Summary of Consolidated Financial Results of Sumitomo Osaka Cement Co., Ltd. for the First Half of Fiscal 2019, Ending March 31, 2019 (Japan GAAP)

Transcription

1 Summary of Consolidated Financial Results of Sumitomo Osaka Cement Co., Ltd. for the First Half of Fiscal 2019, Ending March 31, 2019 (Japan GAAP) Company: Sumitomo Osaka Cement Co., Ltd. Fiscal 2018 : April 1, 2017 March 31, 2018 Stock code: 5232 Fiscal 2019 : April 1, 2018 March 31, 2019 URL: November 7, 2018 *Figures are rounded down to the nearest million yen. 1. Consolidated Results for the First Half of Fiscal 2019, Ending March 31, 2019 (April 1, 2018 September 30, 2018) (1) Consolidated Financial Results (Percentage changes are relative to the previous corresponding period) Net Sales Operating Income Ordinary Income Profit attributable to owners of parent Millions of yen % Millions of yen % Millions of yen % Millions of yen % 1H of Fiscal , ,920 (29.7) 7,541 (24.3) 2,359 (65.0) 1H of Fiscal , ,420 (15.7) 9,959 (4.5) 6,748 (15.7) Note: Comprehensive income: 1H of FY2019: 18 million yen ((99.7%)); 1H of FY2018: 5,171 million yen ((35.6%)) 1H of Fiscal H of Fiscal 2018 EPS Yen Diluted EPS Yen Note: The Company executed a 10-for-1 reverse stock split of its common stock on October 1, The Company s net earnings per share is calculated assuming this reverse stock split was executed at the beginning of the previous fiscal year. (2) Consolidated Financial Position Total Assets Net Assets Shareholder's Equity Ratio Millions of yen Millions of yen % 1H of Fiscal , , Fiscal , , (Reference) Total equity: 1H of FY2019: 189,479 million yen; End of FY2018: 202,421 million yen 2.Dividends Dividends per share (Date of Record) First Quarter Second Quarter Third Quarter Year-end Annual Yen Yen Yen Yen Yen Fiscal Fiscal FY2019 (Forecast) Note: Revisions to the most recently published dividend forecast: No The Company executed a 10-for-1 reverse stock split of its common stock on October 1, As a result, the amount of the year-end dividend (forecast) for fiscal 2019 takes into account the effects of this reverse stock split. The year-end dividend (forecast) for fiscal 2019 prior to the reverse stock split is 5.5 yen. 3.Forecast of Consolidated Financial Results for Fiscal 2019 (April 1, 2018 March 31, 2019) Net Sales Operating Income Ordinary Income (Percentage changes are relative to the previous corresponding period) Profit attributable to owners of parent Millions of yen % Millions of yen % Millions of yen % Millions of yen % Yen Fiscal , ,000 (15.7) 17,550 (12.9) 8,550 (41.7) Note: Revisions to the most recently published consolidated financial results forecast: Yes The Company executed a 10-for-1 reverse stock split of its common stock on October 1, As a result, full-year net earnings per share in the consolidated financial results forecast for fiscal 2019 above contains the amount taking into account the effects of this reverse stock split. The Company s net earnings per share in the full-year consolidate financial results forecast for fiscal 2019 is yen when not taking into account this reverse stock split. EPS

2 Consolidated Financial Statements for the First Half of Fiscal 2019 (1) Consolidated Balance Sheets Assets Current assets End of FY2018 (As of March 31, 2018) End of first half of FY2019 (As of September 30, 2018) Cash and deposits 22,204 16,984 Notes and accounts receivable trade 52,595 48,705 Merchandise and finished goods 7,236 7,522 Work in process 2,805 2,782 Raw materials and supplies 12,734 13,100 Short-term loans receivable Other 2,104 2,293 Allowance for doubtful accounts (32) (28) Total current assets 99,831 91,555 Noncurrent assets Property, plant and equipment Buildings and structures 167, ,369 Accumulated depreciation (117,213) (118,525) Buildings and structures, net 50,579 49,843 Machinery, equipment and vehicles 431, ,848 Accumulated depreciation (374,118) (377,183) Machinery, equipment and vehicles, net 57,512 58,665 Land 37,455 37,411 Construction in progress 8,016 5,658 Other 34,936 35,313 Accumulated depreciation (18,968) (19,237) Other, net 15,967 16,076 Total property, plant and equipment 169, ,654 Intangible assets 2,454 2,405 Investments and other assets Investment securities 58,787 56,005 Long-term loans receivable 2,692 2,881 Deferred tax assets 1,191 1,190 Net defined benefit asset Other 5,205 5,499 Allowance for doubtful accounts (137) (134) Total investments and other assets 68,140 65,867 Total noncurrent assets 240, ,927 Total assets 339, ,482

3 Consolidated Financial Statements for the First Half of Fiscal 2019 (1) Consolidated Balance Sheets Liabilities Net assets Current liabilities End of FY2018 (As of March 31, 2018) End of first half of FY2019 (As of September 30, 2018) Notes and accounts payable trade 29,615 28,331 Short-term loans payable 21,326 22,523 Current portion of long-term loans payable 6,503 6,846 Income taxes payable 2,543 2,137 Provision for bonuses 2,312 2,353 Other 12,438 12,759 Total current liabilities 74,740 74,950 Noncurrent liabilities Bonds payable 10,000 10,000 Long-term loans payable 23,977 25,364 Deferred tax liabilities 12,314 11,411 Provision for directors retirement benefits Provision for PCB waste disposal costs Net defined benefit liability 2,819 2,793 Asset retirement obligations 1,055 1,040 Other 10,591 10,481 Total noncurrent liabilities 61,060 61,274 Total liabilities 135, ,225 Shareholders equity Capital stock 41,654 41,654 Capital surplus 29,284 24,559 Retained earnings 107, ,294 Treasury stock (4,871) (10,767) Total shareholders equity 173, ,740 Accumulated other comprehensive income Valuation difference on available-for-sale securities 28,584 26,550 Foreign currency translation adjustment Remeasurements of defined benefit plans (186) (187) Total accumulated other comprehensive income 29,126 26,738 Non-controlling interests 1,736 1,778 Total net assets 204, ,257 Total liabilities and net assets 339, ,482

4 (2) Consolidated Quarterly Profit and Loss Statements Through first half of FY2018 (Apr. 1, 2017 to Sep. 30, 2017) Through first half of FY2019 (Apr. 1, 2018 to Sep. 30, 2018) Net sales 117, ,911 Cost of sales 91,553 97,042 Gross profit 25,942 23,868 Selling, general and administrative expenses 17,521 17,948 Operating income 8,420 5,920 Non-operating income Interest income Dividend income 1,825 1,214 Foreign exchange gains Equity in earnings of affiliates Rent income Other Total non-operating income 2,323 2,451 Non-operating expenses Interest expenses Foreign exchange losses 44 - Other Total non-operating expenses Ordinary income 9,959 7,541 Extraordinary income Gain on sales of noncurrent assets Gain on sales of investment securities Gain on extinguishment of tie-in shares Total extraordinary income Extraordinary loss Loss on retirement of noncurrent assets Loss on sales of noncurrent assets 0 18 Impairment loss 22 2,292 Total extraordinary losses 728 3,154 Income before income taxes and minority interests 9,662 4,425 Income taxes current 2,983 2,007 Income taxes deferred (97) 12 Total income taxes 2,885 2,020 Net income 6,776 2,405 Profit attributable to non-controlling interests Profit attributable to owners of parent 6,748 2,359

5 (3) Consolidated Quarterly Statements of Comprehensive Income Through first half of FY2018 (Apr. 1, 2017 to Sep. 30, 2017) Through first half of FY2019 (Apr. 1, 2018 to Sep. 30, 2018) Net income 6,776 2,405 Other comprehensive income Valuation difference on available-for-sale securities (1,552) (2,034) Foreign currency translation adjustment (125) (352) Remeasurements of defined benefit plans 73 (0) Share of other comprehensive income of associates accounted for using equity method 0 0 Total other comprehensive income (1,604) (2,387) Comprehensive income 5, Comprehensive income attributable to: Comprehensive income attributable to owners of parent 5,143 (28) Comprehensive income attributable to non-controlling interests 28 46

6 (4) Consolidated Quarterly Statements of Cash Flows Cash flows from operating activities Through first half of FY2018 (Apr. 1, 2017 to Sep. 30, 2017) Through first half of FY2019 (Apr. 1, 2018 to Sep. 30, 2018) Income before income taxes and minority interests 9,662 4,425 Depreciation and amortization 8,213 8,975 Impairment loss 22 2,292 Increase (decrease) in allowance for doubtful accounts (20) (6) Interest and dividends income (1,868) (1,238) Interest expenses Foreign exchange losses (gains) (24) (22) Share of (profit) loss of entities accounted for using equity method (109) (248) Loss (gain) on sales of non-current assets (118) (14) Loss (gain) on sales of investment securities (206) (6) Loss (gain) on extinguishment of tie-in shares (106) - Decrease (increase) in notes and accounts receivable trade (634) 3,882 Decrease (increase) in inventories (1,575) (646) Decrease (increase) in notes and accounts receivable trade 1,516 (1,253) Other, net 1,138 (171) Subtotal 16,276 16,342 Interest and dividends income received 1,869 1,241 Interest expenses paid (365) (372) Income taxes paid (3,445) (2,391) Net cash provided by operating activities 14,334 14,819 Cash flows from investing activities Purchase of noncurrent asset (12,216) (9,763) Proceeds from sales of noncurrent assets Purchase of investment securities (1) (2) Proceeds from sales of investment securities Payments of loans receivable (115) (109) Collection of loans receivable Other, net (5) (2) Net cash used in investing activities (11,819) (9,681) Cash flows from financing activities Net increase (decrease) in short-term loan payable 171 1,192 Proceeds from long-term loans payable 3,357 5,246 Repayment of long-term loans payable (4,825) (3,470) Proceeds from sales of treasury stock 0 0 Purchase of treasury stock (18) (10,622) Cash dividends paid (2,029) (2,231) Dividends paid to non-controlling interests (4) (4) Other, net (36) (21) Net cash provided by (used in) financing activities (3,384) (9,910) Effect of exchange rate change on cash and cash equivalents (31) (447) Net increase (decrease) in cash and cash equivalents (901) (5,220) Cash and cash equivalents at beginning of period 26,672 22,072 Increase in cash and cash equivalents resulting from merger with unconsolidated subsidiaries 61 - Cash and cash equivalents at end of period 25,833 16,851

7 (Significant subsequent events) Reverse stock split and change in number of shares per trading unit The Company s Board of Directors discussed a proposal on the reverse stock split of common shares at its meeting on May 10, 2018 to be proposed at the 155th Ordinary General Meeting of Shareholders held on June 28, This proposal was approved at the same meeting of shareholders and executed on October 1, (1) Purpose of reverse stock split and change in number of shares per trading unit All stock exchanges in Japan are promoting measures to standardize the trading unit of common stock of all listed companies in Japan at 100 shares, under the Action Plan for Aggregating Share Trading Units. Taking this into account, the Company decided to change the number of common stock per trading unit from 1,000 to 100 shares, and execute a 10-for-1 reverse stock split of its common stock, making sure not to change the number of voting rights retained by each shareholder. The total number of authorized shares will be changed from the current 1,470,130,000 shares to 130,000,000 shares, taking into account the ratio of total shares outstanding to total authorized shares after this reverse stock split. (2) Details of reverse stock split i. Class of stock subject to the reverse stock split Common stock ii. Reverse stock split method and ratio On October 1, 2018, the Company executed a 10-for-1 reverse stock split of common shares owned by shareholders on the final shareholder registry on September 30, iii. Number of shares reduced as a result of the reverse stock split Total number of shares outstanding prior to the reverse stock split (as of September 30, 2018) Number of shares reduced as a result of the reverse stock split 406,432,175 shares 365,788,958 shares Total number of shares outstanding after the reverse stock split 40,643,217 shares Note: The number of shares reduced as a result of the reverse stock split and the total number of shares outstanding after the reverse stock split represent theoretical values calculated by multiplying the total number of shares outstanding prior to the reverse stock split by the ratio of the reverse stock split. iv. Handling of fractions constituting less than 1 share If a fraction constituting less than 1 share of common stock results from this reverse stock split, the Company will dispose of all such shares following the provisions of Article 235 of the Companies Act and distribute the proceeds of this disposal based on the ratio of the fractional shares. (3) Details of change in number of shares per trading unit The number of shares per trading unit of common stock was changed from 1,000 shares to 100 shares effective October 1, 2018.

8 (5) Segment Sales and Operating Income Information Through first half of FY2018 (Apr. 1, 2017 to Sep. 30, 2017) Through first half of FY2019 (Apr. 1, 2018 to Sep. 30, 2018) Change from same period of previous year Change from same period of previous year (%) Cement 92,624 93, Mineral Resources 5,885 6, Cement-Related products 8,051 8, Optoelectronics 3,490 2,573 (916) (26.3) Advanced Materials 3,590 5,964 2, Battery Materials 1,423 1,168 (254) (17.9) Others 2,430 3, Net Sales 117, ,911 3, Cement 5,714 2,854 (2,860) (50.0) Mineral Resources 1,097 1, Cement-Related products (113) (27.7) Optoelectronics (256) (201) 54 Advanced Materials 616 1, Battery Materials 104 (70) (174) Others (10) (1.5) Adjustment (15) (45.2) Operating Income 8,420 5,920 (2,500) (29.7)