Financial Highlights for Fiscal Year
Ended December 31, 2023 (FY 2023)
(In millions of yen; amounts rounded down to the nearest million yen)
| FY 2022 | FY 2023 | YoY change | |
| Net sales | 4,824 | 4,536 | -288 (-6.0%) |
| Operating profit | 609 | 472 | -137 (-22.6%) |
| Ordinary profit | 715 | 530 | -184 (-25.8%) |
| Profit attributable to owners of parent | 531 | 308 | -222 (-42.0%) |
Consolidated Business Performance for FY 2023
The AMITA Group have pursued organizational reforms, worked to enhance organizational mobility, quality of services, and value creation capabilities and actively promoted strategic partnerships with companies in different industries.
【Transition Strategy Business】
Interest in sustainability from a long-term perspective is gathering momentum and has led to continued high levels of inquiries regarding the "Cyano Project," which comprehensively supports the creation and business transformation of recycling-oriented businesses, from companies aiming to transform their existing businesses. However, with repeated outbreaks of abnormal weather and the intensification of global supply chain instability, in the short term companies are increasingly putting a priority on business activities that have a direct impact in terms of near-term results and evaluations. As a result, decisions on ESG measures and schedules for business discussions are being pushed back, and this has led to our orders falling behind plan. In response to these circumstances, we strengthened marketing initiatives aimed at raising our order rates, as well as developing and providing such products as solutions to address disclosure of information related to natural risks that occur in the course of corporate activity (an area that is increasingly attracting attention, and which is associated with the Taskforce on Nature-related Financial Disclosures, or TNFD), and the Factory Support Package, which seeks to help production sites enhance their sustainability. Consequently, orders in the fourth quarter and beyond have begun to improve. In the environmental certification assessment service, orders from new customers, especially for FSC® CoC certification, have been increasing steadily, and performance has been strong. ICT and BPO services for environmental management operations continued to perform well in response to the growing needs of client companies due to personnel shortages and other factors.
【Circular Materials Business】
While raw material procurement risks are becoming more apparent due to instability in global supply chains, the need for alternative resources is also steadily expanding against the background of accelerating moves towards carbon neutrality. However, factors such as the sluggishness in manufacturing industry caused by labor shortages, soaring resource prices, and so on are having an impact on handling volumes of alternative resources offered by the Group. Faced by this situation, we have implemented initiatives aimed at boosting profitability, such as those related to the manufacture and sale of coal substitutes that contribute to carbon neutrality and nature positivity, to achieving more appropriate recycling prices, and to improving productivity at manufacturing plants. Although the volume of closed-loop resource-recycling of silicon slurry waste liquids has declined due to production in the semiconductor industry undergoing a phase of adjustment, this sector is expected to recover going forward and we are therefore moving forward with preparations to strengthen our production structure. In addition, we saw a decrease in the volume of Ni recycled resources handled as valuable materials overseas, which is an intensely competitive environment, and there were reductions in the volume of nonferrous materials handled following production cutbacks at some resource user firms. In October 2022, the resource manufacturing operations of the former Kawasaki Resource Recycling Plant were taken over by the Kawasaki Plant of Sanyu Plant Service Co., Ltd. In this connection, the recording of net sales and cost of sales for that transaction was changed from gross to net.
In the overseas business in Malaysia, although handling volume declined temporarily due to production cutbacks by client companies, local demand for alternative resources is increasing, leading to a recovery in handling volume for existing projects. Together with the acquisition of new clients, this resulted in a year-onyear increase in handling volume. In Indonesia, we are accelerating a feasibility study on the manufacturing and supply of alternative fuels and materials derived from industrial and municipal waste to the cement industry, based on the Memorandum of Understanding (MoU) we signed with PT Indocement Tunggal Prakarsa Tbk., a major Indonesian cement company.
In the overseas business in Malaysia, although handling volume declined temporarily due to production cutbacks by client companies, local demand for alternative resources is increasing, leading to a recovery in handling volume for existing projects. Together with the acquisition of new clients, this resulted in a year-onyear increase in handling volume. In Indonesia, we are accelerating a feasibility study on the manufacturing and supply of alternative fuels and materials derived from industrial and municipal waste to the cement industry, based on the Memorandum of Understanding (MoU) we signed with PT Indocement Tunggal Prakarsa Tbk., a major Indonesian cement company.
【MEGURU PLATFORM】
The Group pushed ahead with initiatives for widespread deployment of MEGURU STATION®, a resourcecollection site that promotes mutually supportive engagement among community residents, in Tachiarai Town in Fukuoka Prefecture, Kobe City, Buzen City in Fukuoka Prefecture, as well as for building a model in Kakegawa City in Shizuoka Prefecture. In addition, we continued our work with Toray Industries, Inc. to build and deploy a circular model for plastics based on MEGURU STATION®, for which we were selected by the Cabinet Office for the third phase of the Cross-ministerial Strategic Innovation Promotion Program (SIP), in July 2023.
【Partnerships and Co-Creation Business Models】
At the Japan Circular Economy Partnership (J-CEP), for which AMITA HOLDINGS serves as the representative organizer, we investigated specific projects to conduct in collaboration with companies from other industries in relation to the circular economy, including demonstrating the use of recycled PET bottle caps and product traceability. In November, we concluded a Memorandum of Understanding (MoU) on collaboration in waste management services with Sumitomo Mitsui Finance and Leasing Co., Ltd., and investigated collaboration aimed at enhancing waste management system services from sales to operations, the expansion of waste management BPO services provided by AMITA CORPORATION, and the joint development and provision of new services tailored to meet future needs. In December, AMITA CORPORATION became the first member of the Associate Consultant Program in the circular economy field of BSI Group Japan K.K., which as a certification assessment body has one of the most extensive track records in Japan, to be accredited, and will promote the expansion of consulting services to facilitate the transition by corporations to sustainable management.
Net Sales
The Group net sales for the fiscal year under review were 4,536 million yen(down 6.0% or 288 million yen from the previous fiscal year) due mainly to the change from gross to net recording of transactions at the former Kawasaki Resource Recycling Plant, the slowdown in Cyano Project orders, and declines in overseas valuable material transactions and in the volume of nonferrous materials handled.
Operating Profit
recorded 472 million yen (down 22.6%, or 137 million yen from the previous fiscal year) due to decreased net sales and increased selling, general and administrative expenses.
Ordinary Profit
The Group's ordinary profit was 530 million yen (down 25.8% or 184 million yen from the previous fiscal year), having been affected by the decrease in operating profit, as well as by such factors as a decline in equity in earnings of affiliates related to the Malaysian business, which was caused by the disappearance of tax deductions applied in the previous fiscal year under the green investment taxation system in Malaysia.
Profit
Profit attributable to owners of the parent was 308 million yen (down 42.0% or 222 million yen from the previous fiscal year), due to the decline in ordinary profit and other factors.
Key Financial Metrics
■Operating Profit Margin
■Ordinary Profit Margin
■ROE(Return on Equity)
■ROIC(Return on Invested Capital)
Financial and Performance Information
| 2021 | 2022 | 2023 | ||||
| Net sales (1,000 yen) |
5,157,789 | 4,824,795 | 4,536,499 | |||
| Operating profit (1,000 yen) |
560,023 | 609,728 | 472,160 | |||
| Ordinary profit (1,000 yen) |
629,461 | 715,537 | 530,844 | |||
| Profit (1,000 yen) |
632,836 | 531,242 | 308,345 | |||
| Comprehensive income (1,000 yen) |
646,068 | 563,637 | 312,085 | |||
| Net assets (1,000 yen) |
1,455,024 | 2,001,050 | 2,266,204 | |||
| Total assets (1,000 yen) |
4,427,311 | 4,824,280 | 6,175,708 | |||
| Net assets per share (Yen) *1 |
82.97 | 113.69 | 128.77 | |||
| Profit per share (Yen)*1 |
36.08 | 30.29 | 17.57 | |||
| Operating profit margin （％） |
10.9 | 12.6 | 10.4 | |||
| Equity capital ratio （％） |
32.9 | 41.4 | 36.6 | |||
| Net cash provided by operating activities (1,000 yen) |
873,224 | 585,083 | 725,473 | |||
| Net cash provided by (used in) investing activities (1,000 yen) |
(73,969) | (69,841) | (441,033) | |||
| Net cash provided by (used in) financing activities (1,000 yen) |
(649,522) | (142,166) | 754,430 | |||
| Ending balance of cash and cash equivalents (1,000 yen) |
1,390,556 | 1,779,633 | 2,829,579 |
*1)
The Company carried out a 3-for-1 stock split of its common shares as of October 1, 2022. Under the assumption that such stock split was implemented at the beginning of the previous fiscal year, the Company calculates "earnings per share" and "diluted earnings per share."
For more detailed earnings information, please refer to the links below.
■Quarterly Financial Statements（https://en.amita-hd.co.jp/ir/result.html）
Notices
■Data provided in this section is compiled from the Company's quarterly earnings announcements. For more detailed earnings information, refer to the Company's quarterly earnings announcements and financial reports.
■In compiling data provided in this section, we have made every effort to ensure its accuracy. Despite our best efforts, data may not be entirely accurate for internal or external reasons beyond our control.
■This section may not be updated immediately after corrections are made to published earnings announcements.
（Next update on this section is scheduled for February, 2025.）
