Consolidated Financial Statements

Transcription

1 Consolidated Financial Statements Consolidated Balance Sheets March 31, 18 and 17 Assets Current assets: Cash and cash equivalents 47,414 41,18 $ 44,291 Notes and accounts receivable - trade Unconsolidated subsidiaries and affiliates ,483 Other 141, 124,722 1,33,949 Inventories 14,215 9,749 9,939 Short-term loans receivable from unconsolidated subsidiaries and affiliates 1,735 1,72 1,331 Deferred tax assets 5,9 5,871 53,78 Other current assets 11,84 1,1 19,978 Allowance for doubtful accounts (973) (354) (9,159) Total current assets 311,99 2,439 2,935,89 Liabilities and net assets Current liabilities: Short-term loans payable 5,35 42,889 $ 473,983 Current portion of long-term loans payable 9,298 9,5 87,519 Notes and accounts payable: Trade 84,914 73,58 799,2 Construction 8,373 7,418 78,812 Other 18,971 15,1 178,57 Income taxes payable 4,481 3,391 42,178 Accrued expenses 13,514 13, ,3 Other current liabilities 4,975 4,35 4,828 Total current liabilities 194,882 19,2 1,834,35 Property, plant and equipment: Land 32,545 31,72 3,335 Buildings and structures 194,55 183,89 1,831,372 Machinery, equipment and vehicles 54,428 54,14 5,312,74 Construction in progress 12,712 13, ,54 Other 3,728 3, 35,9 7, ,358 7,5,215 Less accumulated depreciation 57,53 551,814 5,39,94 Property, plant and equipment, net 237, ,544 2,235,29 Noncurrent liabilities: Bonds payable 1, 1, 94,127 Long-term loans payable 45,848 5,33 431,551 Net defined benefit liability 37,325 37,31 351,327 Provision for directors retirement benefits ,79 Deferred tax liabilities 2,7 2,99 25,132 Other noncurrent liabilities 3,389 2,283 31,899 Total noncurrent liabilities 99,529 12,347 93,832 Contingent liabilities Intangible assets: 9,892 1,252 93,11 Investments and other assets: Investment securities: Unconsolidated subsidiaries and affiliates 5,514 4,35 51,91 Other,857 59,31 1,4 Long-term loans receivable 1,229 1,31 11,58 Deferred tax assets 1,259 2,11 11,851 Other 1,145 9,91 95,491 Allowance for doubtful accounts (27) (229) (2,541) Total investments and other assets 81,734 7,5 79,334 41,1 592,9 $,33,3 Net assets Shareholders equity: Capital stock Authorized 75,, shares Issued 35,, shares 33,47 33,47 311, Capital surplus 32,799 32,813 38,72 Retained earnings 24,94 248,524 2,494,13 Less treasury stock, at cost 22,284,91 shares in 18 19,834,211 shares in 17 (18,84) (1,753) (175,8) Total shareholders equity 312,12 297,1 2,937,933 Accumulated other comprehensive income: Valuation difference on available-for-sale securities 24,731 22, ,784 Deferred gains or losses on hedges (19) (1) (1,2) Foreign currency translation adjustments (3,35) (5,15) (28,57) Remeasurements of defined benefit plans (7,527) (9,53) (7,849) Total accumulated other comprehensive income 14, 7, ,342 Subscription rights to shares ,833 Non-controlling interests,112 1,13 189,37 Total net assets 34, ,551 3,22,415 41,1 592,9 $,33,3 43 Kaneka Integrated Report 18 Kaneka Integrated Report 18 44

2 Consolidated Statements of Income Net sales 59, , ,227 $ 5,11,28 Cost of sales 42,9 385,32 394,21 4,18,82 Gross profit 19,183 12,8 11, 1,592,4 Selling, general and administrative expenses 132, ,95 122,98 1,245,237 Operating income 3,889 33,15 38,2 347,223 Other income (expenses): Interest and dividend income 1,2 1,783 1,483 15,79 Interest expenses (1,92) (1,428) (1,199) (15,92) Gain on sales of investment securities - 1, Gain on sales of property, plant and equipment Loss on disposal of property, plant and equipment (1,745) (2,534) (3,485) (1,425) Foreign exchange gains (losses), net 455 (2,27) (32) 4,283 Equity in earnings of affiliates, net ,384 Gain on negative goodwill 954-1,313 8,9 Compensation expenses - - (8) - Litigation expenses (1,88) (9) (1,177) (1,241) Restructuring charges (1,782) - - (1,773) Gain on step acquisitions 1, ,4 Impairment loss - - (1,53) - Environmental expenses (57) - (598) (5,337) Provision of allowance for doubtful accounts (8) - - (,5) Other, net (2,8) (1,7) (2,81) (27,11) Income before income taxes and non-controlling interests 31,85 28,92 3,2 292,592 Income taxes: Current 8,372 7,89,599 78,3 Deferred (83) 88 2,992 (782) Net income 22,79 21,515 21,11 214,571 Net income attributable to non-controlling interests 1,224 1, ,521 Net income attributable to owners of parent 21,572,485,98 $ 3,5 Consolidated Statements of Comprehensive Income Net income 22,79 21,515 21,11 $ 214,571 Other comprehensive income: Valuation difference on available-for-sale securities 2,4 5,47 (2,239) 22,97 Deferred gains or losses on hedges (47) (9) 53 (442) Foreign currency translation adjustments 2,11 (4,28) (4,49) 19,917 Remeasurements of defined benefit plans 2,154 1,248 (12,98),275 Share of other comprehensive income of associates accounted for using equity method 3 (2) (18) 28 Total other comprehensive income, 2,1 (18,351) 2,745 Comprehensive income 29,42 23,531 2, $ 277,31 Comprehensive income attributable to: Comprehensive income attributable to owners of parent 27,959 22,597 2,9 $ 2,19 Comprehensive income attributable to non-controlling interests 1, (3) 14,147 Consolidated Statements of Changes in Net Assets Shareholders equity Capital stock Balance at beginning of year 33,47 33,47 33,47 $ 311, Total changes of items during the period Balance at the end of current period 33,47 33,47 33,47 311, Capital surplus Balance at beginning of year 32,813 34,93 34,837 38,857 Disposal of treasury stock - - () - Change in treasury shares of parent arising from transactions with non-controlling interests (14) (2,123) 15 (131) Total changes of items during the period (14) (2,123) 99 (131) Balance at the end of current period 32,799 32,813 34,93 38,72 Retained earnings Balance at beginning of year 248, , ,74 2,339,27 Dividends from surplus per share (5,934) (,329) (5,345) (55,855) Change of scope of consolidation ,747 Net income attributable to owners of parent 21,572,485,98 3,5 Disposal of treasury stock (21) (1) (9) (199) Total changes of items during the period 1,4 14,14 15,2 154,743 Balance at the end of current period 24,94 248, ,378 2,494,13 Treasury stock Balance at beginning of year (1,753) (15,559) (12,72) (157,9) Purchase of treasury stock (2,19) (1,812) (3,585) (24,52) Disposal of treasury stock ,47 Total changes of items during the period (1,931) (1,194) (3,487) (18,17) Balance at the end of current period (18,84) (1,753) (15,559) (175,8) Accumulated other comprehensive income Valuation difference on available-for-sale securities Balance at beginning of year 22,338 17,451 19, 21,2 Net changes of items other than shareholders equity 2,393 4,887 (2,9) 22,524 Total changes of items during the period 2,393 4,887 (2,9) 22,524 Balance at the end of current period 24,731 22,338 17, ,784 Deferred gains or losses on hedges Balance at beginning of year (1) (52) (15) (574) Net changes of items other than shareholders equity (48) (9) 53 (452) Total changes of items during the period (48) (9) 53 (452) Balance at the end of current period (19) (1) (52) (1,2) Continued on the following page. 45 Kaneka Integrated Report 18 Kaneka Integrated Report 18 4

3 Consolidated Statements of Cash Flows Foreign currency translation adjustments Balance at beginning of year (5,15) (1,82) 2,975 (48,52) Net changes of items other than shareholders equity 2,7 (4,23) (4,57) 19,485 Total changes of items during the period 2,7 (4,23) (4,57) 19,485 Balance at the end of current period (3,35) (5,15) (1,82) (28,57) Remeasurements of defined benefit plans Balance at beginning of year (9,53) (1,91) 1,172 (9,8) Net changes of items other than shareholders equity 2,12 1,257 (12,82),11 Total changes of items during the period 2,12 1,257 (12,82),11 Balance at the end of current period (7,527) (9,53) (1,91) (7,849) Subscription rights to shares Balance at beginning of year ,551 Net changes of items other than shareholders equity Total changes of items during the period Balance at the end of current period ,833 Non-controlling interests Balance at beginning of year 1,13 1,285 1,83 151,82 Net changes of items other than shareholders equity 3,982 (155) 5,455 37,481 Total changes of items during the period 3,982 (155) 5,455 37,481 Balance at the end of current period,112 1,13 1, ,37 Total net assets Balance at beginning of year 321,551 38,722 39,227 3,2,48 Dividends from surplus- 18. per share (5,934) (,329) (5,345) (55,855) Change of scope of consolidation ,747 Net income attributable to owners of parent 21,572,485,98 3,5 Purchase of treasury stock (2,19) (1,812) (3,585) (24,52) Disposal of treasury stock ,277 Change in treasury shares of parent arising from transactions with non-controlling interests (14) (2,123) 15 (131) Net changes of items other than shareholders equity 1,553 2, (12,749) 99,331 Total changes of items during the period 25,48 12,829 (55) 235,77 Balance at the end of current period 34, ,551 38,722 $ 3,22,415 Cash flows from operating activities Income before income taxes and non-controlling interests 31,85 28,92 3,2 $ 292,592 Depreciation and amortization 3,323 27,8 2, ,4 Impairment loss - - 1,53 - Gain on step acquisitions (1,43) - (23) (13,4) Gain on negative goodwill (954) - (1,313) (8,9) Restructuring charges 1, ,773 Increase (decrease) in net defined benefit liability 3,2 2, ,483 Decrease (increase) in net defined benefit asset Increase (decrease) in allowance for doubtful accounts ,15 Interest and dividend income (1,2) (1,783) (1,483) (15,79) Interest expenses 1,92 1,428 1,199 15,92 Loss (gain) on disposal of property, plant and equipment ,998 Gain on sales of investment securities - (1,2) - - Equity in earnings of affiliates, net (147) (118) (281) (1,384) Decrease (increase) in notes and accounts receivable-trade (12,54) (4,9),933 (113,4) Decrease (increase) in inventories (,17) (4,57) (1,59) (58,133) Increase (decrease) in notes and accounts payable-trade 8,58 7,34 (4,5),48 Others 1,7 19 5,733 1,59 Subtotal 5,989 55,734 4,4 53,418 Interest and dividend income received 1,753 1,94 1, 1,5 Interest expenses paid (1,81) (1,5) (1,172) (15,823) Income taxes paid (7,31) (8,113) (5,387) (8,) Net cash provided by operating activities 49,751 48,1 59,75 48,289 Cash flows from investing activities Purchase of property, plant and equipment (34,113) (3,72) (38,552) (321,94) Proceeds from sales of property, plant and equipment 2 1, Purchase of intangible assets (1,) (1,474) (2,8) (13,234) Purchase of investment securities (1,385) (7) (7) (13,37) Proceeds from sales and distributions of investment securities 157 1, ,478 Purchase of shares of subsidiaries resulting in change in scope of consolidation (1,44) (12) - (13,7) Proceeds from purchase of shares of subsidiaries resulting in change in scope of consolidation 7-1,538 7,342 Payments for transfer of business (332) - - (3,125) Payments of loans receivable (934) (315) (1,42) (8,791) Collection of loans receivable ,434 Others (1,57) (59) (1,18) (9,95) Net cash used in investing activities (38,79) (3,37) (,752) (35,173) Cash flows from financing activities Net increase (decrease) in short-term loans payable,72 (2,859) 1,359,84 Proceeds from long-term loans payable 5,28,251 13,32 52,974 Repayment of long-term loans payable (9,19) (5,98) (9,31) (8,35) Proceeds from sales and leasebacks ,184 Repayments of lease obligations (2) (171) (11) (2,54) Proceeds from share issuance to non-controlling shareholders Cash dividends paid (5,934) (,329) (5,345) (55,855) Cash dividends paid to non-controlling interests (359) () (243) (3,379) Purchase of treasury stock (2,18) (1,812) (3,585) (24,42) Proceeds from sales of treasury stock ,471 Payments from changes in ownership interests in subsidiaries that do not result in change in scope of consolidation (82) (2,772) (1) (772) Net cash used in financing activities (5,391) (13,13) (3,552) (5,744) Effect of exchange rate change on cash and cash equivalents 232 (281) (259) 2,183 Net increase (decrease) in cash and cash equivalents 5,79 (2,144) 15,142 54,555 Cash and cash equivalents at beginning of period 41,18 43,12 28, 38,88 Increase in cash and cash equivalents resulting from change of scope of consolidation - - 5,48 Cash and cash equivalents at end of period 47,414 41,18 43,12 $ 44, Kaneka Integrated Report 18 Kaneka Integrated Report 18 48

4 Financial Highlights Nonfinancial Highlights Net Sales / Operating Income Net Income Attributable to Owners of Parent / ROE CO2 Emissions from Energy Consumption and Carbon Intensity Waste Generated and Recycled Net sales Operating income (Fiscal year) Net income attributable to owners of parent ROE (Return on equity) (Fiscal year) Non-consolidated Other greenhouse gases on a non-consolidated basis Group companies in Group companies outside Carbon intensity for all parent manufacturing sites (right scale) CO2 Emissions (1, t- CO2) (Fiscal year) 7 (Base year) Carbon intensity 11 9 Amount of waste generated by Kaneka Amount recycled by Kaneka Amount of waste generated by group companies in Amount recycled by group companies in ( tons) (Fiscal year) Overseas Sales / Overseas Sales Ratio Net Assets / Shareholders Equity Ratio VOC Discharge: Voluntary Plan and Performance Water Consumption Asia North America Europe Other Overseas sales ratio Net assets Shareholders equity ratio (Tons) Kaneka Group companies in Group companies outside , 5, 4, 3, 2, 1, 5,43 3,9 2,829 2,282 1,853 1,9 1,72 1,554 1,578 (Million m 3 ) (Fiscal year) (Fiscal year) (Base year) (Target) (Fiscal year) (Fiscal year) R&D Expenses / R&D Expenses Ratio New Product Sales / New Product Sales Ratio R&D expenses R&D expenses ratio New product sales New product sales ratio (Fiscal year) (Fiscal year) 49 Kaneka Integrated Report 18 Kaneka Integrated Report 18 5

5 Corporate Profile Global Network Corporate Profile EUROPE / AFRICA Name Offices Date of Establishment KANEKA CORPORATION Tokyo Head Office , Akasaka, Minato-ku, Tokyo 17-28, Tel: Fax: Osaka Head Office , Nakanoshima, Kita-ku, Osaka , Tel: Fax: September 1, 1949 Paid-in Capital 33,4 million yen (As of March 31, 18) Net Sales billion yen (Fiscal years ended March 18) Facilities in Research Institutes Sales Office Nagoya (Aichi Prefecture) Manufacturing Site Takasago (Hyogo Prefecture) Osaka (Osaka Prefecture) Shiga (Shiga Prefecture) Kashima (Ibaraki Prefecture) Material Solutions New Research Engine BDP Technology Laboratories Biotechnology Research Laboratories Regenerative Medicine and Cell Therapy Laboratories Photovoltaic & Thin Film Device Research Laboratories Process Development Research Laboratories Process Technology Laboratories Kaneka Europe Holding N.V. Kaneka Belgium N.V. Kaneka Pharma Europe N.V. Kaneka Eurogentec S.A. Kaneka Modifiers Deutschland GmbH Eurogentec Deutschland GmbH Eurogentec Proteomics GmbH Eurogentec Ltd. Eurogentec France S.A.S.U. Eurogentec Nederland B.V. AB-Biotics, S.A. Kaneka Africa Liaison Office Kaneka s European Photovoltaics Research Laboratory employees (Including consolidated subsidiaries) 1,234 (As of March 31, 18) Affiliated Companies 11 Subsidiaries (Including 43 (in ) and 41 (outside ) consolidated subsidiaries) Investor Information (As of March 31, 18) Common Stock Traded Transfer Agent Accounting Auditor Authorized Capital Issued Shares Shareholders Tokyo, Nagoya Mitsubishi UFJ Trust and Banking Corporation, Osaka Branch 3--3, Fushimimachi, Chuo-ku, Osaka , KPMG AZSA LLC Ginsen Bingomachi Bldg., 3--5, Kawaramachi, Chuo-ku, Osaka , 75,, shares 35,, shares 15,15 Shareholder Composition 1.4% 25.2% 7.7% Common Stock Price Range (Tokyo Stock Exchange; Yen) Years ended March 31.7% Shareholders 15,15 5.% Financial institutions 174,949, shares (82 shareholders) Foreign companies 88,183, shares (473 shareholders) Individuals and others 57,487, shares (14,157 shareholders) Other companies 2,79, shares (259 shareholders) Financial instruments firms 2,582, shares (44 shareholders) Share numbers are rounded down to the nearest thousand. Percentages are rounded to the nearest decimal point High ,278 1,1 1,114 Overseas Subsidiaries Overseas R&D Facilities ASIA / OCEANIA Kaneka Asia Co., Ltd. Kaneka Trading (Shanghai) Co., Ltd. Kaneka Eperan (Suzhou) Co., Ltd. HiHua Fiber Co., Ltd. Kaneka (Foshan) High Performance Materials Co., Ltd. Cemedine Shanghai Co., Ltd. Dalian Showa Plastic Co., Ltd. Kaneka (Malaysia) Sdn. Bhd. Kaneka Eperan Sdn. Bhd. Kaneka Paste Polymers Sdn. Bhd. Kaneka Innovative Fibers Sdn. Bhd. Kaneka Apical Malaysia Sdn. Bhd. Kaneka MS Malaysia Sdn. Bhd. Showa Global (Thailand) Co., Ltd. Cemedine (Thailand) Co., Ltd. Kaneka India Pvt. Ltd. PT. Kaneka Foods Indonesia Kaneka Taiwan Corporation Taiwan Cemedine Co., Ltd. Kaneka Korea Corporation Cemedine Philiippines Corporation Showa Global Ltd. TGA Pastry Company Pty. Ltd. AMERICA Kaneka Americas Holding, Inc. Kaneka North America LLC Kaneka Pharma America LLC Kaneka Aerospace LLC Anaspec Inc. Cemedine America Co., Ltd. Cemedine North America LLC Eurogentec North America Inc. Kaneka South America Representative Ltd. Kaneka US Material Research Center Kaneka US Innovation Center Low Kaneka Singapore Co. (Pte) Ltd. Kaneka Pharma Vietnam Co., Ltd. Vina Showa Co., Ltd. Kaneka (Thailand) Co., Ltd. Asia Cemedine Co., Ltd. 51 Kaneka Integrated Report 18 Kaneka Integrated Report 18 52