1-3Q 2024, Overview of Financial Statements
Business Results
(Unit: billions of yen)
| Net Sales | 1,027.5 | Increase / decrease 1-3Q YoY 85.2 |
|---|---|---|
| Operating Income | 58.9 | 63.2 |
| Ordinary Income |
46.5 |
53.6 |
| Net Income Attributable to Owners of the Parent | 50.8 | 57.1 |
| Net Income Attributable to Owners of the Parent per Share | ¥280.83 |
¥315.98 |
In the nine-month period ended September 30, 2024 (“2024 1-3Q”), the global economy showed signs of recovery,although supply constraints persisted due to the prolonged rise in energy and raw material costs caused by thesituation in Ukraine and the Middle East, and the impact of global monetary tightening continued. The semiconductor industry in particular showed signs of recovery. The Japanese economy also showed a moderate recovery overall,with improvements seen in consumer spending and corporate capital investment.
Consolidated sales for 2024 1-3Q increased from the corresponding nine-month period of the previous year (“2023 1-3Q”). Sales in the Chemicals segment decreased mainly due to a decline in the sales price of Graphite Electrodes.Sales in the Mobility segment were on par with 2023 1-3Q. In the Semiconductors and Electronic Materials segment and the Innovation Enabling Materials segment, sales increased due to higher sales volumes. Operating income for 2024 1-3Q increased from 2023 1-3Q. In the Chemicals segment, operating income decreased mainly due to the price decline in Graphite Electrodes. However, operating income increased in the other three segments:Semiconductors and Electronic Materials, Mobility, and Innovation Enabling Materials. Ordinary income for 2024 1-3Q increased, although non-operating profit and loss deteriorated compared to 2023 1-3Q due to foreign exchange losses. Net income attributable to owners of the parent for 2024 1-3Q increased compared to 2023 1-3Q 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 | 328.5 | 86.8 |
|---|---|---|
| Mobility | 160.7 | 1.4 |
| Innovation Enabling Materials | 71.8 | 4.1 |
| Chemicals | 381.1 | (3.7) |
Operating Income by Segment
(Unit: billions of yen)
| Semiconductor and Electronic Materials | 45.3 |
Increase / decrease 57.8 |
|---|---|---|
| Mobility | 3.5 | 0.7 |
| Innovation Enabling Materials | 8.5 | 2.9 |
| Chemicals | 6.4 | (3.8) |
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 2023 1-3Q. 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 1-3Q.
Mobility
In the Mobility segment, Automotive Products faced sluggish demand due to the situation in Thailand, despite the recovery of automobile production and the launch of products for new models, resulting in a decrease in sales from 2023 1-3Q. 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 remained at the same level as 2023 1-3Q, and operating income increased.
Innovation Enabling Materials
In the Innovation Enabling Materials segment, sales and operating income increased from 2023 1-3Q due to the pass-through of higher raw material prices to product sales prices and an increase in sales volume.
Chemicals
In the Chemicals segment, sales of Olefins & Derivatives increased due to an increase in unit sales prices in line with the rise in naphtha prices, but operating income decreased due to a decrease in sales volume caused by the maintenance of petrochemical derivatives. Sales of Basic Chemicals remained at the same level as 2023 1-3Q, and operating income decreased due to higher raw material prices for some products. Sales and operating income of Graphite Electrodes decreased due to a decrease in sales volume and unit sales prices affected by sluggish market conditions.
As a result, sales and operating income decreased from 2023 1-3Q.
Financial Conditions
(Unit: billions of yen)
| Total Assets | 2,059.6 | Increase / decrease 27.6 |
|---|---|---|
| Total Equity | 616.4 | 37.7 |
| Stockholders' Equity Ratio | 28.7% | 1.5p |
Total assets at the end of 2024 1-3Q increased from the end of the previous fiscal year due to an increase in cash and deposits, despite a decrease in intangible fixed assets such as goodwill. Total liabilities decreased as interest-bearing debt increased but notes and accounts payable - trade and other liabilities decreased. Net assets increased, due to the recording of net income attributable to owners of the parent.