NIPPON STEEL TRADING CORPORATION This document has been translated from the Japanese original for reference purposes only. In the event of any discrepancy between this translated document and the Japanese original, the original shall prevail. The Company assumes no responsibility for this translation, nor for direct, indirect, or any other form of damages that may arise from use of this translation.
Summary of Consolidated Financial Results for the Third Quarter of the Fiscal Year Ending March 31, 2021
(Japanese GAAP)
February 3, 2021
Stock Exchange: Tokyo
Listed company name: | NIPPON STEEL TRADING CORPORATION |
Code No.: | 9810 |
URL: | https://www.nst.nipponsteel.com/en/ |
Representative name: | Yasumitsu Saeki, President and Representative Director |
Tel: | +81-(0)3-5412-5003 |
Quarterly securities report to be submitted: | February 15, 2021 |
Start of cash dividend payments: | - |
Supplementary materials: | Yes (Japanese only) |
IR conference: | None |
(Figures rounded down to nearest million yen)
1.
Consolidated Earnings through the Third Quarter of the Fiscal Year Ending March 31, 2021
(April 1, 2020 to December 31, 2020)
(1)Consolidated Operating Results (Cumulative)
(%: change from the same period of the previous year)
Net sales | ||||
Millions of yen | % | % | ||
3Q FYE March 31, 2021 | 1,496,522 | (20.5) | 15,137 | (41.6) |
3Q FYE March 31, 2020 | 1,881,746 | (1.1) | 25,906 | (4.1) |
Operating profit | Ordinary profit | ||
Millions of yen | Millions of yen | % | % |
17,318 | (35.7) | 10,222 | (42.9) |
26,925 | (1.9) | 17,902 | (5.4) |
Millions of yen
Profit attributable to owners of parent
Note: | Comprehensive income |
3Q FYE March 31, 2021: | ¥10,616 million (-35.8%) |
3Q FYE March 31, 2020: | ¥16,523 million (1.9%) |
Earnings per share | Diluted earnings per share | |
3Q FYE March 31, 2021 3Q FYE March 31, 2020 | Yen 316.91 554.98 | Yen |
(2) Consolidated Financial Position
Total assets | Net assets | Equity ratio | |
As of December 31, 2020 As of March 31, 2020 | Millions of yen 851,910 857,744 | Millions of yen 267,725 254,877 | % 28.8 27.6 |
Reference: | Equity capital |
As of December 31, 2020: | ¥245,232 million |
As of March 31, 2020: | ¥236,440 million |
2.
Dividends
Annual dividends per share | |||||
1Q | 2Q | 3Q | Fiscal year end | Total | |
FYE March 31, 2020 FYE March 31, 2021 | Yen | Yen 115.00 50.00 | Yen | Yen 85.00 | Yen 200.00 |
| |||||
FYE March 31, 2021 (Est.) | 80.00 | 130.00 |
Note:
Revisions of dividends projections since most recent announcement: None
3.
Projected Consolidated Results for Fiscal Year Ending March 31, 2021 (April 1, 2020 to March 31, 2021)
(%: change from the previous year)
Net sales | Operating profit | Ordinary profit | Profit attributable to owners of parent | Earnings per share | |||||
Full fiscal year | Millions of yen 2,100,000 | % (15.3) | Millions of yen 22,000 | % (31.4) | Millions of yen 24,000 | % (27.8) | Millions of yen 13,000 | % (37.2) | Yen 403.01 |
Note:
Revisions of earnings projections since most recent announcement: None
* Notes
(1) Material changes in consolidated subsidiaries during the period (changes in specific subsidiaries resulting in changes in scope of consolidation): None
(2) Use of special accounting methods for creating quarterly consolidated financial statements: None
(3) Changes of accounting policies, changes of accounting estimates and retrospective restatements
i. Changes in accounting policies resulting from changes in accounting standards, etc.: None
ii. Other accounting policy changes: None
iii. Changes in accounting estimates: None
iv. Restatements: None
(4)Number of shares outstanding (common shares)
i. Number of shares outstanding at the end of the period (including treasury shares)
As of December 31, 2020 | 32,307,800 shares |
As of March 31, 2020 | 32,307,800 shares |
ii. | Number of treasury shares at the end of the period |
As of December 31, 2020 | 51,059 shares |
As of March 31, 2020 | 50,132 shares |
iii. |
Average number of shares during the period (cumulative from the beginning of the fiscal year)
3Q FYE March 31, 2021 3Q FYE March 31, 2020
32,257,404 shares 32,258,545 shares
* Quarterly financial results reports are exempt from quarterly review conducted by certified public accountants or an audit corporation.
* Explanation for the proper use of earnings projections, and other special matters (Caution on description of future events, etc.)
The preceding projections are based on information available at the time of the publication of these materials, and are not intended as pledges on the part of the Company that the said projections will be achieved. Actual results may differ materially from projections due to various factors that may occur in the future. For the assumptions on which these earnings projections were based, see "1. Qualitative Information on Quarterly Settlement of Accounts, (3) Explanation of Consolidated Earnings Projections and Other Forecasts" on page 3 of the attachment.
(How to acquire supplementary materials)
Supplementary materials were published on TDnet as of February 3, 2021, and they were published on the Company's website on the same date.
NIPPON STEEL TRADING CORPORATION (9810)
Consolidated Financial Statements for the Third Quarter of the Fiscal Year Ending March 31, 2021
Index of attached documents
(Notes in Case of Significant Changes to Shareholders' Equity)................................................................................... 8
- 1 -
NIPPON STEEL TRADING CORPORATION (9810)
Consolidated Financial Statements for the Third Quarter of the Fiscal Year Ending March 31, 2021
1. Qualitative Information on Quarterly Settlement of Accounts
(1) Explanation of Operating Results
The world economy during the first nine months of the fiscal year ending March 31, 2021 deteriorated sharply due to the spread of novel coronavirus infectious disease (COVID-19), but signs of a recovery were seen in some regions.
In the Japanese economy, the spread of COVID-19 has resulted in sluggish personal consumption, and the situation remains very difficult.
In this business environment, the Group strove to balance prevention of the spread of infections with the continuation of corporate activity, and implemented measures to support profit, including cost reductions, as well as various risk management initiatives.
The Company's consolidated earnings for the nine months under review were as follows: Net sales were ¥1,496.5 billion, down ¥385.2 billion (20.5%) from the corresponding period of the previous fiscal year. Operating profit was ¥15.1 billion, down ¥10.7 billion (41.6%). Ordinary profit was ¥17.3 billion, down ¥9.6 billion (35.7%), and profit attributable to owners of parent was ¥10.2 billion, down ¥7.6 billion (42.9%).
Earnings for reportable segments for the first nine months under review are as below.
(Steel)
In the Steel business, there were signs of improvement in demand in some areas, such as the automotive sector, during the third quarter (October-December), but for the first nine months of the fiscal year (April-December), overall steel demand was weak, and NST's steel sales volume also declined significantly. In addition, with an earnings deterioration at subsidiaries and associates both in Japan and overseas, net sales fell by ¥336.7 billion (21.0%) to ¥1,267.5 billion, and ordinary profit declined by ¥5.2 billion (28.1%) to ¥13.3 billion.
(Industrial Supply and Infrastructure)
In the Industrial Supply and Infrastructure business, mainly due to an earnings deterioration at subsidiaries and associates, net sales fell by ¥11.1 billion (16.7%) to ¥55.5 billion, and ordinary profit declined by ¥1.4 billion (51.1%) to ¥1.4 billion.
(Textiles)
In the Textiles business, the sales environment was very difficult throughout the first nine months of the fiscal year (April-December), with net sales falling by ¥26.6 billion (26.8%) to ¥72.8 billion, and ordinary profit declining by ¥2,700 million (80.1%), to ¥600 million.
(Foodstuffs)
In the Foodstuffs business, the Company's meat sales declined as a result of the slump in meat demand for the restaurant industry, with the result that net sales fell by ¥10.1 billion (9.2%) to ¥100.2 billion. On the other hand, due to the impact of a recovery in broiler chicken market and other factors, ordinary profit remained more or less unchanged at ¥1.8 billion.
(2) Explanation of Financial Position
Total assets at the end of the third quarter under review were ¥851.9 billion, down ¥5.8 billion from the end of the previous fiscal year, due to a decrease in inventories, despite an increase in cash and deposits.
Total liabilities were ¥584.1 billion, down ¥18.6 billion from the end of the previous fiscal year, primarily due to decline in notes and accounts payable - trade and borrowings.
Total net assets were ¥267.7 billion, up ¥12.8 billion from the end of the previous fiscal year, primarily due to the recording of profit attributable to owners of parent for the nine months under review, despite the payment of dividends.
- 2 -
NIPPON STEEL TRADING CORPORATION (9810)
Consolidated Financial Statements for the Third Quarter of the Fiscal Year Ending March 31, 2021
As of the end of the third quarter under review, equity capital was ¥245.2 billion and the equity ratio was 28.8%.
(3) Explanation of Consolidated Earnings Projections and Other Forecasts
The consolidated earnings projections for the fiscal year ending March 31, 2021 are unchanged from those announced on November 5, 2020.
- 3 -
NIPPON STEEL TRADING CORPORATION (9810)
Consolidated Financial Statements for the Third Quarter of the Fiscal Year Ending March 31, 2021
2. Quarterly Consolidated Financial Statements and Significant Notes Thereto
(1) Quarterly Consolidated Balance Sheets
(Millions of yen)
Previous Fiscal Year | Third Quarter Under Review | |
(As of March 31, 2020) | (As of December 31, 2020) | |
Assets | ||
Current assets | ||
Cash and deposits | 26,017 | 31,753 |
Notes and accounts receivable - trade | 555,871 | 551,895 |
Inventories | 123,261 | 108,167 |
Other | 15,573 | 17,084 |
Allowance for doubtful accounts | (1,088) | (1,424) |
Total current assets | 719,634 | 707,476 |
Non-current assets | ||
Property, plant and equipment | 56,780 | 59,720 |
Intangible assets | ||
Goodwill | 408 | 349 |
Other | 721 | 684 |
Total intangible assets | 1,129 | 1,033 |
Investments and other assets | ||
Other | 83,219 | 86,859 |
Allowance for doubtful accounts | (3,019) | (3,180) |
Total investments and other assets | 80,199 | 83,679 |
Total non-current assets | 138,109 | 144,433 |
Total assets | 857,744 | 851,910 |
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NIPPON STEEL TRADING CORPORATION (9810)
Consolidated Financial Statements for the Third Quarter of the Fiscal Year Ending March 31, 2021
(Millions of yen)Previous Fiscal Year (As of March 31, 2020)Liabilities
Current liabilities
Notes and accounts payable - trade Short-term borrowings Commercial papers Income taxes payable Provisions
Other
Total current liabilities Non-current liabilities
Bonds payable Long-term borrowings Provisions
Retirement benefit liability Other
Total non-current liabilities Total liabilities
Net assets
Shareholders' equity
Share capital Capital surplus Retained earnings Treasury shares
Total shareholders' equity Accumulated other comprehensive income
Valuation difference on available-for-sale securities
Deferred gains or losses on hedges Foreign currency translation adjustment Remeasurements of defined benefit plans
Total accumulated other comprehensive income
Non-controlling interests
Total net assets
Total liabilities and net assets
257,395 247,014
103,942 77,723
50,000 57,000
3,627 1,544
4,564 2,653
26,346 28,046
445,876
Third Quarter Under Review (As of December 31, 2020)
413,983
80,000 80,000
66,235 78,257
601 1,285
3,674 3,670
6,479 6,988
156,990 602,867
170,201 584,185
16,389 16,389
54,689 54,443
160,669 169,715
(153) 231,594
(156)
240,391
2,168 5,284
(371) (380)
3,989 810
(940) (873)
4,845 18,437 254,877 857,744
4,840 22,492 267,725 851,910
- 5 -
NIPPON STEEL TRADING CORPORATION (9810)
Consolidated Financial Statements for the Third Quarter of the Fiscal Year Ending March 31, 2021
(2) Quarterly Consolidated Statements of Income and Quarterly Consolidated Statements of Comprehensive Income
(Quarterly Consolidated Statements of Income)
Third Quarter (Cumulative)
(Millions of yen)Nine Months of Previous Fiscal Year
(April 1, 2019 to December 31, 2019)Nine Months of Fiscal Year Under Review
(April 1, 2020 to December 31, 2020)
Net sales Cost of sales Gross profit
Selling, general and administrative expenses Operating profit
Non-operating income
Interest income
Dividend income
Share of profit of entities accounted for using equity
method
Purchase discounts
Other
Total non-operating income Non-operating expenses
Interest expenses
Other
Total non-operating expenses
Ordinary profit
Extraordinary income
Gain on sales of non-current assets
Gain on sales of investment securities
Total extraordinary income Extraordinary losses
Loss on sales of investment securities
Loss on valuation of investment securities
1,881,746 1,496,522
1,774,067 1,409,160
107,679 81,773 25,906
87,361 72,224 15,137
387 301
1,176 898
2,039 1,592
384 304
1,268 1,684
5,256 3,268 968 4,236 26,925
4,781 1,784 815 2,599 17,318
127 342
67 568
195
910
125 23
31 682
Loss on sales of investments in capital - 3
Loss on valuation of investments in capital - 204
Loss on liquidation of subsidiaries and associates - 404
Provision for loss on guarantees - 598
Total extraordinary losses Profit before income taxes Income taxes
Profit
Profit attributable to non-controlling interests Profit attributable to owners of parent
156
26,964
8,007
18,957
1,054
17,902
1,915
16,313
5,298
11,014
792
10,222
- 6 -
NIPPON STEEL TRADING CORPORATION (9810)
Consolidated Financial Statements for the Third Quarter of the Fiscal Year Ending March 31, 2021
(Quarterly Consolidated Statements of Comprehensive Income)
Third Quarter (Cumulative)
(Millions of yen)Nine Months of Previous Fiscal Year
(April 1, 2019 to December 31, 2019)Nine Months of Fiscal Year Under Review
(April 1, 2020 to December 31, 2020)
Profit
Other comprehensive income
Valuation difference on available-for-sale securities Deferred gains or losses on hedges
Foreign currency translation adjustment Remeasurements of defined benefit plans, net of tax Share of other comprehensive income of entities accounted for using equity method
Total other comprehensive income
Comprehensive income Comprehensive income attributable to
Comprehensive income attributable to owners of parent
Comprehensive income attributable to non-controlling interests
18,957 11,014
(1,725) 3,137
147 (9)
(1,314)
9 450
(2,433)
16,523
(2,156)
48
( 1,418)
(398)
10,616
15,712
10,194
811
421
- 7 -
NIPPON STEEL TRADING CORPORATION (9810)
Consolidated Financial Statements for the Third Quarter of the Fiscal Year Ending March 31, 2021
(3) Notes on Quarterly Consolidated Financial Statements
(Notes on Going Concern Assumption)
Not applicable.
(Notes in Case of Significant Changes to Shareholders' Equity)
Not applicable.
(Additional Information)
(Accounting estimates in relation to the impact of the spread of COVID-19)
The Group bases accounting estimates for impairment loss accounting for non-current assets, and recoverability of deferred tax assets, on information available at the time quarterly consolidated financial statements are created. With regard to the impact of the spread of COVID-19, there have been no material changes to the accounting estimates presented in the Additional Information section of the securities report for the second quarter of the fiscal year ending March 31, 2021.
(Segment Information, etc.)
[Segment Information]
I Nine months of Previous Fiscal Year (April 1, 2019 to December 31, 2019)
1. Information on sales and profit/loss in each reporting segment
(Millions of yen)
Reportable segments | Others (Note 1) | Total | Adjusted amount (Note 2) | Amount recorded in quarterly consolidated statements of income (Note 3) | |||||
Steel | Industrial Supply and Infrastructure | Textiles | Foodstuffs | Total | |||||
Net sales Sales to external customers Intersegment sales or transfers | 1,604,306 466 | 66,768 457 | 99,532 5 | 110,345 - | 1,880,952 929 | 793 108 | 1,881,746 1,038 | - (1,038) | 1,881,746 - |
Total | 1,604,772 | 67,226 | 99,537 | 110,345 | 1,881,882 | 902 | 1,882,784 | (1,038) | 1,881,746 |
Segment profit (Ordinary profit) | 18,552 | 2,908 | 3,468 | 1,908 | 26,836 | 89 | 26,925 | (0) | 26,925 |
(Notes) 1. | "Others" represents items not included under "reportable segments," and it includes real estate business. |
2. | The adjustment in "segment profit" represents the elimination of inter-segment trade. |
3. | The total profit of the "reportable segments" and "others" aligns with the ordinary profit in the quarterly consolidated |
statements of income excepting the adjustment. |
2. Information on impairment loss on non-current assets, goodwill, etc., for each reporting segment Not applicable.
- 8 -
NIPPON STEEL TRADING CORPORATION (9810)
Consolidated Financial Statements for the Third Quarter of the Fiscal Year Ending March 31, 2021
II
Nine Months of Fiscal Year Under Review (April 1, 2020 to December 31, 2020)
1. Information on sales and profit/loss in each reporting segment
(Millions of yen)
Reportable segments | Others (Note 1) | Total | Adjusted amount (Note 2) | Amount recorded in quarterly consolidated statements of income (Note 3) | |||||
Steel | Industrial Supply and Infrastructure | Textiles | Foodstuffs | Total | |||||
Net sales Sales to external customers Intersegment sales or transfers | 1,267,582 262 | 55,591 362 | 72,876 1 | 100,210 - | 1,496,260 626 | 261 44 | 1,496,522 671 | - (671) | 1,496,522 - |
Total | 1,267,844 | 55,954 | 72,878 | 100,210 | 1,496,887 | 306 | 1,497,193 | (671) | 1,496,522 |
Segment profit (Ordinary profit) | 13,334 | 1,422 | 691 | 1,859 | 17,307 | 10 | 17,318 | (0) | 17,318 |
(Notes) 1. | "Others" represents items not included under "reportable segments," and it includes real estate business. |
2. | The adjustment in "segment profit" represents the elimination of inter-segment trade. |
3. | The total profit of the "reportable segments" and "others" aligns with the ordinary profit in the quarterly consolidated |
statements of income excepting the adjustment. |
2. Information on impairment loss on non-current assets, goodwill, etc., for each reporting segment Not applicable.
- 9 -
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Nippon Steel & Sumikin Bussan Corporation published this content on 08 March 2021 and is solely responsible for the information contained therein. Distributed by Public, unedited and unaltered, on 08 March 2021 03:32:06 UTC.
