NGK Q1 Report 2023

net sales in the three months ended June 30, 2023, increased 7.9% year-on-year to ¥141,331 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 10.1% year on year to ¥18,561 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 22.0% year on year to ¥16,124 million due to a decline in operating income and recorded the foreign exchange losses in overseas related companies. Quarterly net income attributable to owners of the parent decreased 33.2% year on year to ¥12,005 million, due to recorded the income taxes for prior periods in the same period of the previous fiscal year and a decline in ordinary income.

By segment, net sales increased 22.3% year on year in the Environment Business to ¥89,658 million, and operating income increased 13.8% year on year to ¥16,131 million. In the Digital Society Business, net sales decreased 22.7% year on year to ¥33,496 million. Operating income decreased 87.2% year on year to ¥918 million. In the Energy & Industry Business, net sales increased 24.1% year on year to ¥18,624 million and operating income was ¥1,504 million (operating loss of ¥710 million in the same period of the previous fiscal year).