November 2, 2017
Mitsubishi Chemical Holdings Corporation Condensed Consolidated Financial Information for the First Half of the Fiscal Year Ending March 31, 2018-
Business Results for the First Half of the Fiscal Year Ending March 31, 2018 ("FY2017") (Business period: April 1, 2017 to September 30, 2017)
Millions of Yen
The First Half of the Current Fiscal Year
("FY2017")
The First Half of
the Previous Fiscal Year ("FY2016")
April 1, 2017 -
September 30, 2017
April 1, 2016 -
September 30, 2016
-
Results of Operations:
Sales revenue
1,804,766
1,586,259
Core operating income*
192,292
136,331
Operating income
185,328
120,068
Earnings before taxes
180,209
111,620
Net Income
131,320
109,147
Net income attributable to owners of the parent
100,478
79,154
Comprehensive income
175,026
42,241
* Core operating income: Operating income excluding special items
(Yen)
Earnings per share - Basic
69.81
54.04
- Diluted
64.56
54.00
-
Segment Information:
[Sales Revenue by Business Segment]
[Core Operating Income (Loss) by Business Segment]Performance Products
560,747
523,979
Chemicals
571,581
441,964
Industrial Gases
302,160
265,568
Health Care
273,175
263,352
Others
97,103
91,396
Total
1,804,766
1,586,259
Performance Products
50,848
46,997
Chemicals
71,854
16,679
Industrial Gases
28,063
24,379
Health Care
40,959
48,986
Others
3,450
3,477
Elimination & corporate
(2,882)
(4,187)
Total
192,292
136,331
Millions of Yen
As of September 30, 2017
As of March 31, 2017
-
) Financial Position:
Total assets
4,576,127
4,463,547
Total equity
1,838,941
1,698,197
Equity attributable to owners of the parent
1,209,403
1,091,398
Ratio of equity attributable to owners of the parent to total assets (%)
26.4
24.5
Millions of Yen
The First Half of the Current Fiscal Year
("FY2017")
The First Half of
the Previous Fiscal Year ("FY2016")
April 1, 2017 -
September 30, 2017
April 1, 2016 -
September 30, 2016
- Cash Flows:
-
Forecast for the Current Fiscal Year
Millions of Yen
FY2017
April 1, 2017 -
March 31, 2018
Sales revenue
3,700,000
Core operating income
365,000
Operating income
345,000
Net income attributable to owners of the parent
180,000
(Yen)
Earnings per share - Basic 125.06
- Business Performance and Financial Position (1) Business Performance Consolidated Performance for the First Half of the Fiscal Year Ending March 31, 2018 (Fiscal 2017): Six Months Ended September 30, 2017 Overview of General Performance
Net cash provided by (used in) operating activities | 189,173 | 195,607 |
Net cash provided by (used in) investing activities | (27,390) | (124,273) |
Net cash provided by (used in) financing activities | (113,922) | (23,916) |
Cash and cash equivalents at end of the period | 416,198 | 281,575 |
The Company has reclassified business segments from FY2017. Accordingly, segment information for FY2016 has been restated to match.
The business environment surrounding the Mitsubishi Chemical Holdings Group during the first half of fiscal 2017 remained generally favorable, due primarily to continuing overall sales growth, especially in the Performance Products domain, as well as continued strong market prices for petrochemicals such as MMA and other products in the Industrial Materials domain.
Against this background, sales revenue for the first half of fiscal 2017 increased by ¥218.5 billion, or 13.8% year on year, to ¥1,804.8 billion. Profit increased significantly year on year, as follows. Core operating income rose by ¥56.0 billion, or 41.0% year on year, to ¥192.3 billion, and operating income was up ¥65.2 billion, or 54.4% year on year, at ¥185.3 billion. Earnings before taxes rose by ¥68.6 billion, or 61.4% year on year, to ¥180.2 billion. Net income attributable to owners of the parent grew ¥21.3 billion, or 26.9% year on year, to ¥100.5 billion, due to a decrease in tax expenses associated with recognition of deferred tax assets relating to the discontinued business transfer in the same period of the previous fiscal year.
Overview of Business SegmentsThe overview of financial results by business segment for the first half of fiscal 2017 is shown below.
Gains or losses by segment are stated with core operating income which excludes gains or losses from special items including losses incurred by business withdrawals, streamlining, and others.
In the following sections, all comparisons are with the same period of the previous fiscal year unless stated otherwise.
Note:
From the first quarter of fiscal 2017, new business segments are used for the announcement of financial results. The business segments were reviewed and reclassified into "Performance Products, Chemicals," "Industrial Gases," and "Health Care," based on the following factors.
Mitsubishi Chemical Holdings integrated three consolidated subsidiaries - Mitsubishi Chemical Corporation, Mitsubishi Plastics, Inc., and Mitsubishi Rayon Co., Ltd. - into one company, and established the new Mitsubishi Chemical Corporation on April 1, 2017. This was executed in consideration of the need to establish an organizational structure that can take full advantage of each company's resources and strengths to address a rapidly changing business climate and drive the expansion of their business toward accomplishing the goals of the five-year medium-term management plan, APTSIS 20, which began in fiscal 2016.
Taking this opportunity, Mitsubishi Chemical Holdings, the holding company of the four operating companies - the new Mitsubishi Chemical, Mitsubishi Tanabe Pharma Corporation, Life Science Institute, Inc., and Taiyo Nippon
Sanso Corporation - stepped up its efforts to plan medium-term strategies for each of four business segments (Performance Products, Chemicals, Industrial Gases, and Health Care) in which four operating companies are mainly engaged, enhance monitoring of APTSIS 20, and shift to a management system that accelerate growth strategies for these four business segments.
Business Domains | Business Segments | Business Sub-Segment | ||
Busiensses | ||||
Performance Products | Performance Products | Functional Products | Electronics and displays | Optical films, Electronics and displays, Acetyl |
High performance films | Packaging films, Industrial films | |||
Environment and living solutions | Aqua and separator solutions, Infrastructure solutions and agricultural materials | |||
Advanced moldings and composites | High performance engineering plastics, Fibers and textile, Carbon fiber and composite materials, Functioinal moldings and composites, Almina fiber and light metal products | |||
Performance Chemicals | Advanced polymers | Performance polymers, Engineering polymers, Sustainable resources | ||
High performance chemicals | Performance chemicals, Performance materials, Food ingredients | |||
New energy | Lithium ion battery materials, Energy transduction device materials | |||
Industrial Materials | Chemicals | MMA | MMA | MMA |
Petrochemicals | Petrochemicals | Basic petrochemicals, Polyolefins, Basic chemical derivatives | ||
Carbon | Carbon | Carbon | ||
Industrial Gases | Industrial gases | |||
Health Care | Health Care | Pharmaceuticals | ||
Life science |
Performance Products Segment, Performance Products Domain
Sales revenue in this segment increased by ¥36.8 billion, to ¥560.7 billion. Core operating income was up ¥3.9 billion, at ¥50.8 billion.
In functional products, sales of advanced moldings and composites including high-performance engineering plastics, alumina fibers, and other products remained firm, and sales remained steady for films for displays in electronics and displays.
In performance chemicals, sales volumes increased due to growing sales volumes of battery materials for automobiles in the new energy business. In addition, in advanced polymers, market prices for phenol-polycarbonate chain continued firm, and sales volumes increased as the impact of scheduled plant maintenance and repairs during the same period of fiscal 2016 was resolved. Core operating income increased, due primarily to higher sales volumes as a whole, despite a rise in raw material costs for some products.
In addition, during the same period of fiscal 2016, performance was affected by scheduled plant maintenance and repairs, but those issues have been resolved. Improvements also reflect continued firm market prices for phenol-polycarbonate chain in advanced polymers.
Chemicals Segment, Industrial Materials Domain
Mitsubishi Chemical Holdings Corporation published this content on 02 November 2017 and is solely responsible for the information contained herein.
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