First Quarter Financial Results Ended June 30, 2014

Transcription

1 First Quarter Financial Results Ended June 30, 2014 For the Fiscal Year Ending March 31, 2015 [JGAAP] (Non-Consolidated) July 25, 2014 JAPAN PURE CHEMICAL CO., LTD. Code No. URL Stock Exchange Listed Corporate Headquarters Representative Investor Relations Scheduled Date of Filing Quarterly Securities Report Beginning of Dividend Payment Availability of Supplementary Briefing Material on Quarterly Results Schedule of Quarterly Results Briefing Session : 4973 : : Tokyo Stock Exchange-First Section : Kitamachi, Nerima-ku, Tokyo Japan : Shigeki Shimizu, President : Kaoru Uchida, Director, Corporate Administration, Corporate Planning Division /Tel : August 7, 2014 : - : Available : Not Scheduled 1. Financial Results for the Fiscal 2015 First Quarter (April 1, 2014 June 30, 2014) (1) Results of Operations Three months ended June 30, 2014 Three months ended June 30, ,339 2,502 (Amounts less than one million yen have been disregarded) (Percentages represent year on year changes over the same period last year) Sales Operating Income Ordinary Income Net Income (6.5) (5.3) (14.2) (12.4) (21.5) Net Income Per Share Diluted Net Income Per Share Three months ended June 30, 2014 Three months ended June 30, (Note) The Company executed a 100-for-1 stock split with respect to its ordinary effective April 1, Net income per share and diluted net income per share were thus calculated assuming that said stock split had taken place at the beginning of the previous fiscal year. (2) Financial Condition June 30, 2014 March 31, 2014 Total Assets Net Assets Equity Ratio 9,131 8,790 7,797 7,606 (Reference) Equity June 30, 2014: 7,779million yen March 31, 2014: 7,578 million yen

2 2. Dividend Positions Year ended March 31, 2014 Annual Dividend Per Share June 30 Sept. 30 Dec. 31 Year-End Total - Year ending March 31, Year ending March 31, 2015 (Forecast) 4, , , (Note) Revision of dividend projection from recently announced figures: No (Note) The Company executed a 100-for-1 stock split with respect to its ordinary effective April 1, Said stock split has been taken into consideration upon describing the amount of the annual dividend per share for the year ending March 31, 2015 (forecast). 3. Financial Forecasts for the Fiscal Year Ending March 31, 2015 (April 1, 2014 March 31, 2015) (Percentages represent year on year changes over the same period last year) Sales Operating Income Ordinary Income Net Income Net Income Per Share Six months ending September 30, 2014 Year ending March 31, ,400 9,000 (12.2) (2.1) (26.7) (11.4) (26.7) (12.2) (26.3) (12.0) (Note) Revision of financial forecast from recently announced figures: No Matters of Note (1) Adoption of accounting policies specific to the preparation of quarterly financial statements: No (2) Changes in significant accounting policies 1. Changes associated with changes in accounting standards: No 2. Any changes other than 1. above: No 3. Changes in accounting estimates: No 4. Restatements: No (3) Number of outstanding (Ordinary ) 1. Number of outstanding at the end of term (including treasury stocks) 2. Number of treasury stocks at the end of term 3. Average number of during the period June 30, ,317,200 June 30, ,700 June 30, ,822,500 March 31, ,317,200 March 31, ,700 June 30, ,891,800 (Note) The Company executed a 100-for-1 stock split with respect to its ordinary effective April 1, The number of outstanding (ordinary ) was thus calculated assuming that said stock split had taken place at the beginning of the previous fiscal year.

3 Remarks Presentation Regarding the Implementation Status of the Quarterly Review These quarterly financial results are prepared outside the quarterly review required under the Financial Instruments and Exchange Act. As such, the quarterly review on the quarterly financial statements has been in practice at the time of the disclosure of these quarterly financial results. Notes Regarding Financial Forecast While statements in these reports regarding the next fiscal year and other future events are evaluations made based upon the information available at the time these reports were prepared and believed to be reasonable, they contain risk items and uncertainties. Accordingly actual results may vary significantly from the forecast results stated here for a number of factors.

4 Table of Contents of Appendix 1. Qualitative Information on Quarterly Financial Statements 2 (1) Operations Explanation 2 (2) Financial Position Explanation 2 2. Financial Statements, etc. 3 (1) Balance Sheet 3 (2) Quarterly Profit & Loss Statement 4 (3) Notes on Financial Statements, etc. 5 (Notes on Going Concern Assumption) 5 (Notes in Case of Large Changes in Shareholders Equity) 5 1

5 1. Qualitative Information on Quarterly Financial Statements (1) Operations Explanation A summary of the Company operating results for the first quarter of the fiscal year under review is as follows. In the electronic components industry, many companies engage in the construction and adjustments of new production lines as well as the trial production and testing of new products, in preparation for the full-scale production of new model smartphones which will commence in this fall. The Company reported growth in the sales of electroless gold plating chemicals for thin coating for the motherboards of new model smartphones and hard gold jet plating chemicals for micro-connectors, and expects further growth in the following fiscal years. Meanwhile, demand for PCs, which had been declining due to the growing demand for smartphones, increased as PCs for office use and cloud servers were updated in conjunction with the introduction of new OS. Consequently, sales of pure gold plating chemicals for semiconductor packages and hard gold plating chemicals for rigid and flexible substrates increased mainly overseas after a long time. As a result, the Company recorded sales of 2,339,437 thousand, which decreased by 6.5% year-on-year, operating income of 315,399 thousand, an increase of 37.3% year-on-year, ordinary income of 343,833 thousand, up 36.1% year-on-year, and net income of 240,878 thousand, which increased by 33.1% year-on-year. In conjunction with the conclusion of the exercise period for stock options, the Company posted a gain on reversal of subscription rights to of 11,107 thousand as an extraordinary income. The breakdown of sales by final products was 715,589 thousand from printed circuit boards and semiconductor substrates, 545,180 thousand from connectors and micro-switches, 902,367 thousand from lead frames and 176,299 thousand from others. (2) Financial Position Explanation (Assets) Current assets were 5,723,458 thousand, an increase of 42,423 thousand from the end of the previous fiscal year. This increase was primarily due to an increase of 411,448 thousand in accounts receivable-trade, offsetting a decrease of 298,455 thousand in cash and deposits, and a decrease of 40,677 thousand in consumption taxes receivable. Noncurrent assets were 3,408,009 thousand, an increase of 298,063 thousand from the end of the previous fiscal year. This increase was primarily attributable to an increase of 299,236 thousand in investment securities. As a result, total assets were 9,131,467 thousand, an increase of 340,487 thousand from the end of the previous fiscal year. (Liabilities) Current liabilities were 573,548 thousand, an increase of 43,291 thousand from the end of the previous fiscal year. This increase was primarily attributable to an increase of 90,823 thousand in accounts payable-trade and an increase of 38,913 thousand in deposits received, offsetting a decrease of 74,037 thousand in income taxes payable. Noncurrent liabilities were 760,226 thousand, an increase of 106,393 thousand from the end of the previous fiscal year. This increase was primarily attributable to an increase of 106,495 thousand in deferred tax liabilities, as well as a decrease of 286,080 thousand in provision for directors retirement benefits in conjunction with the abolishment of directors retirement benefits, and an increase of 285,882 thousand in long-term accounts payable-other. As a result, total liabilities were 1,333,775 thousand, an increase of 149,684 thousand from the end of the previous fiscal year. (Net assets) Total net assets were 7,797,692 thousand, an increase of 190,802 thousand from the end of the previous fiscal year. This was primarily attributable to an increase of 192,588 thousand in valuation difference on available-for-sale securities. 2

6 2. Financial Statements, etc. (1) Balance Sheet Previous Fiscal Period (March 31, 2014) (unit: thousands of yen) Current First Quarter (June 30, 2014) Assets Current assets Cash and deposits 4,198,553 3,900,098 Notes and accounts receivable trade 1,120,627 1,524,672 Merchandise and finished goods 67, ,722 Raw materials and supplies 187, ,065 Other 106,947 54,899 Total current assets 5,681,034 5,723,458 Noncurrent assets Property, plant and equipment 124, ,063 Intangible assets 47,268 46,348 Investments and other assets Investment securities 2,897,497 3,199,850 Other 40,953 40,746 Total investments and other assets 2,938,451 3,240,597 Total noncurrent assets 3,109,945 3,408,009 Total assets 8,790,980 9,131,467 Liabilities Current liabilities Accounts payable trade 241, ,184 Income taxes payable 170,941 96,904 Provision for bonuses 54,250 27,000 Other 63, ,460 Total current liabilities 530, ,548 Noncurrent liabilities Long-term accounts payable - other - 285,882 Deferred tax liabilities 329, ,716 Asset retirement obligations 38,532 38,628 Provision for directors retirement benefits 286,080 - Total noncurrent liabilities 653, ,226 Total liabilities 1,184,090 1,333,775 Net Assets Shareholders equity Capital stock 1,283,196 1,283,196 Capital surplus 1,026,909 1,026,909 Retained earnings 5,612,357 5,620,335 Treasury stock (1,178,573) (1,178,573) Total shareholders equity 6,743,890 6,751,868 Valuation and translation adjustments Valuation difference on available-for-sale securities 834,974 1,027,563 Total valuation and translation adjustments 834,974 1,027,563 Subscription rights to 28,024 18,260 Total net assets 7,606,889 7,797,692 Total liabilities and net assets 8,790,980 9,131,467 3

7 (2) Quarterly Profit & Loss Statement Previous First Quarter (April 1, 2013 June 30, 2013) (unit: thousands of yen) Current First Quarter (April 1, 2014 June 30, 2014) Sales 2,502,252 2,339,437 Cost of sales 2,022,934 1,791,439 Gross profit 479, ,997 Selling, general and administrative expenses 249, ,598 Operating income 229, ,399 Non-operating income Interest income Dividends income 19,571 27,874 Other 4, Total non-operating income 23,634 28,513 Non-operating expenses Foreign exchange losses - 74 Commission for purchase of treasury stock Other - 4 Total non-operating expenses Ordinary income 252, ,833 Extraordinary income Gain on sales of noncurrent assets Gain on reversal of subscription rights to 18,025 11,107 Total extraordinary income 18,025 11,453 Extraordinary loss Loss on valuation of investment securities 4,656 - Total extraordinary loss 4,656 - Income before income taxes 265, ,287 Income taxes current 62,437 98,516 Income taxes deferred 22,596 15,893 Total income taxes 85, ,409 Net income 180, ,878 4

8 (3) Notes on Financial Statements, etc. (Notes on Going Concern Assumption) Not applicable. (Notes in Case of Large Changes in Shareholders Equity) Not applicable. 5