Date: May 28, 2020
Summary of Consolidated Financial Statements for the first quarter of Fiscal Year 2020 ended March 31, 2020 (IFRS basis)
(All financial information has been prepared based on the original Japanese-language document, Summary of Consolidated Financial
Statements for the first quarter announced on May 28, 2020)
Listed company name: | DMG MORI CO., LTD. | |
Stock exchange listing: | First Section of Tokyo Stock Exchange | |
Code Number: | 6141 | URLhttps://www.dmgmori.co.jp |
Company Representative: | Masahiko Mori, President | |
Contact Person | Hirotake Kobayashi, Vice President, Accounting / Finance HQ, Executive Officer | |
Phone: | +81-(0)3-6758-5900 |
Filing date of quarterly financial statements: May 29, 2020
Estimated starting date of dividend payment: -
Preparation of supplementary explanatory materials: Yes
Holding of quarterly earnings release conference: Yes
1. Consolidated business results of the first quarter ended March 31, 2020 (January 1, 2020 to March 31, 2020) | |||||||||||||
(Note: All amounts less than one million are disregarded) | |||||||||||||
(1) Consolidated business results | (% of change from same period in the previous year) | ||||||||||||
Earnings before | Income attributable to | Total comprehensive | |||||||||||
Sales revenues | Operating income | Net income | |||||||||||
income taxes | owners of the parent | income (△loss) | |||||||||||
million yen | % | million yen | % | million yen | % | million yen | % | million yen | % | million yen | % | ||
First quarter ended | |||||||||||||
87,255 | △27.6 | 3,272 | △68.6 | 1,261 | △85.7 | 87 | △98.6 | 128 | △97.9 | △9,840 | - | ||
March 31, 2020 | |||||||||||||
First quarter ended | |||||||||||||
120,586 | 5.9 | 10,417 | 70.9 | 8,845 | 78.6 | 6,380 | 116.8 | 6,191 | 120.6 | 7,784 | - | ||
March 31, 2019 |
Basic earnings (△loss)
per share
Diluted earnings (△loss)
per share
- Consolidated financial position
Ratio of equity | |||||
Equity attributable to | Equity per share attributable to | ||||
Total assets | Total equity | attributable to owners of | |||
owners of the parent | owners of the parent | ||||
the parent | |||||
million yen | million yen | million yen | % | yen | |
March 31, 2020 | 505,324 | 114,427 | 110,270 | 21.8 | 894.62 |
December 31, 2019 | 524,606 | 127,807 | 124,006 | 23.6 | 1,008.36 |
(Note) Ratio of equity attributable to owners of the parent and equity per share attributable to owners of the parent are based on the equity amount which includes amounts of hybrid capital.
2.Dividends
Dividends per share | ||||||||||||||||
Record Date | 1Q | 2Q | 3Q | Year-end | Annual | |||||||||||
yen | yen | yen | yen | yen | ||||||||||||
December 31, 2019 | - | 30.00 | - | 30.00 | 60.00 | |||||||||||
December 31, 2020 | - | |||||||||||||||
10.00 | 20.00 | |||||||||||||||
December 31, 2020 (Forecast) | 10.00 | - | ~20.00 | ~30.00 | ||||||||||||
(Note) Revision of dividend forecast in the current quarter: Yes | ||||||||||||||||
3.Consolidated earnings forecast for Fiscal Year 2020 (January 1, 2020 to December 31, 2020) | (% of change from same period in the previous year) | |||||||||||||||
Income attributable to | ||||||||||||||||
Sales revenues | Operating income | Basic earnings per share | ||||||||||||||
owners of the parent | ||||||||||||||||
million yen | % | million yen | % | million yen | % | yen | ||||||||||
320,000 | △34.1 | 5,000 | △86.6 | |||||||||||||
Full Year 2020 | To be determined | - | To be determined | |||||||||||||
~340,000 | ~△30.0 | ~10,000 | ~△73.2 | |||||||||||||
(Note)
・Revision of consolidated earnings forecast in the current quarter: Yes
・Exchange rate used for consolidated earnings forecast for fiscal year 2020: JPY 110.0 /USD, 120.0 /EUR
・Regarding consolidated earnings forecast for the fiscal year ending December 31, 2020, it is based on the assumption that the restrictions on travel for business purposes in major regions, such as the EU, Americas, China and Southeast Asia, will be lifted, the development of vaccines against COVID-19 will advance, as well as no further disorder will be caused.
4. Others
- Changes in significant subsidiaries during the first quarter ended March 31, 2020: No
- Changes in accounting policies applied and changes in accounting estimates
- Changes in accounting policies required by IFRS: No
- Changes in accounting policies other than the above: No
- Changes in accounting estimates: No
- Number of shares outstanding (Common shares)
- Number of shares outstanding at the end of the period (including treasury shares)
March 31, 2020: | 125,953,683 | December 31, 2019: | 125,953,683 |
2. Number of treasury shares at the end of the period | |||
March 31, 2020: | 3,015,903 | December 31, 2019: | 3,295,627 |
3. Average number of outstanding shares during the period (cumulative from the beginning of the period)
January - March 2020: 122,771,201January - March 2019: 121,637,406
(Note) The Company implemented trust-type employee stock ownership incentive plan in April 2018. Therefore, the shares of the company held by DMG MORI Employee Shareholders Association Exclusive Trust are included in the number of treasury shares at the end of period (1,825,400 shares as of December 31, 2019, and 1,668,100 shares as of March 31, 2020) and the number of treasury shares deducted in calculating the average number of outstanding shares during the period (2,230,525 shares from January 1 to March 31, 2019, and 1,771,950 shares from January 1 to March 31, 2020).
- Information regarding implementation of quarterly review procedures
These quarterly financial results are not subject to quarterly review procedures.
- Proper use of the earnings forecasts and other notes
The above forecast is based on information available as of the release of this report and assumptions of several uncertain factors which may affect the company's results. Actual results might be different from the above estimates due to subsequent changes in business circumstances. Regarding Fiscal Year 2020 (Forecast), please see "1. Qualitative Information Regarding Quarterly Settlement of Accounts (3) Explanation of forecasts and other projections".
We will upload additional explanation on May 28, 2020.
(Attached Documents) Index
1
1. Qualitative Information Regarding Quarterly Settlement of Accounts
(1) Explanation of operating results
For the first quarter of the fiscal year 2020 (from January 1 to March 31), the sales revenues were 87,255 million yen (726,520 thousand EUR), the operating income was 3,272 million yen (27,245 thousand EUR), and earnings before income taxes were 1,261 million yen (10,502 thousand EUR). The income attributable to owners of the parent was 128 million yen (1,073 thousand EUR). (Euro amount is converted from yen at 120.1 yen, the average exchange rate between January 1 and March 31).
DMG MORI has evolved from a machine tool manufacturer into a total solution provider that realizes the entire machining process for customers. As one of the business strategies, we promote shop automation and digitization using 5-axis control, multi-axis and additive manufacturing machines as a manufacturing platform.
We began the joint development and experiments with NTT Communications Corporation and KDDI Corporation to explore new solutions using the 5G technology, such as autonomous traveling of workpiece transfer robots in a factory, and AI-enabled chip removal. The customer portal "my DMG MORI" allows customers to check maintenance information and operation rates of their shop machines and to request operator training and remote repair & recovery services. As for operator training, we will open "DMG MORI Digital Academy" in summer 2020. The academy provides e-learning courses that are available anytime as well as traditional hands-on machining training to increase learning efficiency. With the TULIP, a platform for creating manufacturing applications, shop operators can easily create applications that realizes tasks from work instructions to shop equipment monitoring with no professional programming knowledge. The product helps increase operators' productivity. DMG MORI has already introduced the TULIP at its factories and achieved significant results.
We consider 2020s as the era of technological advancement of on-machine measurement capable of completing machining and measurement on one machine, so we are willing to partner with companies that own the advanced technologies, taking into account the adoption of the non-contact measuring technologies such as cameras and lasers for machine tools. We have agreed with Nikon Corporation that DMG MORI is to sell the non-contact measuring system (optional specification) equipped with Nikon's laser scanner. Their measuring and camera technologies will enable us to develop higher-accuracy machine tools that accelerate shop digitization.
For the technological aspect, against the backdrop of increasing demand for micro machining that uses ultra-short pulse laser (femto-second laser) for mechanically machined workpieces, we acquired minority stake in GLOphotonics SAS of France to move forward with the joint research and development on the femto-second laser transmission technology with them. We strive to quickly respond to market changes and develop new products that can contribute to the society.
As for sales, we have canceled exhibitions and private shows scheduled to participate in and hold around the world due to the global spread of COVID-19. Instead of the Iga Innovation days originally scheduled in May 2020, we plan on holding alternative events called "Technology Friday" every Friday from June to December for a small group of customers at a time. For product promotion, we are working on the creation of a number of super-high precision videos that combine full CG and 4K movies in an attempt to convey detailed product performance and investment effects to customers in an easy-to-understand manner, as compared to traditional paper-based catalogs and visual observation.
Furthermore, we began "digital acceptance test" using online meetings, by which customers can check products in real time through videos from multiple cameras installed on the machine tool and system before shipment. We continue to contribute to increasing customer productivity by fully leveraging our cutting-edge digital solutions.
DMG MORI places a top priority on the health of its employees. We promote well-being of every employee by setting the upper limit of daily working hours and thoroughly monitoring the rate of paid leave taken. As the preventive measures against the virus infection, those who usually commute by public transportation are currently not allowed to do so, and asked to work from home instead. We provide support for them to smoothly engage in remote work by use of TV conference and online educational training.
As one of the approaches for environmental conservation, DMG MORI AKTIENGESELLSHAFT in Europe set a goal to achieve carbon neutral operations in 2020. In Japan, we have switched the power supply company to ORIX Corporation to purchase zero carbon emissions electricity at Tokyo Global Headquarters. We now estimate that the office will be able to reduce approximately 385.8 tons of carbon emissions per year. We plan on transitioning to zero carbon emissions electricity at our other operation bases in Japan.
We have been putting effort on providing educational support for educational institutions in cooperation with local governments, and will lend our cutting-edge machines to Hyogo Prefectural Monodzukuri Institute free of charge based on the cooperation agreement. DMG MORI continues to fulfill its responsibilities as a global company and increase its company value through sustainable business growth.
2
The new orders during the first quarter totaled 78.3 billion yen, a 35% decrease from the result for the comparable period of 2019. The order volume of machine tools reached its peak in the first quarter of 2018, followed by two years of correction period. Although the market showed a sign of moderate recovery at the beginning of the year, negative impacts of COVID-19 have caused customers in China and other regions to hold back on investments since February and March, respectively. However, customers who are willing to continue capital investments have been proceeding with process integration, shop automation and digitization, which as a result contributed to an 8% rise in order unit price over the last year's figure. Along with lowered shop operation rates of customers due to COVID-19, the orders for machine recovery services and repair parts also fell 16%. The orders for products and services other than machine tools and the related services, on the other hand, increased 4% thanks to the solid performance of our subsidiaries including one that supplies components for semiconductor manufacturing equipment.
In the Americas, where demand had been relatively robust for the first half of the quarter, the new orders slipped 1% below the 2019 result although the decrease rate remined lower than the rest of the world. The other regions slumped into correction territory and saw a decline of 44% in Japan, 51% in Europe and 45% in the Asian region including China. By industry, the demand from the medical equipment, semiconductor manufacturing equipment and die & mold sectors demonstrated a steady growth. However, the demand from the aircraft-related sector, which was on the uptick until recently, abruptly plunged, and the automotive market continued to be more on the bearish side. By machine, our cutting-edge technologies, such as additive manufacturing that can quickly respond to market environmental changes and ultrasonic machines that have expanded their application to semiconductor-related components, are receiving high reputation from customers as well as 5-axis control machines and multi-axis machines.
Restrictions on going out and traveling put in place across the world slowed the sales and service activities during April, but those activities have started to get back in gear since the middle of May. As we see customers gradually increasing their shop operation rates, the demand for machine tools is expected to bounce back. DMG MORI promotes shop automation and digitization by process integration machines, and continues to make utmost efforts to increase orders.
(100 Million Yen) | Amount in JPY (Left) | Amount in EUR (Right) | ||
1,600 |
1,400 | 1,385 | ||||||||||||||||
1,276 | |||||||||||||||||
1,206 | 1,183 | ||||||||||||||||
1,123 | |||||||||||||||||
1,200 | 1,121 | 1,126 | |||||||||||||||
1,055 | 1,063 | 1,081 | 1,034 | 1,039 | |||||||||||||
1,022 | |||||||||||||||||
972 | |||||||||||||||||
1,000 | 928 | 920 | 920 | 931 | 949 | ||||||||||||
892 | 904 | 898 | |||||||||||||||
844 | 880 | ||||||||||||||||
831 | 981 | ||||||||||||||||
775 | 763 | 917 | 925 | 913 | |||||||||||||
800 | 720 | 854 | 844 | ||||||||||||||
875 | |||||||||||||||||
799 | 680 | 806 | 770 | ||||||||||||||
753 | 753 | 762 | |||||||||||||||
702 | 743 | 725 | 746 | 741 | |||||||||||||
600 | 691 | 684 | 719 | 726 | 668 | 684 | 671 | ||||||||||
625 | 617 |
400 | Compared to the 1st quarter, 2019, | In JPY | -37.1% | ||||||||||||||||||||||||||||
In EUR | -34.5% | ||||||||||||||||||||||||||||||
200 | Compared to the 4th quarter, 2019, | In JPY | -13.5% | ||||||||||||||||||||||||||||
In EUR | -13.4% | ||||||||||||||||||||||||||||||
0 | |||||||||||||||||||||||||||||||
Jan-Mar | Apr-Jun | Jul-Sep | Oct-Dec | Jan-Mar | Apr-Jun | Jul-Sep | Oct-Dec | Jan-Mar | Apr-Jun | Jul-Sep | Oct-Dec | Jan-Mar | Apr-Jun | Jul-Sep | Oct-Dec | Jan-Mar | Apr-Jun | Jul-Sep | Oct-Dec | Jan-Mar | Apr-Jun | Jul-Sep | Oct-Dec | Jan-Mar | Apr-Jun | Jul-Sep | Oct-Dec | ||||
FY12 | FY13 | FY14 | FY15 | FY16 | FY17 | FY18 | |||||||||||||||||||||||||
(Million EUR)
1,600
1,400
1,200
970
1,000
898
815
800
785 752
678 600
400
200
0
Apr-JunJul-SepOct-Dec
(Note) Euro amount is converted from yen at the market exchange rate of each period.
3
Consolidated results of the first quarter of the fiscal year ended March 31, 2020 is as follows: | Unit | : 100 Million Yen | ||||
(Million EUR) | ||||||
January to | January to | Difference | January to | |||
March, 2019 | March, 2020 | December, 2020 | ||||
Sales revenues | 1,206 | 873 | △333 | 3,200~3,400 | ||
(963) | (727) | (△237) | (2,667~2,833) | |||
Operating income | 104 | 33 | △71 | 50~100 | ||
(83) | (27) | (△56) | (42~83) | |||
Operating income / Sales revenues | 8.6% | 3.8% | △4.9%pts | 1.6%~2.9% | ||
Income attributable to owners of the parent | 62 | 1 | △61 | |||
(49) | (1) | (△48) | To be determined | |||
(Note) Euro amount is converted from yen at the average or forecasted exchange rate of each fiscal period; 125.2yen/EUR for the figures of January to March, 2019, 120.1yen/EUR for those of January to March, 2020, and 120.0 yen/EUR for the figures of January to December, 2020.
(2) Explanation of financial position
Total assets at the end of the first quarter of fiscal year 2020 amounted to 505,324 million yen. Total equity is 114,427 million yen and ratio of equity attributable to owners of the parent is 21.8%.
(3) Explanation of forecasts and other projections
Reflecting the order decrease due to the impact of COVID-19, we have made a downward revision of consolidated earnings forecast for fiscal year 2020 from the previous announcement released on February 14, 2020.
Consolidated earnings forecast is based on the assumption that the restrictions on travel for business purposes in major regions, such as the EU, Americas, China and Southeast Asia, will be lifted, the development of vaccines against COVID-19 will advance, as well as no further disorder will be caused.
Consolidated earnings forecast
Unit : 100 Million yen (Million EUR)
Released on February 14 | Released on May 28 | ||
Difference | |||
January to December, 2020 | January to December, 2020 | ||
4,000 | 3,200~3,400 | △800~△600 | |
Sales revenues | (2,667~2,833) | (△667~△500) | |
(3,333) | |||
Operating income | 200 | 50~100 | △150~△100 |
(167) | (42~83) | (△125~△83) | |
Operating income / Sales revenues | 5.0% | 1.6%~2.9% | △3.4%pts~△2.1%pts |
85 | - | ||
Income attributable to owners of the parent | To be determined | ||
(71) | (-) |
January to December,
2019
4,858
(3,979)
373
(306)
7.7%
180
(147)
(Note)
・Exchange rate used for consolidated earnings forecast for fiscal year 2020: JPY 110.0 /USD and 120.0 /EUR. ・Euro amount is converted from yen at the average exchange rate of 122.1 yen/EUR for fiscal year 2019.
・This forecast is based on information available as of the release of this report and assumptions of several uncertain factors which may affect the company's results. Actual results might be different from the above estimates due to subsequent changes in the circumstances.
4
2.Quarterly Consolidated Financial Statements
- Quarterly consolidated statements of financial position
(Million Yen) | ||
December 31, 2019 | March 31, 2020 | |
(Assets) | ||
Current assets | ||
Cash and cash equivalents | 27,695 | 23,778 |
Trade and other receivables | 55,314 | 48,900 |
Other financial assets | 5,464 | 5,127 |
Inventories | 120,862 | 120,048 |
Other current assets | 9,072 | 10,808 |
Total current assets | 218,409 | 208,663 |
Non-current assets | ||
Property, plant and equipment | 130,943 | 126,419 |
Right-of-use assets | 18,095 | 17,421 |
Goodwill | 66,516 | 65,008 |
Other intangible assets | 62,773 | 61,760 |
Other financial assets | 12,871 | 11,208 |
Investments in associates and joint ventures | 5,751 | 5,493 |
Deferred tax assets | 4,074 | 4,144 |
Other non-current assets | 5,170 | 5,205 |
Total non-current assets | 306,196 | 296,661 |
Total assets | 524,606 | 505,324 |
5
(Million Yen) | ||
December 31, 2019 | March 31, 2020 | |
(Liabilities and equity) | ||
Current liabilities | ||
Trade and other payables | 54,851 | 55,131 |
Interest-bearing bonds and borrowings | 35,157 | 71,173 |
Contract liabilities | 37,517 | 35,342 |
Other financial liabilities | 98,505 | 96,116 |
Accrued income taxes | 7,388 | 5,093 |
Provisions | 34,738 | 31,295 |
Other current liabilities | 4,393 | 3,982 |
Total current liabilities | 272,553 | 298,135 |
Non-current liabilities | ||
Interest-bearing bonds and borrowings | 73,539 | 43,320 |
Other financial liabilities | 32,566 | 31,770 |
Net employee defined benefit liabilities | 5,594 | 5,581 |
Provisions | 5,219 | 4,980 |
Deferred tax liabilities | 6,203 | 5,865 |
Other non-current liabilities | 1,123 | 1,242 |
Total non-current liabilities | 124,246 | 92,762 |
Total liabilities | 396,799 | 390,897 |
Equity | ||
Subscribed capital | 51,115 | 51,115 |
Capital surplus | - | - |
Hybrid capital | 49,505 | 49,505 |
Treasury shares | △6,319 | △5,849 |
Retained earnings | 46,399 | 42,314 |
Other components of equity | △16,695 | △26,815 |
Equity attributable to owners of the parent | 124,006 | 110,270 |
Non-controlling interests | 3,800 | 4,156 |
Total equity | 127,807 | 114,427 |
Total liabilities and equity | 524,606 | 505,324 |
6
(2) Quarterly consolidated statements of income
(Million Yen) | |
First quarter ended | First quarter ended |
March 31, 2019 | March 31, 2020 |
(January 1 to | (January 1 to |
March 31, 2019) | March 31, 2020) |
Revenues
Sales revenues
Other operating revenues
Total revenue
Cost
Changes in merchandise, finished goods and work in progress for sale
Costs of raw materials, consumables and goods for resale Personnel costs
Depreciation and amortization
Other operating costs
Total costs
Operating income
Financial income
Financial costs
Share of profits of associates and joint ventures accounted for using equity method
Earnings before income taxes
Income taxes
Net income
Income attributable to:
Owners of the parent
Non-controlling interests
Net income
Earnings (△loss) per share
Basic (yen)
Diluted (yen)
120,586 | 87,255 |
2,164 | 1,720 |
122,750 | 88,975 |
△10,393 | △1,013 |
64,050 | 37,790 |
33,019 | 29,291 |
5,481 | 5,853 |
20,174 | 13,781 |
112,333 | 85,703 |
10,417 | 3,272 |
97 | 114 |
1,690 | 2,183 |
20 | 57 |
8,845 | 1,261 |
2,464 | 1,173 |
6,380 | 87 |
6,191 | 128 |
188 | △41 |
6,380 | 87 |
48.74 | △1.13 |
48.58 | △1.13 |
7
(3) Quarterly consolidated statements of comprehensive income
(Million Yen) | ||
First quarter ended | First quarter ended | |
March 31, 2019 | March 31, 2020 | |
(January 1 to | (January 1 to | |
March 31, 2019) | March 31, 2020) | |
Net income | 6,380 | 87 |
Other comprehensive income | ||
Items that will not be reclassified subsequently to profit or loss | ||
Remeasurements of defined benefit plans | 9 | 215 |
Change in fair value measurements of financial assets at fair | 634 | △1,197 |
value through other comprehensive income | ||
Share of other comprehensive income of associates accounted | 2 | - |
for using equity method | ||
Subtotal | 645 | △982 |
Items that may be reclassified subsequently to profit or loss | ||
Exchange differences on translation of foreign operations | 877 | △8,957 |
Effective portion of changes in fair value of cash flow hedge | △120 | 11 |
Subtotal | 757 | △8,945 |
Total other comprehensive income | 1,403 | △9,927 |
Comprehensive income (△loss) | 7,784 | △9,840 |
Comprehensive income (△loss) attributable to: | ||
Owners of the parent | 7,595 | △9,740 |
Non-controlling interests | 188 | △99 |
Total | 7,784 | △9,840 |
8
(4) Quarterly consolidated statements of changes in equity
(Million Yen) | ||||||||||
Equity attributable to owner of the parent | Non-controlling | |||||||||
Subscribed | Capital | Hybrid | Treasury | Retained | Other | Total | interest share of | Total equity | ||
capital | surplus | capital | shares | earnings | components | equity | ||||
of equity | ||||||||||
As of January 1, 2019 | 51,115 | - | 49,505 | △8,571 | 37,498 | △18,435 | 111,113 | 3,053 | 114,166 | |
Impact of changes in | ||||||||||
△347 | △347 | △347 | ||||||||
accounting policies | ||||||||||
As of January 1, 2019 | ||||||||||
51,115 | - | 49,505 | △8,571 | 37,151 | △18,435 | 110,765 | 3,053 | 113,818 | ||
(revised) | ||||||||||
Net income | 6,191 | 6,191 | 188 | 6,380 | ||||||
Other comprehensive | ||||||||||
1,403 | 1,403 | 1,403 | ||||||||
income | ||||||||||
Total comprehensive income | ||||||||||
- | - | - | - | 6,191 | 1,403 | 7,595 | 188 | 7,784 | ||
(△loss) | ||||||||||
Payments to owners | ||||||||||
△537 | △537 | △537 | ||||||||
of hybrid capital | ||||||||||
Treasury shares | ||||||||||
△0 | △0 | △0 | ||||||||
acquisition | ||||||||||
Treasury shares | ||||||||||
△163 | 583 | △52 | 367 | 367 | ||||||
disposition | ||||||||||
Cash dividends | △3,041 | △3,041 | △58 | △3,100 | ||||||
Transfer from retained | ||||||||||
162 | △162 | - | - | |||||||
earnings to capital surplus | ||||||||||
Gain of subsidiaries | - | - | ||||||||
Transfer from other | ||||||||||
components of equity to | 9 | △9 | - | - | ||||||
retained earnings | ||||||||||
Total transaction with | ||||||||||
- | △0 | - | 583 | △3,732 | △62 | △3,211 | △58 | △3,270 | ||
owners of the parent | ||||||||||
Acquisition of | ||||||||||
0 | 0 | 4 | 5 | |||||||
non-controlling interests | ||||||||||
Changes in ownership | ||||||||||
interests in subsidiaries and | - | 0 | - | - | - | - | 0 | 4 | 5 | |
others | ||||||||||
As of March 31, 2019 | 51,115 | - | 49,505 | △7,987 | 39,610 | △17,094 | 115,150 | 3,187 | 118,338 | |
9
(Million Yen) | ||||||||||
Equity attributable to owner of the parent | Non-controlling | |||||||||
Subscribed | Capital | Hybrid | Treasury | Retained | Other | Total | interest share of | Total equity | ||
capital | surplus | capital | shares | earnings | components | equity | ||||
of equity | ||||||||||
As of January 1, 2020 | 51,115 | - | 49,505 | △6,319 | 46,399 | △16,695 | 124,006 | 3,800 | 127,807 | |
Net income | 128 | 128 | △41 | 87 | ||||||
Other comprehensive | ||||||||||
△9,869 | △9,869 | △58 | △9,927 | |||||||
income | ||||||||||
Total comprehensive income | ||||||||||
- | - | - | - | 128 | △9,869 | △9,740 | △99 | △9,840 | ||
(△loss) | ||||||||||
Payments to owners | ||||||||||
△544 | △544 | △544 | ||||||||
of hybrid capital | ||||||||||
Treasury shares | ||||||||||
△0 | △0 | △0 | ||||||||
acquisition | ||||||||||
Treasury shares | ||||||||||
△204 | 552 | △34 | 313 | 313 | ||||||
disposition | ||||||||||
Cash dividends | △3,681 | △3,681 | △73 | △3,755 | ||||||
Transfer from retained | ||||||||||
203 | △203 | - | - | |||||||
earnings to capital surplus | ||||||||||
Gain of subsidiaries | △82 | △82 | 523 | 440 | ||||||
Transfer from other | ||||||||||
components of equity to | 215 | △215 | - | - | ||||||
retained earnings | ||||||||||
Total transaction with | ||||||||||
- | △0 | - | 469 | △4,213 | △250 | △3,995 | 449 | △3,545 | ||
owners of the parent | ||||||||||
Acquisition of | ||||||||||
0 | 0 | 5 | 5 | |||||||
non-controlling interests | ||||||||||
Changes in ownership | ||||||||||
interests in subsidiaries and | - | 0 | - | - | - | - | 0 | 5 | 5 | |
others | ||||||||||
As of March 31, 2020 | 51,115 | - | 49,505 | △5,849 | 42,314 | △26,815 | 110,270 | 4,156 | 114,427 | |
10
(5) Quarterly consolidated statements of cash flows
(Million Yen) | |||
First quarter ended | First quarter ended | ||
March 31, 2019 | March 31, 2020 | ||
(January 1 to | (January 1 to | ||
March 31, 2019) | March 31, 2020) | ||
Cash flows from operating activities | |||
Earnings or losses before income taxes | 8,845 | 1,261 | |
Depreciation and amortization | 5,481 | 5,853 | |
Loss (gain) on sales/disposal of property, plant and | |||
13 | △25 | ||
equipment (△: gain) | |||
Financial income and costs (△: gain) | 1,593 | 2,068 | |
Share of profits of associates and joint ventures accounted | |||
△20 | △57 | ||
for using equity method (△: gain) | |||
Other non-cash transactions (△: gain) | △63 | 154 | |
Changes in asset and liability items: | |||
Inventories (△: increase) | △9,453 | △1,080 | |
Trade and other receivables (△: increase) | 4,065 | 6,363 | |
Trade and other payables (△: decrease) | 8,306 | 408 | |
Contract liabilities (△: decrease) | 630 | △1,336 | |
Provisions (△: decrease) | △400 | △3,180 | |
Others | △2,221 | △3,341 | |
Subtotal | 16,775 | 7,087 | |
Interest received | 95 | 115 | |
Dividends received | 5 | 0 | |
Interest paid | △980 | △711 | |
Income tax paid | △2,901 | △3,997 | |
Net cash flows from operating activities | 12,995 | 2,495 | |
Cash flows from investing activities | |||
Purchases of property, plant and equipment | △2,345 | △1,720 | |
Proceeds from sales of property, plant and equipment | 28 | 109 | |
Purchases of intangible assets | △728 | △1,150 | |
Purchase of investments in subsidiaries resulting in change | |||
△395 | △119 | ||
in scope of consolidation | |||
Acquisition of associated companies, net of cash acquired | - | △135 | |
Purchases of financial instruments | △200 | △120 | |
Other | 23 | 12 | |
Net cash flows from investing activities | △3,616 | △3,122 |
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(Million Yen) | |||
First quarter ended | First quarter ended | ||
March 31, 2019 | March 31, 2020 | ||
(January 1 to | (January 1 to | ||
March 31, 2019) | March 31, 2020) | ||
Cash flows from financing activities | |||
Net increase (decrease) in current borrowings | △5,399 | 15,051 | |
Payments for non-current borrowings | △8,660 | △8,614 | |
Payments for lease liabilities | △1,334 | △1,631 | |
Dividends paid | △2,663 | △3,646 | |
Dividends paid to non-controlling interests | △54 | △71 | |
Payments for obligations for non-controlling interests | △1 | △3,358 | |
Payments to owners of hybrid capital | △537 | △544 | |
Other | 360 | 175 | |
Net cash flows from financing activities | △18,291 | △2,639 | |
Effect of exchange rate changes on cash and cash equivalents | △305 | △650 | |
Increase (decrease) in cash and cash equivalents | △9,218 | △3,917 | |
Cash and cash equivalents at the beginning of period | 27,368 | 27,695 | |
Cash and cash equivalents at the end of period | 18,149 | 23,778 | |
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-
Notes on going concern assumption
Not applicable. - Notes on quarterly consolidated financial statements
1. Reporting entity
DMG MORI Co., Ltd. (the "Company") is a company established under Japanese law. The Company domiciles in Japan and its registered office is in 106 Kitakoriyama-cho,Yamato-Koriyama City, Nara.
The consolidated financial statements of the Company are reported as of March 31, 2020 and composed of the Company, its associates and equity interests to related companies (the "Group"). The Group engages in businesses related to providing total solutions utilizing of machine tools (Machining Centers, Turning Centers, Turn-Mill Complete Machining Centers, Universal Milling machines for 5-axis machining), software (user interface, technology cycles and embedded software), measuring devices with service support, application, and engineering.
2. Basis of preparations
(1) Accounting standards complied with
These quarterly consolidated financial statements have been prepared in accordance with IAS 34 Interim Financial Reporting, pursuant to the provisions set forth in Article 93 of the Ordinance on Terminology, Forms, and Preparation Methods of Quarterly Consolidated Financial Statements, etc. (Cabinet Office Ordinance No. 64 of 2007), as they satisfy all of the requirements for a "Specified Company" prescribed in Article 1-2, Paragraph 1, Item (i), (a) - (c) and (d)-3 of the Ordinance on Terminology, Forms, and Preparation Methods of Consolidated Financial Statements (Cabinet Office Ordinance No. 64 of 2007).
(2) Basis of Measurement
These quarterly consolidated financial statements have been prepared on a historical cost basis, with the exception of some financial assets which are measured at fair value.
(3) Presentation currency and units used
These quarterly consolidated financial statements are presented in Japanese yen, with figures less than one million yen being rounded down.
(4) Significant accounting policy
The significant accounting policies applied to the quarterly consolidated financial statements are identical to those applied to the consolidated financial statements for the previous fiscal year ended December 31, 2019.
3. Segmental information
(1) Scope of segment reporting
The reporting segments of the Group is based on the business areas where independent financial statements are available and that are regularly reviewed by executive boards for the purposes of decision-making on the allocation of management resources and evaluation of profitability. The segments are divided according to products and services that the Group deals with and difference in internal reporting and management method associated with the products and services.
The business activities of the Group are categorized into the business segments of "Machine Tools" and "Industrial Services".
13
(2) Calculation method of net sales, income or loss and other items by each reportable segment
The amount of segment income (△loss) is based on operating income (△loss) and Share of profits of at equity-accounted investments. Sales
revenues with other segments are the prices determined based on the market prices.
(3) Segment sales and income
The segment sales and income by each reportable segment are summarized as follows.
First quarter ended March 31, 2019 (January 1 to March 31, 2019)
(Million Yen) | ||||||||||||||
Reporting Segments | Adjustment (Note) | |||||||||||||
Industrial | Figures in consolidated | |||||||||||||
Machine Tools | Services | Total | Corporate | Adjustment | statements of income | |||||||||
Sales revenues | ||||||||||||||
Sales revenues with third | ||||||||||||||
parties | 88,018 | 32,563 | 120,581 | 5 | - | 120,586 | ||||||||
Sales revenues with other | ||||||||||||||
segments | 49,101 | 3,337 | 52,439 | 471 | △52,910 | - | ||||||||
Total | 137,119 | 35,900 | 173,020 | 476 | △52,910 | 120,586 | ||||||||
Segment income | 9,153 | 4,684 | 13,837 | △3,692 | 292 | 10,438 | ||||||||
Financial income | 97 | |||||||||||||
Financial costs | △1,690 | |||||||||||||
Earnings before income taxes | 8,845 |
(Note) "Adjustment" includes trade elimination of inter-segment trade amounts and net profit of corporate functions.
First quarter ended March 31, 2020 (January 1 to March 31, 2020)
(Million Yen) | ||||||||||||||
Reporting Segments | Adjustment (Note) | |||||||||||||
Industrial | Figures in consolidated | |||||||||||||
Machine Tools | Services | Total | Corporate | Adjustment | statements of income | |||||||||
Sales revenues | ||||||||||||||
Sales revenues with third | ||||||||||||||
parties | 62,924 | 24,325 | 87,250 | 4 | - | 87,255 | ||||||||
Sales revenues with other | ||||||||||||||
segments | 40,402 | 4,792 | 45,194 | 404 | △45,599 | - | ||||||||
Total | 103,326 | 29,118 | 132,445 | 408 | △45,599 | 87,255 | ||||||||
Segment income | 2,628 | 3,453 | 6,081 | △3,644 | 892 | 3,329 | ||||||||
Financial income | 114 | |||||||||||||
Financial costs | △2,183 | |||||||||||||
Earnings before income taxes | 1,261 |
(Note) "Adjustment" includes trade elimination of inter-segment trade amounts and net profit of corporate functions.
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DMG Mori Co. Ltd. published this content on 28 May 2020 and is solely responsible for the information contained therein. Distributed by Public, unedited and unaltered, on 28 May 2020 06:47:04 UTC