ENEOS : Consolidated Financial Results for the Third Quarter of Fiscal Year 2020 （183KB）

This document contains a financial summary and financial statements translated from the original Japanese version, for convenience only.

Consolidated Financial Results for the Third Quarter of Fiscal Year 2020 [IFRS]

February 10, 2021

Company name:	ENEOS Holdings, Inc.	Stock Exchange Listings: Tokyo and Nagoya
Code number:	5020	URL:https://www.hd.eneos.co.jp/
Representative:	Ota Katsuyuki	Representative Director, President
Contact person:	Inoue Ryo	Group Manager, Investor Relations Group, Finance & Investor Relations Department

Telephone: [phone]

Scheduled date of filing of Quarterly Securities Report: February 12, 2021 Scheduled date of commencement of dividend payments:-

Supplemental materials for the quarterly financial results: Yes

Quarterly financial results presentation: Yes (for institutional investors and analysts)

(Amounts of less than 1 million yen are rounded off.)

1. Consolidated Results for the Third Quarter of FY2020 (From April 1, 2020 to December 31, 2020)

(1) Operating Results

(Percentage figures represent changes from same period in the previous fiscal year.)

Revenue	Operating profit	Profit before tax	Profit attributable to owners of the parent	Total comprehensive income
3Q of FY2020 3Q of FY2019	Millions of yen5,367,158 7,607,197	% (29.4) (8.7)	Millions of yen133,798 221,435	% (39.6) (51.8)	Millions of yen116,496 202,734	% (42.5) (53.4)	Millions of yen67,012 124,553	% (46.2) (55.2)	Millions of yen51,824 114,419	% (54.7) (61.0)

Basic profit per share	Diluted profit per share
3Q of FY2020 3Q of FY2019	Yen20.85 38.23	Yen20.82 38.22

(2) Financial Position

Total assets	Total equity	Total equity attributable to owners of the parent	Equity ratio attributable to owners of the parent
3Q of FY2020 FY2019	Millions of yen8,024,349 8,011,292	Millions of yen2,652,937 2,707,908	Millions of yen2,281,103 2,311,046	%28.4 28.8

2. Dividends

Annual cash dividends per share
End of 1st quarter	End of 2nd quarter	End of 3rd quarter	Year-End	Total
FY2019 FY2020	Yen- -	Yen11.00 11.00	Yen- -	Yen11.00	Yen22.00
FY2020 (Forecast)	11.00	22.00

Note: Revision to the most recent dividend forecast: No

3. Forecasts of Consolidated Results for Fiscal Year 2020 (From April 1, 2020 to March 31, 2021)

(Percentage figures are changes from the amount for the corresponding period in the previous fiscal year.)

Revenue	Operating profit	Profit before tax	Profit attributable to owners of the parent	Basic profit per share
FY2020	Millions of yen 7,500,000	% (25.1)	Millions of yen 200,000	% -	Millions of yen 175,000	% -	Millions of yen 90,000	% -	Yen 28.03

Note: Revision to the most recent consolidated earnings forecast: No

The forecasts of consolidated results for the fiscal year of 2020 remain unchanged from the previous forecasts announced on November 11, 2020. Average number of shares issued during the period that forms the basis for the calculation of basic profit per share specified above is calculated with the number of issued shares (excluding treasury stock) as of December 31, 2020.

As for the forecasts of operating profit excluding inventory valuation factors*, please see the following.

Operating profit excluding inventory valuation factors:

Forecasts for FY2020: 190,000 million yen (percentage change from the previous fiscal year: 96.5%) (Reference) Actual results for FY2019: 96,700 million yen

(*) The impact of inventory valuation on the cost of sales by using the weighted-average method and by writing down the book value.

Explanatory Notes

• (1) Changes in the number of material subsidiaries during the term under review: None

  Note: This item indicates whether there were changes in specified subsidiaries involving a change in the scope of consolidation.

• (2) Changes in accounting policies and in accounting estimates

  • (i) Changes in accounting policies required by the IFRS: None

• (ii) Changes in accounting policies other than (i) above:None

• (iii) Changes in accounting estimates: None

(3)Number of shares issued (Common stock)

• (i) Number of issued shares at the end of the period (including treasury stock) Third Quarter of FY2020 ended December 31, 2020: 3,230,282,649 shares FY2019 ended March 31, 2020: 3,230,282,649 shares

• (ii) Number of shares of treasury stock at the end of the period

  Third Quarter of FY2020 ended December 31, 2020: 19,614,011 shares FY2019 ended March 31, 2020: 12,819,877 shares

(iii)Average number of shares issued during the period Third Quarter of FY2020 ended December 31, 2020: Third Quarter of FY2019 ended December 31, 2019:

3,214,145,574 shares 3,257,992,215 shares

• This report is not subject to quarterly review procedures conducted by certified public accountants or an audit corporation.

• Explanation regarding appropriate use of forward-looking statements on results, and other specific comments (Note on Statements Regarding Prospective Matters)

  This material contains forward-looking statements; however, actual results may differ materially from those reflected in such forward-looking statements, due to various factors, including the following:

  (1) changes in macroeconomic conditions and changes in the competitive environment in the energy, resources and materials industries; (2) the impact of COVID-19 on economic activity; (3) revisions to laws and strengthening of regulations; and (4) litigation and other similar risks.

• Changes from the previous fiscal year (or corresponding period in the previous fiscal year) are not presented ("-") if either or both of the fiscal year (or period) under review and the previous fiscal year (or corresponding period) are negative, or if the percentage change is 1,000% or greater.

Summary of Quarterly Consolidated Financial Statements and Major Explanatory Notes Thereto

(1) Summary of Quarterly Consolidated Statements of Financial Position

(Millions of yen)

FY2019

3Q of FY2020

(As of March 31, 2020)

(As of December 31, 2020)

ASSETS
Current assets
Cash and cash equivalents	398,573	499,886
Trade and other receivables	1,020,570	1,089,992
Inventories	1,181,688	1,248,020
Other financial assets	61,963	48,438
Other current assets	183,673	150,443
Sub total	2,846,467	3,036,779
Assets held for sale	32,094	-
Total current assets	2,878,561	3,036,779
Non-current assets
Property, plant and equipment	3,724,861	3,546,445
Goodwill	185,730	185,861
Intangible assets	345,371	339,577
Investments accounted for using the equity method	407,207	426,955
Other financial assets	343,342	362,439
Other non-current assets	8,802	10,162
Deferred tax assets	117,418	116,131
Total non-current assets	5,132,731	4,987,570
TOTAL ASSETS	8,011,292	8,024,349

(Millions of yen)

Liabilities directly related to assets held for sale

5,748 -

FY2019	3Q of FY2020
(As of March 31, 2020)	(As of December 31, 2020)
LIABILITIES
Current liabilities
Trade and other payables	1,343,909	1,555,253
Bonds and borrowings	914,781	704,864
Income taxes payable	18,275	39,888
Lease liabilities	70,595	68,740
Other financial liabilities	30,647	37,761
Provisions	13,174	16,604
Other current liabilities	320,446	311,492
Sub total	2,711,827	2,734,602
Total current liabilities	2,717,575	2,734,602
Non-current liabilities
Bonds and borrowings	1,386,065	1,477,213
Liabilities for retirement benefits	272,124	246,268
Lease liabilities	445,244	428,929
Other financial liabilities	32,075	31,247
Provisions	165,994	162,867
Other non-current liabilities	51,873	55,367
Deferred tax liabilities	232,434	235,019
Total non-current liabilities	2,585,809	2,636,910
Total liabilities	5,303,384	5,371,512
EQUITY
Common stock	100,000	100,000
Capital surplus	1,138,884	1,124,252
Retained earnings	982,786	994,006
Treasury stock	(6,003)	(8,785)
Other components of equity	95,379	71,630
Total equity attributable to owners of the parent	2,311,046	2,281,103
Non-controlling interests	396,862	371,734
Total equity	2,707,908	2,652,837
TOTAL LIABILITIES AND EQUITY	8,011,292	8,024,349

(2) Summary of Quarterly Consolidated Statements of Profit or Loss and Summary of Quarterly Consolidated Statements of Comprehensive Income or Loss

(Summary of Quarterly Consolidated Statements of Profit or Loss)

(Millions of yen)

Revenue 7,607,197 5,367,158
Cost of sales 6,840,547 4,601,896
Gross profit 766,650 765,262
Selling, general and administrative expenses 610,781 580,595
Share of profit of investments accounted for usingthe equity method	40,165 37,658
Other operating income 51,439 35,475
Other operating expenses 26,038 124,002
Operating profit 221,435 133,798
Finance income 6,999 3,421
Finance costs 25,700 20,723
Profit before tax 202,734 116,496
Income tax expense 57,315 58,308
Profit 145,419 58,188
Profit (loss) attributable to:
Owners of the parent 124,553 67,012
Non-controlling interests 20,866 (8,824)
Profit 145,419 58,188
(Yen)
Basic profit per share 38.23 20.85

Diluted profit per share

3Q of FY2019	3Q of FY2020
(From April 1, 2019	(From April 1, 2020
to December 31, 2019)	to December 31, 2020)
38.22	20.82

(Summary of Quarterly Consolidated Statements of Comprehensive Income or Loss)

(Millions of yen)

3Q of FY2019 (From April 1, 2019 to December 31, 2019)

3Q of FY2020 (From April 1, 2020 to December 31, 2020)

Profit	145,419	58,188
Other comprehensive income (loss), net of tax
Items that will not be reclassified to profit or loss
Changes in fair value of financial assets measured at fairvalue through other comprehensive income (loss)	(4,684)	15,165
Remeasurement gains on defined benefit plans	7,013	14,134
Shares of other comprehensive income (loss) of investments accounted for using the equity method	(236)	330
Total	2,093	29,629
Items that may be reclassified subsequently to profit or loss
Exchange differences on translation of foreign operations	(18,422)	(26,190)
Changes in fair value of cash flow hedges	(2,620)	(1,066)
Shares of other comprehensive income (loss) of investments accounted for using the equity method	(12,051)	(8,737)
Total	(33,093)	(35,993)
Other comprehensive income (loss), net of tax	(31,000)	(6,364)
Total comprehensive income	114,419	51,824
Comprehensive income (loss) attributable to:
Owners of the parent	96,360	60,023
Non-controlling interests	18,059	(8,199)
Total comprehensive income	114,419	51,824

(3) Summary of Quarterly Consolidated Statements of Changes in Equity

Third Quarter of FY2019 (April 1, 2019 - December 31, 2019)

(Millions of Yen)

Other components of equity

Changes in fair value of financialCommon stockCapital surplusRetained earningsTreasury stock

assets measuredat fair value through othercomprehensiveincome (loss)Changes in fair value of cash flow hedges

Balance as of April 1, 2019

100,000

1,222,193

1,272,960

(29,698)

111,486

(8,877)

Cumulative effect of Changes in accounting policies

- 100,000 - - - - - - - - - - - - - 100,000

- 1,222,193 - - - - 0 (78,728)

(2,072)

-

- 111,486 -

-

Restated balance

Profit

Other comprehensive income (loss)

Total comprehensive income

(loss)

Purchase of treasury stock Disposal of treasury stock Cancellation of treasury stock Cash dividends

Share-based payment transactions

Equity transactions with non-controlling interests, etc. Transfer from other components of equity to retained earnings Transfer from other components of equity to non-financial assets Other

Total transactions with owners

Balance as of December 31, 2019

1,270,888

(29,698)

(8,877)

124,553

- - -

-

-

(5,763) (2,391)

124,553

(5,763) (2,391)

- 187

- - -

- - - (72,118)

- - 6,072

(53,982)

0

78,728 -

105

- - -

- - - - - - 684

- - - - - - -

- -

- - 684 106,407

(554)

(1,097)

(244)

-

(79,638)

(66,046)

24,607

(554)

1,142,555

1,329,395

(5,091)

(11,822)Other components of equityExchange differences on translation of foreign operationsRemeasurement losses (gains) on defined benefit plans

TotalTotal equity attributable to owners of the parentNon-controlling interests

Total equityBalance as of April 1, 2019

49,776

- - - - 6,756 6,756

152,385

2,717,840

401,976

3,119,816

Cumulative effect of Changes in accounting policies

- 49,776 -

- 152,385 -

(2,072)

(867)

(2,939)

Restated balance

Profit

Other comprehensive income (loss)

Total comprehensive income (loss)

Purchase of treasury stock Disposal of treasury stock Cancellation of treasury stock Cash dividends

Share-based payment transactions

Equity transactions with non-controlling interests, etc.Transfer from other components of equity to retained earnings Transfer from other components of equity to non-financial assetsOther

Total transactions with owners

Balance as of December 31, 2019

(26,795)

(26,795)

- - - - - - - - - - 22,981

2,715,768

124,553

(28,193)

(28,193)

- - - - - -

(6,756)

- -

(6,756)

-

- - - - - -

(6,072)

(554)

-

(6,626)

117,566

(28,193)

96,360

(53,982)

0 -

(72,118)

292

- -

(554)

(1,341)

(127,703)

2,684,425

401,109

20,866

(2,807)

18,059

- - - (16,019)

-

(655)

-

(513)

1,101

(16,086)

403,082

3,116,877

145,419

(31,000)

114,419

(53,982)

0 -

(88,137)

292

(655)

-

(1,067)

(240)

(143,789)

3,087,507

Third Quarter of FY2020 (April 1, 2020 - December 31, 2020)

(Millions of Yen)

Other components of equity

Changes in fair value of financialCommon stockCapital surplusRetained earningsTreasury stock

assets measuredat fair value through othercomprehensiveincome (loss)Changes in fair value of cash flow hedges

Balance as of April 1, 2020

Profit

Other comprehensive income (loss)

Total comprehensive income

(loss)

Purchase of treasury stock Disposal of treasury stock Cash dividends Share-based payment transactions

Equity transactions with non-controlling interests, etc. Transfer from other components of equity to retained earnings Transfer from other components of equity to non-financial assets Other

Total transactions with owners

Balance as of December 31, 2020

100,000 - - - - - - - - - - - - 100,000

1,138,884 - -

982,786 67,012

(6,003)

76,129 -(2,794)

- - -

-

-

13,027 (3,217)

-

67,012

13,027 (3,217)

(13,551)

(263)

-

315

- -

-

- - (70,800)

- - 15,008

(3,045)

263 - - - - - -

(453)

- - - - -- - - - - -

- -

- -

(1,752)

(1,133)

-

(14,632)

(55,792)

(2,782)

(453) (1,752)

1,124,252

994,006

(8,785)

88,703 (7,763)Other components of equityExchange differences on translation of foreign operationsRemeasurement losses (gains) on defined benefit plans

TotalTotal equity attributable to owners of the parentNon-controlling interests

Total equityBalance as of April 1, 2020

Profit

Other comprehensive income (loss)

Total comprehensive income (loss)

Purchase of treasury stock Disposal of treasury stock Cash dividends Share-based payment transactions

Equity transactions with non-controlling interests, etc.Transfer from other components of equity to retained earnings Transfer from other components of equity to non-financial assetsOther

Total transactions with owners

Balance as of December 31, 2020

22,044 -

(31,354)

(31,354)

- - - - - - - - -

(9,310)

- - 14,555 14,555

- - - - -

(14,555)

- -

(14,555)

-95,379 -

(6,989)

(6,989)

- - - - -

(15,008)

(1,752)

-

(16,760)

71,630

2,311,046 67,012

(6,989)

60,023

(3,045)

0

(70,800)

315

(13,551)

-

(1,752)

(1,133)

(89,966)

2,281,103

396,862

(8,824)

625

(8,199)

- - (13,723)

-

(2,505)

-

(1,127)

426

(16,929)

371,734

2,707,908 58,188

(6,364)

51,824

(3,045)

0

(84,523)

315

(16,056)

-

(2,879)

(707)

(106,895)

2,652,837

(4) Explanatory Notes to the Summary of Quarterly Consolidated Financial Statements

(Notes on the Assumption of a Going Concern)

None

(Segment Information)

I. Third Quarter of FY2019 (April 1, 2019 - December 31, 2019)

Information on Revenue, Profit or Loss and Other Items from Each Reporting Segment

(Millions of yen)

Energy	Oil and natural gas E&P	Metals	Total reporting segments	Other	Adjustments (Note 3)	Recorded amount on consolidated financial statements
Revenue Revenue from external customers Inter-segment revenue or transfers (Note 1)	6,423,939 3,934	98,219 -	747,148 1,356	7,269,306 5,290	337,891 33,513	- (38,803)	7,607,197 -
Total	6,427,873	98,219	748,504	7,274,596	371,404	(38,803)	7,607,197
Segment profit (loss) (Note 2)	101,594	40,144	48,395	190,133	28,147	3,155	221,435
Finance income Finance costs	6,999 25,700
Profit before tax	202,734

(Notes)	1.	Inter-reporting segment revenue or transfers are based on actual market prices.
2.	Segment profit (loss) is stated as operating profit in the summary of the quarterly consolidated statements of profit or loss.
3.	The segment profit (loss) adjustment of 3,155 million yen includes the net amount of 4,633 million yen, which is the income and
expenses of the entire Company not allocated to the reporting segments or the "Other" category.

II. Third Quarter of FY2020 (April 1, 2020 - December 31, 2020)

Information on Revenue, Profit or Loss and Other Items from Each Reporting Segment

(Millions of yen)

Energy	Oil and natural gas E&P	Metals	Total reporting segments	Other	Adjustments (Note 3)	Recorded amount on consolidated financial statements
Revenue Revenue from external customers Inter-segment revenue or transfers (Note 1)	4,196,936 2,764	76,689 -	763,866 1,511	5,037,491 4,275	329,667 30,105	- (34,380)	5,367,158 -
Total	4,199,700	76,689	765,377	5,041,766	359,772	(34,380)	5,367,158
Segment profit (loss) (Note 2)	89,268	6,617	(5,364)	90,521	37,341	5,936	133,798
Finance income Finance costs	3,421 20,723
Profit before tax	116,496

(Notes)	1.	Inter-reporting segment revenue or transfers are based on actual market prices.
2.	Segment profit (loss) is stated as operating profit in the summary of the quarterly consolidated statements of profit or loss.
3.	The segment profit (loss) adjustment of 5,936 million yen includes the net amount of 6,492 million yen, which is the income and
expenses of the entire Company not allocated to the reporting segments or the "Other" category.
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