) | (10.32) | ||||||||
September 30, 2022 | 14,770 | (15.8) | 39,256 | 75.4 | 70.32 | 70.23 | ||||||||
Reference: Profit before tax | September 30, 2023 | (2,188) millions of yen (－%) | September 30, 2022 22,697 millions of yen ((4.8)%) |
Note: Core operating profit is calculated as operating profit excluding certain gains and expenses attributable to non- recurring factors.
(2) Consolidated financial position
Ratio of equity | Equity attributable | ||||
Equity attributable | attributable to | ||||
Total assets | Total equity | to owners of parent | |||
to owners of parent | owners of parent to | ||||
total assets | per share | ||||
As of | Millions of yen | Millions of yen | Millions of yen | % | Yen |
September 30, 2023 | 761,924 | 392,484 | 366,363 | 48.1 | 1,764.85 |
March 31, 2023 | 715,959 | 380,935 | 355,526 | 49.7 | 1,712.67 |
2. Cash dividends
Annual dividends per share | ||||||
First quarter-end | Second quarter-end | Third quarter-end | Fiscal year-end | Total | ||
Yen | Yen | Yen | Yen | Yen | ||
Fiscal year ended | - | 35.00 | - | 35.00 | 70.00 | |
March 31, 2023 | ||||||
Fiscal year ended | - | 0.00 | ||||
March 31, 2024 | ||||||
Fiscal year ending | ||||||
March 31, 2024 | - | 0.00 | 0.00 | |||
(Forecast) | ||||||
Note: Revisions to the forecast of cash dividends most recently announced: None
Note: As stated in the "Notice Concerning Revision (Non-Dividend) of Dividend Forecast for the Fiscal Year Ending March 2024" announced on June 26, 2023, the Company has revised its dividend forecast for the fiscal year ending March 2024 announced on April 27, 2023, and resolved not to pay dividends of surplus as of the record date of September 30, 2023 (the end of the second quarter) and March 31, 2024 (the end of the fiscal year).
3. Consolidated earnings forecasts for the fiscal year ending March 31, 2024 (from April 1, 2023 to March 31, 2024)
(Percentages indicate year-on-year changes.)
Core Operating | Profit | Basic | |||||||||||||||
Revenue | Operating profit | Profit | attributable to | earnings per | |||||||||||||
profit | |||||||||||||||||
owners of parent | share | ||||||||||||||||
Millions | % | Millions | % | Millions | % | Millions | % | Millions | % | Yen | |||||||
of yen | of yen | of yen | of yen | of yen | |||||||||||||
Fiscal year ending | 413,000 | 1.0 | 18,000 | (47.1) | 16,000 | (45.5) | 10,000 | (39.1) | 8,500 | (46.1) | 40.95 | ||||||
March 31, 2024 | |||||||||||||||||
Reference: Profit before tax | Fiscal year ending March 31, 2023 | 14,000 |
Note: Revisions to the earnings forecasts most recently announced: Yes
Note: Core operating profit is calculated as operating profit excluding certain gains and expenses attributable to non- recurring factors.
- Notes
- Changes in significant subsidiaries during the period (changes in specified subsidiaries resulting in the change in scope of consolidation): None
- Changes in accounting policies and changes in accounting estimates
- Changes in accounting policies required by IFRS: None
- Changes in accounting policies due to other reasons: None
- Changes in accounting estimates: None
- Number of issued shares (ordinary shares)
- Total number of issued shares at the end of the period (including treasury shares)
As of September 30, 2023
As of March 31, 2023
208,400,000 shares
208,400,000 shares
b. Number of treasury shares at the end of the period
As of September 30, 2023
As of March 31, 2023
810,925 shares
814,227 shares
c. Average number of shares during the period
For the six months ended September 30, 2023
For the six months ended September 30, 2022
207,583,029 shares
210,047,814 shares
- Quarterly financial results reports are not required to be subjected to quarterly reviews.
- Proper use of earnings forecasts, and other special matters
Caution regarding forward-looking statements
The forward-looking statements, including earnings forecasts, contained in these materials are based on information currently available to the Company and on certain assumptions deemed to be reasonable by the Company. These statements do not purport that the Company pledges to realize such statements. Actual business and other results may differ substantially due to various factors.
How to obtain supplementary material on financial results
The material on financial results is available on the Company's website on Monday, November 6, 2023.
JSR (4185) Consolidated Business Results for the 2nd quarter, FY ending March 2024
Table for Contents for the Attachment
1. Qualitative Information on Quarterly Results ……………………………………………………..… 2
- Explanation of Business Results …………………………………………………………………. 2
- Explanation of Consolidated Earnings Forecasts and Other Forward-Looking Information…….. 3
2. Condensed Quarterly Consolidated Financial Statements …………………………………………… | 4 |
(1) Condensed Quarterly Consolidated Statement of Financial Position ………………………….… | 4 |
(2) Condensed Quarterly Consolidated Statement of Profit or Loss ………………………………… | 6 |
(3) Condensed Quarterly Consolidated Statement of Comprehensive Income ………………..…….. | 7 |
(4) Condensed Quarterly Consolidated Statement of Changes in Equity ………………….………… | 8 |
(5) Notes on Condensed Quarterly Consolidated Financial Statements …………………………...… | 9 |
(Cautionary Notes regarding Assumptions of Going Concern) …………………………………… | 9 |
(Segment Information) ……………………………………… | 9 |
- 1 -
JSR (4185) Consolidated Business Results for the 2nd quarter, FY ending March 2024
1. Qualitative Information on Quarterly Results
(1) Explanation of Business Results
Overview of the First Six Months of FY ending March 2024 (April 1 to September 30, 2023) Among the JSR Group's main customer industries, the semiconductor market declined due to
continued production adjustments by semiconductor manufacturers, partly due to a decline in demand for smartphones and personal computers and a slowdown in data center investment. In the flat panel display market, production showed a recovery trend as inventories at panel makers are getting optimized, but demand for final products remained weak. Although the biopharmaceutical market, which is a major market in the life sciences business, remained strong, the biotech market, which is a market concerned, has partially slowed down because of less funding in the industry due to the impact of rising interest rates in the United States and so forth. In the automotive market, the semiconductor shortage has been resolved and is on a recovery trend.
Under such an environment, in the Digital Solution Business, the semiconductor materials business expanded sales of products that respond to cutting-edge technologies, and the display materials business expanded sales, focusing on competitive products in the Chinese market, which is expected to continue to grow. In the life sciences business, we continued to focus on the development and manufacturing of biopharmaceuticals (CDMO business) and pharmaceuticals (CRO business) while we focused on expanding sales of strategic products in the plastics business. However, our company's performance was also significantly affected by the generally weak demand industry.
As a result of the above, our consolidated results for the first six months of FY ending March 2024 showed that revenue was 180,780 million yen (down 8.4% year on year), and core operating profit was a loss of 1,036 million yen from a profit of 16,908 million yen in the same period of the previous year.
(Unit: Millions of yen)
First Six Months of FY ended | First Six Months of FY | |||||||
Segment | March 2023 | ending March 2024 | Change | |||||
(Apr. 1 to Sep. 30, 2022) | (Apr. 1 to Sep. 30, 2023) | |||||||
Amount | Component | Amount | Component | Amount | Percentage | |||
ratio | ratio | |||||||
Revenue | ||||||||
Digital Solutions | 90,599 | 46.0% | 79,558 | 43.9% | (11,042) | (12.2%) | ||
Life Sciences | 51,452 | 26.1% | 48,557 | 26.9% | (2,895) | (5.6%) | ||
Plastics | 45,644 | 23.1% | 45,859 | 25.4% | 215 | 0.5% | ||
Other | 9,556 | 4.8% | 6,806 | 3.8% | (2,750) | (28.8%) | ||
Adjustment | － | －% | － | －% | － | －% | ||
Total | 197,251 | 100.0% | 180,780 | 100.0% | (16,471) | (8.4%) | ||
Revenue in Japan | 63,599 | 32.2% | 64,750 | 35.8% | 1,151 | 1.8% | ||
Overseas revenue | 133,652 | 67.8% | 116,030 | 64.2% | (17,622) | (13.2%) | ||
(Unit: Millions of yen) | ||||||||
First Six Months of FY ended | First Six Months of FY | |||||||
March 2023 | ending March 2024 | Change | ||||||
Segment | ||||||||
(Apr. 1 to Sep. 30, 2022) | (Apr. 1 to Sep. 30, 2023) | |||||||
Amount | Percentage of | Amount | Percentage of | Amount | Percentage | |||
revenue | revenue | |||||||
Core Operating profit | 16,908 | 8.6% | (1,036) | (0.6%) | (17,945) | －% | ||
Profit (loss) attributable | to | 14,770 | 7.5% | (2,143) | (1.2%) | (16,913) | －% | |
owners of parent | ||||||||
- 2 -
JSR (4185) Consolidated Business Results for the 2nd quarter, FY ending March 2024
In the Digital Solutions Business, revenue was lower than the same period of the previous year, mainly due to lower demand due to production adjustments at semiconductor manufacturers, which are our main customers.
Core operating profit was lower than the same period of the previous year due to lower revenue.
As a result of the above, revenue of the Digital Solutions business segment for the first six months of the current fiscal year decreased by 12.2% year on year to 79,558 million yen, and core operating profit decreased by 53.8% year on year to 8,539 million yen.
In the Life Sciences Business, sales in the CDMO Business increased due to the starting up of a new plant at KBI Biopharma, Inc., in our group. However, sales in the diagnostic reagents business were lower than the same period of the previous year due to a decrease in sales of COVID-19 antigen test kits at the Medical and Biological Laboratories Co., Ltd. (MBL) and a slowdown in demand for biotech industries s in the CRO Business.
In the CDMO Business, core operating profit was lower than the same period of the previous year due to the implementation of large-scale repairs at one e of KBI Biopharma, Inc.' s main plants, the recording of one-time costs related to inventory, and a decrease in profit due to a decrease in sales in the CRO Business.
As a result of the above, revenue in the Life Sciences Business decreased by 5.6% year-on-year to 48,557 million yen, and core operating profit decreased from a profit of 707 million yen to a loss of 8,107 million yen.
In the Plastic business, sales volume decreased due to weak demand for industrial materials, although the automobile market, which is the major customer industry, showed some recovery. On the other hand, revenue slightly increased from the same period last year due to the price adjustment.
Core operating profit was higher than the same period of the previous year due to an improvement in trading spreads due to the penetration of price increases associated with rising raw material prices.
As a result of the above, revenue in the Synthetic Plastics Business segment increased 0.5% year- on-year to 45,859 million yen, and core operating profit was 349 million yen, compared with a loss of 115 million yen in the same period of the previous year.
(2) Explanation of Consolidated Earnings Forecasts and Other Forward-Looking Information
The consolidated earnings forecasts for the fiscal year ending March 2024 have been revised from the full-year consolidated earnings forecasts announced in the "Consolidated Financial Results for the Fiscal Year Ending March 2023" released on April 27, 2023, considering the market environment and trends in business performance. For details, please refer to the "Notice Concerning Revision of Consolidated Earnings Forecasts for the Fiscal Year Ending March 2024" released on November 6, 2023.
As described in the "Notice Concerning the Scheduled Commencement of Tender Offer by JICC- 02, Ltd. to JSR Inc. (Securities Code: 4185)" released on June 26, 2023 and the "(Correction) Partial Correction of "Notice Concerning Scheduled Commencement of Tender Offer by JICC-02, Ltd., to JSR Corporation. (Securities Code: 4185)" released on June 28, 2023, there is a possibility that shares of our company will be delisted due to JICC-02, Ltd.' s tender offer for common shares, share acquisition rights and American depositary shares of our company and a series of subsequent procedures.
- 3 -
JSR (4185) Consolidated Business Results for the 2nd quarter, FY ending March 2024
Condensed Quarterly Consolidated Financial Statements
(1) Condensed Quarterly Consolidated Statement of Financial Position
(Millions of yen) | ||||
As of March 31, 2023 | As of September 30, 2023 | |||
Assets | ||||
Current assets | ||||
Cash and cash equivalents | 72,640 | 82,181 | ||
Trade and other receivables | 78,825 | 90,537 | ||
Inventories | 118,437 | 122,482 | ||
Other financial assets | 2,657 | 1,878 | ||
Other current assets | 26,716 | 14,401 | ||
Total current assets | 299,275 | 311,478 | ||
Non-current assets | ||||
Property, plant and equipment | 169,621 | 176,932 | ||
Goodwill | 147,874 | 164,047 | ||
Other intangible assets | 34,202 | 37,448 | ||
Investments accounted for using equity method | 2,479 | 2,757 | ||
Retirement benefit asset | 5,674 | 5,691 | ||
Other financial assets | 33,157 | 36,786 | ||
Other non-current assets | 3,438 | 3,886 | ||
Deferred tax assets | 20,240 | 22,900 | ||
Total non-current assets | 416,684 | 450,446 | ||
Total assets | 715,959 | 761,924 | ||
- 4 -
JSR (4185) Consolidated Business Results for the 2nd quarter, FY ending March 2024
(Millions of yen) | ||||
As of March 31, 2023 | As of September 30, 2023 | |||
Liabilities and equity | ||||
Liabilities | ||||
Current liabilities | ||||
Trade and other payables | 79,627 | 78,152 | ||
Contract liabilities | 22,407 | 20,559 | ||
Bonds and borrowings | 62,510 | 98,440 | ||
Income taxes payable | 3,046 | 2,022 | ||
Provisions | 1,474 | 1,383 | ||
Other financial liabilities | 3,243 | 4,318 | ||
Other current liabilities | 9,454 | 7,352 | ||
Total current liabilities | 181,761 | 212,226 | ||
Non-current liabilities | ||||
Contract liabilities | 5,062 | 2,392 | ||
Bonds and borrowings | 95,683 | 94,063 | ||
Retirement benefit liability | 10,485 | 10,102 | ||
Provisions | 7,423 | 7,423 | ||
Other financial liabilities | 23,514 | 33,570 | ||
Other non-current liabilities | 4,373 | 2,538 | ||
Deferred tax liabilities | 6,724 | 7,127 | ||
Total non-current liabilities | 153,263 | 157,215 | ||
Total liabilities | 335,024 | 369,441 | ||
Equity | ||||
Equity attributable to owners of parent | ||||
Share capital | 23,370 | 23,370 | ||
Capital surplus | 6,637 | 6,708 | ||
Retained earnings | 288,919 | 280,096 | ||
Treasury shares | (2,109) | (2,080) | ||
Other components of equity | 38,709 | 58,269 | ||
Total equity attributable to owners of parent | 355,526 | 366,363 | ||
Non-controlling interests | 25,409 | 26,120 | ||
Total equity | 380,935 | 392,484 | ||
Total liabilities and equity | 715,959 | 761,924 | ||
- 5 -
JSR (4185) Consolidated Business Results for the 2nd quarter, FY ending March 2024
(2) Condensed Quarterly Consolidated Statement of Profit or Loss
(Millions of yen) | |||
Six months ended | Six months ended | ||
September 30, 2022 | September 30, 2023 | ||
Revenue | 197,251 | 180,780 | |
Cost of sales | (128,086) | (123,206) | |
Gross profit | 69,166 | 57,574 | |
Selling, general and administrative expenses | (52,638) | (58,902) | |
Other operating income | 2,335 | 1,050 | |
Other operating expenses | (1,212) | (2,549) | |
Share of loss of investments accounted for using equity | 45 | 78 | |
method | |||
Operating profit (loss) | 17,696 | (2,750) | |
Finance income | 6,129 | 3,087 | |
Finance costs | (1,128) | (2,524) | |
Profit (loss) before tax | 22,697 | (2,188) | |
Income tax expense | (8,154) | 556 | |
Profit (loss) | 14,542 | (1,632) | |
Profit (loss) attributable to | |||
Owners of parent | 14,770 | (2,143) | |
Non-controlling interests | (228) | 511 | |
Total | 14,542 | (1,632) | |
Earnings (loss) per share | ||
Basic earnings (loss) per share (Yen) | 70.32 | (10.32) |
Diluted earnings (loss) per share (Yen) | 70.23 | (10.32) |
- 6 -
JSR (4185) Consolidated Business Results for the 2nd quarter, FY ending March 2024
(3) Condensed Quarterly Consolidated Statement of Comprehensive Income
(Millions of yen) | |||
Six months ended | Six months ended | ||
September 30, 2022 | September 30, 2023 | ||
Profit (loss) | 14,542 | (1,632) | |
Other comprehensive income | |||
Items that will not be reclassified to profit or loss | |||
Net change in fair value of equity instruments | |||
designated as measured at fair value through other | 527 | 1,594 | |
comprehensive income | |||
Remeasurements of defined benefit liabilities (assets) | 14 | 410 | |
Items that may be reclassified to profit or loss | |||
Effective portion of cash flow hedges
Exchange differences on translation of foreign operations
Share of other comprehensive income of investments accounted for using equity method
Total other comprehensive income, net of tax Total comprehensive income
Comprehensive income attributable to
Owners of parent
Non-controlling interests
Total
5 | － | |
23,856 | 18,136 | |
311 | 222 | |
24,714 | 20,362 | |
39,256 | 18,730 | |
38,991 | 17,849 | |
265 | 881 | |
39,256 | 18,730 | |
- 7 -
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JSR Corporation published this content on 06 November 2023 and is solely responsible for the information contained therein. Distributed by Public, unedited and unaltered, on 06 November 2023 06:14:08 UTC.
