Osaka Organic Chemical Industry : Consolidated Financial Results for the Second Quarter of the Fiscal Year Ending November 30, 2023（July 6, 2023 191KB）

Translation

Note: This document has been translated from the Japanese original for reference purposes only. In the event of any discrepancy between this translated document and the Japanese original, the original shall prevail.

Consolidated Financial Results for the Second Quarter of the

Fiscal Year Ending November 30, 2023 (FY11/23)

(Six Months Ended May 31, 2023)

[Japanese GAAP]

July 6, 2023

Company name:

OSAKA ORGANIC CHEMICAL INDUSTRY LTD.

Listing:

Tokyo Stock Exchange, Prime Market

Stock code:

4187

URL: https://www.ooc.co.jp/

Representative:

Masayuki Ando, Representative Director and CEO

Contact:

Soichi Honda, Director, Corporate Officer, General Manager of Administration Division

TEL: +81-6-6264-5071

Scheduled date of filing of Quarterly Report:

July 6, 2023

Scheduled date of dividend payment:

August 7, 2023

Preparation of supplementary materials for quarterly financial results:

Yes

Holding of quarterly financial results meeting:

Yes (for institutional and individual investors,

and securities analysts)

(All amounts are rounded down to the nearest million yen)

1.Consolidated Financial Results for the Second Quarter of FY11/22 (December 1, 2022 to May 31, 2023)

(1) Consolidated results of operations

(Percentages represent year-on-year changes)

Net sales

Operating profit

Ordinary profit

Profit attributable to

owners of parent

Millions of yen

Six months ended May 31, 2023

14,262

(11.7)

1,939

(41.6)

2,074

(41.2)

1,606

(34.4)

Six months ended May 31, 2022

16,144

3,320

16.8

3,526

14.3

2,448

9.0

Note: Comprehensive income (millions of yen)

Six months ended May 31, 2023:

1,924(down24.2%)

Six months ended May 31, 2022:

2,538(down2.7%)

Net income per share

Diluted net income per share

Yen

Six months ended May 31, 2023

74.75

Six months ended May 31, 2022

111.60

NOTE: "Accounting Standard for Revenue Recognition" (ASBJ Statement No. 29 March 31, 2020) has been applied since the beginning of the first quarter consolidated accounting period. Figures for the second quarter of the fiscal year ending November 30, 2022 are figures after the application of this accounting standard, and sales changes from the same period of the previous year are not stated.

(2)Consolidated financial position

Total assets

Net assets

Equity ratio

Millions of yen

As of May 31, 2023

53,117

42,129

78.2

As of Nov. 30, 2022

52,836

41,394

77.3

Reference: Shareholders' equity

(millions of yen)

of May 31, 2023: 41,528

As of Nov. 30, 2022:

40,826

2.Dividends

Dividend per share

1Q-end

2Q-end

3Q-end

Year-end

Total

Yen

Fiscal year ending Nov. 30, 2022

27.00

54.00

Fiscal year ending Nov. 30, 2023

28.00

Fiscal year ending Nov. 30, 2023

28.00

56.00

(Forecast)

Note: Revisions to the most recently announced dividend forecast: None

3.Consolidated Forecasts for FY11/23 (December 1, 2022 to November 30, 2023)

(Percentages represent year-on-year changes)

Net sales

Operating profit

Ordinary profit

Profit attributable to

Net income per

owners of parent

Millions of yen

Yen

Full year

29,000

(10.0)

3,800

(36.0)

4,000

(37.2)

2,800

(40.8)

129.85

Note: Revisions to the most recently announced consolidated forecast: None

※ Notes

(1)Changes of important subsidiaries during the period

None

(Changes in specified subsidiaries resulting in changes in the scope of consolidation)

Newly added: -

Excluded: -

(2)Application of special accounting methods for presenting quarterly consolidated financial statements: None

(3)Changes in accounting policies and accounting-based estimates, and restatements 1)Changes in accounting policies due to revisions in accounting standards, others: Yes

Note: For details, please refer to "2. Quarterly Consolidated Financial Statements and Notes; (4) Notes to Quarterly Consolidated Financial Statements (Changes in Accounting Policies)" on page 10 (Attachment) of this quarterly financial report.

(4)Number of shares issued (common shares)

Number of shares issued at the end of the period (including treasury shares)

As of May 31, 2023:

22,410,038 shares

As of Nov. 30, 2022:

22,410,038 shares

Number of treasury shares at the end of the period

As of Nov. 30, 2022:

847,478 shares

As of May 31, 2023:

1,142,498 shares

3) Average number of shares during the period

Six months ended May 31, 2023:

21,489,440 shares

Six months ended May 31, 2022:

21,943,278 shares

The above forecasts are based on information available to the Company's management at the time the materials were prepared and include a variety of uncertainties. Actual results may differ from the forecasts due to changes in the business environment and other factors. Please refer to "Explanation of Consolidated Forecast and Other Forward-looking Statements" on page 3 for items pertaining to the forecasts stated above.

OSAKA ORGANIC CHEMICAL INDUSTRY LTD. (4187) Financial Results for the Second Quarter of FY11/23

Contents of Attachments

1. Qualitative Information on Quarterly Consolidated Financial Performance

(1)

Explanation of Results of Operations

(2)

Explanation of Financial Position

(3)

Explanation of Consolidated Forecast and Other Forward-looking Statements

2. Quarterly Consolidated Financial Statements and Notes

(1)

Quarterly Consolidated Balance Sheet

(2)

Quarterly Consolidated Statements of Income and Comprehensive Income

(3)

Quarterly Consolidated Statement of Cash Flows

(4)

Notes to Quarterly Consolidated Financial Statements

Going Concern Assumption

Significant Changes in Shareholders' Equity

Changes in Accounting Policies

Segment and Other Information

Significant Subsequent Events

OSAKA ORGANIC CHEMICAL INDUSTRY LTD. (4187) Financial Results for the Second Quarter of FY11/23

1.Qualitative Information on Quarterly Consolidated Financial Performance

(1)Explanation of Results of Operations

In the consolidated cumulative second quarter of the current fiscal year, the Japanese economy showed signs of resumption in economic activity due to the relaxation of behavioral restrictions caused by a new type of coronavirus infectious disease. On the other hand, the outlook remains uncertain due to such factors as soaring resource and energy prices associated with the long-term situation in Russia and Ukraine, global price increases, and rapid exchange rate fluctuations resulting from monetary tightening in each country.

The Osaka Organic Chemical Industry Group started its Second Five-yearMedium-term Business Plan in the fiscal year that ended in November 2020. This plan is the second half of Next Stage 10, a long-term business plan covering the 10-year period that began with the fiscal year that ended in November 2015. Many activities are under way to accomplish the goals of this plan. In the chemical products business, we are focusing on improving profitability by concentrating investments on carefully selected categories in order to revitalize the product lineup. Another priority is increasing sales of raw materials for specialty ink for UV inkjet printers as the market for these printers grows worldwide. In the electronics materials business, we are strengthening activities for developing next-generation semiconductor materials to be the market leader in targeted categories and for increasing sales of new display materials. In the specialty chemicals business, there are measures to develop functional polymers and increase sales of raw materials for cosmetics and of high-purity specialty solvents. However, it is affected by sluggish demand for electronic materials such as displays and semiconductors.

As a result, net sales for the second quarter of the current fiscal year were ¥14,262 million (down 11.7% year on year), operating income was ¥1,939 million (down 41.6% year on year), ordinary profit was ¥2,074 million (down 41.2% year on year), and profit attributable to owners of parent was ¥1,606 million (down 34.4% year on year).

Business results by segment are explained below (excluding inter-segment transactions) 1)Chemical products

Regarding acrylic acid ester, while sales of esters used in automotive coatings remained firm, sales of esters used in display adhesives and chemical products used in UV inkjet printers were sluggish. Sales of methacrylic acid esters decreased significantly. As a result, net sales ¥4,580 million (down 19.0% year on year) and segment profit was ¥318 million (down 42.7% year on year).

2)Electronics materials

In the electronic materials business, the Semiconductor Materials Group recorded strong sales of raw materials for state-of-the-art EUV resists. However, sales of raw materials for ArF resists, the mainstay of the Group, remained flat due to weak demand in the end-market. As for display materials, sales remained weak due to sluggish demand for displays. As a result, net sales stood at ¥6,566 million (down 12.9% year on year) and segment profit was ¥1,061 million (down 48.7% year on year).

3)Specialty chemicals

Raw materials for cosmetics recorded strong sales abroad. As for functional materials, sales of products made for other companies remained weak. High-purity specialty solvents produced by a subsidiary recorded robust sales. As a result, net sales were ¥3,115 million (up 5.6% year on year) and segment profit was ¥563 million (down 18.6% year on year).

(2)Explanation of Financial Position

Total assets at the end of the second quarter of the current fiscal year increased by ¥280 million from the end of the previous fiscal year to ¥53,117 million. This was mainly attributable to a decrease of ¥1,041 million in cash and deposits, a decrease of ¥1,123 million in notes receivable, accounts receivable and contract assets, an increase of ¥312 million in products, an increase of ¥363 million in work in process, an increase of ¥645 million in machinery, equipment and vehicles, an increase of ¥735 million in construction in progress, and an increase of ¥406 million in investment securities.

Liabilities at the end of the second quarter of the current fiscal year decreased by ¥454 million from the end of the previous fiscal year to ¥10,988 million yen. This was mainly due to a decrease of ¥638 million in notes and accounts payable-trade, an increase of ¥1,214 million in accounts payable-other, a decrease of ¥282 million in income taxes payable, and a decrease of ¥804 million in long-term loans payable.

Net assets at the end of the second quarter of the current fiscal year increased by ¥734 million from the end of the previous

OSAKA ORGANIC CHEMICAL INDUSTRY LTD. (4187) Financial Results for the Second Quarter of FY11/23

fiscal year to ¥42,129 million. This was mainly due to an increase of ¥1,024 million in retained earnings, an increase of ¥586 million in treasury stock, and an increase of ¥250 million in net unrealized holding gains on securities.

Cash Flows

Cash and cash equivalents at the end of the second quarter of the current fiscal year decreased by ¥1,041 million from the end of the previous fiscal year to ¥7,022 million.

Net cash provided by operating activities increased by ¥2,020 million compared with ¥2,814 million in the same quarter of the previous fiscal year. This was mainly attributable to quarterly income before income taxes and minority interests of ¥2,322 million, depreciation and amortization of ¥1,018 million, and income taxes paid of ¥1,002 million.

Net cash used in investing activities was ¥990 million, compared with ¥702 million in the same quarter of the previous fiscal year. This was mainly due to purchase of property, plant and equipment of ¥1,175 million and proceeds from sales of investment securities of ¥294 million.

Net cash used in financing activities was ¥2,074 million yen, compared with ¥1,973 million yen in the same quarter of the previous fiscal year. This was mainly due to repayments of long-term loans payable of ¥899 million, purchase of treasury stock of ¥601 million, and cash dividends paid of ¥582 million.

(3)Explanation of Consolidated Forecast and Other Forward-looking Statements

The consolidated forecasts announced on April 7, 2023 remain unchanged.

Attachments

Disclaimer

Osaka Organic Chemical Industry Ltd. published this content on 31 July 2023 and is solely responsible for the information contained therein. Distributed by Public, unedited and unaltered, on 31 July 2023 06:37:19 UTC.

AttachmentsDisclaimerOsaka Organic Chemical Industry Ltd.31 July 202331 July 2023 06:37:19 UTC