Cosmo Energy : Overview of Business Results for 2nd Quarter of FY2020 (PDF/899K)

(Figures in % refer to changes from the same quarter a year earlier)

November 12, 2020

Overview of Business Results

for the Second Quarter of Fiscal Year Ending March 2021

[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：	November 12, 2020	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 Second Quarter of Fiscal Year Ending March 2021 (For the period from April 1, 2020 to September 30, 2020)

(1) Consolidated operating results (cumulative total)

	Net sales		Operating profit		Ordinary profit		Profit attributable to owners of
				parent for the Second Quarter
	million yen	%	million yen	%	million yen	%	million yen	%
Second Quarter, FY2020	969,359		-26.6	8,691		-66.8	6,528		-77.6	-910	－
Second Quarter, FY2019	1,321,483		-0.9	26,163		-66.9	29,170		-62.9	14,902	-63.1

Note：Comprehensive income	Second Quarter, FY2020：-3,853 million yen (－%)	Second Quarter, FY2019： 15,602 million yen ( -67.3 %)
	Net income per share	Diluted net income per share
	for the Second Quarter	for the Second Quarter
	yen sen		yen sen
Second Quarter, FY2020	-10.87		－
Second Quarter, FY2019	177.16		149.20

Note：In the second quarter of FY2020, diluted net income per share for the second quarter is not indicated because net loss per share for the second quarter is

indicated, although there are potential common shares with dilutive effects.

(2) Consolidated Financial Position

Total assets

Net assets

Net worth ratio

million yen

million yen

%

Second Quarter, FY2020

1,604,334

349,433

14.3

FY2019

1,639,765

362,839

14.6

[Reference] Net worth

Second Quarter, FY2020：229,718 million yen FY2019：239,792 million yen

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

FY2019

－

0.00

－

80.00

80.00

FY2020

－

0.00

FY2020 (forecast)

－

80.00

80.00

Note：Revision made in the dividend payment forecast as of the end of the current quarter from the previous announcement： No

3. Consolidated Business Forecast for FY2020 (April 1, 2020 to March 31, 2021)

(% indicates change from the corresponding period of FY 2019)

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

FY2020

2,170,000

-20.7

31,000

123.1

27,000

65.8

8,500

－

101.44

Note：Revision made in the consolidated business forecast as of the end of the current quarter from the previous announcement：

Yes

Notes to Consolidated Financial Statements

(1) Change in significant subsidiaries during the second quarter ： No

Newly －

(Name of Company) －

Exception －

(Name of Company) －

(2) Adoption of accounting method uniquely adopted to prepare consolidated financial statements for the current quarter： Yes

(3) Changes in Accounting Policies, Accounting Estimates and Restatements：
1.	Changes in accounting policies due to revisions of accounting standards, etc.：	No
2.	Changes in accounting policies for reasons other than the Item 1：	No
3.	Changes in accounting estimates：	No
4. Restatements：	No

1. Total Number of Outstanding Shares (Ordinary Shares)
2. 1. Number of outstanding shares as of the 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)

Second Quarter, FY2020	84,770,508 shares	FY2019	84,770,508 shares
Second Quarter, FY2020	1,079,822 shares	FY2019	725,261 shares
Second Quarter, FY2020	83,792,021 shares	Second Quarter, FY2019	84,120,465 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 FY2020 is updated from the previous announcement made on May 21,2020.

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 "(3) Explanation Concerning Information regarding Consolidated Business Forecast" of the "1.Qualitative Information about Results for and at the End of the Current Quarter" on Page 2 of the Supporting data.

Supplementary information will be uploaded on the Cosmo Energy Holdings Co., Ltd. website on November 12, 2020.

Cosmo Energy Holdings Co., Ltd(5021)-Overview of Business Results for The Second Quarter of Fiscal Year Ending March 2021

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 ………………………………………………………………………………………………	3-4
(2) Consolidated Statements of Income and Comprehensive Income
Consolidated Statements of Income
Consolidated the First Half of FY2020 Statements of Income …………………………………………………………	5
Consolidated Statements of Comprehensive Income
Consolidated the First Half of FY2020 Statements of Comprehensive Income ………………………………………	6
(3) Consolidated Statement of Cash Flows ……………………………………………………………………………………	7-8
(4) Notes to Quarterly Consolidated Financial Statements
(Notes to Going Concern Assumption)………………………………………………………………………………………	9
(Notes to Remarkable Changes in Shareholders' Equity) ……………………………………………………………………	9
(Adoption of Accounting Method Uniquely Adopted to Prepare Consolidated Financial Statements
for the Current Quarter) …………………	9
(Additional Information) ……………………………………………………………………………………………………	9
(Segment Information) ………………………………………………………………………………………………………	10
(Significant Subsequent Events) ……………………………………………………………………………………………	10

1

Cosmo Energy Holdings Co., Ltd(5021)-Overview of Business Results for The Second Quarter of Fiscal Year Ending March 2021

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 half of FY2020 were ¥969.4 billion (down ¥352.1 billion from the same period of FY2019), operating profit ¥8.7 billion (down ¥17.5 billion from the same period of FY2019), ordinary profit ¥6.5 billion (down ¥22.7 billion from the same period of FY2019) and loss attributable to owners of parent for the period ¥0.9 billion (profit attributable to owners of parent of ¥14.9 billion in the same period of FY2019).

The operating results for the first half of FY2020 by business segment are as follows：

1. In the petroleum business segment, due to the decline in the sales volume of petroleum products and the decline in crude oil price from the same period of the previous year, the segment reported net sales of ¥893.3 billion for the first half of FY2020 (down ¥317.4 billion from the same period of FY2019) and segment profit of ¥5.1 billion (segment loss of ¥1.9 billion in the same period of FY2019).
2. In the petrochemical business segment, due to the decrease in selling volume of petrochemical products and the decline in product market conditions from the same period of the previous year, the segment reported net sales of ¥119.3 billion for the first half of FY2020 (down ¥87.1 billion from the same period of FY2019) and segment loss of ¥8.8 billion (segment profit of ¥6.6 billion in the same period of FY2019).
3. In the oil exploration and production business segment, due to the decline in the sale price of oil products, despite the increase in the oil sales volume from the same period of the previous year, the segment reported net sales of ¥27.2 billion for the first half of FY2020 (down ¥17.0 billion from the same period of FY2019) and segment profit of ¥4.5 billion (down ¥15.1 billion from the same period of FY2019).

1. Explanation Concerning Information regarding Consolidated Financial Position
   As for the Company's financial position on a consolidated basis as of the end of the first half of FY2020, total assets as of September 30, 2020 amounted to ¥1,604.3 billion, down ¥35.5 billion from March 31, 2020, the end of FY2019. This was mainly reflecting the decrease in trade receivables. Net assets as of September 30, 2020 amounted to ¥349.4 billion with a net worth ratio of 14.3%.
2. Explanation Concerning Information regarding Consolidated Business Forecast
   The consolidated business forecast for the full year of FY2020 was revised from the previous forecast announced on May 21, 2020. Compared to the previous forecast, the oil exploration and production business segment is expected to increase in sales and profits due to the rise in crude oil price. On the other hand, the petroleum business segment is expected to increase sales and decrease profit, due to the impact of inventory evaluation, despite the demand for petroleum product recovered earlier than expected. Petrochemical business segment is expected to decrease sales and profit due to the decline in product market condition. This business forecast is based on the assumptions of crude oil price at US$38/ bbl and exchange rate at JPY106/ US$. (Assumptions at the previous forecast: crude oil price US$29/ bbl, exchange rate JPY105/ US$ )

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