Summary of Consolidated Financial Results
For the Year Ended March 31, 2020 (Based on Japanese GAAP)
May 15, 2020 | ||||||||||
Company name: | Mitsui Sugar Co., Ltd. | Stock exchange listings: | Tokyo | |||||||
Stock code: | 2109 | https://www.mitsui-sugar.co.jp/ | ||||||||
Company representative: | Daisuke Saiga | President and Chief Executive Officer | ||||||||
Contact person in charge: | Hideaki Batori | Executive Managing Officer, | ||||||||
General Manager, Group Strategy | Division | |||||||||
TEL. 81-3-3663-3111 | ||||||||||
Planned date for ordinary general meeting of shareholders: | June 23, 2020 | |||||||||
Planned date to start dividend payment: | June 24, 2020 | |||||||||
Planned date for submission of annual securities report: | June 23, 2020 | |||||||||
Preparation of supplementary material for financial statements: | Yes | |||||||||
Briefing session for financial statements: | No | |||||||||
(Amounts are rounded down to the nearest one million yen.) | ||||||||||
1. Consolidated Financial Results for the Year Ended March 31, 2020 (from April 1, 2019 to March 31, 2020) | ||||||||||
(1) Consolidated Results of Operations | (Percentages are year-over-year changes.) | |||||||||
Net sales | Operating income | Ordinary income | Profit attributable to | |||||||
owners of parent | ||||||||||
Million yen | % | Million yen | % | Million yen | % | Million yen | % | |||
Year ended March 31, 2020 | 113,854 | 8.1 | 4,848 | 29.5 | 4,982 | (51.7) | 2,422 | (64.7) | ||
Year ended March 31, 2019 | 105,274 | (0.0) | 3,742 | (41.1) | 10,314 | (24.2) | 6,862 | (17.5) |
(Note) Comprehensive income | ||||||
Year ended March 31, 2020: 1,830 million yen (-73.5%) Year ended March 31, 2019: 6,902 million yen (-25.9%) | ||||||
Earnings per | Diluted earnings | Return on equity | Return on assets | Operating margin | ||
share | per share | |||||
Yen | Yen | % | % | % | ||
Year ended March 31, 2020 | 93.27 | - | 2.9 | 3.5 | 4.3 | |
Year ended March 31, 2019 | 257.00 | - | 8.2 | 7.6 | 3.6 |
(Reference) Equity in earnings (losses) of affiliates | Year ended March 31, 2020: (931 million yen) | ||||||
Year ended March 31, 2019: (574 million yen) | |||||||
(2) Consolidated Financial Position | |||||||
Total assets | Net assets | Capital adequacy ratio | Net assets per share | ||||
Million yen | Million yen | % | Yen | ||||
As of March 31, 2020 | 141,705 | 92,395 | 58.4 | 3,218.77 | |||
As of March 31, 2019 | 139,867 | 95,063 | 61.1 | 3,201.11 | |||
(Reference) Equity capital | As of March 31, 2020: | 82,727 million yen | As of March 31, 2019: 85,475 million yen | ||||
(3) Consolidated Cash Flow | |||||||
Net cash provided by | Net cash provided by | Net cash provided by | Cash and cash | ||||
(used in) operating | (used in) investing | (used in) financing | equivalents | ||||
activities | activities | activities | at period end | ||||
Million yen | Million yen | Million yen | Million yen | ||||
Year ended March 31, 2020 | 11,167 | (7,146) | (3,425) | 15,414 | |||
Year ended March 31, 2019 | 12,081 | (20,652) | (1,050) | 14,825 |
2. Cash Dividends
Annual dividend | Total | Dividend | Dividend on | |||||
End of 1Q End of 2Q End of 3Q | Year end | Total | dividends | payout ratio | equity | |||
(Total) | (Consolidated) | (Consolidated) | ||||||
Yen | Yen | Yen | Yen | Yen | Million yen | % | % | |
Year ended March 31, 2019 | - | 55.00 | - | 55.00 | 110.00 | 2,937 | 42.8 | 3.5 |
Year ended March 31, 2020 | - | 25.00 | - | 25.00 | 50.00 | 1,285 | 53.6 | 1.6 |
Year ending March 31, 2021 (forecast) | - | 25.00 | - | 25.00 | 50.00 | 53.5 |
(Note) The year-end cash dividend for the fiscal year ended March 31, 2020 comprises an ordinary dividend of ¥10.00 and a commemorative dividend of ¥15.00.
3. Consolidated Business Forecasts for the Year Ending March 31, 2021 (from April 1, 2020 to March 31, 2021)
(Percentages are year-over-year changes.)
Net sales | Operating | Ordinary | Profit attributable to | Earnings per | ||||||||
income | income | owners of parent | share | |||||||||
Million yen | % | Million yen | % | Million yen | % | Million yen | % | Yen | ||||
Full year | 115,000 | 1.0 | 4,800 | (1.0) | 4,800 | (3.7) | 2,400 | (0.9) | 93.38 |
*Notes
-
Significant changes in subsidiaries during period
(Changes in specified subsidiaries resulting in changes of scope of consolidation): None - Changes in accounting policy and accounting estimates and restatement
- Changes in accounting policy due to any revision of accounting standards: None
(ii) | Changes in accounting policy other than i) above: | None | |||
(iii) | Changes in accounting estimates: | None | |||
(iv) | Restatement: | None | |||
(3) Number of outstanding shares (common shares) | |||||
(i) | Number of outstanding shares at period | As of | 28,333,480 | As of | 28,333,480 |
end (including treasury shares) | March 31, 2020 | shares | March 31, 2019 | shares | |
(ii) | Number of treasury shares at period end | As of | 2,631,827 | As of | 1,631,540 |
March 31, 2020 | Shares | March 31, 2019 | Shares | ||
(iii) Average number of shares during period | Year ended | 25,973,526 | Year ended | 26,702,257 | |
March 31, 2020 | shares | March 31, 2019 | shares |
(Reference) Overview of Financial Results on a Non-consolidated Basis | |||||||||||||||
1. Financial Results on a Non-consolidated Basis for the Year Ended March 31, 2020 (from April 1, 2019 to March 31, 2020) | |||||||||||||||
(1) Non-consolidated Results for Operations | (Percentages are year-over-year changes.) | ||||||||||||||
Net sales | Operating income | Ordinary income | Net income | ||||||||||||
Million yen | % | Million yen | % | Million yen | % | Million yen | % | ||||||||
Year ended March 31, 2020 | 59,157 | (3.3) | 4,055 | 42.9 | 6,038 | (40.4) | 4,455 | (39.2) | |||||||
Year ended March 31, 2019 | 61,168 | (3.6) | 2,837 | (36.9) | 10,127 | (20.0) | 7,326 | (14.7) | |||||||
Net income per share | Diluted net income | ||||||||||||||
per share | |||||||||||||||
Yen | Yen | ||||||||||||||
Year ended March 31, 2020 | 171.53 | - | |||||||||||||
Year ended March 31, 2019 | 274.40 | - | |||||||||||||
(2) Financial Position on a Non-consolidated Basis | |||||||||||||||
Total assets | Net assets | Capital adequacy ratio | Net assets per share | ||||||||||||
Million yen | Million yen | % | Yen | ||||||||||||
As of March 31, 2020 | 97,955 | 72,960 | 74.5 | 2,838.75 | |||||||||||
As of March 31, 2019 | 95,561 | 73,167 | 76.6 | 2,740.17 | |||||||||||
(Reference) Equity capital | As of March 31, 2020: | 72,960 million yen | As of March 31, 2019: 73,167 million yen |
2. Business Forecasts on a Non-consolidated Basis for the Year Ending March 31, 2021 (from April 1, 2020 to March 31, 2021) (Percentages are year-over-year changes.)
Net sales | Ordinary income | Net income | Net income | |||||
per share | ||||||||
Million yen | % | Million yen | % | Million yen | % | Yen | ||
Full year | 58,000 | (2.0) | 4,500 | (25.5) | 3,100 | (30.4) | 120.61 |
- The kessan tanshin document is outside the scope of audit procedures conducted by certified public accountants and the independent auditor.
-
Explanation on appropriate use of business forecasts, and other special notes
Business forecasts and other forward-looking statements contained in this report and supplementary materials are based on information currently available to the Company and on certain assumptions deemed as rational, and are not intended to guarantee the achievements by the Company. Actual results may greatly differ due to various factors. For preconditions for business forecasts and notes in using such forecasts, please see "(1) Analysis of operating results, 2) Future outlook" in "1. Operating Results and Other" on page 3 of the appendix.
- Appendix
1
1. Operating Results and Other
- Analysis of operating results 1) Overview of fiscal 2019
In fiscal 2019, ended March 31, 2020, the Japanese economy continued to recover at a moderate pace, supported by improving employment and income conditions in the first half of the fiscal year. However, in the second half of the fiscal year, natural disasters and the hike to consumption tax weighed on consumer spending and there were concerns about a negative impact on the economy from the widening COVID-19 outbreak.
Against that backdrop, the Mitsui Sugar Group focused on strengthening the earnings capabilities of existing businesses while remaining fully committed to its primary responsibility to society - the stable supply of safe and reliable sugar products and other food ingredients. In addition, the Company worked to reinforce its business base in both Japan and overseas. Specifically, in December 2019, the Company established a new joint venture called HANY SUGAR to manufacture and sell small home-use sugar packets and various types of processed sugar in China as part of ongoing efforts to tap into growth in overseas markets using sites in Asia.
At a meeting of the Board of Directors on March 25, 2020, the Company approved a number of moves aimed at further strengthening the Group's sugar business in Japan: (1) start discussions with Dai-Nippon Meiji Sugar Co., Ltd. regarding a business integration with an effective date of April 1, 2021, and (2) open discussions with Dai-Nippon Meiji Sugar and Nippon Beet Sugar Manufacturing Co., Ltd. about a capital and business alliance with an effective date to be determined separately. For more details about the board resolutions, please refer to the press release published on March 25, 2020: "Notice Regarding Commencement of Talks for Business Integration between Mitsui Sugar Co., Ltd. and Dai-Nippon Meiji Sugar Co., Ltd. and Capital and Business Alliance between Mitsui Sugar Co., Ltd., Dai-Nippon Meiji Sugar Co., Ltd. and Nippon Beet Sugar Manufacturing Co., Ltd."
(Sugar Business)
In the overseas crude sugar market, which affects raw material prices in the Sugar Business, the sugar price started the fiscal year at the 12 cents per pound level, before falling to around 10 cents at one point amid growing expectations that supply-demand conditions would ease worldwide. Amid a string of forecasts pointing to a drop in output in key producing countries in the coming fiscal year, the price subsequently rebounded, reaching the 13 cents per pound level at the end of December 2019. However, after reaching the high-15 cent level in February 2020, the sugar price fell back sharply to end the fiscal year at 10 cents per pound amid a downturn in macroeconomic conditions due to a slowdown in the global economy caused by the COVID-19 outbreak, which combined to create a range of factors that indirectly impacted the supply-demand environment for sugar. Meanwhile, in Japan, retail prices for refined white sugar trended at around 187-188 yen per kg during the fiscal year.
In sales activities, sales volume overall declined year on year, reflecting weak shipments to users in the beverage sector amid an unseasonably cold rainy season and wet summer, and delays to production at a factory in the fourth quarter of the fiscal year. Amid a downward trend in sales of home-use 1kg sugar packs, the Company expanded its range of resealable small sugar packets designed for better storage and worked to establish the packaging as the market standard by targeting volume retailers in the Tokyo Metropolitan area.
On the cost front, the Group faced higher fixed costs, reflecting rising logistics costs due to worker shortages and an increase in depreciation and amortization related to investment in new equipment and facilities to ensure stable operations. However, efforts to procure crude sugar at appropriate prices led to an improvement in raw material costs, supporting an increase in operating income compared with the previous fiscal year.
Overseas, the Group established a new joint venture in China called HANY SUGAR, which is preparing to start operations in autumn 2020, drawing on the Group's domestic expertise in small home-use sugar packets and the processing of various types of sugar.
In consolidated subsidiaries, production volume declined at Showa Sugar Co., Ltd. amid poor weather, and profits declined at Hokkaido Sugar Co., Ltd. due to a drop in sales prices and sales volume. However, SIS' 88 Pte Ltd, which became a consolidated subsidiary at the end of the third quarter in the previous fiscal year, performed well on the whole throughout the fiscal year, contributing to profits.
As a result, net sales of the Sugar Business amounted to 92,145 million yen and operating income was 3,240 million yen.
Sugar market status during period
Domestic market price (listed in Nippon Keizai Shimbun, per kilogram of a large bag of superfine sugar, Tokyo) Fiscal year ended March 31, 2020: 187-188 yen
Overseas crude sugar price (NY sugar current delivery, per pound)
Opening price: 12.53 cents, highest price: 15.90 cents, lowest price: 10.42 cents, closing price: 10.42 cents
(Food Science Business)
In the Food Science Business, sales of palatinose and palachinit were slightly weak, but operating income increased year on year
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due to an improvement in the profit margin for palatinose. Growing use of sugar cane extract for sanitation applications also contributed to higher sales and profits year on year. In July 2019, the Group's slow calorie sugar, which contains palatinose, received approval as a Food with Functional Claim for its ability to limit increases in blood sugar levels after meals. To coincide with the labelling approval, the Food Science Business ran a high-profile marketing campaign to raise consumer awareness about the product's functionality.
In consolidated subsidiaries, sales and profits from TAISHO TECHNOS CO., LTD. increased due to higher sales and an improvement in the cost ratio following the start of operations at a new plant. Nutri Co., Ltd. also reported higher sales and profits, due mainly to sales growth at a liquid food business acquired during the fiscal year under review.
As a result, net sales in the Food Science Business amounted to 19,766 million yen, while operating income was 679 million yen.
(Real Estate Business)
The Real Estate Business booked a full-year contribution from the leasing of a logistics center in Okayama City, which was leased out in November 2018. However, net sales of 1,942 million yen and operating income of 928 million yen were both flat year on year.
As a result of the above, net sales in fiscal 2019 increased 8.1% year on year to 113,854 million yen and operating income rose 29.5% to 4,848 million yen.
In non-operating income and expenses, the Group booked royalty income of 1,340 million yen based on a development and marketing rights agreement for fingolimod (FTY720). However, due to an ongoing arbitration process between Novartis Pharma AG and Mitsubishi Tanabe Pharma Corporation, which is the joint holder of the fingolimod patent with the Company, the Group continues to exclude the recognition of profits related to the portion of royalty income subject to the arbitration process by Novartis Pharma AG, which is challenging the enforceability of certain provisions under the agreement.
In addition, the Group recorded share of loss of entities accounted for using equity method, mainly reflecting a decline in sales prices and sales volume at affiliates in Thailand amid weakness in the overseas crude sugar market. As a result, ordinary income declined 51.7% year on year to 4,982 million yen and profit attributable to owners of parent fell 64.7% to 2,422 million yen, which also reflected an extraordinary loss of 234 million yen as environmental expenses related to the accidental leak of heavy fuel oil at Hokkaido Sugar Co., Ltd.
Given the current characteristics of the Group's financial position, which has seen a large increase in depreciation costs for goodwill and other items related to the acquisition of businesses and assets to drive future growth, the Company is focusing on EBITDA (*1) in conjunction with other profit measures to provide a clearer picture of the Group's cash generation capabilities. In the fiscal year under review, EBITDA was 11,132 million yen, showing that the Group's business activities remain in a healthy state. For more details, please refer to (2) Analysis of financial position 2) Cash flow.
*1 Simplified calculations for consolidated depreciation and amortization and other items added to consolidated operating income.
2) Future outlook
For fiscal 2020, ending March 31, 2021, we see the risk of a rapid deterioration in consumer activity due to the COVID-19 outbreak worldwide, which has led to calls in Japan for people to stay home and restrict their activities, in addition to a severe drop in inbound demand. The impact of the outbreak looks increasingly serious and prolonged for the global economy, not only Japan, which needs to be taken into account in the Group's business activities. Although declining demand in Japan and overseas is a risk for the Group's operating performance in fiscal 2020, sugar is one of the key food ingredients for everyday life. As such, although the Group is unlikely to avoid any impact in the first half of the fiscal year, we expect the impact to moderate somewhat over the full fiscal year.
Against that backdrop, the Company will work closely with Group companies to continue strengthening existing businesses and expand businesses in growth fields while remaining fully committed to its primary responsibility to society - the stable supply of safe and reliable sugar products and other food ingredients.
Business forecasts for fiscal 2020 and issues to work on at each segment are as follows:
Net sales | 115,000 million yen | (up 1.0% year on year) |
Operating income | 4,800 million yen | (down 1.0% year on year) |
Ordinary income | 4,800 million yen | (down 3.7% year on year) |
Profit attributable to | 2,400 million yen | (down 0.9% year on year) |
owners of parent |
(Sugar Business)
In the domestic Sugar Business, we will continue to invest to ensure stable supplies, while also introducing automation and labor- saving approaches in response to structural changes in Japanese society, such as the declining population. We will also pursue optimization across all areas of our supply chain, from production and sales through to logistics, to address driver shortages and
3
increased workloads in the logistics sector, where there are limits on the use of labor-saving approaches. In sales, we will launch competitive products using the SPOON brand and roll out marketing activities that address changes in market needs from the perspective of customers.
In the overseas Sugar Business, we aim to reinforce competitiveness using SIS'88 Pte Ltd in Singapore as our strategic base in Asia. In China, we will build a sugar product supply chain serving both the B to B market for food product companies and the B to C market for households by coordinating strategy with our two local Group companies - COFCO Sugar Liaoning Co., Ltd. and HANY SUGAR. We will also continue to implement our strategy in Thailand, including the completion and startup of a new plant in November 2020 by a local affiliate, which has been pushing forward the project for several years.
(Food Science Business)
In the Food Science Business, we aim to increase earnings capabilities by stepping up cooperation between Group companies and by using M&A and other external resources, targeting fields that extend healthy life expectancy, improve performance during exercise and combine health and flavor.
(Real Estate Business)
In the Real Estate Business, we aim to continue generating stable cash flow using assets in the real estate portfolio, and further improve asset efficiency and increase earnings capabilities by developing real estate owned by the Company in Minami Ward in Okayama City and Nagata Ward in Kobe City.
(Other)
The Company disclosed on March 25, 2020 that it plans to start discussions with Dai-Nippon Meiji Sugar Co., Ltd. regarding a possible business integration, and with Nippon Beet Sugar Manufacturing Co., Ltd. regarding a possible capital and business alliance. Amid the increasingly challenging operating environment, the three parties will discuss ways of combining their extensive management expertise in production technology, quality and cost control, logistics and raw material procurement, built up over many years in the domestic sugar sector, creating a more stable supply framework in Japan, and strengthening international competitiveness to support future growth.
- Analysis of financial position
- Assets, liabilities and net assets
As of March 31, 2020, total assets were 141,705 million yen, an increase of 1,837 million yen compared with the end of the previous fiscal year.
This mainly reflected increases of 3,161 million yen for merchandise and finished goods, 493 million yen for raw materials and supplies, and 773 million yen for machinery, equipment and vehicles, versus declines of 581 million yen for notes and accounts receivable - trade, 748 million yen for goodwill, and 1,373 million yen for investment securities.
Liabilities totaled 49,309 million yen, an increase of 4,504 million yen compared with the end of the previous fiscal year. The main items were increases of 11,033 million yen for loans payable and 5,854 million yen for other non-current liabilities, versus declines of 10,000 million yen for current portion of bonds and 1,117 million yen for deferred tax liabilities.
Total net assets decreased 2,667 million yen from the end of the previous fiscal year to 92,395 million yen. This was mainly due to profit attributable to owners of parent of 2,422 million yen, dividends from surplus of 2,111 million yen and purchase of treasury shares of 2,305 million yen.
2) Cash flow
Cash and cash equivalents (hereinafter called "funds") as of March 31, 2020 increased 588 million yen from the end of the previous fiscal year to 15,414 million yen. This was because cash from operating activities increased by 11,167 million yen while cash flow from investing and financial activities decreased by 10,571 million yen.
Changes in cash flow for fiscal 2019 and their reasons are as follows.
(Cash flow from operating activities)
The funds acquired from operating activities amounted to 11,167 million yen (fiscal 2018: increase by 12,081 million yen).
This mainly reflected cash provided by income before income taxes of 4,678 million yen and depreciation and amortization of 5,191 million yen, versus cash used of 3,119 million yen for income taxes paid.
(Cash flow from investing activities)
Investing activities caused funds to decrease in the amount of 7,146 million yen (fiscal 2018: decrease by 20,652 million yen). This mainly reflected cash used of 6,919 million yen for the purchase of property, plant and equipment related to plant facilities.
(Cash flow from financing activities)
Financing activities caused funds to decrease in the amount of 3,425 million yen (fiscal 2018: decrease by 1,050 million yen).
4
This mainly reflected cash provided of 11,032 million yen from net increase in loans payable, versus cash used of 10,000 million yen for redemption of bonds, 2,305 million yen for purchase of treasury shares, and 2,106 million yen for cash dividends paid.
(Reference) Changes in cash-flow-related indices
FY2017 | FY2018 | FY2019 | |||
Capital adequacy ratio (%) | 62.4 | 61.1 | 58.4 | ||
Market-price-based capital adequacy ratio (%) | 83.2 | 52.0 | 37.7 | ||
Debt redemption period (years) | 1.1 | 1.6 | 1.8 | ||
Interest coverage ratio (times) | 211.76 | 162.60 | 128.42 | ||
Capital adequacy ratio: Equity capital ÷ Total assets |
Market-price-based capital adequacy ratio: Value of shares ÷ Total assets
Debt redemption period: Interest-bearing debt ÷ Cash flow
Interest coverage ratio: Cash flow ÷ Interest payment
Notes:
- Data on a consolidated basis is used for calculation.
- Value of shares is calculated based on the number of outstanding shares excluding treasury shares.
- Cash flow used is operating cash flow.
- Interest-bearingdebt includes all the debts recorded in the consolidated balance sheets for which the Company pays interest.
- Fundamental policy for profit allocation and dividends for fiscal 2019 and 2020
The Company has used royalty income, which has contributed significantly to earnings over the last few years, to acquire businesses and assets to drive future growth. However, due to factors such as depreciation of goodwill and other assets, sufficient returns on those investments are likely to take some time to materialize. However, looking at the Company's current and projected financial position, cash flow generation remains strong, which is likely to support a further increase in capital.
Given those factors, the Company's basic policy is to pay stable and continuous dividends to shareholders, while taking into account the need to replenish retained earnings to support future business growth and reinforce the business base. Using a combination of cash dividends and a flexible capital policy, the Company will target a total shareholder return ratio of 50% while also considering current business conditions.
For fiscal 2019, we plan to pay an ordinary dividend of 35 yen per share, supplemented by a commemorative dividend of 15 yen per share to mark the 60th anniversary of the SPOON brand, resulting in a full-year dividend of 50 yen per share (year-end dividend 25 yen). The Company also purchased 1,000,000 shares of treasury shares during the fiscal year.
For fiscal 2020, we plan to pay a full-year dividend of 50 yen per share, comprising an interim dividend of 25 yen and a year- end dividend of 25 yen.
5
2. Corporate Group
In fiscal 2019, there were no major changes in the operations of the Group (the Company and its affiliates).
3. Basic Stance on Selection of Accounting Standards
The Mitsui Sugar Group plans to continue using Japanese accounting standards for the time being, as they facilitate comparison with previous consolidated financial statements and the earnings of other companies. However, the Group intends to respond appropriately to the adoption of International Financial Reporting Standards (IFRS) based on developments in Japan and overseas.
6
4. Consolidated Financial Statements and Important Notes
(1) Consolidated balance sheets
(Million yen) | ||||||||||
FY2018 | FY2019 | |||||||||
(As of March 31, 2019) | (As of March 31, 2020) | |||||||||
Assets | ||||||||||
Current assets | ||||||||||
Cash and deposits | 15,232 | 15,520 | ||||||||
Notes and accounts receivable-trade | *4 | 9,861 | *4 | 9,280 | ||||||
Lease investment assets | 345 | 352 | ||||||||
Merchandise and finished goods | 19,473 | 22,634 | ||||||||
Work in process | 1,835 | 1,342 | ||||||||
Raw materials and supplies | 4,454 | 4,947 | ||||||||
Other | 2,662 | 3,084 | ||||||||
Allowance for doubtful accounts | (5) | (5) | ||||||||
Total current assets | 53,859 | 57,156 | ||||||||
Non-current assets | ||||||||||
Property, plant and equipment | ||||||||||
Buildings and structures | *2, *5 | 40,579 | *2, *5 | 40,418 | ||||||
Accumulated depreciation | (25,199) | (25,170) | ||||||||
Buildings and structures, net | 15,380 | 15,248 | ||||||||
Machinery, equipment and vehicles | *2, *5 | 83,270 | *2, *5 | 85,801 | ||||||
Accumulated depreciation | (65,215) | (66,973) | ||||||||
Machinery, equipment and vehicles, net | 18,054 | 18,827 | ||||||||
Tools, furniture and fixtures | 2,601 | 2,711 | ||||||||
Accumulated depreciation | (2,088) | (2,189) | ||||||||
Tools, furniture and fixtures, net | 513 | 521 | ||||||||
Land | *2 18,436 | *2 | 18,148 | |||||||
Leased assets | 912 | 915 | ||||||||
Accumulated depreciation | (492) | (587) | ||||||||
Leased assets, net | 420 | 327 | ||||||||
Construction in progress | 459 | 788 | ||||||||
Total property, plant and equipment | 53,265 | 53,862 | ||||||||
Intangible assets | ||||||||||
Goodwill | 5,388 | 4,639 | ||||||||
Other | 3,282 | 3,017 | ||||||||
Total intangible assets | 8,670 | 7,657 | ||||||||
Investments and other assets | ||||||||||
Investment securities | *1 | 12,786 | *1 | 11,413 | ||||||
Investments in capital of subsidiaries and associates | *1 | 2,128 | *1 | 2,191 | ||||||
Long-term loans receivable | 23 | 20 | ||||||||
Net defined benefit asset | 501 | 210 | ||||||||
Deferred tax assets | 1,008 | 1,881 | ||||||||
Lease investment assets | 6,912 | 6,560 | ||||||||
Other | 768 | 805 | ||||||||
Allowance for doubtful accounts | (58) | (53) | ||||||||
Total investments and other assets | 24,071 | 23,028 | ||||||||
Total non-current assets | 86,008 | 84,548 | ||||||||
Total assets | 139,867 | 141,705 |
7
(Million yen)
FY2018 | FY2019 | ||||||
(As of March 31, 2019) | (As of March 31, 2020) | ||||||
Liabilities | |||||||
Current liabilities | |||||||
Notes and accounts payable - trade | *4 | 9,408 | *4 | 8,044 | |||
Short-term loans payable | 4,850 | 6,103 | |||||
Current portion of bonds | 10,000 | - | |||||
Current portion of long-term loans payable | *2 | 1,120 | *2 | 2,120 | |||
Lease obligations | 97 | 99 | |||||
Accrued expenses | 3,799 | 4,035 | |||||
Income taxes payable | 1,411 | 2,424 | |||||
Provision for directors' bonuses | 52 | 36 | |||||
Asset retirement obligations | 108 | 28 | |||||
Other | 4,588 | 3,618 | |||||
Total current liabilities | 35,437 | 26,510 | |||||
Non-current liabilities | |||||||
Long-term loans payable | 2,550 | 11,330 | |||||
Lease obligations | 351 | 253 | |||||
Deferred tax liabilities | 1,589 | 471 | |||||
Provision for directors' retirement benefits | 268 | 223 | |||||
Net defined benefit liability | 2,812 | 2,893 | |||||
Asset retirement obligations | 305 | 282 | |||||
Other | 1,489 | 7,343 | |||||
Total non-current liabilities | 9,366 | 22,799 | |||||
Total liabilities | 44,804 | 49,309 | |||||
Net assets | |||||||
Shareholders' equity | |||||||
Capital stock | 7,083 | 7,083 | |||||
Capital surplus | 1,291 | 1,291 | |||||
Retained earnings | 79,157 | 79,469 | |||||
Treasury shares | (2,910) | (5,215) | |||||
Total shareholders' equity | 84,622 | 82,628 | |||||
Accumulated other comprehensive income | |||||||
Valuation difference on available-for-sale securities | 735 | 483 | |||||
Deferred gains or losses on hedges | 36 | (197) | |||||
Foreign currency translation adjustment | (99) | (63) | |||||
Remeasurements of defined benefit plans | 180 | (123) | |||||
Total accumulated other comprehensive income | 853 | 99 | |||||
Non-controlling interests | 9,587 | 9,668 | |||||
Total net assets | 95,063 | 92,395 | |||||
Total liabilities and net assets | 139,867 | 141,705 | |||||
8
- Consolidated statements of income and consolidated statements of comprehensive income (Consolidated statements of income)
(Million yen) | |||||||||
FY2018 | FY2019 | ||||||||
(From April 1, 2018 to | (From April 1, 2019 to | ||||||||
March 31, 2019) | March 31, 2020) | ||||||||
Net sales | 105,274 | 113,854 | |||||||
Cost of sales | 81,289 | 87,842 | |||||||
Gross profit | 23,985 | 26,011 | |||||||
Selling, general and administrative expenses | |||||||||
Sales commission | 1,621 | 1,577 | |||||||
Distribution expenses | 5,042 | 5,144 | |||||||
Salaries and bonuses | *1 | 3,860 | *1 | 4,253 | |||||
Provision for directors' bonuses | 52 | 36 | |||||||
Retirement benefit expenses | *1 | 162 | *1 | 212 | |||||
Other | *1 | 9,502 | *1 | 9,937 | |||||
Total selling, general and administrative expenses | 20,242 | 21,162 | |||||||
Operating income | 3,742 | 4,848 | |||||||
Non-operating income | |||||||||
Interest income | 5 | 1 | |||||||
Dividends income | 62 | 101 | |||||||
Royalty income | 7,467 | 1,344 | |||||||
Miscellaneous income | 240 | 276 | |||||||
Total non-operating income | 7,775 | 1,723 | |||||||
Non-operating expenses | |||||||||
Interest expenses | 74 | 86 | |||||||
Loss on retirement of non-current assets | 61 | 76 | |||||||
Share of loss of entities accounted for using equity method | 574 | 931 | |||||||
Facilities removal expenses | 250 | 312 | |||||||
Miscellaneous loss | 243 | 181 | |||||||
Total non-operating expenses | 1,204 | 1,589 | |||||||
Ordinary income | 10,314 | 4,982 | |||||||
Extraordinary income | |||||||||
Gain on disposal of non-current assets | - | 11 | |||||||
Gain on sales of investment securities | 73 | 209 | |||||||
Subsidy income | 70 | 379 | |||||||
Insurance claim income | *2 | 211 | *2 | 266 | |||||
Gain on change in equity | 88 | - | |||||||
Total extraordinary income | 443 | 867 | |||||||
Extraordinary losses | |||||||||
Loss on retirement of non-current assets | - | *3 | 359 | ||||||
Loss on reduction of non-current assets | 80 | 328 | |||||||
Loss on valuation of investment securities | - | 249 | |||||||
Loss on disaster | *2 | 207 | - | ||||||
Environmental expenses | - | 234 | |||||||
Total extraordinary losses | 288 | 1,171 | |||||||
Income before income taxes | 10,468 | 4,678 | |||||||
Income taxes-current | 3,374 | 3,849 | |||||||
Income taxes-deferred | (233) | (1,771) | |||||||
Total income taxes | 3,140 | 2,077 | |||||||
Profit | 7,328 | 2,600 | |||||||
Profit attributable to non-controlling interests | 465 | 177 | |||||||
Profit attributable to owners of parent | 6,862 | 2,422 | |||||||
9
(Consolidated statements of comprehensive income)
(Million yen) | ||
FY2018 | FY2019 | |
(From April 1, 2018 to | (From April 1, 2019 to | |
March 31, 2019) | March 31, 2020) | |
Profit | 7,328 | 2,600 |
Other comprehensive income |
Valuation difference on available-for-sale securities Deferred gains or losses on hedges
Foreign currency translation adjustment Remeasurements of defined benefit plans
Share of other comprehensive income of entities accounted for using equity method
(174) | (247) | ||||
52 | 141 | ||||
(126) | (120) | ||||
(98) | (340) | ||||
(79) | (203) | ||||
Total other comprehensive income | (425) | (769) |
Comprehensive income | 6,902 | 1,830 |
Comprehensive income attributable to: | ||
Owners of parent | 6,493 | 1,668 |
Non-controlling interests | 408 | 162 |
10
- Consolidated statements of changes in net assets FY2018 (From April 1, 2018 to March 31, 2019)
(Million yen)
Shareholders' equity | |||||||||||||||||
Common stock | Capital surplus | Retained earnings | Treasury shares | Total shareholders' | |||||||||||||
equity | |||||||||||||||||
Balance at the beginning of | 7,083 | 1,291 | 75,366 | (2,907) | 80,833 | ||||||||||||
period | |||||||||||||||||
Change of items during the | |||||||||||||||||
period | |||||||||||||||||
Dividends from surplus | (3,070) | (3,070) | |||||||||||||||
Profit attributable to owners | 6,862 | 6,862 | |||||||||||||||
of parent | |||||||||||||||||
Purchase of treasury shares | (2) | (2) | |||||||||||||||
Disposal of treasury shares | 0 | 0 | 0 | ||||||||||||||
Net changes of items other | |||||||||||||||||
than shareholders' equity | |||||||||||||||||
Total change of items during | - | 0 | 3,791 | (2) | 3,789 | ||||||||||||
the period | |||||||||||||||||
Balance at the end of the period | 7,083 | 1,291 | 79,157 | (2,910) | 84,622 | ||||||||||||
Accumulated other comprehensive income | |||||||||||||||||
Valuation | Deferred | Foreign | Remeasure- | Total | Non- | Total net | |||||||||||
difference on | accumulated | controlling | |||||||||||||||
gains or | currency | ments of | assets | ||||||||||||||
available- | other | interests | |||||||||||||||
losses on | translation | defined | |||||||||||||||
for-sale | comprehensive | ||||||||||||||||
hedges | adjustments | benefit plans | |||||||||||||||
securities | income | ||||||||||||||||
Balance at the beginning of | 896 | - | 347 | 263 | 1,507 | 7,530 | 89,871 | ||||||||||
period | |||||||||||||||||
Change of items during the | |||||||||||||||||
period | |||||||||||||||||
Dividends from surplus | (3,070) | ||||||||||||||||
Profit attributable to owners | 6,862 | ||||||||||||||||
of parent | |||||||||||||||||
Purchase of treasury shares | (2) | ||||||||||||||||
Disposal of treasury shares | 0 | ||||||||||||||||
Net changes of items other | (161) | 36 | (447) | (82) | (654) | 2,056 | 1,402 | ||||||||||
than shareholders' equity | |||||||||||||||||
Total change of items during | (161) | 36 | (447) | (82) | (654) | 2,056 | 5,191 | ||||||||||
the period | |||||||||||||||||
Balance at the end of the period | 735 | 36 | (99) | 180 | 853 | 9,587 | 95,063 | ||||||||||
11
FY2019 (From April 1, 2019 to March 31, 2020)
(Million yen)
Shareholders' equity | |||||||||||||||||
Common stock | Capital surplus | Retained earnings | Treasury shares | Total shareholders' | |||||||||||||
equity | |||||||||||||||||
Balance at the beginning of | 7,083 | 1,291 | 79,157 | (2,910) | 84,622 | ||||||||||||
period | |||||||||||||||||
Change of items during the | |||||||||||||||||
period | |||||||||||||||||
Dividends from surplus | (2,111) | (2,111) | |||||||||||||||
Profit attributable to owners | 2,422 | 2,422 | |||||||||||||||
of parent | |||||||||||||||||
Purchase of treasury shares | (2,305) | (2,305) | |||||||||||||||
Purchase of shares of | (583) | (583) | |||||||||||||||
consolidated subsidiaries | |||||||||||||||||
Sales of shares of | 583 | 583 | |||||||||||||||
consolidated subsidiaries | |||||||||||||||||
Net changes of items other | |||||||||||||||||
than shareholders' equity | |||||||||||||||||
Total change of items during | - | - | 311 | (2,305) | (1,993) | ||||||||||||
the period | |||||||||||||||||
Balance at the end of the period | 7,083 | 1,291 | 79,469 | (5,215) | 82,628 | ||||||||||||
Accumulated other comprehensive income | |||||||||||||||||
Valuation | Deferred | Foreign | Remeasure- | Total | Non- | Total net | |||||||||||
difference on | accumulated | controlling | |||||||||||||||
gains or | currency | ments of | assets | ||||||||||||||
available- | other | interests | |||||||||||||||
losses on | translation | defined | |||||||||||||||
for-sale | comprehensive | ||||||||||||||||
hedges | adjustments | benefit plans | |||||||||||||||
securities | income | ||||||||||||||||
Balance at the beginning of | 735 | 36 | (99) | 180 | 853 | 9,587 | 95,063 | ||||||||||
period | |||||||||||||||||
Change of items during the | |||||||||||||||||
period | |||||||||||||||||
Dividends from surplus | (2,111) | ||||||||||||||||
Profit attributable to owners | 2,422 | ||||||||||||||||
of parent | |||||||||||||||||
Purchase of treasury shares | (2,305) | ||||||||||||||||
Purchase of shares of | (583) | ||||||||||||||||
consolidated subsidiaries | |||||||||||||||||
Sales of shares of | 583 | ||||||||||||||||
consolidated subsidiaries | |||||||||||||||||
Net changes of items other | (252) | (234) | 35 | (303) | (754) | 80 | (673) | ||||||||||
than shareholders' equity | |||||||||||||||||
Total change of items during | (252) | (234) | 35 | (303) | (754) | 80 | (2,667) | ||||||||||
the period | |||||||||||||||||
Balance at the end of the period | 483 | (197) | (63) | (123) | 99 | 9,668 | 92,395 | ||||||||||
12
(4) Consolidated statements of cash flows
(Million yen) | |||||||||||
FY2018 | FY2019 | ||||||||||
(From April 1, 2018 to | (From April 1, 2019 to | ||||||||||
March 31, 2019) | March 31, 2020) | ||||||||||
Net cash provided by (used in) operating activities | |||||||||||
Income before income taxes | 10,468 | 4,678 | |||||||||
Depreciation and amortization | 4,660 | 5,191 | |||||||||
Loss on disaster | 207 | - | |||||||||
Loss (gain) on disposal of non-current assets | (9) | (16) | |||||||||
Loss on retirement of non-current assets | 61 | 436 | |||||||||
Loss (gain) on valuation of investment securities | - | 254 | |||||||||
Loss (gain) on sales of investment securities | (73) | (209) | |||||||||
Share of loss (profit) of entities accounted for using equity | 574 | 931 | |||||||||
method | |||||||||||
Loss (gain) on change in equity | (88) | - | |||||||||
Amortization of goodwill | 416 | 746 | |||||||||
Increase (decrease) in allowance for doubtful accounts | (2) | (4) | |||||||||
Increase (decrease) in provision for directors' bonuses | (18) | (16) | |||||||||
Increase (decrease) in net defined benefit liability | (177) | (116) | |||||||||
Interest and dividends income | (67) | (102) | |||||||||
Interest expenses | 74 | 86 | |||||||||
Subsidy income | (70) | (379) | |||||||||
Insurance claim income | (211) | (266) | |||||||||
Loss on reduction of non-current assets | 80 | 328 | |||||||||
Decrease (increase) in notes and accounts receivable-trade | 641 | 555 | |||||||||
Decrease (increase) in inventories | 253 | (3,187) | |||||||||
Increase (decrease) in notes and accounts payable-trade | 429 | (1,243) | |||||||||
Increase (decrease) in accrued consumption taxes | (1,035) | 243 | |||||||||
Other, net | 834 | 5,935 | |||||||||
Subtotal | 16,949 | 13,847 | |||||||||
Interest and dividends income received | 67 | 102 | |||||||||
Proceeds from subsidy income | 70 | 379 | |||||||||
Proceeds from insurance income | 211 | 266 | |||||||||
Payments for retirement of non-current assets | - | (159) | |||||||||
Interest expenses paid | (73) | (94) | |||||||||
Payments associated with disaster loss | (103) | (54) | |||||||||
Income taxes paid | (5,041) | (3,119) | |||||||||
Net cash provided by (used in) operating activities | 12,081 | 11,167 | |||||||||
13
(Million yen) | |||||||||||
FY2018 | FY2019 | ||||||||||
(From April 1, 2018 to | (From April 1, 2019 to | ||||||||||
March 31, 2019) | March 31, 2020) | ||||||||||
Net cash provided by (used in) investing activities | |||||||||||
Proceeds from withdrawal of time deposits | 200 | 300 | |||||||||
Purchase of property, plant and equipment | (8,170) | (6,919) | |||||||||
Proceeds from sales of property, plant and equipment | 13 | 313 | |||||||||
Purchase of investment securities | (2,833) | (283) | |||||||||
Proceeds from sales of investment securities | 94 | 254 | |||||||||
Payments for investments in capital of subsidiaries and | (2,193) | (548) | |||||||||
associates | |||||||||||
Payments for acquisition of businesses | (643) | (50) | |||||||||
Purchase of intangible assets | (13) | (106) | |||||||||
Purchase of shares of subsidiaries resulting in change in | *2 | (7,044) | - | ||||||||
scope of consolidation | |||||||||||
Other, net | (62) | (107) | |||||||||
Net cash provided by (used in) investing activities | (20,652) | (7,146) | |||||||||
Net cash provided by (used in) financing activities | |||||||||||
Increase in short-term loans payable | 9,200 | 10,684 | |||||||||
Decrease in short-term loans payable | (7,550) | (9,432) | |||||||||
Proceeds from long-term loans payable | 1,600 | 11,500 | |||||||||
Repayment of long-term loans payable | (1,134) | (1,720) | |||||||||
Redemption of bonds | - | (10,000) | |||||||||
Purchase of treasury shares | (2) | (2,305) | |||||||||
Cash dividends paid | (3,063) | (2,106) | |||||||||
Cash dividends paid to non-controlling shareholders | (1) | (79) | |||||||||
Payments from changes in ownership interests in | |||||||||||
subsidiaries that do not result in change in scope of | - | (1,091) | |||||||||
consolidation | |||||||||||
Proceeds from changes in ownership interests in subsidiaries | - | 1,221 | |||||||||
that do not result in change in scope of consolidation | |||||||||||
Other, net | (98) | (96) | |||||||||
Net cash provided by (used in) financing activities | (1,050) | (3,425) | |||||||||
Effect of exchange rate change on cash and cash equivalents | (14) | (7) | |||||||||
Net increase (decrease) in cash and cash equivalents | (9,636) | 588 | |||||||||
Cash and cash equivalents at beginning of period | 24,462 | 14,825 | |||||||||
Cash and cash equivalents at end of period | *1 14,825 | *1 15,414 | |||||||||
14
- Notes on consolidated financial statements (Notes on assumptions of a going concern)
None
(Important matters concerning preparation of consolidated financial statements)
1. Matters concerning scope of consolidation
I. Number and names of consolidated subsidiaries
Number of consolidated subsidiaries: 8 Names of consolidated subsidiaries:
Hokkaido Sugar Co., Ltd., Spoon Sugar Co., Ltd., Showa Sugar Co., Ltd., Hiranoya Corporation, SIS'88 Pte Ltd, Asian Blending Pte Ltd, TAISHO TECHNOS CO., LTD., and Nutri Co., Ltd.
-
Names, etc. of unconsolidated subsidiaries Names of unconsolidated subsidiaries
Hokuseki Co., Ltd., others
Reasons for exclusion from the scope of consolidation
All of these unconsolidated subsidiaries are small in size, and the total assets, net sales, net income (comparable to equity interest), retained earnings (comparable to equity interest) all do not have a significant impact on the consolidated financial statements.
2. Matters concerning application of equity method
-
Number of equity method affiliates and names of major companies Number of equity method affiliates: 9
Names of major equity method affiliates:
Nansei Togyo Co., Ltd., The Kumphawapi Sugar Co., Ltd., Kaset Phol Sugar Ltd. and COFCO Sugar Liaoning Co., Ltd.
In the fiscal year under review, the Company made new investments in HANY SUGAR, making it an entity accounted for using the equity method.
- Name, etc. of unconsolidated subsidiaries and affiliates that are not accounted for by the equity method
Names of major companies
Unconsolidated subsidiaries: Hokuseki Co., Ltd., others
Affiliates: | Ryutou Incorporation, Shin Chutoh Sangyo Co., Ltd., Seitokogyo-Kaikan Co., Ltd. |
and Murakami Shouten Co., Ltd. |
Reason for not applying the equity method
The influence that unconsolidated subsidiaries and affiliates which are out of the scope of equity method accounting have on consolidated financial statements is minimal, and their overall significance is low even if they are excluded from the scope of application of equity method, considering the amount of net income or loss (comparable to equity interest) and retained earnings (comparable to equity interest). Therefore, they are excluded from the scope of equity method accounting.
-
Matters concerning fiscal year of consolidated subsidiaries
The financial closing date of consolidated subsidiaries agrees with the consolidated financial closing date with the exception of Showa Sugar Co., Ltd. (June 30), SIS'88 Pte Ltd (December 31) and Asian Blending Pte Ltd (December 31). In the fiscal year under review, SIS'88 Pte Ltd and Asian Blending Pte Ltd changed their fiscal year-end from September 30 to December 31. To prepare the consolidated financial statements, financial statements based on closing dates are used for SIS' 88 Pte Ltd and Asian Blending Pte Ltd, while provisional financial results based on the fiscal year-end of December 31 are used for Showa Sugar Co., Ltd. However, we make adjustments necessary for consolidation regarding important transactions executed with Showa Sugar Co., Ltd., SIS'88 Pte Ltd and Asian Blending Pte Ltd between January 1 and the consolidated closing date. - Matters concerning accounting standard
I. Evaluation standard and evaluation method of important assets -
Securities Available-for-sale securities
Securities with market value
-
Securities Available-for-sale securities
Market value method based on market prices as of the closing date. (Valuation difference is reported as a component of shareholders' equity, and cost of securities sold is calculated by the moving-average method.)
Securities without market value
Cost method based on the moving-average method
-
Derivatives
Market value method in principle
15
-
Inventories
Evaluated by the cost method based on the gross average method
Amounts in the balance sheets are calculated by devaluating book values based on a decrease in profitability.
-
Inventories
- Method of depreciation of important depreciable assets
-
Property, plant and equipment (excluding leased assets)
The Company and its consolidated subsidiaries mainly use the straight-line method. Useful life of major categories is as follows:
Buildings and structures 15-47 years
Machinery, equipment and vehicles 4-10 years - Leased assets
Lease period is used as useful life, and the straight-line method is used with zero residual value.
-
Property, plant and equipment (excluding leased assets)
- Standard to record important allowance and provision
-
Allowance for doubtful accounts
In preparation for bad debt, for general accounts receivable, a loan loss ratio is taken into account while for certain receivables such as doubtful accounts receivable, collectability of each receivable is considered in recording the estimated uncollectible amount. - Provision for directors' bonuses
In preparation for the payment of directors' bonuses, a provision thereof is recorded based on the estimated amount of payment in this fiscal year. - Provision for directors' retirement benefits
In preparation for the payment of directors' retirement benefits, some consolidated subsidiaries post 100% of the necessary amount to be paid at the end of the fiscal year in accordance with internal rules.
-
Allowance for doubtful accounts
IV. Accounting treatment of retirement benefits
In preparation for the payment of employee retirement benefits, an amount is booked based on the projected amount of retirement benefit liabilities and pension assets as of the end of the fiscal year.
When calculating retirement benefit liabilities, the benefit formula method is used to allocate expected benefit payments to the period until this fiscal year end.
Past service cost is expensed by the straight-line method over a certain period (five years) up to a ceiling of employees' average remaining service period at the time of accrual.
Actuarial difference is first prorated by the straight-line method over a certain period (10 years) up to a ceiling of employees' average remaining service period in each fiscal year at the time of accrual, and the prorated amount is expensed from the fiscal year after the year of accrual.
Some consolidated subsidiaries use the compendium method.
- Standard to record important income and expenses
Standard to record income from finance lease transactions
Net sales and cost of sales are recorded when a lease fee is received.
VI. Standard to convert important foreign-currency-denominated assets and liabilities into local currency
Foreign currency receivable and payable is converted into yen based on the spot exchange rate as of the consolidated closing date, and translation is recorded as income or expenses.
Assets and liabilities of foreign subsidiaries and other overseas entities are converted into yen based on the spot exchange rate as of the consolidated closing date, while income and expenses are converted into yen based on the average exchange rate during the fiscal year. Differences in translation are booked under foreign currency translation adjustment and non- controlling interests in the net assets section.
16
VII. Method of important hedge accounting
-
Method of hedge accounting
Deferred hedge accounting is adopted. The designation method is applied for foreign exchange contracts which meet the requirements. - Hedging instruments, hedged items and hedging policy
(Hedging instruments) | (Hedged items) |
Foreign exchange forwards | Foreign-currency-denominated forecasted transaction and foreign currency receivable |
and payable | |
Commodity swap | Commodity forecasted transaction |
(Hedging policy) |
Foreign exchange forwards are used to hedge the foreign currency risk within the range required based on the sales plan for export and import transactions.
Commodity swaps are used to hedge the commodity price fluctuation risk within the range required based on the sales plan.
(iii) Method to evaluate effectiveness of hedging
We assume that the effectiveness of hedging is secured with respect to foreign exchange forwards since they are used for a single currency and single amount and for commodity swaps as they are transacted for a single product and single period.
VIII. Method and period of goodwill amortization
Goodwill is amortized using the straight-line method over a period of 5 to 15 years. However, immaterial goodwill is amortized in its entirety in the fiscal year of recognition.
IX. Scope of funds in the consolidated statements of cash flows
Funds consist of cash on hand, deposits cashable anytime and short-term investments (to be redeemed within three months from the date of acquisition) that are easily realizable and have limited risk of changes in value.
-
Other important matters for preparation of consolidated financial statements Accounting for consumption taxes
Consumption taxes are recorded net of tax.
(Consolidated balance sheets)
*1. Item concerning unconsolidated subsidiaries and the affiliates is as follows.
FY2018 | FY2019 | |||||||
(As of March 31, 2019) | (As of March 31, 2020) | |||||||
Investment securities (shares) | 9,805 million yen | 9,065 | million yen | |||||
Investments in capital of subsidiaries and | 2,128 million yen | 2,191 | million yen | |||||
associates | ||||||||
*2. Collateral assets and secured liabilities | ||||||||
Assets pledged as collateral are as follows. | ||||||||
FY2018 | FY2019 | |||||||
(As of March 31, 2019) | (As of March 31, 2020) | |||||||
Buildings and structures | 2,489 million yen | ( 2,489 million yen ) | - million yen | ( - million yen | ) | |||
Machinery, equipment and vehicles | 4,724 | ( 4,724 | ) | - | ( - | ) | ||
Land | 730 | ( | 730 | ) | - | ( - | ) | |
Total | 7,944 | ( 7,944 | ) | - | ( - | ) | ||
Secured liabilities are as follows. | ||||||||
FY2018 | FY2019 | |||||||
(As of March 31, 2019) | (As of March 31, 2020) | |||||||
Current portion of long-term loans payable | 500 million yen | ( | 500 million yen) | - million yen | ( | - million yen | ) | |
Total | 500 | ( | 500 | ) | - | ( | - | ) |
Of the above, the figures in parentheses represent loans secured by the plant foundation and the respective amount of liability.
17
*3. Guarantee obligation
Joint guaranty for loans from financial institutions of a company other than consolidated subsidiaries is as follows.
FY2018 | FY2019 | ||
(As of March 31, 2019) | (As of March 31, 2020) | ||
Kaset Phol Sugar Ltd. | 3,027 million yen | 6,729 | million yen |
Hokuee Co., Ltd. | 13 | 13 | |
Total | 3,040 | 6,742 |
*4. Notes maturing on the final day of the consolidated fiscal year
Notes reaching maturity on the balance sheet date of the consolidated fiscal year are settled in the Company's accounts on the clearance date. As the balance sheet date for the fiscal year ended March 31, 2019 was a holiday for financial institutions, the following notes maturing on the balance sheet date of the consolidated fiscal year were included in the balance as of the end of the fiscal year ended March 31, 2019.
FY2018 | FY2019 | |
(As of March 31, 2019) | (As of March 31, 2020) | |
Notes receivable - trade | 106 million yen | - million yen |
Notes payable - trade | 60 | - |
*5. Reduction entry of property, plant and equipment and intangible assets
With the receipt of sugar production promotion subsidy by our consolidated subsidiaries, reduction entries made that are deducted from the acquisition prices are as follows.
FY2018 | FY2019 | |
(As of March 31, 2019) | (As of March 31, 2020) | |
Buildings and structures | 89 million yen | 89 million yen |
Machinery, equipment and vehicles | 2,165 | 2,493 |
(Consolidated statements of income)
*1. Research and development expenses included in selling, general and administrative expenses
FY2018 | FY2019 |
(From April 1, 2018 to March 31, 2019) | (From April 1, 2019 to March 31, 2020) |
1,092 million yen | 1,093 million yen |
*2. Insurance claim income and loss on disaster | |
FY2018 (From April 1, 2018 to March 31, 2019) |
The Company booked disaster-related costs arising from Typhoon Jebi and the Hokkaido Eastern Iburi earthquake. Insurance claim income for the damage totaled 211 million yen, which was booked as extraordinary income.
FY2019 (From April 1, 2019 to March 31, 2020)
The Company booked extraordinary income of 266 million yen for insurance claim income related to Typhoon Jebi in 2018.
*3. Loss on retirement of non-current assets FY2019 (From April 1, 2019 to March 31, 2020)
Expenses related to the removal of production facilities at the former Okayama Plant and the former Nagata Plant.
18
(Consolidated statements of changes in net assets) FY2018 (From April 1, 2018 to March 31, 2019)
1. Matters concerning type and total number of outstanding shares and treasury shares
Number of shares at | Number of increased | Number of | Number of shares at | |
the beginning of | shares during | decreased shares | the end of FY2018 | |
FY2018 | FY2018 | during FY2018 | ||
(Thousand shares) | (Thousand shares) | (Thousand shares) | (Thousand shares) | |
Outstanding shares | ||||
Common shares | 28,333 | - | - | 28,333 |
Total | 28,333 | - | - | 28,333 |
Treasury shares | ||||
Common shares | 1,630 | 0 | 0 | 1,631 |
Total | 1,630 | 0 | 0 | 1,631 |
Notes: |
- 0 thousand shares of increase in common shares of treasury shares are as a result of acquisition of fractional shares (+ 0 thousand shares).
-
0 thousand shares of decrease in common shares of treasury shares are as a result of the request of purchase for fractional shares (- 0 thousand shares).
2. Matters concerning cash dividends - Dividends paid
Total dividends | Dividend per share | ||||||||||||||
(Resolution) | Type of shares | paid | Base date | Effective date | |||||||||||
(Million yen) | (Yen) | ||||||||||||||
Ordinary general meeting | Common | ||||||||||||||
of shareholders held on | 1,602 | 60.0 | March 31, 2018 | June 27, 2018 | |||||||||||
shares | |||||||||||||||
June 26, 2018 | |||||||||||||||
Board of directors' | Common | ||||||||||||||
meeting held on October | 1,468 | 55.0 | September 30, 2018 | December 3, 2018 | |||||||||||
shares | |||||||||||||||
31, 2018 | |||||||||||||||
(2) Dividends whose base date is in fiscal 2018 and whose effective date falls on fiscal 2019 | |||||||||||||||
(Resolution) | Type of | Total dividends | Dividend | Dividend per | |||||||||||
paid | share | Base date | Effective date | ||||||||||||
shares | resource | ||||||||||||||
(Million yen) | (Yen) | ||||||||||||||
Ordinary general | |||||||||||||||
meeting of | Common | 1,468 | Retained | 55.0 | March 31, 2019 | June 26, 2019 | |||||||||
shareholders held | shares | earnings | |||||||||||||
on June 25, 2019 |
19
FY2019 (From April 1, 2019 to March 31, 2020)
1. Matters concerning type and total number of outstanding shares and treasury shares
Number of shares at | Number of increased | Number of | Number of shares at | |
the beginning of | shares during | decreased shares | the end of FY2019 | |
FY2019 | FY2019 | during FY2019 | ||
(Thousand shares) | (Thousand shares) | (Thousand shares) | (Thousand shares) | |
Outstanding shares | ||||
Common shares | 28,333 | - | - | 28,333 |
Total | 28,333 | - | - | 28,333 |
Treasury shares | ||||
Common shares | 1,631 | 1,000 | - | 2,631 |
Total | 1,631 | 1,000 | - | 2,631 |
Note: The increase of 1,000 thousand common shares (treasury shares) reflects the acquisition of 1,000 thousand treasury shares in accordance with a resolution of the Board of Directors and the acquisition of 0 thousand fractional shares.
2. Matters concerning cash dividends
- Dividends paid
Total dividends | Dividend per share | ||||||||||||||
(Resolution) | Type of shares | paid | Base date | Effective date | |||||||||||
(Million yen) | (Yen) | ||||||||||||||
Ordinary general meeting | Common | ||||||||||||||
of shareholders held on | 1,468 | 55.0 | March 31, 2019 | June 26, 2019 | |||||||||||
shares | |||||||||||||||
June 25, 2019 | |||||||||||||||
Board of directors' | Common | ||||||||||||||
meeting held on October | 642 | 25.0 | September 30, 2019 | December 6, 2019 | |||||||||||
shares | |||||||||||||||
31, 2019 | |||||||||||||||
(2) Dividends whose base date is in fiscal 2019 and whose effective date falls on fiscal 2020 | |||||||||||||||
Type of | Total dividends | Dividend | Dividend per | ||||||||||||
(Resolution) | paid | share | Base date | Effective date | |||||||||||
shares | resource | ||||||||||||||
(Million yen) | (Yen) | ||||||||||||||
Ordinary general | |||||||||||||||
meeting of | Common | 642 | Retained | 25.0 | March 31, 2020 | June 24, 2020 | |||||||||
shareholders held | shares | earnings | |||||||||||||
on June 23, 2020 |
3. Significant changes in amounts of shareholders' equity
The Company completed a share buyback on September 25, 2019, in accordance with a resolution approved by the Board of Directors on May 14, 2019.
The increase of 1,000 thousand shares and 2,304 million yen due to the acquisition is included in the consolidated financial statements for the fiscal year under review. Due to the acquisition, treasury shares increased by 2,305 million yen during the fiscal year, resulting in treasury shares of 5,215 million yen as of March 31, 2020.
(Consolidated statements of cash flows)
*1. Relationship between ending balance of cash and cash equivalents and its amount in the consolidated balance sheets
FY2018 | FY2019 | |
(From April 1, 2018 to March 31, 2019) | (From April 1, 2019 to March 31, 2020) | |
Cash and deposits | 15,232 million yen | 15,520 million yen |
Time deposit whose deposit term exceeds | (406) | (106) |
three months | ||
Cash and cash equivalents | 14,825 | 15,414 |
20
*2. Breakdown of major assets and liabilities at companies that became consolidated subsidiaries during the fiscal year ended March 31, 2019 through the purchase of shares
Major constituents of assets and liabilities of SIS' 88 Pte Ltd and Asian Blending Pte Ltd when they were newly consolidated through the purchase of shares, and the relationship between the stock acquisition price and payment (net) for the purchase are as follows.
Current assets | 5,129 | million yen |
Non-current assets | 3,826 | |
Goodwill | 4,030 | |
Current liabilities | (2,964) | |
Non-current liabilities | (492) | |
Foreign currency translation adjustment | 99 | |
Non-controlling interests | (1,649) | |
Stock acquisition price | 7,979 | |
Cash and cash equivalents of newly consolidated subsidiaries | (934) | |
Net: Purchase of shares of subsidiaries resulting in change in scope of | ||
7,044 | ||
consolidation | ||
21
(Segment information, etc.) [Segment information]
1. Overview of reportable segments
Reportable segments of the Company are structural units of the Company whose separate financial information is available, and which are subject to regular review by the Board of Directors to evaluate a decision on allocation of management resources and financial results.
The Company and its consolidated subsidiaries are engaged in manufacturing and sales of sugar and food ingredients and lease of real estate. Organizations are established based on these products and services.
Therefore, reportable segments of the Company are the "Sugar Business," "Food Science Business" and "Real Estate Business."
The Sugar Business manufactures and sells raw sugar, processed sugar and sugar-related products. The Food Science Business manufactures and sells naturally-derived sweeteners, food colorings, flavorings, sugar cane extract, agar, bio-based products, nutritional care supplements and nutritional products for patients with dysphagia. The Real Estate Business mainly leases land, retail premises and offices.
2. Calculation method of net sales, income/loss, assets, liabilities and other items of each reportable segment
Accounting of reportable business segments is basically the same as those described in the "Important matters concerning preparation of consolidated financial statements."
Income of reportable segments is on an operating-income basis. Intersegment sales and transfer is based on the current market price.
3. Information on amounts of net sales, income/loss, assets, liabilities and other items by each reportable segment FY2018 (From April 1, 2018 to March 31, 2019)
(Million yen) | |||||||
Reportable Segment | Amount | ||||||
recorded in | |||||||
Food | |||||||
Sugar | Real Estate | Adjustments | consolidated | ||||
Business | Science | Business | Total | financial | |||
Business | statements | ||||||
Net sales | |||||||
Net sales to third-party | 84,117 | 19,200 | 1,956 | 105,274 | - | 105,274 | |
customers | |||||||
Intersegment net sales and | 58 | 131 | 43 | 232 | (232) | - | |
transfer | |||||||
Total | 84,176 | 19,331 | 1,999 | 105,507 | (232) | 105,274 | |
Segment profit | 2,350 | 471 | 921 | 3,742 | - | 3,742 | |
Segment assets | 89,612 | 17,360 | 19,731 | 126,704 | 13,162 | 139,867 | |
Other items | |||||||
Depreciation and | 3,915 | 506 | 237 | 4,659 | 1 | 4,660 | |
amortization | |||||||
Increase of property, plant | |||||||
and equipment and | 5,068 | 1,277 | 230 | 6,576 | 132 | 6,708 | |
intangible assets | |||||||
Notes: |
- Some adjustments were made between segment profit and operating income recorded in consolidated statements of income.
- Adjustments of segment assets of 13,162 million yen indicate assets of the entire Company not allocated to each reportable segment. They consist of invested assets using surplus fund (cash and deposits), long-term investment fund (investment securities) and assets concerning the administration department.
- Net sales and segment assets of the Sugar Business reportable segment include 3,419 million yen and 12,780 million yen, respectively, as a result of the consolidation of SIS'88 Pte Ltd and its consolidated subsidiary Asian Blending Pte Ltd during the fiscal year.
22
FY2019 (From April 1, 2019 to March 31, 2020)
(Million yen) | |||||||
Reportable Segment | Amount | ||||||
recorded in | |||||||
Food | |||||||
Sugar | Real Estate | Adjustments | consolidated | ||||
Business | Science | Business | Total | financial | |||
Business | statements | ||||||
Net sales | |||||||
Net sales to third-party | 92,145 | 19,766 | 1,942 | 113,854 | - | 113,854 | |
customers | |||||||
Intersegment net sales and | 42 | 138 | 67 | 248 | (248) | - | |
transfer | |||||||
Total | 92,188 | 19,904 | 2,009 | 114,102 | (248) | 113,854 | |
Segment profit | 3,240 | 679 | 928 | 4,848 | - | 4,848 | |
Segment assets | 91,581 | 17,374 | 19,006 | 127,962 | 13,742 | 141,705 | |
Other items | |||||||
Depreciation and | 4,380 | 573 | 236 | 5,190 | 1 | 5,191 | |
amortization | |||||||
Increase of property, plant | |||||||
and equipment and | 5,614 | 483 | 69 | 6,167 | 111 | 6,278 | |
intangible assets | |||||||
Notes: |
- Some adjustments were made between segment profit and operating income recorded in consolidated statements of income.
- Adjustments of segment assets of 13,742 million yen indicate assets of the entire Company not allocated to each reportable segment. They consist of invested assets using surplus fund (cash and deposits), long-term investment fund (investment securities) and assets concerning the administration department.
23
[Related information]
FY2018 (From April 1, 2018 to March 31, 2019)
-
Information by each product and service
Description is omitted since it is explained in the segment information section. - Information by each region
-
Net sales
Description is omitted since net sales to third party customers outside Japan account for less than 10% of the consolidated net sales. - Property, plant and equipment
Description is omitted since property, plant and equipment located outside Japan accounts for less than 10% of the property, plant and equipment on the consolidated balance sheets.
-
Net sales
- Information by major customer
(Million yen) | ||
Name of customer | Net sales | Relevant segment |
Mitsui & Co., Ltd. | 49,578 | Sugar Business and Food Science Business |
Sojitz Corporation | 10,359 | Sugar Business |
FY2019 (From April 1, 2019 to March 31, 2020)
-
Information by each product and service
Description is omitted since it is explained in the segment information section. - Information by each region
-
Net sales
Description is omitted since net sales to third party customers outside Japan account for less than 10% of the consolidated net sales. - Property, plant and equipment
Description is omitted since property, plant and equipment located outside Japan accounts for less than 10% of the property, plant and equipment on the consolidated balance sheets.
-
Net sales
- Information by major customer
(Million yen) | ||
Name of customer | Net sales | Relevant segment |
Mitsui & Co., Ltd. | 49,041 | Sugar Business and Food Science Business |
Sojitz Corporation | 10,209 | Sugar Business |
24
[Information on impairment loss on non-current assets by each reportable segment] FY2018 (From April 1, 2018 to March 31, 2019)
None
FY2019 (From April 1, 2019 to March 31, 2020)
None
[Information on amortization of goodwill and unamortized balance of goodwill by each reportable segment] FY2018 (From April 1, 2018 to March 31, 2019)
(Million yen) | ||||||
Reportable segment | Corporate | Amount recorded | ||||
in consolidated | ||||||
Sugar | Food Science | Real Estate | and | |||
Total | financial | |||||
eliminations | ||||||
Business | Business | Business | statements | |||
Amortization during | 67 | 348 | - | 416 | - | 416 |
the period | ||||||
Balance at the end of | 3,872 | 1,515 | - | 5,388 | - | 5,388 |
current period | ||||||
FY2019 (From April 1, 2019 to March 31, 2020)
(Million yen) | |||||||
Reportable segment | Corporate | Amount recorded | |||||
in consolidated | |||||||
Sugar | Food Science | Real Estate | and | ||||
Total | financial | ||||||
eliminations | |||||||
Business | Business | Business | statements | ||||
Amortization during | 259 | 487 | - | 746 | - | 746 | |
the period | |||||||
Balance at the end of | 3,561 | 1,077 | - | 4,639 | - | 4,639 | |
current period | |||||||
[Information on gain on negative goodwill by each reportable segment] | |||||||
FY2018 (From April 1, 2018 to March 31, 2019) | |||||||
None | |||||||
FY2019 (From April 1, 2019 to March 31, 2020) | |||||||
None |
25
(Per-share information)
FY2018 | FY2019 | ||
(From April 1, 2018 to March 31, 2019) | (From April 1, 2019 to March 31, 2020) | ||
Net assets per share | 3,201.11 yen | Net assets per share | 3,218.77 yen |
Earnings per share | 257.00 yen | Earnings per share | 93.27 yen |
Diluted earnings per share is not mentioned since dilutive shares | Diluted earnings per share is not mentioned since dilutive shares | ||
do not exist. | do not exist. |
Note: The basis of calculation of net assets per share and earnings per share is as follows.
FY2018 | FY2019 | |
(As of March 31, 2019) | (As of March 31, 2020) | |
Total of net assets section (million yen) | 95,063 | 92,395 |
Amount deducted from total of net assets | 9,587 | 9,668 |
section (million yen) | ||
(Of the above, non-controlling | (9,587) | (9,668) |
interests (million yen)) | ||
Net assets attributable to common shares | 85,475 | 82,727 |
at period end (million yen) | ||
Number of common shares at period end | ||
used in calculating net assets per share | 26,701,940 | 25,701,653 |
(shares) | ||
FY2018 | FY2019 | |
(From April 1, 2018 to March 31, 2019) | (From April 1, 2019 to March 31, 2020) | |
Profit attributable to owners of parent | 6,862 | 2,422 |
(million yen) | ||
Amount not attributable to common | - | - |
shareholders | ||
Profit attributable to owners of parent | ||
attributable to common shares (million | 6,862 | 2,422 |
yen) | ||
Average number of shares outstanding | 26,702,257 | 25,973,526 |
(shares) | ||
(Important subsequent events) | ||
None |
26
5. Non-consolidated Financial Statements and Important Notes
(1) Balance sheets
(Million yen) | ||||||||
FY2018 | FY2019 | |||||||
(As of March 31, 2019) | (As of March 31, 2020) | |||||||
Assets | ||||||||
Current assets | ||||||||
Cash and deposits | 10,535 | 10,669 | ||||||
Accounts receivable - trade | 2,395 | 2,353 | ||||||
Lease investment assets | 345 | 352 | ||||||
Merchandise and finished goods | 3,864 | 3,459 | ||||||
Goods in transit | 76 | 95 | ||||||
Work in process | 1,330 | 1,125 | ||||||
Raw materials and supplies | 1,180 | 2,966 | ||||||
Raw materials in transit | 1,417 | - | ||||||
Prepaid expenses | 172 | 52 | ||||||
Short-term loans receivable from subsidiaries and associates | 2,800 | 4,400 | ||||||
Current portion of long-term loans receivable from | 200 | 200 | ||||||
subsidiaries and associates | ||||||||
Other | 63 | 402 | ||||||
Total current assets | 24,382 | 26,076 | ||||||
Non-current assets | ||||||||
Property, plant and equipment | ||||||||
Buildings | 7,893 | 7,781 | ||||||
Structures | 934 | 899 | ||||||
Machinery and equipment | 11,093 | 11,429 | ||||||
Vehicles | 5 | 5 | ||||||
Tools, furniture and fixtures | 338 | 324 | ||||||
Land | 17,182 | 16,893 | ||||||
Leased assets | 367 | 291 | ||||||
Construction in progress | 135 | 412 | ||||||
Total property, plant and equipment | 37,951 | 38,038 | ||||||
Intangible assets | 415 | 262 | ||||||
Investments and other assets | ||||||||
Investment securities | 2,517 | 1,892 | ||||||
Shares of subsidiaries and associates | 19,829 | 20,289 | ||||||
Investments in capital | 17 | 15 | ||||||
Investments in capital of subsidiaries and associates | 2,193 | 2,741 | ||||||
Long-term loans receivable from subsidiaries and | 800 | 600 | ||||||
associates | ||||||||
Long-term prepaid expenses | 23 | 0 | ||||||
Prepaid pension cost | 242 | 338 | ||||||
Deferred tax assets | - | 861 | ||||||
Lease investment assets | 6,912 | 6,560 | ||||||
Other | 294 | 296 | ||||||
Allowance for doubtful accounts | (17) | (17) | ||||||
Total investments and other assets | 32,812 | 33,578 | ||||||
Total non-current assets | 71,179 | 71,879 | ||||||
Total assets | 95,561 | 97,955 |
27
(Million yen) | |||||
FY2018 | FY2019 | ||||
(As of March 31, 2019) | (As of March 31, 2020) | ||||
Liabilities | |||||
Current liabilities | |||||
Accounts payable - trade | 3,204 | 1,756 | |||
Current portion of bonds | 10,000 | - | |||
Current portion of long-term loans payable | 200 | 950 | |||
Lease obligations | 81 | 82 | |||
Accounts payable - other | 931 | 651 | |||
Accrued expenses | 2,228 | 2,065 | |||
Income taxes payable | 1,043 | 2,013 | |||
Advances received | 71 | 72 | |||
Deposits received | 171 | 168 | |||
Provision for directors' bonuses | 44 | 24 | |||
Asset retirement obligations | 107 | 27 | |||
Other | 940 | 342 | |||
Total current liabilities | 19,023 | 8,155 | |||
Non-current liabilities | |||||
Long-term loans payable | 150 | 8,600 | |||
Lease obligations | 318 | 235 | |||
Deferred tax liabilities | 775 | - | |||
Provision for retirement benefits | 697 | 736 | |||
Asset retirement obligations | 127 | 105 | |||
Long-term suspense receipt | - | 5,931 | |||
Other | 1,301 | 1,230 | |||
Total non-current liabilities | 3,370 | 16,839 | |||
Total liabilities | 22,393 | 24,995 | |||
Net assets | |||||
Shareholders' equity | |||||
Capital stock | 7,083 | 7,083 | |||
Capital surplus | |||||
Legal capital surplus | 1,177 | 1,177 | |||
Other capital surplus | 0 | 0 | |||
Total capital surplus | 1,178 | 1,178 | |||
Retained earnings | |||||
Legal retained earnings | 1,033 | 1,033 | |||
Other retained earnings | |||||
Reserve for price fluctuation | 200 | 200 | |||
Reserve for advanced depreciation of non-current assets | 3,380 | 3,320 | |||
General reserve | 22,680 | 22,680 | |||
Retained earnings brought forward | 39,841 | 42,245 | |||
Total retained earnings | 67,135 | 69,479 | |||
Treasury shares | (2,910) | (5,215) | |||
Total shareholders' equity | 72,486 | 72,525 | |||
Valuation and translation adjustments | |||||
Valuation difference on available-for-sale securities | 681 | 429 | |||
Deferred gains or losses on hedges | - | 5 | |||
Total valuation and translation adjustments | 681 | 435 | |||
Total net assets | 73,167 | 72,960 | |||
Total liabilities and net assets | 95,561 | 97,955 |
28
(2) Statements of income
(Million yen) | |||
FY2018 | FY2019 | ||
(From April 1, 2018 to | (From April 1, 2019 to | ||
March 31, 2019) | March 31, 2020) | ||
Net sales | 61,168 | 59,157 | |
Cost of sales | 47,878 | 44,516 | |
Gross profit | 13,289 | 14,641 | |
Selling, general and administrative expenses | 10,452 | 10,585 | |
Operating income | 2,837 | 4,055 | |
Non-operating income
Interest and dividend income
Interest on securities
Royalty income
Other
Total non-operating income
Non-operating expenses
Interest expenses
Interest on bonds
Loss on retirement of non-current assets Facilities removal expenses Environmental expenses
Other
Total non-operating expenses Ordinary income Extraordinary income
Gain on disposal of non-current assets
169821
0-
7,466 | 1,341 |
93 | 196 |
7,730 | 2,359 |
7 | 18 |
27 | 18 |
45 | 49 |
186 | 142 |
110-
63 | 146 |
439 | 376 |
10,127 | 6,038 |
- | 11 |
Gain on sales of investment securities | 72 | 209 | |||||
Gain on sales of shares of subsidiaries and associates | - | 426 | |||||
Insurance claim income | 177 | 255 | |||||
Total extraordinary income | 249 | 902 | |||||
Extraordinary losses | |||||||
Loss on retirement of non-current assets | - | 359 | |||||
Loss on valuation of investment securities | - | 236 | |||||
Loss on disaster | 148 | - | |||||
Total extraordinary losses | 148 | 596 | |||||
Income before income taxes | 10,228 | 6,345 | |||||
Income taxes - current | 2,976 | 3,427 | |||||
Income taxes - deferred | (75) | (1,537) | |||||
Total income taxes | 2,901 | 1,890 | |||||
Net income | 7,326 | 4,455 | |||||
29
(3)Statements of changes in net assets
FY2018 (From April 1, 2018 to March 31, 2019)
(Million yen)
Shareholders' equity | ||||||||
Capital surplus | Retained earnings | |||||||
Other retained earning | ||||||||
Capital stock | Legal capital | Other capital | Total capital | Legal retained | Reserve for | |||
Reserve for | advanced | |||||||
surplus | surplus | surplus | earnings | |||||
depreciation | General reserve | |||||||
price fluctuation | ||||||||
of non- | ||||||||
current assets | ||||||||
Balance at the beginning of current | 7,083 | 1,177 | 0 | 1,178 | 1,033 | 200 | 3,442 | 22,680 |
period | ||||||||
Changes of items during the period | ||||||||
Reversal of reserve for advanced | (61) | |||||||
depreciation of non-current assets | ||||||||
Dividends from surplus | ||||||||
Net income | ||||||||
Purchase of treasury shares | ||||||||
Disposal of treasury shares | 0 | 0 | ||||||
Net changes of items other than | ||||||||
shareholders' equity | ||||||||
Total changes of items during the | - | - | 0 | 0 | - | - | (61) | - |
period | ||||||||
Balance at the end of current period | 7,083 | 1,177 | 0 | 1,178 | 1,033 | 200 | 3,380 | 22,680 |
Shareholders' equity | Valuation and translation adjustments | |||||||
Retained earnings | ||||||||
Other retained | Total | Valuation | Deferred gains | Total valuation | Total net assets | |||
earnings | Treasury shares | difference on | ||||||
Total retained | shareholders' | or losses on | and translation | |||||
Retained | available-for- | |||||||
equity | hedges | adjustments | ||||||
earnings | earnings | sale securities | ||||||
brought | ||||||||
forward | ||||||||
Balance at the beginning of current | 35,524 | 62,879 | (2,907) | 68,232 | 810 | - | 810 | 69,043 |
period | ||||||||
Changes of items during the period | ||||||||
Reversal of reserve for advanced | 61 | - | - | - | ||||
depreciation of non-current assets | ||||||||
Dividends from surplus | (3,070) | (3,070) | (3,070) | (3,070) | ||||
Net income | 7,326 | 7,326 | 7,326 | 7,326 | ||||
Purchase of treasury shares | (2) | (2) | (2) | |||||
Disposal of treasury shares | 0 | 0 | 0 | |||||
Net changes of items other than | (129) | - | (129) | (129) | ||||
shareholders' equity | ||||||||
Total changes of items during the | 4,317 | 4,256 | (2) | 4,253 | (129) | - | (129) | 4,124 |
period | ||||||||
Balance at the end of current period | 39,841 | 67,135 | (2,910) | 72,486 | 681 | - | 681 | 73,167 |
30
FY2019 (From April 1, 2019 to March 31, 2020)
(Million yen)
Shareholders' equity | ||||||||
Capital surplus | Retained earnings | |||||||
Other retained earning | ||||||||
Capital stock | Legal capital | Other capital | Total capital | Legal retained | Reserve for | |||
Reserve for | advanced | |||||||
surplus | surplus | surplus | earnings | General reserve | ||||
depreciation | ||||||||
price fluctuation | ||||||||
of non- | ||||||||
current assets | ||||||||
Balance at the beginning of current | 7,083 | 1,177 | 0 | 1,178 | 1,033 | 200 | 3,380 | 22,680 |
period | ||||||||
Changes of items during the period | ||||||||
Reversal of reserve for advanced | (60) | |||||||
depreciation of non-current assets | ||||||||
Dividends from surplus | ||||||||
Net income | ||||||||
Purchase of treasury shares | ||||||||
Net changes of items other than | ||||||||
shareholders' equity | ||||||||
Total changes of items during the | - | - | - | - | - | - | (60) | - |
period | ||||||||
Balance at the end of current period | 7,083 | 1,177 | 0 | 1,178 | 1,033 | 200 | 3,320 | 22,680 |
Shareholders' equity | Valuation and translation adjustments | |||||||
Retained earnings | ||||||||
Other retained | Total | Valuation | Deferred gains | Total valuation | Total net assets | |||
earnings | Treasury shares | difference on | ||||||
Total retained | shareholders' | or losses on | and translation | |||||
Retained | available-for- | |||||||
equity | hedges | adjustments | ||||||
earnings | earnings | sale securities | ||||||
brought | ||||||||
forward | ||||||||
Balance at the beginning of current | 39,841 | 67,135 | (2,910) | 72,486 | 681 | - | 681 | 73,167 |
period | ||||||||
Changes of items during the period | ||||||||
Reversal of reserve for advanced | 60 | - | - | - | ||||
depreciation of non-current assets | ||||||||
Dividends from surplus | (2,111) | (2,111) | (2,111) | (2,111) | ||||
Net income | 4,455 | 4,455 | 4,455 | 4,455 | ||||
Purchase of treasury shares | (2,305) | (2,305) | (2,305) | |||||
Net changes of items other than | (251) | 5 | (246) | (246) | ||||
shareholders' equity | ||||||||
Total changes of items during the | 2,404 | 2,344 | (2,305) | 38 | (251) | 5 | (246) | (207) |
period | ||||||||
Balance at the end of current period | 42,245 | 69,479 | (5,215) | 72,525 | 429 | 5 | 435 | 72,960 |
31
- Notes on non-consolidated financial statements (Notes on assumptions of a going concern)
None
(Important subsequent events) None
6. Other
- Transfer of officers
-
Transfer of representative directors (resolution to be submitted to Ordinary General Meeting of Shareholders on June 23, 2020)
Candidates for new representative director
-
Transfer of representative directors (resolution to be submitted to Ordinary General Meeting of Shareholders on June 23, 2020)
Name | New position | Current position |
Junichi Nomura | Representative Director, Executive Vice | Director, Executive Vice President, |
President, General Manager of Sugar | General Manager of Sugar Production | |
Production Group | Group | |
Taku Morimoto | Representative Director, Executive Vice | Advisor, Mitsui & Co., Ltd. |
President | ||
For more details, please refer to the press release published on May 15, 2020, "Change in Representative Directors and Directors."
2) Transfer of other directors
New director candidates (resolution to be submitted to Ordinary General Meeting of Shareholders on June 23, 2020)
Name | New position | Current position |
Takuya Tsuda | Director, Executive Managing Officer, | Executive Managing Officer, General |
General Manager of Sugar Business | Manager of Sugar Business | |
Takaaki Kakudo | Director (Outside Director) | Deputy General Manager of Food |
Business Unit, Mitsui & Co., Ltd. | ||
Retiring directors (effective June 23, 2020) | ||
Name | New position | Current position |
Yutaro Tako | Advisor | Director, Senior Executive Managing |
Officer | ||
Miki Yoshikawa | Retiring | Director (Outside Director) |
(2) Other
None
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Mitsui Sugar Co. Ltd. published this content on 28 May 2020 and is solely responsible for the information contained therein. Distributed by Public, unedited and unaltered, on 28 May 2020 01:12:05 UTC