Consolidated Financial Summary (For the First Quarter Ended June 30, 2017 (IFRS basis))

Transcription

1 Consolidated Financial Summary (For the First Quarter Ended June 30, 2017 (IFRS basis)) July 27, 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: Akihiko Takamatsu Position of the person: General Manager, Corporate Communication Center Tel: Date of the release of quarterly report (schedule): August 9, 2017 Date of the start of dividend payment: - Creates supplemental explanatory materials for quarterly financial summaries: Yes (Amounts rounded to the nearest million yen) 1. Consolidated Financial Highlights for the First Quarter Ended June 30, 2017 (April 1, 2017 through June 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 quarter ended: Million yen % Million yen % Million yen % Million yen % Million yen % Million yen % June 30, , , , , , ,627 - June 30, ,042 (9.1) 12, ,129 (15.0) 7,253 (14.9) 7,224 (13.4) (7,757) - Basic earnings per share Diluted earnings per share First quarter ended: Yen Yen June 30, June 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 11,297 million yen in the first quarter ended June 30, The consolidated result for earnings capacity of the Company's ordinary operations calculated by this method was 13,642 million yen in the first quarter ended June 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 June 30, , , , As of March 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 610, , , , , Note: Revision of the latest consolidated financial forecast: None 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 61,000 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 (PCT Cell Therapy Services, 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): June 30, 2017: March 31, 2017: 208,364,913 shares 208,364,913 shares (b) Number of treasury stock at the end of the term: June 30, 2017: March 31, 2017: 137,665 shares 136,862 shares (c) Average number of shares during the term: April - June 2017: April - June 2016: 208,227,686 shares 208,231,622 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 June 30, 2017 Assets Current assets Cash and cash equivalents 107, ,963 Trade receivables 133, ,439 Inventories 65,182 73,384 Other financial assets 21,460 18,082 Other current assets 4,251 5,176 Total current assets 332, ,044 Non-current assets Property, plant and equipment 186, ,834 Intangible assets 27,486 38,008 Net defined benefit assets 10,001 10,112 Deferred tax assets 11,827 11,720 Investments accounted for using the equity method 8,484 7,371 Other financial assets 17,819 17,571 Other non-current assets 6,173 6,437 Total non-current assets 268, ,053 Total assets 600, ,097 3

4 As of March 31, 2017 As of June 30, 2017 Liabilities Current liabilities Trade payables 80,924 83,999 Bonds and borrowings 27,351 30,303 Accrued expenses 27,251 22,946 Income tax payables 8,680 5,330 Other financial liabilities 22,907 20,586 Other current liabilities 3,787 3,709 Total current liabilities 170, ,873 Non-current liabilities Bonds and borrowings 18,545 28,484 Retirement and severance benefits 15,047 15,106 Provisions 1,368 1,313 Other financial liabilities 14,865 16,457 Other non-current liabilities 3,705 3,831 Total non-current liabilities 53,530 65,191 Total liabilities 224, ,064 Equity Common stock 15,454 15,454 Capital surplus - - Treasury stock, at cost (234) (236) Retained earnings 340, ,235 Accumulated other comprehensive income 13,954 16,138 Total equity attributable to owners of the parent 369, ,591 Non-controlling interests 6,437 6,442 Total equity 376, ,033 Total liabilities and equity 600, ,097 4

5 (2) Condensed Quarterly Consolidated Statement of Income and Condensed Quarterly Consolidated Statement of Comprehensive Income (Condensed Quarterly Consolidated statement of income) ( 2017) 2016 (April 1, June 30, 2016) 2017 (April 1, June 30, 2017) Revenues 125, ,042 Cost of sales (90,780) (112,090) Gross profit 34,262 39,952 Selling, general and administrative expenses (22,965) (26,310) Other income 1,647 1,185 Other expenses (908) (1,203) Operating income 12,036 13,624 Financial income 389 1,029 Financial expenses (3,146) (431) Share of profits of investments accounted for using the equity method Income before income taxes 10,129 15,204 Income taxes (2,876) (3,730) Net income 7,253 11,474 Net income attributable to: Owners of the parent 7,224 11,193 Non-controlling interests Earnings per share attributable to owners of the parent (yen) Basic Diluted - - 5

6 (Condensed Quarterly Consolidated statement of comprehensive income) ( 2017) 2016 (April 1, June 30, 2016) 2017 (April 1, June 30, 2017) Net income 7,253 11,474 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 (817) 257 Remeasurements of defined benefit obligations - - Total items that cannot be reclassified into profit or loss (817) 257 s that can be reclassified into profit or loss Foreign currency translation adjustments (13,870) 1,887 Cash flow hedges 8 8 Share of OCI of investments accounted for using the equity method (331) 1 Total items that can be reclassified into profit or loss (14,193) 1,896 Other comprehensive income (OCI) (15,010) 2,153 Comprehensive income (7,757) 13,627 Comprehensive income attributable to: Owners of the parent (7,326) 13,377 Non-controlling interests (431) 250 6

7 (3) Condensed Quarterly Consolidated Statement of Cash Flows 2016 (April 1, June 30, 2016) 2017 (April 1, June 30, 2017) Cash flows from operating activities Net income 7,253 11,474 Depreciation and amortization 6,719 7,694 Income tax expense 2,876 3,730 Interest and dividend income (388) (384) Interest expenses paid Share of profits of investments accounted for using the equity method (850) (982) (Increase) decrease in trade receivables (3,449) 878 (Increase) decrease in accounts receivables other 582 4,093 (Increase) decrease in inventories (2,062) (6,608) Increase (decrease) in trade payables 6,476 1,487 Increase (decrease) in retirement and severance benefits (50) (122) Other (2,124) (6,731) Subtotal 15,288 14,897 Interest and dividends received Interest paid (203) (250) Income taxes paid (7,268) (6,797) Net cash provided by operating activities 8,276 8,276 Cash flows from investing activities Expenses for property, plant and equipment acquired (7,774) (10,453) Income from sale of property, plant and equipment Proceeds from redemption and sale of investments in securities Purchase of investments in subsidiaries - (8,325) Expenses for investment securities acquired (347) (130) Other (112) (1,668) Net cash provided by (used in) investing activities (8,003) (19,026) Cash flows from financing activities Net increase (decrease) in short-term debt (225) 2,608 Proceeds from long-term debt - 11,697 Payments on long-term debt (1,050) (2,808) Purchase of shares of consolidated subsidiaries from non-controlling interest holders (393) - Dividends paid to stockholders (5,206) (6,247) Dividends paid to non-controlling interests (102) (141) Other (95) (707) Net cash used in financing activities (7,071) 4,402 Effect of exchange rate changes on cash and cash equivalents (6,072) 662 Net increase (decrease) in cash and cash equivalents (12,870) (5,686) Cash and cash equivalents at beginning of year 119, ,649 Cash and cash equivalents at end of year 107, ,963 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 2016 (April 1, 2016 through June 30, 2016) Functional Materials Reportable segment Advanced Components and Systems Total Adjustment (Note) Total Revenue Revenue from outside customers 64,082 60, , ,042 Intersegment revenue 1, ,374 (1,374) - Total 65,121 61, ,416 (1,374) 125,042 Segment profit (loss) 10,673 1,284 11, ,036 Financial income Financial expenses (3,146) Share of profits of investments accounted for using the equity method Income before income taxes ,129 Note: Segment profit adjustments are the amounts eliminated for intersegment transactions (April 1, 2017 through June 30, 2017) Functional Materials Reportable segment Advanced Components and Systems Total Adjustment (Note) Total Revenue Revenue from outside customers 71,184 80, , ,042 Intersegment revenue 1, ,497 (1,497) - Total 72,329 81, ,539 (1,497) 152,042 Segment profit (loss) 11,172 2,469 13,641 (17) 13,624 Financial income ,029 Financial expenses (431) Share of profits of investments accounted for using the equity method Income before income taxes ,204 Note: Segment profit adjustments are the amounts eliminated for intersegment transactions. 8