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    4452   JP3205800000

KAO CORPORATION

(4452)
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Kao : Consolidated Financial Results for the Three Months Ended March 31, 2021

05/07/2021 | 04:51am EDT

Consolidated Financial Results for the Three Months Ended March 31, 2021 [IFRS]

May 7, 2021

Company name:

Kao Corporation

Tokyo Stock Exchange in Japan

Stock code:

4452

(URL: www.kao.com/global/en/investor-relations/library/results/)

Representative:

Yoshihiro Hasebe, President and CEO

Contact person:

Mitsuhiro Watanabe, Vice President, Investor Relations

E-mail: ir@kao.co.jp

Scheduled starting date of the dividend payments: -

Supplementary documents of the financial results: Yes

Financial results information meeting: Yes (for institutional investors and analysts)

(Millions of yen, except per share amounts) (Amounts less than one million yen are rounded)

1. Consolidated financial results for the three months ended March 31, 2021 (from January 1, 2021 to March 31, 2021)

(1)

Consolidated operating results

(Percentages indicate year-on-year changes)

Three months ended

Three months ended

March 31, 2021

%

March 31, 2020

%

Net sales

320,558

(5.1)

337,767

(2.6)

Operating income

30,937

(21.2)

39,279

2.8

Income before income taxes

33,901

(9.1)

37,277

(3.4)

Net income

26,228

(3.4)

27,159

0.6

Net income attributable to owners of the parent

25,719

(3.5)

26,665

0.9

Comprehensive income

50,480

263.0

13,908

(54.6)

Basic earnings per share (Yen)

53.61

55.45

Diluted earnings per share (Yen)

53.60

55.44

(2)

Consolidated financial position

March 31, 2021

December 31, 2020

Total assets

1,604,621

1,665,616

Total equity

924,137

938,194

Equity attributable to owners of the parent

908,792

923,687

Ratio of equity attributable to owners

of the parent to total assets

56.6%

55.5%

Equity attributable to owners of the

parent per share (Yen)

1,906.19

1,920.56

2.

Dividends

Year ending

Year ending

Year ended

December 31, 2021

December 31, 2021

December 31, 2020

(Forecast)

Annual cash dividends per share (Yen)

1st quarter end

-

-

2nd quarter end

72.00

70.00

3rd quarter end

-

-

Fiscal year end

72.00

70.00

Total

144.00

140.00

Note: Revisions to the cash dividends forecast most recently announced: None

Notice regarding execution of quarterly review procedures
This quarterly financial results report is exempt from quarterly review by certified public accountants or accounting firms.
Explanation regarding the appropriate use of forecast of operating results and other special items
Forward-lookingstatements such as earnings forecasts and other projections contained in this release are based on information available at the time of disclosure and assumptions that management believes to be reasonable, and do not constitute guarantees of future performance. Actual results may differ materially from expectations due to various factors.
Please refer to page 7, "Qualitative Information on Financial Results for the Three Months Ended March 31, 2021 - 2. Description of Information on Outlook, Including Forecasts of Consolidated Results" for the suppositions that form the assumptions for earnings forecasts and cautions concerning the use of earnings forecasts.

Three Months Ended March 31, 2021

3. Forecast of consolidated operating results for the year ending December 31, 2021 (from January 1, 2021 to December 31, 2021)

(Millions of yen, except per share amounts)

(Percentages indicate year-on-year changes)

Year ending

December 31, 2021

%

Net sales

1,430,000

3.5

Operating income

177,000

0.8

Income before income taxes

177,000

1.7

Net income attributable to owners of the parent

127,000

0.7

Basic earnings per share (Yen)

267.02

-

Note: Revisions to the consolidated operating results forecast most recently announced: None

4.

Others

(1)

Changes in significant subsidiaries during the period (changes in specified subsidiaries resulting in change in scope of

consolidation): None

(2)

Changes in accounting policies and changes in accounting estimates

1) Changes in accounting principles required by IFRS: None

2) Changes in accounting principles due to reasons other than 1): None

3) Changes in accounting estimates: None

(3)

Number of issued shares outstanding at the end of this period (ordinary shares)

March 31, 2021

December 31, 2020

Number of issued shares including treasury shares

482,000,000

482,000,000

Number of treasury shares

5,242,913

1,054,019

Three months ended

Three months ended

March 31, 2021

March 31, 2020

Weighted average number of shares outstanding

479,743,737

480,914,148

during this period

Three Months Ended March 31, 2021

Qualitative Information on Financial Results for the Three Months Ended March 31, 2021

Note: Like-for-like growth rates below exclude the effect of translation of local currencies into Japanese yen.

1. Description of Operating Results

(Billions of yen, except operating margin and per share amounts)

Three months ended March 31

2021

2020

Growth

Net sales

320.6

337.8

(5.1%)

Like-for-like: (5.7%)

Operating income

30.9

39.3

(21.2%)

Operating margin (%)

9.7

11.6

-

Income before income taxes

33.9

37.3

(9.1%)

Net income

26.2

27.2

(3.4%)

Net income attributable to owners of the parent

25.7

26.7

(3.5%)

Basic earnings per share (Yen)

53.61

55.45

(3.3%)

The novel coronavirus (COVID-19) pandemic continued to have a major impact on social and economic activities and the lives of people around the world. Expectations for vaccines are growing, but conditions in the global economy remained unclear, with delays in the recovery of consumption due to border controls, restrictions on going outside, mandated temporary store closures and other factors in each country and region as the number of new infections repeatedly rises and falls.

According to retail sales and consumer purchasing survey data, the consumer products (cosmetics and household and personal care products) market in Japan, which is the Kao Group's key market, shrank year-on-year during the period from January to March 2021, reflecting the absence of the increase in demand, mainly for hygiene-related products, that occurred in the same period a year earlier when the pandemic began in Japan. Average unit prices for household and personal care products increased by 7 points compared with the same period a year earlier due to a shift to larger-volume product sizes.

Amid these circumstances, net sales decreased 5.1% compared with the same period a year earlier to 320.6 billion yen. On a like-for-like basis, net sales decreased 5.7%. Operating income was 30.9 billion yen, a decrease of 8.3 billion yen compared with the same period a year earlier, and income before income taxes was 33.9 billion yen, a decrease of 3.4 billion yen. Net income was 26.2 billion yen, a decrease of 0.9 billion yen.

1

Three Months Ended March 31, 2021

The main exchange rates used for translating the financial statement items (income and expenses) of foreign consolidated subsidiaries and associates were as shown below.

First quarter

Jan. - Mar.

U.S. dollar

105.96 (108.95)

Euro

127.74 (120.18)

Chinese yuan

16.35 (15.61)

Note: Figures in parentheses represent the exchange rates for the same period a year earlier.

Summary of Segment Information

The following is an overview of changes in reportable segments implemented as of the three months ended March 31, 2021 (Reference: Page 14, "1. Segment Information" in "Notes to Condensed Consolidated Financial Statements").

  1. The Hygiene and Living Care Business has been newly established and incorporates sanitary products from the former Human Health Care Business in addition to fabric care products and home care products, which were previously classified in the Fabric and Home Care Business.
  2. The Health and Beauty Care Business has been newly established and incorporates personal health products, which were previously classified in the Human Health Care Business, in addition to skin care products and hair care products, which were previously classified in the Skin Care and Hair Care Business.
  3. The Life Care Business has been newly established and incorporates health drinks, which were previously classified in the Human Health Care Business, in addition to commercial-use hygiene products, which were previously classified in the Fabric and Home Care Business.
  4. Due to the reorganization of segments described in 1 to 3 above, sales and operating income for the same period a year earlier have been restated.

2

Three Months Ended March 31, 2021

Consolidated Results by Segment

(Billions of yen)

Net sales

Operating income

Operating margin (%)

Growth

Like-for-

Three months ended March 31

2021

2020

%

like %

2021

2020

Change

2021

2020

Hygiene and Living Care

112.3

119.6

(6.1)

(6.5)

13.2

17.9

(4.8)

11.7

15.0

Business

Health and Beauty Care

81.5

86.7

(6.0)

(6.3)

11.3

13.4

(2.1)

13.8

15.5

Business

Life Care Business

11.8

11.5

3.0

3.4

0.8

0.3

0.4

6.4

3.0

Cosmetics

51.0

59.1

(13.7)

(14.7)

(3.0)

0.1

(3.1)

(5.9)

0.2

Business

Consumer Products Business

256.6

276.9

(7.3)

(7.8)

22.2

31.8

(9.6)

8.7

11.5

Chemical Business

73.1

69.8

4.7

3.6

8.8

7.8

1.0

12.0

11.1

Total

329.7

346.7

(4.9)

(5.5)

31.0

39.6

(8.6)

-

-

Elimination and Reconciliation

(9.1)

(8.9)

-

-

(0.0)

(0.3)

0.3

-

-

Consolidated

320.6

337.8

(5.1)

(5.7)

30.9

39.3

(8.3)

9.7

11.6

(Remainder of page intentionally left blank.)

3

This is an excerpt of the original content. To continue reading it, access the original document here.

Disclaimer

Kao Corporation published this content on 07 May 2021 and is solely responsible for the information contained therein. Distributed by Public, unedited and unaltered, on 07 May 2021 08:50:06 UTC.


© Publicnow 2021
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Net income 2021 130 B 1 181 M 1 181 M
Net cash 2021 150 B 1 365 M 1 365 M
P/E ratio 2021 25,2x
Yield 2021 2,12%
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EV / Sales 2021 2,17x
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Nbr of Employees 33 409
Free-Float 96,5%
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Income Statement Evolution
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Mean consensus OUTPERFORM
Number of Analysts 15
Average target price 8 100,67 JPY
Last Close Price 6 869,00 JPY
Spread / Highest target 41,2%
Spread / Average Target 17,9%
Spread / Lowest Target -2,46%
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Managers and Directors
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Yoshihiro Hasebe President & Representative Director
Michitaka Sawada Chairman
Hideo Makino Manager-Administration
Sonosuke Kadonaga Independent Outside Director
Osamu Shinobe Independent Outside Director
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