Summary of Consolidated Financial Results for the Year Ended March 31, 2018 (Based on Japanese GAAP)

Transcription

1 Translation Notice: This document is an excerpt translation of the original Japanese document and is only for reference purposes. In the event of any discrepancy between this translated document and the original Japanese document, the latter shall prevail. Company name: TOTO Ltd. Stock exchange listing: Tokyo, Nagoya, Fukuoka Stock code: 5332 URL Summary of Consolidated Financial Results for the Year Ended March 31, 2018 (Based on Japanese GAAP) Representative: President & Representative Director Madoka Kitamura Inquiries: General Manager Management Planning Dept. Scheduled date of ordinary general meeting of shareholders: June 26, 2018 Scheduled date to file Securities Report: June 27, 2018 Scheduled date to commence dividend payments: June 5, 2018 Preparation of supplementary material on financial results: Holding of financial results meeting: Yoshihisa Tanaka TEL 03(6836) Consolidated financial results for the year ended March 31, 2018 (from April 1, 2017 to March 31, 2018) Yes Yes April 27, 2018 (Amounts less than one million yen are rounded down) (1) Consolidated operating results Percentages indicate year-on-year changes Net sales Operating profit Ordinary profit Profit attributable to owners of parent Millions of yen % Millions of yen % Millions of yen % Millions of yen % Year ended March 31, , , , , Year ended March 31, ,305 47,446 48,183 32,960 (Note) Comprehensive income: Year ended March 31, 2018: 49,178 million yen [49.8%] Year ended March 31, 2017: 32,833 million yen [124.9%] Earnings per share Diluted earnings per share Profit attributable to owners of parent/equity Ordinary profit/total assets Operating profit/net sales Yen Yen % % % Year ended March 31, Year ended March 31, (Reference) Investment gain or loss by equity method: Year ended March 31, 2018: 972 million yen Year ended March 31, 2017: 625 million yen (Note) Because results have been retrospectively adjusted in accordance with changes in accounting policies, the comparative year-on-year rate of change for the year ended March 31, 2017 is not presented. (2) Consolidated financial position assets Net assets Equity ratio Net assets per share Millions of yen Millions of yen % Yen As of March 31, , , , As of March 31, , , , (Reference) Equity: As of March 31, 2018: 333,253 million yen As of March 31, 2017: 297,020 million yen (3) Consolidated cash flows Cash flows from operating activities Cash flows from investing activities Cash flows from financing activities Cash and cash equivalents at end of period Millions of yen Millions of yen Millions of yen Millions of yen Year ended March 31, ,489 (36,374) (11,244) 97,637 Year ended March 31, ,604 (35,257) (18,905) 98,384 1

2 2. Cash dividends Annual dividends per share 1st quarter-end 2nd quarter-end 3rd quarter-end Fiscal year-end cash dividends () Dividend payout Ratio of dividends ratio (Consolidated) to net assets (Consolidated) Yen Yen Yen Yen Yen Millions of yen % % Year ended March 31, , Year ended March 31, , Year ending March 31, 2019 (Forecast) Forecast of consolidated financial results for the year ending March 31, 2019 (from April 1, 2018 to March 31, 2019) Net sales Operating profit Ordinary profit Percentages indicate year-on-year changes Profit attributable to owners of parent Earnings per share Millions of yen % Millions of yen % Millions of yen % Millions of yen % Yen Six months ending September 30, , ,700 (7.9) 21,600 (9.9) 13,600 (9.8) Full year 620, , , , For detailed information on the consolidated financial results, please refer to the material on financial results released today. 4. Notes (1) Changes in significant subsidiaries during the year ended March 31, 2018 (changes in specified subsidiaries resulting in the change in scope of consolidation): No (2) Changes in accounting policies, changes in accounting estimates, and restatement of prior period financial statements Changes in accounting policies due to revisions to accounting standards and other regulations: No Changes in accounting policies due to other reasons: Yes Changes in accounting estimates: No Restatement of prior period financial statements: No (3) Number of issued shares (common shares) number of issued shares at the end of the period (including treasury shares) As of March 31, ,981,297 shares As of March 31, ,981,297 shares Number of treasury shares at the end of the period As of March 31, ,695,972 shares As of March 31, ,828,224 shares Average number of shares during the period Year ended March 31, ,187,042 shares Year ended March 31, ,146,109 shares * Financial results reports are not required to be audited by certified public accountants or an audit corporation. * Explanation of proper use of earnings forecasts, and other special matters Caution concerning forward-looking statements The forward-looking statements, including the earnings forecasts shown in this document, are based on information currently available to the Company and on certain assumptions deemed to be reasonable by the Company. As such, they do not constitute guarantees by the Company of future performance. Actual performance and other results may differ materially due to various factors. For the suppositions that form the assumptions for earnings forecasts and cautions concerning the use thereof, please refer to the section of (1) Review of business results for the current period (Outlook for the next term) of 1. Review of Business Results and Others on page 3 of the attached material. 2

3 1. Review of Business Results and Others (1) Review of business results for the current period (Review of operations) During the fiscal year ended March 31, 2018 (April 1, 2017 to March 31, 2018) (hereinafter fiscal 2017), the Japanese economy continued its modest recovery trend. The global economy also continued its modest recovery on the whole. Under this business environment, the TOTO Group continued to promote its activities in the two core businesses: the Global Housing Equipment Business, composed of the three businesses of Japan, China/Asia, and the Americas/Europe, and the New Domain Businesses, composed of the Ceramics Business and the Green Building Materials Business, based on TOTO V Plan 2017, our long-term management plan, as well as on the four-year medium-term management plan initiated in fiscal As a result, net sales for fiscal 2017 amounted to 592,301 million yen, an increase of 4.4% year on year, operating profit totaled 52,602 million yen, an increase of 10.9 % year on year, ordinary profit stood at 54,376 million yen, an increase of 12.9% year on year, and profit attributable to owners of parent amounted to 36,798 million yen, an increase of 11.6% year on year. Business results by segment are as follows. Net sales by segment are sales to external customers. (Segment information) (i) Global Housing Equipment Business Consolidated net sales for fiscal 2017 totaled 563,604 million yen (a year-on-year increase of 3.3%) and consolidated operating profit totaled 55,041 million yen (an increase of 7.2%). <Japan Housing Equipment Business> Consolidated net sales for fiscal 2017 stood at 425,609 million yen (a year-on-year increase of 0.5%) and consolidated operating profit totaled 28,669 million yen (a decrease of 1.6%). At the TOTO Group, driven by new products such as Neorest, the remodeling segment performed better than the previous fiscal year, while the new construction segment fell short of the previous fiscal year. The three companies TOTO, DAIKEN and YKK AP continued to promote Green Remodeling, a form of remodeling that contributes to both comfort and environmental friendliness. Further, by making intensified proposals for toilets that are more visible to a growing number of foreign tourists to Japan, we are increasing opportunities to appeal to customers with the Washlet and strengthening activities that will lead to purchases not only in Japan but also overseas. <China & Asia Housing Equipment Business> (China) Consolidated net sales for fiscal 2017 stood at 71,966 million yen (a year-on-year increase of 17.2%) and consolidated operating profit totaled 18,145 million yen (an increase of 19.0%). The TOTO Group will continue monitoring such factors as fluctuations in the market environment and changing consumer purchasing behavior in the country s leading cities and other metropolitan regions. By leveraging the strength of TOTO as a luxury brand, we will continue pursuing business operations. In order to meet the growing demand resulting from long-term market growth in China, we are continuing to push ahead with the building of efficient production and optimal supply systems for this market. In addition to these activities, we achieved consistent growth in sales with the positive effect of the Washlet 3

4 sales promotion, etc. (Asia-Oceania) Consolidated net sales for fiscal 2017 stood at 31,656 million yen (a year-on-year increase of 10.4%) and consolidated operating profit totaled 6,728 million yen (an increase of 21.1%). At the TOTO Group, we are working to bolster our marketing capabilities in countries and regions with emerging economies, while we are also enhancing our production systems in Vietnam and Thailand from where products are supplied to a diverse range of markets worldwide. In addition, in Vietnam and Taiwan, we are pursuing business operations utilizing the awareness of TOTO as a manufacturer of luxury-brand products. <Americas & Europe Housing Equipment Business> (The Americas) Consolidated net sales for fiscal 2017 stood at 30,784 million yen (a year-on-year increase of 8.2%) and consolidated operating profit totaled 2,530 million yen (an increase of 13.3%). At the TOTO Group, as the leading manufacturer in the middle and high-end market we are working to enhance our brand value and differentiate ourselves even further from our competitors by demonstrating the superiority and value of our products. (Europe) Consolidated net sales for fiscal 2017 stood at 3,587 million yen (a year-on-year decrease of 3.7%) and consolidated operating loss totaled 1,032 million yen (compared with an operating loss of 825 million yen in fiscal 2016). At the TOTO Group, we are developing our marketing channels and acquiring well-known properties, primarily in Germany, France, and the United Kingdom, with the focus on improving the quality of displays at dealers showrooms and exploring and increasing contractors. With the visibility of our differentiated products such as Washlet and Neorest improved, an increasing number of these products are adopted at prestigious sites such as hotels. (ii) New Domain Businesses Consolidated net sales for fiscal 2017 stood at 28,434 million yen (a year-on-year increase of 32.4%), and consolidated operating profit totaled 1,303 million yen (an increase of 143.2%). In our New Domain Businesses, we are working steadily by focusing on our Ceramics Business, which develops products using TOTO s Only One technologies, and on our Green Building Materials Business, which supplies construction and coating materials based on our Hydrotect environmental purification technology. <Ceramics Business> Consolidated net sales for fiscal 2017 stood at 20,030 million yen (a year-on-year increase of 60.2%) and consolidated operating profit totaled 1,744 million yen (an increase of 42.1%). At the TOTO Group, in the wake of a boost in demand for high-tech devices such as semiconductors, high-speed optical communication, display devices, etc., we have seen robust demand for our ceramics products, which are used in their manufacturing equipment. We are aiming to build a strong business base through continuously reinforcing our manufacturing facilities and development structures, as well as working toward improved productivity. 4

5 <Green Building Materials Business> Consolidated net sales for fiscal 2017 stood at 8,404 million yen (a year-on-year decrease of 6.4%) and consolidated operating loss totaled 440 million yen (compared with an operating loss of 691 million yen in fiscal 2016). Sales declined, reflecting a decrease in new housing construction starts among buyers of exterior wall products for housebuilding companies. However, the operating loss improved, mainly reflecting factors such as sales growth and improved profits as a result of reinforcing the production system for Hydrocera, an antifouling porcelain plate that protects the surrounding decor. (Outlook for the next term) For the fiscal year ending March 2019, we are forecasting year-on-year increases in both sales and profits. Specifically, we are projecting net sales of 620,000 million yen (a year-on-year increase of 4.7%), operating profit of 54,000 million yen (an increase of 2.7%), ordinary profit of 56,000 million yen (an increase of 3.0%) and profit attributable to owners of parent of 38,000 million yen (an increase of 3.3%). *Note: Forecasts based on our projections and plans for the future contain unpredictable elements that may cause fluctuations. Accordingly, actual results may differ materially from forecasts. (2) Review of financial position for the current period Consolidated cash and cash equivalents (hereinafter referred to as funds ) for fiscal 2017 decreased by 746 million yen to 97,637 million yen, down from 98,384 million yen at the end of the previous fiscal year. (Cash flows from operating activities) Funds provided by operating activities totaled 45,489 million yen. This was due to increases in funds including profit before income taxes of 54,254 million yen and depreciation of 21,357 million yen; and decreases in funds including income taxes paid of 14,869 million yen and a decrease in net defined benefit liability of 13,124 million yen. (Cash flows from investing activities) Funds used in investing activities totaled 36,374 million yen. This was mainly due to the purchase of property, plant and equipment of 35,164 million yen. (Cash flows from financing activities) Funds used in financing activities totaled 11,244 million yen. This was mainly due to cash dividends paid of 11,840 million yen. Trends in cash flow indexes (financial figures on a consolidated basis) are as follows: Fiscal Year Ended March 31, 2016 Fiscal Year Ended March 31, 2017 Fiscal Year Ended March 31, 2018 Equity ratio (%) (*1) Equity ratio based on market value (%) (*2) Debt redemption period (year) (*3) Interest coverage ratio (times) (*4) (*1) Equity ratio: Equity / assets 5

6 (*2) Equity ratio based on market value: Market capitalization / assets Market capitalization was calculated by multiplying the closing stock price at the end of the period by the total number of issued and outstanding shares at the end of the period (excluding treasury shares). (*3) Debt redemption period: Interest-bearing debt / Operating cash flow Interest-bearing debt includes all liabilities recorded on the consolidated balance sheet on which interest is paid. The figure used for operating cash flow is net cash provided by operating activities on the consolidated statement of cash flows. (*4) Interest coverage ratio: Operating cash flow / Interest payments Regarding the interest payments, we use Interest expenses paid recorded on the consolidated statement of cash flows. 2. Basic Rationale for Selecting the Accounting Standards The TOTO Group uses Japanese accounting standards. With respect to the adoption of IFRS, we will keep an eye on future trends and study the issue. 6

7 3. Consolidated Financial Statements (1) Consolidated balance sheets Assets Current assets (Millions of yen) As of March 31, 2017 As of March 31, 2018 Cash and deposits 86, ,728 Notes and accounts receivable - trade 96,097 95,883 Securities 20,000 Merchandise and finished goods 37,916 39,947 Work in process 10,800 12,207 Raw materials and supplies 13,676 15,024 Deferred tax assets 7,018 6,498 Other 9,850 11,261 Allowance for doubtful accounts (246) (206) current assets 282, ,343 Non-current assets Property, plant and equipment Buildings and structures, net 79,439 79,503 Machinery, equipment and vehicles, net 42,783 59,599 Land 27,509 27,211 Construction in progress 17,047 9,407 Other, net 11,908 13,218 property, plant and equipment 178, ,940 Intangible assets Goodwill Software 11,456 11,815 Other 3,930 5,152 intangible assets 15,511 16,999 Investments and other assets Investment securities 60,350 64,521 Long-term loans receivable Guarantee deposits 6,594 6,527 Net defined benefit asset Deferred tax assets 8,238 1,830 Other 2,243 2,546 Allowance for doubtful accounts (252) (260) investments and other assets 77,721 75,848 non-current assets 271, ,788 assets 553, ,132 7

8 (Millions of yen) As of March 31, 2017 As of March 31, 2018 Liabilities Current liabilities Notes and accounts payable - trade 76,404 79,452 Short-term loans payable 21,169 23,808 Commercial papers 9,000 9,000 Accounts payable - other 17,828 11,718 Accrued expenses 28,711 30,020 Income taxes payable 5,637 3,315 Accrued consumption taxes 2,194 3,136 Provision for directors' bonuses Accrual for loss on inspection and repair of products Provision for loss on business restructuring 1, Other 17,247 14,906 current liabilities 180, ,424 Non-current liabilities Long-term loans payable 3,786 3,011 Net defined benefit liability 61,545 39,569 Other 2,503 4,906 non-current liabilities 67,835 47,488 liabilities 247, ,912 Net assets Shareholders' equity Capital stock 35,579 35,579 Capital surplus 29,216 29,216 Retained earnings 231, ,351 Treasury shares (14,481) (14,248) shareholders' equity 281, ,898 Accumulated other comprehensive income Valuation difference on available-for-sale securities 17,085 19,815 Foreign currency translation adjustment 8,798 10,999 Remeasurements of defined benefit plans (10,663) (4,460) accumulated other comprehensive income 15,221 26,354 Share acquisition rights Non-controlling interests 8,432 8,456 net assets 306, ,219 liabilities and net assets 553, ,132 8

9 (2) Consolidated statements of income and consolidated statements of comprehensive income Consolidated statements of income Fiscal year ended March 31, 2017 (Millions of yen) Fiscal year ended March 31, 2018 Net sales 567, ,301 Cost of sales 348, ,148 Gross profit 218, ,152 Selling, general and administrative expenses 171, ,550 Operating profit 47,446 52,602 Non-operating income Interest income 1,412 1,882 Dividend income 1,226 1,416 Share of profit of entities accounted for using equity method Foreign exchange gains 241 Other 937 1,218 non-operating income 4,443 5,489 Non-operating expenses Interest expenses Sales discounts 1,296 1,342 Loss on retirement of non-current assets 1, Foreign exchange losses 408 Other 1,060 1,220 non-operating expenses 3,705 3,715 Ordinary profit 48,183 54,376 Extraordinary income Gain on sales of land and others Gain on sales of investment securities Gain on sales of memberships 10 3 Compensation income 273 extraordinary income Extraordinary losses Loss on sales of land and others 34 Loss on sales of investment securities 0 Loss on sales of membership 0 Loss on valuation of securities 56 Loss on valuation of membership 6 Impairment loss Restructuring expenses 1, extraordinary losses 1, Profit before income taxes 47,547 54,254 Income taxes - current 12,258 11,614 Income taxes - deferred 1,424 4,807 income taxes 13,682 16,422 Profit 33,864 37,832 Profit attributable to non-controlling interests 904 1,033 Profit attributable to owners of parent 32,960 36,798 9

10 Consolidated statements of comprehensive income (Millions of yen) Fiscal year ended March 31, 2017 Fiscal year ended March 31, 2018 Profit 33,864 37,832 Other comprehensive income Valuation difference on available-for-sale securities 4,052 2,722 Foreign currency translation adjustment (7,616) 2,598 Remeasurements of defined benefit plans, net of tax 2,634 6,271 Share of other comprehensive income of entities accounted for using equity method (102) (246) other comprehensive income (1,031) 11,345 Comprehensive income 32,833 49,178 Comprehensive income attributable to Comprehensive income attributable to owners of parent 32,492 47,932 Comprehensive income attributable to non-controlling interests 341 1,246 10

11 (3) Consolidated statements of changes in equity Fiscal year ended March 31, 2017 (Millions of yen) Shareholders' equity Capital stock Capital surplus Retained earnings Treasury shares shareholders' equity Balance at beginning of current period 35,579 29, ,255 (14,492) 262,558 Cumulative effects of changes in accounting policies (2,221) (2,221) Restated balance 35,579 29, ,034 (14,492) 260,336 Changes of items during period Dividends of surplus (11,501) (11,501) Profit attributable to owners of parent 32,960 32,960 Purchase of treasury shares (13) (13) Disposal of treasury shares (7) Net changes of items other than shareholders' equity changes of items during period 21, ,462 Balance at end of current period 35,579 29, ,485 (14,481) 281,798 Accumulated other comprehensive income Valuation difference on available-forsale securities Foreign currency translation adjustment Remeasurements of defined benefit plans accumulated other comprehensiv e income Share Non-controlli net acquisition ng interests assets rights Balance at beginning of current period 13,006 13,726 (13,265) 13, , ,522 Cumulative effects of changes in accounting policies 2,221 2,221 Restated balance 13,006 15,947 (13,265) 15, , ,522 Changes of items during period Dividends of surplus (11,501) Profit attributable to owners of parent 32,960 Purchase of treasury shares (13) Disposal of treasury shares 17 Net changes of items other than shareholders' equity 4,079 (7,148) 2,601 (467) 61 (524) (930) changes of items during period 4,079 (7,148) 2,601 (467) 61 (524) 20,531 Balance at end of current period 17,085 8,798 (10,663) 15, , ,053 11

12 Fiscal year ended March 31, 2018 (Millions of yen) Shareholders' equity Capital stock Capital surplus Retained earnings Treasury shares shareholders' equity Balance at beginning of current period 35,579 29, ,485 (14,481) 281,798 Cumulative effects of changes in accounting policies Restated balance 35,579 29, ,485 (14,481) 281,798 Changes of items during period Dividends of surplus (11,840) (11,840) Profit attributable to owners of parent 36,798 36,798 Purchase of treasury shares (17) (17) Disposal of treasury shares (91) Net changes of items other than shareholders' equity changes of items during period 24, ,099 Balance at end of current period 35,579 29, ,351 (14,248) 306,898 Accumulated other comprehensive income Valuation difference on available-forsale securities Foreign currency translation adjustment Remeasurements of defined benefit plans accumulated other comprehensiv e income Share Non-controlli net acquisition ng interests assets rights Balance at beginning of current period 17,085 8,798 (10,663) 15, , ,053 Cumulative effects of changes in accounting policies Restated balance 17,085 8,798 (10,663) 15, , ,053 Changes of items during period Dividends of surplus (11,840) Profit attributable to owners of parent 36,798 Purchase of treasury shares (17) Disposal of treasury shares 159 Net changes of items other than shareholders' equity 2,729 2,200 6,203 11,133 (91) 24 11,066 changes of items during period 2,729 2,200 6,203 11,133 (91) 24 36,165 Balance at end of current period 19,815 10,999 (4,460) 26, , ,219 12

13 (4) Consolidated statements of cash flows (Millions of yen) Fiscal year ended March 31, 2017 Fiscal year ended March 31, 2018 Cash flows from operating activities Profit before income taxes 47,547 54,254 Depreciation 18,994 21,357 Impairment loss Loss (gain) on valuation of securities 56 Loss on valuation of membership 6 Increase (decrease) in allowance for doubtful accounts (79) (30) Increase (decrease) in provision for directors' bonuses Increase (decrease) in accrual for loss on inspection and repair of products (34) (105) Increase (decrease) in provision for loss on business restructuring 682 (839) Increase (decrease) in provision for environmental measures (57) Increase (decrease) in net defined benefit liability (2,321) (13,124) Interest and dividend income (2,638) (3,298) Interest expenses Loss (gain) on sales of investment securities (170) (139) Loss (gain) on sales of membership (9) (3) Loss (gain) on sales of land (278) (46) Loss on retirement of non-current assets 1, Compensation income (273) Decrease (increase) in notes and accounts receivable - trade Decrease (increase) in inventories 427 (4,408) Increase (decrease) in notes and accounts payable - trade 1,081 2,702 Increase (decrease) in accounts payable - other (53) (835) Increase (decrease) in accrued expenses 2,239 1,212 Other, net 2,275 (1,576) Subtotal 69,927 56,761 Interest and dividend income received 3,127 3,669 Interest expenses paid (76) (71) Proceeds from compensation 273 Income taxes paid (10,647) (14,869) Net cash provided by (used in) operating activities 62,604 45,489 Cash flows from investing activities Payments into time deposits (8,787) (8,341) Proceeds from withdrawal of time deposits 6,238 11,255 Decrease (increase) in short-term loans receivable (0) 0 Purchase of property, plant and equipment (31,495) (35,164) Proceeds from sales of property, plant and equipment 2,162 1,280 Purchase of intangible assets (3,455) (5,177) Purchase of short-term and long-term investment securities (319) (49) Proceeds from sales and redemption of short-term and long-term investment securities Payments of long-term loans receivable (2) (8) Collection of long-term loans receivable Other, net 74 (408) Net cash provided by (used in) investing activities (35,257) (36,374) 13

14 (Millions of yen) Fiscal year ended March 31, 2017 Fiscal year ended March 31, 2018 Cash flows from financing activities Net increase (decrease) in short-term loans payable 16,600 2,000 Proceeds from issuance of commercial papers 9,000 9,000 Redemption of commercial papers (12,000) (9,000) Proceeds from long-term loans payable 101 Repayments of long-term loans payable (20,049) (248) Cash dividends paid (11,501) (11,840) Purchase of treasury shares (13) (17) Other, net (940) (1,240) Net cash provided by (used in) financing activities (18,905) (11,244) Effect of exchange rate change on cash and cash equivalents (4,146) 1,382 Net increase (decrease) in cash and cash equivalents 4,294 (746) Cash and cash equivalents at beginning of period 94,089 98,384 Cash and cash equivalents at end of period 98,384 97,637 14

15 (5) Notes on consolidated financial statements Notes on assumptions for going concern Not applicable Changes in accounting policies (Change in the method of translating revenue and expense accounts of foreign consolidated subsidiaries, etc.) The revenue and expense accounts of foreign consolidated subsidiaries etc. were previously translated into Japanese yen at the spot market exchange rate prevailing at the respective companies balance sheet dates. However, from the fiscal year ended March 31, 2018, the Company has changed the translation method to one using the average exchange rate for the respective period. Under a policy of promoting global expansion and increasing overseas sales, the Company re-evaluated the method of translating revenue and expense accounts of foreign consolidated subsidiaries, etc. because the importance of profit or loss for foreign consolidated subsidiaries, etc. on the consolidated financial statements after the fiscal year ended March 31, 2018, is expected to increase further going forward. As a result, the aforementioned change was made so that the results for foreign consolidated subsidiaries, etc. are more appropriately reflected on the consolidated financial statements. These changes to accounting policy have been applied retrospectively, such that the consolidated financial statements for the fiscal year ended March 31, 2017 reflect the effects of this retrospective application. As a result of this change, in the fiscal year ended March 31, 2017, net sales decreased by 6,513 million yen, operating profit decreased by 1,125 million yen, ordinary profit decreased by 1,197 million yen, profit before income taxes decreased by 1,197 million yen and profit attributable to owners of parent decreased by 879 million yen, compared to before the retrospective application of this change. Also, the retrospective application of this change has caused the cumulative effects on the net assets balance at the beginning of the previous fiscal year. Specifically, the retained earnings balance at the beginning of the previous fiscal year decreased by 2,221 million yen and the foreign currency translation adjustment balance increased by the same amount. 15

16 (Segment information) Fiscal year ended March 31, 2017 (From April 1, 2016 to March 31, 2017) Japan Housing Equipment Business Reportable Segment Global Housing Equipment Business China & Asia Housing Americas & Europe Housing Equipment Business Equipment Business China Asia, Oceania Americas Europe (Millions of yen) Sales For external customers 423,310 61,385 28,676 28,462 3, ,559 Intersegment net sales or transfers 10,903 18,043 15, , ,214 79,428 44,357 28,514 3, ,256 Operating profit (loss) 29,149 15,254 5,558 2,233 (825) 51,369 Reportable Segment New Domain Businesses Green Building Ceramics Materials Business Business Others Elimination or Corporate Consolidated Sales For external customers 12,506 8,975 21, , , ,305 Intersegment net sales or 1,404 1,404 46, ,151 (46,151) transfers 12,506 10,379 22, , ,456 (46,151) 567,305 Operating profit (loss) 1,227 (691) , ,049 (4,603) 47,446 Fiscal year ended March 31, 2018 (From April 1, 2017 to March 31, 2018) Japan Housing Equipment Business Reportable Segment Global Housing Equipment Business China & Asia Housing Americas & Europe Housing Equipment Business Equipment Business China Asia, Oceania Americas Europe (Millions of yen) Sales For external customers 425,609 71,966 31,656 30,784 3, ,604 Intersegment net sales or transfers 12,381 19,367 18, , ,991 91,333 50,017 30,835 3, ,792 Operating profit (loss) 28,669 18,145 6,728 2,530 (1,032) 55,041 Reportable Segment New Domain Businesses Green Building Ceramics Materials Business Business Others Elimination or Corporate Consolidated Sales For external customers 20,030 8,404 28, , , ,301 Intersegment net sales or 1,361 1,361 51, ,599 (51,599) transfers 20,030 9,765 29, , ,900 (51,599) 592,301 Operating profit (loss) 1,744 (440) 1,303 56, ,491 (3,888) 52,602 16

17 (Per-share data) Fiscal year ended March 31, 2017 (From April 1, 2016 to March 31, 2017) Fiscal year ended March 31, 2018 (From April 1, 2017 to March 31, 2018) Net assets per share 1, yen 1, yen Earnings per share yen yen Diluted earnings per share yen yen (Note) Earnings per share and diluted earnings per share have been calculated based on the following data. Earnings per share Fiscal year ended March 31, 2017 (From April 1, 2016 to March 31, 2017) Fiscal year ended March 31, 2018 (From April 1, 2017 to March 31, 2018) Profit attributable to owners of parent (million yen) 32,960 36,798 Amount not attributable to common shareholders (million yen) Profit attributable to owners of parent related to common shares (million yen) Average number of common shares during the period (thousand shares) 32,960 36, , ,187 Diluted earnings per share Adjustment of profit attributable to owners of parent (million yen) Increase in the number of common shares (thousand shares) (Stock options granted by subscription rights to shares) (441) (423) Outline of diluted shares not included in the calculation of diluted earnings per share because there are no dilutive effects. (Significant subsequent events) Not applicable. 17