Consolidated Financial Results for the Year Ended March 31, 2021

(IFRS)

April 27, 2021

Listed company: Hitachi Construction Machinery Co., Ltd. (HCM)

Stock exchange: Tokyo (first section)

Code number: 6305

URL https://www.hitachicm.com/global/

Representative: Kotaro Hirano, Executive Officer, President & CEO

Scheduled date of ordinary General Meeting of Shareholders: June 28, 2021

Scheduled date of commencement of payment of dividends: May 31, 2021

Scheduled date for submission of Securities Report: June 29, 2021

Supplementary materials to the financial statements have been prepared: Yes

Presentation will be held to explain the financial statements: Yes (for institutional investors, analysts and journalists) (Rounded off to the nearest million)

1. Consolidated results for the year ended March 2021 (April 1, 2020 to March 31, 2021)

  1. Consolidated results

Adjusted

Income before

Net income

Revenue

Net income

attributable to

Operating income

income taxes

owners of the parent

Millions of

%

Millions of

%

Millions of

%

Millions of

%

Millions of

%

yen

yen

yen

yen

yen

March 31, 2021

813,331

(12.7)

32,710

(57.3)

25,578

(61.9)

14,627

(67.3)

10,340

(74.9)

March 31, 2020

931,347

(9.9)

76,618

(34.4)

67,103

(34.7)

44,768

(39.7)

41,171

(39.9)

Notes: "Adjusted operating income" is presented as revenues less cost of sales as well as selling, general and administrative expenses.

Net income attributable to

Net income attributable to

Profit on equity attributable

Ratio of income before

Operating income to

owners of the Parent per share

owners of the Parent per share

to owners of the parent

income taxes

Revenue

(basic)

(diluted)

Yen

Yen

%

%

%

March 31, 2021

48.62

48.62

2.1

2.1

3.5

March 31, 2020

193.61

193.61

8.6

5.7

7.8

References: Share of profits (losses) of investments accounted for using the equity method

March 31, 2021: ¥1,428million

March 31, 2020: ¥2,682million

  1. Consolidated financial position

Total equity attributable to

Equity attributable to owners

Equity per share

Total assets

Total equity

attributable to owners of

owners of the parent

of the parent ratio

the parent

Millions of yen

Millions of yen

Millions of yen

%

Yen

March 31, 2021

1,220,571

569,245

514,291

42.1

2,418.46

March 31, 2020

1,167,567

525,111

473,537

40.6

2,226.80

(3)

Consolidated cash flows

Net cash from operating activities

Net cash from investing activities

Net cash from financing activities

Cash and cash equivalents at

end of year

Millions of yen

Millions of yen

Millions of yen

Millions of yen

March 31, 2021

91,339

(32,281)

(46,011)

80,330

March 31, 2020

22,682

(34,749)

10,993

62,165

2. Dividends status

Cash dividends per share

Dividend Payout

Dividend

Dividends paid

attributable to

First

Second

Third

Year end

Total

(Total)

Ratio

owners of the parent

(Consolidated)

Quarter

Quarter

Quarter

(Consolidated)

Yen

Yen

Yen

Yen

Yen

Millions of yen

%

%

March 31, 2020

36.00

24.00

60.00

12,759

31.0

2.7

March 31, 2021

10.00

10.00

20.00

4,253

41.1

0.9

March 31, 2022

(Projection)

Interim and year-end dividends for the fiscal year ending March 2022 are to be determined.

(English translation of "KESSAN TANSHIN" originally issued in the Japanese language.)

3. Consolidated earnings forecast for the full year ending March 2022 (April 1, 2021 to March 31, 2022)

Net income

Adjusted

Income before

Net income attributable to

attributable

Revenue

to owners of

Operating income

income taxes

owners of the parent

the parent

per share

March 31,

Millions of yen

%

Millions of yen

%

Millions of yen

%

Millions of yen

%

Yen

2022

880,000

8.2

62,000

89.5

56,000

118.9

32,300

212.4

151.89

Notes: The percentages indicated show changes from the same period of the previous fiscal year.

*Notes

  1. Important changes in the scope of the consolidation during period(changes involving specific subsidiaries accompanying changes in the scope of consolidation): None
  2. Changes in accounting policies; changes in accounting estimates

[1]

Changes in accounting policies required by IFRS

None

[2]

Changes in accounting policies other than those in [1]

None

[3]

Changes in accounting estimates

None

  1. Number of outstanding shares (common shares)
    [1] Number of outstanding shares (including treasury shares)

March 2021

215,115,038

March 2020

215,115,038

[2] Number of treasury shares

March 2021

2,463,047

March 2020

2,461,867

[3] Average number of common shares outstanding during the fiscal year (shares)

March 2021

212,652,631

March 2020

212,654,154

(Reference) Non-consolidated Financial Results

1. Non-consolidated results for the year ended March 2021(April 1, 2020 to March 31, 2021)

(1) Non-consolidated results

(Rounded off to the nearest million)

Net sales

Operating income

Ordinary income

Net income

Millions of yen

%

Millions of yen

%

Millions of yen

%

Millions of yen

%

March 31, 2021

392,842

(18.6)

(23,550)

-

8,951

(74.0)

12,142

(64.1)

March 31, 2020

482,571

(11.6)

(4,665)

-

34,434

(40.3)

33,832

(33.0)

Notes: The percentages indicated show changes from the same period of the previous fiscal year.

Net income per share

Net income per share (Diluted)

Yen

Yen

March 31, 2021

57.10

57.10

March 31, 2020

159.10

159.10

(2) Non-consolidated financial position

Total assets

Net assets

Equity ratio

Net assets per share

Millions of yen

Millions of yen

%

Yen

March 31, 2021

609,918

300,991

49.3

1,415.42

March 31, 2020

608,967

295,232

48.5

1,388.33

(Reference) Total equity at fiscal year-end

March 2021: ¥300,991 million

March 2020: ¥295,232 million

Indication of audit procedure implementation status

This earnings report is exempt from audit procedure.

(English translation of "KESSAN TANSHIN" originally issued in the Japanese language.)

Explanation on the appropriate use of results forecasts and other important items

Any forward-looking statements in the report, including results forecasts, are based on certain assumptions that were deemed rational as well as information currently available to the Company at this time. However, various factors could cause actual results to differ materially. Please refer to ''1. Management Performance and Financial Conditions,

  1. Outlook for the Fiscal Year Ending March 2022'' of the attachment for conditions serving as assumptions for results forecasts.

(English translation of "KESSAN TANSHIN" originally issued in the Japanese language.)

Index of the Attachment

1. Management Performance and Financial Conditions ...........................................................................

2

(1) Management Results.........................................................................................................................

2

(2)

Outlook for the Fiscal Year Ending March 2022 .............................................................................

4

(3)

Analysis of Financial Condition .......................................................................................................

5

(4)

Dividend Policy.................................................................................................................................

7

2. Our Fundamental Position Concerning Selection of Accounting Standards Policy...............................

8

3. Consolidated Financial Statements.........................................................................................................

9

(1)

Consolidated Balance Sheets ............................................................................................................

9

(2)

Consolidated Statements of Income and Comprehensive Income..................................................

10

Consolidated Statements of Income ...............................................................................................

10

Consolidated Statements of Comprehensive Income .....................................................................

11

(3)

Consolidated Statements of Changes in Equity ..............................................................................

12

(4)

Consolidated Statements of Cash Flows.........................................................................................

14

(5)

Notes on Consolidated Financial Statements..................................................................................

15

(Notes on the Preconditions for a Going Concern) ........................................................................

15

(Important matters for compiling consolidated financial statements) ............................................

16

(Segment Information) ...................................................................................................................

18

(Note on consolidated statements of income) ................................................................................

22

(Earnings per share)........................................................................................................................

23

(Important subsequent events)........................................................................................................

23

(English translation of "KESSAN TANSHIN" originally issued in the Japanese language.)

1

1. Management Performance and Financial Conditions

(1) Management Results

As the HCM Group's medium-term management plan starting in the fiscal year under review,, "Realizing Tomorrow's Opportunities 2022," in order to further strengthen the value chain business, on which the Group continues to focus, the Group is using state-of-the-art digital technology to provide deeper solutions at every point of contact with customers, and is working to make its corporate structure resilient to change.

During the fiscal year under review (April 1, 2020 to March 31, 2021), revenue was ¥813,331 million (a decrease of 12.7% year-on-year), mainly due to the impact of the yen's appreciation, despite an increase in sales of rental and used machinery in the value chain business, on which we are focusing. This was due to a decrease in new machinery sales and parts and service caused by the deteriorating market conditions due to COVID-19 and a decrease in new mining machinery sales and parts and service due to customers restraining capital expenditure. As for consolidated income items, adjusted operating income was ¥32,710 million (a decrease of 57.3% year-on-year), mainly due to a decrease in revenue, an increase in the cost of sales ratio, and the impact of yen appreciation. Profit attributable to owners of the parent company was ¥10,340 million (a decrease of 74.9% year-on-year), mainly due to a decrease in adjusted operating income, a decrease in equity in earnings of unconsolidated subsidiaries and affiliates, and an increase in the contribution of non-controlling interests.

Business results by segment are described below.

1. Construction machinery business

Demand for hydraulic excavators in the fiscal year under review was lower than that in the same period of the previous fiscal year in major regions such as Europe and North America, while worldwide demand increased from the previous fiscal year mainly due to a significant recovery in China. Mining companies continue to restrain their capital investment, and the demand from small and medium-sized mining companies decreased in particular.

Consequently, in the consolidated fiscal year under review, revenue was ¥734,207 million (a decrease of 12.7% year-on-year), reflecting the impact of lockdowns in various countries, a decrease in new machinery sales and parts and service, and the impact of yen appreciation, despite an increase in rentals and used machinery. Adjusted operating income was ¥25,798 million (a decrease of 62.4% year-on-year), mainly due to a decrease in revenue and the impact of yen appreciation.

2. Solution business

This segment consists primarily of Bradken Pty Limited and its subsidiaries, which are engaged in the parts service business in the after-sales of mining facilities and machinery, and H-E Parts International LLC and its subsidiaries, which provide service solutions.

Revenue for the fiscal under review was ¥82,437 million (a decrease of 10.4% year-on-year) due to a decline in demand.

Adjusted operating income was ¥6,912 million (a decrease of 14.6% year-on-year), due to the decrease in revenue.

The above revenues of segment 1 and 2 are figures before intersegment adjustments.

(English translation of "KESSAN TANSHIN" originally issued in the Japanese language.)

2

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HCM - Hitachi Construction Machinery Co. Ltd. published this content on 27 April 2021 and is solely responsible for the information contained therein. Distributed by Public, unedited and unaltered, on 27 April 2021 06:38:03 UTC.