Translation from the Original Japanese Version.
Consolidated Financial Results for the Nine Months Ended December 31, 2022 (Japanese GAAP)
January 26, 2023
Company name: Toho Titanium Co., Ltd.
Code number: 5727
Stock Exchange Listings: Tokyo
URL: https://www.toho-titanium.co.jp/en/
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: February 10, 2023
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 Nine Months Ended December 31, 2022 (From April 1, 2022 to December 31, 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 | ||||||||||||||||||||||||
Nine months Ended | 5,372 | |||||||||||||||||||||||
Nine months Ended | Millions of yen | % | Millions of yen | % | Millions of yen | % | Millions of yen | % | ||||||||||||||||
58,478 | 44.1 | 7,639 | 91.8 | 7,388 | 92.0 | 99.5 | ||||||||||||||||||
December 31, 2022 | ||||||||||||||||||||||||
December 31, 2021 | 40,595 | 57.8 | 3,983 | 81.1 | 3,848 | 921.9 | 2,693 | - | ||||||||||||||||
(Note) Comprehensive income | The Nine months ended December 31, 2022: | ¥5,153 million [ (92.6) % ] | ||||||||||||||||||||||
The Nine months ended December 31, 2021: | ¥2,675 million [ (-) % ] | |||||||||||||||||||||||
Net income | Diluted net income | |||||||||||||||||||||||
per share | per share | |||||||||||||||||||||||
Nine months Ended | Yen | Yen | ||||||||||||||||||||||
75.48 | ― | |||||||||||||||||||||||
December 31, 2022 | ||||||||||||||||||||||||
Nine months Ended | 37.84 | ― | ||||||||||||||||||||||
December 31, 2021 | ||||||||||||||||||||||||
(2) Consolidated Financial Position | ||||||||||||||||||||||||
Total assets | Net assets | Shareholders' equity ratio | ||||||||||||||||||||||
Millions of yen | Millions of yen | % | ||||||||||||||||||||||
December 31, 2022 | 110,030 | 50,894 | 46.1 | |||||||||||||||||||||
March 31, 2022 | 98,095 | 47,166 | 47.9 | |||||||||||||||||||||
(For reference) | Shareholders' equity : December 31, 2022: ¥50,762 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 | ― | 11.00 | ― | |||||||||||||||||||||
FY2022 (Forecast) | ― | 17.00 | 28.00 |
(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 | |||||||||
FY2022 | Millions of yen | % | Millions of yen | % | Millions of yen | % | Millions of yen | % | Yen | |
80,600 | 45.2 | 9,700 | 85.5 | 10,000 | 93.1 | 7,000 | 89.4 | 98.35 |
(Note) Revisions to the previously announced forecasts: None
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)
December 31, 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
December 31, 2022: | 98,590 shares |
March 31, 2022: | 98,309 shares |
(iii) Average number of issued and outstanding shares during the period
December 31, 2022: | 71,172,482 shares |
December 31, 2021: | 71,172,697 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, and 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 | ||
Nine Months Ended December 31, 2022 and December 31, 2021 | 6 | |
Consolidated Statements of Comprehensive Income (Loss) | ||
Nine Months Ended December 31, 2022 and December 31, 2021 | 7 | |
(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 | |
Change in accounting policies | 9 | |
Segment Information etc | 10 |
1
1. Qualitative Information on the Quarterly Results
- Explanations on Operating Results
During the nine months ended December 31, 2022, the Japanese economy continued to recover as restrictions on activities due to COVID-19 was eased and both the prevention of the spread of the disease and economic activities were promoted.
In the global economy, there was a lull in the surge in resource and energy prices in the second half of the year following Russia's invasion of Ukraine, and signs of a slowdown in inflation began to emerge, but the outlook remains uncertain. In the Chinese economy, a shift to a zero-COVID policy is being implemented to restore production and consumption activities.
The Group's business environment shows that while product sales remained strong due to the recovery trend from the Coronavirus pandemic and the tight supply-demand balance caused by changes in the global supply chain for titanium metal due to the conflict in Ukraine, whereas demand in the catalysts and chemicals businesses declined due to the economic slowdown in China. In terms of costs, prices of raw materials, sub-materials, and energy are putting more pressure on earnings due to the sharp depreciation of the yen toward the middle of the year.
Under these circumstances, net sales for the nine months ended December 31, 2022 were 58,478 million yen (a 44.1% increase compared to the same period of last year) and operating income for the period was 7,639 million yen (a 91.8% increase), with ordinary income of 7,388 million yen (a 92.0% increase compared to the same period of the previous year). Net profit attributable to owners of parent was 5,372 million yen (a 99.5% increase the same period of the previous year).
Results by business segment are as stated below.
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 six months ended December 31, 2021(from April 1, 2021 to December 30, 2021) is described based on the calculation method after the change.
Titanium Metal Business
Sales of sponge titanium during the nine months ended December 31 remained steady due to strong demand for both aircraft and general industrial applications.
Demand for aircraft applications has been increasing on the back of a recovery in passenger demand, and this has been supplemented by replacement demand for expanded products made in Russia. Demand for high-purity titanium for general industrial and semiconductor applications also remains strong. Therefore, we are responding by supplying from our joint venture in Saudi Arabia in addition to shipments from Japan, including inventory.
In terms of earnings, although cost increases due to surging raw material ore, electricity prices, and indirect material costs have begun to become apparent, under such circumstances, due to factors such as increased shipment volume, price correction by some customers, yen depreciation, and time lag in reflecting rising costs in cost of sales, net sales of the Titanium Metal Business for the period were 39,741 million yen, (an increase 74.1%, as compared to the corresponding period of the previous year) and the operating income of the business for the period was 4,457 million yen, (loss of 204 million yen, as compared to the corresponding period of the previous year).
2
Catalyst Business
Sales of catalysts during the nine months ended December 31, 2022 were lower than the same period of the previous fiscal year due to softening demand for polyolefin catalysts in Asia, mainly reflecting the economic slowdown in China.
Under such circumstances, despite the decrease in sales volume, price correction and the effect of yen's depreciation resulted in a decrease in sales volume, net sales of the Catalysts Business for the period increased by 9.7% amounting to 6,402 million yen, and the operating income of the business for the period was 2,125 million yen, a 10.6% increase.
Chemicals Business
Sales of chemicals during the nine months ended December 31, were lower than in the same period of the previous year due to a decline in demand for multilayer ceramic capacitors (MLCC), the main application for ultra-fine nickel powder, as a result of rising interest rates in the U.S. and the economic slowdown in China. As a result, sales volume was below the level of the same period of the previous fiscal year.
Under such circumstances, net sales of the Chemical Business for the period increased by 3.4% amounting to
12,334 million yen, and the operating income of the business for the period was 2,016million yen, a 31.7% decrease.
3
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Toho Titanium Co. Ltd. published this content on 26 January 2023 and is solely responsible for the information contained therein. Distributed by Public, unedited and unaltered, on 26 January 2023 06:52:00 UTC.