Consolidated Financial Summary (For the First Half Ended September 30, 2017 (IFRS basis))

Transcription

1 Consolidated Financial Summary (For the First Half Ended September 30, 2017 (IFRS basis)) October 25, 2017 Listed company: Hitachi Chemical Co., Ltd. (Code number: 4217 Stock exchange: Tokyo) (URL Representative: Hisashi Maruyama Position of the person: President, Chief Executive Officer and Director Person in charge of the reference: Masahiko Okamura Position of the person: General Manager, Corporate Communication Center Tel: Date of the release of quarterly report (schedule): November 13, 2017 Date of the start of dividend payment: November 30, 2017 Creates supplemental explanatory materials for quarterly financial summaries: Yes (Amounts rounded to the nearest million yen) 1. Consolidated Financial Highlights for the First Half Ended September 30, 2017 (April 1, 2017 through September 30, 2017) (1) Consolidated Financial Results (% indicates the rate of +/- compared with the same term of the previous fiscal year) Revenue Operating income Income before income taxes Net income Net income attributable to owners of the parent Comprehensive income First half ended: Million yen % Million yen % Million yen % Million yen % Million yen % Million yen % Sep. 30, , ,684 (22.5) 21,933 (6.2) 17, ,768 (0.0) 23,376 - Sep. 30, ,220 (6.7) 25, ,382 (1.0) 16,867 (1.2) 16, (99.7) Basic earnings per share Diluted earnings per share First half ended: Yen Yen Sep. 30, Sep. 30, Note: Basic earnings per share is calculated based on net income attributable to owners of the parent. Note: The earnings capacity of the Company's ordinary operations, calculated by deducting the amounts for other income and other expenses from the figure for operating income noted in the consolidated statements of income, was 24,599 million yen in the first half ended September 30, The consolidated result for earnings capacity of the Company's ordinary operations calculated by this method was 29,035 million yen in the first half ended September 30, (2) Consolidated Financial Position Total assets Total equity Total equity attributable to owners of the parent Ratio of equity attributable to owners of the parent to total assets Million yen Million yen Million yen % As of Sep. 30, , , , As of Mar. 31, , , , Dividend Dividend per Share 1st Quarter 2nd Quarter 3rd Quarter Year-End Total Yen Yen Yen Yen Yen March, March, March, 2018 (Forecast) Note: Revision of the latest dividend forecast: None 1

2 3. Consolidated Financial Forecast for the Fiscal Year Ending March 31, 2018 (April 1, 2017 through March 31, 2018) (% indicates the rate of +/- compared with the same term of the previous fiscal year) Revenue Operating income Income before income taxes Net income Net income attributable to owners of the parent Basic earnings per share Million yen % Million yen % Million yen % Million yen % Million yen % Yen Fiscal year 670, ,000 (4.0) 54, , , Note: Revision of the latest consolidated financial forecast: Yes Note: The consolidated forecast for earnings capacity of the Company's ordinary operations, calculated by deducting the amounts for other income and other expenses from the figure for operating income noted in the consolidated statements of income, is 62,000 million yen for the fiscal year ending March 31, * Notes (1) Changes in significant subsidiaries during the term (changes in specified subsidiaries resulting in the change in scope of consolidation): Yes Inclusion: 1 company (Hitachi Chemical Advanced Therapeutics Solutions, LLC) Exclusion: 1 company (Japan Brake (Thailand) Co., Ltd.) (2) Changes of Accounting Policies Applied, Changes in Accounting Estimates (a) Changes of accounting policies required by IFRS: None (b) Changes of accounting policies other than (a): None (c) Changes in accounting estimates: None (3) Number of Shares Issued (Common Stock): (a) Number of shares at the end of the term (Including treasury stock): Sep. 30, 2017: Mar. 31, 2017: 208,364,913 shares 208,364,913 shares (b) Number of treasury stock at the end of the term: Sep. 30, 2017: Mar. 31, 2017: 138,971 shares 136,862 shares (c) Average number of shares during the term: Apr. - Sep. 2017: Apr. - Sep. 2016: 208,227,075 shares 208,231,279 shares *These quarterly financial results are not subject to quarterly review procedures. * Explanation on the appropriate use of financial forecasts and other important items The financial forecasts shown on this report are estimated based on information available as of the issuing date of this report, and therefore the actual results for the future terms may differ from these forecasted figures due to various unknown factors. 2

3 Condensed Quarterly Consolidated Financial Statements (1) Condensed Quarterly Consolidated Statement of Financial Position As of March 31, 2017 As of September 30, 2017 Assets Current assets Cash and cash equivalents 107,649 80,324 Trade receivables 133, ,889 Inventories 65,182 81,082 Other financial assets 21,460 19,100 Other current assets 4,251 5,014 Total current assets 332, ,409 Non-current assets Property, plant and equipment 186, ,468 Intangible assets 27,486 65,735 Net defined benefit assets 10,001 10,307 Deferred tax assets 11,827 14,539 Investments accounted for using the equity method 8,484 8,625 Other financial assets 17,819 18,313 Other non-current assets 6,173 7,574 Total non-current assets 268, ,561 Total assets 600, ,970 3

4 As of March 31, 2017 As of September 30, 2017 Liabilities Current liabilities Trade payables 80,924 85,230 Bonds and borrowings 27,351 39,898 Accrued expenses 27,251 29,843 Income tax payables 8,680 4,638 Other financial liabilities 22,907 26,844 Other current liabilities 3,787 4,668 Total current liabilities 170, ,121 Non-current liabilities Bonds and borrowings 18,545 34,967 Retirement and severance benefits 15,047 16,024 Provisions 1,368 1,680 Other financial liabilities 14,865 18,280 Other non-current liabilities 3,705 5,788 Total non-current liabilities 53,530 76,739 Total liabilities 224, ,860 Equity Common stock 15,454 15,454 Capital surplus - 4,211 Treasury stock, at cost (234) (240) Retained earnings 340, ,136 Accumulated other comprehensive income 13,954 19,905 Total equity attributable to owners of the parent 369, ,466 Non-controlling interests 6,437 7,644 Total equity 376, ,110 Total liabilities and equity 600, ,970 4

5 (2) Condensed Quarterly Consolidated Statement of Income and Condensed Quarterly Consolidated Statement of Comprehensive Income (Condensed Quarterly Consolidated statement of income) (First half ended September 30, 2017) First half ended Sep. 30, 2016 (Apr. 1, Sep. 30, 2016) First half ended Sep. 30, 2017 (Apr. 1, Sep. 30, 2017) Revenues 257, ,864 Cost of sales (186,276) (235,599) Gross profit 70,944 84,265 Selling, general and administrative expenses (46,345) (55,230) Other income 3,219 3,301 Other expenses (2,406) (12,652) Operating income 25,412 19,684 Financial income 508 1,358 Financial expenses (4,256) (1,055) Share of profits of investments accounted for using the equity method 1,718 1,946 Income before income taxes 23,382 21,933 Income taxes (6,515) (4,923) Net income 16,867 17,010 Net income attributable to: Owners of the parent 16,773 16,768 Non-controlling interests Earnings per share attributable to owners of the parent (yen) Basic Diluted - - 5

6 (Condensed Quarterly Consolidated statement of comprehensive income) (First half ended September 30, 2017) First half ended Sep. 30, 2016 (Apr. 1, Sep. 30, 2016) First half ended Sep. 30, 2017 (Apr. 1, Sep. 30, 2017) Net income 16,867 17,010 Other comprehensive income (OCI) s that cannot be reclassified into profit or loss Net gains and losses from financial assets measured at fair value through OCI (531) 862 Remeasurements of defined benefit obligations - - Total items that cannot be reclassified into profit or loss (531) 862 s that can be reclassified into profit or loss Foreign currency translation adjustments (15,880) 5,531 Cash flow hedges 6 (85) Share of OCI of investments accounted for using the equity method (432) 58 Total items that can be reclassified into profit or loss (16,306) 5,504 Other comprehensive income (OCI) (16,837) 6,366 Comprehensive income 30 23,376 Comprehensive income attributable to: Owners of the parent ,890 Non-controlling interests (402) 486 6

7 (3) Condensed Quarterly Consolidated Statement of Cash Flows First half ended Sep. 30, 2016 (Apr. 1, Sep. 30, 2016) First half ended Sep. 30, 2017 (Apr. 1, Sep. 30, 2017) Cash flows from operating activities Net income 16,867 17,010 Depreciation and amortization 13,452 16,318 Income tax expense 6,515 4,923 Interest and dividend income (505) (562) Interest expenses paid Share of profits of investments accounted for using the equity method (1,718) (1,946) (Increase) decrease in trade receivables (10,114) (10,916) (Increase) decrease in accounts receivables other 249 3,012 (Increase) decrease in inventories (1,982) (6,926) Increase (decrease) in trade payables 12,395 (942) Increase (decrease) in retirement and severance benefits (87) (236) Other (210) 5,914 Subtotal 35,412 26,406 Interest and dividends received Interest paid (572) (630) Income taxes paid (9,063) (12,797) Net cash provided by operating activities 26,351 13,579 Cash flows from investing activities Expenses for property, plant and equipment acquired (14,245) (21,524) Income from sale of property, plant and equipment 1, Proceeds from redemption and sale of investments in securities 104 1,136 Purchase of investments in subsidiaries - (24,422) Purchase of investments accounted for using the equity method - (8,061) Expenses for investment securities acquired (495) (216) Other (124) (2,424) Net cash provided by (used in) investing activities (13,616) (54,545) Cash flows from financing activities Net increase (decrease) in short-term debt (1,854) 9,476 Proceeds from long-term debt ,127 Payments on long-term debt (2,395) (12,450) Redemption of bonds (10,000) - Dividends paid to stockholders (5,206) (6,247) Dividends paid to non-controlling interests (102) (152) Other (587) (1,050) Net cash used in financing activities (19,437) 11,704 Effect of exchange rate changes on cash and cash equivalents (7,034) 1,937 Net increase (decrease) in cash and cash equivalents (13,736) (27,325) Cash and cash equivalents at beginning of year 119, ,649 Cash and cash equivalents at end of year 106,252 80,324 7

8 (4) s Regarding Condensed Quarterly Consolidated Financial Statements (Notes on premise of going concern) Not applicable (Segment Information) Information related to revenue and profit (loss) for each reportable segments First half ended September 30, 2016 (April 1, 2016 through September 30, 2016) Functional Materials Reportable segment Advanced Components and Systems Total Adjustment (Note) Total Revenue Revenue from outside customers 132, , , ,220 Intersegment revenue 1, ,862 (2,862) - Total 134, , ,082 (2,862) 257,220 Segment profit (loss) 22,234 3,105 25, ,412 Financial income Financial expenses (4,256) Share of profits of investments accounted for using the equity method ,718 Income before income taxes ,382 Note: Segment profit adjustments are the amounts eliminated for intersegment transactions. First half ended September 30, 2017 (April 1, 2017 through September 30, 2017) Functional Materials Reportable segment Advanced Components and Systems Total Adjustment (Note) Total Revenue Revenue from outside customers 149, , , ,864 Intersegment revenue 2, ,042 (3,042) - Total 151, , ,906 (3,042) 319,864 Segment profit (loss) 24,618 (4,931) 19,687 (3) 19,684 Financial income ,358 Financial expenses (1,055) Share of profits of investments accounted for using the equity method ,946 Income before income taxes ,933 Note: Segment profit adjustments are the amounts eliminated for intersegment transactions. 8