Latest Financial Results and Full Year Forecast
Consolidated Financial Results for the First Half of the Year Ended September 30, 2021
In the six-month period ended September 30, 2021, economic recovery was seen in certain regions amid a global decline in the number of COVID-19 cases. Governments in the United States and Europe are transitioning away from large-scale government finance measures for responding to the pandemic and toward policies based on a longer-term perspective. Conversely, certain emerging countries are moving to raise their policy interest rates. This situation is creating a need for ongoing monitoring of economic trends.
The Company’s revenue for the six-month period ended September 30, 2021, was up year on year due to higher revenue in the Metals, Mineral Resources & Recycling Division, a result of higher prices for coal and precious metals; in the Chemicals Division, a result of growth in plastic resin transactions and higher methanol prices; and in the Automotive Division, a result of increased sales volumes in overseas automotive businesses.
Despite the increase in SG&A expenses along with a rise in non-personnel expenses, profit for the period (attributable to owners of the Company) increased year on year following higher gross profit and a rise in share of profit of investments accounted for using the equity method attributable to earnings growth at a steel operating company.
moreFinancial Results Materials
(BN JPY)
| FY2020 H1 | FY2021 H1 | Difference | ||
|---|---|---|---|---|
| Revenue | 744.6 | 1,000.7 | +256.1 |  |
| Gross profit | 84.5 | 117.7 | +33.2 | |
| Profit for the period attributable to owners of the Company | 9.1 | 39.4 | +30.3 | |
Changes of Yearly Financial Results (Cumulative)
Trends in Financial Data（EXCEL）
Segment Performance (Profit for the period attributable to owners of the Company)
![Segment Performance [Profit for the Period (Attributable to owners of the Company)]](img/img02e_211102.png)
(BN JPY)
| FY2020 H1 | FY2021 H1 | Difference | |
|---|---|---|---|
| Automotive | (1.5) | 3.4 | +4.9 |
| Aerospace & Transportation Project | (0.3) | 1.4 | +1.7 |
| Infrastructure & Healthcare | 2.6 | 1.2 | (1.4) |
| Metals, Mineral Resources & Recycling | (2.0) | 16.2 | +18.2 |
| Chemicals | 1.3 | 6.8 | +5.5 |
| Consumer Industry & Agriculture Business | 4.0 | 4.8 | +0.8 |
| Retail & Consumer Service | 2.7 | 1.9 | (0.8) |
| Others | 2.3 | 3.7 | +1.4 |
Main factors behind the difference
- ■Automotive ¥3.4 billion (up ¥4.9 bn YoY)
- Increased due to higher sales volumes in overseas automobile operations
- ■Aerospace & Transportation Project ¥1.4 billion (up ¥1.7 bn YoY)
- Increased due to higher transaction volumes in aircraft- and marine vessel-related businesses
- ■Infrastructure & Healthcare ¥1.2 billion (down ¥(1.4) bn YoY)
- Decreased due to absence of gains from assets replacement in power generation businesses recorded in the previous equivalent period
- ■Metals, Mineral Resources & Recycling ¥16.2 billion (up ¥18.2 bn YoY)
- Increased due to higher profit from steel operating company thanks to increased steel demand as well as higher profit from recovery of coal market conditions
- ■Chemicals ¥6.8 billion (up ¥5.5 bn YoY)
- Increased due to recovery of methanol prices and higher transaction volumes of plastic resin
- ■Consumer Industry & Agriculture Business ¥4.8 billion (up ¥0.8 bn YoY)
- Increased due to rise in market conditions of imported plywood
- ■Retail & Consumer Service ¥1.9 billion (down ¥(0.8) bn YoY)
- Decreased, despite higher sales volumes of food-related company, due to absence of gains from sale of shopping mall recorded in the previous equivalent period
- ■Others ¥3.7 billion (up ¥1.4 bn YoY)
Commodity Prices and Exchange Rates
| FY20 Results (Apr.-Sep.'20 Avg.) |
FY21 Assumption (Annual Avg.) |
FY21 Results (Apr.-Sep.'21 Avg.) |
Latest Data (As of Oct. 27, 2021) |
FY21 Revised Assumption for Second Half of the Year (Nov. 2, 2021) |
|
|---|---|---|---|---|---|
| Coking coal *1 |
US$117.4 / t | US$ 127.5 / t | US$199.5 / t | US＄398.0 / t | US$200.0 / t |
| Thermal coal *1 |
US$53.1 / t | US$ 80.0 / t | US$138.3 / t | US＄195.2 / t | US$110.0 / t |
| Crude oil (Brent) | US$36.7 /bbl | US$50.0 /bbl | US$71.2 /bbl | US$84.6 /bbl | US$60.0 / bbl *2 |
| Exchange rate *3 |
¥106.3 / US$ | ¥108.0 / US$ | ¥110.1 / US$ | ¥114.1 / US$ | ¥108.0 / US$ |
-
*1 : Coal prices are based on standard market prices and therefore differ from the Company’s selling prices.
-
*2 : Assumption of crude oil (brent) for the second half of FY2021 incorporates mainly hedged prices.
-
*3 : Impact of fluctuations in the exchange rate on earnings: ¥1/US$ change alters gross profit by approx. ¥ 0.5 billion annually, profit for the year (attributable to owners of the Company) by approx. ¥0.25 billion annually, and total equity by approx. ¥1.5 billion annually.
Full Year Forecast of the Fiscal Year Ending March 31, 2022
(BN JPY)
| FY2020 Results |
FY2021 Revised Forecast (Nov.2,2021) |
Difference |
|
|---|---|---|---|
| Gross profit | 188.1 | 240.0 | +51.9 |
Profit for the year attributable to owners of the Company |
27.0 | 70.0 | +43.0 |
FY2021 Profit for the Year Forecast by Segment
Caution regarding Forward-looking Statements
This document contains forward-looking statements based on information available to the Company at the time of disclosure and certain assumptions that management believes to be reasonable. Actual results may differ materially based on various factors including the timing at which the COVID-19 pandemic ends; changes in economic conditions in key markets, both in and outside of Japan; and exchange rate movements. The Company will provide timely disclosure of any material changes, events, or other relevant issues.
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