Latest Financial Results (IFRS)

Consolidated Financial Results for the First Quarter Ended June 30, 2018

In the three-month period ended June 30, 2018, conditions in the global economy proved firm due to the support of growth in developed countries witnessing strong consumption as well as in emerging countries. Resource prices were likewise solid. Meanwhile, caution is warranted going forward with regard to the potential impact on the global economy of the trade negotiations being advanced by the United States as well as the economic trends in emerging countries, which are witnessing the depreciation of their currency.
The Company’s revenue for the three-month period ended June 30, 2018, were up year on year due to increased sales in the Metals & Mineral Resources Division, a result of rises in prices and transaction volumes for coal and other resources; in the Automotive Division, a result of the acquisition of a domestic automobile dealership and other businesses.
Profit for the period (attributable to owners of the Company) rose year on year due to higher gross profit and gains on sales of automobile-related companies.

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(Billions of Yen)

FY2017
1Q Results
FY2018
1Q Results
Difference
Revenue 432.4 467.9 +35.5
Gross Profit 51.6 59.9 +8.3
Profit for the period attributable to owners of the Company 14.6 19.8 +5.2

Changes of Yearly Financial Results (Cumulative)

Gross Profit

Profit attributable to owners of the Company

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

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

(Billions of Yen)

FY2017 1Q FY2018 1Q Difference
Automotive 2.8 3.1 +0.3
Aerospace & Transportation Project 0.4 0.7 +0.3
Machinery & Medical Infrastructure (0.1) 0.3 +0.4
Energy & Social Infrastructure 0.2 0.2 +0.0
Metals & Mineral Resources 4.2 8.2 +4.0
Chemicals 2.3 2.2 (0.1)
Foods & Agriculture Business 2.1 1.2 (0.9)
Retail & Lifestyle Business 1.6 1.7 +0.1
Industrial Infrastructure &
Urban Development
(0.4) (0.2) +0.2
Other 1.5 2.4 +0.9

Factor behind year on year change in earnings

Automotive ¥ 3.1 billion (up ¥0.3 billion YoY)
Increased due to gains on sales of automotive-related companies despite rebound from one-time income recorded in the previous equivalent period
Aerospace & Transportation Project ¥ 0.7 billion (up ¥ 0.3 billion YoY)
Increased due to gains on sales of aircraft
Machinery & Medical Infrastructure ¥ 0.3 billion (up ¥ 0.4 billon YoY)
Increased due to recording of revenue associated with infrastructure projects
Energy & Social Infrastructure ¥ 0.2 billion (UP ¥ 0 billion YoY)
Unchanged year on year
Metals & Mineral Resources ¥ 8.2 billion (up ¥ 4.0 billion YoY)
Increased due to higher prices and transaction volumes of coal and other resources
Chemicals ¥ 2.2 billion (down ¥ (0.1) billion YoY)
Unchanged year on year
Foods & Agriculture Business ¥ 1.2 billion (down ¥ (0.9) billion YoY)
Decreased due to higher material costs in overseas fertilizer businesses
Retail & Lifestyle Business ¥ 1.7 billion (up ¥ 0.1 billion YoY)
Unchanged year on year
Industrial Infrastructure & Urban Development ¥ (0.2) billion (up ¥ 0.2 billion YoY)
Unchanged year on year
Other ¥2.4 billion (up ¥0.9 billion YoY)

Commodity Prices and Exchange Rates

FY2017 Results
(Apr.-Jun.'17 Avg.)
FY2018 Assumption
(Annual Avg.)
FY2018 Results
(Apr.-Jun.'18 Avg.)
Crude oil (Brent) US$50.8 / bbl US$60.0 / bbl US$75.0 / bbl
Thermal Coal *1 US$79.8 / t US$85.0 / t US$105.3 / t
Exchange rate *2 ¥111.4 / US$ ¥105.0 / US$ ¥109.5 / US$
*1
The results in the above table are cited from the GlobalCOAL NEWC Index and differ from our sales prices.
*2
Impact of exchange rate fluctuations on earnings: ¥1/US$ change alters gross profit by approx.
¥0.5 billion annually, profit for the year (attributable to owners of the Company) by approx. ¥0.25 billion annually, and total equity by approx. ¥2.0 billion annually.

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