August 1, 2012 Name of Listed Company: SDS Biotech K.K. Exchange: Tokyo Code Number: 4952 URL

Transcription

1 Brief Announcement of Non-consolidated Financial Results for the Second Quarter of the Fiscal Year Ending December 2012 (Based on the Japanese Standards) August 1, 2012 Name of Listed Company: SDS Biotech K.K. Exchange: Tokyo Code Number: 4952 URL Representative: (Title) President & Representative Director (Name) Makoto Yasuda (Title) Contact Official: Director and Head of the Corporate Service Division Scheduled Date for Filing the Quarterly Report: August 8, 2012 Materials Prepared for Supplemental Explanation of Quarterly Results: Not applicable Quarterly Results Briefing Session to Be Held: Applicable (For institutional investors) (Name) Junichi Takahashi TEL Scheduled Date of Commencement of Distribution: September 3, 2012 (Fractions less than one million yen being rounded down) 1. Results for the Second Quarter of the Fiscal Year Ending December 2012 (January 1, 2012 through June 30, 2012) (1) Operating Results (Accumulated total) (Percentage figures show change from the same quarter in the previous year.) Net income for the Net sales Operating income Ordinary income quarter yen % yen % yen % yen % Second quarter of the fiscal year ending December , Second quarter of the fiscal year ended December , Net income per share for the quarter Diluted net income per share for the quarter Yen Yen Second quarter of the fiscal year ending December Second quarter of the fiscal year ended December (2) Financial Conditions Total assets Net assets Capital adequacy ratio Net assets per share yen yen % Yen Second quarter of the fiscal year ending December ,048 3, Fiscal year ended December ,093 3, (Reference information) Second quarter of the fiscal year Fiscal year ended Equity capital ending December 2012: 3,736 million yen December 2011: 3,760 million yen - 1 -

2 2. Dividends Annual dividends At the end of the first quarter At the end of the second quarter At the end of the third quarter At the end of the fiscal year Total Yen Yen Yen Yen Yen Fiscal year ended December Fiscal year ending December Fiscal year ending December 2012 (Estimate) (Note) Correction to the estimated amount of dividends in the quarter under review: Not applicable 3. Earnings Forecasts for the Fiscal Year Ending December 2012 (January 1, 2012 through December 31, 2012) (Percentage figures show change from the same period in the previous year.) Net income per Net sales Operating income Ordinary income Net income share for the period yen % yen % yen % yen % Yen Full year 10, (Note) Correction to the estimated results in the quarter under review: Not applicable - 2 -

3 [Qualitative Information Concerning Results for the Quarter under Review] 1. Qualitative Information Concerning Operating Results Although we have only one segment, the agrochemical business segment, we state our results by item in order to show our business trends. (Fungicide) Net sales for the accumulated period up to the second quarter of the fiscal year under review were 1,878 million yen, down 144 million yen or 7.1% from the same quarter in the previous year. This was mainly caused by a decline in sales of Daconil products (technical and formulation) for overseas markets due to intensifying price competition with generic Daconil products. Meanwhile, shipments in Japan grew steadily. (Paddy herbicide) Net sales for the accumulated period up to the second quarter of the fiscal year under review were 1,567 million yen, up 46 million yen or 3.1% from the same quarter in the previous year. This was mainly caused by an increase in shipments of Benzobicyclon products and Cafenstrole technical products for Japan. (Greenery-related products) Net sales for the accumulated period up to the second quarter of the fiscal year under review were 803 million yen, down 128 million yen or 13.8% from the same quarter in the previous year. This was mainly due to a decline in shipments of plant growth regulators for tobacco caused by a decrease in crop acreage of tobacco in Japan. (Insecticide) Net sales for the accumulated period up to the second quarter of the fiscal year under review were 278 million yen, up 21 million yen or 8.5% from the same quarter in the previous year. This was mainly due to an increase in shipments of nematicide. (Others) Net sales for the accumulated period up to the second quarter of the fiscal year under review were 99 million yen, up 4 million yen or 5.0% from the same quarter in the previous year

4 2. Qualitative Information Concerning Financial Conditions (1) Assets, Liabilities and Net Assets Total assets as of the end of the first half of fiscal 2012 under review (June 30, 2012) were 11,048 million yen, down 1,044 million yen from the end of the previous fiscal year (December 31, 2011). Current assets were 7,715 million yen, down 878 million yen from the end of the previous year. This was mainly caused by a decrease of 997 million yen in accounts receivable-trade, a decrease of 327 million yen in accounts receivable-other and an increase of 315 million yen in inventories. Noncurrent assets were 3,333 million yen, down 165 million yen from the end of the previous year. This was mainly due to recording a depreciation of property, plants, and equipment of 104 million yen, depreciation of intangible assets of 48 million yen, and amortization of long-term prepaid expenses of 40 million yen. Current liabilities were 4,313 million yen, down 866 million yen from the end of the previous year. This was mainly caused by a decline of 253 million yen in accounts payable-trade, a decrease of 141 million yen in short-term loans payable, a decrease of 338 million yen in current portion of long-term loans payable and a decrease of 151 million yen in income taxes payable. Noncurrent liabilities were 2,999 million yen, down 154 million yen from the end of the previous year. This was mainly caused by a decrease of 99 million yen in long-term loans payable. Net assets were 3,736 million yen, down 24 million yen from the end of the previous year. This was mainly due to a decrease of 78 million yen in dividends from surplus and an increase of 53 million yen in net income for the quarter. (2) Cash flow Cash and cash equivalents (hereinafter referred to as funds ) as the end of the accumulated period up to the second quarter under review were 821 million yen, up 61 million yen from the end of the previous year. This was owing to income from notes and accounts receivable-trade, in spite of factors such as a payment of notes and accounts payable-trade, a repayment of short-term loans payable and a repayment of long-term loans payable. The main contributing factors are as follows. (Net cash provided by (used in) operating activities) Funds received as a result of operating activities were 805 million yen. Compared with the same period in the previous year, funds decreased 659 million yen. This was because of factors including an increase of 315 million yen in inventories (a decrease of 90 million yen in the same period in the previous year), a decrease of 191 million yen in notes and accounts payable-trade (a decrease of 947 million yen in the same period in the previous year) and a decrease of 1,318 million yen in notes and accounts receivable-trade (a decrease of 2,361 million yen in the same period in the previous year). (Net cash provided by (used in) investing activities) Funds used in investing activities were 83 million yen. Funds used were down 35 million yen from the same period in the previous year. The main contributing factor was a payment for acquisition of property, plant and equipment and software. (Net cash provided by (used in) financing activities) Funds used in financial activities were 656 million yen. Compared with the same period in the previous year, funds used in financial activities decreased 588 million yen. This was mainly due to funding by long-term loans payable of 500 million yen (1,400 million yen in the same period in the previous year), a decrease of 141 million yen in short-term loans payable (1,818 million yen in the same period in the previous year) and a repayment of long-term loans payable of 937 million yen (755 million yen in the same period in the previous year). 3. Qualitative Information Concerning Earnings Forecast We have not revised the forecasts for the financial results for the fiscal year ending December 31, 2012 that were announced at the release of financial results for the fiscal year ended December 2011 (February 1, 2012)

5 [Quarterly Financial Statements] (1) Quarterly Balance Sheets Previous fiscal year (December 31, 2011) (Thousands of yen) Second quarter under review (June 30, 2012) Assets Current assets Cash and deposits 760, ,349 Notes receivable-trade 2,227 8,454 Accounts receivable-trade 3,504,545 2,507,392 Merchandise and finished goods 3,186,310 3,665,427 Work in process 7,846 15,994 Raw materials and supplies 421, ,153 Prepaid expenses 120, ,331 Deferred tax assets 134, ,298 Accounts receivable-other 444, ,690 Other 12,884 20,102 Total of current assets 8,594,040 7,715,194 Noncurrent assets Property, plant and equipment Buildings, net 968, ,154 Structures, net 101,432 94,503 Machinery and equipment, net 247, ,682 Vehicles, net 5,099 4,548 Tools, furniture and fixtures, net 84,537 65,860 Land 891, ,545 Total of property, plant and equipment 2,298,711 2,189,294 Intangible assets Patent right 61,770 51,458 Software 200, ,866 Other 6,446 4,051 Total of intangible assets 269, ,375 Investments and other assets Investment securities 7,320 7,456 Stocks of subsidiaries and affiliates 80,000 80,000 Long-term prepaid expenses 529, ,344 Deferred tax assets 249, ,974 Other 99,761 99,030 Allowance for doubtful accounts (34,838) (34,838) Total of investments and other assets 931, ,967 Total of noncurrent assets 3,499,591 3,333,638 Total assets 12,093,632 11,048,

6 Previous fiscal year (December 31, 2011) (Thousands of yen) Second quarter under review (June 30, 2012) Liabilities Current liabilities Accounts payable-trade 1,086, ,065 Short-term loans payable 1,424,703 1,282,864 Current portion of long-term loans payable 1,444,000 1,106,000 Accounts payable-other 544, ,917 Accrued expenses 424, ,169 Income taxes payable 192,063 40,875 Provision for bonuses 37,149 35,120 Deposits received 16,367 39,741 Other 8,531 1,338 Total of current liabilities 5,179,279 4,313,093 Noncurrent liabilities Long-term loans payable 2,473,000 2,374,000 Provision for retirement benefits 618, ,692 Asset retirement obligations 8,920 8,920 Other 53,154 53,915 Total of noncurrent liabilities 3,153,834 2,999,528 Total liabilities 8,333,114 7,312,621 Net assets Shareholders' equity Capital stock 805, ,845 Capital surplus 73,029 73,029 Retained earnings 2,881,492 2,857,081 Treasury stock (46) (46) Total shareholders' equity 3,760,321 3,735,910 Valuation and translation adjustments Valuation difference on available-for-sale securities Total valuation and translation adjustments Total net assets 3,760,518 3,736,211 Total liabilities and net assets 12,093,632 11,048,

7 (2) Quarterly statements of income (Accumulated period up to the second quarter) (Thousands of yen) Accumulated period up to the second quarter of the previous fiscal year (January 1, 2011 through June 30, 2011) Accumulated period up to the second quarter under review (January 1, 2012 through June 30, 2012) Net sales 4,826,548 4,627,405 Cost of sales 3,255,516 3,127,893 Gross profit 1,571,031 1,499,511 Selling, general and administrative expenses 1,404,145 1,377,914 Operating income 166, ,597 Non-operating income Interest income Dividends income 12,330 16,198 Other Total of non-operating income 12,556 16,777 Non-operating expenses Interest expenses 43,076 35,268 Foreign exchange losses 7, Other 8, Total of non-operating expenses 58,455 35,775 Ordinary income 120, ,598 Extraordinary loss Loss on retirement of noncurrent assets ,976 Loss on adjustment for changes of accounting standard for asset retirement obligations 8,495 Total of extraordinary loss 9,207 17,976 Net income before taxes for the quarter 111,779 84,622 Income taxes 39,122 30,895 Net income for the quarter 72,656 53,

8 (3) Quarterly Statements of Cash Flows Accumulated period up to the second quarter of the previous fiscal year (January 1, 2011 through June 30, 2011) (Thousands of yen) Accumulated period up to the second quarter under review (January 1, 2012 through June 30, 2012) Net cash provided by (used in) operating activities Net income before taxes for the quarter 111,779 84,622 Depreciation and amortization 162, ,211 Amortization of long-term prepaid expenses 90,000 40,344 Increase (decrease) in provision for bonuses (846) (2,028) Increase (decrease) in provision for retirement benefits (52,729) (56,066) Interest and dividends income (12,556) (16,404) Interest expenses 43,076 35,268 Foreign exchange losses (gains) (2,947) 3,687 Loss on adjustment for changes of accounting standard for asset retirement obligations 8,495 Loss on retirement of noncurrent assets ,976 Decrease (increase) in notes and accounts receivable-trade 2,361,513 1,318,503 Decrease (increase) in inventories 90,174 (315,334) Increase (decrease) in notes and accounts payable-trade (947,093) (191,247) Increase (decrease) in accrued expenses (121,071) (10,281) Increase (decrease) in deposits received (2,117) 23,373 Decrease (increase) in other assets (104,422) (70,700) Increase (decrease) in other liabilities (3,113) (6,435) Subtotal 1,621,485 1,008,488 Interest and dividends income received 12,486 16,341 Interest expenses paid (45,038) (37,743) Income taxes refund 1,508 Income taxes paid (126,119) (181,894) Net cash provided by (used in) operating activities 1,464, ,192 Net cash provided by (used in) investing activities Purchase of property, plant and equipment (74,359) (64,360) Purchase of intangible assets (44,430) (19,120) Other 145 Net cash provided by (used in) investing activities (118,790) (83,335) Net cash provided by (used in) financing activities Net increase (decrease) in short-term loans payable (1,818,014) (141,838) Proceeds from long-term loans payable 1,400, ,000 Repayment of long-term loans payable (755,000) (937,000) Purchase of treasury stock (24) Cash dividends paid (72,150) (78,041) Net cash provided by (used in) financing activities (1,245,188) (656,880) Effect of exchange rate change on cash and cash equivalents 2,947 (3,687) Net increase (decrease) in cash and cash equivalents 103,290 61,288 Cash and cash equivalents at beginning of period 659, ,060 Cash and cash equivalents at the end of the quarter 762, ,