Latest Financial Results (IFRS)

Consolidated Financial Results for the Year Ended March 31, 2017

The Company’s net sales (JGAAP) for year ended March 31, 2017, decreased due to the impacts of yen appreciation as well as lower sales in the Foods & Agriculture Business Division, a result of the decline in grain transactions, and in the Infrastructure & Environment Business Division, a result of the decline in plant-related transactions.
Gross profit was up thanks to higher income in the Metals & Coal Division resulted from a rise in selling prices in overseas coal businesses as well as income growth in the Aerospace & IT Business Division stemming from an increase in aircraft-related transactions. As a result, the Company was able to post an increase in profit for the year (attributable to owners of the Company) despite the decrease in share of profit of investments accounted for using the equity method.

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(Billions of Yen)

FY2015 FY2016 Difference
Net Sales (JGAAP) 4,006.6 3,745.5 (261.1)
Gross Profit 180.7 200.7 +20.0
Profit for the Year attributable to owners of the Company 36.5 40.8 +4.3

Changes of Yearly Financial Results (Cumulative)

Gross Profit

Profit attributable to owners of the Company

Segment Performance [Profit for the Year attributable to owners of the Company]

Segment Performance [Profit for the Period (Attributable to owners of the Company)]

(Billions of Yen)

FY2015 FY2016 Difference
Automotive 5.9 3.6 (2.3)
Aerospace & IT Business 3.1 9.9 +6.8
Infrastructure & Environment Business 2.2 4.5 +2.3
Energy (6.9) (0.6) +6.3
Metals & Coal 4.7 10.0 +5.3
Chemicals 9.0 8.0 (1.0)
Foods & Agriculture Business 5.0 (6.9) (11.9)
Lifestyle Commodities & Materials 3.1 4.6 +1.5
Retail 3.4 4.1 +0.7
Other 7.0 3.6 (3.4)

Factor behind year on year change in earnings

Automotive \3.6 billion(down \(2.3) billion YoY)
Decreased due to absence of one-time profit recorded in previous fiscal year
Aerospace & IT Business \9.9 billion(up \6.8 billion YoY)
Increased due to aerospace-related earnings contributions and conversion of IT business subsidiary into affiliate through partial sale
Infrastructure & Environment Business \4.5 billion(up \2.3 billon YoY)
Increased due to higher income in domestic solar power generation businesses as well as absence of impairment losses recorded in previous fiscal year
Energy \(0.6) billion(up \6.3 billion YoY)
Loss decreased due to absence of impairment losses recorded in previous fiscal year in relation to oil and gas interests, higher oil price as well as gains on sales of oil and gas interests
Metals & Coal \10.0 billion(up \5.3 billion YoY)
Increased due to higher coal price
Chemicals \8.0 billion(down \(1.0) billion YoY)
Decreased due to impacts of deterioration of product market conditions mainly in the first half of the fiscal year
Foods & Agriculture Business \(6.9) billion(down \(11.9) billion YoY)
Despite improved earnings in overseas fertilizer businesses resulted from lower raw material prices, decreased due to poor performance and impairment losses in grain collection businesses
Lifestyle Commodities & Materials \4.6 billion(up \1.5 billion YoY)
Increased due to strong commodity-related performance as well as absence of impairment losses recorded in overseas woodchip manufacturing businesses during previous fiscal year
Retail \4.1 billion(up \0.7 billion YoY)
Increased due to gain on sales of commercial facilities in Japan
Other \ 3.6 billion(down \ (3.4) billion YoY)
Decreased due to absence of one-time profit recorded in previous fiscal year

Commodity Prices and Exchange Rates

FY2015 Results
(Annual Avg.)
FY2016 Results
(Annual Avg.)
FY2017 Assumption
(Annual Avg.)
Crude oil (Brent)*1 US$48.7/bbl US$49.9/bbl US$50.0/bbl
Thermal Coal *2 US$60.4/t US$73.6/t US$77.5/t
Exchange rate *3 ¥120.2/US$ ¥108.7/US$ ¥110.0/US$
*1
Impact of fluctuations in the crude oil price on earnings: A US$1/bbl change alters profit for the year (attributable to owners of the Company) by approx. ¥20 million annually.
*2
Actual thermal coal prices are “globalCOAL NEWC Index”.
*3
Impact of fluctuations in the exchange rate on earnings: ¥1/US$ change alters gross profit by approx. ¥0.3 billion annually, profit for the year (attributable to owners of the Company) by approx. ¥0.1 billion annually, and total equity by approx. ¥1.5 billion

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