Consolidated Financial Summary for the six months ended September 30, 2023
(JP GAAP)
October 26, 2023 | |
Listed company: Shin-Etsu Polymer Co., Ltd. | |
Listing code: | No. 7970 (URL https://www.shinpoly.co.jp/en/) |
Listing stock exchange: | Tokyo |
Representative: | Toshiaki Deto, President and Chief Operating Officer |
Person to contact: | Osamu Kowada, Executive Officer, General Manager of Corporate Planning Department and |
Accounting & Finance Department, Business Administration Unit | |
TEL: +81-3-5288-8406 |
Scheduled date to submit the Quarterly Securities Report: | November 10, 2023 |
Scheduled date of dividend payout: | November 28, 2023 |
Supplementary documents for quarterly results: | Yes |
Quarterly results briefing: | Yes (for analysts) |
(Amounts under a million yen are truncated.) |
1. Consolidated Financial Highlights for the First Half of the Fiscal Year Ending March 31, 2024 (April 1, 2023 to September 30, 2023)
- Consolidated Financial Results (The percentages indicate the rates of increase or decrease compared with the preceding fiscal year.)
Net sales | Operating profit | Ordinary profit | Profit attributable to | |||||
owners of parent | ||||||||
Million yen | % | Million yen | % | Million yen | % | Million yen | % | |
April - September 30, 2023 | 53,456 | 1.7 | 5,883 | (11.4) | 6,403 | (13.3) | 4,617 | (8.3) |
April - September 30, 2022 | 52,549 | 20.2 | 6,643 | 45.0 | 7,384 | 57.0 | 5,033 | 44.2 |
(Note) Comprehensive income: September 30, 2023: ¥7,981 million (-28.8%); September 30, 2022: ¥11,207 million (98.3%)
Basic earnings | Diluted earnings | |
per share | per share | |
Yen | Yen | |
April - September 30, 2023 | 57.01 | 56.67 |
April - September 30, 2022 | 62.42 | 62.11 |
(2) Consolidated Financial Position
Total assets | Net assets | Equity ratio | ||
Six months ended | Million yen | Million yen | % | |
141,490 | 111,629 | 78.6 | ||
September 30, 2023 | ||||
Year ended March 31, 2023 | 135,364 | 105,128 | 77.4 | |
(Reference) Equity capital: September 30, 2023: ¥111,196 million; March 31, 2023: ¥104,734 million |
2. Dividends
Dividend per share | ||||||||
1st quarter | 2nd quarter | 3rd quarter | Year-end | Annual | ||||
Yen | Yen | Yen | Yen | Yen | ||||
March 2023 | - | 18.00 | - | 20.00 | 38.00 | |||
March 2024 | - | 22.00 | ||||||
March 2024 | - | 22.00 | 44.00 | |||||
(forecast) | ||||||||
(Note) Revisions to dividend forecasts published | most recently: None |
3. Consolidated Financial Forecasts for the Fiscal Year Ending March 31, 2024 (April 1, 2023 to March 31, 2024)
(The percentages indicate the year-on-year change.)
Net sales | Operating profit | Ordinary profit | Profit attributable to | Basic earnings | |||||
owners of parent | per share | ||||||||
Million yen | % | Million yen | % | Million yen | % | Million yen | % | Yen | |
Full year | 111,000 | 2.5 | 13,000 | 2.0 | 13,000 | 0.1 | 9,000 | 5.5 | 111.20 |
(Note) Revisions to financial forecasts published most recently: None
* Notes
- Any changes in important subsidiaries during the six months ended September 30, 2023 (any changes in specific subsidiaries accompanied by a change in the scope of consolidating): None
Newly added: None | , Eliminated: None |
- Adoption of accounting treatment unique to the preparation of quarterly consolidated financial statements: None
-
Any changes in accounting policies and changes or restatement of accounting estimates
1. Changes in accounting policies associated with the revision of accounting standards, etc.: None
2. | Changes in accounting policies other than the above: | None | |
3. | Changes in accounting estimates: | None | |
4. | Restatement: | None | |
(4) Number of shares issued (common stock) | |||
1. | Number of shares issued as of the term end (including treasury shares): | September 2023 | 82,623,376 shares |
March 2023 | 82,623,376 shares | ||
2. | Number of treasury shares as of the term end: | September 2023 | 1,591,444 shares |
March 2023 | 1,690,917 shares | ||
3. | Average number of shares during the term: | September 2023 | 80,984,173 shares |
September 2022 | 80,639,442 shares |
The consolidated financial summary is not included in the scope of the quarterly review by certified public accountants or audit corporations.
Statement regarding the proper use of financial forecasts and other special remarks(Caution regarding forward-looking statements)
The forward-looking statements, such as results forecasts, included in this document are based on information currently available to the Company and certain assumptions considered reasonable, and the Company makes no representations as to their achievability. Actual results may differ materially, depending on a range of factors.
(Method of obtaining presentation material for business result meeting)
The Company will hold a business result meeting for analysts on November 8, 2023. The presentation material to be used at the briefing will be posted on the Company's website on the date of the briefing.
Shin-Etsu Polymer Co., Ltd. (7970) Financial Summary (For the six months ended September 30, 2023)
Accompanying Materials - Contents | ||
1. Qualitative Information on Quarterly Financial Results | 2 | |
(1) | Qualitative Information on Consolidated Results | 2 |
(2) | Explanation of Information on Future Forecasts Such as Consolidated Financial Forecasts | 3 |
2. Consolidated Quarterly Financial Statements and Key Notes | 4 | |
(1) | Consolidated Balance Sheet | 4 |
(2) | Consolidated Statements of Income and Consolidated Statement of Comprehensive Income | 6 |
(3) | Consolidated Statement of Cash Flows | 8 |
(4) | Explanatory Notes to Consolidated Financial Statements | 9 |
(Notes on the Premise of a Going Concern) | 9 | |
(Notes on Significant Changes in Shareholders' Equity (if any)) | 9 | |
(Segment Information) | 9 |
1
Shin-Etsu Polymer Co., Ltd. (7970) Financial Summary (For the six months ended September 30, 2023)
1. Qualitative Information on Quarterly Financial Results
(1) Qualitative Information on Consolidated Results
During the six months of the consolidate fiscal year under review, the world economy was recovering moderately as restrictions caused by the COVID-19 pandemic on economic activities were removed. However, the pace of recovery slowed due to prolonged inflation and monetary tightening in major countries. In the United States, consumer spending remained firm, reflecting a favorable labor market, but companies' production activities were slow given tightening financing conditions. In Europe, economies were stagnant, reflecting weak consumer spending associated with persistently high inflation and a fall in external demand. In China, the economy slowed due to a decline in exports following the end of stay-at-home demand and the slowdown of a rebound in consumer spending. In India and the ASEAN region, domestic demand expanded steadily, and high growth rates were recorded.
Looking at the Japanese economy, production activities recovered at many companies thanks to the easing of parts shortages. In addition, capital expenditure and consumer spending started to pick up again.
The Group's business environment remained firm overall, reflecting an increase in demand in the automotive- related industry. Demand in the semiconductor industry remained flat.
In this operating environment, the Group continued to focus its sales activities on boosting sales of both key products and new businesses in Japan and overseas, to expand the production/supply systems as well.
As a result, consolidated net sales stood at ¥53,456 million (up 1.7% year on year). Operating profit amounted to ¥5,883 million (down 11.4% year on year), ordinary profit was ¥6,403 million (down 13.3% year on year), and profit attributable to owners of parent came to ¥4,617 million (down 8.3% year on year) for the six months under review.
Consolidated results by segment are as follows.
1) Electronic Devices segment
In the Electronic Devices segment, shipments of products for automotive applications such as input devices remained solid given a recovery in demand in the automotive industry. However, with shipments of electronic device-related products remaining sluggish, overall sales stood at the year-ago level.
Of input devices, shipments of touchpads for slim notebook personal computers were weak, but shipments of automotive key switches and capacitive touch switches saw steady growth. Overall sales remained firm. Overall sales for display-related products were sluggish. Although shipments of view/light path control films (VCF) were strong, shipments of LCD connectors fell.
Sales of component-related products did not increase as expected, reflecting a decline in shipments of electronic- part testing connectors, although shipments of in-vehicle silicone molded products increased significantly.
As a result, segment sales stood at ¥12,153 million (up 2.2% year on year) and operating profit was ¥821 million (up 0.5% year on year).
2) Precision Molding Products segment
In the Precision Molding Products segment, overall sales remained roughly flat from a year ago, reflecting firm shipments of semiconductor-related containers, OA device components, and silicone rubber molded products. Overall sales for semiconductor-related containers remained at the year-ago level. Shipments of small diameter wafer containers were weak, but shipments of 300-mm wafer containers were firm.
Sales of parts for OA device components were firm. Despite decreased shipments of semi-conductive rollers, shipments of rollers for fuser units of multi-functional printers increased sharply.
Sales of carrier tape-related products were sluggish. Shipments of carrier tapes for micro electronic parts saw sluggish growth.
Sales of silicone rubber molded products generally remained flat, with weak results of general molded products offset by steady results of medical equipment.
As a result, segment sales stood at ¥24,885 million (up 2.1% year on year) and operating profit was ¥4,129 million (down 21.4% year on year).
2
Shin-Etsu Polymer Co., Ltd. (7970) Financial Summary (For the six months ended September 30, 2023)
3) Housing & Living Materials segment
In the Housing & Living Materials segment, overall sales remained flat. Shipments of wrapping films were recovering, reflecting a rebound in the movement of people, but market conditions for PVC products were extremely difficult.
Sales of packing materials such as wrapping films were firm as the demand for food service industry was recovering and demand for mainstay small wrapping rolls was also beginning to improve.
Sales for functional compounds were weak with strong shipments for automotive applications offset by sluggish shipments for applications in areas such as cables for industrial machines.
Sales of PVC pipes and related products remained at the year-ago level despite weak shipments, reflecting efforts to maintain sales prices.
Overall sales for exterior materials remained weak because demand for corrugate panels and other products continued to fall.
Sales of functional materials remained firm with almost flat sales for automotive electronic component applications and growth in shipments for displays.
As a result, segment sales stood at ¥12,854 million (down 1.0% year on year) and operating profit was ¥684 million (up 54.7% year on year).
4) Others segment
Overall sales were solid, reflecting strong orders for the interior construction of commercial facilities and public facilities in the construction business.
As a result, segment sales stood at ¥3,564 million (up 7.8% year on year) and operating profit was ¥246 million (up 88.8% year on year).
(2) Explanation of Information on Future Forecasts Such as Consolidated Financial Forecasts
Consolidated financial forecasts for the fiscal year ending March 31, 2024 published on April 26, 2023 remain unchanged.
3
Shin-Etsu Polymer Co., Ltd. (7970) Financial Summary (For the six months ended September 30, 2023)
2. Consolidated Quarterly Financial Statements and Key Notes
(1) Consolidated Balance Sheet
(Million yen)
Year ended March 31, 2023 | Second quarter ended | ||||||
September 30, 2023 | |||||||
(As of March 31, 2023) | |||||||
(As of September 30, 2023) | |||||||
Assets | |||||||
Current assets | |||||||
Cash and deposits | 46,900 | 45,046 | |||||
Notes and accounts receivable - trade, and | 24,745 | 24,931 | |||||
contract assets | |||||||
Electronically recorded monetary claims - | 3,509 | 4,082 | |||||
operating | |||||||
Merchandise and finished goods | 11,291 | 12,394 | |||||
Work in process | 2,006 | 1,644 | |||||
Raw materials and supplies | 6,333 | 6,331 | |||||
Accounts receivable - other | 2,723 | 2,182 | |||||
Other | 922 | 1,333 | |||||
Allowance for doubtful accounts | (360) | (158) | |||||
Total current assets | 98,072 | 97,786 | |||||
Non-current assets | |||||||
Property, plant and equipment | |||||||
Buildings and structures, net | 12,885 | 13,175 | |||||
Machinery, equipment and vehicles, net | 7,245 | 7,101 | |||||
Land | 6,975 | 6,981 | |||||
Construction in progress | 4,457 | 10,389 | |||||
Other, net | 2,125 | 2,226 | |||||
Total property, plant and equipment | 33,689 | 39,873 | |||||
Intangible assets | |||||||
Software | 126 | 820 | |||||
Goodwill | 199 | 177 | |||||
Other | 546 | 75 | |||||
Total intangible assets | 872 | 1,074 | |||||
Investments and other assets | |||||||
Investment securities | 934 | 967 | |||||
Deferred tax assets | 639 | 600 | |||||
Other | 1,155 | 1,187 | |||||
Total investments and other assets | 2,730 | 2,755 | |||||
Total non-current assets | 37,292 | 43,703 | |||||
Total assets | 135,364 | 141,490 | |||||
4
Shin-Etsu Polymer Co., Ltd. (7970) Financial Summary (For the six months ended September 30, 2023)
(Million yen)
Year ended March 31, 2023 | Second quarter ended | |||||
September 30, 2023 | ||||||
(As of March 31, 2023) | ||||||
(As of September 30, 2023) | ||||||
Liabilities | ||||||
Current liabilities | ||||||
Notes and accounts payable - trade | 15,065 | 15,544 | ||||
Electronically recorded obligations - operating | 2,948 | 2,944 | ||||
Accounts payable - other | 735 | 1,466 | ||||
Income taxes payable | 1,719 | 1,403 | ||||
Accrued expenses | 2,361 | 2,077 | ||||
Provision for bonuses | 1,713 | 1,764 | ||||
Provision for bonuses for directors (and other | 34 | 21 | ||||
officers) | ||||||
Other | 2,911 | 1,894 | ||||
Total current liabilities | 27,489 | 27,116 | ||||
Non-current liabilities | ||||||
Net defined benefit liability | 1,335 | 1,350 | ||||
Other | 1,410 | 1,393 | ||||
Total non-current liabilities | 2,746 | 2,744 | ||||
Total liabilities | 30,236 | 29,860 | ||||
Net Assets | ||||||
Shareholders' equity | ||||||
Capital stock | 11,635 | 11,635 | ||||
Capital surplus | 10,764 | 10,766 | ||||
Retained earnings | 79,619 | 82,618 | ||||
Treasury shares | (1,660) | (1,562) | ||||
Total shareholders' equity | 100,360 | 103,458 | ||||
Accumulated other comprehensive income | ||||||
Valuation difference on available-for-sale | 338 | 375 | ||||
securities | ||||||
Foreign currency translation adjustment | 4,030 | 7,357 | ||||
Remeasurements of defined benefit plans, net of | 4 | 5 | ||||
tax | ||||||
Total accumulated other comprehensive income | 4,373 | 7,738 | ||||
Share acquisition rights | 394 | 433 | ||||
Total net assets | 105,128 | 111,629 | ||||
Total liabilities and net assets | 135,364 | 141,490 | ||||
5
Shin-Etsu Polymer Co., Ltd. (7970) Financial Summary (For the six months ended September 30, 2023)
-
Consolidated Statements of Income and Consolidated Statement of Comprehensive Income Consolidated Statements of Income
Six months ended September 30
(Million yen)
Six months ended September 30, 2022 (April 1, 2022 to September 30, 2022)
Six months ended September 30, 2023 (April 1, 2023 to September 30, 2023)
Net sales | 52,549 | 53,456 | ||
Cost of sales | 35,671 | 37,658 | ||
Gross profit | 16,877 | 15,798 | ||
Selling, general and administrative expenses | 10,233 | 9,915 | ||
Operating profit | 6,643 | 5,883 | ||
Non-operating income | ||||
Interest income | 57 | 67 | ||
Foreign exchange gains | 624 | 298 | ||
Other | 77 | 202 | ||
Total non-operating income | 760 | 569 | ||
Non-operating expenses | ||||
Interest expenses | 12 | 17 | ||
Loss on retirement of non-current assets | 3 | 10 | ||
Disaster recovery expenses | - | 19 | ||
Other | 3 | 1 | ||
Total non-operating expenses | 19 | 49 | ||
Ordinary profit | 7,384 | 6,403 | ||
Extraordinary profit | ||||
Settlement income | - | 40 | ||
Gain on reversal of share acquisition rights | 2 | 35 | ||
Total extraordinary profit | 2 | 75 | ||
Extraordinary losses | ||||
Impairment loss | - | 62 | ||
Total extraordinary losses | - | 62 | ||
Profit before income taxes | 7,386 | 6,416 | ||
Income taxes - current | 2,158 | 1,774 | ||
Income taxes - deferred | 194 | 25 | ||
Total income taxes | 2,352 | 1,799 | ||
Profit | 5,033 | 4,617 | ||
Profit attributable to owners of parent | 5,033 | 4,617 | ||
6
Shin-Etsu Polymer Co., Ltd. (7970) Financial Summary (For the six months ended September 30, 2023)
Consolidated Statement of Comprehensive Income
Six months ended September 30
(Million yen)
Six months ended September 30, 2022 (April 1, 2022 to September 30, 2022)
Six months ended September 30, 2023 (April 1, 2023 to September 30, 2023)
Profit | 5,033 | 4,617 | |||||
Other comprehensive income | |||||||
Valuation difference on available-for-sale | 6 | 36 | |||||
securities | |||||||
Foreign currency translation adjustment | 6,165 | 3,326 | |||||
Remeasurements of defined benefit plans, net | 1 | 0 | |||||
of tax | |||||||
Total other comprehensive income | 6,174 | 3,364 | |||||
Comprehensive income | 11,207 | 7,981 | |||||
Comprehensive income attributable to | |||||||
Comprehensive income attributable to owners | 11,207 | 7,981 | |||||
of the parent | |||||||
7
Shin-Etsu Polymer Co., Ltd. (7970) Financial Summary (For the six months ended September 30, 2023)
(3) Consolidated Statement of Cash Flows
(Million yen) | |||||
Six months ended | Six months ended | ||||
September 30, 2022 | September 30, 2023 | ||||
(April 1, 2022 to | (April 1, 2023 to | ||||
September 30, 2022) | September 30, 2023) | ||||
Cash flows from operating activities | |||||
Profit before income taxes | 7,386 | 6,416 | |||
Depreciation and amortization | 1,731 | 2,123 | |||
Impairment loss | - | 62 | |||
Amortization of goodwill | 114 | 34 | |||
Interest and dividend income | (76) | (89) | |||
Interest expenses | 12 | 17 | |||
Foreign exchange losses (gains) | (159) | (96) | |||
Loss on retirement of non-current assets | 3 | 10 | |||
Disaster recovery expenses | - | 19 | |||
Settlement income | - | (40) | |||
Decrease (increase) in notes and accounts | (978) | 351 | |||
receivable - trade | |||||
Decrease (increase) in inventories | (2,221) | (52) | |||
Increase (decrease) in notes and accounts payable - | 360 | (303) | |||
trade | |||||
Increase (decrease) in net defined benefit liability | 0 | 3 | |||
Decrease (increase) in consumption taxes | (375) | 646 | |||
receivable/payable | |||||
Other, net | (165) | (559) | |||
Subtotal | 5,632 | 8,543 | |||
Interest and dividends income received | 61 | 75 | |||
Interest expenses paid | (13) | (18) | |||
Repayment (payment) of corporate taxes | (1,743) | (2,221) | |||
Net cash provided by (used in) operating activities | 3,937 | 6,378 | |||
Cash flows from investing activities | |||||
Decrease (increase) in time deposits | 394 | 752 | |||
Purchase of property, plant and equipment | (3,911) | (7,950) | |||
Proceeds from sales of investment securities | - | 115 | |||
Purchase of intangible assets | (502) | (304) | |||
Purchase of shares of subsidiaries | (22) | - | |||
Other, net | (165) | (60) | |||
Net cash provided by (used in) investing activities | (4,206) | (7,446) | |||
Cash flows from financing activities | |||||
Cash dividends paid | (1,126) | (1,617) | |||
Proceeds from sale of treasury shares | 116 | 97 | |||
Other, net | (93) | (167) | |||
Net cash provided by (used in) financing activities | (1,103) | (1,687) | |||
Effect of exchange rate change on cash and cash | 3,374 | 1,549 | |||
equivalents | |||||
Net increase (decrease) in cash and cash equivalents | 2,002 | (1,206) | |||
Cash and cash equivalents at beginning of period | 45,848 | 43,843 | |||
Cash and cash equivalents at end of period | 47,851 | 42,636 | |||
8
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Shin-Etsu Polymer Co. Ltd. published this content on 01 November 2023 and is solely responsible for the information contained therein. Distributed by Public, unedited and unaltered, on 01 November 2023 06:55:10 UTC.