NGK Half-Year Report 2023

As a result, net sales in the six months ended September 30, 2023, increased 3.0% year-on-year to ¥282,884 million, due to the positive effect of the depreciation of the yen and an increase in sales of the automotive-related products, despite a decrease shipment of components for semiconductor manufacturing equipment. With regard to profits, operating income decreased 16.3% year on year to ¥32,485 million due to a decrease shipment of components for semiconductor manufacturing equipment and the impact of rising labor costs and others despite increase shipments of the automotive-related products. Ordinary income decreased 16.2% year on year to ¥28,940 million. Quarterly net income attributable to owners of the parent decreased 31.4% year on year to ¥18,181 million due to a decline in ordinary income and recorded the income taxes for prior periods in the same period of the
previous fiscal year.

By segment, net sales increased 17.5% year on year in the Environment Business to ¥179,849 million, and operating income increased 23.0% year on year to ¥32,246 million. In the Digital Society Business, net sales decreased 25.0% year on year to ¥66,083 million. Operating income decreased 94.6% year on year to ¥735 million. In the Energy & Industry Business, net sales increased 9.9% year on year to ¥38,014 million and operating loss was ¥506 million (operating loss of ¥1,089 million in the same
period of the previous fiscal year).