February 3, 2020
Summary of Consolidated Financial Results for the Nine Months Ended December 31, 2019 [IFRS]
Company name: | Konica Minolta, Inc. |
Stock exchange listings: | Tokyo (First Section) |
Securities code number: | 4902 |
URL: | http://konicaminolta.com |
Representative: | Shoei Yamana |
Contact: | President and CEO, Representative Executive Officer |
Toru Tanaka | |
Telephone number: | General Manager, Corporate Accounting Division |
(81) 3-6250-2100 | |
Scheduled date for submission of | February 7, 2020 |
securities report: | |
Scheduled date for dividends payment: | − |
Availability of supplementary information | Yes |
for the quarterly financial results: | |
Organization of briefing on the quarterly | Yes (for institutional investors) |
financial results: |
(Amounts less than one million yen are rounded down to the nearest million yen.)
1. Consolidated financial results for the nine months ended December 31, 2019 (From April 1, 2019 to December 31, 2019)
(1) Consolidated results of operations
(Percentage figures represent changes from the same period of the previous fiscal year.)
Nine months ended | Revenue | Operating profit | Profit before tax | |||
Millions of yen | % | Millions of yen | % | Millions of yen | % | |
December 31, 2019 | 747,036 | −3.9 | 10,579 | −79.1 | 5,559 | −88.4 |
December 31, 2018 | 777,578 | 3.6 | 50,509 | 73.6 | 47,957 | 76.7 |
Nine months ended | Profit for the period | Profit attributable to | Total comprehensive | |||
owners of the Company | income | |||||
Millions of yen | % | Millions of yen | % | Millions of yen | % | |
December 31, 2019 | 2,110 | −93.7 | 2,173 | −93.6 | (8,071) | − |
December 31, 2018 | 33,671 | 82.1 | 33,743 | 81.2 | 37,159 | −8.8 |
Nine months ended | Basic earnings | Diluted earnings |
per share | per share | |
Yen | Yen | |
December 31, 2019 | 4.39 | 4.38 |
December 31, 2018 | 68.23 | 68.00 |
(Note) Basic earnings per share and diluted earnings per share are calculated based on the profit attributable to owners of the Company.
(2) Consolidated financial position
Equity attributable | Equity ratio | |||
attributable to | ||||
Total assets | Total equity | to owners of the | ||
owners of the | ||||
Company | ||||
As of | Company | |||
Millions of yen | Millions of yen | Millions of yen | % | |
December 31, 2019 | 1,304,330 | 542,987 | 533,406 | 40.9 |
March 31, 2019 | 1,218,986 | 565,983 | 555,689 | 45.6 |
2. Dividends per share
End of the | End of the | End of the | End of the | ||||||||||
three-month | six-month | nine-month | Total | ||||||||||
year | |||||||||||||
period | period | period | |||||||||||
Yen | Yen | Yen | Yen | Yen | |||||||||
Fiscal Year ended | − | 15.00 | − | 15.00 | 30.00 | ||||||||
March 31, 2019 | |||||||||||||
Fiscal Year ending | − | 15.00 | − | ||||||||||
March 31, 2020 | |||||||||||||
Fiscal Year ending | 15.00 | 30.00 | |||||||||||
March 31, 2020 (forecast) | |||||||||||||
(Note) Changes from the latest dividend forecasts: None
3. Consolidated forecasts for the fiscal year ending March 31, 2020 (From April 1, 2019 to March 31, 2020)
(Percentage figures represent changes from the previous fiscal year.)
Fiscal year | Revenue | Operating profit | Profit attributable to | Basic earnings | |||
ending | owners of the Company | per share | |||||
Millions of yen | % | Millions of yen | % | Millions of yen | % | Yen | |
March 31, | 1,045,000 | -1.3 | 20,000 | -68.0 | 7,500 | -82.0 | 15.16 |
2020 | |||||||
(Note) Changes from the latest consolidated forecasts: None
- Notes
- Changes in significant subsidiaries for the nine months ended December 31, 2019 (changes in the scope of consolidation): None
- Changes in accounting policies or changes in accounting estimates a. Changes in accounting policies required by International
Financial Reporting Standards (IFRS): | Yes |
b. Changes in accounting policies other than the above a.: | None |
c. Changes in accounting estimates: | None |
-
Number of issued and outstanding shares (common stock)
a. Number of issued and outstanding shares (including treasury shares)
As of December 31, 2019: | 502,664,337 shares |
As of March 31, 2019: | 502,664,337 shares |
b. Number of treasury shares | 7,840,897 shares |
As of December 31, 2019: | |
As of March 31, 2019: | 8,008,984 shares |
c. Average number of issued and outstanding shares during the period
The nine months ended December 31, 2019: | 494,764,963 shares |
The nine months ended December 31, 2018: | 494,551,619 shares |
(Note) Konica Minolta, Inc. (the "Company") has established the Board Incentive Plan trust in which beneficiaries include Directors, Executive Officers, Group Executives, and Technology Fellows. The shares owned by the trust account relating to this trust are accounted for as treasury shares (1,184,094 shares as of December 31, 2019, and 1,250,538 shares as of March 31, 2019).
- This summary of quarterly consolidated financial results falls outside the scope of quarterly review procedures to be performed by certified public accountants or an audit firm.
-
Explanation concerning the appropriate use of the forecasts for results of operations and other special matters
Note on the forecasts for the consolidated financial results
The forecasts for results of operations in this report are based on information currently available to the Company and its subsidiaries (the "Group"), and assumptions determined to be reasonable, and are not intended to assure achievement of the Group's operations. Actual results may differ significantly from the forecasts due to various factors. For further details of the assumptions and other factors considered by the Company in preparing the forecasts above, refer to "1. QUALITATIVE INFORMATION ON FINANCIAL RESULTS FOR THE NINE MONTHS ENDED DECEMBER 31, 2019, (3) Explanation Regarding the Forecasts for the Consolidated Financial Results" in the attached Supplementary Information on page 9.
Supplementary information for the quarterly financial results and briefing on the quarterly financial results
The Company will hold a briefing on the quarterly financial results for institutional investors on Monday, February 3, 2020. The proceedings and details of the briefing, along with the supplementary information on the quarterly financial results to be presented at the briefing, will be posted on the website of the Group soon after the briefing.
Supplementary Information
Table of Contents
1. QUALITATIVE INFORMATION ON FINANCIAL RESULTS FOR THE NINE MONTHS ENDED | ||
DECEMBER 31, 2019 | 2 | |
(1) | Qualitative Information on the Consolidated Operating Results | 2 |
(2) | Qualitative Information on the Consolidated Financial Position | 7 |
(3) | Explanation Regarding the Forecasts for the Consolidated Financial Results 9 | |
2. CONDENSED CONSOLIDATED FINANCIAL STATEMENTS AND RELATED NOTES | 10 | |
(1) | Condensed Consolidated Statements of Financial Position | 10 |
(2) | Condensed Consolidated Statements of Profit or Loss | 12 |
(3) | Condensed Consolidated Statements of Comprehensive Income | 14 |
(4) | Condensed Consolidated Statements of Changes in Equity | 16 |
(5) | Condensed Consolidated Statements of Cash Flows | 18 |
(6) | Notes to the Condensed Consolidated Financial Statements | 20 |
[Notes Regarding Going Concern Assumptions] | 20 | |
[Changes in Accounting Policies] | 20 | |
[Other Expenses] | 21 | |
[Segment Information] | 22 |
- 1-
1. QUALITATIVE INFORMATION ON FINANCIAL RESULTS FOR THE NINE MONTHS ENDED DECEMBER 31, 2019
- Qualitative Information on the Consolidated Operating Resultsa. Overview
Nine months ended | Nine months ended | Increase (Decrease) |
December 31, 2018 | December 31, 2019 | |
Revenue Gross profit Operating profit Profit before tax
Profit attributable to owners of the Company
Billions of yen | Billions of yen | Billions of yen | % |
777.5 | 747.0 | (30.5) | −3.9 |
377.6 | 354.5 | (23.1) | −6.1 |
50.5 | 10.5 | (39.9) | −79.1 |
47.9 | 5.5 | (42.3) | −88.4 |
33.7 | 2.1 | (31.5) | −93.6 |
Yen | Yen | Yen | % | |
Basic earnings per share | 68.23 | 4.39 | (63.84) | −93.6 |
Billions of yen | Billions of yen | Billions of yen | % | |
Capital expenditures | 33.4 | 34.2 | 0.8 | 2.4 |
Depreciation and amortization expenses | 44.0 | 57.4 | 13.3 | 30.4 |
Research and development expenses | 59.3 | 57.0 | (2.2) | −3.9 |
Billions of yen | Billions of yen | Billions of yen | % | |
Free cash flows | 16.8 | (26.5) | (43.4) | − |
Number | Number | Number | % | |
Number of employees in the Group | 44,158 | 44,767 | 609 | 1.4 |
Foreign exchange rates | Yen | Yen | Yen | % |
U.S. dollar | 111.14 | 108.67 | (2.47) | −2.2 |
Euro | 129.49 | 121.05 | (8.44) | −6.5 |
In the nine months ended December 31, 2019 (the "current period"), the Group recorded revenue of 747.0 billion yen, a decrease of 3.9% year-on-year. Shrinking capital investments by customers affected by the United States-China trade friction, a slowdown in the Chinese economy, and continuing uncertainties in the European economy, and the strong yen led to a decline in revenue in the Office Business and the Professional Print Business. With respect to the Industrial Business, revenue from the field of optical systems for industrial use fell due to the effects of a shift in demand, while revenue from the field of materials and components fell slightly due to the effects of the adjustment of supply and demand. Meanwhile, revenue increased in the Healthcare Business and in the new businesses primarily in the field of bio-healthcare, where a new genetic diagnostic service is delivering strong performance.
As for profit, the gross profit margin fell due to the effects of a decline in revenue and other factors, such as additional tariffs that came into effect in September 2019 linked to the United States- China trade friction, delay in reduction of manufacturing costs in the Office Business and the Professional Print Business, and a temporary change in the sales composition ratio shifting to low- and medium-speed models. In addition, a temporary gain of 20.2 billion yen generated from the liquidation of assets through sale and leaseback arrangements was recorded in the same period in the previous fiscal year, and consequently, operating profit for the current period fell significantly to 10.5 billion yen, a decrease of 79.1% year-on-year.
As a result, profit before tax was 5.5 billion yen, a decrease of 88.4% year-on-year, while profit attributable to owners of the Company was 2.1 billion yen, a decrease of 93.6% year-on-year.
In the new businesses where the Group continues to invest to develop its future revenue pillars as initiatives for sustainable growth over the medium to long term, the sales area of the Workplace Hub, an edge IoT platform provided by the Company, has expanded from 9 countries to 23 countries during the current period, and measures have been implemented to reinforce sales activities, leading to an expansion of the number of customers. In the bio-healthcare field, the world's first
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commercialization of the ribonucleic acid (RNA) testing that assesses germline mutations to enhance the accuracy of genetic diagnostics dramatically was highly recognized by medical institutions, contributing to an increase in the number of orders for genetic testing. Additionally, preparatory work has commenced to offer full-scale services to imaging centers with an aim to further expand the business. While the Group has continued its investments in the new businesses, it has embarked on a structure reform in the existing businesses to accelerate business transformation and enhance their profitability.
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b. Overview by Segment
Nine months ended | Nine months ended | Increase (Decrease) | ||||||||
December 31, 2018 | December 31, 2019 | |||||||||
Billions of yen | Billions of yen | Billions of yen | % | |||||||
Office Business | Revenue | 436.4 | 412.1 | (24.2) | −5.6 | |||||
Operating profit | 34.3 | 22.5 | (11.7) | −34.3 | ||||||
Professional Print Business | Revenue | 165.0 | 158.7 | (6.3) | −3.9 | |||||
Operating profit | 8.7 | 5.0 | (3.7) | −42.4 | ||||||
Healthcare Business | Revenue | 61.1 | 63.1 | 2.0 | 3.4 | |||||
Operating profit | 1.1 | 0.5 | (0.5) | −50.0 | ||||||
Industrial Business | Revenue | 88.4 | 82.9 | (5.4) | −6.2 | |||||
Operating profit | 17.0 | 15.3 | (1.6) | −9.9 | ||||||
Subtotal | Revenue | 751.0 | 717.0 | (34.0) | −4.5 | |||||
Operating profit | 61.2 | 43.5 | (17.7) | −29.0 | ||||||
Others and adjustments | Revenue | 26.4 | 30.0 | 3.5 | 13.3 | |||||
(Note 2) | Operating profit | (10.7) | (32.9) | (22.1) | − | |||||
Amount reported in the | Revenue | 777.5 | 747.0 | (30.5) | −3.9 | |||||
Condensed Consolidated | Operating profit | 50.5 | 10.5 | (39.9) | −79.1 | |||||
Statements of Profit or Loss | ||||||||||
(Notes)
- "Revenue" refers to revenue from external customers.
- "Revenue" refers to revenue from external customers in "Others" in "2. CONDENSED CONSOLIDATED FINANCIAL STATEMENTS AND RELATED NOTES, (6) Notes to the Condensed Consolidated Financial Statements [Segment Information]." "Operating profit" is the total of "Others" and "Adjustments" within the same table.
i. Office Business
In the office products business unit, the sales volume of A3 MFPs declined year on year in both color and monochrome models. Regarding the low- and medium-speed color models, the Company commenced the sales of bizhub i-series with a newly designed engine for the first time in seven years, as well as some industry-first robust security features. However, since a switch from the old model to the new model took time and demand of high-speed models showed stagnant growth as new product launch is scheduled in January 2020, overall sales volume declined. During the three months ended December 31, 2019, the sales volume of color models has returned to an increase due to the effects of sales of new products.
In the IT services solution business unit, sales growth plateaued temporarily due to optimization of some of the IT services offered in an effort to increase profit, but measures are undertaken to further enhance profitability through standardization and automation of support services.
As a result of the above, and the effects of the strong yen and tariffs linked to the United States-China trade friction, the Office Business segment recorded revenue of 412.1 billion yen,
- decrease of 5.6%year-on-year, and operating profit of 22.5 billion yen, a decrease of 34.3% year-on-year.
ii. Professional Print Business
In the production print business unit, the sales volume of both color and monochrome models decreased year on year. However, the sales volume of the color models returned to an increase during the three months ended December 31, 2019, reflecting the results of emphasized values of IQ-501 Intelligent Quality Optimizer with an automated color and registration adjustment and
- 4-
recovery of sales in North America. In particular, low- and medium-speed models, major drivers of the unit, recorded solid sales in the United States and Europe. In growth countries, there was a considerable increase in the sales volume in the ASEAN region, but the sales volume of medium-speed models decreased in China and India. The sales volume of monochrome equipment decreased by a reactionary fall following the large-scale transactions corresponding to demand from customers in Europe seen in the same period in the previous year and a slowdown in demand in China.
In the industrial printing business unit, sales of "AccurioJet KM-1" digital inkjet press through direct sales showed significant growth. The sales of label printers and digital decoration printing equipment showed substantial growth, reflecting the effects of new products and reinforced sales capacity, and maintaining the highest market share in the targeted markets, which drove an increase in revenue.
In the marketing services business unit, despite the continuing efforts into transition as a business that provides high value-added solutions and expanding sales driven by the United States and Asia, revenue fell due to the strong yen.
As a result of the above, and the effects of the strong yen and tariffs linked to the United States-China trade friction, the Professional Print Business segment recorded revenue of
158.7 billion yen, a decrease of 3.9% year-on-year, and operating profit of 5.0 billion yen, a decrease of 42.4% year-on-year.
iii. Healthcare Business
In the healthcare (modality) business unit, sales of the digital radiography for hospitals in Japan remained strong and the sales volume also increased in Asia and Europe. In the United States, while sales for hospitals remained sluggish, sales for clinics were solid and turned to the recovery trend during the three months ended December 31, 2019. The sales volume of diagnostic ultrasound systems increased steadily, supported by the effects of a new product for obstetrics and wide recognition of the Company's brand in the internal medicine field in Japan. Overseas sales of diagnostic ultrasound systems also grew, primarily in Europe and the United states. As a result, revenue in the healthcare (modality) business unit increased.
In the medical IT business unit, a large-scale order of the Picture Archiving and Communication System (PACS) in North America and solid sales of PACS in Japan contributed to an increase in revenue.
As a result, the Healthcare Business segment recorded revenue of 63.1 billion yen, an increase of 3.4% year-on-year, and operating profit of 0.5 billion yen, a decrease of 50.0% year-on-year, mainly due to the recognition of valuation loss on property, plant and equipment of 0.5 billion yen related to a sale of subsidiaries' business bases.
-
Industrial Business
In the field of materials and components, there was growth in sales of high value-added
products in the performance materials business unit; however, due to customers' inventory adjustment, leading to an overall decline in the unit area of panels sold, revenue fell. The optical component business unit posted a marginal decrease in revenue due to a slowdown in economy. In the inkjet component business unit, revenue increased due to strong sales performance mainly in Asia. As a result of the above, for the field of materials and components as a whole, there was a slight decline in revenue.
In the field of optical systems for industrial use, the measuring instruments business unit experienced sluggish growth in sales of object color measurement instruments due to a slowdown in economy. Sales of light source color measurement instruments fell year on year due to shrink in demand derived from diversification of display products. As a result, revenue for the unit fell overall. Nonetheless, the unit showed signs of recovery in the three months ended December 31, 2019, reflecting an increase in the number of sales orders received from customers in China and South Korea.
As a result, the Industrial Business segment recorded revenue of 82.9 billion yen, a decrease of 6.2% year-on-year, and operating profit of 15.3 billion yen, a decrease of 9.9% year-on-year.
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(Reference) Overview of the quarterly consolidated accounting period
Three months ended | Three months ended | Increase (Decrease) |
December 31, 2018 | December 31, 2019 | |
Revenue Gross profit Operating profit Profit before tax
Profit attributable to owners of the Company
Billions of yen | Billions of yen | Billions of yen | % |
260.4 | 249.5 | (10.9) | −4.2 |
126.1 | 117.7 | (8.4) | −6.7 |
15.9 | 5.1 | (10.7) | −67.6 |
14.8 | 3.9 | (10.8) | −73.0 |
10.4 | 2.0 | (8.3) | −80.1 |
Yen | Yen | Yen | % | |
Basic earnings per share | 21.05 | 4.18 | (16.87) | −80.1 |
Billions of yen | Billions of yen | Billions of yen | % | |
Capital expenditures | 13.8 | 10.0 | (3.8) | −27.9 |
Depreciation and amortization expenses | 14.9 | 19.4 | 4.5 | 30.4 |
Research and development expenses | 19.6 | 18.4 | (1.2) | −6.2 |
Billions of yen | Billions of yen | Billions of yen | % | |
Free cash flows | 5.8 | (8.0) | (13.8) | − |
Foreign exchange rates | Yen | Yen | Yen | % |
U.S. dollar | 112.90 | 108.76 | (4.14) | −3.7 |
Euro | 128.78 | 120.32 | (8.46) | −6.6 |
Overview of major segments
Three months ended | Three months ended | Increase (Decrease) | ||||||||
December 31, 2018 | December 31, 2019 | |||||||||
Billions of yen | Billions of yen | Billions of yen | % | |||||||
Office Business | Revenue | 145.7 | 138.9 | (6.7) | −4.6 | |||||
Operating profit | 11.6 | 5.4 | (6.2) | −53.4 | ||||||
Professional Print Business | Revenue | 55.8 | 55.4 | (0.4) | −0.7 | |||||
Operating profit | 3.3 | 2.9 | (0.3) | −11.4 | ||||||
Healthcare Business | Revenue | 20.8 | 18.1 | (2.7) | −13.2 | |||||
Operating profit | 0.3 | 0.2 | (0.1) | −41.3 | ||||||
Industrial Business | Revenue | 28.8 | 26.8 | (1.9) | −6.7 | |||||
Operating profit | 5.5 | 5.6 | 0 | 1.0 | ||||||
Subtotal | Revenue | 251.2 | 239.4 | (11.8) | −4.7 | |||||
Operating profit | 20.9 | 14.2 | (6.6) | −32.0 | ||||||
Others and adjustments | Revenue | 9.2 | 10.1 | 0.8 | 9.7 | |||||
(Note 2) | Operating profit | (5.0) | (9.0) | (4.0) | − | |||||
Amount reported in the | Revenue | 260.4 | 249.5 | (10.9) | −4.2 | |||||
Condensed Consolidated | Operating profit | 15.9 | 5.1 | (10.7) | −67.6 | |||||
Statements of Profit or Loss |
(Notes)
- "Revenue" refers to revenue from external customers.
- "Revenue" refers to revenue from external customers in "Others" in "2. CONDENSED CONSOLIDATED FINANCIAL STATEMENTS AND RELATED NOTES, (6) Notes to the Condensed Consolidated Financial Statements [Segment Information]." "Operating profit" is the total of "Others" and "Adjustments" within the same table.
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- Qualitative Information on the Consolidated Financial Positiona. Analysis of Consolidated Financial Position
As of | As of | Increase | |
March 31, 2019 | December 31, 2019 | (Decrease) | |
Billions of yen | Billions of yen | Billions of yen | |
Total assets | 1,218.9 | 1,304.3 | 85.3 |
Total liabilities | 653.0 | 761.3 | 108.3 |
Total equity | 565.9 | 542.9 | (22.9) |
Equity attributable to owners of the Company | 555.6 | 533.4 | (22.2) |
% | % | % | |
Equity ratio attributable to owners of the Company | 45.6 | 40.9 | −4.7 |
Total assets as of December 31, 2019, were 1,304.3 billion yen, an increase of 85.3 billion yen (7.0%) from March 31, 2019. This is primarily attributed to an increase of 101.5 billion yen in property, plant and equipment due mainly to the adoption of IFRS 16 Leases("IFRS 16"), an increase of
- billion yen in inventories, an increase of 7.0 billion yen in other current assets, a decrease of
-
billion yen in cash and cash equivalents, a decrease of 6.6 billion yen in trade and other receivables, and a decrease of 6.0 billion yen in goodwill and intangible assets.
Total liabilities as of December 31, 2019, were 761.3 billion yen, an increase of 108.3 billion yen (16.6%) from March 31, 2019. This is primarily attributed to an increase of 113.3 billion yen in lease liabilities due to the adoption of IFRS 16, an increase of 13.8 billion yen in bonds and borrowings, and a decrease of 7.5 billion yen in income tax payables.
Total equity as of December 31, 2019, was 542.9 billion yen, a decrease of 22.9 billion yen (4.1%) from March 31, 2019.
Equity attributable to owners of the Company was 533.4 billion yen as of December 31, 2019, a decrease of 22.2 billion yen (4.0%) from March 31, 2019. This is primarily attributed to a decrease of
- billion yen in retained earnings due to cash dividends and a decrease of 9.1 billion yen in other components of equity (mainly exchange differences on translation of foreign operations).
As a result of the above, the equity ratio attributable to owners of the Company decreased
- percentage points to 40.9%.
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b. Analysis of Cash Flows
Nine months ended | Nine months ended | Increase | |
December 31, 2018 | December 31, 2019 | (Decrease) | |
Billions of yen | Billions of yen | Billions of yen | |
Cash flows from operating activities | 36.8 | 11.6 | (25.2) |
Cash flows from investing activities | (19.9) | (38.2) | (18.2) |
Total (Free cash flows) | 16.8 | (26.5) | (43.4) |
Cash flows from financing activities | (39.1) | (9.1) | 29.9 |
For the nine months ended December 31, 2019, net cash provided by operating activities was
11.6 billion yen, and net cash used in investing activities totaled 38.2 billion yen. As a result, free cash flows (the sum of cash flows from operating activities and investing activities) were an outflow of 26.5 billion yen for the current period.
Net cash used in financing activities was 9.1 billion yen.
In addition, cash and cash equivalents as of December 31, 2019, decreased by 37.6 billion yen from the previous fiscal year-end to 87.2 billion yen, reflecting the effect of exchange rate fluctuations on cash and cash equivalents.
Cash flows from operating activities
Net cash provided by operating activities was 11.6 billion yen. This is attributable to net effects of cash inflows due mainly to profit before tax of 5.5 billion yen, depreciation and amortization expenses of 57.4 billion yen, and a decrease in trade and other receivables of 1.3 billion yen, and cash outflows due mainly to an increase in inventories of 31.0 billion yen and payment of income taxes of 11.8 billion yen.
Cash flows from investing activities
Net cash used in investing activities was 38.2 billion yen, due mainly to purchases of property, plant and equipment of 25.9 billion yen, purchases of intangible assets of 8.4 billion yen, and purchases of investments in subsidiaries of 4.2 billion yen.
As a result, free cash flows (the sum of cash flows from operating and investing activities) were an outflow of 26.5 billion yen (an inflow of 16.8 billion yen for the same period in the previous fiscal year).
Cash flows from financing activities
Net cash used in financing activities was 9.1 billion yen (net cash outflows of 39.1 billion yen for the same period in the previous fiscal year), reflecting mainly proceeds, including net increase in short-term loans payable of 25.3 billion yen, redemption of bonds and repayments of long-term loans payable of 8.3 billion yen, repayments of lease liabilities of 14.0 billion yen, and cash dividends paid of 14.7 billion yen.
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(3) Explanation Regarding the Forecasts for the Consolidated Financial Results
Taking into account the progress made during the current period, the Company has decided to keep the full-year consolidated forecasts the same as released on November 1, 2019.
With regard to the exchange rates that form the basis of the forecasts for the three months ending March 31, 2020, they are left as the U.S. dollar exchange rate assumption at 105 yen and the euro rate at 118 yen, unchanged from those announced on November 1, 2019.
The forecasts for results of operations are based on suppositions, outlooks, and plans as of the release date of this report, and as such, they involve risks and uncertainties. Actual results may differ significantly from these forecasts due to various important factors, such as changes in economic conditions, market trends, and currency exchange rates.
Amounts less than 100 million yen are rounded down to the nearest million yen in the
"1. QUALITATIVE INFORMATION ON FINANCIAL RESULTS FOR THE NINE MONTHS ENDED DECEMBER 31, 2019" section.
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2. CONDENSED CONSOLIDATED FINANCIAL STATEMENTS AND RELATED NOTES
- Condensed Consolidated Statements of Financial Position
(Millions of yen) | ||
As of March 31, 2019 | As of December 31, 2019 | |
Assets | ||
Current assets | ||
Cash and cash equivalents | 124,830 | 87,222 |
Trade and other receivables | 275,563 | 268,902 |
Inventories | 144,703 | 173,691 |
Income tax receivables | 3,305 | 2,067 |
Other financial assets | 3,406 | 1,091 |
Other current assets | 27,128 | 34,189 |
Total current assets | 578,937 | 567,165 |
Non-current assets | ||
Property, plant and equipment | 207,138 | 308,650 |
Goodwill and intangible assets | 346,133 | 340,060 |
Investments accounted for using the equity | 913 | 738 |
method | ||
Other financial assets | 46,711 | 48,432 |
Deferred tax assets | 32,505 | 33,427 |
Other non-current assets | 6,647 | 5,855 |
Total non-current assets | 640,048 | 737,164 |
Total assets | 1,218,986 | 1,304,330 |
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(Millions of yen) | |||
As of March 31, 2019 | As of December 31, 2019 | ||
Liabilities | |||
Current liabilities | |||
Trade and other payables | 175,268 | 171,190 | |
Bonds and borrowings | 24,648 | 68,788 | |
Lease liabilities | − | 12,508 | |
Income tax payables | 7,875 | 299 | |
Provisions | 12,260 | 11,225 | |
Other financial liabilities | 463 | 2,107 | |
Other current liabilities | 50,857 | 46,034 | |
Total current liabilities | 271,374 | 312,154 | |
Non-current liabilities | |||
Bonds and borrowings | 249,088 | 218,820 | |
Lease liabilities | − | 100,870 | |
Retirement benefit liabilities | 38,457 | 40,035 | |
Provisions | 15,540 | 15,335 | |
Other financial liabilities | 58,284 | 55,764 | |
Deferred tax liabilities | 12,497 | 11,708 | |
Other non-current liabilities | 7,760 | 6,652 | |
Total non-current liabilities | 381,628 | 449,188 | |
Total liabilities | 653,002 | 761,342 | |
Equity | |||
Share capital | 37,519 | 37,519 | |
Share premium | 188,333 | 188,932 | |
Retained earnings | 324,628 | 310,735 | |
Treasury shares | (9,979) | (9,784) | |
Share acquisition rights | 836 | 772 | |
Other components of equity | 14,350 | 5,231 | |
Equity attributable to owners of the | 555,689 | 533,406 | |
Company | |||
Non-controlling interests | 10,294 | 9,581 | |
Total equity | 565,983 | 542,987 | |
Total liabilities and equity | 1,218,986 | 1,304,330 | |
- 11-
-
Condensed Consolidated Statements of Profit or Loss
Nine months ended December 31, 2018 and 2019
(Millions of yen) | ||||||
Nine months ended | Nine months ended | |||||
December 31, 2018 | December 31, 2019 | |||||
Revenue | 777,578 | 747,036 | ||||
Cost of sales | 399,903 | 392,476 | ||||
Gross profit | 377,675 | 354,559 | ||||
Other income | 23,468 | 2,872 | ||||
Selling, general and administrative expenses | 342,908 | 336,031 | ||||
Other expenses | 7,725 | 10,821 | ||||
Operating profit | 50,509 | 10,579 | ||||
Finance income | 3,591 | 3,982 | ||||
Finance costs | 5,662 | 8,851 | ||||
Share of profit (loss) of investments | (480) | (151) | ||||
accounted for using the equity method | ||||||
Profit before tax | 47,957 | 5,559 | ||||
Income tax expense | 14,286 | 3,448 | ||||
Profit for the period | 33,671 | 2,110 | ||||
Profit (loss) attributable to: | ||||||
Owners of the Company | 33,743 | 2,173 | ||||
Non-controlling interests | (72) | (63) | ||||
Earnings per share | Yen | Yen | ||||
Basic | 68.23 | 4.39 | ||||
Diluted | 68.00 | 4.38 | ||||
- 12-
Three months ended December 31, 2018 and 2019
(Millions of yen) | ||||||
Three months ended | Three months ended | |||||
December 31, 2018 | December 31, 2019 | |||||
Revenue | 260,491 | 249,547 | ||||
Cost of sales | 134,347 | 131,843 | ||||
Gross profit | 126,143 | 117,703 | ||||
Other income | 6,944 | 1,720 | ||||
Selling, general and administrative expenses | 114,681 | 111,477 | ||||
Other expenses | 2,502 | 2,800 | ||||
Operating profit | 15,904 | 5,146 | ||||
Finance income | 1,152 | 1,459 | ||||
Finance costs | 2,065 | 2,563 | ||||
Share of profit (loss) of investments | (190) | (44) | ||||
accounted for using the equity method | ||||||
Profit before tax | 14,800 | 3,997 | ||||
Income tax expense | 4,397 | 1,898 | ||||
Profit for the period | 10,403 | 2,099 | ||||
Profit (loss) attributable to: | ||||||
Owners of the Company | 10,409 | 2,067 | ||||
Non-controlling interests | (6) | 32 | ||||
Earnings per share | Yen | Yen | ||||
Basic | 21.05 | 4.18 | ||||
Diluted | 20.98 | 4.16 | ||||
- 13-
-
Condensed Consolidated Statements of Comprehensive Income
Nine months ended December 31, 2018 and 2019
(Millions of yen) | ||||||
Nine months ended | Nine months ended | |||||
December 31, 2018 | December 31, 2019 | |||||
Profit for the period | 33,671 | 2,110 | ||||
Other comprehensive income | ||||||
Items that will not be reclassified to profit or | ||||||
loss | ||||||
Remeasurements of defined benefit pension | 261 | (427) | ||||
plans (net of tax) | ||||||
Net gain (loss) on revaluation of financial | (1,997) | 1,012 | ||||
assets measured at fair value (net of tax) | ||||||
Share of other comprehensive income (loss) | ||||||
of investments accounted for using the | (0) | - | ||||
equity method (net of tax) | ||||||
Total items that will not be reclassified to | (1,736) | 584 | ||||
profit or loss | ||||||
Items that may be subsequently reclassified to | ||||||
profit or loss | ||||||
Net gain (loss) on derivatives designated as | 1,177 | (858) | ||||
cash flow hedges (net of tax) | ||||||
Exchange differences on translation of | 4,059 | (9,884) | ||||
foreign operations (net of tax) | ||||||
Share of other comprehensive income (loss) | ||||||
of investments accounted for using the | (11) | (23) | ||||
equity method (net of tax) | ||||||
Total items that may be subsequently | 5,225 | (10,766) | ||||
reclassified to profit or loss | ||||||
Total other comprehensive income (loss) | 3,488 | (10,181) | ||||
Total comprehensive income (loss) | 37,159 | (8,071) | ||||
Total comprehensive income (loss) | ||||||
attributable to: | ||||||
Owners of the Company | 37,604 | (7,350) | ||||
Non-controlling interests | (444) | (720) | ||||
- 14-
Three months ended December 31, 2018 and 2019
(Millions of yen) | ||||||
Three months ended | Three months ended | |||||
December 31, 2018 | December 31, 2019 | |||||
Profit for the period | 10,403 | 2,099 | ||||
Other comprehensive income | ||||||
Items that will not be reclassified to profit or | ||||||
loss | ||||||
Remeasurements of defined benefit pension | (17) | (20) | ||||
plans (net of tax) | ||||||
Net gain (loss) on revaluation of financial | (2,000) | 1,311 | ||||
assets measured at fair value (net of tax) | ||||||
Share of other comprehensive income (loss) | ||||||
of investments accounted for using the | (0) | - | ||||
equity method (net of tax) | ||||||
Total items that will not be reclassified to | (2,017) | 1,290 | ||||
profit or loss | ||||||
Items that may be subsequently reclassified to | ||||||
profit or loss | ||||||
Net gain (loss) on derivatives designated as | 1,603 | 257 | ||||
cash flow hedges (net of tax) | ||||||
Exchange differences on translation of | (12,541) | 11,014 | ||||
foreign operations (net of tax) | ||||||
Share of other comprehensive income (loss) | ||||||
of investments accounted for using the | 9 | (7) | ||||
equity method (net of tax) | ||||||
Total items that may be subsequently | (10,928) | 11,264 | ||||
reclassified to profit or loss | ||||||
Total other comprehensive income (loss) | (12,946) | 12,555 | ||||
Total comprehensive income (loss) | (2,543) | 14,654 | ||||
Total comprehensive income (loss) | ||||||
attributable to: | ||||||
Owners of the Company | (2,615) | 14,869 | ||||
Non-controlling interests | 72 | (215) | ||||
- 15-
(4) Condensed Consolidated Statements of Changes in Equity
(Millions | of yen) | |||||||||
Equity | ||||||||||
Share | Share | Retained | Treasury | Share | Other | attributable | Non- | Total | ||
acquisition | components | to owners | controlling | |||||||
capital | premium | earnings | shares | equity | ||||||
rights | of equity | of the | interests | |||||||
Company | ||||||||||
Balance as of April 1, 2018 | 37,519 | 184,841 | 298,366 | (10,189) | 934 | 13,041 | 524,513 | 11,075 | 535,588 | |
Effect of changes in | − | − | 188 | − | − | − | 188 | − | 188 | |
accounting policies | ||||||||||
Restated balance as of | 37,519 | 184,841 | 298,554 | (10,189) | 934 | 13,041 | 524,701 | 11,075 | 535,776 | |
April 1, 2018 | ||||||||||
Profit (loss) for the | − | − | 33,743 | − | − | − | 33,743 | (72) | 33,671 | |
period | ||||||||||
Other comprehensive | − | − | − | − | − | 3,860 | 3,860 | (371) | 3,488 | |
income (loss) | ||||||||||
Total comprehensive | − | − | 33,743 | − | − | 3,860 | 37,604 | (444) | 37,159 | |
income (loss) | ||||||||||
Dividends | − | − | (14,836) | − | − | − | (14,836) | (23) | (14,859) | |
Acquisition and disposal | − | − | (43) | 123 | − | − | 79 | − | 79 | |
of treasury shares | ||||||||||
Share-based payments | − | 272 | − | − | (59) | − | 213 | − | 213 | |
Changes in non- | ||||||||||
controlling interests due | − | − | − | − | − | − | − | 20 | 20 | |
to changes in | ||||||||||
subsidiaries | ||||||||||
Put options written on | ||||||||||
non-controlling | − | (1,348) | − | − | − | − | (1,348) | − | (1,348) | |
interests | ||||||||||
Transfer from other | − | − | 271 | − | − | (271) | − | − | − | |
components of equity to | ||||||||||
retained earnings | ||||||||||
Total transactions with | − | (1,076) | (14,607) | 123 | (59) | (271) | (15,891) | (3) | (15,895) | |
owners | ||||||||||
Balance as of | 37,519 | 183,765 | 317,690 | (10,066) | 875 | 16,630 | 546,414 | 10,626 | 557,041 | |
December 31, 2018 | ||||||||||
- 16-
(Millions | of yen) | |||||||||
Equity | ||||||||||
Share | Share | Retained | Treasury | Share | Other | attributable | Non- | Total | ||
acquisition | components | to owners | controlling | |||||||
capital | premium | earnings | shares | equity | ||||||
rights | of equity | of the | interests | |||||||
Company | ||||||||||
Balance as of April 1, 2019 | 37,519 | 188,333 | 324,628 | (9,979) | 836 | 14,350 | 555,689 | 10,294 | 565,983 | |
Effect of changes in | − | − | (744) | − | − | − | (744) | − | (744) | |
accounting policies | ||||||||||
Restated balance as of | 37,519 | 188,333 | 323,884 | (9,979) | 836 | 14,350 | 554,944 | 10,294 | 565,238 | |
April 1, 2019 | ||||||||||
Profit (loss) for the | − | − | 2,173 | − | − | − | 2,173 | (63) | 2,110 | |
period | ||||||||||
Other comprehensive | − | − | − | − | − | (9,523) | (9,523) | (657) | (10,181) | |
income (loss) | ||||||||||
Total comprehensive | − | − | 2,173 | − | − | (9,523) | (7,350) | (720) | (8,071) | |
income (loss) | ||||||||||
Dividends | − | − | (14,842) | − | − | − | (14,842) | − | (14,842) | |
Acquisition and disposal | − | − | (75) | 194 | − | − | 119 | − | 119 | |
of treasury shares | ||||||||||
Share-based payments | − | 45 | − | − | (63) | − | (18) | − | (18) | |
Changes in non- | ||||||||||
controlling interests due | − | − | − | − | − | − | − | 7 | 7 | |
to changes in | ||||||||||
subsidiaries | ||||||||||
Equity and other | ||||||||||
transactions with non- | − | (24) | − | − | − | − | (24) | (0) | (24) | |
controlling shareholders | ||||||||||
Put options written on | ||||||||||
non-controlling | − | 577 | − | − | − | − | 577 | − | 577 | |
interests | ||||||||||
Transfer from other | − | − | (404) | 404 | ||||||
components of equity to | - | - | - | - | - | |||||
retained earnings | ||||||||||
Total transactions with | − | 598 | (15,322) | 194 | (63) | 404 | (14,187) | 7 | (14,180) | |
owners | ||||||||||
Balance as of | 37,519 | 188,932 | 310,735 | (9,784) | 772 | 5,231 | 533,406 | 9,581 | 542,987 | |
December 31, 2019 | ||||||||||
- 17-
(5) Condensed Consolidated Statements of Cash Flows
(Millions of yen) | |||
Nine months ended | Nine months ended | ||
December 31, 2018 | December 31, 2019 | ||
Cash flows from operating activities | |||
Profit before tax | 47,957 | 5,559 | |
Depreciation and amortization expenses | 44,054 | 57,442 | |
Impairment losses and reversal of impairment | 298 | 534 | |
losses | |||
Share of (profit) loss of investments accounted | 480 | 151 | |
for using the equity method | |||
Interest and dividends income | (3,430) | (3,728) | |
Interest expenses | 4,993 | 6,622 | |
(Gain) loss on sales and disposals of property, | (18,562) | 3,213 | |
plant and equipment, and intangible assets | |||
(Increase) decrease in trade and other | 6,728 | 1,364 | |
receivables | |||
(Increase) decrease in inventories | (19,371) | (31,064) | |
Increase (decrease) in trade and other payables | (530) | (106) | |
Decrease due to transfer of rental assets | (4,607) | (5,292) | |
Increase (decrease) in retirement benefit | (735) | 1,433 | |
liabilities | |||
Others | (10,663) | (9,415) | |
Subtotal | 46,611 | 26,713 | |
Dividends received | 632 | 665 | |
Interest received | 2,827 | 3,252 | |
Interest paid | (5,461) | (7,162) | |
Income taxes (paid) refunded | (7,761) | (11,861) | |
Net cash provided by (used in) operating | 36,848 | 11,606 | |
activities | |||
- 18-
(Millions of yen) | |||
Nine months ended | Nine months ended | ||
December 31, 2018 | December 31, 2019 | ||
Cash flows from investing activities | |||
Purchase of property, plant and equipment | (23,894) | (25,956) | |
Purchase of intangible assets | (10,628) | (8,435) | |
Proceeds from sales of property, plant and | 21,393 | 928 | |
equipment, and intangible assets | |||
Purchase of investments in subsidiaries | (1,979) | (4,216) | |
Purchase of investment securities | (143) | (207) | |
Proceeds from sales of investment securities | 44 | 117 | |
Payments for loans receivable | (98) | (60) | |
Collection of loans receivable | 21 | 16 | |
Payments for transfer of business | (2,585) | (307) | |
Others | (2,127) | (80) | |
Net cash provided by (used in) investing | (19,997) | (38,203) | |
activities | |||
Cash flows from financing activities | |||
Increase (decrease) in short-term loans | 1,559 | 25,344 | |
payable | |||
Proceeds from bonds issuance and long-term | 0 | 2,543 | |
loans payable | |||
Redemption of bonds and repayments of long- | (26,005) | (8,328) | |
term loans payable | |||
Repayments of lease liabilities | - | (14,028) | |
Purchase of treasury shares | (4) | (2) | |
Cash dividends paid | (14,659) | (14,700) | |
Payment of dividends to non-controlling | (23) | - | |
shareholders | |||
Others | 0 | 0 | |
Net cash provided by (used in) financing | (39,132) | (9,172) | |
activities | |||
Effect of exchange rate changes on cash and | 36 | (1,840) | |
cash equivalents | |||
Net increase (decrease) in cash and cash | (22,246) | (37,608) | |
equivalents | |||
Cash and cash equivalents at the beginning of | 149,913 | 124,830 | |
the period | |||
Cash and cash equivalents at the end of the | 127,667 | 87,222 | |
period | |||
- 19-
-
Notes to the Condensed Consolidated Financial Statements
[Notes Regarding Going Concern Assumptions] Not applicable.
[Changes in Accounting Policies]
The Group has changed the following accounting policies effective from the nine months ended December 31, 2019. Other than these policies, there is no change in the significant accounting policies applied to the Group's condensed consolidated financial statements from those applied to the consolidated financial statements of the fiscal year ended March 31, 2019.
(Adoption of IFRS 16)
The Group adopted IFRS 16 Leases(issued in January 2016) effective from the three months ended June 30, 2019.
For lease transactions as a lessee, excluding short-term leases and leases of low-value assets, the Group recognizes right-of-use assets and lease liabilities at the commencement date of the lease.
The Group measures lease liabilities at the present value of the lease payments that are not paid at the commencement date, discounted using the interest rate implicit in the lease. If that rate cannot be readily determined, the Group uses the lessee's incremental borrowing rate.
The Group measures right-of-use assets at the amount of the initial measurement of the lease liability, adjusted by any initial direct costs and adding restoring costs of the underlying asset. After the commencement date, the Group presents the right-of-use assets at cost less any accumulated depreciation and any accumulated impairment losses. Costs are depreciated over the shorter period of the estimated useful life or the lease term of the underlying asset on a straight-line basis.
Lease payments relating to short-term leases and leases of low-value assets are recognized as expenses on a straight-line basis over the lease term.
The Group has applied IFRS 16 retrospectively in accordance with the transitional provisions and recognized the cumulative effect of initially applying IFRS 16 as an adjustment to the opening balance of retained earnings for the three months ended June 30, 2019. The comparative information included in the condensed consolidated financial statements is not restated. With regard to assessing whether a contract contains a lease or not, the Group has selected a practical expedient under IFRS 16 and applied the assessments made under IAS 17 Leasesand IFRIC 4 Determining whether an Arrangement contains a Lease.
Associated with the adoption of IFRS 16, the Group recognizes right-of-use assets and lease liabilities at the date of initial application of IFRS 16 for leases previously classified as operating leases applying IAS 17, excluding short-term leases and leases of low-value assets. A lease liability is measured at the present value of the remaining lease payments at the commencement date, discounted using the lessee's incremental borrowing rate. A right-of-use asset is measured at either of the following:
- its carrying amount as if IFRS 16 had been applied since the commencement date, but discounted using the lessee's incremental borrowing rate at the date of initial application of IFRS 16; or
- an amount equal to the lease liability, adjusted by the amount of any prepaid or accrued lease payments relating to that lease.
The Group uses the following practical expedients under IFRS 16 when applying IFRS 16 to leases previously classified as operating leases applying IAS 17:
- relying on its assessment of whether leases are onerous applying IAS 37Provisions, Contingent Liabilities and Contingent Assetsimmediately before the date of initial application as an alternative to performing an impairment review;
- accounting for leases for which the lease term ends within 12 months of the date of initial application in the same way asshort-term leases; and
- excluding initial direct costs from the measurement of theright-of-use asset at the date of initial application.
- 20-
As a result, right-of-use assets, included in property, plant and equipment, and lease liabilities increased by 110,923 million yen and 111,979 million yen, respectively, and retained earnings decreased by 744 million yen in the condensed consolidated statement of financial position at the beginning of the three months ended June 30, 2019, compared with those accounted for under the previous accounting standards. The weighted average incremental borrowing rate applied to the measurement of lease liabilities is 2.44%. The difference between minimum lease payments based on non-cancellable operating lease contracts, which were disclosed by applying IAS 17 at the end of the previous fiscal year, and lease liabilities recognized at the date of initial application of IFRS 16 is due mainly to the recognition of lease liabilities for the lease terms exceeding the non-cancellable period of the leases of buildings and land.
For lease transactions as a lessor, there is no significant change in the accounting policies applied to the previous accounting standards.
[Other Expenses]
Components of other expenses are as follows:
(Millions of yen) | ||
Nine months ended | Nine months ended | |
December 31, 2018 | December 31, 2019 | |
Loss on sales and disposals of property, plant and | 1,902 | 3,361 |
equipment, and intangible assets | ||
Business structure improvement expenses | 1,986 | 2,301 |
Others | 3,837 | 5,158 |
Total | 7,725 | 10,821 |
- 21-
[Segment Information]
(a) Reportable segments
Operating segments of the Group are its components for which separate financial data is available and that are examined on a regular basis for the purpose of enabling the Group's management to decide on the allocation of resources and evaluate results of operations. The Group has established business segments by product and service category and formulates comprehensive strategies and conducts business activities in Japan and overseas for the products and services of each business category. Since the Group comprises segments organized by product and service category, the Group has established four reportable segments as the "Office Business," "Professional Print Business," "Healthcare Business," and "Industrial Business" based on its operating segments after taking into account the primary usage of products of the respective businesses in the markets and their similarities. The new businesses not included in these reportable segments, such as Bio-Healthcare, are reported as "Others."
The business of each reportable segment is as follows:
Business content | |
Office Business | Development, manufacture, and sales of MFPs and related |
consumables; provision of related solutions and services | |
Professional Print Business | Development, manufacture, and sales of digital printing |
systems and related consumables; provision of various printing | |
services, solutions, and services | |
Development, manufacture, and sales of, and provision of | |
Healthcare Business | services for, diagnostic imaging systems (digital X-ray |
diagnostic imaging, diagnostic ultrasound systems, and others); | |
provision of digitalization, networking, solutions, and services in | |
the medical field | |
Materials and Components | |
Development, manufacture, and sales of products, such as | |
functional film for displays, OLED lighting, industrial inkjet | |
Industrial Business | printheads, and lenses for industrial and professional use |
Optical Systems for Industrial Use | |
Development, manufacture, and sales of measuring | |
instruments and others |
- 22-
(b) Information by reportable segment
Information by reportable segment of the Group is as follows. Segment profit refers to operating profit of the segment.
Nine months ended December 31, 2018
(Millions of yen)
Reportable segments | Adjustments |
Office | Professional | Healthcare | Industrial | Others | (Note 2) | Total | ||||
Total | (Note 3) | |||||||||
Business | Business | Business | ||||||||
Business | ||||||||||
Revenue | ||||||||||
External | 436,480 | 165,090 | 61,105 | 88,416 | 751,092 | 26,486 | - | 777,578 | ||
Intersegment | 1,846 | 252 | 594 | 4,208 | 6,900 | 14,527 | (21,428) | - | ||
(Note 1) | ||||||||||
Total | 438,326 | 165,342 | 61,699 | 92,624 | 757,992 | 41,013 | (21,428) | 777,578 | ||
Segment profit | 34,338 | 8,740 | 1,175 | 17,037 | 61,292 | (12,974) | 2,192 | 50,509 | ||
(loss) | ||||||||||
Nine months ended December 31, 2019 | ||||||||||
(Millions of yen) | ||||||||||
Reportable segments | Adjustments | |||||||||
Office | Professional | Healthcare | Industrial | Others | (Note 2) | Total | ||||
Total | (Note 3) | |||||||||
Business | Business | Business | ||||||||
Business | ||||||||||
Revenue | ||||||||||
External | 412,186 | 158,727 | 63,195 | 82,921 | 717,030 | 30,005 | - | 747,036 | ||
Intersegment | 1,445 | 384 | 471 | 2,523 | 4,825 | 12,465 | (17,291) | - | ||
(Note 1) | ||||||||||
Total | 413,631 | 159,112 | 63,667 | 85,444 | 721,856 | 42,471 | (17,291) | 747,036 | ||
Segment profit | 22,551 | 5,036 | 587 | 15,354 | 43,530 | (15,170) | (17,779) | 10,579 | ||
(loss) | ||||||||||
(Notes)
- Intersegment revenue is based on market prices and others.
- Adjustments of revenue are elimination of intersegment transactions.
- Adjustments of segment profit are elimination of intersegment transactions and corporate expenses, which consist of general and administrative expenses and basic research expenses not attributable to any of the reportable segments. They include other revenue and other expenses not attributable to any of the reportable segments.
- 23-
Three months ended December 31, 2018
(Millions of yen)
Reportable segments | Adjustments |
Office | Professional | Healthcare | Industrial | Others | (Note 2) | Total | |||||
Total | (Note 3) | ||||||||||
Business | Business | Business | |||||||||
Business | |||||||||||
Revenue | |||||||||||
External | 145,711 | 55,846 | 20,872 | 28,832 | 251,263 | 9,228 | - | 260,491 | |||
Intersegment | 968 | 45 | 180 | 1,565 | 2,759 | 4,917 | (7,677) | - | |||
(Note 1) | |||||||||||
Total | 146,679 | 55,891 | 21,053 | 30,398 | 254,022 | 14,145 | (7,677) | 260,491 | |||
Segment profit | 11,649 | 3,328 | 342 | 5,590 | 20,910 | (5,090) | 84 | 15,904 | |||
(loss) | |||||||||||
Three months ended December 31, 2019 | |||||||||||
(Millions of yen) | |||||||||||
Reportable segments | Adjustments | ||||||||||
Office | Professional | Healthcare | Industrial | Others | (Note 2) | Total | |||||
Total | (Note 3) | ||||||||||
Business | Business | Business | |||||||||
Business | |||||||||||
Revenue | |||||||||||
External | 138,971 | 55,428 | 18,127 | 26,894 | 239,421 | 10,125 | - | 249,547 | |||
Intersegment | 707 | 55 | 176 | 858 | 1,798 | 4,036 | (5,835) | - | |||
(Note 1) | |||||||||||
Total | 139,679 | 55,484 | 18,304 | 27,752 | 241,220 | 14,161 | (5,835) | 249,547 | |||
Segment profit | 5,423 | 2,947 | 200 | 5,644 | 14,216 | (3,594) | (5,475) | 5,146 | |||
(loss) | |||||||||||
(Notes)
- Intersegment revenue is based on market prices and others.
- Adjustments of revenue are elimination of intersegment transactions.
- Adjustments of segment profit are elimination of intersegment transactions and corporate expenses, which consist of general and administrative expenses and basic research expenses not attributable to any of the reportable segments. They include other revenue and other expenses not attributable to any of the reportable segments.
- 24-
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Konica Minolta Inc. published this content on 03 February 2020 and is solely responsible for the information contained therein. Distributed by Public, unedited and unaltered, on 03 February 2020 09:35:24 UTC