NGK Q1 Report 2022

As a result, net sales in the three months ended June 30, 2022 increased 1.7% year-on-year to ¥131,000 million, due to the positive effect of the depreciation of the yen and an increase in sales of semiconductor manufacturing equipment products. With regard to profits, operating income decreased 12.7% year on year to ¥20,635 million due to the impact of rising labor costs and soaring raw material and fuel prices, mainly in the Environment Business, despite the positive effect of the depreciation of the yen. Ordinary income decreased 10.6% year on year to ¥20,669 million. Quarterly net income attributable to owners of the parent increased 11.1% year on year to ¥17,963 million, mainly due to the completion of tax audits and the reversal of the estimated amount recorded.

By segment, net sales decreased 5.7% year on year in the Environment Business to ¥73,293 million, and operating income decreased 26.0% year on year to ¥14,173 million. In the Digital Society Business, net sales increased 23.5% year on year to ¥43,312 million. Operating income increased 48.7% year on year to ¥7,157 million. In the Energy & Industry Business, net sales decreased 9.2% year on year to ¥15,004 billion and operating loss was ¥710 million (operating loss of ¥339 million in the same period of the previous fiscal year).

Effective from the first quarter of the current fiscal year, the reportable segments, which were the Energy Infrastructure Business, Ceramics Business, Electronics Business, and Process Technology Business, were changed to the Environment Business, Digital Society Business, and Energy & Industry Business due to the organizational change. Year-on-year figures for each segment were calculated after adjusting the figures for the same period of the previous fiscal year to the revised segment classification.