Amada : Summary Report on the Consolidated Results for the Six Months Ended September 30, 2019 （275KB）

Note: This English translation is solely for reference purposes and not a legally definitive translation of the original Japanese text. In the event a difference arises regarding the meaning herein, the original Japanese version will prevail as the official authoritative version.

November 7, 2019

Consolidated Financial Results for the Six Months Ended September 30, 2019

(IFRS)

AMADA HOLDINGS CO., LTD.

Listed on the First Section of the TSE

Stock Code: 6113

(URL https://www.amadaholdings.co.jp) Representative: Tsutomu Isobe, President

Contact: Hidekazu Kudo, Director and Executive General Manager of Financial Division TEL: [phone]

Scheduled date to file quarterly securities report: November 8, 2019

Scheduled date to commence dividend payments: December 5, 2019

Preparation of supplementary material on quarterly financial results: Yes

Holding of quarterly financial results briefing: Yes (for investment analysts and institutional investors)

						(Amounts less than one million yen are truncated.)
1. Consolidated Financial Results for the Six Months Ended September 30, 2019 (from April 1, 2019 to September 30, 2019)
(1) Operating Results (Cumulative)						Percentages indicate year-on-year increase (decrease).
	Revenue		Operating profit	Profit before tax	Profit		Profit attributable to
			owners of parent
	Millions of	%	Millions of	%	Millions of	%	Millions of	%	Millions of	%
	yen	yen	yen	yen	yen
Six months ended September 30, 2019	154,940	0.2	19,162	(5.8)	19,495	(16.3)	13,488	(17.8)	13,344	(17.9)
Six months ended September 30, 2018	154,584	12.9	20,343	14.2	23,299	16.7	16,404	20.0	16,246	20.1
Note: Comprehensive income:	Six months ended September 30, 2019:		¥5,054 millions	(73.3) %
	Six months ended September 30, 2018:		¥18,924 millions	(3.1) %
	Basic earnings per	Diluted earnings per
	share		share
	Yen		Yen
Six months ended September 30, 2019		37.42		37.42
Six months ended September 30, 2018		44.41		44.41

(2) Financial Position

			Equity attributable to	Ratio of equity
	Total assets	Total equity	attributable to owners
	owners of parent
			of parent
	Millions of yen	Millions of yen	Millions of yen	%
As of September 30, 2019	571,453	441,291	437,558	76.6
As of March 31, 2019	567,861	445,280	441,431	77.7

Note: In the first quarter ended June 30, 2019, the Company finalized a provisional accounting treatment related to business combinations.

The figures in the fiscal year ended March 31, 2019, reflect the finalization of the provisional accounting treatment.

2. Dividends

		Dividends per share
	First	Second	Third	Fiscal year-	Total
	quarter	quarter	quarter	end
	Yen	Yen	Yen	Yen	Yen
Fiscal year ended March 31, 2019	－	21.00	－	25.00	46.00
Fiscal year ended March 31, 2020	－	24.00
Fiscal year ended March 31, 2020 (Forecast)			－	24.00	48.00
Notes: Revision to dividend forecasts most recently announced: None
3. Consolidated Financial Forecasts for the Fiscal Year Ending March 31, 2020 (from April 1, 2019 to March 31, 2020)
				Percentages indicate year-on-year increase (decrease)
	Revenue	Operating profit	Profit attributable to		Basic earnings per
	owners of parent		share
	Millions of	%	Millions of	%	Millions of	%		Yen
	yen	yen	yen
Fiscal year ending March 31, 2020 (Forecast)	335,000	(0.9)	47,000	4.1	33,500	0.6		93.94

Note: Revision to consolidated financial forecasts most recently announced: Yes

In the first quarter ended June 30, 2019, the Company finalized a provisional accounting treatment related to business combinations.

The figures in the fiscal year ended March 31, 2019, reflect the finalization of the provisional accounting treatment. Therefore, comparisons with the previous term are also done using the finalized figures.

4. Other Items

1. Changes in the scope of consolidation for significant subsidiaries during the six months ended September 30, 2019: None (Changes in specified subsidiaries resulting in change in the scope of consolidation)
2. Changes in accounting policies and changes in accounting estimates:

1. Changes in accounting policies required by IFRS: Yes
2. Changes in accounting policies other than 1) above: None
3. Changes in accounting estimates: None

1. Number of shares issued (common stock)

1. Number of shares issued at end of period (including treasury shares)

	As of September 30, 2019	368,115,217 shares
	As of March 31, 2019	368,115,217 shares
2)	Number of treasury shares at end of period
	As of September 30, 2019	11,504,627 shares
	As of March 31, 2019	11,503,611 shares
3)	Average number of shares during period
	Six months ended September 30, 2019	356,610,956 shares
	Six months ended September 30, 2018	365,808,545 shares

*These quarterly consolidated financial results are outside the scope of the quarterly review procedures by a certified public accountant or an auditing firm. The consolidated financial forecasts mentioned in this document and other forward-lookingstatements are based on information available to and on certain reasonable assumptions by the Company as of today. Accordingly, actual results may differ significantly from the forecasts herein due to various factors.

Condensed Quarterly Consolidated Financial Statements and Primary Notes

Condensed Quarterly Consolidated Statement of Financial Position

	(Millions of yen; amounts less than one million yen are truncated.)
Period	As of March 31, 2019	As of September 30, 2019
Item
(Assets)
Current assets:
Cash and cash equivalents	56,295	56,199
Trade and other receivables	140,965	130,010
Inventories	100,391	108,830
Other financial assets	19,939	12,762
Other current assets	9,571	8,647
Total current assets	327,164	316,450
Non-current assets:
Property, plant and equipment	130,914	145,666
Goodwill	4,811	4,705
Intangible assets	14,623	14,723
Investments accounted for using equity method	1,638	1,755
Other financial assets	65,734	63,348
Deferred tax assets	13,953	14,662
Other non-current assets	9,021	10,141
Total non-current assets	240,697	255,002
Total asset	567,861	571,453

		(Millions of yen; amounts less than one million yen are truncated.)
	Period	As of March 31, 2019	As of September 30, 2019
Item
(Liabilities and Equity)
Liabilities
Current liabilities:
Trade and other payables		65,917	59,271
Borrowings		5,366	14,144
Income taxes payable		7,918	5,178
Other financial liabilities		931	3,002
Provisions		1,900	1,751
Other current liabilities		23,961	23,105
Total current liabilities		105,997	106,452
Non-current assets:
Borrowings		4,556	4,412
Other financial liabilities		2,907	10,331
Retirement benefit liability		2,855	2,760
Provisions		6	6
Deferred tax liabilities		2,198	2,456
Other non-current liabilities		4,060	3,741
Total non-current liabilities		16,584	23,709
Total liabilities		122,581	130,162
Equity
Share capital		54,768	54,768
Capital surplus		153,119	153,119
Retained earnings		243,596	248,025
Treasury shares		(11,608)	(11,609)
Other components of equity		1,555	(6,745)
Total equity attributable to owners of parent		441,431	437,558
Non-controlling interests		3,848	3,732
Total equity		445,280	441,291
Total liabilities and equity		567,861	571,453

Condensed Quarterly Consolidated Statement of Profit or Loss

Six months ended September 30, 2018 and 2019

(Millions of yen; amounts less than one million yen are truncated.)

Period	Six months ended	Six months ended
Item	September 30, 2018	September 30, 2019
Revenue	154,584	154,940
Cost of sales	(86,327)	(87,505)
Gross profit	68,257	67,434
Selling, general and administrative expenses	(48,240)	(48,883)
Other income	797	940
Other expenses	(470)	(329)
Operating profit	20,343	19,162
Finance income	3,518	1,607
Finance costs	(730)	(1,511)
Share of profit of investments accounted for using equity method	166	237
Profit before tax	23,299	19,495
Income tax expense	(6,894)	(6,006)
Profit	16,404	13,488
Profit attributable to:
Owners of parent	16,246	13,344
Non-controlling interests	157	144
Profit	16,404	13,488
Earnings per share
Basic earnings per share	44.41	37.42
Diluted earnings per share	44.41	37.42

Condensed Quarterly Consolidated Statement of Comprehensive Income

Six months ended September 30, 2018 and 2019

(Millions of yen; amounts less than one million yen are truncated.)

Period	Six months ended	Six months ended
Item	September 30, 2018	September 30, 2019
Profit	16,404	13,488
Other comprehensive income
Items that will not be reclassified to profit or loss:
Equity financial assets measured at fair value through other	17	(521)
comprehensive income
Total of items	17	(521)
Items that may be reclassified subsequently to profit or loss
Exchange differences on translation of foreign operations	2,512	(7,876)
Debt financial assets measured at fair value through other	(17)	21
comprehensive income
Share of other comprehensive income of investments	7	(56)
accounted for using equity method
Total of items	2,502	(7,912)
Total other comprehensive income	2,520	(8,434)
Comprehensive income	18,924	5,054
Comprehensive income attributable to:
Owners of parent	18,728	5,043
Non-controlling interests	196	11
Comprehensive income	18,924	5,054

Condensed Quarterly Consolidated Statement of Changes in Equity

Six months ended September 30, 2018 (from April 1, 2018 to September 30, 2018)

(Millions of yen; amounts less than one million yen are truncated.)

Equity attributable to owners of parent

Other components of equity

Financial

Share of

assets

other

measured

Exchange

comprehensi

Non-

Total

Share

Capital

Retained

Treasury

at fair

differences

ve income

controlling

Total

equity

value

on

of

interests

capital

surplus

earnings

shares

Total

through

translation

investments

other

of foreign

accounted

comprehe

operations

for using

nsive

equity

income

method

Balance at April 1, 2018

54,768

163,217

224,850

(11,695)

529

2,351

70

2,950

434,091

3,615

437,707

Profit

－

－

16,246

－

－

－

－

－

16,246

157

16,404

Other comprehensive income

－

－

－

－

0

2,473

7

2,481

2,481

38

2,520

Comprehensive income

－

－

16,246

－

0

2,473

7

2,481

18,728

196

18,924

Dividends

－

－

(8,047)

－

－

－

－

－

(8,047)

(158)

(8,206)

Purchase of treasury shares

－

－

－

(2)

－

－

－

－

(2)

－

(2)

Disposal of treasury shares

(including through the exercise of

－

0

－

0

－

－

－

－

0

－

0

share options)

Total transactions with owners

－

0

(8,047)

(1)

－

－

－

－

(8,049)

(158)

(8,207)

Balance at September 30, 2018

54,768

163,217

233,049

(11,697)

529

4,824

77

5,432

444,770

3,654

448,424

Six months ended September 30, 2019 (from April 1, 2019 to September 30, 2019)

(Millions of yen; amounts less than one million yen are truncated.)

Equity attributable to owners of parent

Other components of equity

Financial

Share of

assets

other

Non-

measured

Exchange

comprehensi

Total

Share

Capital

Retained

Treasury

at fair

differences

ve income

controlling

Total

equity

value

on

of

interests

capital

surplus

earnings

shares

Total

through

translation

investments

other

of foreign

accounted

comprehe

operations

for using

nsive

equity

income

method

Balance at April 1, 2019

54,768

153,119

243,596

(11,608)

651

888

15

1,555

441,431

3,848

445,280

Profit

－

－

13,344

－

－

－

－

－

13,344

144

13,488

Other comprehensive income

－

－

－

－

(500)

(7,743)

(56)

(8,300)

(8,300)

(133)

(8,434)

Comprehensive income

－

－

13,344

－

(500)

(7,743)

(56)

(8,300)

5,043

11

5,054

Dividends

－

－

(8,915)

－

－

－

－

－

(8,915)

(127)

(9,042)

Purchase of treasury shares

－

－

－

(1)

－

－

－

－

(1)

－

(1)

Disposal of treasury shares

(including through the exercise of

－

0

－

0

－

－

－

－

0

－

0

share options)

Total transactions with owners

－

0

(8,915)

(1)

－

－

－

－

(8,916)

(127)

(9,043)

Balance at September 30, 2019

54,768

153,119

248,025

(11,609)

150

(6,855)

(41)

(6,745)

437,558

3,732

441,291

Condensed Quarterly Consolidated Statement of Cash Flows

Six months ended September 30, 2018 and 2019

(Millions of yen; amounts less than one million yen are truncated.)

Period	Six months ended	Six months ended
Item	September 30, 2018	September 30, 2019
Cash flows from operating activities
Profit before tax	23,299	19,495
Depreciation and amortization	5,986	7,915
Finance income and finance costs	(2,788)	(1,416)
Share of profit of investments accounted for using equity method	(166)	(237)
Loss (gain) on sales and retirement of fixed assets	164	19
Decrease (increase) in inventories	(9,036)	(11,068)
Decrease (increase) in trade and other receivables	2,118	8,201
Increase (decrease) in trade and other payables	145	(7,675)
Increase (decrease) in retirement benefit liability	(547)	(658)
Increase (decrease) in provisions	(65)	(90)
Other	(3,602)	2,601
Subtotal	15,506	17,088
Interest received	508	453
Dividends received	191	105
Interest paid	(49)	(54)
Income taxes paid	(7,953)	(9,658)
Net cash provided by (used in) operating activities	8,203	7,933
Cash flows from investing activities
Net decrease (increase) in time deposits	(139)	5,755
Purchase of securities	(1,000)	－
Proceeds from sale of marketable securities	3,600	2,800
Purchase of investment securities	(5,803)	(2,254)
Proceeds from sale of investment securities	801	2,624
Purchase of property, plant and equipment	(8,534)	(11,133)
Proceeds from sale of property, plant and equipment	237	118
Purchase of intangible assets	(2,083)	(2,277)
Payments from purchase of shares of subsidiaries resulting in	(3,371)	－
change in scope of consolidation
Other	8	(401)
Net cash provided by (used in) investing activities	(16,284)	(4,768)
Cash flows from financing activities
Repayments of short-term borrowings	(308)	(143)
Net increase (decrease) in short-term borrowings	3,517	10,200
Proceeds from long-term borrowings	1,144	－
Repayments of long-term borrowings	(119)	(1,112)
Repayments of lease liabilities	(57)	(1,232)
Payments for purchase of treasury shares	(2)	(1)
Dividends paid	(8,033)	(8,900)
Dividends paid to non-controlling interests	(158)	(127)
Other	0	0
Net cash provided by (used in) financing activities	(4,015)	(1,317)
Effect of exchange rate changes on cash and cash equivalents	56	(1,942)
Net increase (decrease) in cash and cash equivalents	(12,040)	(95)
Cash and cash equivalents at beginning of period	80,464	56,295
Cash and cash equivalents at end of period	68,424	56,199

Segment Information

Six months ended September 30, 2018 (from April 1, 2018 to September 30, 2018)

Millions of yen; amounts less than one million yen are truncated.)

	Metalworking	Metal Machine	Other	Total	Reconciliations	Consolidated
	Machinery	Tools
Revenue
Revenue from external customers	127,273	26,770	541	154,584	－	154,584
Intersegment revenue	3	4	－	8	(8)	－
Total	127,277	26,774	541	154,593	(8)	154,584
Segment profit	16,300	3,828	214	20,343	－	20,343
Finance income						3,518
Finance costs						(730)
Share of profit of investments						166
accounted for using equity method
Profit before tax						23,299

Notes:

1. The "Other" classification refers to businesses not included within reportable segments. It principally comprises real estate leasing.
2. Segment profit is adjusted from operating profit.

Six months ended September 30, 2019 (from April 1, 2019 to September 30, 2019)

Millions of yen; amounts less than one million yen are truncated.)

	Metalworking	Metal Machine	Other	Total	Reconciliations	Consolidated
	Machinery	Tools
Revenue
Revenue from external customers	122,603	31,730	605	154,940	－	154,940
Intersegment revenue	2	2	－	5	(5)	－
Total	122,606	31,733	605	154,945	(5)	154,940
Segment profit	14,787	3,983	391	19,162	－	19,162
Finance income						1,607
Finance costs						(1,511)
Share of profit of investments						237
accounted for using equity method
Profit before tax						19,495

Notes:

1. The "Other" classification refers to businesses not included within reportable segments. It principally comprises real estate leasing.
2. Segment profit is adjusted from operating profit.

Supplementary Information

Status of Orders Received and Sales (Consolidated)
1. Orders Received
						(Millions of yen; amounts less than one million yen are truncated.)
Period	Six months ended September 30, 2018	Six months ended September 30, 2019
	Orders received	Balance of outstanding	Orders received	Balance of outstanding
	orders		orders
Divisions	Amount		Ratio	Amount		Ratio	Amount		Ratio	Amount		Ratio
			%			%			%			%
Sheet Metal Division	117,805		72.0	65,935		77.0	110,237		70.9	58,318		71.7
Micro Welding Division	15,694		9.6	6,539		7.6	14,032		9.0	9,103		11.2
Cutting Division	19,695		12.0	5,843		6.8	18,015		11.6	4,251		5.2
Stamping Presses Division	5,611		3.4	3,506		4.1	9,984		6.4	7,588		9.3
Grinding Division	4,310		2.7	3,849		4.5	2,552		1.7	2,111		2.6
Others	537		0.3	－		－	603		0.4	－		－
Total	163,654		100.0	85,674		100.0	155,425		100.0	81,372		100.0
2. Sales Results
						(Millions of yen; amounts less than one million yen are truncated.)
Period	Six months ended September 30, 2018	Six months ended September 30, 2019
Divisions	Amount		Ratio		Amount		Ratio
						%						%
Sheet Metal Division			112,512			72.8			108,887			70.3
Micro Welding Division			14,760			9.5			13,716			8.8
Cutting Division			18,362			11.9			18,721			12.1
Stamping Presses Division			4,927			3.2			9,452			6.1
Grinding Division			3,480			2.2			3,556			2.3
Others			541			0.4			605			0.4
Total			154,584			100.0			154,940			100.0

Note: For "Status of Orders Received and Sales," amounts exclude consumption tax.

Status of Sales revenue to Customers by Geographic Region

				(Millions of yen; amounts less than one million yen are truncated.)
	Period	Six months ended September 30, 2018	Six months ended September 30, 2019	Percentage change
Regions	Amount	Ratio	Amount	Ratio
			%		%	%
Japan	66,364	42.9	72,722	46.9	9.6
Overseas	88,220	57.1	82,217	53.1	(6.8)
	North America	29,933	19.4	31,860	20.6	6.4
	Europe	29,298	19.0	26,515	17.1	(9.5)
	Asia and other regions	28,988	18.7	23,842	15.4	(17.8)
	Total	154,584	100.0	154,940	100.0	0.2

Note: This table presents sales to customers by geographic region.