Summary of Consolidated Financial Statements for the First Half Ended
June 30, 2020 [IFRS]
August 5, 2020
Company name: Lion Corporation
Listed stock exchanges: Tokyo Stock Exchange
Code: 4912
URL: http://www.lion.co.jp/
Representative: Masazumi Kikukawa, Representative Director, President and Executive Officer
Contact: Akihiko Takeo, Director of Finance Department
Telephone: +81-3-3621-6211
Scheduled date of filing of quarterly financial report: August 7 2020
Start date of payment of dividend: September 4, 2020
Supplementary materials prepared for quarterly results: Yes
Quarterly results information meeting held: Yes (for institutional investors, analysts, etc.)
Figures in this and subsequent tables are truncated at the nearest million.
1. Consolidated Results for the First Half Ended June 30, 2020 (January 1, 2020 - June 30, 2020)
- Consolidated Results (cumulative)
(Percentage figures denote year-on-year change)
Net sales | Operating profit | Profit before tax | ||||||||
Millions of yen | % | Millions of yen | % | Millions of yen | % | |||||
Six | months | ended | 169,111 | 1.1 | 25,968 | 101.5 | 27,041 | 98.3 | ||
June 30, 2020 | ||||||||||
Six | months | ended | 167,334 | (0.7) | 12,889 | (27.9) | 13,638 | (26.4) | ||
June 30, 2019 | ||||||||||
Profit for the period | Total comprehensive | |||||||||
Profit for the period | attributable to | |||||||||
income for the period | ||||||||||
owners of the parent | ||||||||||
Millions of yen | % | Millions of yen | % | Millions of yen | % | |||||
Six | months | ended | 19,557 | 99.1 | 18,623 | 114.3 | 14,923 | 47.4 | ||
June 30, 2020 | ||||||||||
Six | months | ended | 9,824 | (42.0) | 8,689 | (37.6) | 10,127 | (31.1) | ||
June 30, 2019 |
Note: Core operating income for the six months ended June 30, 2020 was ¥16,372 million (up 31.4% year on year). Core operating income for the six months ended June 30, 2019 was ¥12,459 million (down 0.7% year on year).
Core operating income is an earnings indicator the Company uses to measure regular business performance and is calculated by subtracting selling, general and administrative expenses from gross profit.
Basic earnings per share | Diluted earnings per share | ||||||||||||
Yen | Yen | ||||||||||||
Six months ended June | 64.06 | 63.98 | |||||||||||
30, 2020 | |||||||||||||
Six months ended June | 29.89 | 29.86 | |||||||||||
30, 2019 | |||||||||||||
(2) Consolidated Financial Position | |||||||||||||
Equity | Ratio of equity | ||||||||||||
attributable to | |||||||||||||
Total assets | Total equity | attributable to | |||||||||||
owners of the | |||||||||||||
owners of the | |||||||||||||
parent to total | |||||||||||||
parent | |||||||||||||
assets | |||||||||||||
Millions of yen | Millions of yen | Millions of yen | % | ||||||||||
Six | months | ||||||||||||
ended | June | 390,667 | 232,145 | 219,826 | 56.3 | ||||||||
30, 2020 | |||||||||||||
Year | ended | ||||||||||||
December 31, | 380,701 | 221,201 | 208,421 | 54.7 | |||||||||
2019 | |||||||||||||
2. Dividends | |||||||||||||
Cash dividends per share (Yen) | |||||||||||||
First | Second | Third | Year-End | Total | |||||||||
Quarter | Quarter | Quarter | |||||||||||
Fiscal 2019 | - | 10.00 | - | 11.00 | 21.00 | ||||||||
Fiscal 2020 | - | 11.00 | |||||||||||
Fiscal 2020 (forecast) | - | 11.00 | 22.00 |
Note: Changes from the most recently published forecast of dividends: No
3. Forecast of Consolidated Financial Results for the Fiscal Year Ending December 31, 2020 (January 1, 2020 - December 31, 2020)
(Percentage figures denote year-on-year change)
Profit for the period | Basic | ||||||
Net sales | Operating profit | attributable to owners of | earnings | ||||
the parent | per share | ||||||
Millions of yen | % | Millions of yen | % | Millions of yen | % | Yen | |
Fiscal | 355,000 | 2.2 | 39,500 | 32.4 | 27,000 | 31.3 | 92.88 |
2020 | |||||||
Notes: 1. Core operating income forecast: Fiscal 2020: ¥30,500 million
2. Changes from the most recently published financial results forecast: No
Notes
(1) Significant Change in Scope of Consolidation during Period: No
(2) Changes in accounting principles, procedures and presentation methods in connection with the
preparation of quarterly consolidated financial statements: | |
a. Changes in accounting standards required under IFRS: Yes | |
b. Other changes: No | |
c. Changes in accounting estimates: No | |
(3) Number of outstanding shares (common stock) | |
a. Number of outstanding shares on balance sheet dates (including treasury stocks): | |
As of June 30, 2020: | 299,115,346 shares |
As of December 31, 2019: | 299,115,346 shares |
b. Number of treasury stocks on balance sheet date: | |
As of June 30, 2020: | 8,406,191 shares |
As of December 31, 2019: | 8,405,440 shares |
c. Average shares outstanding over period (cumulative; consolidated) | |
Six months ended June 30, 2020: | 290,709,448 shares |
Six months ended June 30, 2019: | 290,685,703 shares |
* This report is not subject to review by a certified public accountant or external auditor.
* Appropriate use of results forecasts; other special items
The forecasts and projected operating results contained in this report are based on information available at the time of preparation and thus involve inherent risks and uncertainties, including those related to economic conditions, the competitive environment and exchange rate fluctuations. Accordingly, readers are cautioned that actual results may differ materially from those projected as a result of a variety of factors. For information on forecasts of operating results, see 1. Qualitative Information Concerning the Results of Operations for the First Half of the Current Fiscal Year (3) Forecast of Consolidated Financial Results on page 8.
Lion Corporation (Code 4912): Consolidated Financial Statements | ||
for the First Half Ended June 30, 2020 | ||
Contents | ||
1. Qualitative Information Concerning the Results of Operations for the First Half of the Current | ||
Fiscal Year ----------------------------------------------------------------------------------------------------------- | 2 | |
(1) | Consolidated Performance -------------------------------------------------------------------------------------- | 2 |
(2) | Financial Status ---------------------------------------------------------------------------------------------------- | 7 |
(3) | Forecast of Consolidated Financial Results ---------------------------------------------------------------- | 8 |
2. Condensed Consolidated Financial Statements and Notes ---------------------------------------------- | 9 | |
(1) | Condensed Consolidated Statement of Financial Position ---------------------------------------------- | 9 |
(2) | Condensed Consolidated Statement of Income and Statement of Comprehensive Income --- | 11 |
(3) | Condensed Consolidated Statement of Changes in Equity --------------------------------------------- | 13 |
(4) | Notes to Condensed Consolidated Financial Statements ----------------------------------------------- | 15 |
Notes relating to the assumption of a going concern ---------------------------------------------------------------------------- | 15 | |
Changes in Accounting Principles ---------------------------------------------------------------------------------------------------- | 15 | |
Segment Information --------------------------------------------------------------------------------------------------------------------- | 16 |
1
Lion Corporation (Code 4912): Consolidated Financial Statements for the First Half Ended June 30, 2020
1. Qualitative Information Concerning the Results of Operations for the First Half of the Current Fiscal Year
- Consolidated Performance
Consolidated results for the first half of fiscal 2020 (January 1, 2020-June 30, 2020) are as follows. Net sales amounted to ¥169,111 million, a year-on-year increase of 1.1% (or 2.0% at constant currency excluding exchange rate fluctuations). Core operating income came to ¥16,372 million, up 31.4% compared with the same period of the previous fiscal year, and operating profit was ¥25,968 million, up 101.5% year on year. Profit for the period attributable to owners of parent totaled ¥18,623 million, up114.3 % compared with the same period of the previous fiscal year.
Lion is advancing measures based on the basic strategies of its medium-term management plan, the LION Value Evolution Plan (LIVE Plan). These basic strategies are "Expand and Evolve Our Business Domains through New Value Creation," "Accelerate Growth in Overseas Businesses through Glocalization," "Reinforce Our Management Base through Business Structure Reform" and "Create Dynamism to Foster Innovative Change."
In the first half of fiscal 2020, the spread of the novel coronavirus impacted Lion's domestic and overseas businesses. To meet its social responsibility, the Lion Group strived to maintain its product supply while making every effort to prevent the spread of the virus and ensure the safety of its employees.
In its domestic operations, Lion introduced new, high-value-added products in its mainstay brands and worked to cultivate markets for these products through efficient marketing initiatives. In its overseas operations, in addition to efforts to increase profitability in the home care field, which includes such products as laundry detergents, the Group sought to expand its business in the personal care field, which includes oral care and beauty care products.
In addition, as announced on February 28, 2020, effective on that date Lion sold the land on which its head office is located.
Consolidated Results | (Millions of yen) | ||||||
Six months ended | Ratio to | Six months ended | Ratio to | Change | Change | ||
June 30, 2020 | net sales | June 30, 2019 | net sales | (%) | |||
Net sales | 169,111 | 167,334 | 1,777 | 1.1% | |||
Core operating | 16,372 | 9.7% | 12,459 | 7.4% | 3,913 | 31.4% | |
income | |||||||
Operating profit | 25,968 | 15.4% | 12,889 | 7.7% | 13,079 | 101.5% | |
Profit for the period | |||||||
attributable to owners | 18,623 | 11.0% | 8,689 | 5.2% | 9.933 | 114.3% | |
of the parent |
Note: Core operating income is an earnings indicator the Company uses to measure regular business performance by subtracting selling, general and administrative expenses from gross profit.
2
Lion Corporation (Code 4912): Consolidated Financial Statements for the First Half Ended June 30, 2020
Results by Business | (Millions of yen) | ||||||||||
Net sales | Segment profit (core operating income) | ||||||||||
Six months | Six months | Change | Six months | Six months | Change | ||||||
ended June | ended June | Change | ended June | ended June | Change | ||||||
(%) | (%) | ||||||||||
30, 2020 | 30, 2019 | 30, 2020 | 30, 2019 | ||||||||
Consumer | 115,737 | 110,273 | 5,463 | 5.0% | 11,768 | 7,755 | 4,013 | 51.7% | |||
Products | |||||||||||
Industrial | 27,124 | 27,008 | 115 | 0.4% | 1,040 | 779 | 260 | 33.4% | |||
Products | |||||||||||
Overseas | 49,687 | 51,474 | (1,787) | (3.5%) | 3,311 | 3,669 | (357) | (9.8%) | |||
Other | 14,580 | 15,574 | (994) | (6.4%) | 895 | 570 | 324 | 56.9% | |||
Subtotal | 207,128 | 204,331 | 2,796 | 1.4% | 17,015 | 12,775 | 4,240 | 33.2% | |||
Adjustment | (38,017) | (36,997) | (1,019) | ― | (643) | (316) | (326) | - | |||
Total | 169,111 | 167,334 | 1,777 | 1.1% | 16,372 | 12,459 | 3,913 | 31.4% |
Results by business segment are as follows.
Consumer Products Business
The Consumer Products Business segment comprises the Oral Care Products, Beauty Care Products, Fabric Care Products, Living Care Products, Pharmaceutical Products and Other Products businesses. Segment net sales increased 5.0% compared with the same period of the previous fiscal year. Segment profit increased 51.7%.
(Millions of yen)
Six months ended | Ratio to net | Six months ended | Ratio to net | Change | Change (%) | |
June 30, 2020 | sales | June 30, 2019 | sales | |||
Net sales | 115,737 | 110,273 | 5,463 | 5.0% | ||
Segment profit | 11,768 | 10.2% | 7,755 | 7.0% | 4,013 | 51.7% |
Note: Net sales include internal sales within and among segments, which amounted to ¥7,627 million in the first half of fiscal 2020 and ¥7,379 million in the first half of fiscal 2019.
Net Sales by Product Segment | (Millions of yen) | |||||
Six months ended | Six months ended | Change | Change | |||
June 30, 2020 | June 30, 2019 | (%) | ||||
Oral Care Products | 30,647 | 29,859 | 788 | 2.6% | ||
Beauty Care Products | 16,182 | 11,017 | 5,165 | 46.9% | ||
Fabric Care Products | 26,914 | 28,622 | (1,708) | (6.0%) | ||
Living Care Products | 11,955 | 9,095 | 2,859 | 31.4% | ||
Pharmaceutical Products | 10,908 | 12,060 | (1,151) | (9.5%) | ||
Other Products | 19,128 | 19,618 | (489) | (2.5%) |
3
Lion Corporation (Code 4912): Consolidated Financial Statements for the First Half Ended June 30, 2020
Oral Care Products
In toothpastes, SYSTEMA Haguki (the Gums) Plus Premium Toothpaste, released in 2019, contributed to sales, and sales of the SYSTEMA EX Toothpaste series, including the newly released SYSTEMA EX W Toothpaste, which effectively cleans away dullness due to staining, were strong. Overall sales increased year on year.
In toothbrushes, CLINICA Advantage NEXT STAGE Toothbrush and NONIO Toothbrush, released in 2019, contributed to sales, but sales of the SYSTEMA Toothbrush fell year on year. Overall sales edged down from the same period of the previous fiscal year.
In dental rinses, sales of NONIO Mouthwash were favorable. Overall sales increased year on year.
Beauty Care Products
In hand soaps, sales of KireiKirei Medicated Foaming Hand Soap increased substantially year on year, and the newly released KireiKirei Medicated Hand Conditioning Soap, which not only effectively disinfects, but creates a moisture barrier to protect the skin, received favorable consumer reviews. Overall sales increased substantially year on year.
In body washes, sales of hadakara Body Soap were steady, and overall sales increased year on year.
In antiperspirants and deodorants, new Ban Sweat-BlockingPlatinum Roll-On, featuring a new formula with a high-adhesion ingredient (sodium sulfate) that resists friction and adheres effectively to the skin, received favorable consumer reviews, but sales of Ban Sweat-BlockingFoot Gel fell year on year. Overall sales decreased year on year.
Fabric Care Products
In fabric softeners, sales of mainstay SOFLAN Premium Deodorizer and SOFLAN Aroma Rich fell year on year due to intensifying competition. Overall sales were down year on year.
In laundry detergents, super-concentrated liquid laundry detergent TOP SUPER NANOX For Odors, released in 2019, received favorable consumer reviews, but sales of liquid laundry detergent TOP Clear Liquid fell year on year. Overall sales decreased year on year.
Living Care Products
In dishwashing detergents, sales of CHARMY Magica and CHARMY Crysta for dishwashers were strong. Overall sales increased substantially year on year.
In household cleaners, sales of bath detergent LOOK Plus Bath Cleansing, which saw the addition of a new product formulated with silver ions, doubled from the same period of the previous fiscal year, and sales of bathroom fungicide LOOK Plus Bath Antimold Fogger were favorable. Overall sales increased significantly year on year.
4
Lion Corporation (Code 4912): Consolidated Financial Statements for the First Half Ended June 30, 2020
Pharmaceutical Products
In antipyretic analgesics, sales of BUFFERIN A and BUFFERIN PREMIUM were steady, and overall sales rose year on year.
In eye drops, sales of Smile 40 Premium DX and Smile 40 Mediclear DX were strong, and overall sales were up year on year.
In dermatologic agents, the new Method series, which makes it easy for itchiness sufferers to choose the right product for their specific symptoms and area affected, received favorable consumer reviews, and overall sales increased significantly year on year.
Sales of acne medicines and cooling sheets for feet decreased year on year, reflecting a decrease in overseas visitors to Japan.
Other Products
In direct-to-consumer sales products, sales of Nice rim essence Lactoferrin decreased from the same period of the previous year, and overall sales were down year on year.
In pet supplies, sales of Nioi wo Toru Suna (Deodorizing Cat Litter) were steady, and sales of oral care products were firm. Overall sales were up year on year.
5
Lion Corporation (Code 4912): Consolidated Financial Statements for the First Half Ended June 30, 2020
Industrial Products Business
The Industrial Products Business segment includes the Automotive, Electrical and Electronics, and Detergents for Institutional Use Products fields. These businesses handle products that include anti-sticking agents for tires, electro-conductive carbon for secondary batteries, and detergents for institutional and kitchen use, respectively. Segment net sales increased 0.4% compared with the previous fiscal year. Segment profit increased 33.4%.
(Millions of yen)
Six months ended | Ratio to | Six months ended | Ratio to net | Change | Change (%) | |
June 30, 2020 | net sales | June 30, 2019 | sales | |||
Net sales | 27,124 | 27,008 | 115 | 0.4% | ||
Segment profit | 1,040 | 3.8% | 779 | 2.9% | 260 | 33.4% |
Note: Net sales include internal sales within and among segments, which amounted to ¥11,925 million in the first half of fiscal 2020 and ¥10,981 million in the first half of fiscal 2019.
In the Automotive field, sales of anti-sticking agents for tires and carbon for auto parts decreased year on year, and overall sales decreased year on year.
In the Electrical and Electronics field, demand for performance materials and electroconductive resins decreased, and overall sales were down on year.
In the Detergents for Institutional Use Products field, sales of dishwashing detergents for dishwashers were down year on year, but sales of alcohol sanitizers for kitchens and hand soaps increased substantially year on year. Overall sales increased year on year.
Overseas Business
The Overseas Business segment comprises business operations located in Southeast Asia, including Thailand and Malaysia, and Northeast Asia, including South Korea and China. Segment net sales decreased 3.5% year on year (or 0.1% at constant currency excluding exchange rate fluctuations). Segment profit decreased 9.8% year on year.
(Millions of yen)
Six months ended | Ratio to net | Six months ended | Ratio to net | Change | Change | ||
June 30, 2020 | sales | June 30, 2019 | sales | (%) | |||
Net sales | 49,687 | 51,474 | (1,787) | (3.5%) | |||
Segment profit | 3,311 | 6.7% | 3,669 | 7.1% | (357) | (9.8%) | |
Note: Net sales | include internal sales | within and | among segments, | which amounted to ¥5,379 million | |||
in the first half of fiscal 2020 and ¥4,760 million in the first half of fiscal 2019. |
Net Sales by Region | (Millions of yen) | ||||
Six months ended | Six months ended | Change | Change | ||
June 30, 2020 | June 30, 2019 | (%) | |||
Southeast Asia | 32,591 | 34,569 | (1,978) | (5.7%) | |
Northeast Asia | 17,095 | 16,904 | 190 | 1.1% |
6
Lion Corporation (Code 4912): Consolidated Financial Statements for the First Half Ended June 30, 2020
Net Sales by Region
In Southeast Asia, overall sales were down 5.7% year on year.
In Thailand, sales of hand soaps were strong, but sales of laundry detergents decreased year on year. Overall sales after yen conversions were down year on year.
In Malaysia, sales of laundry detergents were down year on year, reflecting market contraction. Overall sales after yen conversions were down year on year.
In Northeast Asia, overall sales were up 1.1% year on year.
In South Korea, sales of hand soaps increased substantially year on year, but sales of laundry detergents and dishwashing detergents were down year on year. Overall sales after yen conversions were down year on year.
In China, sales of SYSTEMA toothbrushes were favorable, and sales of hand soaps and products imported from Japan increased substantially. Overall sales after yen conversions were up substantially year on year.
Other (Construction Contracting Business, etc.) | (Millions of yen) | ||||||
Six months ended | Ratio to net | Six months ended | Ratio to net | Change | Change | ||
June 30, 2020 | sales | June 30, 2019 | sales | (%) | |||
Net sales | 14,580 | 15,574 | (994) | (6.4%) | |||
Segment profit | 895 | 6.1% | 570 | 3.7% | 324 | 56.9% |
Note: Net sales include internal sales within and among segments, which amounted to ¥13,119 million in the first half of fiscal 2020 and ¥13,924 million in the first half of fiscal 2019.
- Financial Status
Status of Consolidated Assets, Liabilities and Equity
Six months ended | Six months ended | Change | |
June 30, 2020 | June 30, 2019 | ||
Total assets (millions of yen) | 390,667 | 380,701 | 9,965 |
Total equity (millions of yen) | 232,145 | 221,201 | 10,943 |
Ratio of equity attributable to owners | 56.3 | 54.7 | 1.6 |
of the parent to total assets (%) |
Total assets increased ¥9,965 million compared with the previous consolidated fiscal year-end to ¥390,667 million. This was primarily attributable to an increase in property, plant and equipment. Equity increased ¥10,943 million to ¥232,145. The ratio of equity attributable to owners of the parent to total assets stood at 56.3%.
7
Lion Corporation (Code 4912): Consolidated Financial Statements for the First Half Ended June 30, 2020
- Forecast of Consolidated Financial Results
Lion has made no revisions to the consolidated financial results forecasts released on July 31, 2020 for the full fiscal year.
Assumptions Underlying the Forecast of Consolidated Financial Results for Fiscal 2020
For the second half of the year, Lion utilized the following foreign exchange rates in the calculation of the aforementioned forecasts:
¥108 = US$1.00 ¥3.5 = 1.00 baht
8
Lion Corporation (Code 4912): Consolidated Financial Statements for the First Half Ended June 30, 2020
2. Condensed Consolidated Financial Statements and Notes
(1) Condensed Consolidated Statement of Financial Position
(Millions of yen)
December 31, 2019 | June 30, 2020 |
Assets
Current assets
Cash and cash equivalents
Trade and other receivables
Inventories
Other financial assets
Other current assets
Total current assets
Non-current assets
Property, plant and equipment
Goodwill
Intangible assets
Right-of-use assets
Investments accounted for using the equity method
Deferred tax assets
Retirement benefit assets
Other financial assets
Other non-current assets
Total non-current assets
Total assets
110,406 | 109,785 |
61,759 | 53,001 |
43,555 | 49,970 |
4,024 | 7,590 |
2,750 | 3,088 |
222,497 | 223,437 |
90,903 | 99,250 |
182 | 182 |
13,485 | 14,308 |
5,940 | 5,692 |
9,165 | 9,567 |
2,577 | 4,129 |
9,597 | 9,129 |
25,517 | 24,068 |
833 | 900 |
158,204 | 167,230 |
380,701 | 390,667 |
9
Lion Corporation (Code 4912): Consolidated Financial Statements for the First Half Ended June 30, 2020
(Millions of yen) | |||
December 31, 2019 | June 30, 2020 | ||
Liabilities and equity | |||
Liabilities | |||
Current liabilities | |||
Trade and other payables | 116,268 | 113,135 | |
Borrowings | 1,404 | 1,391 | |
Income tax payables | 6,568 | 8,561 | |
Provisions | 1,582 | 1,391 | |
Lease liabilities | 1,495 | 1,543 | |
Other financial liabilities | 739 | 807 | |
Other current liabilities | 7,659 | 5,514 | |
Total current liabilities | 135,718 | 132,345 | |
Non-current liabilities | |||
Borrowings | 889 | 725 | |
Deferred tax liabilities | 873 | 709 | |
Retirement benefit liabilities | 12,091 | 14,830 | |
Provisions | 357 | 358 | |
Lease liabilities | 5,510 | 5,465 | |
Other financial liabilities | 2,648 | 2,639 | |
Other non-current liabilities | 1,411 | 1,447 | |
Total non-current liabilities | 23,781 | 26,176 | |
Total liabilities | 159,499 | 158,522 | |
Equity | |||
Share capital | 34,433 | 34,433 | |
Capital surplus | 34,788 | 34,831 | |
Treasury stock | (4,739) | (4,741) | |
Other components of equity | 11,320 | 9,152 | |
Retained earnings | 132,619 | 146,150 | |
Equity attributable to owners of the parent | 208,421 | 219,826 | |
Non-controlling interests | 12,780 | 12,318 | |
Total equity | 221,201 | 232,145 | |
Total liabilities and equity | 380,701 | 390,667 |
10
Lion Corporation (Code 4912): Consolidated Financial Statements for the First Half Ended June 30, 2020
(2) Condensed Consolidated Statement of Income and Statement of Comprehensive Income
Condensed Consolidated Statement of Income
Six months ended June 30, 2019 and 2020
(Millions of yen) | |||
Six months ended | Six months ended | ||
June 30, 2019 | June 30, 2020 | ||
Net sales | 167,334 | 169,111 | |
Cost of sales | (84,815) | (83,507) | |
Gross profit | 82,518 | 85,604 | |
Selling, general and administrative expenses | (70,059) | (69,231) | |
Other income | 1,011 | 11,521 | |
Other expenses | (581) | (1,925) | |
Operating profit | 12,889 | 25,968 | |
Finance income | 426 | 445 | |
Finance costs | (114) | (76) | |
Share of profit of investments accounted for | 437 | 703 | |
using the equity method | |||
Profit before tax | 13,638 | 27,041 | |
Income taxes | (3,813) | (7,484) | |
Profit for the period | 9,824 | 19,557 | |
Profit for the period attributable to: | |||
Owners of the parent | 8,689 | 18,623 | |
Non-controlling interests | 1,134 | 933 | |
Profit for the period | 9,824 | 19,557 | |
Earnings per share | |||
Basic (Yen) | 29.89 | 64.06 | |
Diluted (Yen) | 29.86 | 63.98 | |
11
Lion Corporation (Code 4912): Consolidated Financial Statements for the First Half Ended June 30, 2020
Condensed Consolidated Statement of Comprehensive Income
Six months ended June 30, 2019 and 2020
(Millions of yen) | |||
Six months ended | Six months ended | ||
June 30, 2019 | June 30, 2020 | ||
Profit for the period | 9,824 | 19,557 | |
Other comprehensive income | |||
Items that will not be reclassified as profit or loss | |||
Net gain (loss) on revaluation of financial | |||
assets measured at fair value through | (4) | (939) | |
other comprehensive income | |||
Remeasurements of defined benefit plans | 813 | (1,924) | |
Share of other comprehensive income of | |||
investments accounted for using the equity | (43) | (15) | |
method | |||
Total items that will not be reclassified as | 765 | (2,879) | |
profit or loss | |||
Items that may be subsequently reclassified | |||
as profit or loss | |||
Net gain (loss) on derivatives designated | 6 | ― | |
as cash flow hedges | |||
Exchange differences on translation of | (471) | (1,627) | |
foreign operations | |||
Share of other comprehensive income of | |||
investments accounted for using the equity | 3 | (127) | |
method | |||
Total items that may be subsequently | (462) | (1,754) | |
reclassified as profit or loss | |||
Total other comprehensive income, net of tax | |||
303 | (4,634) | ||
Comprehensive income for the period | 10,127 | 14,923 | |
Comprehensive income for the period | |||
attributable to: | |||
Owners of the parent | 8,879 | 14,561 | |
Non-controlling interests | 1,247 | 361 | |
Comprehensive income for the period | 10,127 | 14,923 | |
12
Lion Corporation (Code 4912): Consolidated Financial Statements for the First Half Ended June 30, 2020
(3) Condensed Consolidated Statement of Changes in Equity
Six months ended June 30, 2019
(Millions of yen) | |||||||
Equity attributable to owners of the parent | |||||||
Other components of equity | |||||||
Net gain (loss) | |||||||
on revaluation of | |||||||
Share capital | Capital surplus | Treasury stock | Subscription | financial assets | Remeasurements | ||
measured at fair | of defined benefit | ||||||
rights to shares | value through | plans | |||||
other | |||||||
comprehensive | |||||||
income | |||||||
Balance at January 1, 2019 | 34,433 | 34,715 | (4,766) | 165 | 10,800 | ― | |
Cumulative effect of | |||||||
changes in accounting | |||||||
principles | |||||||
Balance at January 1, 2019 | 34,433 | 34,715 | (4,766) | 165 | 10,800 | ― | |
(adjusted) | |||||||
Profit for the period | |||||||
Other comprehensive | (30) | 813 | |||||
income | |||||||
Total comprehensive | ― | ― | ― | ― | (30) | 813 | |
income for the period | |||||||
Dividends | |||||||
Acquisition of treasury | (1) | ||||||
stock | |||||||
Disposal of treasury | (7) | 29 | (21) | ||||
stock | |||||||
Share-based | 41 | ||||||
payments | |||||||
Transfer from other | |||||||
components of equity | (407) | (813) | |||||
to retained earnings | |||||||
Total transactions with | ― | 33 | 28 | (21) | (407) | (813) | |
owners | |||||||
Balance at June 30, 2019 | 34,433 | 34,748 | (4,738) | 143 | 10,362 | ― | |
Equity attributable to owners of the parent | |||||||
Other components of equity | Non-controlling | ||||||
Total equity | |||||||
Net gain (loss) | Exchange | Retained | Total | interests | |||
on derivatives | differences on | earnings | |||||
Total | |||||||
designated as | translation of | ||||||
cash flow | foreign | ||||||
hedges | operations | ||||||
Balance at January 1, 2019 | (8) | (36) | 10,920 | 115,806 | 191,108 | 13,163 | 204,271 |
Cumulative effect of | |||||||
changes in accounting | - | (94) | (94) | (0) | (94) | ||
principles | |||||||
Balance at January 1, 2019 | (8) | (36) | 10,920 | 115,711 | 191,014 | 13,162 | 204,177 |
(adjusted) | |||||||
Profit for the period | ― | 8,689 | 8,689 | 1,134 | 9,824 | ||
Other comprehensive | 6 | (598) | 190 | 190 | 112 | 303 | |
income | |||||||
Total comprehensive | 6 | (598) | 190 | 8,689 | 8,879 | 1,247 | 10,127 |
income for the period | |||||||
Dividends | ― | (2,906) | (2,906) | (2,958) | (5,865) | ||
Acquisition of treasury | ― | (1) | (1) | ||||
stock | |||||||
Disposal of treasury | (21) | 0 | 0 | ||||
stock | |||||||
Share-based | ― | 41 | 41 | ||||
payments | |||||||
Transfer from other | |||||||
components of equity | (1,220) | 1,220 | ― | ― | |||
to retained earnings | |||||||
Total transactions with | ― | ― | (1,242) | (1,686) | (2,867) | (2,958) | (5,825) |
owners | |||||||
Balance at June 30, 2019 | (2) | (635) | 9,867 | 122,715 | 197,027 | 11,451 | 208,478 |
13
Lion Corporation (Code 4912): Consolidated Financial Statements for the First Half Ended June 30, 2020
Six months ended June 30, 2020
(Millions of yen) | |||||||
Equity attributable to owners of the parent | |||||||
Other components of equity | |||||||
Net gain (loss) | |||||||
on revaluation of | |||||||
Share capital | Capital surplus | Treasury stock | Subscription | financial assets | Remeasurements | ||
measured at fair | of defined benefit | ||||||
rights to shares | value through | plans | |||||
other | |||||||
comprehensive | |||||||
income | |||||||
Balance at January 1, 2020 | 34,433 | 34,788 | (4,739) | 143 | 11,289 | ― | |
Profit for the period | |||||||
Other comprehensive | (921) | (1,924) | |||||
income | |||||||
Total comprehensive | ― | ― | ― | ― | (921) | (1,924) | |
income for the period | |||||||
Dividends | |||||||
Acquisition of treasury | (1) | ||||||
stock | |||||||
Disposal of treasury | |||||||
stock | |||||||
Share-based | 43 | ||||||
payments | |||||||
Transfer from other | |||||||
components of equity | (30) | 1,924 | |||||
to retained earnings | |||||||
Total transactions with | ― | 43 | (1) | ― | (30) | 1,924 | |
owners | |||||||
Balance at June 30, 2020 | 34,433 | 34,831 | (4,741) | 143 | 10,337 | ― | |
Equity attributable to owners of the parent | |||||||
Other components of equity | Non-controlling | ||||||
Total equity | |||||||
Net gain (loss) | Exchange | Retained | Total | interests | |||
on derivatives | differences on | earnings | |||||
Total | |||||||
designated as | translation of | ||||||
cash flow | foreign | ||||||
hedges | operations | ||||||
Balance at January 1, 2020 | ― | (113) | 11,320 | 132,619 | 208,421 | 12,780 | 221,201 |
Profit for the period | ― | 18,623 | 18,623 | 933 | 19,557 | ||
Other comprehensive | ― | (1,215) | (4,061) | (4,061) | (572) | (4,634) | |
income | |||||||
Total comprehensive | ― | (1,215) | (4,061) | 18,623 | 14,561 | 361 | 14,923 |
income for the period | |||||||
Dividends | ― | (3,197) | (3,197) | (823) | (4,021) | ||
Acquisition of treasury | (1) | (1) | |||||
stock | ― | ||||||
Disposal of treasury | |||||||
stock | ― | ― | ― | ||||
Share-based | 43 | 43 | |||||
payments | ― | ||||||
Transfer from other | |||||||
components of equity | 1,894 | (1,894) | ― | ― | |||
to retained earnings | |||||||
Total transactions with | ― | ― | 1,894 | (5,091) | (3,156) | (823) | (3,979) |
owners | |||||||
Balance at June 30, 2020 | ― | (1,329) | 9,152 | 146,150 | 219,826 | 12,318 | 232,145 |
14
Lion Corporation (Code 4912): Consolidated Financial Statements for the First Half Ended June 30, 2020
- Notes to Condensed Consolidated Financial Statements Notes relating to the assumption of a going concern Not applicable.
Changes in Accounting Principles
The main accounting standards that the Group applies from the first quarter of the fiscal year under review are as follows.
Standard | Title | Summary of new principles or amendments |
IFRS 3 | Business Combinations | Improved the definition of a business |
Presentation of Financial | ||
IAS 1 | Statements | Clarified the definition of "material" |
IAS 8 | Accounting Policies, Changes in | |
Accounting Estimates and Errors | ||
Financial Instruments | Revised certain hedge accounting requirements to | |
IFRS 9 | Financial Instruments: Recognition | |
reduce the potential effects of uncertainty caused by the | ||
IFRS 7 | and Measurement | |
IBOR transition | ||
Financial Instruments: Disclosures | ||
The Group is applying the above accounting standards in accordance with their respective transitional provisions, and their application does not have a material impact on the Condensed Consolidated Financial Statements.
15
Lion Corporation (Code 4912): Consolidated Financial Statements for the First Half Ended June 30, 2020
Segment Information
-
Overview of reportable segments
The Group's reportable segments are component units of the Company for which separate financial information is available and that are subject to regular review by the Board of Directors for the purpose of making decisions regarding the allocation of management resources and evaluating business performance.
The Group's business divisions are organized by product category; each business division formulates a comprehensive strategy and carries out business activities for the products it handles. Affiliated companies in Japan undertake business activities pertinent to the characteristics of their respective products and services.
Affiliated companies located overseas are independent management units that conduct business activities pertinent to the characteristics of the regions in which they operate.
Accordingly, the Group comprises three reportable segments divided by product and service type and by region, which are, in turn, based on business divisions and companies; namely, the reportable segments are Consumer Products Business, Industrial Products Business and Overseas Business.
The Group's reportable segments are as follows.
- Consumer Products Business
The Consumer Products Business engages in the manufacture and sale of commodities, over-the-counter drugs and foods with function claims, primarily in Japan.
Main products: Toothpastes, toothbrushes, hand soaps, antipyretic analgesics, eye drops, health tonic drinks, laundry detergents, dishwashing detergents, fabric softeners, household cleaners, bleaches and pet supplies
- Industrial Products Business
The Industrial Products Business engages primarily in the manufacture and sale of chemical raw materials, industrial products and other items in Japan and overseas.
Main products: Activator, electro-conductive carbon and detergents for institutional use
- Overseas Business
The Overseas Business engages mainly in the manufacture and sale of commodities by affiliated overseas businesses.
- Other Business
Lion subsidiaries located in Japan primarily undertake operations related to Group businesses.
Main products and services: Construction contracting, real estate management and temporary staffing
16
Lion Corporation (Code 4912): Consolidated Financial Statements for the First Half Ended June 30, 2020
- Net Sales and Performance of Reportable Segments Six months ended June 30, 2019
(Millions of yen)
Reportable Segment | |||||||
Other | Total | Adjustment2 | Consolidated3 | ||||
Consumer | Industrial | Overseas | |||||
Products | Products | ||||||
Business | |||||||
Business | Business | ||||||
Net sales | |||||||
(1) External | 102,893 | 16,027 | 46,714 | 1,650 | 167,285 | 48 | 167,334 |
(2) Intersegment1 | 7,379 | 10,981 | 4,760 | 13,924 | 37,046 | (37,046) | ― |
Total | 110,273 | 27,008 | 51,474 | 15,574 | 204,331 | (36,997) | 167,334 |
Core operating | 7,755 | 779 | 3,669 | 570 | 12,775 | (316) | 12,459 |
income | |||||||
Other income | 1,011 | ||||||
Other expenses | (581) | ||||||
Operating profit | 12,889 | ||||||
Finance income | 426 | ||||||
Finance costs | (114) | ||||||
Share of profit of | |||||||
investments | 437 | ||||||
accounted for using | |||||||
the equity method | |||||||
Profit before tax | 13,638 |
Notes: 1. Includes intra-segment transactions within the reportable segments.
- A negative ¥316 million adjustment of core operating income mainly comprises intersegment eliminations and corporate expenses not allocated to any reportable segment.
- Core operating income is reconciled with gross profit as follows.
(Millions of yen) | |
Gross profit | 82,518 |
Selling, general and administrative expenses | (70,059) |
Core operating income | 12,459 |
Core operating income is calculated as gross profit less selling, general and administrative expenses, and is the basis on which the Board of Directors evaluates the performance of each segment.
17
Lion Corporation (Code 4912): Consolidated Financial Statements for the First Half Ended June 30, 2020
Six months ended June 30, 2020
(Millions of yen)
Reportable Segment | |||||||
Other | Total | Adjustment2 | Consolidated3 | ||||
Consumer | Industrial | Overseas | |||||
Products | Products | ||||||
Business | |||||||
Business | Business | ||||||
Net sales | |||||||
(1) External | 108,109 | 15,198 | 44,307 | 1,460 | 169,076 | 35 | 169,111 |
(2) Intersegment1 | 7,627 | 11,925 | 5,379 | 13,119 | 38,052 | (38,052) | ― |
Total | 115,737 | 27,124 | 49,687 | 14,580 | 207,128 | (38,017) | 169,111 |
Core operating | 11,768 | 1,040 | 3,311 | 895 | 17,015 | (643) | 16,372 |
income | |||||||
Other income | 11,521 | ||||||
Other expenses | (1,925) | ||||||
Operating profit | 25,968 | ||||||
Finance income | 445 | ||||||
Finance costs | (76) | ||||||
Share of profit of | |||||||
investments | 703 | ||||||
accounted for using | |||||||
the equity method | |||||||
Profit before tax | 27,041 | ||||||
Notes: 1. Includes intra-segment transactions within the reportable segments. |
- A negative ¥643 million adjustment of core operating income mainly comprises intersegment eliminations and corporate expenses not allocated to any reportable segment.
- Core operating income is reconciled with gross profit as follows.
(Millions of yen) | |
Gross profit | 85,604 |
Selling, general and administrative expenses | (69,231) |
Core operating income | 16,372 |
Core operating income is calculated as gross profit less selling, general and administrative expenses, and is the basis on which the Board of Directors evaluates the performance of each segment.
18
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Lion Corporation published this content on 05 August 2020 and is solely responsible for the information contained therein. Distributed by Public, unedited and unaltered, on 05 August 2020 08:06:17 UTC