Cosmo Energy : Overview of Business Results for 1st Quarter of FY2021 (PDF/902K)

August 5, 2021

Overview of Business Results

for the First Quarter of Fiscal Year Ending March 2022

[Based on Japanese GAAP] (Consolidated)

Name of the Company：	Cosmo Energy Holdings Co., Ltd.	Shares traded：TSE
Company Code：	5021	URL https://ceh.cosmo-oil.co.jp/
Name of Representative：	Hiroshi Kiriyama	(Title) President
Name of Person to contact：	Eriko Date	(Title) General Manager of Corporate Communication Dept. Phone：[phone]

Scheduled date to file quarterly report：

August 5, 2021

Dividend payment is to be started on： ―

Availability of the Quarterly Financial Result Supplementary Information：

Yes

Execution of the Quarterly Financial Result Presentation Meeting：

Yes (for analysts and institutional investors)

Note：Figures less than 1 million are rounded down.

1. Consolidated Financial Results for the First Quarter of Fiscal Year Ending March 2022 (For the period from April 1, 2021 to June 30, 2021)

(1) Consolidated operating results (cumulative total)

(% indicates changes from the corresponding period of the previous fiscal year)

Net sales

Operating profit

Ordinary profit

Profit attributable to owners of

parent for the First Quarter

million yen

%

million yen

%

million yen

%

million yen

%

First Quarter , FY2021

529,631

20.4

48,208

－

49,610

－

27,914

－

First Quarter , FY2020

440,074

-33.1

-28,010

－

-28,328

－

-26,020

－

Note：Comprehensive income	First Quarter, FY2021：29,718 million yen (－%)	First Quarter, FY2020：-27,975 million yen (－%)
	Net income per share	Diluted net income per share
	for the First Quarter	for the First Quarter
	yen sen		yen sen
First Quarter , FY2021	333.55		279.48
First Quarter , FY2020	-310.26		－

Note：1 In the first quarter of FY2020, diluted net income per share for the first quarter is not indicated because net loss per share for the first quarter is indicated, although there are potential common shares with dilutive effects.

2 The Company has applied the "Accounting Standard for Revenue Recognition" (ASBJ Statement No.29 issued on March 31, 2020), etc. from the beginning of the consolidated first quarter. Accordingly, the new accounting policies have been applied to the results for the first quarter of FY2021.

(2) Consolidated Financial Position

	Total assets		Net assets		Net worth ratio
	million yen		million yen		%
First Quarter , FY2021	1,788,892		470,446		19.3
FY2020	1,709,017	449,120	19.0

[Reference] Net worth First Quarter, FY2021：346,085 million yen FY2020：324,946 million yen

Note：The Company has applied the "Accounting Standard for Revenue Recognition" (ASBJ Statement No.29 issued on March 31, 2020), etc. from the beginning of the consolidated first quarter. Accordingly, the new accounting policies have been applied to the results for the first quarter of FY2021.

2. Dividend Payment Results and Forecast

Annual dividend per share total

As of Q1-end

As of Q2-end

As of Q3-end

As of Fiscal Year-end

Full Year

yen sen

yen sen

yen sen

yen sen

yen sen

FY2020

－

0.00

－

80.00

80.00

FY2021

－

FY2021 (forecast)

0.00

－

80.00

80.00

Note：Revision made in the dividend payment forecast as of the end of the current quarter from the previous announcement：

None

3. Consolidated Business Forecast for FY2021 (April 1, 2021 to March 31, 2022)

(% indicates changes from the corresponding period of the previous fiscal year)

Net sales

Operating profit

Ordinary profit

Profit attributable to

Net income per share

owners of parent

million yen

%

million yen

%

million yen

%

million yen

%

yen sen

FY2021	2,150,000	-3.7	93,000	-8.2	88,000	-9.6	40,000	-53.4	477.95
Note：Revision made in the consolidated business forecast as of the end of the current quarter from the previous announcement：	None

Notes to Consolidated Financial Statements
(1) Changes in significant subsidiaries during the first quarter ：	None
Newly －	(Name of Company) －	Exception －	(Name of Company) －

1. Application of accounting methods which are exceptional for preparing the quarterly consolidated financial statements： Yes
2. Changes in Accounting Policies, Accounting Estimates and Restatements：

1.	Changes in accounting policies due to revisions of accounting standards, etc.：	Yes
2.	Changes in accounting policies for reasons other than the Item 1：	Yes
3.	Changes in accounting estimates：	Yes
4. Restatements：	None

Note：For details, please refer to the "2. Consolidated Financial Statements and Their Main Notes (3) Notes to Quarterly Consolidated Financial Statements (Changes in Accounting Policies)" on page 7.

1. Total Number of Outstanding Shares (Ordinary Shares)
2. 1. Number of outstanding shares as of end of the period (including treasury shares)
   2. Number of shares of treasury stock as of the end of the period
   3. Average number of outstanding shares during the period (or the cumulative consolidated accounting period as of the end of the current quarter)

First Quarter , FY2021	84,770,508 shares	FY2020	84,770,508 shares
First Quarter , FY2021	1,079,998 shares	FY2020	1,079,993 shares
First Quarter , FY2021	83,690,514 shares	First Quarter , FY2020	83,867,995 shares

Note：These quarterly financial results are not subject to quarterly review procedures based on the Financial Instruments and Exchange Act.

Note：Request for appropriate use of the business forecast and other special remarks：

The consolidated business forecast for the full year of FY2021 is not updated from the previous announcement made on May 13 2021.

The forecast statements shown in these materials are based on information available as of the published date of this release, and actual results may be different from the forecast subject to variable factors that may arise in the future. For details, please refer to the "1.Qualitative Information about Results for and at the End of the Current Quarter (3) Explanation Concerning Information regarding Consolidated Business Forecast" on page 2 of the supporting data.

Supplementary information will be uploaded on the Cosmo Energy Holdings Co., Ltd. website on August 5, 2021.

Cosmo Energy Holdings Co., Ltd(5021)-Overview of Business Results for The First Quarter of Fiscal Year Ending March 2022

Contents of Supporting Data
	Page
1. Qualitative Information about Results for and at the End of the Current Quarter
(1) Explanation Concerning Information regarding Consolidated Operating Results …………………………………………	2
(2) Explanation Concerning Information regarding Consolidated Financial Position …………………………………………	2
(3) Explanation Concerning Information regarding Consolidated Business Forecast …………………………………………	2
2. Consolidated Financial Statements and Their Main Notes
(1) Consolidated Balance Sheet…………………………………………………………………………………………………	3
(2) Consolidated Statements of Income and Comprehensive Income
Consolidated Statements of Income
Consolidated the First Three Months of FY2021 Statements of Income ………………………………………………	5
Consolidated Statements of Comprehensive Income
Consolidated the First Three Months of FY2021 Statements of Comprehensive Income………………………………	6
(3) Notes to Quarterly Consolidated Financial Statements
(Notes to Going Concern Assumption)……………………………………………………………………………………...	7
(Notes to Remarkable Changes in Shareholders' Equity) …………………………………………………………………..	7
(Application of Accounting Methods which are Exceptional for Preparing
the Quarterly Consolidated Financial Statements) …………………	7
(Changes In Accounting Policies) …………………………………………………………………………………………..	7
(Additional Information) ……………………………………………………………………………………………………	8
(Segment Information) ……………………………………………………………………………………………………...	9
(Significant Subsequent Events) …………………………………………………………………………………………..	10

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Cosmo Energy Holdings Co., Ltd(5021)-Overview of Business Results for The First Quarter of Fiscal Year Ending March 2022

1. Qualitative Information about Results for and at the End of the Current Quarter

1. Explanation Concerning Information regarding Consolidated Operating Results
   Consolidated net sales for the first quarter of FY2021 were 529.6 billion (up 89.5 billion from the same period of FY2020), operating profit 48.2 billion (operating loss of 28.0 billion in the same period of FY2020), ordinary profit 49.6 billion (ordinary loss of 28.3 billion in the same period of FY2020) and profit attributable to owners of parent for the period 27.9 billion (loss attributable to owners of parent 26.0 billion in the same period of FY2020). However, due to application of "Accounting Standard for Revenue Recognition" (ASBJ Statement No.29 issued on March 31, 2020; hereinafter, "Accounting Standard for Revenue Recognition"), etc., net sales decreased by 157.4 billion, operating profit decreased by 0.1 billion and ordinary profit increased by 0.1 billion.
   The operating results for the first quarter of FY2021 by business segment are as follows：
   However, effective from the consolidated first quarter, the Company has changed the reportable segment classification. The comparison and analysis of the first quarter is based on the reclassified classification.
2. 1. In the petroleum business segment, due to the rise in crude oil prices, despite the decrease in the sales volume of petroleum products from the same period of the previous year, the segment reported net sales of462.3 billion (up 61.4 billion from the same period of FY2020) and segment profit of 36.6 billion (segment loss of 31.7 billion in the same period of FY2020). However, due to the application of Accounting Standard for Revenue Recognition, net sales decreased by 167.5 billion and segment profit increased by 0.0 billion.
   2. In the petrochemical business segment, due to the improvement of product market conditions and the increase in the sales volume of petrochemical products from the same period of the previous year, the segment reported net sales of84.0 billion (up 34.6 billion from the same period FY2020) and segment profit of 4.6 billion (segment loss of 6.7 billion in the same period of FY2020). However, due to the application of Accounting Standard for Revenue Recognition, net sales decreased by 28.5 billion and segment profit decreased by 0.0 billion.
   3. In the oil exploration and production business segment, due to the decrease in the oil sales volume, despite the rise in the sales price of oil products from the same period of the previous year, the segment reported net sales of17.3 billion (down 2.5 billion from the same period of FY2020) and segment profit of 6.7 billion (down 0.0 billion from the same period of FY2020).
   4. In the renewable energy business segment, due to the increase in the costs associated with full-scale entry into offshore wind power, despite the wind power generation plant has been operated well, the segment reported net sales of 2.9 billion (up 0.4 billion from the same period of FY2020) and segment profit of 0.5 billion (down 0.2 billion from the same period of FY2020).
3. Explanation Concerning Information regarding Consolidated Financial Position
   As for the consolidated financial position as of the end of the first quarter of FY2021, total assets as of June 30, 2021 amounted to 1,788.9 billion, up 79.9 billion from March 31, 2021, the end of FY2020. This was mainly reflecting the increase in inventories. Net assets as of June 30, 2021 amounted to 470.4 billion with a net worth ratio of 19.3%.
4. Explanation Concerning Information regarding Consolidated Business Forecast
   The consolidated business forecast for the full year of FY2021 is not updated from the previous announcement made on May 13, 2021.

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Cosmo Energy Holdings Co., Ltd(5021)-Overview of Business Results for The First Quarter of Fiscal Year Ending March 2022

2. Consolidated Financial Statements and Their Main Notes

(1) Consolidated Balance Sheet

		(Unit：million yen)
	FY2020	1Q FY2021
	(As of March 31, 2021)	(As of June 30, 2021)
Assets
Current assets
Cash and deposits	52,972	84,402
Notes and accounts receivable - trade	234,635	－
Notes and accounts receivable - trade, and contract assets	－	231,467
Merchandise and finished goods	122,152	150,322
Work in process	351	62
Raw materials and supplies	126,923	138,944
Other	68,889	83,364
Allowance for doubtful accounts	-116	-89
Total current assets	605,808	688,474
Non-current assets
Property, plant and equipment
Buildings and structures, net	244,331	240,240
Machinery, equipment and vehicles, net	208,999	217,367
Land	315,483	315,563
Other, net	96,618	85,121
Total property, plant and equipment	865,433	858,293
Intangible assets	44,343	43,662
Investments and other assets
Investment securities	122,402	126,226
Other	71,211	72,446
Allowance for doubtful accounts	-310	-316
Total investments and other assets	193,303	198,356
Total non-current assets	1,103,080	1,100,311
Deferred assets
Bond issuance cost	128	106
Total deferred assets	128	106
Total assets	1,709,017	1,788,892

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