Overview of Business Results for 2nd Quarter of FY2021 (PDF/904K)

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

November 9, 2021

Overview of Business Results

for the Second 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： November 9, 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 Second Quarter of Fiscal Year Ending March 2022 (For the period from April 1, 2021 to September 30, 2021)

(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, FY2021	1,095,664		13.0	93,397		974.5	94,984		－	51,996	－
Second Quarter, FY2020	969,359		-26.6	8,691		-66.8	6,528		-77.6	-910	－

Note：Comprehensive income	Second Quarter, FY2021：57,092 million yen (－%)	Second Quarter, FY2020： -3,853 million yen ( － %)
		Net income per share	Diluted net income per share
		for the Second Quarter	for the Second Quarter
		yen sen		yen sen
Second Quarter, FY2021		621.11		520.33
Second Quarter, FY2020		-10.87		－

Note：1.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.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 second quarter of FY2021.

(2) Consolidated Financial Position

Total assets

Net assets

Net worth ratio

million yen

million yen

%

Second Quarter, FY2021

1,848,991

497,937

20.1

FY2020

1,709,017

449,120

19.0

[Reference] Net worth

Second Quarter, FY2021：371,029 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 second 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

－

0.00

FY2021 (forecast)

－

100.00

100.00

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

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

FY2021

million yen

%

million yen

%

million yen

%

million yen

%

yen sen

2,370,000

6.1

155,000

53.0

155,000

59.2

93,000

8.3

1,110.90

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 ： None
	Newly －	(Name of Company) －	Exception －	(Name of Company) －
(2)	Application of accounting methods which are exceptional for preparing the quarterly consolidated financial statements： Yes
(3)	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 (4) Notes to Quarterly Consolidated Financial Statements (Changes in Accounting Policies)" on page 9.

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, FY2021	84,770,508 shares	FY2020	84,770,508 shares
Second Quarter, FY2021	1,008,376 shares	FY2020	1,079,993 shares
Second Quarter, FY2021	83,716,237 shares	Second Quarter, FY2020	83,792,021 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 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 November 9, 2021.

Cosmo Energy Holdings Co., Ltd(5021)-Overview of Business Results for The Second 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 Half of FY2021 Statements of Income …………………………………………………………	5
Consolidated Statements of Comprehensive Income
Consolidated the First Half of FY2021 Statements of Comprehensive Income ………………………………………	6
(3) Consolidated Statement of Cash Flows ……………………………………………………………………………………	7
(4) Notes to Quarterly Consolidated Financial Statements
(Notes to Going Concern Assumption)………………………………………………………………………………………	9
(Notes to Remarkable Changes in Shareholders' Equity) ……………………………………………………………………	9
(Application of Accounting Methods which are Exceptional for Preparing
the Quarterly Consolidated Financial Statements) …………………	9
(Changes In Accounting Policies) …………………………………………………………………………………………...	9
(Additional Information) ……………………………………………………………………………………………………	10
(Segment Information) ………………………………………………………………………………………………………	11
(Significant Subsequent Events) ……………………………………………………………………………………………	12

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Cosmo Energy Holdings Co., Ltd(5021)-Overview of Business Results for The Second 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 half of FY2021 were ¥1,095.7 billion (up ¥126.3 billion from the same period of FY2020), operating profit ¥93.4 billion (up ¥84.7 billion from the same period of FY2020), ordinary profit ¥95.0 billion (up ¥88.5 billion from the same period of FY2020) and profit attributable to owners of parent for the period ¥52.0 billion (loss attributable to owners of parent of ¥0.9 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 ¥318.9 billion, operating profit decreased by ¥0.2 billion and ordinary profit increased by ¥0.0 billion. The operating results for the first half of FY2020 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 half is based on the reclassified classification.

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 of ¥958.3 billion for the first half of FY2021 (up ¥65.0 billion from the same period of FY2020) and segment profit of ¥65.4 billion (up ¥60.3 billion from the same period of FY2020). The sales volume of petroleum products has decreased due to changes in the accounting method for certain transactions as a result of the application of Accounting Standard for Revenue Recognition. However, if the impact of these changes is excluded, the sales volume has increased from the same period of the previous year. Due to the application of Accounting Standard for Revenue Recognition, net sales decreased by ¥336.6 billion and segment profit increased by ¥0.2 billion.
2. In the petrochemical business segment, due to the improvement of product market conditions from the same period of the previous year, the segment reported net sales of ¥176.1 billion for the first half of FY2021 (up ¥56.8 billion from the same period of FY2020) and segment profit of ¥9.0 billion (segment loss of ¥8.8 billion in the same period of FY2020). However, due to the application of Accounting Standard for Revenue Recognition, net sales decreased by ¥63.1 billion and segment profit decreased by ¥0.2 billion.
3. In the oil exploration and production business segment, due to the rise in the sales price of oil products, despite the decrease in the oil sales volume from the same period of the previous year, the segment reported net sales of ¥36.6 billion for the first half of FY2021 (up ¥9.4 billion from the same period of FY2020) and segment profit of ¥17.2 billion (up ¥12.7 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 ¥51.0 billion for the first half of FY2021 (up ¥0.7 billion from the same period of FY2020) and segment profit of ¥0.5 billion (down ¥0.4 billion from the same period of FY2020).

1. Explanation Concerning Information regarding Consolidated Financial Position
   As for the consolidated financial position as of the end of the first half of FY2021, total assets as of September 30, 2021 amounted to ¥1,849.0 billion, up ¥140.0 billion from March 31, 2021, the end of FY2020. This was mainly reflecting the increase in inventories. Net assets as of September 30, 2021 amounted to ¥497.9 billion with a net worth ratio of 20.1%.
2. Explanation Concerning Information regarding Consolidated Business Forecast
   The full-year consolidated business forecast and dividend forecast for the fiscal year ending March 31, 2022 were revised from the previous forecasts announced on May 13, 2021. For details, please refer to "Notice regarding the Revisions to Consolidated Business Forecast and Dividend Forecast for the Fiscal Year Ending March 31, 2022".

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

2. Consolidated Financial Statements and Their Main Notes

(1) Consolidated Balance Sheet

		(Unit：million yen)
	FY2020	2Q FY2021
	(As of March 31, 2021)	(As of September 30, 2021)
Assets
Current assets
Cash and deposits	52,972	88,540
Notes and accounts receivable - trade	234,635	－
Notes and accounts receivable - trade, and contract assets	－	249,019
Merchandise and finished goods	122,152	178,876
Work in process	351	74
Raw materials and supplies	126,923	141,169
Other	68,889	91,134
Allowance for doubtful accounts	-116	-97
Total current assets	605,808	748,718
Non-current assets
Property, plant and equipment
Buildings and structures, net	244,331	239,348
Machinery, equipment and vehicles, net	208,999	214,570
Land	315,483	315,457
Other, net	96,618	86,593
Total property, plant and equipment	865,433	855,970
Intangible assets	44,343	43,620
Investments and other assets
Investment securities	122,402	128,710
Other	71,211	72,202
Allowance for doubtful accounts	-310	-316
Total investments and other assets
193,303	200,596
Total non-current assets	1,103,080	1,100,187
Deferred assets
Bond issuance cost	128	85
Total deferred assets	128	85
Total assets	1,709,017	1,848,991

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