Quarterly Financial Results for 3rd Quarter, Ended December 31, 2019 (Japanese GAAP, Consolidated)
Name of Listed Company: Kaneka Corporation | February 12, 2020 | |
Stock Exchange Listings: Tokyo, Nagoya | ||
Code Number: | 4118 | URL http://www.kaneka.co.jp |
Representative: Mamoru Kadokura Title: President, Representative Director
Contact Person: Osamu Ishida Title: Officer - Investor & Public Relations Department Phone: +81-3-5574-8090
Scheduled date for submitting financial statements: February 13, 2020 Scheduled date of dividend distribution: -
Note: Figures have been rounded down to the nearest million yen.
1. Consolidated Business Performance for 3rd Quarter, Ended December 31, 2019 (from April 1, 2019 to December 31, 2019)
(1) Consolidated business performance (cumulative) | (% indicates year-on-year change) | ||||||||
Net sales | Operating income | Ordinary income | Net income attributable | ||||||
to owners of parent | |||||||||
¥ million | % | ¥ million | % | ¥ million | % | ¥ million | % | ||
Apr. 2019 - Dec. 2019 | 452,467 | (3.2) | 18,891 | (29.0) | 15,139 | (34.0) | 9,232 | (37.1) | |
Apr. 2018 - Dec. 2018 | 467,615 | 4.9 | 26,619 | 1.0 | 22,937 | (5.6) | 14,681 | (6.7) |
Note: Comprehensive income: ¥10,264 million (-13.3%) for the nine months ended December 31, 2019 ¥11,837 million (-60.0%) for the nine months ended December 31, 2018
Net income | Fully diluted net | |
per share | income per share | |
Apr. 2019 - Dec. 2019 | ¥ | ¥ |
141.55 | 141.28 | |
Apr. 2018 - Dec. 2018 | 223.90 | 223.54 |
Note: The Company conducted a consolidation of shares of common stock at the ratio of five shares to one share on October 1, 2018. However, net income per share and fully diluted net income per share have been calculated as though the share consolidation took place on April 1, 2018.
(2) Consolidated financial position
Total assets | Net assets | Shareholders' | |
equity ratio | |||
¥ million | ¥ million | % | |
As of December 31, 2019 | 665,580 | 360,432 | 50.8 |
As of March 31, 2019 | 659,587 | 360,726 | 51.1 |
(Reference) Shareholders' equity: ¥337,903 million as of December 31, 2019 ¥336,992 million as of March 31, 2019
2. Dividends
Annual dividends | |||||
1st Quarter | 2nd Quarter | 3rd Quarter | Year-end | Annual | |
¥ | ¥ | ¥ | ¥ | ¥ | |
Apr. 2018 - Mar. 2019 | - | 9.00 | - | 55.00 | - |
Apr. 2019 - Mar. 2020 | - | 50.00 | - | ||
Apr. 2019 - Mar. 2020 | 50.00 | 100.00 | |||
(Forecasts) | |||||
Note: Changes in dividend forecast during the quarter under review: No
The Company conducted a consolidation of shares of common stock at the ratio of five shares to one share on October 1, 2018. The 2nd Quarter dividend per share for the fiscal year ended March 31, 2019 shows the amount before the consolidation of shares and the annual dividend per share is shown as "-."
3. Forecast for Consolidated Business Performance for the Year Ending March 31, 2020 (from April 1, 2019 to March 31, 2020)
(Percentage figures represent changes from the corresponding periods of the previous fiscal year)
Net sales | Operating | Ordinary income | Net income | Net income | ||
attributable to | ||||||
income | per share | |||||
owners of parent | ||||||
¥ million | % ¥ million | % ¥ million | % ¥ million | % ¥ | ||
Full year | 610,000 (1.8) 28,000 (22.3) | 22,500 | (28.0) | 15,500 | (30.3) | 237.64 |
Note: Revisions to consolidated business performance forecasts during the quarter under review: Yes
4. Other
- Changes in principal subsidiaries during the term: No
- Application of simplified methods of accounting and specific accounting methods: No
- Changes in accounting principles, changes in estimates, or restatements
- Changes owing to revisions in accounting standards: Yes
- Changes other than 1. above: No
- Changes in accounting estimates: No
- Restatements: No
Note: For details, please refer to the section entitled "(3) Notes to the Consolidated Financial Statements (Changes in Accounting Principles)" under "2. Quarterly Consolidated Financial Statements" on page 10.
(4) Number of shares outstanding (common stock)
1. Number of shares issued at the end of the period | December 31, | 68,000,000 | March 31, 2019 | 68,000,000 |
(including treasury stock): | 2019 | shares | shares | |
2. Number of shares of treasury stock at the end of the | December 31, | 2,774,012 | March 31, 2019 | 2,778,423 |
period: | 2019 | shares | shares | |
3. Average number of shares during the period (calculated | December 31, | 65,224,272 | December 31, | 65,573,247 |
cumulatively from the beginning of the fiscal year) | 2019 | shares | 2018 | shares |
Note: The Company conducted a consolidation of shares of common stock at the ratio of five shares to one share on October 1, 2018. However, the number of shares issued at the end of the period, the number of shares of treasury stock at the end of the period, and the average number of shares during the period have all been calculated as though the share consolidation took place on April 1, 2018.
(These financial statements are exempt from audit procedures)
(Explanations or other items pertaining to appropriate use of business performance forecasts)
The business performance forecasts and certain other statements contained in this document are forward-looking statements, which are rationally determined based on information currently available to the Company. For a variety of reasons, actual performance may differ substantially from these forecasts. They do not constitute a guarantee that the Company will achieve these forecasts or other forward-looking statements. For cautionary items used in business performance forecasts, please refer to the section entitled "(3) Consolidated Business Forecasts" under "1. Quarterly Consolidated Business Performance" on page 5.
Quarterly Financial Results for 3rd Quarter, Ended December 31, 2019, Kaneka Corporation (4118)
Supplementary Materials
Contents
1. Quarterly Consolidated Business Performance ------------------------------------------------------ | P. 2 | |
(1) | Consolidated Business Performance -------------------------------------------------------------- | P. 2 |
(2) | Consolidated Financial Position ---------------------------------------------------------------------- | P. 4 |
(3) | Consolidated Business Forecasts ------------------------------------------------------------------ | P. 5 |
2. Quarterly Consolidated Financial Statements ------------------------------------------------------- | P. 6 | |
(1) | Quarterly Consolidated Balance Sheets ---------------------------------------------------------- | P. 6 |
(2) | Quarterly Consolidated Statements of Income and Comprehensive Income ------------ | P. 8 |
(3) | Notes to the Consolidated Financial Statements ----------------------------------------------- | P. 10 |
(Notes on the Premise of a Going Concern) ----------------------------------------------------- | P. 10 | |
(Notes in the Event of Significant Changes in the Amount of Shareholders' Equity) | --- P. 10 | |
(Changes in Accounting Principles) ---------------------------------------------------------------- | P. 10 | |
(Segment Information) -------------------------------------------------------------------------------- | P. 10 |
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Quarterly Financial Results for 3rd Quarter, Ended December 31, 2019, Kaneka Corporation (4118)
1. Quarterly Consolidated Business Performance
- Consolidated Business Performance
The global economy is entering the age of the networked society, where economic activity is connected on a global scale. From this perspective, during the three months from October to December 2019 (the "3rd quarter"), the intensified U.S.-China trade friction became a major cause of economic deceleration as its impact spread out to technologically interconnected global supply chains. A loss of momentum in economic conditions for the 3rd quarter was also due to the U.K.'s exit from the E.U., and heightened geopolitical risks such as tensions between the U.S. and Iran.
Entering the 4th quarter, the economic recovery gradually found firmer footing, as U.S.-China trade friction eases, the effects of the U.K.'s exit from the E.U. fade, and the situation in the Middle East settles, as well as expectations of political stabilization in the U.S. However, the outbreak of novel coronavirus in January has seen concern over the risk of a downturn spreading to an unexpected degree. The situation could have a grave impact on the global economy.
The Kaneka Group's business performance has seen decreases in sales and profit, centered on the Material Solutions Unit, due to the impacts of weak demand in Asia and Europe and sluggish conditions in the automotive and electronics industries. The slowdown in the economies of overseas markets where the Company has been focusing its efforts was a major factor in these results. In this business environment, the Kaneka Group's business performance for the first nine months under review (April 1, 2019 to December 31, 2019) was as follows. Consolidated net sales amounted to ¥452,467 million (down 3.2% year on year), and operating income was ¥18,891 million (down 29.0% year on year). Ordinary income was ¥15,139 million (down 34.0% year on year). Net income attributable to owners of parent was ¥9,232 million (down 37.1% year on year).
Operating performance by business segment was as follows:
1) Material Solutions Unit
In the Vinyls and Chlor-Alkali business, market conditions for caustic soda remain sluggish, as the slowdown in the Chinese economy is still exerting a strong influence. Meanwhile, sales of PVC resins and specialty PVC resins increased since overseas demand remained firm, notably in India despite lackluster market conditions in Japan. The Vinyls and Chlor-Alkali Solutions Vehicle recovered to the same level as the previous fiscal year in the 3rd quarter, and is expected to recover further in the 4th quarter. However, with the impact of the global economic deceleration throughout the year, the Solutions Vehicle has yet to make a full recovery.
In the Performance Polymers business, modifiers have been strongly affected by declining demand and trading volume in Japan and overseas due to the U.S.-China trade friction. The Performance Polymers (MOD) Solutions Vehicle is working to create a new high-value-added market through development of new, large-scale products and investment. At the vanguard of business structural change is the advanced development of epoxy masterbatch. The special properties of epoxy masterbatch technology, which meets cutting edge market needs such as structural adhesive for automobiles and electronics applications, have been highly rated and sales are increasing sharply. To meet vigorous demand which outstrips the capacity of our plants, the Group has been working to increase production through debottlenecking measures, and aiming to complete construction of additional capacity that will double it, with the aim of starting operations in July 2020.
In modified silicone polymers, sales trended firmly in Europe, where enhanced production capacity in Belgium contributed immensely to earnings. The Performance Polymers (MS) Solutions Vehicle is a unique product that has strong potential for technological differentiation, and the Group is working steadily to develop the Asian market as a new frontier. Notably, new production lines in the Malaysian plant that opened in 2018 are pushing up earnings.
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Quarterly Financial Results for 3rd Quarter, Ended December 31, 2019, Kaneka Corporation (4118)
Kaneka Biodegradable Polymer PHBH has been featured as a solution to the issue of microplastics by international bodies such as the G20 and in the media, including CNN. This has led to a flood of inquiries from global corporations with a high interest in environmental issues. As an innovative material that has the potential to change social systems, PHBH is being increasingly adopted for use in a wide range of applications, such as straws, shopping bags, and packaging materials for customers including cosmetics manufacturers and convenience stores such as Seven-Eleven Japan Co., Ltd. Meanwhile, a large number of new projects have started overseas with major brand holders. Sales inquiries have vastly exceeded the capacity of the 5,000-ton plant that was completed in December 2019, and the Group has commenced preparations for the construction of a full-scale mass production plant with a capacity of 20,000 tons.
2) Quality of Life Solutions Unit
In the Performance Fibers business, the African market has expanded considerably, and the Group has made headway on developing new sources of demand in advanced countries as well, which has been driving earnings in this segment. To meet surging demand, the Group will bolster production through debottlenecking measures, while examining options for expanding facilities at the Takasago Plant, where production capacity can be ramped up the fastest.
In the Foam & Residential Techs business, earnings from expandable polystyrene resin and extruded polystyrene foam board increased as the launch of new products such as thin high thermal insulation coupled with expanded demand. The Group is taking steps to reinforce the business platform with a view to increasing profitability, such as reorganizing sites to improve distribution efficiency. In polyolefin foam, global demand increases amid a rise in needs for energy saving, weight reduction, and safety in the automotive and mobility fields. The Group will accelerate the strengthening of its business platform, such as strengthening production capacity in Thailand and Belgium and introducing new processes.
In the PV & Energy management business, discussions have begun about making renewable energy, particularly solar power systems, the main power source in Japan's energy policy amid concerns over global warming. As a result, sales of these products have been growing steadily, primarily to major homebuilders. The Group and Taisei Corporation have jointly developed innovative construction methods with multifunctionality and design properties enabling exterior walls and windows to generate electricity, and highly efficient, see-through photovoltaic cells using this technology have been adopted for the New National Stadium Japan. The Group is working without delay to build a framework to boost production in response to growing demand for these new products, which are net zero energy management system materials for houses and buildings.
In the E & I Technology business, polyimide films and graphite sheets were strongly affected by a slowdown in the smartphone market. The E & I Technology Solutions Vehicle is working with end digital device manufacturers on joint development of materials that cannot be imitated by other companies, such as CMOS sensor materials used for supporting autonomous driving systems in automobiles. The Group will strengthen R&D activities for unique new products that will support digital transformation, such as organic electroluminescent displays and 5G smartphones, for which demand is expected to grow going forward.
-3-
Quarterly Financial Results for 3rd Quarter, Ended December 31, 2019, Kaneka Corporation (4118)
3) Health Care Solutions Unit
In the Medical Devices business, sales of new products such as high -functionality catheters are increasing in the Japanese and overseas markets. The Group is looking to increase the capacity of its Vietnam plant to meet surging demand. The embolization coil that was launched in Japan in November has seen steady sales growth, and is also scheduled for launch in the U.S. Going forward, the Group aims to aggressively expand its business in new therapeutic fields such as drug-coated balloon catheters, electrode catheters, and fractional flow reserve products. To achieve rapid expansion of the Medical Devices Solutions Vehicle, the Group will actively seek capital and business alliances with U.S. and European medical equipment companies.
In the Pharma business, a large shipment of small molecule pharmaceuticals was shifted to the 4th quarter, which had a major impact on the 3rd quarter operating results of the Health Care Solutions Unit. Sales of active pharmaceutical ingredients used in generic pharmaceutical products and biopharmaceuticals are expanding steadily. Increased production capacity at Osaka Synthetic Chemical Laboratories, Inc. will begin to contribute to earnings going forward. Construction to bolster production capacity at Kaneka Eurogentec S.A. is now complete, and preparations for full- scale operations are proceeding swiftly.
4) Nutrition Solutions Unit
In the Foods & Agris business, the Group conducted proactive proposal-based sales to major suppliers of bakery products, convenience stores, and food manufacturers. These activities drove expanded sales, leading to earnings growth. In addition, as tastes continue to diversify, the Company's spice market is growing and the products of Kaneka Sun Spice Corporation have enjoyed adoption in an increasing number of products, contributing to earnings growth. In Indonesia, where the tasty bread and confectionery culture of Japan is entering a period of booming expansion, the Group's new factory is on schedule to start operations in May 2020, which will expand earnings. The Group has garnered a positive reception in the market for its "Milk for bread lovers," "Café au lait for bread lovers" and "Belgian Yogurt Pur Natur," products, and will use their momentum to quickly start a new dairy product business. The Group will move quickly to consider construction of a new dairy product plant, and aims to partner with dairy farmers to develop recycling-oriented dairy farming.
In the Supplemental Nutrition business, amid growing public awareness around health, the Group made AB-Biotics, S.A., of Spain a wholly owned subsidiary as a step towards creating a new, Kaneka-style supplement business model centered on its branded reduced form of coenzyme Q10. AB-Biotics' lactic acid supplements are regarded highly for their unique properties, and their global sales are increasing. Going forward, the Group will cooperate with the food business and carefully distribute scientific information about the effects of the supplements, aiming to diversify its supplement products. The Group will quickly establish production of lactic acid in the U.S. and rapidly set up sales in the U.S. and Japan.
(2) Consolidated Financial Position
1) Status of Assets, Liabilities and Equity
Total assets were ¥665,580 million as of December 31, 2019, up ¥5,992 million compared with March 31, 2019, due to an increase in property, plant and equipment. Liabilities totaled ¥305,148 million, up ¥6,286 million due to an increase in notes and accounts payable-trade and loans payable. Net assets were ¥360,432 million, down ¥294 million due to a decrease in foreign currency translation adjustment.
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Quarterly Financial Results for 3rd Quarter, Ended December 31, 2019, Kaneka Corporation (4118)
(3) Consolidated Business Forecasts
During the 3rd quarter, geopolitical risks and the slowdown of economic momentum started by the U.S.-China trade friction expanded on the global scale. Globally interconnected corporate activities have also suffered an inevitable significant setback from these impacts.
The Company's earnings were expected to improve in the 3rd quarter, after reaching a bottom in the 2nd quarter. Regrettably, however, the recovery has been subdued at a lower level than planned. For the 4th quarter, encouraging signs of economic recovery have emerged with a background of progress in dialogue between the U.S. and Chinese government and subsidence of geopolitical risks. However, the coronavirus issue has expanded with unexpected speed and scale. It is having a grave impact on the recovery of the global economy and business momentum. While there are clear signs of increasing momentum in earnings recovery in each business unit for the 4th quarter after bottoming out in the 2nd quarter, a sense of uncertainty in business sentiment and recognition of the uncertain business environment are growing day by day. Under these conditions, the Company has factored in a certain level of risk of a downturn due to the impact of the coronavirus, and in so doing has revised its earnings forecast downward.
Although the recovery of momentum in the 3rd quarter occurred after the revision of earnings forecasts on November 12, in the 4th quarter business conditions are on a clear track to recovery, barring the corona virus issue. The Solutions Vehicles excluding Foam & Residential Techs and Foods & Agris, which experience seasonal drops in earnings, and Performance Fibers, where the Takasago Plant is undergoing regular maintenance, are showing clear signs of momentum recovery. The Group now expects to see a significant recovery trend in overseas markets for the Material Solutions Unit, a recovery in the smartphone market for the E & I Technology Solutions Vehicle, improvements in the Medical Devices and Pharma & Supplemental Nutrition Solutions Vehicles, which continue to see stable market expansion, and an increase in earnings with progress in structural reforms of the PV & Energy management Solutions Vehicle. The Group will continue making every effort to change its portfolio to increase profitability. While the corona virus issue has been partially factored into the Group's forecast, it is not yet at a level where all of the downside risk to earnings can be projected.
With regard to exchange rates and raw material prices for the 4th quarter, the forecast figures assume an exchange rate of ¥109 to the U.S. dollar, ¥121 to the euro and a domestic naphtha price of ¥44,000 per kiloliter.
Revisions to forecast for consolidated business performance in the term ending March 31, 2020 (from April 1, 2019 to March 31, 2020)
Operating | Ordinary | Net income | |||
Net sales | attributable to | Net income | |||
income | income | owners of | per share | ||
parent | |||||
¥ million | ¥ million | ¥ million | ¥ million | ¥ | |
Previous forecast (A) | 625,000 | 32,000 | 26,000 | 18,000 | 275.98 |
Current forecast (B) | 610,000 | 28,000 | 22,500 | 15,500 | 237.64 |
Change (B-A) | (15,000) | (4,000) | (3,500) | (2,500) | |
Percentage change (%) | (2.4%) | (12.5%) | (13.5%) | (13.9%) | |
(Reference: | 621,043 | 36,041 | 31,268 | 22,238 | 339.15 |
Year ended March 31, 2019) | |||||
Note: The above performance forecasts are regarded as reasonable on the basis of information available at the time of announcement. Readers should therefore be aware that actual results may vary from these forecasts due to various uncertainties.
-5-
Quarterly Financial Results for 3rd Quarter, Ended December 31, 2019, Kaneka Corporation (4118)
2. Quarterly Consolidated Financial Statements
(1) Quarterly Consolidated Balance Sheets
(Millions of yen) | |||
FY2018 | FY2019 3rd Quarter | ||
Term ended | Term ended | ||
March 31, 2019 | December 31, 2019 | ||
Assets | |||
Current assets | |||
Cash and deposits | 40,905 | 34,769 | |
Notes and accounts receivable-trade | 147,993 | 142,825 | |
Short-term investment securities | 232 | 109 | |
Merchandise and finished goods | 61,609 | 66,483 | |
Work in process | 9,365 | 9,550 | |
Raw materials and supplies | 41,459 | 42,597 | |
Other | 13,918 | 18,881 | |
Allowance for doubtful accounts | (1,237) | (1,254) | |
Total current assets | 314,245 | 313,962 | |
Noncurrent assets | |||
Property, plant and equipment | |||
Buildings and structures, net | 79,815 | 84,357 | |
Machinery, equipment and vehicles, net | 106,395 | 109,951 | |
Other, net | 65,710 | 68,516 | |
Total property, plant and equipment | 251,922 | 262,825 | |
Intangible assets | |||
Goodwill | 3,981 | 3,508 | |
Other | 9,443 | 9,974 | |
Total intangible assets | 13,424 | 13,483 | |
Investments and other assets | |||
Investment securities | 61,273 | 58,715 | |
Other | 18,982 | 16,839 | |
Allowance for doubtful accounts | (260) | (245) | |
Total investments and other assets | 79,994 | 75,308 | |
Total noncurrent assets | 345,342 | 351,617 | |
Total assets | 659,587 | 665,580 | |
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Quarterly Financial Results for 3rd Quarter, Ended December 31, 2019, Kaneka Corporation (4118)
(Millions of yen) | |||
FY2018 | FY2019 3rd Quarter | ||
Term ended | Term ended | ||
March 31, 2019 | December 31, 2019 | ||
Liabilities | |||
Current liabilities | |||
Notes and accounts payable-trade | 84,797 | 86,725 | |
Short-term loans payable | 67,668 | 79,126 | |
Current portion of bonds | 10,000 | - | |
Income taxes payable | 2,864 | 1,751 | |
Provision | 128 | 8 | |
Other | 48,453 | 47,468 | |
Total current liabilities | 213,912 | 215,079 | |
Noncurrent liabilities | |||
Bonds payable | - | 10,000 | |
Long-term loans payable | 45,122 | 39,162 | |
Provision | 266 | 268 | |
Net defined benefit liability | 34,985 | 34,662 | |
Other | 4,574 | 5,973 | |
Total noncurrent liabilities | 84,948 | 90,068 | |
Total liabilities | 298,861 | 305,148 | |
Net assets | |||
Shareholders' equity | |||
Capital stock | 33,046 | 33,046 | |
Capital surplus | 32,784 | 31,074 | |
Retained earnings | 272,944 | 275,494 | |
Treasury stock | (11,601) | (11,583) | |
Total shareholders' equity | 327,173 | 328,033 | |
Accumulated other comprehensive income | |||
Valuation difference on available-for-sale securities | 19,642 | 20,915 | |
Deferred gains or losses on hedges | (110) | (105) | |
Foreign currency translation adjustment | (4,008) | (5,830) | |
Remeasurements of defined benefit plans | (5,705) | (5,110) | |
Total accumulated other comprehensive income | 9,818 | 9,870 | |
Subscription rights to shares | 431 | 478 | |
Noncontrolling interests | 23,302 | 22,050 | |
Total net assets | 360,726 | 360,432 | |
Total liabilities and net assets | 659,587 | 665,580 | |
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Quarterly Financial Results for 3rd Quarter, Ended December 31, 2019, Kaneka Corporation (4118)
(2) Quarterly Consolidated Statements of Income and Comprehensive Income | ||
Quarterly Consolidated Statements of Income | (Millions of yen) | |
FY2018 3rd Quarter | FY2019 3rd Quarter | |
From April 1, 2018 | From April 1, 2019 | |
to December 31, 2018 | to December 31, 2019 | |
Net sales | 467,615 | 452,467 |
Cost of sales | 337,368 | 326,724 |
Gross profit | 130,246 | 125,743 |
Selling, general and administrative expenses | 103,626 | 106,851 |
Operating income | 26,619 | 18,891 |
Non-operating income | ||
Dividends income | 1,490 | 1,483 |
Gain on sales of investment securities | 119 | 400 |
Equity in earnings of affiliates | - | 117 |
Gain on sales of noncurrent assets | 427 | 315 |
Other | 796 | 475 |
Total non-operating income | 2,834 | 2,793 |
Non-operating expenses | ||
Interest expenses | 1,542 | 1,317 |
Loss on retirement of noncurrent assets | 2,058 | 1,379 |
Foreign exchange losses | 366 | 650 |
Loss on earnings of affiliates | 30 | - |
Other | 2,518 | 3,198 |
Total non-operating expenses | 6,516 | 6,545 |
Ordinary income | 22,937 | 15,139 |
Extraordinary losses | ||
Patent protection court cost | 1,285 | 864 |
Total extraordinary losses | 1,285 | 864 |
Income before income taxes | 21,652 | 14,275 |
Income taxes-current | 4,479 | 3,257 |
Income taxes-deferred | 1,202 | 718 |
Total income taxes | 5,682 | 3,976 |
Net income | 15,970 | 10,299 |
Net income attributable to noncontrolling interests | 1,288 | 1,066 |
Net income attributable to owners of parent | 14,681 | 9,232 |
-8-
Quarterly Financial Results for 3rd Quarter, Ended December 31, 2019, Kaneka Corporation (4118)
Quarterly Consolidated Statements of Comprehensive Income
(Millions of yen) | |
FY2018 3rd Quarter | FY2019 3rd Quarter |
From April 1, 2018 | From April 1, 2019 |
to December 31, 2018 | to December 31, 2019 |
Net income
Other comprehensive income
Valuation difference on available-for-sale securities
Deferred gains or losses on hedges
Foreign currency translation adjustment Remeasurements of defined benefit plans, net of tax
Share of other comprehensive income of associates accounted for using equity method
Total other comprehensive income
Comprehensive income
Comprehensive income attributable to
Comprehensive income attributable to owners of parent Comprehensive income attributable to noncontrolling interests
15,970 | 10,299 |
(4,732) | 1,292 |
(15) | 5 |
(389) | (1,932) |
1,010 | 598 |
(6) | 1 |
(4,133) | (35) |
11,837 | 10,264 |
10,729 | 9,284 |
1,107 | 979 |
-9-
Quarterly Financial Results for 3rd Quarter, Ended December 31, 2019, Kaneka Corporation (4118)
-
Notes to the Consolidated Financial Statements (Notes on the Premise of a Going Concern) Not applicable
(Notes in the Event of Significant Changes in the Amount of Shareholders' Equity) Not applicable
(Changes in Accounting Principles)
At the Group's subsidiaries adopting IFRS, IFRS 16 Leases (hereinafter, "IFRS 16") has been applied from the three months ended June 30, 2019. Accordingly, lessees will, in principle, recognize all leases as assets and liabilities on the balance sheets. In applying IFRS 16, the Group has applied the method where the cumulative effect of applying this standard is recognized at the date of initial application in accordance with the transitional treatment of the standard. As a result, the ending balances of "Property, plant and equipment," "Other" under current liabilities and "Other" under noncurrent liabilities in the nine months ended December 31, 2019 increased by ¥2,283 million, ¥282 million and ¥2,101 million, respectively. The application of IFRS 16 had a negligible impact on earnings for the nine months ended December 31, 2019.
(Segment Information)
Ⅰ Term from April 1, 2018 to December 31, 2018 1) Sales and Income (Loss) by Segments
(Millions of yen) | |||||||||
Segment information | Figures in consolidated | ||||||||
Others | |||||||||
Material | Quality of | Health Care | Nutrition | Total | Adjustment | financial statements | |||
(Note 1) | |||||||||
Life | Total | (Note 2) | |||||||
Solutions | Solutions | Solutions | Solutions | ||||||
Unit | Unit | Unit | |||||||
Unit | |||||||||
Sales | |||||||||
Customers | 191,126 | 119,632 | 35,093 | 120,954 | 466,806 | 809 | 467,615 | ― | 467,615 |
Intersegment | 944 | 17 | ― | 25 | 987 | 814 | 1,801 | (1,801) | ― |
Total | 192,070 | 119,649 | 35,093 | 120,979 | 467,793 | 1,623 | 469,417 | (1,801) | 467,615 |
Segment profit | 19,623 | 11,804 | 7,352 | 4,077 | 42,857 | 371 | 43,229 | (16,609) | 26,619 |
Notes: 1. "Others" is a business segment that is not included in the reporting segments and includes property insurance and life insurance business.
2. Segment profit is reconciled with operating income in the quarterly consolidated financial statements.
- Reconciliations between Segment Total and Quarterly Consolidated Statements of Income (Adjustments)
(Millions of yen) | |
Income | Amount |
Segment total | 42,857 |
Segment profit of Others | 371 |
Elimination of intersegment transactions | 12 |
Companywide expenses (Note) | (16,677) |
Other adjustments | 54 |
Operating income in the quarterly consolidated | 26,619 |
statements of income | |
Note: Companywide expenses primarily are expenses for basic R&D that are not allocable to any reporting segment.
―10―
Quarterly Financial Results for 3rd Quarter, Ended December 31, 2019, Kaneka Corporation (4118)
ⅡTerm from April 1, 2019 to December 31, 2019 1) Sales and Income (Loss) by Segments
(Millions of yen)
Segment information | Figures in | ||||||||
Others | consolidated | ||||||||
Total | Adjustment | financial | |||||||
Material | Quality of Life | Health Care | Nutrition | Total | (Note 1) | ||||
Solutions | Solutions | Solutions | Solutions | statements | |||||
Unit | Unit | Unit | Unit | (Note 2) | |||||
Sales | |||||||||
Customers | 180,661 | 118,652 | 33,251 | 119,096 | 451,662 | 805 | 452,467 | ― | 452,467 |
Intersegment | 773 | 15 | ― | 31 | 820 | 822 | 1,643 | (1,643) | ― |
Total | 181,435 | 118,667 | 33,251 | 119,128 | 452,482 | 1,628 | 454,111 | (1,643) | 452,467 |
Segment profit | 14,669 | 11,363 | 6,048 | 3,976 | 36,056 | 394 | 36,451 | (17,559) | 18,891 |
Notes: 1. "Others" is a business segment that is not included in the reporting segments and includes property insurance and life insurance business.
2. Segment profit is reconciled with operating income in the quarterly consolidated financial statements.
- Reconciliations between Segment Total and Quarterly Consolidated Statements of Income (Adjustments)
(Millions of yen) | |
Income | Amount |
Segment total | 36,056 |
Segment profit of Others | 394 |
Elimination of intersegment transactions | (0) |
Companywide expenses (Note) | (17,569) |
Other adjustments | 10 |
Operating income in the quarterly consolidated | 18,891 |
statements of income | |
Note: Companywide expenses primarily are expenses for basic R&D that are not allocable to any reporting segment.
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Kaneka Corporation published this content on 13 February 2020 and is solely responsible for the information contained therein. Distributed by Public, unedited and unaltered, on 13 February 2020 05:55:02 UTC