NOTICE: For the convenience of capital market participants, Chugai makes efforts to provide English translations of the information disclosed in Japanese, provided that the Japanese original prevails over its English translation in the case of any discrepancy found between documentation.
CONSOLIDATED FINANCIAL STATEMENTS (IFRS) (Non-Audited)
(for the first quarter of the fiscal year 2021)
Name of Company: | Chugai Pharmaceutical Co., Ltd. | April 22, 2021 |
Stock Listing: | Tokyo Stock Exchange | |
Security Code No.: | 4519 (URL https://www.chugai-pharm.co.jp/english) | |
Representative: | Osamu Okuda, President & CEO | |
Contact: | Toshiya Sasai, Head of Corporate Communications Department | |
Phone: | +81-(0)3-3273-0554 |
Date of Submission of Quarterly Marketable Securities Filings: April 27, 2021
Date on which Dividend Payments to Commence: -
Supplementary Materials Prepared for the Quarterly Financial Statements: Yes
Presentation Held to Explain the Quarterly Financial Statements: Yes (for institutional investors, securities analysts and the media)
(Note: Amounts of less than one million yen are rounded.)
1. Consolidated results for the first quarter of FY 2021 (January 1, 2021-March 31, 2021)
(1) Consolidated operating results
Revenues | % change | Operating profit | % change | Net income | % change | |
First three months of FY 2021 | ¥168,817 million | (5.9) | ¥63,967 million | (11.7) | ¥47,411 million | (8.0) |
First three months of FY 2020 | ¥179,424 million | 16.3 | ¥72,411 million | 57.1 | ¥51,533 million | 47.1 |
Net income | Total | |||||
attributable to | ||||||
% change comprehensive % change | ||||||
Chugai | ||||||
income | ||||||
shareholders | ||||||
First three months of FY 2021 | ¥47,411 million | (8.0) | ¥51,688 million | 3.1 | ||
First three months of FY 2020 | ¥51,533 million | 47.1 | ¥50,138 million | 41.4 | ||
Earnings per share | Earnings per share | |||||
(Basic) | (Diluted) | |||||
First three months of FY 2021 | ¥28.84 | ¥28.82 | ||||
First three months of FY 2020 | ¥31.37 | ¥31.33 |
Notes: 1. Percentages represent changes compared with the same period of the previous fiscal year.
2. Effective July 1, 2020, Chugai Pharmaceutical Co., Ltd. ("Chugai") implemented a three-for-one stock split of its common stock. "Earnings per share (Basic)" and "Earnings per share (Diluted)" are calculated based on the assumption that the stock split was implemented at the beginning of the previous fiscal year.
- Consolidated results (balance sheet)
Equity attributable | Ratio of equity | |||
Total assets | Total equity | to Chugai | attributable to | |
shareholders | Chugai shareholders | |||
As of Mar. 31, 2021 | ¥1,144,627 million | ¥982,608 million | ¥982,608 million | 85.8% |
As of Dec. 31, 2020 | ¥1,235,498 million | ¥980,003 million | ¥980,003 million | 79.3% |
2. Dividends
Annual dividends per share | ||||||
End of first | End of second | End of third | End of fiscal year | Total | ||
quarter | quarter | quarter | ||||
FY ended Dec. 2020 | - | ¥75.00 | - | ¥30.00 | - | |
FY ending Dec. 2021 | - | |||||
FY ending Dec. 2021 | ¥30.00 | - | ¥30.00 | ¥60.00 | ||
(Forecast) | ||||||
Notes: 1. Whether the most recent dividend forecast has been revised: No
2. Effective July 1, 2020, Chugai implemented a three-for-one stock split of its common stock. The dividend for the second quarter of the fiscal year 2020 presents the amount prior to the stock split. The annual dividends per share for the fiscal year ended December 31, 2020 is not stated because the amounts cannot be simply combined due to the implementation of the stock split. The annual dividend per share is ¥165 when calculated based on the assumption of no stock split, and ¥55 when calculated with the stock split taken into account.
3. Consolidated forecasts for FY 2021(January 1, 2021-December 31, 2021)
First three months of FY 2021 (Results)
FY ending Dec. 2021 (Forecast)
First three months of FY 2021 (Results)
FY ending Dec. 2021 (Forecast)
Revenues | % change | Core operating | % change | Core net income | % change |
profit | |||||
¥168,817 million | +21.1 | ¥65,353 million | +20.4 | ¥48,396 million | +20.9 |
¥800,000 million | +1.7 | ¥320,000 million | +3.9 | ¥232,000 million | +5.7 |
Core earnings | Core dividend | ||||
per share | payout ratio % | ||||
¥29.42 | +20.9 | - | |||
¥141.00 | +5.7 | 42.6 |
Notes: 1. Percentages shown for forecasts of revenues, Core operating profit, Core net income and Core EPS represent changes compared with the same period of the previous fiscal year. Percentages for results represent the percentage of forecast levels that have been achieved to date.
2. Whether the most recent forecasts for consolidated figures have been revised: No
4. Others
- Changes in the state of material subsidiaries during the period (Changes in the state of specific subsidiaries with change in scope of consolidation): None
- Changes in accounting policies and changes in accounting estimates
- Changes in accounting policies required by IFRS: None
- Changes in accounting policies other than those in (a) above: None
- Changes in accounting estimates: None
- Number of shares issued (common stock):
- Number of shares issued at the end of the period (including treasury stock)
- Number of treasury stock at the end of the period
- Average number of shares issued during the period (three months)
As of Mar. 31, 2021 | 1,679,057,667 | As of Dec. 31, 2020 | 1,679,057,667 |
As of Mar. 31, 2021 | 34,996,421 | As of Dec. 31, 2020 | 35,186,586 |
First three months of | 1,643,941,381 | First three months of | 1,642,692,709 |
FY 2021 | FY 2020 | ||
Note: Effective July 1, 2020, Chugai implemented a three-for-one stock split of its common stock. The number of shares issued (common stock) is calculated based on the assumption that the stock split was implemented at the beginning of the previous fiscal year.
Notes:
The quarterly financial statements are not subject to quarterly reviews.
Explanation of the appropriate use of performance forecasts and other related items
- Portions of this report that refer to performance forecasts or any other future events are believed to be reasonable under information available at the time of the forecasts. Actual results may differ from these forecasts due to potential risks and uncertainties.
- The forecast which is published for shareholders and investors is based on the internal management indicator Core basis under International Financial Reporting Standards ("IFRS"). The difference between IFRS results and Core results will be explained at each event and presentation.
- For the specifics of the forecasts, please refer to "Consolidated Forecasts and Other forward-looking Statements" on page 6 of the attached document.
- Chugai is scheduled to hold a tele-conference as noted below. The presentation materials, the verbal recording, the Q&A, and other related documents will be posted on the Chugai's website following the conclusion of the conference.
Tele-conference for institutional investors, securities analysts and the media (Japanese only): April 22, 2021, Thursday (Japan time).
The English translation of the presentation materials will be posted on the website on the next business day.
Index of the Attachment | ||
1. Qualitative Information ................................................................................................................................................. | 2 | |
(1) | Consolidated operating results ................................................................................................................................... | 2 |
(2) | Consolidated financial position .................................................................................................................................. | 5 |
(3) | Consolidated forecasts and other forward-looking statements ................................................................................ | 6 |
2. Interim Condensed Consolidated Financial Statements and Major Notes .............................................................. | 7 | |
(1) | Interim condensed consolidated income statement and interim condensed consolidated statement of | |
comprehensive income ................................................................................................................................................ | 7 | |
(2) | Interim condensed consolidated balance sheet ........................................................................................................... | 9 |
(3) | Interim condensed consolidated statement of cash flows ........................................................................................... | 10 |
(4) | Interim condensed consolidated statement of changes in equity ................................................................................ | 11 |
(5) | Notes regarding the going concern assumption .......................................................................................................... | 12 |
(6) | Notes regarding the interim condensed consolidated financial statements ................................................................ | 12 |
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Chugai Pharmaceutical Co., Ltd. (4519) CONSOLIDATED FINANCIAL STATEMENTS (1st quarter of FY 2021)
1. Qualitative Information
(1) Consolidated operating results in billions of yen
First three months of | First three months of | % change | |
FY 2021.12 | FY 2020.12 | ||
(Jan. 1, 2021-Mar. 31, 2021) | (Jan. 1, 2020-Mar.31, 2020) | ||
Core results | |||
Revenues | 168.8 | 179.4 | (5.9) |
Sales | 130.3 | 144.5 | (9.8) |
Royalties and other operating | 38.6 | 34.9 | +10.6 |
income | |||
Cost of sales | (55.0) | (61.0) | (9.8) |
Gross profit | 113.8 | 118.5 | (4.0) |
Marketing and distribution | (15.8) | (15.5) | +1.9 |
Research and development | (28.7) | (25.0) | +14.8 |
General and administration | (3.9) | (3.9) | 0.0 |
Operating profit | 65.4 | 74.1 | (11.7) |
Net income | 48.4 | 52.7 | (8.2) |
IFRS results | |||
Revenues | 168.8 | 179.4 | (5.9) |
Operating profit | 64.0 | 72.4 | (11.6) |
Net income | 47.4 | 51.5 | (8.0) |
Consolidated financial highlights (IFRS results)
Revenues for the three months under review were ¥168.8 billion (a decrease of 5.9% year on year), operating profit for the three months under review was ¥64.0 billion (a decrease of 11.6% year on year), and net income for the three months under review was ¥47.4 billion (a decrease of 8.0% year on year). These results include non-Core items, such as amortization of intangible assets of ¥0.3 billion and restructuring expenses of ¥1.1 billion, which are excluded from the Core results that Chugai adopts to manage recurring business activities.
Consolidated financial highlights (Core results)
Revenues for the three months under review were ¥168.8 billion (a decrease of 5.9% year on year), due to declines in both domestic and overseas sales, even as royalties and other operating income increased.
Of revenues, sales were ¥130.3 billion (a decrease of 9.8% year on year). Domestic sales declined mainly due to the effects of the NHI drug price revisions of April 2020 and market penetration of generic drugs, despite the continued increase in sales of the mainstay product, Tecentriq, in the Oncology area. Overseas sales declined mainly due to a decrease in exports to Roche, including the export of Actemra. Royalties and other operating income amounted to ¥38.6 billion (an increase of 10.6% year on year), due to an increase in royalties for Hemlibra and its profit-sharing income, despite a decrease in other operating income resulting from one-time income. Furthermore, cost to sales ratio was 42.2%, almost unchanged from the same period of the previous fiscal year. As a result, gross profit amounted to ¥113.8 billion (a decrease of 4.0% year on year).
Operating expenses were ¥48.5 billion (an increase of 9.2% year on year). Marketing and distribution expenses were ¥15.8 billion (an increase of 1.9% year on year). Research and development expenses amounted to ¥28.7 billion (an increase of 14.8% year on year) due to an increase in expenses associated with the progress of projects, etc. General and administration expenses amounted to ¥3.9 billion (0.0% year on year). As a result, Core operating profit was ¥65.4 billion (a decrease of 11.7% year on year) and Core net income was ¥48.4 billion (a decrease of 8.2% year on year).
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Chugai Pharmaceutical Co., Ltd. (4519) CONSOLIDATED FINANCIAL STATEMENTS (1st quarter of FY 2021)
Regarding the impact of COVID-19 on performance during the three months under review, there were no major negative impacts on revenues and profits at each stage. Although the pandemic continued to have a limited effect on the progress of certain business activities, we have maintained a stable product supply system both in Japan and overseas.
Note: Core results
Chugai discloses its results on a Core basis from 2013 in conjunction with its transition to IFRS. Core results are the results after adjusting non-recurring items recognized by Chugai to IFRS results, and are consistent with the Core concept disclosed by Roche. Core results are used by Chugai as an internal performance indicator, for explaining the status of recurring profits both internally and externally, and as the basis for payment-by-results.
For further details regarding the adjustment to IFRS results, please refer to the Supplementary Materials on page 1, entitled "Reconciliation of IFRS results to Core results."
Sales breakdown in billions of yen
First three months of | First three months of | % change | |
FY 2021.12 | FY 2020.12 | ||
(Jan. 1, 2021-Mar. 31, 2021) | (Jan. 1, 2020-Mar.31, 2020) | ||
Sales | 130.3 | 144.5 | (9.8) |
Domestic sales | 94.9 | 101.9 | (6.9) |
Oncology | 57.9 | 55.3 | +4.7 |
Primary | 36.9 | 46.6 | (20.8) |
Overseas sales | 35.4 | 42.6 | (16.9) |
Domestic sales
Domestic sales were ¥94.9 billion (a decrease of 6.9% year on year) due to a decrease in sales of mainstay products in each area affected by the NHI drug price revisions of April 2020 and the market penetration of generic drugs.
Oncology products sales were ¥57.9 billion (an increase of 4.7% year on year). This increase was due to the favorable sales of Kadcyla (an anti-HER2antibody-tubulin polymerization inhibitor conjugate), in addition to the steady market penetration of the mainstay product, Tecentriq (an anti PD-L1 humanized monoclonal antibody, anti-cancer agent), despite a sales decline of Avastin (an anti-VEGF humanized monoclonal antibody, anti-cancer agent) and Herceptin (an anti-HER2 humanized monoclonal antibody, anti-cancer agent) affected by the NHI drug price revisions and the market penetration of generic drugs.
Primary products sales were ¥36.9 billion (a decrease of 20.8% year on year). This was mainly due to a significant decline in sales of Edirol (an osteoporosis agent) affected by the market penetration of generic drugs, despite the steady sales of the mainstay product, Hemlibra (blood coagulation factor VIII substitute), in addition to the steady market penetration of Enspryng (a pH-dependent binding humanized anti-IL-6 receptor monoclonal antibody), which was launched in August of last year.
Overseas sales
Overseas sales amounted to ¥35.4 billion (a decrease of 16.9% year on year) due to a decrease in exports to Roche, including the export of Actemra (a humanized anti-humanIL-6 receptor monoclonal antibody) compared to the previous fiscal year.
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Chugai Pharmaceutical Co., Ltd. (4519) CONSOLIDATED FINANCIAL STATEMENTS (1st quarter of FY 2021)
R&D activities
R&D expenses on a Core basis for the first three months under review totaled ¥28.7 billion (an increase of 14.8% year on year), and the ratio of R&D expenses to revenue was 17.0%.
Progress made in R&D activities during the period from January 1, 2021 to March 31, 2021 was as follows.
Oncology
- We obtained approval for anti-CD79bantibody-drug conjugate RG7596 (Product name: Polivy) for the indication of relapsed or refractory diffuse large B-cell lymphoma in March 2021.
- We started global Phase III study for engineered anti-PD-L1 monoclonal antibody RG7446 (Product name: Tecentriq) for the treatment of hepatocellular carcinoma (HCC) (intermediate stage), in combination with RG435, in March 2021.
- We started global Phase III study for anti-VEGF (Vascular Endothelial Growth Factor) humanized monoclonal antibody RG435 (Product name: Avastin) for the treatment of HCC (intermediate stage), in combination with RG7446, in March 2021.
- We started Phase I study for the oncolytic type 5 adenovirus OBP-301 for the treatment of HCC, in combination with RG7446 and RG435, in January 2021.
- We decided to discontinue the development of the anti-FAP humanized antibody-engineeredIL-2 variant fusion protein RG7461 for solid tumors in consideration of the results of multiple overseas studies conducted by Roche.
Autoimmune Diseases
- We decided to discontinue the development of the BTK inhibitor RG7845 for rheumatoid arthritis in consideration of the results of multiple overseas studies conducted by Roche.
Other Diseases
- We started global Phase III study for anti-VEGF/Ang2 bispecific antibody RG7716 for the treatment of retinal vein occlusion in March 2021.
- We started Phase I study for SARS-CoV-2 neutralizing antibody cocktail RG6413/RG6412 for the treatment of COVID-19 in March 2021.
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Chugai Pharmaceutical Co., Ltd. (4519) CONSOLIDATED FINANCIAL STATEMENTS (1st quarter of FY 2021)
(2) Consolidated financial position
Assets, liabilities and net assets in billions of yen
March 31, 2021 | December 31, 2020 | Change in amount | ||
Net operating assets (NOA) and Net assets | ||||
Net working capital | 281.3 | 300.0 | (18.7) | |
Long-term net operating assets | 350.3 | 346.0 | 4.3 | |
Net operating assets (NOA) | 631.6 | 646.0 | (14.4) | |
Net cash | 343.4 | 378.6 | (35.2) | |
Other non-operating assets - net | 7.7 | (44.6) | 52.3 | |
Total net assets | 982.6 | 980.0 | 2.6 | |
Consolidated balance sheet (IFRS basis) | ||||
Total assets | 1,144.6 | 1,235.5 | (90.9) | |
Total liabilities | (162.0) | (255.5) | 93.5 | |
Total net assets | 982.6 | 980.0 | 2.6 |
Net operating assets (NOA) at March 31, 2021 were ¥631.6 billion, a decrease of ¥14.4 billion since the end of the previous fiscal year. Of NOA, net working capital was ¥281.3 billion (a decrease of ¥18.7 billion since the end of the previous fiscal year), due mainly to a decrease in accounts receivable, even as accounts payable - other for the construction of the Chugai Life Science Park Yokohama decreased. Long-term net operating assets increased by ¥4.3 billion to ¥350.3 billion since the end of the previous fiscal year.
As indicated in "Cash flows" on the next page, net cash, including marketable securities and interest-bearing debt, decreased by ¥35.2 billion since the end of the previous fiscal year to ¥343.4 billion. Other non-operating assets - net increased by ¥52.3 billion since the end of the previous fiscal year to ¥7.7 billion due mainly to a decrease in current income tax liabilities.
As a consequence, total net assets were ¥982.6 billion (an increase of ¥2.6 billion since the end of the previous fiscal year).
Note: Net operating assets (NOA) and Net assets
The consolidated balance sheet has been prepared in accordance with International Accounting Standards (IAS) No. 1, "Presentation of Financial Statements." On the other hand, Net operating assets (NOA) and Net assets are a reconfiguration of the consolidated balance sheet as internal indicators and are identical to the indicators disclosed by Roche. Furthermore, no items from Net operating assets (NOA) and Net assets have been excluded, as the Core results concept only applies to the income statement.
For further details, please refer to the Supplementary Materials on page 8, entitled "Financial position."
Note: Net operating assets (NOA)
Net operating assets allow for an assessment of the Group's operating performance of the business independently from financing and tax activities. Net operating assets are calculated as net working capital, long-term net operating assets that includes property, plant and equipment, intangible assets etc. minus provisions.
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Chugai Pharmaceutical Co., Ltd. (4519) CONSOLIDATED FINANCIAL STATEMENTS (1st quarter of FY 2021)
Cash flows in billions of yen
First three months of | First three months of | % change | |
FY 2021.12 | FY 2020.12 | ||
(Jan. 1, 2021-Mar. 31, 2021) | (Jan. 1, 2020-Mar.31, 2020) | ||
Free cash flows | |||
Operating profit - IFRS basis | 64.0 | 72.4 | (11.6) |
Operating profit, net of operating cash adjustments | 72.2 | 81.0 | (10.9) |
Operating free cash flows | 78.3 | 31.8 | +146.2 |
Free cash flows | 12.4 | (9.1) | - |
Net change in net cash | (35.2) | (60.4) | (41.7) |
Consolidated statement of cash flows (IFRS basis) | |||
Cash flows from operating activities | 46.5 | 5.0 | +830.0 |
Cash flows from investing activities | (46.9) | (17.0) | +175.9 |
Cash flows from financing activities | (51.1) | (52.0) | (1.7) |
Net change in cash and cash equivalents | (50.3) | (65.2) | (22.9) |
Cash and cash equivalents at March 31 | 162.0 | 138.7 | +16.8 |
Operating profit, net of operating cash adjustments, amounted to ¥72.2 billion (a decrease of 10.9% year on year), which was calculated by adjusting for depreciation and other items that are included in operating profit but are not accompanied by cash inflows or outflows and all inflows and outflows related to NOA that are not accompanied by profit and loss. Operating free cash flows for the three months under review was a net inflow of ¥78.3 billion (an increase of 146.2% year on year) mainly due to a decrease in net working capital, etc. of ¥40.2 billion, despite the decrease in operating profit, as well as expenditures, etc. of ¥28.9 billion for the purchase of property, plant and equipment. Factors accounting for the decrease in net working capital, etc. are as indicated in "Assets, liabilities and net assets" on the previous page.
Free cash flows were a net cash inflow of ¥12.4 billion due mainly to income taxes paid of ¥63.3 billion.
The net change in net cash calculated by subtracting dividends paid of ¥49.0 billion, etc. from free cash flows was a decrease of ¥35.2 billion.
The net change in cash and cash equivalents, excluding changes in marketable securities and interest-bearing debt, was a net cash outflow of ¥50.3 billion. The cash and cash equivalents balance at the end of this period amounted to ¥162.0 billion.
Note: Free cash flows (FCF)
The consolidated statement of cash flows has been prepared in accordance with International Accounting Standard (IAS) No. 7, "Statement of Cash Flows." FCF is a reconfiguration of the consolidated statement of cash flows as internal indicators and is identical to the indicators disclosed by Roche. Furthermore, no items from FCF have been excluded, as the Core results concept only applies to the income statement.
For further details, please refer to the Supplementary Materials on page 9, entitled "Cash flows."
(3) Consolidated forecasts and other forward-looking statements
Chugai has not made any changes in its forecast of consolidated results for the fiscal year ending December 31, 2021 since the announcement regarding the forecast issued on February 4, 2021.
Note: In "1. Qualitative Information," amounts less than ¥0.1 billion have been rounded to the nearest ¥0.1 billion. Figures for changes in amounts and percentages have been calculated using data denominated in ¥0.1 billion units.
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Chugai Pharmaceutical Co., Ltd. (4519) CONSOLIDATED FINANCIAL STATEMENTS (1st quarter of FY 2021)
2. Interim Condensed Consolidated Financial Statements and Major Notes
-
Interim condensed consolidated income statement and interim condensed consolidated statement of comprehensive income
1) Interim condensed consolidated income statement in millions of yen
First three months ended March 31
2021 | 2020 | |||
Revenues | 168,817 | 179,424 | ||
Sales | 130,265 | 144,535 | ||
Royalties and other operating income | 38,553 | 34,889 | ||
Cost of sales | (55,338) | (61,272) | ||
Gross profit | 113,480 | 118,152 | ||
Marketing and distribution | (15,874) | (15,774) | ||
Research and development | (29,727) | (26,100) | ||
General and administration | (3,912) | (3,867) | ||
Operating profit | 63,967 | 72,411 | ||
Financing costs | (12) | (12) | ||
Other financial income (expense) | 285 | (648) | ||
Other expense | - | (536) | ||
Profit before taxes | 64,240 | 71,214 | ||
Income taxes | (16,830) | (19,681) | ||
Net income | 47,411 | 51,533 | ||
Attributable to: | ||||
Chugai shareholders | 47,411 | 51,533 | ||
Earnings per share | ||||
Basic (yen) | 28.84 | 31.37 | ||
Diluted (yen) | 28.82 | 31.33 |
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Chugai Pharmaceutical Co., Ltd. (4519) CONSOLIDATED FINANCIAL STATEMENTS (1st quarter of FY 2021)
2) Interim condensed consolidated statement of comprehensive income in millions of yen
First three months ended March 31
2021 | 2020 | |||
Net income recognized in income statement | 47,411 | 51,533 | ||
Other comprehensive income | ||||
Financial assets measured at fair value through OCI | (107) | (106) | ||
Items that will never be reclassified to the income statement | (107) | (106) | ||
Financial assets measured at fair value through OCI | 5 | (71) | ||
Cash flow hedges | 2,675 | 199 | ||
Currency translation of foreign operations | 1,704 | (1,417) | ||
Items that are or may be reclassified to the income statement | 4,384 | (1,289) | ||
Other comprehensive income, net of tax | 4,277 | (1,395) | ||
Total comprehensive income | 51,688 | 50,138 | ||
Attributable to: | ||||
Chugai shareholders | 51,688 | 50,138 |
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Chugai Pharmaceutical Co., Ltd. (4519) CONSOLIDATED FINANCIAL STATEMENTS (1st quarter of FY 2021)
(2) Interim condensed consolidated balance sheet in millions of yen
March 31, 2021 | December 31, 2020 | ||
Assets | |||
Non-current assets: | |||
Property, plant and equipment | 291,379 | 289,218 | |
Right-of-use assets | 7,435 | 8,272 | |
Intangible assets | 26,018 | 23,880 | |
Financial non-current assets | 2,688 | 2,841 | |
Deferred tax assets | 47,182 | 47,934 | |
Defined benefit plan assets | 173 | 492 | |
Other non-current assets | 28,782 | 27,954 | |
Total non-current assets | 403,656 | 400,592 | |
Current assets: | |||
Inventories | 184,659 | 183,893 | |
Accounts receivable | 190,707 | 253,342 | |
Current income tax assets | 2 | 12 | |
Marketable securities | 181,317 | 166,287 | |
Cash and cash equivalents | 162,049 | 212,333 | |
Other current assets | 22,237 | 19,039 | |
Total current assets | 740,971 | 834,906 | |
Total assets | |||
1,144,627 | 1,235,498 | ||
Liabilities | |||
Non-current liabilities: | |||
Deferred tax liabilities | (7,909) | (9,166) | |
Defined benefit plan liabilities | (2,175) | (2,282) | |
Long-term provisions | (2,110) | (2,142) | |
Other non-current liabilities | (5,722) | (5,835) | |
Total non-current liabilities | (17,916) | (19,425) | |
Current liabilities: | |||
Current income tax liabilities | (18,302) | (63,171) | |
Short-term provisions | (53) | (358) | |
Accounts payable | (61,571) | (100,396) | |
Other current liabilities | (64,178) | (72,146) | |
Total current liabilities | (144,103) | (236,070) | |
Total liabilities | |||
(162,019) | (255,495) | ||
Total net assets | |||
982,608 | 980,003 | ||
Equity: | |||
Capital and reserves attributable to Chugai shareholders | 982,608 | 980,003 | |
Total equity | 982,608 | 980,003 | |
Total liabilities and equity | |||
1,144,627 | 1,235,498 |
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Chugai Pharmaceutical Co., Ltd. (4519) CONSOLIDATED FINANCIAL STATEMENTS (1st quarter of FY 2021)
(3) Interim condensed consolidated statement of cash flows in millions of yen
First three months ended March 31 | |||
2021 | 2020 | ||
Cash flows from operating activities | |||
Cash generated from operations | 73,516 | 82,118 | |
(Increase) decrease in working capital | 40,168 | (34,791) | |
Payments made for defined benefit plans | (831) | (683) | |
Utilization of provisions | (289) | - | |
Other operating cash flows | (2,704) | (635) | |
Cash flows from operating activities, before income taxes paid | |||
109,861 | 46,009 | ||
Income taxes paid | (63,320) | (41,000) | |
Total cash flows from operating activities | |||
46,541 | 5,009 | ||
Cash flows from investing activities | |||
Purchase of property, plant and equipment | (28,948) | (11,090) | |
Purchase of intangible assets | (2,945) | (1,226) | |
Disposal of property, plant and equipment | 20 | 11 | |
Interest and dividends received | 36 | 31 | |
Purchases of marketable securities | (110,000) | (68,000) | |
Sales of marketable securities | 95,000 | 63,000 | |
Purchases of investment securities | (59) | (35) | |
Sales of investment securities | - | 326 | |
Total cash flows from investing activities | |||
(46,896) | (16,982) | ||
Cash flows from financing activities | |||
Interest paid | (12) | (5) | |
Lease liabilities paid | (2,220) | (2,115) | |
Dividends paid to Chugai shareholders | (49,049) | (50,102) | |
Exercise of equity compensation plans | 161 | 265 | |
(Increase) decrease in own equity instruments | (4) | (10) | |
Total cash flows from financing activities | |||
(51,124) | (51,966) | ||
Net effect of currency translation on cash and cash equivalents | 1,196 | (1,291) | |
Increase (decrease) in cash and cash equivalents | |||
(50,284) | (65,230) | ||
Cash and cash equivalents at January 1 | 212,333 | 203,941 | |
Cash and cash equivalents at March 31 | |||
162,049 | 138,710 | ||
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Chugai Pharmaceutical Co., Ltd. (4519) CONSOLIDATED FINANCIAL STATEMENTS (1st quarter of FY 2021)
(4) Interim condensed consolidated statement of changes in equity in millions of yen
For the first three months ended March 31, 2020 (Jan. 1, 2020-Mar. 31, 2020)
Attributable to Chugai shareholders | |||||||||||
Share | Capital | Retained | Other | Subtotal | Total | ||||||
capital | surplus | earnings | reserves | equity | |||||||
At January 1, 2020 | |||||||||||
73,016 | 67,037 | 722,076 | (8,143) | 853,985 | 853,985 | ||||||
Net income | - | - | 51,533 | - | 51,533 | 51,533 | |||||
Financial assets measured at fair value through | - | - | - | (177) | (177) | (177) | |||||
OCI | |||||||||||
Cash flow hedges | - | - | - | 199 | 199 | 199 | |||||
Currency translation of foreign operations | - | - | - | (1,417) | (1,417) | (1,417) | |||||
Total comprehensive income | - | - | 51,533 | (1,395) | 50,138 | 50,138 | |||||
Dividends | - | - | (50,372) | - | (50,372) | (50,372) | |||||
Equity compensation plans | 21 | (72) | - | - | (52) | (52) | |||||
Own equity instruments | - | 418 | - | - | 418 | 418 | |||||
Transfer from other reserves to retained earnings | - | - | 106 | (106) | - | - | |||||
At March 31, 2020 | 73,037 | 67,383 | 723,343 | (9,644) | 854,118 | 854,118 | |||||
For the first three months ended March 31, 2021 (Jan. 1, 2021-Mar. 31, 2021)
Attributable to Chugai shareholders | |||||||||||
Share | Capital | Retained | Other | Subtotal | Total | ||||||
capital | surplus | earnings | reserves | equity | |||||||
At January 1, 2021 | |||||||||||
73,202 | 67,586 | 849,093 | (9,879) | 980,003 | 980,003 | ||||||
Net income | - | - | 47,411 | - | 47,411 | 47,411 | |||||
Financial assets measured at fair value through | - | - | - | (101) | (101) | (101) | |||||
OCI | |||||||||||
Cash flow hedges | - | - | - | 2,675 | 2,675 | 2,675 | |||||
Currency translation of foreign operations | - | - | - | 1,704 | 1,704 | 1,704 | |||||
Total comprehensive income | - | - | 47,411 | 4,277 | 51,688 | 51,688 | |||||
Dividends | - | - | (49,316) | - | (49,316) | (49,316) | |||||
Equity compensation plans | - | (19) | - | - | (19) | (19) | |||||
Own equity instruments | - | 253 | - | - | 253 | 253 | |||||
At March 31, 2021 | 73,202 | 67,820 | 847,188 | (5,601) | 982,608 | 982,608 | |||||
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Chugai Pharmaceutical Co., Ltd. (4519) CONSOLIDATED FINANCIAL STATEMENTS (1st quarter of FY 2021)
- Notes regarding the going concern assumption None
- Notes regarding the interim condensed consolidated financial statements General accounting principles and significant accounting policies
(a) Basis of preparation of the consolidated financial statements
These financial statements are the interim condensed consolidated financial statements ("Interim Financial Statements") of Chugai, a company registered in Japan, and its subsidiaries ("the Group"). The common stock of Chugai is publicly traded and listed on the Tokyo Stock Exchange under the stock code "TSE: 4519." The Interim Financial Statements were approved by the Board of Directors on April 22, 2021.
Roche Holding Ltd. is a public company registered in Switzerland and the parent company of the Roche Group, which discloses its results in accordance with IFRS. The shareholding percentage of Roche Holding Ltd. in Chugai is 59.89% (61.16% of the total number of shares issued excluding treasury stock). The Group became principal members of the Roche Group after entering into a strategic alliance in October 2002.
The Group meets all of the requirements for a "Specified Company under Designated International Financial Reporting Standards" as stipulated under Article 1-2 of the "Ordinance on Terminology, Forms, and Preparation Methods of Quarterly Consolidated Financial Statements" (Japanese Cabinet Ordinance No. 64, 2007). Hence, in accordance with Article 93 of the same Ordinance, the Interim Financial Statements have been prepared in accordance with International Accounting Standard (IAS) No. 34 "Interim Financial Reporting."
The Interim Financial Statements should be used with the consolidated financial statements for the year ended December 31, 2020 as they do not include all the information as required for the consolidated financial statements for the full fiscal year.
The Interim Financial Statements are presented in Japanese yen, which is Chugai's functional currency and amounts are rounded to the nearest ¥1 million. They have been prepared using the historical cost convention except for items that are required to be accounted for at fair value.
(b) Key accounting judgments, estimates and assumptions
The preparation of the Interim Financial Statements requires management to make judgments, estimates, and assumptions that affect the reported amounts of revenues, expenses, assets, liabilities, and contingent amounts. Actual outcomes could differ from those management estimates. The estimates and underlying assumptions are reviewed on an on-going basis and are based on historical experience and various other factors. Revisions to estimates are recognized in the period in which the estimate is revised.
The information for judgment, estimates, and assumptions that have a material impact on the amount recognized in the Interim Financial Statements of the Group is principally the same for the prior fiscal year.
In addition, as described in "1. Qualitative Information (1) Consolidated operating results," the effects of COVID-19 on the first quarter of the fiscal year ending December 31, 2021 have been limited. Therefore, the impact on performance for the fiscal year ending December 31, 2021 will also be limited, and there is no material impact on the accounting estimates used.
There is a possibility that future changes in the epidemic situation of COVID-19 may pose a significant risk that will cause material corrections to the carrying amounts of assets and liabilities in the next fiscal year and beyond.
(c) Significant accounting policies
The Group applies the same significant accounting policies that were used for the Consolidated Financial Statements in the previous fiscal year to the Interim Financial Statements.
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Chugai Pharmaceutical Co. Ltd. published this content on 22 April 2021 and is solely responsible for the information contained therein. Distributed by Public, unedited and unaltered, on 22 April 2021 08:01:03 UTC.