Summary of Consolidated Financial Statements
For the Second Quarter Ended June 30, 2020
(Japan GAAP)
August 13, 2020
Name of the Company: ASICS Corporation
Listing Exchanges: Tokyo
Code No.: 7936
URL: https://corp.asics.com/en/
President and COO, Representative Director: Yasuhito Hirota
Date of filing Securities Report by quarter: August 14, 2020
Date of scheduled payment of dividends: -
Quarterly Results Supplemental Materials: Yes
Quarterly Results Presentation Meeting: Yes (For institutional investors and analysts in Japan)
(Amounts less than one million yen are truncated)
1. Consolidated results for the second quarter ended June 30, 2020 (January 1, 2020 - June 30, 2020)
- Consolidated business results (Accumulated)
(The percentages indicate the rates of increase or decrease compared with the corresponding period of the previous fiscal year)
Net sales | Operating income | Ordinary income | Profit attributable to | |||||
owners of parent | ||||||||
MY | % | MY | % | MY | % | MY | % | |
2nd quarter ended June 30, 2020 | 146,897 | (21.5) | (3,873) | - | (5,982) | - | (6,266) | - |
2nd quarter ended June 30, 2019 | 187,204 | (2.9) | 8,589 | 1.1 | 9,968 | 53.5 | 5,504 | 60.9 |
(Note) Comprehensive income: 2nd quarter ended June 30, 2020: ¥ (9,583) million (- %) 2nd quarter ended June 30, 2019: ¥ 1,158 million (- %)
Net income | Diluted net | |||||||||||||||
per share | income per share | |||||||||||||||
Yen | Yen | |||||||||||||||
2nd quarter ended June 30, 2020 | (34.29) | - | ||||||||||||||
2nd quarter ended June 30, 2019 | 29.16 | 28.55 | ||||||||||||||
(2) | Consolidated financial position | |||||||||||||||
Total assets | Net assets | Shareholders' | ||||||||||||||
equity ratio | ||||||||||||||||
MY | MY | % | ||||||||||||||
As of June 30, 2020 | 333,864 | 139,811 | 41.7 | |||||||||||||
As of December 31, 2019 | 316,115 | 152,323 | 48.0 | |||||||||||||
(Reference) Shareholders' equity: June 30, 2020: | ¥ 139,249 million | December 31, 2019: ¥ 151,706 million | ||||||||||||||
2. | Dividends | |||||||||||||||
Cash dividend per share | ||||||||||||||||
(Record date) | End of 1st | End of 2nd | End of 3rd | End of year | Annual | |||||||||||
quarter | quarter | quarter | ||||||||||||||
Yen | Yen | Yen | Yen | Yen | ||||||||||||
FY ended December 31, 2019 | - | 12.00 | - | 18.00 | 30.00 | |||||||||||
FY ending December 31, 2020 | - | 0.00 | ||||||||||||||
FY | ending December 31, 2020 | - | 24.00 | 24.00 | ||||||||||||
(Projected) | ||||||||||||||||
(Note) Changes in projected dividends: Yes |
- FY Ended December 31, 2019: Ordinary dividend 24.00 Yen, 70th anniversary commemorative dividend 6.00 Yen
FY Ending December 31, 2020(Projected): Ordinary dividend 24.00 Yen
1
3. Forecast of consolidated business results for the fiscal year ending December 31, 2020 (January 1, 2020 - December 31, 2020)
(The full-year percentages indicate the rates of increase or decrease compared with the previous fiscal year)
Net sales | Operating income | Ordinary income | Profit attributable to | Net income per | |||||
owners of parent | share | ||||||||
MY | % | MY | % | MY | % | MY | % | Yen | |
Full-year | 300,000 | (20.6) | (14,000) | - | (17,000) | - | (22,000) | - | (120.21) |
(Note) Changes in forecast of consolidated business results: Yes |
- Notes
- Changes in significant subsidiaries during the fiscal year (changes in specified subsidiaries that caused changes in the scope of consolidation): None
- Adopting accounting treatment simplified or specialized for quarterly consolidation: Yes
- Changes in accounting policy, changes in accounting estimates, and changes in presentation due to revisions
- Changes in accounting policy to conform to revisions in accounting standards and others: Adopted: None
- Changes in accounting policy adopted otherwise than in: None Changes in accounting estimates: None
Changes in presentation due to revisions: None
- Number of shares (of common stock) issued and outstanding
Number of shares outstanding (including treasury shares) at fiscal end:
June 30, 2020 | 189,870,559 shares | December 31, 2019 | 189,870,559 shares |
- Number of treasury shares at fiscal end:
June 30, 2020 | 6,850,532 shares | December 31, 2019 | 7,179,322 shares |
- Average number of shares during the term:
2nd quarter ended June 30, 2020 | 182,763,533 shares |
2nd quarter ended June 30, 2019 | 188,756,638 shares |
- Summary of Consolidated Financial Statements is not subjected to quarterly review
- Explanation of appropriate use of business performance forecasts; other special items(Notes to the description about future, other)
The performance forecasts above are estimated based on information available as of the date hereof. This may cause actual results to differ from stated projections due to changing business conditions or other factors.
(How to access supplemental materials on quarterly business results)
We plan to post the supplemental materials on business results on Company's website (https://corp.asics.com/en/investor_relations/library/financial_summary) on Thursday, August 13, 2020.
(How to access materials on the details of presentation meeting on business results)
The Company is scheduled to hold presentation meeting on business results for institutional investors and analysts on Friday, August 14, 2020. We plan to post the materials used in the meeting on the Company's website (https://corp.asics.com/en/investor_relations/library/financial_summary) on Thursday, August 13, 2020.
2
1. Qualitative information for consolidated business results
(1) Explanation on business results
Major initiatives during the second quarter ended June 30, 2020
Due to the global spread of the novel coronavirus disease (COVID-19), ASICS Group ("the Group") continued to face a challenging situation, such as cancellation or scale-down of various competitions, temporary closures of own retail stores and the slump in personal consumption. However, there were signs of recovery in some regions where economic activities were resumed.
- The Group implemented the following initiatives to deal with the spread of COVID-19.
- Digital
E-commerce sales increased worldwide.
Sales increased by 151% in North America, 139% in Europe, and 103% in consolidated level. In order to strengthen the digital field, the Group developed worldwide virtual races using ASICS Runkeeper and promoted METARACER by digital marketing such as social networking services when it was launched.
- S.G.& A. expenses controls
The Group saved the S.G.& A. expenses globally, including marketing expenses, in order to improve profitability in the situation that the sales decreased due to the spread of COVID-19. Due in part to the transfer some expenses of own retail stores to extraordinary losses, S.G.& A. expenses were reduced by ¥6.2 billion compared to the last year, by ¥20.5 billion compared to the plan.
- Inventory management
In response to the result of Q2 and second half sales environment, the Group have enhanced our inventory management, such as by canceling some production orders.
The Group also changed the schedule of new product launches in second half to optimize sales opportunities.
In addition, the Group grasped the status of inventories and returns in wholesale due to the temporary closures of stores, and promptly allocated inventories for e-commerce sales. Through these measures, the Group responded to the dramatic changes in the sales and distribution structure at each sales company.
- In China, all own retail stores reopened in April, ahead of others in the world. Net sales increased by 23% during the Q2 period. E-commerce sales in June increased by 84%, due in part to an e-commerce event of comparable scale to "Single's Day".
- For Performance Running, the Group launched the "Kayano 27", high-performance running shoes that pursue stability and comfortable running, and the "Metaracer", the most advanced running shoes in the history of ASICS with a built-in carbon plate. With the launch of METARACER, the Group now has a full lineup of shoes in the Performance Running category. The Group also enhanced product presentation videos to help people better understand our products and promoted our products by digital media through influencers and YouTubers.
3
-
For Onitsuka Tiger, the Group launched a brand campaign with worldwide artist Willow
Smith who is our brand ambassador."
In harmony with Ms. Willow, the Group has created an unprecedented worldview of the Onitsuka Tiger brand together. - For sustainability, the Group has released the "Sustainability Report 2019."
In addition, corresponding to the effect of the spread of COVID-19 on the supply chain, the Group supported manufacturers to survive the economic disruption caused by the COVID-19 and to protect workers health and safety in response to the "Call to Action" by the International Labour Organization (ILO).
-
For Onitsuka Tiger, the Group launched a brand campaign with worldwide artist Willow
- Net sales
Net sales decreased 21.5% to ¥146,897 million as a result of factors such as temporary closures of own retail stores and our customers' retail stores due to the impact of COVID-19.
2) Gross profit
Gross profit decreased 20.7% to ¥70,583 million due to the impact of the decrease in net sales described above.
3) Operating loss
Operating loss was ¥3,873 million due to the impact of the decrease in net sales described above, as well as due to an increase in sales commissions, etc.
4) Ordinary loss
Ordinary loss was ¥5,982 million due to the above, as well as due mainly to the recording of foreign exchange loss resulting from the impact of the depreciation of currencies in countries with emerging economies.
5) Loss attributable to owners of parent
Loss attributable to owners of parent was ¥6,266 million due to the above, as well as due mainly to the recording of loss on temporary closing of stores despite the recording of income tax refunds at a subsidiary in the U.S.
Business results by category were as follows.
The results for the six months ended June 30, 2019 have been reclassified to reflect changes of the aggregation method for some categories that were made in the first quarter ended March 31, 2020.
(Millions of yen)
Net sales | Operating income | ||||||
Category | FY2020 | FY2019 | Increase | FY2020 | FY2019 | Increase | |
Jan 1 to Jun 30 | Jan 1 to Jun 30 | (Decrease) | Jan 1 to Jun 30 | Jan 1 to Jun 30 | (Decrease) | ||
Performance Running | 70,936 | 83,573 | (12,637) | 2,627 | 2,985 | (358) | |
Core Performance Sports | 16,183 | 21,720 | (5,537) | (1,072) | 376 | (1,448) | |
Sports Style | 12,602 | 16,310 | (3,708) | (838) | 488 | (1,326) | |
Apparel and Equipment | 12,532 | 19,680 | (7,148) | Deficit | Deficit | - | |
Onitsuka Tiger | 15,682 | 22,921 | (7,238) | 737 | 5,136 | (4,398) |
4
1) Performance Running
Net sales decreased 15.1% to ¥70,936 million due to weak sales in the other regions as a result of the impact of the spread of COVID-19, despite an early recovery from the impact of COVID-19 in Greater China, as well as strong sales in the Oceanian region and a recovery in the North American region that led to an increase in monthly sales in June. Operating income decreased 12.0% to ¥2,627 million.
2) Core Performance Sports
Net sales decreased 25.5% to ¥16,183 million. Operating loss was ¥1,072 million.
3) Sports Style
Net sales decreased 22.7% to ¥12,602 million. Operating loss was ¥838 million.
4) Apparel and Equipment
Net sales decreased 36.3% to ¥12,532 million. An operating loss persisted.
5) Onitsuka Tiger
Net sales decreased 31.6% to ¥15,682 million. Operating income decreased 85.6% to ¥737 million.
Business results by reportable segments were as follows.
1) Japanese region
Net sales decreased 24.0% to ¥47,004 million due to the impact of the spread of COVID-19. Segment loss was ¥1,509 million due to the impact of the decrease in net sales described above, as well as due to increased costs of own retail stores.
2) North American region
Net sales decreased 27.1% to ¥28,414 million due to the impact of the spread of COVID-19. Segment loss was ¥2,134 million.
3) European region
Net sales decreased 20.5% to ¥37,094 million due to the impact of the spread of COVID-19. Segment income decreased 29.5% to ¥737 million mainly due to the impact of the decrease in net sales described above.
4) Greater China region
Net sales decreased 0.7% to ¥18,525 million due to the impact of the spread of COVID-19. Segment income decreased 32.6% to ¥2,133 million mainly due to the impact of the decrease in net sales described above.
5) Oceanian region
Net sales increased 1.4% to ¥8,587 million due to strong sales of the Performance Running category and the Sports Style category.
Segment income increased 4.8% to ¥1,087 million mainly due to the impact of the increase in net sales described above.
6) Southeast and South Asian regions
Net sales decreased 34.0% to ¥3,663 million due to the impact of the spread of COVID-19.
5
Segment loss was ¥71 million.
7) Other regions
Net sales decreased 34.8% to ¥11,993 million due to the impact of the spread of COVID-19 in South Korea and South America. Segment loss was ¥317 million.
(2) Explanation on financial position
As for the consolidated financial position as of June 30, 2020, total assets increased 5.6% from the end of the previous fiscal year to ¥333,864 million, total liabilities increased 18.5% from the end of the previous fiscal year to ¥194,052 million and net assets decreased 8.2% from the end of the previous fiscal year to ¥139,811 million.
1) Current assets
Current assets increased 9.0% to ¥233,809 million mainly due to an increase in cash and deposits.
2) Non-current assets
Non-current assets decreased 1.5% to ¥100,055 million mainly due to decreases in right of use assets and investment securities.
3) Current liabilities
Current liabilities increased 36.3% to ¥110,569 million mainly due to an increase in short-term bank loans.
4) Non-current liabilities
Non-current liabilities increased 1.0% to ¥83,482 million mainly due to an increase in long-term loans.
5) Shareholders' equity
Shareholders' equity decreased 5.9% to ¥146,320 million mainly due to a decrease in retained earnings.
6) Other comprehensive loss
Other comprehensive loss was ¥7,070 million mainly due to a decrease in translation adjustments.
As for cash flows as of June 30, 2020, cash and cash equivalents (hereinafter, "cash") increased ¥15,386 million from the end of the previous fiscal year to ¥53,371 million.
The respective cash flow positions and main factors behind the changes are as follows.
1) Cash flows from operating activities
Net cash used in operating activities was ¥9,113 million, an increase of ¥12,642 million compared with the same period in the previous fiscal year.
Major uses of cash were ¥16,364 million for an increase in inventories and ¥9,308 million for loss before income taxes, while major sources of cash were ¥11,200 million from a decrease in notes and accounts receivable-trade and ¥6,732 million from depreciation and amortization.
2) Cash flows from investing activities
Net cash used in investing activities was ¥5,181 million, an increase of ¥536 million compared with the same period in the previous fiscal year.
6
Major uses of cash were ¥2,920 million for purchases of intangible assets and ¥1,626 million for purchases of property, plant and equipment, while major sources of cash were ¥230 million in proceeds from withdrawal of time deposits.
3) Cash flows from financing activities
Net cash provided by financing activities was ¥30,777 million, an increase of ¥46,572 million compared with the same period in the previous fiscal year.
Major sources of cash were ¥35,176 million from an increase in short-term bank loans and ¥2,500 million in proceeds from long-term loans, while major uses of cash were ¥3,491 million for repayment of lease obligations and ¥3,289 million for cash dividends paid.
- Explanation on forecast for consolidated business results and others (Forecast of consolidated business results)
The forecast of business results for the fiscal year ending December 31, 2020 was undetermined due to the difficulty of reasonably forecasting the impact of the spread of COVID-19 on the business activities of the Group. However, as economic activity is gradually resuming with the lifting of state of emergency declarations and the relaxation of lockdown measures in Japan and abroad, we hereby announce that we have calculated the consolidated business results forecast based on the information currently available. For details, please refer to "Notice Concerning Consolidated Business Results Forecast and Projected Dividends for the Fiscal Year Ending December 31, 2020" announced today (August 13, 2020).
(Forecast of dividends)
The Company's basic policy for distribution of profits to our shareholders is to invest proactively to improve profitability in order to enhance our corporate value and net income per share while at the same time paying a stable dividend.
However, the Company regrettably determined to pass the interim dividend under the circumstances in which it is uncertain when the pandemic will end such as another major downturn in economic activity because of COVID 19, while the Company is projected to pay a year-end dividend of 24 yen per share. As a result, the current annual projected dividend is 24 yen per share, which is the same level of the fiscal year ended December 31, 2019 without the commemorative dividend.
These projected dividends are based on the assumption that the current business results forecast will remain unchanged while the actual results may differ significantly from this forecast due to various factors. In the event that matters to be disclosed occur, the Company will amend to the projected dividend.
(4) Information about risks related to COVID-19
The Annual Report for the fiscal year ended December 31, 2019 contains information about epidemics of infectious diseases, communicable diseases, etc. in (10) Risks associated with large-scale natural disasters or other events under RESPONSE TO MAJOR RISKS. However, if the COVID-19 pandemic is prolonged, there is a risk that the Company's financial position and business results may be affected.
7
Consolidated Balance Sheet
2.Consolidated Financial Statements and Notes
(1) Consolidated Balance Sheet
ASICS Corporation and Consolidated Subsidiaries
As of June 30, 2020 and December 31, 2019
Millions of yen | |||||
ASSETS | June 30, 2020 | December 31, 2019 | |||
Current assets: | |||||
Cash and deposits | ¥ | 54,344 | ¥ | 39,199 | |
Notes and accounts receivable : | |||||
Trade | 51,775 | 65,191 | |||
Less allowance for doubtful receivables | (2,116) | (1,497) | |||
Inventories | 107,191 | 93,159 | |||
Other current assets | 22,613 | 18,464 | |||
Total current assets | 233,809 | 214,517 | |||
Property,plant and equipment: | |||||
Land | 5,795 | 5,797 | |||
Buildings and structures | 36,649 | 37,950 | |||
Machinery, equipment and vehicles | 3,783 | 3,716 | |||
Tools, furniture and fixtures | 28,722 | 28,931 | |||
Leased assets | 8,426 | 8,319 | |||
Construction in progress | 1,460 | 847 | |||
Less accumulated depreciation | (51,205) | (51,266) | |||
Property, plant and equipment, net | 33,632 | 34,296 | |||
Intangible assets: | |||||
Goodwill | 2,539 | 2,830 | |||
Software | 6,849 | 6,317 | |||
Right of use asset | 23,135 | 24,479 | |||
Other intangible assets | 7,660 | 6,734 | |||
Total intangible assets | 40,185 | 40,362 | |||
Investments and other assets: | |||||
Investments in securities: | |||||
Investments in unconsolidated subsidiaries and affiliates | 156 | 156 | |||
Other | 8,915 | 9,724 | |||
Long-term loans receivable | 54 | 59 | |||
Deferred income taxes | 7,727 | 7,844 | |||
Other assets | 10,073 | 9,852 | |||
Less allowance for doubtful receivables | (689) | (698) | |||
Total investments and other assets | 26,237 | 26,938 | |||
Total assets | ¥ | 333,864 | ¥ | 316,115 | |
- There are some amount of difference between these consolidated financial statements and annual report due to the different treatment of rounding.
8
Consolidated Balance Sheet
Millions of yen | |||||
LIABILITIES AND NET ASSETS | June 30, 2020 | December 31, 2019 | |||
Current liabilities: | |||||
Short-term bank loans | ¥ | 41,270 | ¥ | 6,257 | |
Current portion of long-term debt | 7,447 | 7,371 | |||
Notes and accounts payable: | |||||
Trade | 31,682 | 33,578 | |||
Accrued income taxes | 1,241 | 2,282 | |||
Accrued expenses | 14,834 | 18,051 | |||
Provision for sales returns | 180 | 140 | |||
Provision for employees' bonuses | 192 | 549 | |||
Asset retirement obligations | 14 | 116 | |||
Other current liabilities | 13,705 | 12,766 | |||
Total current liabilities | 110,569 | 81,113 | |||
Long-term liabilities: | |||||
Long-term debt | 67,770 | 66,970 | |||
Liabilities for retirement benefits | 6,720 | 6,615 | |||
Asset retirement obligations | 1,252 | 1,228 | |||
Deferred income taxes | 1,510 | 1,508 | |||
Other long-term liabilities | 6,229 | 6,356 | |||
Total long-term liabilities | 83,482 | 82,678 | |||
Net assets: | |||||
Shareholders' equity : | |||||
Common stock: | 23,972 | 23,972 | |||
Capital surplus | 15,481 | 15,481 | |||
Retained earnings | 117,244 | 126,967 | |||
Less treasury share, at cost | (10,378) | (10,959) | |||
Total shareholders' equity | 146,320 | 155,461 | |||
Accumulated other comprehensive income: | |||||
Unrealized holding gain on securities | 985 | 2,054 | |||
Unrealized deferred gain on hedges | 4,105 | 3,438 | |||
Translation adjustments | (11,886) | (8,941) | |||
Retirement benefits liability adjustments | (273) | (306) | |||
Total accumulated other comprehensive income | (7,070) | (3,754) | |||
Stock acquisition rights | 423 | 475 | |||
Non-controlling interests | 139 | 141 | |||
Total net assets | 139,811 | 152,323 | |||
Total liabilities and net assets | ¥ | 333,864 | ¥ | 316,115 | |
9
Consolidated Income Statement
(2) Consolidated Income Statement and Statement of Comprehensive Income
ASICS Corporation and Consolidated Subsidiaries
The second quarter ended June 30, 2020 and 2019
Millions of yen | ||||
The Second Quarter Ended | The Second Quarter Ended | |||
June 30, 2020 | June 30, 2019 | |||
Net sales | ¥ | 146,897 | ¥ | 187,204 |
Cost of sales | 76,314 | 98,186 | ||
Gross profit | 70,583 | 89,017 | ||
Selling, general and administrative expenses *1 | 74,456 | 80,427 | ||
Operating (loss) income | (3,873) | 8,589 | ||
Other income (expenses): | ||||
Interest and dividend income | 319 | 611 | ||
Interest expense | (760) | (931) | ||
Exchange (loss) gain, net | (1,902) | 1,115 | ||
Gain on sales of investments in securities, net | 1 | 1 | ||
Loss on sales or disposal of property, plant and equipment and other, net | (205) | (43) | ||
Loss on valuation of investments in securities | (28) | (9) | ||
Extra retirement payments *2 | (588) | - | ||
Loss on temporary closing of stores *3 | (2,505) | - | ||
Subsidy income | 286 | 567 | ||
Other,net | (51) | 16 | ||
(5,435) | 1,328 | |||
(Loss) profit before income taxes | (9,308) | 9,917 | ||
Income taxes: | ||||
Current/Deferred | 1,011 | 4,262 | ||
Refunded *4 | (4,057) | - | ||
(3,045) | 4,262 | |||
(Loss) profit | (6,263) | 5,655 | ||
(Loss) profit attributable to: | ||||
Non-controlling interests | 3 | 150 | ||
Owners of parent | ¥ | (6,266) | ¥ | 5,504 |
10
Consolidated Statement of Comprehensive Income
ASICS Corporation and Consolidated Subsidiaries
The second quarter ended June 30, 2020 and 2019
Millions of yen | ||||
The Second Quarter Ended | The Second Quarter Ended | |||
June 30, 2020 | June 30, 2019 | |||
(Loss) profit | ¥ | (6,263) | ¥ | 5,655 |
Other comprehensive (loss) income: | ||||
Unrealized holding loss on securities | (1,069) | (366) | ||
Unrealized deferred gain (loss) on hedges | 666 | (230) | ||
Translation adjustments | (2,950) | (3,924) | ||
Retirement benefits liability adjustments | 32 | 24 | ||
Total other comprehensive loss, net | (3,319) | (4,497) | ||
Comprehensive (loss) income | ¥ | (9,583) | ¥ | 1,158 |
Comprehensive (loss) income attributable to: | ||||
Owners of parent | ¥ | (9,581) | ¥ | 1,021 |
Non-controlling interests | (1) | 136 |
11
Consolidated Statement of Cash Flows
(3) Consolidated Statement of Cash Flows
ASICS Corporation and Consolidated Subsidiaries
The second quarter ended June 30, 2020 and 2019
Millions of yen
The Second Quarter Ended | The Second Quarter Ended |
June 30, 2020 | June 30, 2019 |
Operating activities:
(Loss) profit before income taxes
Adjustments to reconcile profit before income taxes to net cash provided by operating activities:
Depreciation and amortization Amortization of goodwill
Increase (decrease) in allowance for doubtful receivables Increase in liabilities for retirement benefits, net (Decrease) increase in provision for employees' bonuses Loss on impairment of investments in securities
Gain on sales of investments in securities, net Interest and dividend income
Interest expense Exchange loss, net
Loss on sales or disposal of property, plant and equipment and other, net Other, net
(Increase) decrease in operating assets: Notes and accounts receivable-trade Inventories
Other operating assets
Increase (decrease) in operating liabilities: Notes and accounts payable-trade Accrued consumption taxes
Other operating liabilities Subtotal
Interest and dividends received Interest paid
Business restructuring expenses paid Income taxes paid
Net cash (used in) provided by operating activities
Investing activities: Increase in time deposits
Proceeds from withdrawal of time deposits Purchases of property, plant and equipment Payments for disposal of property, plant and equipment Proceeds from sales of property, plant and equipment Purchases of intangible assets
Proceeds from sales of intangible assets Purchases of investments in securities
Proceeds from sales and redemption of investments in securities Purchase of shares of subsidiaries and associates
Net increase in short-term loans receivable included in other current assets Long-term loans receivable made
Collection of long-term loans receivable Other, net
Net cash used in investing activities
Financing activities:
Net increase (decrease)in short-term bank loans
Proceeds from long-term loans
Repayment of long-term loans
Proceeds from issuance of bonds
Redemption of bonds with stock acquisition rights
Purchases of treasury share
Proceeds from sales of treasury share
Repayment of lease obligations
Cash dividends paid to shareholders of the Company
Dividends paid to non-controlling interests
Net cash provided by (used in) financing activities
Effect of exchange rate changes on cash and cash equivalents Net increase (decrease) in cash and cash equivalents
Cash and cash equivalents as of January 1, 2020 and 2019 Cash and cash equivalents as of June 30, 2020 and 2019
¥ | (9,308) | ¥ | 9,917 |
6,732 | 6,172 | ||
135 | 5 | ||
697 | (74) | ||
156 | 234 | ||
(325) | 1 | ||
28 | 9 | ||
(1) | (1) | ||
(319) | (611) | ||
753 | 928 | ||
10 | 36 | ||
205 | 43 | ||
(635) | 173 | ||
11,200 | (4,633) | ||
(16,364) | (3,958) | ||
(1,244) | (2,040) | ||
1,404 | 913 | ||
1,060 | 1,662 | ||
(2,031) | (741) | ||
(7,845) | 8,038 | ||
314 | 610 | ||
(739) | (900) | ||
(39) | (486) | ||
(802) | (3,731) | ||
(9,113) | 3,529 | ||
(0) | (411) | ||
230 | 1,430 | ||
(1,626) | (2,385) | ||
(199) | (11) | ||
32 | 11 | ||
(2,920) | (2,677) | ||
86 | 24 | ||
(547) | (170) | ||
7 | 4 | ||
- | (15) | ||
(0) | (22) | ||
(8) | (13) | ||
9 | 9 | ||
(248) | (418) | ||
(5,181) | (4,645) | ||
35,176 | (301) | ||
2,500 | - | ||
(117) | (17) | ||
- | 19,910 | ||
- | (30,000) | ||
(0) | (1) | ||
0 | 0 | ||
(3,491) | (3116) | ||
(3,289) | (2,270) | ||
(0) | - | ||
30,777 | (15,795) | ||
(1,095) | (961) | ||
15,386 | (17,872) | ||
37,985 | 65,877 | ||
¥ | 53,371 | ¥ | 48,004 |
12
(4)Notes for Consolidated Financial Statements (Consolidated Balance Sheet)
The Company has an overdraft agreement with the bank to finance working capital efficiently. The balance of unused loan commitments as of June 30, 2020 under this agreement is as follows.
Millions of yen | ||
As of June 30, 2020 | As of June 30, 2019 | |
Overdraft maximum amount | ¥194,500 | ¥188,500 |
Balance of used loans | 40,000 | 4,400 |
Unused balance | ¥154,500 | ¥184,100 |
(Consolidated Income Statement)
*1 The material expenses in Selling, General and Administrative expenses are as follows:
The Company has received subsidy related to COVID-19 and deducted ¥348 million directly from selling, general and administrative expenses.
Millions of yen | ||
2020 | 2019 | |
(from January 1 to June 30, 2020) | (from January 1 to June 30, 2019) | |
Advertising | ¥14,286 | ¥15,195 |
Commission fee | 9,874 | 10,026 |
Provision for bad debt | 839 | 7 |
Salaries and wages | 17,415 | 19,936 |
Provision for bonus | 298 | 343 |
Retirement benefit | 521 | 510 |
Rent | 4,556 | 6,460 |
Depreciation and amortization | 5,953 | 6,048 |
*2 Extra retirement payments
This is a special severance payment associated with the rationalization of management of European subsidiaries.
*3 Loss on temporary closing of stores
We have been temporarily closing some own retail stores in Japan, North America, Europe, etc., due to requests of governments and local governments regarding the infection (COVID-19), and as a measure against the spread of infections. Fixed costs (personnel expenses, depreciation and amortization, etc.) of own retail stores incurred during the closure period are recorded in extraordinary losses as losses resulting from temporary store closures.
The Company has received subsidy related to COVID-19 and deducted ¥151 million directly from the extraordinary losses described above.
*4 Refund of income taxes
This is the amount of tax refunds recorded by U.S. subsidiaries based on the CARES Act established in the U.S.
(Segment Information)
1) Outline of Reportable Segments
Reportable segments of the Group are components for which discrete financial information is available and whose operating results are regularly reviewed by the Executive Meeting of the Company to make decisions on the allocation of management resources and assess performance.
The Company is mainly engaged in business management activities and product development as the global headquarters.
The Group is primarily engaged in the manufacture and sales of sporting goods. ASICS Japan Corporation and other subsidiaries in Japan are responsible for Japan. ASICS America Corporation is responsible for North America; ASICS Europe B.V. for Europe, Middle East, and Africa; ASICS China Trading Co., Ltd. for Greater China; ASICS Oceania PTY., Ltd. for Oceania; and ASICS Asia PTE., Ltd. for Southeast and South Asia.
2) Net Sales and Segment Income/Loss of Reportable Segment
Millions of yen
North | SouthEast and | ||||||||||
Japanese | American | European | Greater | Oceanian | South Asian | Other | |||||
2020 (from January 1 to June 30, 2020) | region | region | region | China region | region | region | regions | Total | Adjustments | Consolidated | |
Net sales: | |||||||||||
Sales to customers | ¥37,753 | ¥28,397 | ¥37,083 | ¥18,525 | ¥8,587 | ¥3,663 | ¥11,879 | ¥145,890 | ¥1,007 | ¥146,897 | |
Intersegment | 9,251 | 16 | 10 | - | - | - | 113 | 9,392 | (9,392) | - | |
Total sales | 47,004 | 28,414 | 37,094 | 18,525 | 8,587 | 3,663 | 11,993 | 155,282 | (8,385) | 146,897 | |
Segment income (loss) | ¥(1,509) | ¥(2,134) | ¥737 | ¥2,113 | ¥1,087 | ¥(71) | ¥(317) | ¥(74) | ¥(3,798) | ¥(3,873) | |
Millions of yen | |||||||||||
North | SouthEast and | ||||||||||
Japanese | American | European | Greater | Oceanian | South Asian | Other | |||||
2019 (from January 1 to June 30, 2019) | region | region | region | China region | region | region | regions | Total | Adjustments | Consolidated | |
Net sales: | |||||||||||
Sales to customers | ¥52,000 | ¥37,185 | ¥46,631 | ¥18,650 | ¥8,468 | ¥5,552 | ¥18,165 | ¥186,653 | ¥550 | ¥187,204 | |
Intersegment | 9,812 | 1,785 | 20 | - | - | 0 | 233 | 11,852 | (11,852) | - | |
Total sales | 61,812 | 38,971 | 46,651 | 18,650 | 8,468 | 5,552 | 18,398 | 198,505 | (11,301) | 187,204 | |
Segment income (loss) | ¥3,362 | ¥(2,113) | ¥1,046 | ¥3,165 | ¥1,037 | ¥551 | ¥779 | ¥7,830 | ¥758 | ¥8,589 | |
3.Supplemental Information | |||||||||||
(1)Net Sales per Regions | |||||||||||
Millions of yen | |||||||||||
North | |||||||||||
Japanese | American | European | Greater | Other | |||||||
2020 (from January 1 to June 30, 2020) | region | region | region | China region | regions | Consolidated | |||||
Net sales | ¥37,838 | ¥29,263 | ¥38,444 | ¥18,607 | ¥22,744 | ¥146,897 | |||||
Millions of yen | |||||||||||
North | |||||||||||
Japanese | American | European | Greater | Other | |||||||
2019 (from January 1 to June 30, 2019) | region | region | region | China region | regions | Consolidated | |||||
Net sales | ¥52,049 | ¥37,635 | ¥47,406 | ¥18,870 | ¥31,241 | ¥187,204 | |||||
(2)Foreign Currency Exchange Rates | |||||||||||
USD | EUR | RMB | AUD | SGD | |||||||
2nd quarter ended June 30, 2020 | ¥108.27 | ¥119.78 | ¥15.38 | ¥71.94 | ¥77.75 | ||||||
2nd quarter ended June 30, 2019 | ¥109.95 | ¥124.44 | ¥16.21 | ¥77.75 | ¥80.90 | ||||||
Increase or (Decrease) | ¥(1.68) | ¥(4.66) | ¥(0.83) | ¥(5.81) | ¥(3.15) | ||||||
Ratio (%) | (1.5) | (3.7) | (5.1) | (7.5) | (3.9) | ||||||
(3)Net Sales and Segment Income Ratio | |||||||||||
North | SouthEast and | ||||||||||
Japanese | American | European | Greater | Oceanian | South Asian | Other | |||||
region | region | region | China region | region | region | regions | |||||
Net Sales | (Local Currency) | - | (25.7) | (17.4) | +3.8 | +9.6 | (31.2) | (25.7) | |||
Vs 2nd quarter ended June 30, 2019 | (%) | (Yen) | (24.0) | (27.1) | (20.5) | (0.7) | +1.4 | (34.0) | (34.8) | ||
Segment income | (Local Currency) | - | - | (26.8) | (29.3) | +13.2 | - | - | |||
Vs 2nd quarter ended June 30, 2019 | (%) | (Yen) | - | - | (29.5) | (32.6) | +4.8 | - | - | ||
Segment Income Ratio (%) | (3.2) | (7.5) | 2.0 | 11.5 | 12.7 | (2.0) | (2.6) |
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Asics Corporation published this content on 13 August 2020 and is solely responsible for the information contained therein. Distributed by Public, unedited and unaltered, on 13 August 2020 06:02:16 UTC