On May 26, 2022 Nippon Kayaku reported (Press release, Nippon Kayaku, MAY 26, 2022, View Source net/doc/4272/ir_material_for_fiscal_ym8/118573/00.pdf [SID1234615059])
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1. Consolidated Business Results for the Fiscal Year Ended March 31, 2022 (April 1, 2021–March 31, 2022) (Figures shown are rounded down to the nearest million yen.)
(1) Consolidated Operating Results
(2) Consolidated Financial Position
(3) Status of Consolidated Cash Flows
3. Consolidated Business Results Forecasts for the Fiscal Year Ending March 31, 2023 (April 1, 2022– March 31, 2023)
1. Non-consolidated Business Results for the Fiscal Year Ended March 31, 2022 (April 1, 2021–March 31, 2022)
(1) Non-consolidated Operating Result
1. Overview of Operating Results, Financial Position, and Future Outlook
(1) Overview of Operating Results for the Fiscal Year Ended March 31, 2022 In this fiscal year (April 1, 2021 to March 31, 2022), the global economy saw economic activity begin to return to normal and signs of economic recovery, due in part to progress on vaccinations for the novel coronavirus (COVID-19).
However, the impacts of the semiconductor shortage and the automobile industry production cuts, caused by difficulty in procuring parts during the COVID-19 pandemic in Southeast Asia, were exacerbated in Japan and overseas. In the functional chemicals business, the need for semiconductor materials is increasing as rapid advances in digital technology lead to higher performance high-speed (5G) communications devices and other digital equipment, and increasingly sophisticated electronic equipment in vehicles.
The global trends in energy and resource conservation are also creating demand for development of new environmentally friendly materials and recycling technology. In the pharmaceuticals industry, we contribute to extending the healthy lifespan of people in Japan through innovative drug development while ensuring a stable supply of high quality pharmaceuticals. We must do this to pass on a society to the next generation where all people in Japan can be assured of receiving quality medical care. Nippon Kayaku must swiftly and consistently engage in pharmaceutical research, development, manufacturing, and supply to meet these expectations. The automotive industry saw a rebound from the slump in global demand caused by the global spread of the novel coronavirus, with the exception of a few regions. However, the pace of overall automobile production decelerated from the second quarter into the third quarter, owing to the impact of the semiconductor shortage. It is still unclear when the pandemic will end and the failure to resolve the global shortage of parts has also slowed the speed of recovery in automobile production subsequently.
Amid these conditions, the Nippon Kayaku Group worked to implement the key themes and resolve the mid-and long-term key issues outlined in "KAYAKU Next Stage," the mid-term business plan launched in the fiscal year ended March 31, 2020, while also making active use of flextime, telecommuting, and other systems to accommodate the restrictions on corporate activity. We took these steps to ensure the safety of employees working in the Company and at Group companies while also promoting efficient workstyles aimed at minimizing the impact on our business. As a result, consolidated net sales for the fiscal year ended March 31, 2022 totaled 184,805 million yen, an increase of 11,423 million yen (6.6%) year-on-year. Sales outperformed the previous fiscal year in all of the businesses. Consolidated operating income totaled 21,050 million yen, an increase of 5,856 million yen (38.5%) year-on-year, outperforming the previous fiscal year in all businesses. Consolidated ordinary income totaled 23,154 million yen, an increase of 6,615 million yen (40.0%) year-on-year, owing to foreign exchange gains.
Profit attributable to owners of parent was 17,181 million yen, an increase of 4,607 million yen (36.6%) year-on-year. Regarding changes in accounting policies, the Company implemented the Accounting Standard for Revenue Recognition (ASBJ Statement No. 29, revised March 31, 2020) and other guidance from the beginning of this consolidated fiscal year. We have therefore used numbers based on calculation methods subject to different standards than in the previous fiscal year. See 3. Consolidated Financial Statements and Notes to Consolidated Financial Statements, (5) Notes to Consolidated Financial Statements (Changes to Accounting Policies) for further details.