Amada : Summary Report on the Consolidated Results for the Nine Months Ended December 31, 2019 （280KB）

Note: This English translation is solely for reference purposes and not a legally definitive translation of the original Japanese text. In the event a difference arises regarding the meaning herein, the original Japanese version will prevail as the official authoritative version.

February 7, 2020

Consolidated Financial Results for the Nine Months Ended December 31, 2019

(IFRS)

AMADA HOLDINGS CO., LTD.

Listed on the First Section of the TSE

Stock Code: 6113

(URL https://www.amadaholdings.co.jp) Representative: Tsutomu Isobe, President

Contact: Hidekazu Kudo, Director and Executive General Manager of Financial Division TEL: [phone]

Scheduled date to file quarterly securities report: February 12, 2020

Scheduled date to commence dividend payments: －

Preparation of supplementary material on quarterly financial results: Yes

Holding of quarterly financial results briefing: Yes (for investment analysts and institutional investors)

						(Amounts less than one million yen are truncated.)
1. Consolidated Financial Results for the Nine Months Ended December 31, 2019 (from April 1, 2019 to December 31, 2019)
(1) Operating Results (Cumulative)						Percentages indicate year-on-year increase (decrease).
	Revenue		Operating profit	Profit before tax	Profit		Profit attributable to
			owners of parent
	Millions of	%	Millions of	%	Millions of	%	Millions of	%	Millions of	%
	yen	yen	yen	yen	yen
Nine months ended December 31, 2019	228,354	(3.1)	25,044	(16.8)	26,117	(15.4)	18,114	(16.9)	17,898	(17.0)
Nine months ended December 31, 2018	235,727	13.4	30,084	15.1	30,861	5.0	21,795	5.7	21,571	5.9
Note: Comprehensive income:	Nine months ended December 31, 2019:		¥17,261 millions	(5.8) %
	Nine months ended December 31, 2018:		¥18,318 millions	(36.1) %

	Basic earnings per	Diluted earnings per
	share	share
	Yen	Yen
Nine months ended December 31, 2019	50.21	50.21
Nine months ended December 31, 2018	59.00	59.00

Note: In the first quarter ended June 30, 2019, the Company finalized a provisional accounting treatment related to business combinations.

The figures in nine months ended December 31, 2018, reflect the finalization of the provisional accounting treatment.

(2) Financial Position

			Equity attributable to	Ratio of equity
	Total assets	Total equity	attributable to owners
	owners of parent
			of parent
	Millions of yen	Millions of yen	Millions of yen	%
As of December 31, 2019	570,917	443,051	439,108	76.9
As of March 31, 2019	567,861	445,280	441,431	77.7

Note: In the first quarter ended June 30, 2019, the Company finalized a provisional accounting treatment related to business combinations.

The figures in the fiscal year ended March 31, 2019, reflect the finalization of the provisional accounting treatment.

2. Dividends

		Dividends per share
	First	Second	Third	Fiscal year-	Total
	quarter	quarter	quarter	end
	Yen	Yen	Yen	Yen	Yen
Fiscal year ended March 31, 2019	－	21.00	－	25.00	46.00
Fiscal year ended March 31, 2020	－	24.00	－
Fiscal year ended March 31, 2020 (Forecast)				24.00	48.00
Notes: Revision to dividend forecasts most recently announced: None
3. Consolidated Financial Forecasts for the Fiscal Year Ending March 31, 2020 (from April 1, 2019 to March 31, 2020)
				Percentages indicate year-on-year increase (decrease)
	Revenue	Operating profit	Profit attributable to		Basic earnings per
	owners of parent		share
	Millions of	%	Millions of	%	Millions of	%		Yen
	yen	yen	yen
Fiscal year ending March 31, 2020 (Forecast)	320,000	(5.4)	34,500	(23.6)	24,500	(26.4)		68.99

Note: Revision to consolidated financial forecasts most recently announced: Yes

In the first quarter ended June 30, 2019, the Company finalized a provisional accounting treatment related to business combinations.

The figures in the fiscal year ended March 31, 2019, reflect the finalization of the provisional accounting treatment. Therefore, comparisons with the previous term are also done using the finalized figures.

4. Other Items

1. Changes in the scope of consolidation for significant subsidiaries during the nine months ended December 31, 2019: None (Changes in specified subsidiaries resulting in change in the scope of consolidation)
2. Changes in accounting policies and changes in accounting estimates:

1. Changes in accounting policies required by IFRS: Yes
2. Changes in accounting policies other than 1) above: None
3. Changes in accounting estimates: None

1. Number of shares issued (common stock)

1. Number of shares issued at end of period (including treasury shares)

	As of December 31, 2019	368,115,217	shares
	As of March 31, 2019	368,115,217	shares
2)	Number of treasury shares at end of period
	As of December 31, 2019	12,979,177	shares
	As of March 31, 2019	11,503,611	shares
3)	Average number of shares during period
	Nine months ended December 31, 2019	356,449,061 shares
	Nine months ended December 31, 2018	365,628,865	shares

*These quarterly consolidated financial results are outside the scope of the quarterly review procedures by a certified public accountant or an auditing firm.

* Explanation regarding the appropriate use of financial results forecast and other special notes

The consolidated financial forecasts mentioned in this document and other forward-looking statements are based on information available to and on certain reasonable assumptions by the Company as of today. Accordingly, actual results may differ significantly from the forecasts herein due to various factors.

Condensed Quarterly Consolidated Financial Statements and Primary Notes

Condensed Quarterly Consolidated Statement of Financial Position

	(Millions of yen; amounts less than one million yen are truncated.)
Period	As of March 31, 2019	As of December 31, 2019
Item
(Assets)
Current assets:
Cash and cash equivalents	56,295	51,485
Trade and other receivables	140,965	117,505
Inventories	100,391	115,701
Other financial assets	19,939	12,345
Other current assets	9,571	11,560
Total current assets	327,164	308,598
Non-current assets:
Property, plant and equipment	130,914	151,255
Goodwill	4,811	4,727
Intangible assets	14,623	14,942
Investments accounted for using equity method	1,638	1,855
Other financial assets	65,734	65,100
Deferred tax assets	13,953	13,182
Other non-current assets	9,021	11,255
Total non-current assets	240,697	262,319
Total asset	567,861	570,917

		(Millions of yen; amounts less than one million yen are truncated.)
	Period	As of March 31, 2019	As of December 31, 2019
Item
(Liabilities and Equity)
Liabilities
Current liabilities:
Trade and other payables		65,917	55,587
Borrowings		5,366	16,235
Income taxes payable		7,918	2,112
Other financial liabilities		931	4,415
Provisions		1,900	1,822
Other current liabilities		23,961	23,638
Total current liabilities		105,997	103,811
Non-current assets:
Borrowings		4,556	4,509
Other financial liabilities		2,907	10,169
Retirement benefit liability		2,855	2,906
Provisions		6	6
Deferred tax liabilities		2,198	2,605
Other non-current liabilities		4,060	3,858
Total non-current liabilities		16,584	24,055
Total liabilities		122,581	127,866
Equity
Share capital		54,768	54,768
Capital surplus		153,119	153,111
Retained earnings		243,596	244,021
Treasury shares		(11,608)	(13,489)
Other components of equity		1,555	696
Total equity attributable to owners of parent		441,431	439,108
Non-controlling interests		3,848	3,942
Total equity		445,280	443,051
Total liabilities and equity		567,861	570,917

Condensed Quarterly Consolidated Statement of Profit or Loss

Nine months ended December 31, 2018 and 2019

(Millions of yen; amounts less than one million yen are truncated.)

Period	Nine months ended	Nine months ended
Item	December 31, 2018	December 31, 2019
Revenue	235,727	228,354
Cost of sales	(131,524)	(130,515)
Gross profit	104,203	97,839
Selling, general and administrative expenses	(74,679)	(73,559)
Other income	1,009	1,270
Other expenses	(448)	(505)
Operating profit	30,084	25,044
Finance income	1,208	1,489
Finance costs	(659)	(735)
Share of profit of investments accounted for using equity method	226	319
Profit before tax	30,861	26,117
Income tax expense	(9,065)	(8,003)
Profit	21,795	18,114
Profit attributable to:
Owners of parent	21,571	17,898
Non-controlling interests	223	216
Profit	21,795	18,114
Earnings per share
Basic earnings per share (Yen)	59.00	50.21
Diluted earnings per share (Yen)	59.00	50.21

Condensed Quarterly Consolidated Statement of Comprehensive Income

Nine months ended December 31, 2018 and 2019

(Millions of yen; amounts less than one million yen are truncated.)

Period	Nine months ended	Nine months ended
Item	December 31, 2018	December 31, 2019
Profit	21,795	18,114
Other comprehensive income
Items that will not be reclassified to profit or loss:
Equity financial assets measured at fair value through other	(1,441)	2,420
comprehensive income
Total of items	(1,441)	2,420
Items that may be reclassified subsequently to profit or loss
Exchange differences on translation of foreign operations	(1,964)	(3,226)
Debt financial assets measured at fair value through other	(36)	(23)
comprehensive income
Share of other comprehensive income of investments	(33)	(22)
accounted for using equity method
Total of items	(2,034)	(3,273)
Total other comprehensive income	(3,476)	(853)
Comprehensive income	18,318	17,261
Comprehensive income attributable to:
Owners of parent	18,154	17,039
Non-controlling interests	164	221
Comprehensive income	18,318	17,261

Condensed Quarterly Consolidated Statement of Changes in Equity

Nine months ended December 31, 2018 (from April 1, 2018 to December 31, 2018)

(Millions of yen; amounts less than one million yen are truncated.)

Equity attributable to owners of parent

Other components of equity

Financial

Share of

assets

other

measured

Exchange

comprehens

Non-

Total

Share

Capital

Retained

Treasury

at fair

differences

ive income

controlling

Total

equity

value

on

of

interests

capital

surplus

earnings

shares

Total

through

translation

investments

other

of foreign

accounted

comprehe

operations

for using

nsive

equity

income

method

Balance at April 1, 2018

54,768

163,217

224,850

(11,695)

529

2,351

70

2,950

434,091

3,615

437,707

Profit

－

－

21,571

－

－

－

－

－

21,571

223

21,795

Other comprehensive income

－

－

－

－

(1,478)

(1,905)

(33)

(3,417)

(3,417)

(59)

(3,476)

Comprehensive income

－

－

21,571

－

(1,478)

(1,905)

(33)

(3,417)

18,154

164

18,318

Dividends

－

－

(15,729)

－

－

－

－

－

(15,729)

(158)

(15,887)

Purchase of treasury shares

－

－

－

(1,654)

－

－

－

－

(1,654)

－

(1,654)

Disposal of treasury shares

(including through the exercise of

－

0

－

0

－

－

－

－

0

－

0

share options)

Increase/(decrease) due to newly

－

－

－

－

－

－

－

－

－

77

77

consolidated subsidiaries

Total transactions with owners

－

0

(15,729)

(1,654)

－

－

－

－

(17,384)

(80)

(17,465)

Balance at December 31, 2018

54,768

163,217

230,692

(13,349)

(949)

446

36

(466)

434,861

3,699

438,561

Nine months ended December 31, 2019 (from April 1, 2019 to December 31, 2019)

(Millions of yen; amounts less than one million yen are truncated.)

Equity attributable to owners of parent

Other components of equity

Financial

Share of

assets

other

Non-

measured

Exchange

comprehens

Total

at fair

differences

ive income

controlling

Share

Capital

Retained

Treasury

Total

equity

value

on

of

interests

capital

surplus

earnings

shares

Total

through

translation

investments

other

of foreign

accounted

comprehe

operations

for using

nsive

equity

income

method

Balance at April 1, 2019

54,768

153,119

243,596

(11,608)

651

888

15

1,555

441,431

3,848

445,280

Profit

－

－

17,898

－

－

－

－

－

17,898

216

18,114

Other comprehensive income

－

－

－

－

2,396

(3,231)

(22)

(858)

(858)

5

(853)

Comprehensive income

－

－

17,898

－

2,396

(3,231)

(22)

(858)

17,039

221

17,261

Dividends

－

－

(17,473)

－

－

－

－

－

(17,473)

(127)

(17,601)

Purchase of treasury shares

－

－

－

(1,900)

－

－

－

－

(1,900)

－

(1,900)

Disposal of treasury shares

(including through the exercise of

－

(7)

－

19

－

－

－

－

11

－

11

share options)

Increase/(decrease) due to newly

－

－

－

－

－

－

－

－

－

－

－

consolidated subsidiaries

Total transactions with owners

－

(7)

(17,473)

(1,881)

－

－

－

－

(19,363)

(127)

(19,490)

Balance at December 31, 2019

54,768

153,111

244,021

(13,489)

3,047

(2,343)

(7)

696

439,108

3,942

443,051

Condensed Quarterly Consolidated Statement of Cash Flows

Nine months ended December 31, 2018 and 2019

(Millions of yen; amounts less than one million yen are truncated.)

Period	Nine months ended	Nine months ended
Item	December 31, 2018	December 31, 2019
Cash flows from operating activities
Profit before tax	30,861	26,117
Depreciation and amortization	9,121	11,877
Finance income and finance costs	(549)	(1,362)
Share of profit of investments accounted for using equity method	(226)	(319)
Loss (gain) on sales and retirement of fixed assets	169	46
Decrease (increase) in inventories	(18,591)	(15,516)
Decrease (increase) in trade and other receivables	15,123	23,019
Increase (decrease) in trade and other payables	1,449	(10,365)
Increase (decrease) in retirement benefit liability	(831)	(956)
Increase (decrease) in provisions	16	(59)
Other	(4,560)	2,672
Subtotal	31,981	35,155
Interest received	786	660
Dividends received	352	184
Interest paid	(104)	(94)
Income taxes paid	(13,968)	(16,353)
Net cash provided by (used in) operating activities	19,046	19,552
Cash flows from investing activities
Net decrease (increase) in time deposits	(1,006)	6,101
Purchase of securities	(1,000)	－
Proceeds from sale of marketable securities	5,900	3,309
Purchase of investment securities	(5,803)	(3,254)
Proceeds from sale of investment securities	861	5,938
Purchase of property, plant and equipment	(10,728)	(20,276)
Proceeds from sale of property, plant and equipment	253	261
Purchase of intangible assets	(3,129)	(3,820)
Payments from purchase of shares of subsidiaries resulting in	(12,513)	－
change in scope of consolidation
Other	133	(1,038)
Net cash provided by (used in) investing activities	(27,032)	(12,779)
Cash flows from financing activities
Proceeds from short-term borrowings	380	－
Repayments of short-term borrowings	(431)	(143)
Net increase (decrease) in short-term borrowings	2,323	12,116
Proceeds from long-term borrowings	1,119	11
Repayments of long-term borrowings	(240)	(1,135)
Repayments of lease liabilities	(38)	(1,875)
Payments for purchase of treasury shares	(1,654)	(1,900)
Dividends paid	(15,718)	(17,533)
Dividends paid to non-controlling interests	(158)	(127)
Other	0	11
Net cash provided by (used in) financing activities	(14,418)	(10,575)
Effect of exchange rate changes on cash and cash equivalents	(875)	(1,007)
Effect of cash and cash equivalents included in assets held for	(109)	－
sale
Net increase (decrease) in cash and cash equivalents	(23,389)	(4,810)
Cash and cash equivalents at beginning of period	80,464	56,295
Cash and cash equivalents at end of period	57,074	51,485

Segment Information

Nine months ended December 31, 2018 (from April 1, 2018 to December 31, 2018)

Millions of yen; amounts less than one million yen are truncated.)

	Metalworking	Metal Machine	Other	Total	Reconciliations	Consolidated
	Machinery	Tools
Revenue
Revenue from external customers	189,814	45,125	788	235,727	－	235,727
Intersegment revenue	5	6	－	11	(11)	－
Total	189,819	45,131	788	235,739	(11)	235,727
Segment profit	23,357	6,422	304	30,084	－	30,084
Finance income						1,208
Finance costs						(659)
Share of profit of investments						226
accounted for using equity method
Profit before tax						30,861

Notes:

1. The "Other" classification refers to businesses not included within reportable segments. It principally comprises real estate leasing.
2. Segment profit is adjusted from operating profit.
3. In the first quarter ended June 30, 2019, the Company finalized a provisional accounting treatment related to business combinations. The financial figures in nine months ended December 31, 2018, reflect the finalization of the provisional accounting treatment.

Nine months ended December 31, 2019 (from April 1, 2019 to December 31, 2019)

Millions of yen; amounts less than one million yen are truncated.)

	Metalworking	Metal Machine	Other	Total	Reconciliations	Consolidated
	Machinery	Tools
Revenue
Revenue from external customers	181,271	46,150	932	228,354	－	228,354
Intersegment revenue	5	3	－	8	(8)	－
Total	181,276	46,154	932	228,363	(8)	228,354
Segment profit	19,212	5,212	619	25,044	－	25,044
Finance income						1,489
Finance costs						(735)
Share of profit of investments						319
accounted for using equity method
Profit before tax						26,117

Notes:

1. The "Other" classification refers to businesses not included within reportable segments. It principally comprises real estate leasing.
2. Segment profit is adjusted from operating profit.

Supplementary Information

Status of Orders Received and Sales (Consolidated)
1. Orders Received
						(Millions of yen; amounts less than one million yen are truncated.)
Period	Nine months ended December 31, 2018	Nine months ended December 31, 2019
	Orders received	Balance of outstanding	Orders received	Balance of outstanding
	orders		orders
Divisions	Amount		Ratio	Amount		Ratio	Amount		Ratio	Amount		Ratio
			%			%			%			%
Sheet Metal Division	174,937		70.5	67,566		70.1	166,197		71.3	64,533		75.2
Micro Welding Division	26,607		10.7	10,412		10.8	20,590		8.8	6,739		7.8
Cutting Division	28,528		11.5	5,842		6.1	26,996		11.6	5,118		6.0
Stamping Presses Division	10,816		4.4	8,648		9.0	14,548		6.2	7,303		8.5
Grinding Division	6,517		2.6	3,860		4.0	4,004		1.7	2,107		2.5
Others	787		0.3	3		0.0	930		0.4	－		－
Total	248,195		100.0	96,333		100.0	233,268		100.0	85,801		100.0
2. Sales Results
						(Millions of yen; amounts less than one million yen are truncated.)
Period	Nine months ended December 31, 2018	Nine months ended December 31, 2019
Divisions	Amount		Ratio		Amount		Ratio
						%						%
Sheet Metal Division			168,012			71.3			158,632			69.5
Micro Welding Division			21,801			9.2			22,639			9.9
Cutting Division			27,873			11.9			26,835			11.7
Stamping Presses Division			11,574			4.9			14,302			6.3
Grinding Division			5,677			2.4			5,013			2.2
Others			788			0.3			932			0.4
Total			235,727			100.0			228,354			100.0

Note: For "Status of Orders Received and Sales," amounts exclude consumption tax.

Status of Sales revenue to Customers by Geographic Region

				(Millions of yen; amounts less than one million yen are truncated.)
	Period	Nine months ended December 31, 2018	Nine months ended December 31, 2019	Percentage change
Regions	Amount	Ratio	Amount	Ratio
			%		%	%
Japan	98,798	41.9	99,718	43.7	0.9
Overseas	136,929	58.1	128,636	56.3	(6.1)
	North America	48,609	20.6	50,732	22.2	4.4
	Europe	45,012	19.1	42,599	18.6	(5.4)
	Asia and other regions	43,307	18.4	35,304	15.5	(18.5)
	Total	235,727	100.0	228,354	100.0	(3.1)