JFE Holdings' Financial Results for Fiscal Year 2022
ended March 31, 2023
- All financial information has been prepared in accordance with International Financial Reporting Standards (IFRS) -
(Note: The following is an English translation of an original Japanese document)
May 8, 2023 | |
Official name: | JFE Holdings, Inc. |
Listings: | Tokyo stock exchanges |
Code: | 5411 |
English URL: | www.jfe-holdings.co.jp/en |
Representative: | Koji Kakigi, President and CEO |
Contact: | Hiroki Watanabe, Manager, Public Relations Section |
Investor Relations and Corporate Communications | |
Department | |
Phone: | +81-3-3597-3842 |
Annual shareholders meeting (planned): | June 27, 2023 |
Dividend payment starting date: | June 28, 2023 |
Scheduled date to submit securities report: | June 27, 2023 |
Preparation of supplementary materials on results: | Yes |
Results briefing: | Yes |
(Figures are rounded down to the nearest million yen) |
1. Consolidated Results for Fiscal 2022 (April 1, 2022 to March 31, 2023)
(1) Consolidated Operating Results (cumulative total)
(Percentages indicate year on year change)
Profit | Compre- | ||||||||||
Business | Profit | attributable | |||||||||
Revenue | Profit | hensive | |||||||||
% | profit | % | before tax | % | % | to owners | % | % | |||
(million yen) | (million yen) | income | |||||||||
(million yen) | (million yen) | of parent | |||||||||
(million yen) | |||||||||||
(million yen) |
FY 2022 | 5,268,794 | 20.7 | 235,841 | (43.4) | 210,282 | (45.9) | 166,752 | (42.5) | 162,621 | (43.5) | 203,814 | (42.6) | |
FY 2021 | 4,365,145 | 35.3 | 416,466 | - | 388,535 | - | 289,793 | - | 288,058 | - | 355,249 | 461.8 | |
Basic earnings per | Diluted earnings per | Profit ratio to equity | Profit before tax ratio | Business profit ratio | |||||||||
share | share | attributable to | to total assets | to revenue | |||||||||
(yen) | (yen) | owners of parent | (%) | (%) | |||||||||
(%) | |||||||||||||
FY 2022 | 280.68 | 280.52 | 7.9 | 3.9 | 4.5 | ||||||||
FY 2021 | 500.28 | 500.12 | 15.7 | 7.8 | 9.5 | ||||||||
(Reference): Equity in earnings of affiliates: | FY 2022: 23,002 million yen FY 2021: 99,730 million yen | ||||||||||||
Note: Business profit is profit before tax excluding financial income and one-time items of a materially significant value. | |||||||||||||
(2) Consolidated Financial Position | |||||||||||||
Total assets | Total equity | Equity attributable to | Total equity | Equity attributable to | |||||||||
(million yen) | (million yen) | owners of parent | attributable to | owners of parent per | |||||||||
(million yen) | owners of parent | share | |||||||||||
(%) | (yen) | ||||||||||||
FY 2022 | 5,524,040 | 2,193,395 | 2,120,322 | 38.4 | 3,649.79 | ||||||||
FY 2021 | 5,287,909 | 2,070,739 | 1,988,268 | 37.6 | 3,452.82 | ||||||||
(3) Consolidated Cash Flows | |||||||||||||
Cash flows from | Cash flows from | Cash flows from | Cash and cash | ||||||||||
operating activities | investing activities | financing activities | equivalents at end of | ||||||||||
(million yen) | (million yen) | (million yen) | year | ||||||||||
(million yen) | |||||||||||||
FY 2022 | 395,797 | (274,308) | (110,175) | 119,391 | |||||||||
FY 2021 | 298,738 | (288,034) | (57,427) | 101,773 |
2. Dividends
Dividend per share (yen) | Dividend ratio of | |||||||
Total dividend | Dividend | equity attributable | ||||||
Annual | End on 1st | Interim | End on 3rd | Yearend | payout | payout ratio | to owners of | |
(million yen) | (consolidated, %) | parent | ||||||
quarter | quarter | |||||||
(consolidated %) | ||||||||
FY 2021 | 140.00 | - | 60.00 | - | 80.00 | 80,709 | 28.0 | 4.4 |
FY 2022 | 80.00 | - | 50.00 | - | 30.00 | 46,527 | 28.5 | 2.3 |
FY 2023 | 100.00 | - | - | - | - | 30.6 | ||
(forecast) | ||||||||
The company's basic policy regarding dividends from retained earnings is to pay an interim and year-end dividend each year, but since the estimated interim dividend has not been determined at this time, the forecast is presented as a total.
3. Forecasts of Consolidated Financial Results in Fiscal 2023 (April 1, 2023 to March 31, 2024)
(Percentages indicate year on year change)
Business | Profit | Basic earnings | |||||||
Revenue | Profit before | attributable | |||||||
% | profit | % | tax | % | to owners | % | per share | ||
(million yen) | |||||||||
(million yen) | (million yen) | of parent | (yen) | ||||||
(million yen) | |||||||||
FY 2023 | 5,540,000 | 5.1 | 290,000 | 23.0 | 270,000 | 28.4 | 190,000 | 16.8 | 327.05 |
Notes
- Changes in significant subsidiaries during the term (changes in designated subsidiaries resulting in changes in consolidated structure): No
- Changes in accounting policies and accounting estimates
- Changes in the accounting policies required by IFRS: No
- Changes in the accounting policies other than 1) above: No
- Changes in accounting estimates: No
- Number of outstanding shares (common stock)
-
Outstanding shares at the end of the term (including treasury stock) As of March 31, 2023: 614,438,399 shares
As of March 31, 2022: 614,438,399 shares - Treasury stock at the end of the term
As of March 31, 2023: 33,494,986 shares
As of March 31, 2022: 38,599,423 shares
-
Outstanding shares at the end of the term (including treasury stock) As of March 31, 2023: 614,438,399 shares
- Average number of shares during the term FY 2022: 579,382,068 shares
FY 2021: 575,793,363 shares
This report is not subject to auditing by a certified public accountant or an audit corporation. Explanation of Appropriate Use of Results Forecasts, and Other Matters of Note
-
Forecasts and other forward-looking statements herein are based on information available on the date of publication of this document as well as rational assumptions that we have made regarding certain factors. Actual results may vary significantly from these forecasts due to a wide range of circumstances. For a description of the results forecasts, see "1. Qualitative Information
(4) Outlook for Fiscal 2023" on Page 3 of the attachments. - The supplementary financial data will be disclosed today via TDnet and published on our website.
Attachments | |||
1. | Qualitative Information | 2 | |
(1) | Overview of Business Results | 2 | |
(2) | Overview of Financial Position | 3 | |
(3) | Overview of Cash Flow in Fiscal 2022 | 3 | |
(4) | Outlook for Fiscal 2023 | 3 | |
2. | Basic Rationale for Selection of Accounting Standards | 3 | |
3. | Consolidated Financial Statements | 4 | |
(1) | Consolidated Statement of Financial Position | 4 | |
(2) | Consolidated Statement of Profit or Loss and Consolidated Statement of Comprehensive Income | 6 | |
(3) | Consolidated Statement of Changes in Equity | 8 | |
(4) | Consolidated Statement of Cash Flow | 10 | |
(5) | Notes to Consolidated Financial Statements | 12 | |
Notes pertaining to the presumption of a going concern | 12 | ||
Segment information | 12 | ||
Per-share information | 14 | ||
Material subsequent events | 14 | ||
4. | Supplementary Information | 15 |
1
1. Qualitative Information
(1) Overview of Business Results
In fiscal 2022, JFE continued to achieve sustainable growth and improve its corporate value for shareholders and other stakeholders by pursuing its corporate mission of contributing to society with world-leading technology. The Japanese and global economies continued to recover from the economic slump brought about by the COVID-19 pandemic, despite price increases and supply-side constraints due to the economic impacts of the ongoing war in Ukraine, suppressed economic activity in China, growing global inflation concerns, and a weaker yen.
Under these circumstances, JFE worked to increase its ratio of high-value-added products and raise selling prices by passing on the costs of primary raw materials and various commodities. The company also advanced efforts to reinforce its earnings base by steadily pursuing structural reforms and blast furnace renovations. Nevertheless, negative factors including foreign exchange effects and inventory-valuation differences resulted in year-on-year decreases in both business profit and profit attributable to owners of the parent. The following explanation presents operating results in each segment.
In the steel business, consolidated crude-steel production volume declined to 25.48 million tons, reflecting the company's emphasis on maintaining prices in the face of softening demand for steel products, both in Japan and abroad, as well as related market conditions, especially in the second half of the year when costs of materials and equipment rose sharply and supplies of semiconductors and other components were constrained. Nevertheless, sales revenue increased significantly to 3,881.1 billion yen, despite a decrease in sales volume, due to efforts to raise selling prices and also factors such as the foreign exchange effects of a weaker yen. Despite efforts to reduce costs and improve selling prices, segment profit declined significantly to 146.8 billion yen due to one-time factors that impacted profit, such as unrealized losses on inventories, as well as soaring raw material prices and foreign exchange effects.
In the engineering business, orders received rose to a record high as a result of aggressive sales efforts to win orders, primarily in the field of core infrastructure, both in Japan and abroad. Sales revenue rose to 512.5 billion yen. Segment profit, however, declined to 13.4 billion yen due to factors such as soaring costs of materials and equipment and the worsening profitability of a construction project in Europe.
In the trading business, sales revenue rose to 1,514.1 billion yen and segment profit achieved a record high of 65.1 billion yen, thanks to efforts to expand sales of steel products as well as generally firm conditions for steel sales volume both in Japan and overseas. Also, selling prices trended upward in Japan and abroad, especially in North America.
On a consolidated basis, sales revenue rose firmly to 5,268.7 billion yen. Business profit declined to 235.8 billion yen. Among exceptional items, loss on liquidation of subsidiaries and associates etc. totaled 10.7 billion yen. Profit before tax came to 210.2 billion yen and profit attributable to owners of the parent totaled 162.6 billion yen.
Note: Business income is profit before tax, excluding financial income and one-time items of a materially significant value. It is a benchmark indicator of the company's consolidated earnings. The operating performance of each segment is presented in terms of segment profit, a measure including financial income in business profit. Exceptional items are one-time items of a materially significant value.
2
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Disclaimer
JFE Holdings Inc. published this content on 08 May 2023 and is solely responsible for the information contained therein. Distributed by Public, unedited and unaltered, on 08 May 2023 06:20:09 UTC.