Overview of 2024 Financial Statements
Business Results
(Unit: billions of yen)
| Net Sales | 1,389.3 | YoY Increase / decrease 100.4 |
|---|---|---|
| Operating Income | 78.7 | 82.5 |
| Ordinary Income | 69.7 | 84.5 |
| Net Income Attributable to Owners of the Parent | 55.4 | 74.4 |
| Net Income Attributable to Owners of the Parent per Share | ¥306.59 | ¥411.24 |
In the year ended December 31, 2024(“2024”), there was a gradual recovery in the global economy. In particular,that of the semiconductor industry was relatively significant. Still, supply constraints persisted due to the prolonged rise in energy and raw material costs caused by the situation in Ukraine and the Middle East, and the impact of global monetary tightening continued. The Japanese economy also showed a moderate recovery overall, with improvements seen in consumer spending and corporate capital investment.Consolidated sales for 2024 increased to 1,389,277 million yen from the previous fiscal year ended December 31,2023(“2023”). Sales in the Mobility and Chemical segments remained at the same level as 2023. Sales in the Semiconductor and Electronic Materials and Innovation Enabling Materials segments increased due to increased sales volume, resulting in an overall increase in sales.Operating income for 2024 increased to 78750 million yen from 2023. Operating income decreased in the Mobility
segment, but the other three segments increased.As for non-operating income and expenses, ordinary income was 69,692 million yen, due to an improvement in equity in earnings of affiliates compared to 2023. Extraordinary income included gains on the sale of fixed assets,such as the land and buildings of the former head office, and net income attributable to owners of parent for 2024 was 55,422 million yen.
Segment Information
Net sales by Segment
(Unit: billions of yen)
| Semiconductor and Electronic Materials | 445.1 | YoY Increase / decrease 107.0 |
|---|---|---|
| Mobility | 213.7 | (2.4) |
| Innovation Enabling Materials | 97.2 | 4.3 |
| Chemicals | 517.4 | 1.1 |
Operating Income by Segment
(Unit: billions of yen)
| Semiconductor and Electronic Materials | 62.9 | Increase / decrease 72.3 |
|---|---|---|
| Mobility | 4.9 | (0.5) |
| Innovation Enabling Materials | 10.7 | 2.8 |
| Chemicals | 9.5 | 1.8 |
Semiconductor and Electronic Materials
In the Semiconductor and Electronic Materials segment, sales of Semiconductor Materials increased due to a recovery in semiconductor market conditions. 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.
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. 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, and operating income decreased.
Innovation Enabling Materials
In the Innovation Enabling Materials segment, sales and operating income increased from 2023 due to the passthrough 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, but operating income decreased due to higher raw material prices for some products. Sales of Graphite Electrodes
decreased due to a decrease in sales volume and unit sales prices affected by sluggish market conditions, but operating loss was reduced from 2023 due to a reversal of inventory write-downs.Overall, sales of the Chemicals segment was at the same level as 2023, while operating income increased.
Financial Conditions
(Unit: billions of yen)
| Total Assets | 2,125.0 | Increase / decrease 93.0 |
|---|---|---|
| Total Equity | 658.4 | 79.7 |
| Stockholders' Equity Ratio | 29.7% | 2.5p |
| Net Assets per share | ¥3,494.12 | ¥442.05 |
Total assets at the end of 2024 increased from the end of 2023 due to an increase in cash and deposits. Total liabilities increased as interest-bearing debt increased. Net assets increased, due to an increase in foreign currency translation adjustments.
Cash Flow
(Unit: billions of yen)
| Operating Activities | 165.3 | Increase / decrease 46.6 |
|---|---|---|
| Investing Activities | (51.6) | 10.3 |
| Free Cash Flow | 113.7 | 56.8 |
| Financing Activities | (20.0) | 42.9 |
| Others | 11.8 | 1.9 |
| Net Increase in Cash | 105.5 | 101.7 |
Net cash provided by operating activities during 2024 increased from 2023 due to an increase in profit before income taxes. Net cash used in investing activities during 2024 decreased from 2023 due to an increase in income from the sale of fixed assets, despite a decrease in income from the sale of subsidiary shares resulting in a change in the scope of consolidation. As a result, free cash flow increased from 2023. Net cash used in financing activities during 2024 decreased from 2023.Although there were expenditures for repayment of long-term loans and redemption of corporate bonds, etc., due to income from long-term loans and income from issuance of corporate bonds, etc., expenditures decreased by 42,902 million yen compared to 19,978 million yen.As a result, cash and cash equivalents at the end of 2024 increased from the end of 2023, including the impact of currency fluctuations.