Flash Report
Consolidated Basis
Results for the First Quarter of Fiscal 2020 | |
(April 1, 2020―June 30, 2020) | |
<under IFRS> | |
August 4, 2020 | |
Company name: | Nippon Steel Corporation |
Stock listing: | Tokyo, Nagoya, Sapporo, Fukuoka stock exchanges |
Code number: | 5401 |
URL: | https://www.nipponsteel.com/en/index.html |
Representative: | Eiji Hashimoto, Representative Director and President |
Contact: | Shinnosuke Arita, General Manager, Public Relations Center |
Telephone: | +81-3-6867-2135, 2146, 2977, 3419 |
Scheduled date to submit Securities Report: | August 7, 2020 |
Scheduled date to pay dividends: | - |
Preparation of supplemental explanatory materials: | Yes |
Holding of quarterly financial results meeting: | Yes (for investment analysts) |
(All amounts have been truncated to the nearest millions of Japanese yen.)
1. Consolidated Operating Results and Financial Position through the First Quarter of Fiscal 2020 (April 1, 2020―June 30, 2020)
(1) Consolidated Operating Results (Accumulated)
(Percentage figures are changes from the same period of the previous fiscal year.)
Revenue | Business profit (*) | Operating profit | Profit before | Profit | |||||||||
income taxes | |||||||||||||
Millions of | % | Millions of | % | Millions of | % | Millions of | % | Millions of | % | ||||
yen | yen | yen | yen | yen | |||||||||
First quarter of Fiscal 2020 | 1,131,604 | (25.7) | (27,510) | ― | (27,510) | ― | (32,577) | ― | (41,422) | ― | |||
First quarter of Fiscal 2019 | 1,522,479 | 4.3 | 60,600 | (33.1) | 60,600 | (33.1) | 56,241 | (34.8) | 38,904 | (56.8) | |||
Profit attributable to | Total comprehensive | Basic earnings | Diluted earnings | ||||||||||
owners of the parent | income | per share | per share | ||||||||||
Millions of | % | Millions of | % | Yen | Yen | ||||||||
yen | yen | ||||||||||||
First quarter of Fiscal 2020 | (42,071) | ― | (91,911) | ― | (45.69) | ― | |||||||
First quarter of Fiscal 2019 | 33,325 | (61.0) | 28,006 | (35.7) | 36.20 | ― | |||||||
(*)Business Profit on Consolidated Statements of Profit or Loss indicates the results of sustainable business activities, and is an important measure to compare and evaluate the Company's consolidated performance continuously. It is defined as being deducted Cost of sales, Selling general and administrative expenses and Other operating expenses from Revenue, and added Share of profit in investments accounted for using the equity method and Other operating income. Other operating income and expenses are composed mainly of Dividend income, Foreign exchange gains or losses, Loss on disposal of fixed assets.
(2) Consolidated Financial Position
Total equity attributable to | Ratio of total equity | |||
Total assets | Total equity | attributable to owners of the | ||
owners of the parent | ||||
parent to total assets | ||||
Millions of yen | Millions of yen | Millions of yen | % | |
First quarter of Fiscal 2020 | 7,361,501 | 2,902,699 | 2,552,968 | 34.7 |
Fiscal 2019 | 7,444,965 | 2,996,631 | 2,641,618 | 35.5 |
2. Dividends
Dividends per share | |||||
End of first quarter | End of second quarter | End of third quarter | End of fiscal year | Fiscal year | |
Yen | Yen | Yen | Yen | Yen | |
Fiscal 2019 | ― | 10.00 | ― | 0.00 | 10.00 |
Fiscal 2020 | ― | ||||
Fiscal 2020 (Forecasts) | 0.00 | ― | ― | ― | |
Notes: Whether the dividends forecasts have been revised: Yes
3. Consolidated Financial Forecasts for Fiscal 2020 (April 1, 2020―March 31, 2021)
(Percentage figures are changes from the same period of the previous fiscal year.)
Revenue | Business profit | Profit attributable to | Basic earnings per share | ||||||
owners of the parent | |||||||||
Millions of yen | % | Millions of yen | % | Millions of yen | % | Yen | |||
First half of Fiscal 2020 | 2,200,000 | (27.8) | (150,000) | ― | (200,000) | ― | (217.0) | ||
Fiscal 2020 | ― | ― | (120,000) | ― | ― | ― | ― | ||
Notes: 1. Whether the consolidated financial forecasts for fiscal 2020 under review have been revised: Yes
- Notes
- Changes in significant subsidiaries during the period: None
- Changes in accounting policies and changes in accounting estimates
- Changes in accounting policies required by IFRS: None
- Changes other than those in (a) above: None
-
Changes in accounting estimates: Yes
Note: For further details, please refer to page 7, "Quarterly Condensed Consolidated Financial Statements and Major Notes (4) Notes to the Quarterly Condensed Consolidated Financial Statements (Changes in Accounting Estimates)."
- Number of shares outstanding (common shares)
- Number of shares outstanding at the end of the period (including treasury stock)
First quarter of Fiscal 2020 | 950,321,402 shares |
Fiscal 2019 | 950,321,402 shares |
(b) Number of treasury stock at the end of the period | |
First quarter of Fiscal 2020 | 29,641,883 shares |
Fiscal 2019 | 29,638,468 shares |
(c) Weighted average number of shares outstanding | |
First quarter of Fiscal 2020 | 920,681,631 shares |
First quarter of Fiscal 2019 | 920,440,643 shares |
- This quarterly flash report is not subject to quarterly review procedures.
-
Explanation of the appropriate use of performance forecasts and other related items (Explanation of the appropriate use of performance forecasts)
The forward-looking statements included in this flash report are based on the assumptions, forecasts, and plans of the Company as of the date on which this document is made public. The Company's actual results may differ substantially from such statements due to various risks and uncertainties.
Nippon Steel Corporation (5401)
The First Quarter of Fiscal 2020
Index of Attached Documents | ||
Quarterly Condensed Consolidated Financial Statements and Major Notes.................................................................... | 2 | |
(1) | Quarterly Condensed Consolidated Statements of Financial Position .................................................................... | 2 |
(2) | Quarterly Condensed Consolidated Statements of Profit or Loss and | |
Quarterly Condensed Consolidated Statements of Comprehensive Income or Loss .............................................. | 4 | |
(3) | Quarterly Condensed Consolidated Statements of Changes in Equity.................................................................... | 5 |
(4) | Notes to the Quarterly Condensed Consolidated Financial Statements .................................................................. | 7 |
(Going Concern Assumption) .............................................................................................................................. | 7 | |
(Changes in Accounting Estimates) ..................................................................................................................... | 7 |
1
Nippon Steel Corporation (5401)
The First Quarter of Fiscal 2020
Quarterly Condensed Consolidated Financial Statements and Major Notes
(1) Quarterly Condensed Consolidated Statements of Financial Position
(Millions of Yen) | |||
ASSETS | March 31, 2020 | June 30, 2020 | |
Current assets : | |||
Cash and cash equivalents | 289,459 | 390,616 | |
Trade and other receivables | 826,596 | 669,953 | |
Inventories | 1,532,181 | 1,508,352 | |
Other financial assets | 17,340 | 20,868 | |
Other current assets | 119,396 | 109,550 | |
Total current assets | 2,784,974 | 2,699,340 | |
Non-current assets : | |||
Property, plant and equipment | 2,812,542 | 2,824,549 | |
Right-of-use assets | 93,663 | 97,903 | |
Goodwill | 45,486 | 44,934 | |
Intangible assets | 96,677 | 91,616 | |
Investments accounted for using the equity method | 878,271 | 854,327 | |
Other financial assets | 481,117 | 493,302 | |
Defined benefit assets | 58,643 | 71,160 | |
Deferred tax assets | 186,457 | 177,418 | |
Other non-current assets | 7,132 | 6,948 | |
Total non-current assets | 4,659,990 | 4,662,160 | |
Total assets | 7,444,965 | 7,361,501 | |
2
Nippon Steel Corporation (5401)
The First Quarter of Fiscal 2020
(Millions of Yen) | ||||
LIABILITIES | March 31, 2020 | June 30, 2020 | ||
Current liabilities : | ||||
Trade and other payables | 1,449,801 | 1,211,967 | ||
Bonds, borrowings and lease liabilities | 376,900 | 509,274 | ||
Other financial liabilities | 2,189 | 3,077 | ||
Income taxes payable | 27,323 | 22,392 | ||
Other current liabilities | 38,978 | 47,836 | ||
Total current liabilities | 1,895,192 | 1,794,547 | ||
Non-current liabilities : | ||||
Bonds, borrowings and lease liabilities | 2,111,841 | 2,224,417 | ||
Other financial liabilities | 4,621 | 4,953 | ||
Defined benefit liabilities | 236,758 | 228,663 | ||
Deferred tax liabilities | 27,765 | 30,489 | ||
Other non-current liabilities | 172,154 | 175,729 | ||
Total non-current liabilities | 2,553,141 | 2,664,254 | ||
Total liabilities | 4,448,333 | 4,458,802 | ||
EQUITY | ||||
Common stock | 419,524 | 419,524 | ||
Capital surplus | 394,404 | 396,340 | ||
Retained earnings | 1,870,948 | 1,849,083 | ||
Treasury stock | (58,505) | (58,508) | ||
Other components of equity | 15,245 | (53,471) | ||
Total equity attributable to owners of the parent | 2,641,618 | 2,552,968 | ||
Non-controlling interests | 355,013 | 349,731 | ||
Total equity | 2,996,631 | 2,902,699 | ||
Total liabilities and equity | 7,444,965 | 7,361,501 | ||
3
Nippon Steel Corporation (5401)
The First Quarter of Fiscal 2020
(2) Quarterly Condensed Consolidated Statements of Profit or Loss and Quarterly Condensed Consolidated Statements of Comprehensive Income or Loss
Quarterly Condensed Consolidated Statements of Profit or Loss | (Millions of Yen) | ||
First quarter of | First quarter of | ||
Fiscal 2019 | Fiscal 2020 | ||
Revenue | 1,522,479 | 1,131,604 | |
Cost of sales | (1,349,543) | (1,040,808) | |
Gross profit | 172,935 | 90,796 | |
Selling, general and administrative expenses | (148,725) | (121,386) | |
Share of profit in investments accounted for using the equity method | 17,287 | 14,748 | |
Other operating income | 32,288 | 13,243 | |
Other operating expenses | (13,185) | (24,912) | |
Business profit(loss) | 60,600 | (27,510) | |
Operating profit(loss) | 60,600 | (27,510) | |
Finance income | 1,513 | 971 | |
Finance costs | (5,872) | (6,038) | |
Profit(loss) before income taxes | 56,241 | (32,577) | |
Income tax expense | (17,337) | (8,844) | |
Profit(loss) | 38,904 | (41,422) | |
Profit(loss) attributable to : | |||
Owners of the parent | 33,325 | (42,071) | |
Non-controlling interests | 5,578 | 648 | |
Earnings(loss) per share | |||
Basic earnings(loss) per share (Yen) | 36.20 | (45.69) | |
Quarterly Condensed Consolidated Statements of Comprehensive Income or Loss | (Millions of Yen) | ||
First quarter of | First quarter of | ||
Fiscal 2019 | Fiscal 2020 | ||
Profit(loss) | 38,904 | (41,422) | |
Other comprehensive income | |||
Items that cannot be reclassified to profit or loss | |||
Changes in fair value of financial assets measured at fair value | (8,713) | 15,483 | |
through other comprehensive income | |||
Remeasurements of defined benefit plans | 2,811 | 10,543 | |
Share of other comprehensive income of investments accounted | (1,398) | 6,079 | |
for using the equity method | |||
Subtotal | (7,300) | 32,107 |
Items that might be reclassified to profit or loss Changes in fair value of cash flow hedges
Foreign exchange differences on translation of foreign operations Share of other comprehensive income of investments accounted
for using the equity method
(3,471) | (1,456) |
(481) | (41,033) |
355 | (40,107) |
Subtotal | (3,596) | (82,596) |
Total other comprehensive income, net of tax | (10,897) | (50,489) |
Total comprehensive income | 28,006 | (91,911) |
Comprehensive income attributable to: | ||
Owners of the parent | 21,979 | (90,583) |
Non-controlling interests | 6,026 | (1,328) |
4
Nippon Steel Corporation (5401) | |||||||
The First Quarter of Fiscal 2020 | |||||||
(3) Quarterly Condensed Consolidated Statements of Changes in Equity | |||||||
First quarter of Fiscal 2019 | (Millions of Yen) | ||||||
Equity attributable to owners of the parent | |||||||
Other components of equity | |||||||
Changes in fair | |||||||
Common | Capital | Retained | Treasury | value of financial | |||
assets measured at | Remeasurements of | ||||||
stock | surplus | earnings | stock | fair value through | defined benefit | ||
other | plans | ||||||
comprehensive | |||||||
income | |||||||
Balance as of March 31, 2019 | 419,524 | 393,917 | 2,300,175 | (58,831) | 248,020 | ― | |
Changes of the year | |||||||
Comprehensive income | |||||||
Profit(loss) | 33,325 | ||||||
Other comprehensive income | (11,008) | 3,083 | |||||
Total comprehensive income | ― | ― | 33,325 | ― | (11,008) | 3,083 | |
Transactions with owners and others | |||||||
Cash dividends | (36,880) | ||||||
Purchases of treasury stock | (11) | ||||||
Disposals of treasury stock | (10) | 40 | |||||
Changes in ownership interests in subsidiaries | (2,169) | ||||||
Transfer from other components of equity | 6,412 | (3,329) | (3,083) | ||||
to retained earnings | |||||||
Changes in scope of consolidation | (228) | ||||||
Subtotal | ― | (2,180) | (30,468) | (199) | (3,329) | (3,083) | |
Balance as of June 30, 2019 | 419,524 | 391,737 | 2,303,032 | (59,030) | 233,682 | ― | |
Equity attributable to owners of the parent | |||||||
Other components of equity | |||||||
Foreign | Total equity | Non-controlling | |||||
exchange | Total equity | ||||||
Changes in fair | attributable to | ||||||
interests | |||||||
differences on | |||||||
value of cash | Total | owners of the | |||||
translation of | |||||||
flow hedges | parent | ||||||
foreign | |||||||
operations | |||||||
Balance as of March 31, 2019 | (4,433) | (67,585) | 176,000 | 3,230,788 | 376,579 | 3,607,367 | |
Changes of the year | |||||||
Comprehensive income | |||||||
Profit(loss) | ― | 33,325 | 5,578 | 38,904 | |||
Other comprehensive income | (3,037) | (382) | (11,345) | (11,345) | 448 | (10,897) | |
Total comprehensive income | (3,037) | (382) | (11,345) | 21,979 | 6,026 | 28,006 | |
Transactions with owners and others | |||||||
Cash dividends | ― | (36,880) | (4,656) | (41,537) | |||
Purchases of treasury stock | ― | (11) | (11) | ||||
Disposals of treasury stock | ― | 29 | 29 | ||||
Changes in ownership interests in subsidiaries | ― | (2,169) | 2,117 | (52) | |||
Transfer from other components of equity | (6,412) | ― | ― | ||||
to retained earnings | |||||||
Changes in scope of consolidation | ― | (228) | (326) | (554) | |||
Subtotal | ― | ― | (6,412) | (39,260) | (2,865) | (42,126) | |
Balance as of June 30, 2019 | (7,471) | (67,968) | 158,242 | 3,213,507 | 379,741 | 3,593,248 | |
5
Nippon Steel Corporation (5401)
The First Quarter of Fiscal 2020
First quarter of Fiscal 2020 | (Millions of Yen) | |||||
Equity attributable to owners of the parent | ||||||
Other components of equity | ||||||
Changes in fair | ||||||
Common | Capital | Retained | Treasury | value of financial | ||
assets measured at | Remeasurements of | |||||
stock | surplus | earnings | stock | fair value through | defined benefit | |
other | plans | |||||
comprehensive | ||||||
income | ||||||
Balance as of March 31, 2020 | 419,524 | 394,404 | 1,870,948 | (58,505) | 111,924 | ― |
Changes of the year | ||||||
Comprehensive income | ||||||
Profit(loss) | (42,071) | |||||
Other comprehensive income | 15,272 | 14,045 | ||||
Total comprehensive income | ― | ― | (42,071) | ― | 15,272 | 14,045 |
Transactions with owners and others | ||||||
Cash dividends | ||||||
Purchases of treasury stock | (4) | |||||
Disposals of treasury stock | (0) | 1 | ||||
Changes in ownership interests in subsidiaries | 1,936 | |||||
Transfer from other components of equity | 20,205 | (6,160) | (14,045) | |||
to retained earnings | ||||||
Changes in scope of consolidation | ||||||
Subtotal | ― | 1,935 | 20,205 | (2) | (6,160) | (14,045) |
Balance as of June 30, 2020 | 419,524 | 396,340 | 1,849,083 | (58,508) | 121,036 | ― |
Equity attributable to owners of the parent | ||||||
Other components of equity | ||||||
Foreign | Total equity | Non-controlling | ||||
exchange | Total equity | |||||
Changes in fair | attributable to | |||||
interests | ||||||
differences on | ||||||
value of cash | Total | owners of the | ||||
translation of | ||||||
flow hedges | parent | |||||
foreign | ||||||
operations | ||||||
Balance as of March 31, 2020 | (4,821) | (91,857) | 15,245 | 2,641,618 | 355,013 | 2,996,631 |
Changes of the year | ||||||
Comprehensive income | ||||||
Profit(loss) | ― | (42,071) | 648 | (41,422) | ||
Other comprehensive income | (2,792) | (75,037) | (48,511) | (48,511) | (1,977) | (50,489) |
Total comprehensive income | (2,792) | (75,037) | (48,511) | (90,583) | (1,328) | (91,911) |
Transactions with owners and others | ||||||
Cash dividends | ― | ― | (3,816) | (3,816) | ||
Purchases of treasury stock | ― | (4) | (4) | |||
Disposals of treasury stock | ― | 0 | 0 | |||
Changes in ownership interests in subsidiaries | ― | 1,936 | (131) | 1,805 | ||
Transfer from other components of equity | (20,205) | ― | ― | |||
to retained earnings | ||||||
Changes in scope of consolidation | ― | ― | (6) | (6) | ||
Subtotal | ― | ― | (20,205) | 1,933 | (3,953) | (2,020) |
Balance as of June 30, 2020 | (7,613) | (166,894) | (53,471) | 2,552,968 | 349,731 | 2,902,699 |
6
Nippon Steel Corporation (5401)
The First Quarter of Fiscal 2020
(4)Notes to the Quarterly Condensed Consolidated Financial Statements (Going Concern Assumption)
None
(Changes in Accounting Estimates)
Effective from the beginning of the first quarter of fiscal 2020, Nippon Steel changed the depreciation method for property, plant and equipment from the declining-balance to the straight-line method.
The Company's domestic steelworks have been operating for about 50 years, and their workforce is experiencing a transition to the next generation. In the midst of this trend, the Company is working to rebuild its "strength in manufacturing" and this includes the prevention of facility troubles. The Company also strives to rebuild a profit base that can be sustainable as a business. To achieve that, the Company takes up major structural reforms that can be described as the "second foundation stage" by promoting manufacturing infrastructure development including the refurbishing of core facilities. In addition, the Company is implementing thorough preventive and planned maintenance to prevent operational and facility troubles from taking place and has been striving to maximize the use of current production capacity to ensure stable production volume and reduced cost. The Company's future plans for facilities stipulate large-scale investment projects such as refurbishment of coke ovens and relining of blast furnaces. The Company expects that large-scale investment for aging facilities may increase and represent a larger portion of the total capital investments. Accordingly, the Company considers that the straight-line method, which equalizes the annual amount of depreciation cost over the useful life, is more in line with the actual situation of recent Nippon Steel compared to the declining-balance method.
With this change, compared to the previous method, depreciation expenses decreased by ¥15,412 million and business profit, operating profit, and profit before income taxes increased by ¥8,374 million, respectively, during the first quarter of fiscal 2020.
7
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Nippon Steel & Sumitomo Metal Corporation published this content on 04 August 2020 and is solely responsible for the information contained therein. Distributed by Public, unedited and unaltered, on 04 August 2020 06:06:17 UTC