Consolidated Financial Report for the Three Months Ended June 30, 2022
TOYOBO Co., Ltd. URL https://ir.toyobo.co.jp/en/ir.html Stock Code: 3101 (Prime Market, Tokyo Stock Exchange)
Representative: Ikuo Takeuchi, President & Representative
Contact Person: Sonoko Ishimaru, General Manager, Corporate Communication Department TEL: +81-6-6348-3044
Quarterly report filling date (Planned): August 12, 2022
(Figures are rounded to the nearest million yen)
Percentages indicate year-on-year increase/ (decrease)
Three months ended June 30, 2022: ¥11,021 million 28.4%
Three months ended June 30, 2021: ¥8,583 million 193.7%
(Reference) Total shareholders' equity: June 30, 2022: ¥202,073 million, March 31, 2022: ¥194,876 million
(Note) Revision of dividends forecast for this period: None
3. Forecasts for Fiscal Year Ending March 31, 2023
Percentages indicate year-on-year increase/ (decrease)
(Note) Revision of earnings forecast for this period: None
1. Significant changes in subsidiaries during the subject fiscal year (Transfer of particular subsidiaries following a change in the scope of consolidation): None
1) Changes based on revision of accounting standards
3) Changes due to accounting estimation change
4. Number of shares issued and outstanding (common stock):
1) Number of shares outstanding (including treasury stock):
3) Average number of shares outstanding for each period (cumulative term): Three months ended June 30, 2022: 88,896,148 shares
The forward-looking statements made in this document, including the aforementioned forecasts, are based on all information available to the management at the time of this document's release. Actual results may differ from the results anticipated in the statements.
(How to obtain supplementary document on earnings)
The supplementary document on earnings is disclosed on the same day as the Quarterly Financial Results report, and it is made available on the Company's website.
1. Qualitative Information and Financial Statements
(1) Qualitative Information on Consolidated Results
As for the business environment surrounding the Toyobo Group (hereinafter the "Group") in the three months ended June 30, 2022, consumption recovered due to the transition to a with -COVID society in Europe and the United States. However, inflation proceeded due to the accumulation of rising raw material and fuel prices and material supply tightening due to the worsening of the situation in Ukraine as well as its prolongation. The economy in China slowed down due to its zero-COVID policy (lockdowns). On the other hand, economic recovery in Japan came to a standstill due to delays in the recovery of automobile production as a result of raw material and fuel prices remaining high and shortages in the supply of materials, such as semiconductors, in addition to delays in transitioning to with-COVID policies. Going forward, there are concerns regarding the impact of the resurgence of COVID-19, the depreciation of the yen and the increase of the pressure of inflation on economic activities.
Under this business environment, polarizer protective films for LCDs "COSMOSHINE SRF" achieved growth in sales as a result of increasing the productivity of the new line, and sales of volatile organic compound (VOC) emissions treatment equipment for recovering solvents suddenly recovered due to increased demand for lithium-ion batteries. On the other hand, films, engineering plastics, airbag fabrics, spunbond, polyester staple fibers, etc. were affected by rising raw material prices.
As a result, consolidated net sales in the three months ended June 30, 2022 increased ¥6.4 billion (6.8%) over the same period of the previous fiscal year, to ¥101.0 billion. Operating profit decreased ¥4.6 billion (50.0%), to ¥4.6 billion and ordinary profit decreased ¥3.1 billion (42.0%) to ¥4.3 billion. Profit attributable to owners of parent increased ¥1.6 billion (26.4%), to ¥7.8 billion due to the recording of insurance claim income of ¥5.6 billion for the fire accident as extraordinary income.
Results by business segment were as follows:
In this segment, sales increased while operating profit decreased due to the impact of rising raw material prices in the packaging film and industrial film businesses.
In the films business, operating profit declined due to time lag in realizing product price revisions in response to rising raw material prices despite strong sales of packaging film.
In the industrial film business, although polarizer protective films for LCDs "COSMOSHINE SRF" achieved growth in sales as a result of increasing the productivity of the new line, it was impacted by rising raw material prices for many products.
In the functional materials business, sales of photo functional materials for water-wash photosensitive printing plates were strong due to the impact of foreign exchange in addition to the product price revisions proceeded. On the other hand, sales of industrial adhesives "Vylon" declined due to the impact of China's zero-COVID policy.
As a result, sales in this segment decreased ¥0.4 billion (0.9%) from the same period of the
previous fiscal year to ¥45.3 billion, and operating profit decreased ¥3.3 billion (48.3%) to ¥3.5 billion.
In this segment, sales increased while operating loss increased as product price revisions were unable to keep up with rising raw material prices.
Sales of engineering plastics faced challenges due to the impact of rising raw material prices in addition to the production curtailment of automobiles both in Japan and overseas.
With regard to airbag fabrics, the improvement of the spread which deteriorated due to rising raw material prices, was delayed.
As a result, sales in this segment increased ¥0.7 billion (6.8%) from the same period of the previous fiscal year to ¥11.8 billion, with an operating loss of ¥0.8 billion. (Compared with operating loss of ¥0.5 billion for the same period of the previous fiscal year.)
In this segment, sales increased while operating profit decreased due to the impact of rising raw material prices, such as for spunbond and polyester staple fibers, despite the recovery of sales of equipment for VOC emissions treatment for recovering solvents.
In the environmental solutions business, with regard to equipment for VOC emissions treatment, sales of replacement elements as well as equipment for VOC emissions treatment used in the manufacturing process for lithium-ion battery separators suddenly recovered due to the increase in demand for lithium-ion batteries as a result of the global shift to EV.
In the nonwoven materials business, sales of spunbond faced challenges due to rising raw material prices in addition to the production curtailment of automobiles. Sales of polyester staple fibers for use in hygiene products were strong, but were affected by rising raw material prices.
In the high performance fibers business, sales of "ZYLON" for use in bicycle tires were strong.
As a result, sales in this segment increased ¥4.4 billion (15.8%) from the same period of the previous fiscal year to ¥32.1 billion, and operating profit decreased ¥1.2 billion (81.5%) to ¥0.3 billion.
In this segment, sales and operating profit increased as sales of enzymes for diagnostic reagents, etc. were strong despite a decrease in sales of reagents for PCR tests for COVID-19.
In the biotechnology business, sales were strong due to the impact of foreign exchange in addition to sales of enzymes for diagnostic reagents as well as those for genetic testing reagents increased, despite sales of reagents for PCR tests decreasing due to COVID-19 infections calming down.
The contract manufacturing business of pharmaceuticals faced challenges as a result of rising expenses in response to suggestions from the FDA.
In the medical materials business, sales of artificial kidney hollow fiber and virus removing membranes trended strong.
As a result, sales in this segment increased ¥1.2 billion (16.2%) from the same period of the previous fiscal year to ¥8.7 billion, and operating profit increased ¥0.3 billion (14.7%) to ¥2.1 billion.
Real Estate and Other Business
This segment includes infrastructure-related businesses such as real estate, engineering, information processing services, and logistics services. Results in these businesses were generally in line with plans.
As a result, sales in this segment increased ¥0.5 billion (18.5%) from the same period of the previous fiscal year to ¥3.1 billion, and operating profit decreased ¥0.0 billion (9.5%) to ¥0.3 billion.
(2) Qualitative Information on the Consolidated Financial Position
Assets, Liabilities and Net Assets
Total assets increased ¥15.8 billion (3.0%) from the end of the previous fiscal year, to ¥533.6 billion. This was mainly due to an increase in cash and deposits, inventories and an increase in property, plant and equipment due to capital investment.
Total liabilities increased ¥8.5 billion (2.7%) to ¥329.1 billion. This was mainly due to an increase in notes and accounts payable - trade and borrowings.
Net assets increased ¥7.3 billion (3.7%) from the end of the previous fiscal year, to ¥204.4 billion mainly due to an increase in retained earnings and foreign currency translation adjustment.
(3) Qualitative Information on Consolidated Forecasts
The performance of the Group in the three months ended June 30, 2022 was generally as forecast. Regarding the consolidated earnings forecast for fiscal year ending March 31, 2023, no changes have been made in the outlook announced on May 12, 2022.
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Toyobo Co. Ltd. published this content on 08 August 2022 and is solely responsible for the information contained therein. Distributed by Public, unedited and unaltered, on 08 August 2022 04:03:00 UTC.