Consolidated Financial Statements Summary
(For the three months ended June 30, 2020) | ||||
English translation from the original Japanese-language document | ||||
(All financial information has been prepared in accordance with accounting principles generally accepted in Japan) | August 5, 2020 | |||
Company name | : TEIJIN LIMITED (Stock code 3401) | https://www.teijin.com | ||
Contact person | : Tomoko Torii | General Manager, | TEL: +81-(0)3-3506-4395 | |
Investor Relations Department | (Amounts rounded to the nearest million yen) | |||
1. Highlight of the First quarter of FY2020 (April 1, 2020 through June 30, 2020)
(1) Consolidated financial results | (Percentages are year-on-year changes) | |||||||
Net sales | Operating income | Ordinary income | Profit attributable to | |||||
owners of parent | ||||||||
Million yen | % | Million yen | % | Million yen | % | Million yen | % | |
For the three months ended June 30, 2020 | 179,113 | -16.5 | 12,588 | -25.8 | 12,447 | -26.2 | 5,696 | -47.1 |
For the three months ended June 30, 2019 | 214,621 | -0.8 | 16,958 | -7.1 | 16,861 | -20.4 | 10,777 | -44.7 |
cf. Comprehensive income for the three months ended June 30, 2020 : 11,779 million yen (For the three months ended June 30, 2019 : -2,760 million yen)
E.P.S. * | Diluted E.P.S. | ||||
Yen | Yen | ||||
For the three months ended June 30, 2020 | 29.68 | 28.05 | |||
For the three months ended June 30, 2019 | 56.18 | 53.14 | |||
* E.P.S.: Earnings per share | |||||
(2) Consolidated financial position | |||||
Total assets | Net assets | Shareholders' | |||
equity ratio | |||||
Million yen | Million yen | % | |||
As of June 30, 2020 | 1,004,937 | 416,900 | 39.7 | ||
As of March 31, 2020 | 1,004,223 | 411,409 | 39.3 |
cf. Shareholders' equity as of June 30, 2020 : 399,375 million yen (As of March 31, 2020 : 394,162 million yen)
2. Dividends
Dividends per share | ||||||||
Period | ||||||||
1Q | 2Q | 3Q | 4Q | Annual | ||||
Yen | Yen | Yen | Yen | Yen | ||||
FY2019 | ― | 30.00 | ― | 30.00 | 60.00 | |||
FY2020 | ― | |||||||
FY2020 (Outlook) | ― | ― | ― | ― | ||||
Note: Revision of outlook for dividends | in the first quarter: No | |||||||
* The retained earnings dividend for FY2020 (Outlook) | is still undecided. |
3. Forecast for operating results in the year ending March 31, 2021 (FY2020)
(Percentages are year-on-year changes)
Net sales | Operating income | Ordinary income | Profit attributable to | E.P.S. | |||||
owners of parent | |||||||||
Million yen | % | Million yen | % | Million yen | % | Million yen | % | Yen | |
FY2020 annual | 750,000 | -12.2 | 40,000 | -28.8 | 40,000 | -26.4 | 20,000 | -20.8 | 104.19 |
Note: Revision of outlook for FY2020 consolidated operating results in the first quarter: Yes
- For the forecast for operating results in the year ending March 31, 2021 (FY2020), please refer to the "Notice Regarding the Revision of Financial Forecasts" and "Flash Report - Results of FY2020 1Q & Outlook for FY2020 -" both announced today.
4. Appropriate Use of Forecasts and Other Information and Other Matters
(1) Cautionary statement on forward-looking statements
All forecasts in this document are based on management's assumptions in light of information currently available and involve certain risks and uncertainties. Actual results could differ materially from these forecasts.
1. Financial Statements
( 1 ) Consolidated Balance Sheets
(Millions of yen) | |||
As of March 31, 2020 | As of June 30, 2020 | ||
< Assets > | |||
Current assets | |||
Cash and deposits | 113,500 | 161,313 | |
Notes and accounts receivable-trade | 167,194 | 149,133 | |
Securities | 36,000 | - | |
Merchandise and finished goods | 96,935 | 107,159 | |
Work in process | 11,735 | 11,416 | |
Raw materials and supplies | 34,429 | 34,520 | |
Other current assets | 46,053 | 39,500 | |
Allowance for doubtful accounts | (523) | (480) | |
Total | 505,323 | 502,561 | |
Noncurrent assets | |||
Tangible assets | |||
Buildings and structures, net | 65,037 | 64,727 | |
Machinery and equipment, net | 110,956 | 109,491 | |
Other, net | 120,089 | 125,846 | |
Total | 296,081 | 300,063 | |
Intangible assets | |||
Goodwill | 23,813 | 22,348 | |
Other | 36,574 | 35,513 | |
Total | 60,387 | 57,861 | |
Investments and other assets | |||
Investment securities | 76,633 | 83,395 | |
Other | 67,402 | 62,761 | |
Allowance for doubtful accounts | (1,604) | (1,703) | |
Total | 142,432 | 144,453 | |
Total noncurrent assets | 498,900 | 502,377 | |
Total assets | 1,004,223 | 1,004,937 |
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(Millions of yen) | ||||
As of March 31, 2020 | As of June 30, 2020 | |||
< Liabilities > | ||||
Current liabilities | ||||
Notes and accounts payable-trade | 80,068 | 72,705 | ||
Short-term loans payable | 98,372 | 106,110 | ||
Current portion of long-term loans payable | 34,268 | 14,563 | ||
Income taxes payable | 5,464 | 4,208 | ||
Provision for business structure improvement | 1,089 | 1,089 | ||
Other | 68,379 | 61,148 | ||
Total | 287,640 | 259,823 | ||
Noncurrent liabilities | ||||
Bonds payable | 35,024 | 35,021 | ||
Long-term loans payable | 202,013 | 223,770 | ||
Provision for business structure improvement | 2,325 | 2,325 | ||
Net defined benefit liability | 39,464 | 39,798 | ||
Asset retirement obligations | 2,228 | 2,230 | ||
Other | 24,120 | 25,071 | ||
Total | 305,174 | 328,214 | ||
Total liabilities | 592,814 | 588,037 | ||
Shareholders' equity | ||||
Capital stock | 71,833 | 71,833 | ||
Capital surplus | 103,692 | 103,692 | ||
Retained earnings | 247,055 | 246,995 | ||
Treasury stock | (13,131) | (13,106) | ||
Total | 409,449 | 409,414 | ||
Accumulated other comprehensive income | ||||
Valuation difference on available-for-sale securities | 12,403 | 16,355 | ||
Deferred gains or losses on hedges | (1,020) | (533) | ||
Foreign currency translation adjustment | (23,217) | (22,483) | ||
Remeasurements of defined benefit plans | (3,452) | (3,378) | ||
Total | (15,286) | (10,039) | ||
Subscription rights to shares | 772 | 801 | ||
Non-controlling interests | 16,475 | 16,724 | ||
Total net assets | 411,409 | 416,900 | ||
Total liabilities and net assets | 1,004,223 | 1,004,937 |
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( 2 ) Consolidated Statements of Income
(Millions of yen) | |||
For the three months | For the three months | ||
ended June 30, 2019 | ended June 30, 2020 | ||
Net sales | 214,621 | 179,113 | |
Cost of sales | 146,957 | 119,438 | |
Gross profit | 67,664 | 59,675 | |
Selling, general and administrative expenses | 50,706 | 47,087 | |
Operating income | 16,958 | 12,588 | |
Non-operating income | |||
Interest income | 256 | 204 | |
Dividends income | 564 | 462 | |
Equity in earnings of affiliates | 390 | 180 | |
Gain on investments in partnerships | - | 238 | |
Foreign exchange gains | 1,477 | - | |
Miscellaneous income | 212 | 185 | |
Total | 2,899 | 1,268 | |
Non-operating expenses | |||
Interest expenses | 899 | 764 | |
Foreign exchange losses | - | 21 | |
Loss on valuation of derivatives | 1,680 | 232 | |
Miscellaneous loss | 417 | 393 | |
Total | 2,996 | 1,409 | |
Ordinary income | 16,861 | 12,447 | |
Extraordinary income | |||
Gain on sales of noncurrent assets | 21 | 37 | |
Gain on sales of investment securities | 3,704 | 15 | |
Other | 15 | 0 | |
Total | 3,740 | 53 | |
Extraordinary loss | |||
Loss on sales and retirement of noncurrent assets | 159 | 200 | |
Loss on valuation of investment securities | - | 863 | |
Impairment loss | 1,698 | - | |
Business structure improvement expenses | 3,411 | - | |
Loss related to COVID-19 | - | 249 | |
Other | 275 | 165 | |
Total | 5,542 | 1,478 | |
Income before income taxes | 15,059 | 11,022 | |
Income taxes | 4,000 | 4,801 | |
Profit | 11,059 | 6,221 | |
Profit attributable to non-controlling interests | 282 | 525 | |
Profit attributable to owners of parent | 10,777 | 5,696 |
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(3) Consolidated Statements of Comprehensive Income
(Millions of yen) | ||||
For the three months | For the three months | |||
ended | ended | |||
June 30, 2019 | June 30, 2020 | |||
Profit | 11,059 | 6,221 | ||
Other comprehensive income | ||||
Valuation difference on available-for-sale securities | (6,900) | 4,221 | ||
Deferred gains or losses on hedges | (60) | 487 | ||
Foreign currency translation adjustment | (7,093) | 1,104 | ||
Remeasurements of defined benefit plans, net of tax | 322 | 85 | ||
Share of other comprehensive income of associates accounted for using | (88) | (339) | ||
equity method | ||||
Total | (13,819) | 5,558 | ||
Comprehensive income | (2,760) | 11,779 | ||
Comprehensive income attributable to : | ||||
Owners of parent | (2,727) | 10,944 | ||
Non-controlling interests | (34) | 835 |
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2. Segment and Other Information
Notes Pertaining to Going Concern Assumption:
None
Notes on Significant Changes in Shareholders' Equity:
None
Adoption of special quarterly accounting methods:
Certain of the consolidated subsidiaries of the Company have adopted a method for estimating in practical terms the effective tax rate for the fiscal year, including for the three months ended June 30, 2020, following the application of tax effect accounting to income before income taxes, and multiplying this by quarterly income before income taxes to estimate quarterly tax expense.
Additional Information (COVID-19):
There is some uncertainty about when coronavirus disease 2019 (COVID-19) will be contained. Nonetheless, in its business fields, the Company expects a decrease in earnings in line with lower sales volume in FY2020, among other impacts, mainly based on a downturn in global consumer spending and stagnant production activity due to the spread of COVID-19.
At this time, the Company assumes that economic activity will gradually start to recover from the second quarter of FY2020. However, there could still be a significant impact on the Company's operating results for FY2020.
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Segment information
( 1 ) Results of the First quarter of FY2019 (April 1, 2019 through June 30, 2019) 1 ) Segment sales and operating income
(Millions of yen)
Reportable operating segments | |||||||
Fibers & | Others* | Total | |||||
Materials | Healthcare | Products | IT | Subtotal | |||
Converting | |||||||
Sales | 86,088 | 39,830 | 73,779 | 10,896 | 210,594 | 4,028 | 214,621 |
1) External customers | |||||||
2) Intersegment transactions or transfers | 3,406 | 16 | 1,226 | 1,237 | 5,884 | 983 | 6,868 |
Net sales | 89,494 | 39,846 | 75,005 | 12,133 | 216,478 | 5,011 | 221,489 |
Segment income (loss) | 5,584 | 10,522 | 972 | 1,310 | 18,388 | (11) | 18,376 |
* "Others," which includes the Engineering business, does not qualify as a reportable operating segment.
2 ) Difference between operating income and sum of operating income (loss) in reportable operating segments
(Adjustment) | (Millions of yen) |
Operating income (loss) | Amount |
Total reportable operating segments | 18,388 |
Others segment | (11) |
Elimination of intersegment transactions | (48) |
Corporate expenses* | (1,371) |
Operating income | 16,958 |
- Corporate expenses are expenses that cannot be allocated to individual reportable operating segments and are primarily related to head office administration.
3 ) Loss on impairment and goodwill by reportable segments This item has been omitted because it is of low significance.
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( 2 ) Results of the First quarter of FY2020 (April 1, 2020 through June 30, 2020) 1 ) Segment sales and operating income
(Millions of yen)
Reportable operating segments | |||||||
Fibers & | Others* | Total | |||||
Materials | Healthcare | Products | IT | Subtotal | |||
Converting | |||||||
Sales | 53,884 | 36,160 | 71,633 | 13,522 | 175,199 | 3,914 | 179,113 |
1) External customers | |||||||
2) Intersegment transactions or transfers | 2,313 | - | 752 | 1,292 | 4,357 | 785 | 5,141 |
Net sales | 56,197 | 36,160 | 72,385 | 14,815 | 179,556 | 4,699 | 184,254 |
Segment income (loss) | (1,408) | 8,680 | 5,095 | 2,029 | 14,396 | (436) | 13,960 |
* "Others," which includes the Engineering business, does not qualify as a reportable operating segment.
2 ) Difference between operating income and sum of operating income (loss) in reportable operating segments
(Adjustment) | (Millions of yen) |
Operating income (loss) | Amount |
Total reportable operating segments | 14,396 |
Others segment | (436) |
Elimination of intersegment transactions | 75 |
Corporate expenses* | (1,447) |
Operating income | 12,588 |
- Corporate expenses are expenses that cannot be allocated to individual reportable operating segments and are primarily related to head office administration.
-
Changes in reportable segments
From the three months ended June 30, 2020, the Company has revised its previous two reportable segments, the Materials Business and the Healthcare Business, into four reportable segments: the Materials Business, Healthcare Business, Fibers & Products Converting Business, and IT Business. The Company has been shifting the Fibers & Products Converting Business to an independent management system. In this regard, the segment revision was undertaken to separate the Fibers & Products Converting Business from the Materials Business and make it an independent reportable segment, in order to execute further independent and agile management based on the "ALWAYS EVOLVING" Medium-Term Management Plan published in February 2020.
In addition, the Company has separated the IT Business, which has become increasingly important, from Others, and has made it an independent reportable segment.
The segment figures for the three months ended June 30, 2019 have been recalculated and disclosed in accordance with the new reportable segments after the revision.
4 ) Loss on impairment and goodwill by reportable segments No
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Teijin Limited published this content on 05 August 2020 and is solely responsible for the information contained therein. Distributed by Public, unedited and unaltered, on 05 August 2020 02:31:04 UTC