First Quarter, Overview of 2024 Financial Statements
Business Results
(Unit: billions of yen)
| Net Sales | 321.4 | Increase / decrease +22.5 |
|---|---|---|
| Operating Income | 8.9 | +18.2 |
| Ordinary Income |
11.0 |
+21.9 |
| Net Income Attributable to Owners of the Parent | 27.1 | +39.3 |
| Net Income Attributable to Owners of the Parent per Share | ¥149.53 | +¥217.24 |
In the three-month period ended March 31, 2024 (“2024 1Q”), the global economy continued to show weakness in some regions due to supply constraints such as the impact of global monetary tightening and the rise in energy and raw material costs due to the prolonged situation in Ukraine and the Middle East. On the other hand, there was a recovery in the semiconductor industry. Japanese economy recovered moderately as a whole, while standstills in the recovery of consumer spending were seen and corporate capital investment showed a gradual recovery.
Consolidated sales for 2024 1Q increased from the corresponding three-month period of the previous year (“2023 1Q”). Sales decreased in the Chemicals segment due to a decrease in the quantity of Graphite Electrodes and a decrease in Olefins & Derivatives due to the maintenance of petrochemical derivatives. In the Semiconductors and Electronic Materials segment, sales increased significantly compared to 2023 1Q, when adjustments were taken place in the semiconductor industry. And sales in the Mobility and Innovation Enabling Materials segments also increased due to volume increases.
Consolidated operating income for 2024 1Q increased from 2023 1Q. In the Chemicals segment, operating income decreased due to a decrease in volume, though in the Semiconductors and Electronic Materials segment, operating income increased significantly. In the Mobility and Innovation Enabling Materials segments, operating income increased mainly due to an increase in volume.
Ordinary income for 2024 1Q increased from 2023 1Q mainly due to an increase in foreign exchange gains.
Net income attributable to owners of the parent for 2024 1Q increased from 2023 1Q due to gains on sales of fixed assets of land and buildings of the former head office.
Segment Information
Net sales by Segment
(Unit: billions of yen)
| Semiconductor and Electronic Materials | 97.5 | +28.1 |
|---|---|---|
| Mobility | 52.6 | +0.7 |
| Innovation Enabling Materials | 22.3 | +1.6 |
| Chemicals | 116.8 | (10.3) |
Operating Income by Segment
(Unit: billions of yen)
| Semiconductor and Electronic Materials | 6.3 | Increase / decrease +16.6 |
|---|---|---|
| Mobility | 1.7 | +1.4 |
| Innovation Enabling Materials | 2.4 | +1.2 |
| Chemicals | 0.7 | (3.2) |
Semiconductor and Electronic Materials
In the Semiconductor and Electronic Materials segment, sales of Semiconductor Materials increased due to a gradual recovery in semiconductor market conditions from the second quarter of the previous fiscal year. In Device Solutions, sales of HD media increased significantly due to a recovery in demand for data centers, and sales of SiC epitaxial wafers increased due to an increase in sales volume.
As a result, sales and operating income in this segment increased from 2023 1Q.
Mobility
In the Mobility segment, sales of Automotive Products increased due to the recovery of automobile production and the launch of products for new models. For Lithium-ion Battery Materials, while the impact of slowing demand for consumer products continued, sales increased due to an increase in the demand for electric vehicles.
As a result, sales and operating income increased in this segment compared from 2023 1Q.
Innovation Enabling Materials
In the Innovation Enabling Materials segment, sales increased from 2023 1Q due to the pass-through of higher raw material prices to product sales prices and an increase in sales volume. Operating income increased from 2023 1Q due to the elimination of the time lag factor in price pass-through.
Chemicals
In the Chemicals segment, sales and operating income of Olefins & Derivatives decreased due to a decrease in sales volume caused by the maintenance of petrochemical derivatives, despite an increase in unit sales price due to an increase in naphtha prices. Sales of Basic Chemicals decreased due to a decline in unit sales prices associated with a decline in raw fuel prices for some products, outweighing the effects of overall higher unit sales prices.
Operating income increased due to the effects of overall higher unit sales prices and cost effects associated with a decline in raw fuel prices. Sales and operating income of Graphite Electrodes decreased due to a decrease in sales volume and unit sales price.
As a result, sales and operating income decreased from 2023 1Q.
*Since the current fiscal year, the Aluminum Specialty Components business was transferred from the Innovation Enabling Materials segment to the Mobility segment, and the figures for 2023 shown in the chart have been changed retroactively.
Financial Conditions
(Unit: billions of yen)
| Total Assets | 2,043.5 | Increase / decrease +11.5 |
|---|---|---|
| Total Equity | 610.7 | (20.5) |
| Stockholders' Equity Ratio | 28.6% | +1.4p |
Total assets at the end of 2024 1Q increased from the end of the previous fiscal year 2023 due to an increase in cash and deposits, despite a decrease in intangible fixed assets such as goodwill.
Total liabilities decreased mainly due to a decrease in interest-bearing debt.
Net assets increased due to the recording of Net income attributable to owners of the parent and an increase in foreign currency translation adjustments.