NICHIAS CORPORATION Consolidated Financial Results for the Fiscal Year Ended March 31, 2021
May 10, 2021 | ||
Company Name: | NICHIAS Corporation | |
Stock Exchange Listing: | Tokyo Stock Exchange (Code number 5393) | |
URL: | https://www.nichias.co.jp/nichias-E/ | |
Representative: | Toshiyuki Takei, President and Chief Executive Officer | |
Inquiries: | Kiminori Nakata, Representative Director and Senior Managing Executive Officer | |
Phone: | +81-3-4413-1111 | |
Scheduled date of Ordinary General Meeting of Shareholders: June 29, 2021 | ||
Scheduled date of filing the consolidated financial statements: June 29, 2021 | ||
Supplementary materials for financial results: | Available | |
Organization of financial results briefing: | Yes (for institutional investors and analysts) | |
Scheduled date of commencement of dividend payment: | June 30, 2021 |
(Fractional amounts of less than ¥1 million are discarded.)
1. Consolidated financial results for Fiscal Year 2020 (April 1, 2020 to March 31, 2021)
(1) Consolidated Operating Results
(Percentage figures represent changes from previous fiscal year)
Net sales | Operating income | Ordinary income | Profit attributable to | ||||||||||||||||||||||
owners of the parent | |||||||||||||||||||||||||
Millions of yen | % | Millions of yen | % | Millions of yen | % | Millions of yen | % | ||||||||||||||||||
FY2020 | 196,372 | (6.0) | 19,616 | (4.0) | 21,279 | (1.6) | 10,715 | (27.0) | |||||||||||||||||
FY2019 | 208,876 | (3.1) | 20,427 | (9.7) | 21,633 | (6.6) | 14,674 | (7.5) | |||||||||||||||||
Note: Comprehensive income FY2020 | ¥14,269 million---(0.8)%; FY2019 | ¥14,382 million---4.1% | |||||||||||||||||||||||
Basic earnings | Diluted earnings | Rate of return on | Ordinary income | Operating Margin | |||||||||||||||||||||
per share | per share | equity | on total assets | ||||||||||||||||||||||
Yen | Yen | % | % | % | |||||||||||||||||||||
FY2020 | 161.53 | － | 8.2 | 10.0 | 10.0 | ||||||||||||||||||||
FY2019 | 221.21 | － | 12.1 | 10.4 | 9.8 | ||||||||||||||||||||
(Reference) Share | of profit or loss on | investments for using the equity method: | FY2020 ¥46 | million | |||||||||||||||||||||
FY2019 ¥69 million | |||||||||||||||||||||||||
(2) Consolidated Financial Position | |||||||||||||||||||||||||
Total assets | Net assets | Equity ratio | Net assets per share | ||||||||||||||||||||||
Millions of yen | Millions of yen | % | Yen | ||||||||||||||||||||||
As of March 31, 2021 | 219,602 | 136,450 | 61.7 | 2,041.63 | |||||||||||||||||||||
As of March 31, 2020 | 208,076 | 127,233 | 60.7 | 1,903.93 | |||||||||||||||||||||
(Reference) Shareholders' equity: FY2020 ¥135,429 million; FY2019 ¥126,297 million | |||||||||||||||||||||||||
(3) Consolidated Cash flows | |||||||||||||||||||||||||
Net cash from | Net cash from | Net cash from | Cash and cash | ||||||||||||||||||||||
(used in) operating | (used in) investing | (used in) financing | equivalents at the | ||||||||||||||||||||||
activities | activities | activities | end of fiscal year | ||||||||||||||||||||||
Millions of yen | Millions of yen | Millions of yen | Millions of yen | ||||||||||||||||||||||
FY2020 | 18,683 | (6,799) | (5,469) | 39,589 | |||||||||||||||||||||
FY2019 | 20,094 | (9,036) | (5,667) | 33,108 | |||||||||||||||||||||
2. Dividends
Annual Dividends | Total | Dividend | Ratio of | |||||
pay-out | dividends to | |||||||
End of 1st | End of first | End of 3rd | Year-end | Total | ||||
quarter | half | quarter | Dividends | ratio | net assets | |||
Yen | Yen | Yen | Yen | Yen | Millions of | % | % | |
－ | yen | |||||||
FY2019 | 38.00 | － | 38.00 | 76.00 | 5,041 | 34.4 | 4.1 | |
FY2020 | － | 38.00 | － | 40.00 | 78.00 | 5,174 | 48.3 | 4.0 |
FY2021 (Forecast) | － | 40.00 | － | 40.00 | 80.00 | 37.9 | ||
3. Forecast of consolidated financial results for Fiscal Year 2021 (April 1, 2021 to March 31, 2022)
(Percentage figures represent changes from previous fiscal year)
Net sales | Operating income | Ordinary income | Profit attributable to | Basic earnings | |||||
owners of the parent | per share | ||||||||
Millions of yen | % | Millions of yen | % | Millions of yen | % | Millions of yen | % | Yen | |
First half | 97,000 | － | 9,300 | － | 9,300 | － | 6,300 | － | 94.97 |
Full year | 205,000 | － | 20,500 | － | 20,500 | － | 14,000 | － | 211.05 |
- Since the Accounting Standard for Revenue Recognition (Accounting Standards Board of Japan Statement No. 29), etc., was applied from the start of FY2021, the above consolidated earnings forecasts are the amounts after applying these accounting standards, etc., and the rate of change from the previous fiscal year and the same quarter of the previous fiscal year is not stated.
*Notes
- Changes in significant subsidiaries during the period under review (Changes in specific subsidiaries accompanying changes in the scope of consolidation): None
- Changes in accounting policies, changes in accounting estimates, and restatements
1) | Changes in accounting policies due to revision of accounting standards: | None |
2) | Changes other than those in 1) above: | None |
3) | Changes in accounting estimates: | None |
4) | Restatements: | None |
(3) Number of shares outstanding (ordinary shares)
- Number of shares outstanding at the end of the year (including treasury stock)
FY2020 | (As of March 31, 2021) | 67,811,917 shares |
FY2019 | (As of March 31, 2020) | 67,811,917 shares |
- Number of shares of treasury stock at the end of the year
FY2020 | (As of March 31, 2021) | 1,477,947 shares |
FY2019 | (As of March 31, 2020) | 1,476,840 shares |
- Average number of shares outstanding during the year
FY2020 | (As of March 31, 2021) | 66,334,673 shares |
FY2019 | (As of March 31, 2020) | 66,335,888 shares |
*This summary of financial statements is not subject to audit by a certified public accountant or auditor. *Information concerning proper use of financial forecasts and other special notes
(Information concerning forward-looking statements)
Forward-looking statements concerning financial forecasts contained in these materials are based on information available to the Company when the forecasts were made and certain assumptions judged to be reasonable. However, the Company makes no guarantee that these forecasts will be achieved. Actual results may differ significantly from the forecasts due to a variety of factors.
Please refer to "1. Overview of operating results (4) Earnings forecasts" on page 3 for information concerning financial forecasts such as the assumptions used for financial forecasts and factors that could cause these assumptions to change.
Disclaimer: This is a Japanese-English translation of the summary of financial statements of the Company produced for your convenience. Since no auditor audited this report, officially only the Japanese version is assumed to be the summary of financial statements of the Company. This summary does not constitute any guarantee and the Company will not compensate any losses and/or damage stemming from actions taken based on these statements. In the case that there is any discrepancy between the Japanese and English versions, the Japanese version is assumed to be correct.
○ Attachment index
1. | Overview of operating results............................................................................................................................................................................... | 2 | |
(1) | Overview of operating results in FY2020 (April 1, 2020 to March 31, 2021) .............................................................................. | 2 | |
(2) | Overview of financial position........................................................................................................................................................................ | 2 | |
(3) | Cash flows............................................................................................................................................................................................................... | 2 | |
(4) | Earnings forecasts................................................................................................................................................................................................ | 3 | |
(5) | Policies for distribution of profit and dividends for FY2020 and FY2021..................................................................................... | 3 | |
(6) | Risk factors ............................................................................................................................................................................................................. | 3 | |
2. | Management policies ............................................................................................................................................................................................... | 5 | |
(1) | The Group's basic management policy....................................................................................................................................................... | 5 | |
(2) | Target management indicators...................................................................................................................................................................... | 5 | |
(3) | Company's medium- and long-term management strategies ......................................................................................................... | 5 | |
3. | Basic stance towards the selection of accounting standards .................................................................................................................. | 6 | |
4. | Consolidated financial statements and important notes .......................................................................................................................... | 7 | |
(1) | Consolidated balance sheets .......................................................................................................................................................................... | 7 | |
(2) | Consolidated statements of income and consolidated statements of comprehensive income ........................................ | 9 | |
(3) | Consolidated statements of changes in shareholders' equity....................................................................................................... | 11 | |
(4) | Consolidated statements of cash flows................................................................................................................................................... | 13 | |
(5) | Notes to Consolidated Financial Statements ........................................................................................................................................ | 15 |
(Notes regarding going concern assumption) ....................................................................................................................................... | 15 | |
(Accounting Standards not adopted)......................................................................................................................................................... | 15 | |
(Changes in presentation) ............................................................................................................................................................................... | 15 | |
(Segment information) ..................................................................................................................................................................................... | 16 | |
(Per share information)..................................................................................................................................................................................... | 20 | |
(Important subsequent events) .................................................................................................................................................................... | 20 | |
5. | Others........................................................................................................................................................................................................................... | 21 |
Status of production, orders, and sales.......................................................................................................................................................... | 21 | |
6. | Supplementary Materials..................................................................................................................................................................................... | 22 |
1
1. Overview of operating results
(1) Overview of operating results in FY2020 (April 1, 2020 to March 31, 2021)
During FY2020, the economy remained in severe conditions due to the impact of the global spread of the COVID-19 pandemic. In Japan, the manufacturing industry saw a recovery in production and exports, and while corporate sentiment remains subdued, there are signs of improvement. Overseas, although economic conditions remain severe in emerging countries, there are signs of improvement in the US and China is gradually recovering.
In these conditions, the Group's net sales fell by 6.0% year on year to ¥196,372 million, due to production adjustments resulting from a decline in global demand for automobiles, mainly in the first half of the fiscal year. In terms of profits, operating income declined by 4.0% year on year to ¥19,616 million and ordinary income declined by 1.6% year on year to ¥21,279 million. Profit attributable to owners of the parent declined by 27.0% to ¥10,715 million as an impairment loss of ¥3,515 million on idle assets was posted as an extraordinary loss due to
the reorganization of noncurrent assets and facilities at overseas rock wool insulating materials manufacturing bases.
Net sales by segment for FY2020 are as follows:
Sales in the Energy and Industrial Plants Divisionfell by 3.5% year on year to ¥63,530 million because while demand was solid particularly from petroleum refining and petrochemical companies as well as electricity companies, large-scale shipbuilding construction projects and overseas construction projects were completed in the previous fiscal year.
Sales in the Industrial Products Divisiondecreased by 4.9% year on year to ¥42,925 million, despite a pick up in demand for inorganic thermal insulation materials for electronic parts, which had been hurt by the COVID-19 pandemic.
Sales in the Advanced Products Divisionrose by 14.9% year on year to ¥24,855 million due to strong demand for semiconductors.
Sales in the Autoparts Divisionfell by 12.6% year on year to ¥38,245 million, due to the impact of production adjustments in the automotive industry as demand for automobiles declined worldwide with the spread of COVID-19 in the first half of the fiscal year, although the demand in Japan and overseas began to recover in the third quarter of the fiscal year.
Sales in the Building Materials Divisionfell by 17.5% year on year to ¥26,814 million as the pandemic resulted in the delay and postponement of construction projects as well as a decline in demand.
(2) Overview of financial position
Total assets at the end of FY2020 were ¥219,602 million, up ¥11,525 million compared to the end of the previous fiscal year. This was largely because property, plant and equipment fell by ¥2,874 million, while cash and deposits rose by ¥5,479 million, investment securities increased by ¥4,774 million, and electronically recorded monetary claims rose by ¥1,877 million.
Liabilities at the end of FY2020 were ¥83,151 million, up ¥2,308 million compared to the end of the previous fiscal year. This was largely a result of a ¥1,698 million increase in deferred tax liabilities and a ¥660 million increase in notes and accounts payable-trade.
Net assets at the end of FY2020 were ¥136,450 million, up ¥9,217 million compared to the end of the previous fiscal year. This was largely a result of increases in retained earnings of ¥5,673 million and in valuation difference on available-for-sale securities of ¥3,317 million.
(3) Cash flows
Cash and cash equivalents at the end of FY2020 (hereinafter, "cash") increased by ¥6,481 million year on year to ¥39,589 million. Cash flows and factors affecting cash flows are as follows:
(Net cash provided by [used in] operating activities)
Net cash provided by operating activities was ¥18,683 million (compared to receipts of ¥20,094 million in FY2019).
This was because cash decreased due to ¥6,076 million in income taxes paid and a ¥3,156 million increase in trade receivables, while cash increased due to ¥17,532 million in income before income taxes and ¥6,536 million in depreciation and amortization.
(Net cash provided by [used in] investing activities)
2
Net cash used in investing activities was ¥6,799 million (compared to expenditures of ¥9,036 million in FY2019).
This was due to a decrease in cash due to ¥8,068 million in expenditures for the acquisition of property, plant and equipment.
(Net cash provided by [used in] financing activities)
Net cash used in financing activities was ¥5,469 million (compared to expenditures of ¥5,667 million in FY2019).
This was because of a decrease in cash due to ¥5,040 million in cash dividends paid.
(4) Earnings forecasts
In FY2021, we expect solid performance in the Industrial Products, Advanced Products, and Autoparts segments. Based on these conditions, our earnings forecasts for FY2021 are as follows:
Net sales of ¥205,000 million, operating income of ¥20,500 million, ordinary income of ¥20,500 million, and profit attributable to owners of the parent company of ¥14,000 million.
The Company prepared these earnings forecasts based on information available on the day that these materials were released, and actual results could differ from forecasts due to a variety of factors.
(5) Policies for distribution of profit and dividends for FY2020 and FY2021
In addition to strengthening the management base in order to enhance earnings power, the basic policy of the NICHIAS Group with respect to the distribution of profits is to strive for the long-term and appropriate return of profits to shareholders by expanding the level of such profits available as dividends and increasing shareholder value, while retaining sufficient reserves for reinvestment.
Guided by this basic policy, we will focus on continuing to pay stable dividends, taking into account a range of factors that include the profit levels and financial conditions of the relevant fiscal year, and the availability of funds needed for capital investment and R&D to support future business development. In the "Medium-term business Plan" released in May 2016, the NICHIAS Group sets a dividend payout ratio of about 25-35% as its target to return profits to shareholders.
In FY2020, we paid a first-half dividend of ¥38 per share and will pay year-end dividends of ¥40 per share.
In FY2021, we plan to pay ¥40 per share in interim dividends and a year-end dividend of ¥40 per share, based on the above policy. However, the final decision on dividends will be made based on a comprehensive assessment of financial conditions and earnings in the next fiscal year.
(6) Risk factors
This section reviews matters that are believed likely to have a major impact on the decisions of investors. Note that matters related to future developments that are mentioned in this section are judgments of the Group that were made at the end of the fiscal year under review.
□ Business and economic fluctuation risk
The Group conducts manufacturing and sales of sealing materials such as gaskets and packing; manufacturing and sales of varieties of insulation materials using mainly rock wool and inorganic fibers; manufacturing and sales of corrosion-resistant materials and machine parts using high-performance resin polymer such as fluoropolymer; manufacturing and sales of automotive parts including sealing materials for engines and engine accessory parts with thermal insulation and soundproofing attributes; manufacturing and sales of non-combustible building materials centered on calcium silicate boards and insulation materials; and industrial thermal insulation work for energy, gas, petroleum refining and petrochemicals plants, and free-access floor work. The Group's customers comprise a wide range of industries, including petroleum, petrochemical, chemical, steel, electricity, gas, automotive, semiconductor, and construction. The Group is therefore reliant on industry-wide capital expenditure trends, anti-corrosion materials are reliant on semiconductor demand trends, automotive parts are reliant on production and unit sales trends in the automotive industry, and building materials are reliant on residential and building construction trends. Accordingly, the Group's earnings could ultimately be affected by business and economic fluctuations both overseas and in Japan.
3
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Nichias Corporation published this content on 25 May 2021 and is solely responsible for the information contained therein. Distributed by Public, unedited and unaltered, on 25 May 2021 06:02:01 UTC.
