Komori
Earnings presentation5237NOZAWA CORPORATIONConstruction and Materials

Supplementary Explanatory Materials for the Second Quarter (Interim Period) of the Fiscal Year Ending March 2027

First-half results showed lower revenue and profit year on year, and the company lowered its full-year forecasts in light of sluggish construction demand and higher raw material and energy prices. Full-year revenue was reduced to ¥22.0 billion, operating profit to ¥1.46 billion, and ordinary profit to ¥1.63 billion.

Worth reading
58In focus
0–100. This measures how worthwhile something is to read, not how good or bad the company is.
Direction
Deterioration
Direction inferred from the company’s description.
Scale
-710
¥ millions (versus the forecast announced on 15 May for operating profit)
Wording
Conditional
How definitive the wording is.

Contents of this document

Earnings presentationSecond quarter (interim period) of the fiscal year ending March 202710 items taken from the company’s own explanation
Financial Results Figures (The key points of this material are explained below)
Net Sales11,332 Millions of yen-2.1%
Operating profit751 Millions of yen-32.7%
Ordinary income865 Millions of yen-28.6%
Net income¥334 million -26.2%interim net income attributable to owners of the parent
Gross Profit Margin27.5
Operating profit margin6.6
Selling, general and administrative expenses2,365 Millions of yen
Full-year earnings forecast
Net Sales
22,000 Millions of yen
Operating profit
1,460 Millions of yen
Ordinary income
1,630 Millions of yen
Profit attributable to owners of the parent
800 Millions of yen
Progress against full-year forecast　通期の予想に対して、いまどこまで進んだかの割合です。
Net SalesFirst-half results achieved 101.2% of the forecast announced on 15 May, as stated in the materials
Operating profit82.6%
Ordinary income81.6%
Interim net income attributable to owners of the parent48.5%
What the company explained in this material
Breakdown of Factors Affecting the ChangeReasons cited by the Company for the change in the figures.
  • Declining sales volumes-63 Millions of yen
  • Higher selling prices3 Millions of yen
  • Higher profits from construction work1 Millions of yen
  • Higher manufacturing costs-93 Millions of yen
  • Other (gross profit)-42 Millions of yen
  • Increase in personnel expenses-27 Millions of yen
  • Increase in overhead expenses-142 Millions of yen
  • Increase in interest and dividend income13 Millions of yen
  • Other (non-operating income and expenses)3 Millions of yen
Assumptions Underlying the Business OutlookThe assumptions used by the company in preparing its forecast.
Qualitative assumptions concerning labor shortages, construction costs, interest rates, raw material and energy prices, paint prices and logistics costs. Numerical assumptions: Not disclosed.
New initiatives
  • Launch of the painting works business for the on-site painting method “Milfia”
  • Full-scale sales launch of the solar panel installation method using ASLOC rail fasteners
  • Launch of the ASLOC design panel “Ref Diamond”
  • Complete renovation of the head office showroom
  • Launch of a new website for individual investors
Key KPIsA metric the company considers important as a management benchmark.
  • Sales volume of products with multicolor paint finishes130 % year on year
    Year on year against the same period last year+130.0%
  • Sumihada product sales volume417 % year on year
    Year on year against the same period last year+417.0%
  • Naturale product sales volume16 Year-on-year increase %
    Year on year against the same period last year+16.0%
  • Manufacturing costs-3.6 % year on year
    Year on year against the same period last year-3.6%
  • Interim return on equity (ROE)1.5 %
  • Equity ratio71 %
Unit price and quantity metricsThese figures show sales broken down by price and volume.
The materials include information on sales volume and selling prices. Sales volume increased or decreased by product, while selling prices were described as having increased.
Segment results
  • ASLOC
    Net Sales5,647
  • High-sound-insulation flooring materials for residential use and lightweight exterior wall materials for residential use
    Net Sales3,293
  • Slate board
    Net Sales485
  • Construction
Medium-term management plan targets
The materials describe progress in executing the medium-term management plan “NOZAWA NEXT3.” Numerical targets: Not disclosed.
Financial targets
The materials state actual ROE of 1.5% and an equity ratio of 71.0%. Financial targets: Not disclosed.
Market Size / Share
Approximately 70% of ASLOC shipments are painted on site, of which approximately 210,000 m² are multicolor-painted.
Annual Dividend
No change to the dividend forecast. The amount and breakdown between the interim and fiscal year-end dividends: Not disclosed.
Contents of this document
ItemDetails
Document typeEarnings presentation
Fiscal Period CoveredSecond quarter (interim period) of the fiscal year ending March 2027
Net Sales11,332 Millions of yen (YoY -2.1%)
Operating profit751 Millions of yen (YoY -32.7%)
Ordinary income865 Millions of yen (YoY -28.6%)
Net income¥334 million (interim net income attributable to owners of the parent) (YoY -26.2%)
Gross Profit Margin27.5
Operating profit margin6.6
Selling, general and administrative expenses2,365 Millions of yen
Full-year earnings forecastNet Sales 22,000 Millions of yen / Operating profit 1,460 Millions of yen / Ordinary income 1,630 Millions of yen / Profit attributable to owners of the parent 800 Millions of yen
Progress against full-year forecastNet Sales First-half results achieved 101.2% of the forecast announced on 15 May, as stated in the materials / Operating profit 82.6% / Ordinary income 81.6% / Interim net income attributable to owners of the parent 48.5%
Segment resultsCategory ASLOC / Net Sales 5,647 Millions of yen / yoy_pct 7.7 Millions of yen, Category High-sound-insulation flooring materials for residential use and lightweight exterior wall materials for residential use / Net Sales 3,293 Millions of yen / yoy_pct -14.4 Millions of yen, Category Slate board / Net Sales 485 Millions of yen / yoy_pct 8.9 Millions of yen, Category Construction / Net Sales Not disclosed / yoy_pct Not disclosed
Breakdown of Factors Affecting the ChangeFactors Declining sales volumes / Amount -63 Millions of yen, Factors Higher selling prices / Amount 3 Millions of yen, Factors Higher profits from construction work / Amount 1 Millions of yen, Factors Higher manufacturing costs / Amount -93 Millions of yen, Factors Other (gross profit) / Amount -42 Millions of yen, Factors Increase in personnel expenses / Amount -27 Millions of yen, Factors Increase in overhead expenses / Amount -142 Millions of yen, Factors Increase in interest and dividend income / Amount 13 Millions of yen, Factors Other (non-operating income and expenses) / Amount 3 Millions of yen
Key KPIsIndicator Sales volume of products with multicolor paint finishes / Value 130 % year on year / Year on year against the same period last year 130 % year on year, Indicator Sumihada product sales volume / Value 417 % year on year / Year on year against the same period last year 417 % year on year, Indicator Naturale product sales volume / Value 16 Year-on-year increase (%) / Year on year against the same period last year 16 Year-on-year increase (%), Indicator Manufacturing costs / Value -3.6 % year on year / Year on year against the same period last year -3.6 % year on year, Indicator Interim return on equity (ROE) / Value 1.5 % / Year on year against the same period last year Not disclosed, Indicator Equity ratio / Value 71 % / Year on year against the same period last year Not disclosed
Unit price and quantity metricsThe materials include information on sales volume and selling prices. Sales volume increased or decreased by product, while selling prices were described as having increased.
Assumptions Underlying the Business OutlookQualitative assumptions concerning labor shortages, construction costs, interest rates, raw material and energy prices, paint prices and logistics costs. Numerical assumptions: Not disclosed.
Medium-term management plan targetsThe materials describe progress in executing the medium-term management plan “NOZAWA NEXT3.” Numerical targets: Not disclosed.
Financial targetsThe materials state actual ROE of 1.5% and an equity ratio of 71.0%. Financial targets: Not disclosed.
Annual DividendNo change to the dividend forecast. The amount and breakdown between the interim and fiscal year-end dividends: Not disclosed.
Market Size / ShareApproximately 70% of ASLOC shipments are painted on site, of which approximately 210,000 m² are multicolor-painted.
New initiativesLaunch of the painting works business for the on-site painting method “Milfia”, Full-scale sales launch of the solar panel installation method using ASLOC rail fasteners, Launch of the ASLOC design panel “Ref Diamond”, Complete renovation of the head office showroom, Launch of a new website for individual investors
Items this document does not state (10)
Results for the three months of the current quarterSelf-assessment against the planNumber of stores and locationsNumber of employeesRisk amount incorporated into the outlookPayout ratioAcquisition of treasury sharesCapital expendituresOrders received and order backlogKey points of the Q&A

These are items the company does not state in this document. We do not leave them blank, nor fill them in from other sources or by inference.

The reasons the company gives

The company's own explanation, not something inferred from the numbers.

The company cited the cancellation or postponement of construction plans and lower sales volumes due to labor shortages, higher construction costs and rising interest rates, as well as higher raw material and energy prices and increases in logistics costs and labor costs.

How to read this page

This is not the documentKomori reads the disclosure the company filed and writes this summary. Figures are as stated by the company and are not audited.
Weight is not a verdictIt measures how much this changes what the company had already told the market. It is not a view on the shares.
Corrections happenIf the company reissues this disclosure, the page is rebuilt from the corrected version and the revision number moves up.
Supplementary Explanatory Materials for the Second Quarter (Interim Period) of the Fiscal Year Ending March 2027 | NOZAWA CORPORATION (5237) timely disclosure | Komori