LONDON--(BUSINESS WIRE)--
This announcement is for our U.S.$5,000,000,000 Euro Medium Term Note Programme.
Consolidated Financial Results for the Three-Month Period Ended June 30, 2014 [IFRS] |
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Tokyo, August 6, 2014 - Mitsui & Co., Ltd. announced its consolidated financial results for the three-month period ended June 30, 2014, based on International Financial Reporting Standards ("IFRS"). | ||||||||||||||||||||||||||||||||||||||||||||||
Mitsui & Co., Ltd. and subsidiaries | ||||||||||||||||||||||||||||||||||||||||||||||
(Web Site : http://www.mitsui.com/jp/en/) |
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President and Chief Executive Officer : Masami Iijima | ||||||||||||||||||||||||||||||||||||||||||||||
Investor Relations Contacts : Michihiro Nose, General Manager, Investor Relations Division TEL 81-3-3285-7533 | ||||||||||||||||||||||||||||||||||||||||||||||
1. Consolidated financial results (Unreviewed) | ||||||||||||||||||||||||||||||||||||||||||||||
(1) Consolidated operating results information for the three-month period ended June 30, 2014 | ||||||||||||||||||||||||||||||||||||||||||||||
(from April 1, 2014 to June 30, 2014) | ||||||||||||||||||||||||||||||||||||||||||||||
Three-month period ended June 30, | ||||||||||||||||||||||||||||||||||||||||||||||
2014 | 2013 | |||||||||||||||||||||||||||||||||||||||||||||
% | % | |||||||||||||||||||||||||||||||||||||||||||||
Revenue | Millions of yen | 1,370,526 | △ 2.6 | 1,407,293 | - | |||||||||||||||||||||||||||||||||||||||||
Profit before income taxes | Millions of yen | 173,134 | △ 9.7 | 191,712 | - | |||||||||||||||||||||||||||||||||||||||||
Profit for the period | Millions of yen | 133,530 | △ 4.1 | 139,264 | - | |||||||||||||||||||||||||||||||||||||||||
Profit for the period attributable to owners of the parent | Millions of yen | 127,806 | △ 3.9 | 132,968 | - | |||||||||||||||||||||||||||||||||||||||||
Comprehensive income for the period | Millions of yen | 129,254 | △ 1.8 | 131,685 | - | |||||||||||||||||||||||||||||||||||||||||
Earnings per share attributable to owners of the parent, basic | Yen | 71.30 | 72.85 | |||||||||||||||||||||||||||||||||||||||||||
Earnings per share attributable to owners of the parent, diluted | Yen | 71.30 | - | |||||||||||||||||||||||||||||||||||||||||||
Notes: | ||||||||||||||||||||||||||||||||||||||||||||||
1. Percentage figures for Revenue, Profit before income taxes, Profit for the period, Profit for the period attributable to owners of the parent, and Comprehensive income for the period represent changes from the previous year.
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2. Diluted earnings per share attributable to owners of the parent for the three-month period ended June 30, 2013 is not disclosed as there are no dilutive potential shares.
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(2) Consolidated financial position information | ||||||||||||||||||||||||||||||||||||||||||||||
June 30, 2014 | March 31, 2014 | |||||||||||||||||||||||||||||||||||||||||||||
Total assets | Millions of yen | 11,582,231 | 11,491,319 | |||||||||||||||||||||||||||||||||||||||||||
Total equity | Millions of yen | 4,164,731 | 4,100,304 | |||||||||||||||||||||||||||||||||||||||||||
Total equity attributable to owners of the parent | Millions of yen | 3,878,556 | 3,815,767 | |||||||||||||||||||||||||||||||||||||||||||
Equity attributable to owners of the parent ratio | % | 33.5 | 33.2 | |||||||||||||||||||||||||||||||||||||||||||
2. Dividend information | ||||||||||||||||||||||||||||||||||||||||||||||
Year ended March 31, | Year ending March 31, 2015 (Forecast) | |||||||||||||||||||||||||||||||||||||||||||||
2015 | 2014 | |||||||||||||||||||||||||||||||||||||||||||||
Interim dividend per share | Yen | 25 | 32 | |||||||||||||||||||||||||||||||||||||||||||
Year-end dividend per share | Yen | 34 | 32 | |||||||||||||||||||||||||||||||||||||||||||
Annual dividend per share | Yen | 59 | 64 |
3. Forecast of consolidated operating results for the year ending March 31, 2015 (from April 1, 2014 to March 31, 2015) | |||||||||||||||||||||||||||||||||||||
Year ending
March 31, 2015 |
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Profit attributable to owners of the parent | Millions of yen | 380,000 | |||||||||||||||||||||||||||||||||||
Earnings per share attributable to owners of the parent, basic | Yen | 211.99 | |||||||||||||||||||||||||||||||||||
Note : | |||||||||||||||||||||||||||||||||||||
We maintain our forecast profit attributable to owners of the parent for the year ending March 31, 2015 of ¥380.0 billion announced | |||||||||||||||||||||||||||||||||||||
together with the results of fiscal year ended March 2014. No updates have been made to this forecast. | |||||||||||||||||||||||||||||||||||||
4. Others | |||||||||||||||||||||||||||||||||||||
(1) Increase/decrease of important subsidiaries during the period : None | |||||||||||||||||||||||||||||||||||||
(2) Number of shares: |
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June 30, 2014 | March 31, 2014 | ||||||||||||||||||||||||||||||||||||
Number of shares of common stock issued, including treasury stock | 1,796,514,127 | 1,829,153,527 | |||||||||||||||||||||||||||||||||||
Number of shares of treasury stock | 4,004,166 | 36,641,439 | |||||||||||||||||||||||||||||||||||
Three-month period ended June 30, 2014 | Three-month period ended June 30, 2013 | ||||||||||||||||||||||||||||||||||||
Average number of shares of common stock outstanding | 1,792,511,039 | 1,825,124,974 | |||||||||||||||||||||||||||||||||||
Disclosure Regarding Quarterly Review Procedures: | |||||||||||||||||||||||||||||||||||||
As of the date of disclosure of this quarterly earnings report, a review of the quarterly financial statements is being carried out in accordance | |||||||||||||||||||||||||||||||||||||
with the Financial Instruments and Exchange Act. | |||||||||||||||||||||||||||||||||||||
A Cautionary Note on Forward-Looking Statements: | |||||||||||||||||||||||||||||||||||||
This report contains forward-looking statements including those concerning future performance of Mitsui & Co., Ltd. ("Mitsui"), and those | |||||||||||||||||||||||||||||||||||||
statements are based on Mitsui's current assumptions, expectations and beliefs in light of the information currently possessed by it. Various factors | |||||||||||||||||||||||||||||||||||||
may cause Mitsui's actual results to be materially different from any future performance expressed or implied by these forward-looking statements. | |||||||||||||||||||||||||||||||||||||
Therefore, these statements do not constitute a guarantee by Mitsui that such future performance will be realized. | |||||||||||||||||||||||||||||||||||||
For cautionary notes with respect to forward-looking statements, please refer to the "Notice" section on p.16. | |||||||||||||||||||||||||||||||||||||
Supplementary materials and IR meeting on financial results: | |||||||||||||||||||||||||||||||||||||
Supplementary materials on financial results can be found on our web site. | |||||||||||||||||||||||||||||||||||||
We will hold an IR meeting on financial results for analysts and institutional investors on August 6, 2014. | |||||||||||||||||||||||||||||||||||||
Contents of the meeting (English and Japanese) will be posted on our web site immediately after the meeting. |
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Table of Contents
1. Qualitative Information
(1) Operating Environment…………………………………………………………………………………2
(2) Results of Operations………………………………………………………………………………………2
(3) Financial Condition and Cash Flows……………………………………………………………………10
(4) Information Concerning Profit Forecast for the Year Ending March 31, 2015…………………………14
2. Other Information…………………………………………………………………………………………14
3. Condensed Consolidated Financial Statements
(1) Condensed Consolidated Statements of Financial Position........................................................................15
(2) Condensed Consolidated Statements of Income and Comprehensive Income...........................................17
(3) Condensed Consolidated Statements of Changes in Equity.......................................................................18
(4) Condensed Consolidated Statements of Cash Flows..................................................................................19
(5) Assumption for Going Concern..................................................................................................................19
(6) Segment Information...................................................................................................................................20
1. Qualitative Information
As of the date of disclosure of this quarterly earnings report, the review procedures for quarterly financial statements in accordance with the Financial Instruments and Exchange Act are in progress.
(1) Operating Environment
The following is an overview of the operating environment for the three-month period ended June 30, 2014, and afterwards.
On the whole, advanced nations experienced economic recovery and disinflation while emerging nations experienced economic slowdown and high inflation, with gaps between the two becoming notable in terms of the economy and prices.
Although the U.S. economy suffered a greater-than-expected fall in GDP from January to March due to a severe cold snap, economic fundamentals remained strong as evidenced by steady employment growth, an upturn in the housing market, the wealth effect generated by higher stock prices, and robust corporate earnings. These effects are expected to gradually accelerate U.S. economic growth throughout the second half of the year.
In the Japanese economy, the increased demand prior to the consumption tax hike in April 2014 exceeded previous forecast and there has been consequent downturn in demand from April. Even so, the resultant economic slowdown is forecast to be only temporary mainly due to strong employment and income environment, yen depreciation, and higher stock prices.
In Europe, although the economy has finally bottomed out, economic growth is expected to remain low for the time being reflecting a continuation in the harsh employment situation, heightened deflation concerns due to a substantial gap between supply and demand, and a slump in domestic demand.
In China, government policies that take into account both avoiding economic downturn through fiscal measures and structural reforms are continuing. Although an economic upturn seems unlikely, China is forecast to maintain a certain degree of economic growth in the future.
Looking at other emerging nations, currencies and stock prices strengthened due to eased concerns about a dramatic outflow of funds following the start of scaling back by the U.S. of its third round of quantitative easing (QE3), but slowness in improvement of economic fundamentals such as current account deficits, fiscal deficits and inflation remains a cause for concern.
Turning to current conditions in commodities markets, prices softened due to persistent concerns about a fall in the economic growth rate of China. The spot reference price for iron ore CFR North China (Fe 62%) temporarily fell below the US$90-per-ton level in June. Although the Dubai Crude spot price rose at some points due to heightened geopolitical risks such as problems in Iraq, the price remained stable around US$105 per barrel.
The global economy faces risk factors including slower economic growth in China, heightened geopolitical risks, and the outflow of funds from emerging countries affected by U.S. monetary policy. Nevertheless, we believe that economic growth in the U.S. and other advanced nations will contribute to pull the global economy out of the standstill it experienced in the first half of the year, and the recovery will gradually gain momentum.
(2) Results of Operations
1) Analysis of Consolidated Income Statements
Revenue
Mitsui & Co., Ltd. (“Mitsui”) and its subsidiaries (collectively “we”) recorded total revenue of ¥1,370.5 billion for the three-month period ended June 30, 2014 (“current period”), a decline of ¥36.8 billion from ¥1,407.3 billion for the corresponding three-month period of the previous year (“previous period”).
- Revenue from sales of products for the current period was ¥1,238.0 billion, a decline of ¥47.5 billion from ¥1,285.5 billion for the previous period, as a result of the following:
- The Energy Segment reported a decline of ¥98.4 billion. The sale of Mitsui Oil Co., Ltd. resulted in a decline of ¥74.1 billion and petroleum trading operations recorded a decline of ¥65.0 billion due to a decline in trading volume. Meanwhile, oil and gas producing operations recorded an increase of ¥18.2 billion reflecting higher gas prices in the United States and increased production volume. MMGS Inc., a gas distribution subsidiary in the United States, also reported an increase of ¥12.3 billion due to an increase in sales volume.
- The Iron & Steel Products Segment reported a decline of ¥9.2 billion. Transactions of line pipe to LNG projects had been almost shipped by the end of the previous year and trading volume of other steel products also declined.
- The Americas Segment reported an increase of ¥55.5 billion due to an increase in trading volume of soybean.
- Revenue from rendering of services for the current period was ¥100.7 billion, the same amount as the previous period.
- Other revenue for the current period was ¥31.8 billion, an increase of ¥10.7 billion from ¥21.1 billion for the previous period. The commodity derivatives trading business at Mitsui recorded an increase in other revenue corresponding to a deterioration of ¥9.8 billion in the foreign exchange gains and losses posted in other expenses.
Gross Profit
Gross profit for the current period was ¥210.4 billion, a decline of ¥0.9 billion from ¥211.3 billion for the previous period.
- The Innovation & Corporate Development Segment reported an increase of ¥12.0 billion. The commodity derivatives trading business at Mitsui recorded an increase in gross profit corresponding to a deterioration of ¥9.8 billion in the foreign exchange gains and losses posted in other expense.
- The Mineral & Metal Resources Segment reported a decline of ¥4.8 billion. Iron ore mining operations in Australia reported a decline of ¥5.2 billion due to lower iron ore prices, which was partially offset by an increase in income from infrastructure usage and an increase in sales volume.
- The Iron & Steel Products Segment reported a decline of ¥4.3 billion. Transactions of line pipe to LNG projects had been almost shipped by the end of the previous year and trading volume of other steel products also declined.
Other Income (Expenses)
Selling, General and Administrative Expenses
Selling, general and administrative expenses for the current period were ¥139.2 billion, a decline of ¥1.6 billion from ¥140.8 billion for the previous period. The table below provides a breakdown of selling, general and administrative expenses used for our internal review.
Gain on securities and other investments—net
Gain on securities and other investments for the current period was ¥1.2 billion, a decline of ¥10.2 billion from ¥11.4 billion for the previous period.
- There were miscellaneous small transactions for the current period.
- For the previous period, an ¥8.4 billion gain was recorded due to a reversal of impairment loss on shares in Penske Automotive Group, Inc., reflecting a rise in the share price.
Impairment Loss of Fixed Assets
Impairment loss of fixed assets for the current period was ¥0.0 billion, a decline of ¥0.1 billion from ¥0.1 billion for the previous period. There were miscellaneous small transactions in both periods.
Gain on Disposal or Sales of Fixed Assets—Net
Gain on disposal or sales of fixed assets for the current period was ¥0.5 billion, an increase of ¥0.4 billion from ¥0.1 billion for the previous period. There were miscellaneous small transactions in both periods.
Other Expense—Net
Other expense for the current period was ¥1.6 billion, an increase of ¥1.3 billion from ¥0.3 billion for the previous period.
- For the current period, exploration expenses totaled ¥4.4 billion, including those recorded at oil and gas producing businesses.
- For the previous period, exploration expenses totaled ¥6.3 billion, including those recorded at oil and gas producing businesses. Furthermore, the Innovation & Corporate Development Segment recorded foreign exchange gains of ¥8.9 billion in the commodity derivatives trading business at Mitsui, which corresponded to related gross profit in the same segment.
Finance Income (Costs)
Interest Income
Interest income for the current period was ¥8.4 billion, an increase of ¥3.0 billion from ¥5.4 billion for the previous period.
Dividend Income
Dividend income for the current period was ¥41.0 billion, a decline of ¥8.8 billion from ¥49.8 billion for the previous period.
- Dividends from six LNG projects (Sakhalin II, Qatargas 1, Abu Dhabi, Oman, Qatargas 3 and Equatorial Guinea) were ¥29.1 billion in total, a decline of ¥12.4 billion from ¥41.5 billion for the previous period, due to a decline in dividends received from the Sakhalin II project.
- Dividends from preferred shares in JA Mitsui Leasing Ltd. increased by ¥4.0 billion.
Interest Expense
Interest expense for the current period was ¥11.7 billion, a decline of ¥0.5 billion from ¥12.2 billion for the previous period. The following table provides the month-end average of three-month Tibor for the Japanese yen and three-month Libor for the U.S. dollar for the both periods.
Current Period | Previous Period | ||||
Japanese yen | 0.21% | 0.23% | |||
U.S. dollar | 0.23% | 0.27% |
Share of Profit of Investments Accounted for Using the Equity Method
Share of profit of investments accounted for using the equity method for the current period was ¥64.3 billion, a decline of ¥2.8 billion from ¥67.1 billion for the previous period.
- Valepar S.A. reported a decline of ¥4.0 billion, reflecting lower iron ore prices and impairment losses on assets related to an iron ore mine in Guinea and a coal mine in Australia owned.
- For the previous period, Arch Pharmalabs Limited, a pharmaceutical contract manufacturer in India, posted a ¥4.2 billion impairment loss on fixed assets and other assets.
Income Taxes
Income taxes for the current period were ¥39.6 billion, a decline of ¥12.8 billion from ¥52.4 billion for the previous period. Profit before income taxes for the current period was ¥173.1 billion, a decline of ¥18.6 billion from ¥191.7 billion for the previous period. In response, applicable income taxes also declined.
The effective tax rate for the current period was 22.9%, a decline of 4.5% from 27.4% for the previous period. The major factor for the decline was a decrease in the ratio of income tax effect related to equity accounting against profit before income taxes.
Profit for the Period
As a result of the above factors, profit for the period was ¥133.5 billion, a decline of ¥5.8 billion from ¥139.3 billion for the previous period.
Profit for the Period Attributable to Owners of the Parent
Profit for the period attributable to owners of the parent was ¥127.8 billion, a decline of ¥5.2 billion from ¥133.0 billion for the previous period.
2) EBITDA
We use EBITDA as a measure of underlying earning power from the current period.
EBITDA is the total of “gross profit,” “selling, general and administrative expenses,” “dividend income” and “share of profit of investments accounted for using the equity method” from the consolidated states of income and “depreciation and amortization” from the consolidated statements of cash flows.
(Billions of Yen) | Current Period | Previous Period | Change | ||||||||
EBITDA (a+b+c+d+e) (*1) | 244.2 | 240.1 | +4.1 | ||||||||
Gross profit | a | 210.4 | 211.3 | (0.9) | |||||||
Selling, general and administrative expenses | b | (139.2) | (140.8) | +1.6 | |||||||
Dividend Income | c | 41.0 | 49.8 | (8.8) | |||||||
Profit of equity method investments (*2) | d | 64.3 | 67.1 | (2.8) | |||||||
Depreciation and amortization | e | 67.7 | 52.7 | +15.0 |
*1 M ay not match with the total of items due to rounding off. The same shall apply hereafter.
*2 “Profit of equity method investments” means “share of profit of investments accounted for using the equity method” in the consolidated statements of income. The same shall apply hereafter.
3) Operating Results by Operating Segment
Iron & Steel Products Segment
(Billions of Yen) | Current Period | Previous Period | Change | |||||
EBITDA | 2.1 | 7.3 | (5.2) | |||||
Gross profit | 10.1 | 14.4 | (4.3) | |||||
Selling, general and administrative expenses | (9.6) | (9.4) | (0.2) | |||||
Dividend Income | 0.8 | 0.5 | +0.3 | |||||
Profit of equity method investments | 0.5 | 1.4 | (0.9) | |||||
Depreciation and amortization | 0.3 | 0.3 | 0.0 | |||||
Profit for the period attributable to owners of the parent | 1.0 | 3.0 | (2.0) |
EBITDA declined by ¥5.2 billion, mainly due to the following factors:
Gross profit declined by ¥4.3 billion. Transactions of line pipe to LNG projects had been almost shipped by the end of the previous year and trading volume of other steel products also declined.
Profit of equity method investments declined by ¥0.9 billion.
Profit for the period attributable to owners of the parent declined by ¥2.0 billion. In addition to the above-mentioned factors, foreign exchange losses corresponding to transactions of line pipe declined by ¥1.9 billion.
Mineral & Metal Resources Segment
(Billions of Yen) | Current Period | Previous Period | Change | |||||
EBITDA | 71.3 | 76.1 | (4.8) | |||||
Gross profit | 45.0 | 49.8 | (4.8) | |||||
Selling, general and administrative expenses | (10.0) | (10.4) | +0.4 | |||||
Dividend Income | 0.5 | 0.3 | +0.2 | |||||
Profit of equity method investments | 21.9 | 26.6 | (4.7) | |||||
Depreciation and amortization | 13.8 | 10.0 | +3.8 | |||||
Profit for the period attributable to owners of the parent | 38.7 | 39.6 | (0.9) |
EBITDA declined by ¥4.8 billion, mainly due to the following factors:
Gross profit declined by ¥4.8 billion reflecting an impact from lower iron ore prices on iron ore mining operations in Australia.
As for iron ore pricing, the majority of contract prices applied to products sold during the current period were based on pricing that more closely reflects current spot reference prices, the same pricing as applied in the previous year, such as a daily average of spot reference prices for the current quarter of shipments and a daily average of spot reference prices for the shipment month.
Mitsui Iron Ore Development Pty. Ltd. reported a decline of ¥5.1 billion in gross profit, reflecting lower iron ore prices, which was partially offset by an increase in income from infrastructure usage and an increase in sales volume owing to increased capacity.
Profit of equity method investments declined by ¥4.7 billion. Valepar S.A. posted ¥8.4 billion of profit, a decline of ¥4.0 billion from ¥12.4 billion for the previous period, reflecting lower iron ore prices and impairment losses on assets related to an iron ore mine in Guinea and a coal mine in Australia.
Depreciation and amortization increased by ¥3.8 billion. Iron ore mining operations in Australia reported an increase of ¥3.6 billion.
Profit for the period attributable to owners of the parent declined by ¥0.9 billion.
Machinery & Infrastructure Segment
(Billions of Yen) | Current Period | Previous Period | Change | ||||||
EBITDA | 16.5 | 14.0 | 2.5 | ||||||
Gross profit | 27.4 | 27.7 | (0.3) | ||||||
Selling, general and administrative expenses | (31.9) | (31.2) | (0.7) | ||||||
Dividend Income | 1.3 | 1.2 | +0.1 | ||||||
Profit of equity method investments | 15.0 | 11.9 | +3.1 | ||||||
Depreciation and amortization | 4.7 | 4.4 | +0.3 | ||||||
Profit for the period attributable to owners of the parent | 11.6 | 9.8 | +1.8 |
EBITDA increased by ¥2.5 billion, mainly due to the following factors:
Gross profit declined by ¥0.3 billion.
- The Infrastructure Projects Business Unit reported the same amount as the previous period.
- The Integrated Transportation Systems Business Unit reported a decline of ¥0.3 billion.
Profit of equity method investments increased by ¥3.1 billion.
- The Infrastructure Projects Business Unit reported a decline of ¥0.1 billion. IPP businesses posted profit of ¥6.3 billion in total, a decline of ¥1.6 billion from ¥7.9 billion for the previous period. A decline of ¥3.0 billion was caused by the one-time negative factor related to deferred tax recorded in the current period. Meanwhile, mark-to-market valuation gains and losses, such as those on long-term power derivative contracts and long-term fuel purchase contracts, improved by ¥1.8 billion to a gain of ¥2.1 billion from ¥0.3 billion for the previous period.
- The Integrated Transportation Systems Business Unit reported an increase of ¥3.2 billion. Automotive-related business in North America achieved a solid performance.
Profit for the period attributable to owners of the parent increased by ¥1.8 billion. In addition to the above-mentioned factors, in the previous period, this segment recorded a ¥6.7 billion gain due to a reversal of impairment loss on shares in Penske Automotive Group, Inc., reflecting a rise in the share price.
Chemicals Segment
(Billions of Yen) | Current Period | Previous Period | Change | ||||||
EBITDA | 6.1 | 7.9 | (1.8) | ||||||
Gross profit | 18.5 | 20.3 | (1.8) | ||||||
Selling, general and administrative expenses | (16.7) | (16.7) | 0.0 | ||||||
Dividend Income | 0.5 | 0.7 | (0.2) | ||||||
Profit of equity method investments | 1.5 | 1.5 | 0.0 | ||||||
Depreciation and amortization | 2.3 | 2.1 | +0.2 | ||||||
Profit for the period attributable to owners of the parent | 2.6 | 3.9 | (1.3) |
EBITDA declined by ¥1.8 billion, mainly due to the following factors:
Gross profit declined by ¥1.8 billion.
- The Basic Chemicals Business Unit reported an increase of ¥0.1 billion.
- The Performance Chemicals Business Unit reported a decline of ¥1.9 billion. P.T. Kaltim Pasifik Amoniak, an ammonia producer in Indonesia, reported a decline of ¥3.1 billion due to a shutdown at the end of previous year as a result of an asset transfer under the build-operate-transfer (BOT) contract.
Profit of equity method investments was the same amount as the previous period.
Profit for the period attributable to owners of the parent declined by ¥1.3 billion.
Energy Segment
(Billions of Yen) | Current Period | Previous Period | Change | ||||||
EBITDA | 119.5 | 121.1 | (1.6) | ||||||
Gross profit | 52.9 | 50.2 | +2.7 | ||||||
Selling, general and administrative expenses | (13.7) | (15.0) | +1.3 | ||||||
Dividend Income | 30.0 | 42.7 | (12.7) | ||||||
Profit of equity method investments | 13.7 | 16.6 | (2.9) | ||||||
Depreciation and amortization | 36.6 | 26.7 | +9.9 | ||||||
Profit for the period attributable to owners of the parent | 56.7 | 64.7 | (8.0) |
EBITDA declined by ¥1.6 billion yen, mainly due to the following factors:
The weighted average crude oil prices applied to our operating results for the current period and the previous period were estimated to be US$111 and US$112 per barrel, respectively.
Gross profit increased by ¥2.7 billion, primarily due to the following factors:
- Mitsui E&P USA LLC reported an improvement of ¥6.0 billion, reflecting higher gas prices in the United States.
- Mitsui E&P Australia Pty Limited reported an improvement of ¥5.2 billion due to a reversal of declined production during the previous period associated with refurbishment of its oil production facility.
- A decline of ¥3.1 billion was recorded from LNG transactions.
Dividend income decreased by ¥12.7 billion due to a decline in dividends received from the Sakhalin II project. Dividends from six LNG projects (Sakhalin II, Qatargas 1, Abu Dhabi, Oman, Qatargas 3 and Equatorial Guinea) were ¥29.1 billion in total, a decline of ¥12.4 billion from ¥41.5 billion for the previous period.
Profit of equity method investments declined by ¥2.9 billion.
Depreciation and amortization increased by ¥9.9 billion. Oil and gas producing operations recorded an increase of ¥10.3 billion.
Profit for the period attributable to owners of the parent declined by ¥8.0 billion. In addition to the above, exploration expenses of ¥4.0 billion in total and ¥6.0 billion in total were recorded for the current period and the previous period, respectively.
Lifestyle Segment
(Billions of Yen) | Current Period | Previous Period | Change | ||||||
EBITDA | 2.8 | 3.4 | (0.6) | ||||||
Gross profit | 26.3 | 27.9 | (1.6) | ||||||
Selling, general and administrative expenses | (35.3) | (31.5) | (3.8) | ||||||
Dividend Income | 2.5 | 2.5 | 0.0 | ||||||
Profit of equity method investments | 6.2 | 1.8 | +4.4 | ||||||
Depreciation and amortization | 3.1 | 2.7 | +0.4 | ||||||
Profit for the period attributable to owners of the parent | 0.2 | (1.1) | +1.3 |
EBITDA declined by ¥0.6 billion, mainly due to the following factors:
Gross profit declined by ¥1.6 billion.
- The Food Resources Business Unit reported a decline of ¥0.4 billion.
- The Food Products & Services Business Unit recorded a decline of ¥0.8 billion
- The Consumer Service Business Unit reported a decline of ¥0.4 billion.
Selling, general and administrative expenses increased by ¥3.8 billion due to increases in Multigrain Trading AG and new subsidiaries.
Profit of equity method investments increased by ¥4.4 billion.
- The Food Resources Business Unit reported the same amount as the previous period.
- The Food Products & Services Business Unit reported a decline of ¥0.1 billion.
- The Consumer Service Business Unit reported an increase of ¥4.6 billion. Arch Pharmalabs Limited, a pharmaceutical contract manufacturer in India, posted a ¥4.2 billion impairment loss on fixed assets and other assets for the previous period.
Profit for the period attributable to owners of the parent increased by ¥1.3 billion.
Innovation & Corporate Development Segment
(Billions of Yen) | Current Period | Previous Period | Change | ||||||
EBITDA | 0.9 | (11.9) | +12.8 | ||||||
Gross profit | 9.5 | (2.5) | +12.0 | ||||||
Selling, general and administrative expenses | (15.4) | (15.5) | +0.1 | ||||||
Dividend Income | 4.3 | 0.5 | +3.8 | ||||||
Profit of equity method investments | 1.2 | 4.2 | (3.0) | ||||||
Depreciation and amortization | 1.3 | 1.3 | 0.0 | ||||||
Loss for the period attributable to owners of the parent | (0.9) | (1.7) | +0.8 |
EBITDA increased by ¥12.8 billion, mainly due to the following factors:
Gross profit increased by ¥12.0 billion. There was an increase in gross profit corresponding to a ¥9.8 billion deterioration of foreign exchange gains and losses related to the commodity derivatives trading business at Mitsui posted in other expense for the current period and for the previous period.
Dividend income increased by ¥3.8 billion. Dividends from preferred shares in JA Mitsui Leasing Ltd. increased by ¥4.0 billion.
Profit of equity method investments declined by ¥3.0 billion due to a decline in profit of JA Mitsui Leasing Ltd.
Loss for the period attributable to owners of the parent improved by ¥0.8 billion. In addition to the above-mentioned factors, for the current period and for the previous period, foreign exchange losses of ¥0.9 billion and gains of ¥8.9 billion, respectively, were posted in other expense in relation to the commodity derivatives trading business at Mitsui.
Americas Segment
(Billions of Yen) | Current Period | Previous Period | Change | ||||||
EBITDA | 7.5 | 7.8 | (0.3) | ||||||
Gross profit | 18.4 | 19.4 | (1.0) | ||||||
Selling, general and administrative expenses | (15.2) | (15.3) | + 0.1 | ||||||
Dividend Income | 0.0 | 0.0 | 0.0 | ||||||
Profit of equity method investments | 2.3 | 1.7 | +0.6 | ||||||
Depreciation and amortization | 2.1 | 1.9 | +0.2 | ||||||
Profit for the period attributable to owners of the parent | 5.8 | 5.0 | +0.8 |
EBITDA declined by ¥0.3 billion, mainly due to the following factors:
Gross profit declined by ¥1.0 billion.
Profit of equity method investments increased by ¥0.6 billion.
Profit for the period attributable to owners of the parent increased by ¥0.8 billion.
Europe, the Middle East and Africa Segment
(Billions of Yen) | Current Period | Previous Period | Change | ||||||
EBITDA | (0.2) | (0.3) | +0.1 | ||||||
Gross profit | 4.3 | 4.3 | 0.0 | ||||||
Selling, general and administrative expenses | (5.0) | (4.9) | (0.1) | ||||||
Dividend Income | 0.0 | 0.0 | 0.0 | ||||||
Profit of equity method investments | 0.4 | 0.1 | +0.3 | ||||||
Depreciation and amortization | 0.1 | 0.2 | (0.1) | ||||||
Profit for the period attributable to owners of the parent | 1.1 | 0.4 | +0.7 |
EBITDA increased by ¥0.1 billion, mainly due to the following factors:
Gross profit was the same as the previous period.
Profit of equity method investments increased by ¥0.3 billion.
Profit for the period attributable to owners of the parent increased by ¥0.7 billion.
Asia Pacific Segment
(Billions of Yen) | Current Period | Previous Period | Change | ||||||
EBITDA | 0.5 | 0.7 | (0.2) | ||||||
Gross profit | 2.9 | 3.5 | (0.6) | ||||||
Selling, general and administrative expenses | (4.6) | (4.5) | (0.1) | ||||||
Dividend Income | 0.4 | 0.6 | (0.2) | ||||||
Profit of equity method investments | 1.7 | 1.0 | +0.7 | ||||||
Depreciation and amortization | 0.2 | 0.1 | +0.1 | ||||||
Profit for the period attributable to owners of the parent | 10.3 | 10.7 | (0.4) |
EBITDA declined by ¥0.2 billion, mainly due to the following factors:
Gross profit declined by ¥0.6 billion.
Profit of equity method investments increased by ¥0.7 billion.
Profit for the period attributable to owners of the parent declined by ¥0.4 billion. In addition to the above, this segment recorded profit from the segment’s minority interest in iron ore mining and coal mining operations in Australia.
(3) Financial Condition and Cash Flows
1) Financial Condition
Total assets as of June 30, 2014 were ¥11,582.2 billion, an increase of ¥90.9 billion from ¥11,491.3 billion as of March 31, 2014.
Total current assets as of June 30, 2014 were ¥4,496.3 billion, an increase of ¥30.9 billion from ¥4,465.4 billion as of March 31, 2014. Inventories increased by ¥51.3 billion, mainly due to a seasonal increase at Multigrain Trading AG. As of June 30, 2014, assets of ¥122.1 billion and liabilities of ¥61.8 billion were transferred to the assets held for sale and liabilities directly associated with assets held for sale accounts, respectively, due to the planned merger of domestic construction steel and metal scrap businesses of Mitsui & Co., Steel Ltd. with Metal One Structural Steel & Resource Corporation.
Total current liabilities as of June 30, 2014 were ¥2,945.5 billion, a decline of ¥39.2 billion from ¥2,984.7 billion as of March 31, 2014. Current portion of long-term debt declined by ¥51.7 billion due to repayment, while short-term debt increased by ¥31.7 billion.
As a result, working capital, or current assets less current liabilities, as of June 30, 2014, totaled ¥1,550.8 billion, an increase of ¥70.1 billion from ¥1,480.7 billion as of March 31, 2014.
Total non-current assets as of June 30, 2014 totaled ¥7,085.9 billion, an increase of ¥60.0 billion from ¥7,025.9 billion as of March 31, 2014, mainly due to the following factors:
- Investments accounted for using the equity method as of June 30, 2014 was ¥2,520.2 billion, an increase of ¥71.4 billion from ¥2,448.8 billion as of March 31, 2014. A major factor was an increase of ¥70.1 billion due to an acquisition of a 20% stake in VLI S.A., which is engaged in integrated freight transportation in Brazil.
Furthermore, factors that do not involve cash flow included a decline of ¥19.3 billion resulting from foreign currency exchange fluctuations despite a net increase of ¥4.6 billion corresponding to the profit of equity method (net of ¥59.7 billion in dividends received from equity accounted companies).
- Other investments as of June 30, 2014 were ¥1,558.1 billion, an increase of ¥3.4 billion from ¥1,554.7 billion as of March 31, 2014, mainly due to the following factors:
- A ¥25.1 billion net increase due to valuation on financial assets measured at FVTOCI; and
- A ¥10.8 billion net decline due to foreign currency exchange fluctuations.
- Property, plant and equipment as of June 30, 2014 totaled ¥2,023.8 billion, an increase of ¥16.3 billion from ¥2,007.5 billion as of March 31, 2014, mainly due to an increase of ¥9.9 billion (including a foreign exchange translation gain of ¥1.3 billion) at iron ore mining operations in Australia.
Total non-current liabilities as of June 30, 2014 totaled ¥4,472.0 billion, an increase of ¥65.6 billion from ¥4,406.4 billion as of March 31, 2014. Long-term debt, less current portion as of June 30, 2014 was ¥3,550.2 billion, an increase of ¥81.9 billion from ¥3,468.3 billion as of March 31, 2014, mainly due to an increase in long-term borrowings at the Marcellus and Eagle Ford shale gas and oil producing operations in the United States.
Total equity attributable to owners of the parent as of June 30, 2014 was ¥3,878.6 billion, an increase of ¥62.8 billion from ¥3,815.8 billion as of March 31, 2014. Major components included:
- Treasury stock declined by ¥50.1 billion, due to a cancellation;
- Retained earnings increased by ¥15.4 billion which was partially offset by a payment of dividend and a cancellation of treasury stock; and
- Other components of equity as of June 30, 2014 declined by ¥2.7 billion to ¥763.9 billion from ¥766.6 billion as of March 31, 2014, mainly due to the following factors:
- Foreign currency translation adjustments declined by ¥12.9 billion, reflecting the depreciation of the U.S. dollar against the Japanese yen; and
- Financial assets measured at FVTOCI increased by ¥14.8 billion reflecting the higher stock prices.
Net interest-bearing debt, or interest-bearing debt less cash and cash equivalents and time deposits as of June 30, 2014 was ¥3,230.7 billion, an increase of ¥51.9 billion from ¥3,178.8 billion as of March 31, 2014. The net debt-to-equity ratio (DER) as of June 30, 2014 was 0.83 times, the same level as March 31, 2014.
2) Cash Flows
Cash Flows from Operating Activities
(Billions of Yen) | Current Period | Previous Period | Change | ||||||
Cash flows from operating activities | a | 130.1 | 82.8 | +47.3 | |||||
Cash flows from change in working capital | b | (71.1) | (103.8) | +32.7 | |||||
Core operating cash flow | a-b | 201.2 | 186.6 | +14.6 |
Net cash provided by operating activities for the current period was ¥130.1 billion, an increase of ¥47.3 billion from ¥82.8 billion for the previous period.
Net cash outflow from an increase in working capital, or changes in operating assets and liabilities for the current period was ¥71.1 billion, a decline of ¥32.7 billion from ¥103.8 billion for the previous period.
Core operating cash flow, cash flows from operating activities without the net cash outflow from an increase in working capital, for the current period amounted ¥201.2 billion, an increase of ¥14.6 billion from ¥186.6 billion for the previous period.
- Depreciation and amortization for the current period was ¥67.7 billion, an increase of ¥15.0 billion from ¥52.7 billion for the previous period.
- Net cash inflow from dividend income, including dividends received from equity accounted investees, for the current period totaled ¥98.2 billion, a decline of ¥2.2 billion from ¥100.4 billion for the previous period.
The following table shows core operating cash flow by operating segment.
(Billions of Yen) | Current Period | Previous Period | Change | ||||
Iron & Steel Products | 1.9 | 3.0 | (1.1) | ||||
Mineral & Metal Resources | 51.4 | 46.2 | +5.2 | ||||
Machinery & Infrastructure | 14.4 | 8.2 | +6.2 | ||||
Chemicals | 7.1 | 10.8 | (3.7) | ||||
Energy | 97.9 | 100.1 | (2.2) | ||||
Lifestyle | (0.1) | 3.6 | (3.7) | ||||
Innovation & Corporate Development | 2.5 | (0.5) | +3.0 | ||||
Americas | 7.3 | 4.2 | +3.1 | ||||
Europe, the Middle East and Africa | 0.2 | (3.0) | +3.2 | ||||
Asia Pacific | 2.3 | 1.2 | +1.1 | ||||
All Other and Adjustments and Eliminations | 16.3 | 12.8 | +3.5 | ||||
Consolidated Total | 201.2 | 186.6 | +14.6 |
Cash Flows from Investing Activities
Net cash used in investing activities for the current period was ¥151.4 billion, a decline of ¥21.1 billion from ¥172.5 billion for the previous period. The net cash used in investing activities consisted of:
- Net cash outflows that corresponded to investments in and advances to equity accounted investees (net of sales of investments and collection of advances) were ¥64.3 billion. The major cash outflow was an acquisition of a 20% stake in VLI S.A. for ¥70.1 billion. The major cash inflow was redemption of preferred shares in Valepar S.A. for ¥10.0 billion.
- Net cash outflows that corresponded to other investments (net of sales and maturities of other investments) were ¥5.4 billion.
- Net cash inflows that corresponded to long-term loan receivables (net of collection) were ¥12.7 billion.
- Net outflows that corresponded to purchases of property, plant, equipment and investment property (net of sales of those assets) were ¥79.4 billion. Major expenditures included:
- Oil and gas projects other than the U.S. shale gas and oil projects for a total of ¥30.8 billion;
- Iron ore mining projects in Australia for ¥20.9 billion; and
- Marcellus and Eagle Ford shale gas and oil projects in the United States for ¥16.7 billion.
The major cash inflows included the sale of an ammonia plant by P.T. Kaltim Pasifik Amoniak for ¥9.9 billion.
Free cash flow, or the sum of net cash provided by operating activities and net cash used in investing activities, for the current period was a net outflow of ¥21.3 billion.
Cash Flows from Financing Activities
For the current period, net cash provided by financing activities was ¥20.8 billion, an increase of ¥6.5 billion from ¥14.3 billion for the previous period. The net cash inflow from the borrowing of long-term debt was ¥51.7 billion and short-term debt was ¥36.2 billion. Meanwhile, the cash outflow from payments of cash dividends were ¥61.0 billion.
In addition to the changes discussed above, there was a decline in cash and cash equivalents of ¥5.1 billion due to foreign exchange translation and a decline of ¥0.4 billion due to the reclassification to assets held for sale; as a result, cash and cash equivalents as of June 30, 2014 totaled ¥1,221.3 billion, a decline of ¥4.2 billion from ¥1,226.3 billion as of March 31, 2014.
(4) Information Concerning Profit Forecast for the Year Ending March 31, 2015
We maintain our profit forecast for the year ending March 31, 2015 attributable to owners of the parent of ¥380.0 billion announced together with the results of the year ended March 31, 2014. No updates have been made to this forecast.
2. Other Information
Notice:
This flash report contains forward-looking statements about Mitsui and its consolidated subsidiaries. These forward-looking statements are based on Mitsui’s current assumptions, expectations and beliefs in light of the information currently possessed by it and involve known and unknown risks, uncertainties and other factors. Such risks, uncertainties and other factors may cause Mitsui’s actual consolidated financial position, consolidated operating results or consolidated cash flows to be materially different from any future consolidated financial position, consolidated operating results or consolidated cash flows expressed or implied by these forward-looking statements.
These risks, uncertainties and other factors include, among others, (1) economic downturns worldwide or at specific regions, (2) fluctuations in commodity prices, (3) fluctuations in exchange rates, (4) credit risks from clients with which Mitsui and its consolidated subsidiaries have business transactions or financial dealings and/or from various projects, (5) declines in the values of non-current assets, (6) changes in the financing environment, (7) declines in market value of equity and/or debt securities, (8) changes in the assessment for recoverability of deferred tax assets, (9) inability to successfully restructure or eliminate subsidiaries or associated companies as planned, (10) unsuccessful joint ventures and strategic investments, (11) risks of resource related businesses not developing in line with assumed costs and schedules and uncertainty in reserves and performance of third party operators, (12) loss of opportunities to enter new business areas due to limitations on business resources, (13) environmental laws and regulations, (14) changes in laws and regulations or unilateral changes in contractual terms by governmental entities, (15) employee misconduct, (16) failure to maintain adequate internal control over financial reporting, and (17) climate change and natural disaster. For further information on the above, please refer to Mitsui’s Annual Securities Report.
Forward-looking statements may be included in Mitsui’s Annual Securities Report and Quarterly Securities Reports or in its other disclosure documents, press releases or website disclosures. Mitsui undertakes no obligation to publicly update or revise any forward-looking statements.
3. Condensed Consolidated Financial Statements | |||||||||||||||||||||||
(1) Condensed Consolidated Statements of Financial Position | |||||||||||||||||||||||
(Millions of Yen) | |||||||||||||||||||||||
Assets | |||||||||||||||||||||||
March 31,
2014 |
June 30,
2014 |
||||||||||||||||||||||
Current Assets: | |||||||||||||||||||||||
Cash and cash equivalents | ¥ 1,226,317 | ¥ 1,221,257 | |||||||||||||||||||||
Trade and other receivables | 2,040,855 | 1,922,816 | |||||||||||||||||||||
Other financial assets | 271,288 | 240,027 | |||||||||||||||||||||
Inventories | 625,328 | 676,618 | |||||||||||||||||||||
Advance payments to suppliers | 183,576 | 174,777 | |||||||||||||||||||||
Assets held for sale | - | 122,143 | |||||||||||||||||||||
Other current assets | 118,049 | 138,695 | |||||||||||||||||||||
Total current assets | 4,465,413 | 4,496,333 | |||||||||||||||||||||
Non-current Assets: | |||||||||||||||||||||||
Investments accounted for using the equity method | 2,448,848 | 2,520,162 | |||||||||||||||||||||
Other investments | 1,554,673 | 1,558,135 | |||||||||||||||||||||
Trade and other receivables | 470,880 | 440,076 | |||||||||||||||||||||
Other financial assets | 116,298 | 114,170 | |||||||||||||||||||||
Property, plant and equipment | 2,007,452 | 2,023,823 | |||||||||||||||||||||
Investment property | 139,334 | 144,255 | |||||||||||||||||||||
Intangible assets | 144,153 | 141,067 | |||||||||||||||||||||
Deferred tax assets | 74,419 | 74,084 | |||||||||||||||||||||
Other non-current assets | 69,849 | 70,126 | |||||||||||||||||||||
Total non-current assets | 7,025,906 | 7,085,898 | |||||||||||||||||||||
Total | ¥ 11,491,319 | ¥ 11,582,231 |
(Millions of Yen) | |||||||||||||||||||||||
Liabilities and Equity | |||||||||||||||||||||||
March 31,
2014 |
June 30,
2014 |
||||||||||||||||||||||
Current Liabilities: | |||||||||||||||||||||||
Short-term debt | ¥ 436,869 | ¥ 468,616 | |||||||||||||||||||||
Current portion of long-term debt | 505,946 | 454,221 | |||||||||||||||||||||
Trade and other payables | 1,473,834 | 1,387,449 | |||||||||||||||||||||
Other financial liabilities | 301,047 | 293,701 | |||||||||||||||||||||
Income tax payables | 42,857 | 42,603 | |||||||||||||||||||||
Advances from customers | 165,124 | 172,659 | |||||||||||||||||||||
Provisions | 17,491 | 23,976 | |||||||||||||||||||||
Liabilities directly associated with assets held for sale | - | 61,815 | |||||||||||||||||||||
Other current liabilities | 41,486 | 40,487 | |||||||||||||||||||||
Total current liabilities | 2,984,654 | 2,945,527 | |||||||||||||||||||||
Non-current Liabilities: | |||||||||||||||||||||||
Long-term debt, less current portion | 3,468,301 | 3,550,163 | |||||||||||||||||||||
Other financial liabilities | 95,541 | 92,807 | |||||||||||||||||||||
Retirement benefit liabilities | 69,558 | 68,858 | |||||||||||||||||||||
Provisions | 174,855 | 176,938 | |||||||||||||||||||||
Deferred tax liabilities | 567,281 | 564,603 | |||||||||||||||||||||
Other non-current liabilities | 30,825 | 18,604 | |||||||||||||||||||||
Total non-current liabilities | 4,406,361 | 4,471,973 | |||||||||||||||||||||
Total liabilities | 7,391,015 | 7,417,500 | |||||||||||||||||||||
Equity: | |||||||||||||||||||||||
Common stock | 341,482 | 341,482 | |||||||||||||||||||||
Capital surplus | 418,004 | 415,023 | |||||||||||||||||||||
Retained earnings | 2,345,790 | 2,364,066 | |||||||||||||||||||||
Other components of equity | 766,631 | 763,937 | |||||||||||||||||||||
Treasury stock | -56,140 | -5,952 | |||||||||||||||||||||
Total equity attributable to owners of the parent | 3,815,767 | 3,878,556 | |||||||||||||||||||||
Non-controlling interests | 284,537 | 286,175 | |||||||||||||||||||||
Total equity | 4,100,304 | 4,164,731 | |||||||||||||||||||||
Total | ¥ 11,491,319 | ¥ 11,582,231 |
(2) Condensed Consolidated Statements of Income and Comprehensive Income | |||||||||||||||||||||
Condensed Consolidated Statements of Income | |||||||||||||||||||||
(Millions of Yen) | |||||||||||||||||||||
Three-month period ended
June 30, 2013 |
Three-month period ended
June 30, 2014 |
||||||||||||||||||||
Revenue: | |||||||||||||||||||||
Sale of products | ¥ 1,285,483 | ¥ 1,237,992 | |||||||||||||||||||
Rendering of services | 100,668 | 100,715 | |||||||||||||||||||
Other revenue | 21,142 | 31,819 | |||||||||||||||||||
Total revenue | 1,407,293 | 1,370,526 | |||||||||||||||||||
Cost: | |||||||||||||||||||||
Cost of products sold | -1,142,202 | -1,100,672 | |||||||||||||||||||
Cost of services rendered | -38,538 | -44,531 | |||||||||||||||||||
Cost of other revenue | -15,224 | -14,934 | |||||||||||||||||||
Total cost | -1,195,964 | -1,160,137 | |||||||||||||||||||
Gross Profit | 211,329 | 210,389 | |||||||||||||||||||
Other Income (Expenses): | |||||||||||||||||||||
Selling, general and administrative expenses | -140,781 | -139,248 | |||||||||||||||||||
Gain (loss) on securities and other investments—net | 11,407 | 1,157 | |||||||||||||||||||
Impairment loss of fixed assets | -78 | -11 | |||||||||||||||||||
Gain (loss) on disposal or sales of fixed assets—net | 54 | 475 | |||||||||||||||||||
Other income (expense)—net | -291 | -1,588 | |||||||||||||||||||
Total other income (expenses) | -129,689 | -139,215 | |||||||||||||||||||
Finance Income (Costs): | Loss on write-down of securities | ||||||||||||||||||||
Interest income | 5,380 | 8,357 | |||||||||||||||||||
Dividend income | 49,774 | 40,989 | |||||||||||||||||||
Interest expense | -12,191 | -11,706 | |||||||||||||||||||
Total finance income (costs) | 42,963 | 37,640 | |||||||||||||||||||
Share of Profit of Investments Accounted for Using the Equity Method | 67,109 | 64,320 | |||||||||||||||||||
Profit before Income Taxes | 191,712 | 173,134 | |||||||||||||||||||
Income Taxes | -52,448 | -39,604 | |||||||||||||||||||
Profit for the Period | ¥ 139,264 | ¥ 133,530 | |||||||||||||||||||
Profit for the Period Attributable to: | |||||||||||||||||||||
Owners of the parent | ¥ 132,968 | ¥ 127,806 | |||||||||||||||||||
Non-controlling interests | 6,296 | 5,724 | |||||||||||||||||||
Condensed Consolidated Statements of Comprehensive Income | |||||||||||||||||||||
(Millions of Yen) | |||||||||||||||||||||
Three-month period ended
June 30, 2013 |
Three-month period ended
June 30, 2014 |
||||||||||||||||||||
Profit for the Period | ¥ 139,264 | ¥ 133,530 | |||||||||||||||||||
Other Comprehensive Income: | |||||||||||||||||||||
Items that will not be reclassified to profit or loss: | |||||||||||||||||||||
Financial assets measured at FVTOCI | -371 | 23,564 | |||||||||||||||||||
Remeasurements of defined benefit pension plans | 631 | -1,561 | |||||||||||||||||||
Share of other comprehensive income of investments accounted for using the equity method | -464 | 2,008 | |||||||||||||||||||
Income tax relating to items not reclassified | 3,887 | -6,003 | |||||||||||||||||||
Items that may be reclassified subsequently to profit or loss: | |||||||||||||||||||||
Foreign currency translation adjustments | -28,684 | -2,846 | |||||||||||||||||||
Cash flow hedges | -2,554 | -2,684 | |||||||||||||||||||
Share of other comprehensive income of investments accounted for using the equity method | 10,944 | -18,754 | |||||||||||||||||||
Income tax relating to items that may be reclassified | 9,032 | 2,000 | |||||||||||||||||||
Total other comprehensive income | -7,579 | -4,276 | |||||||||||||||||||
Comprehensive Income for the Period | ¥ 131,685 | ¥ 129,254 | |||||||||||||||||||
Comprehensive Income for the Period Attributable to: | |||||||||||||||||||||
Owners of the parent | ¥ 126,407 | ¥ 125,804 | |||||||||||||||||||
Non-controlling interests | 5,278 | 3,450 |
Notes: | 1.The Statements of Consolidated Income above are not reviewed by the auditors. | ||
2.The Statements of Consolidated Income above have been adjusted due to the adoption of ASC 810-10-65. | |||
3."Net Income attributable to Noncontrolling Interests" and "Comprehensive Loss (Income) attributable to | |||
Noncontrolling Interests" show the amounts deducted to calculate "Net Income attributable to Mitsui & Co., | |||
Ltd." and "Comprehensive (Loss) Income attributable to Mitsui & Co., Ltd.", respectively. | |||
4.Tax effects on investments in associated companies which were formerly included in "Equity in Earnings of | |||
Associated Companies - Net (After Income Tax Effect)" are included in "Income Taxes" for the three-month | |||
period ended December 31, 2009. At the same time, "Equity in Earnings of Associated Companies - Net (After | |||
Income Tax Effect)" are changed to "Equity in Earnings of Associated Companies - Net." Amounts for three- | |||
month period ended December 31, 2008 have been reclassified to conform to the current period presentation. |
(3) Condensed Consolidated Statements of Changes in Equity | |||||||||||||||||||
(Millions of Yen) | |||||||||||||||||||
Attributable to owners of the parent | Non-controlling Interests |
Total
Equity |
|||||||||||||||||
Common Stock | Capital Surplus | Retained Earnings | Other Components of Equity | Treasury Stock | Total | ||||||||||||||
Balance as at April 1, 2013 | ¥ 341,482 | ¥ 428,552 | ¥2,060,298 | ¥ 614,783 | ¥ (5,974) | ¥3,439,141 | ¥ 245,848 | ¥ 3,684,989 | |||||||||||
Profit for the period | 132,968 | 132,968 | 6,296 | 139,264 | |||||||||||||||
Other comprehensive income for the period | (6,561) | (6,561) | (1,018) | (7,579) | |||||||||||||||
Comprehensive income for the period | 126,407 | 5,278 | 131,685 | ||||||||||||||||
Transaction with owners: | |||||||||||||||||||
Dividends paid to the owners of the parent
(per share: ¥21) |
(38,327) | (38,327) | (38,327) | ||||||||||||||||
Dividends paid to non-controlling interest shareholders | (7,302) | (7,302) | |||||||||||||||||
Acquisition of treasury stock | (4) | (4) | (4) | ||||||||||||||||
Sales of treasury stock | (0) | 0 | 0 | 0 | |||||||||||||||
Equity transactions with non-controlling interest shareholders | (475) | 3 | (472) | 6,189 | 5,717 | ||||||||||||||
Transfer to retained earnings | 6,367 | (6,367) | - | - | |||||||||||||||
Balance as at June 30, 2013 | ¥ 341,482 | ¥ 428,077 | ¥2,161,306 | ¥ 601,858 | ¥ (5,978) | ¥3,526,745 | ¥ 250,013 | ¥ 3,776,758 | |||||||||||
(Millions of Yen) | |||||||||||||||||||
Attributable to owners of the parent | Non-controlling Interests |
Total
Equity |
|||||||||||||||||
Common Stock | Capital Surplus | Retained Earnings | Other Components of Equity | Treasury Stock | Total | ||||||||||||||
Balance as at April 1, 2014 | ¥ 341,482 | ¥ 418,004 | ¥2,345,790 | ¥ 766,631 | ¥ (56,140) | ¥3,815,767 | ¥ 284,537 | ¥ 4,100,304 | |||||||||||
Profit for the period | 127,806 | 127,806 | 5,724 | 133,530 | |||||||||||||||
Other comprehensive income for the period | (2,002) | (2,002) | (2,274) | (4,276) | |||||||||||||||
Comprehensive income for the period | 125,804 | 3,450 | 129,254 | ||||||||||||||||
Transaction with owners: | |||||||||||||||||||
Dividends paid to the owners of the parent
(per share: ¥34) |
(60,946) | (60,946) | (60,946) | ||||||||||||||||
Dividends paid to non-controlling interest shareholders | (4,437) | (4,437) | |||||||||||||||||
Acquisition of treasury stock | (3) | (3) | (3) | ||||||||||||||||
Sales of treasury stock | 0 | 0 | 0 | 0 | |||||||||||||||
Cancellation of treasury stock | (50,191) | 50,191 | - | - | |||||||||||||||
Equity transactions with non-controlling interest shareholders | (2,981) | 915 | (2,066) | 2,625 | 559 | ||||||||||||||
Transfer to retained earnings | 1,607 | (1,607) | - | - | |||||||||||||||
Balance as at June 30, 2014 | ¥ 341,482 | ¥ 415,023 | ¥2,364,066 | ¥ 763,937 | ¥ (5,952) | ¥3,878,556 | ¥ 286,175 | ¥ 4,164,731 |
(4) Condensed Consolidated Statements of Cash Flows | |||||||||||||||
(Millions of Yen) | |||||||||||||||
Three-month period ended
June 30, 2013 |
Three-month period ended
June 30, 2014 |
||||||||||||||
Operating Activities: | |||||||||||||||
Profit for the Period | ¥ 139,264 | ¥ 133,530 | |||||||||||||
Adjustments to reconcile profit for the period to cash flows from operating activities: | |||||||||||||||
Depreciation and amortization | 52,716 | 67,717 | |||||||||||||
Change in retirement benefit liabilities | 1,144 | -2,082 | |||||||||||||
Provision for doubtful receivables | 2,795 | 2,957 | |||||||||||||
(Gain)/loss on securities and other investments—net | -11,407 | -1,157 | |||||||||||||
Impairment loss of fixed assets | 78 | 11 | |||||||||||||
(Gain)/loss on disposal or sales of fixed assets—net | -54 | -475 | |||||||||||||
Finance (income)/costs – net | -41,123 | -35,846 | |||||||||||||
Income taxes | 52,448 | 39,604 | |||||||||||||
Share of profit of investments accounted for using equity method | -67,109 | -64,320 | |||||||||||||
Changes in operating assets and liabilities: | |||||||||||||||
Change in trade and other receivables | 203 | 2,434 | |||||||||||||
Change in inventories | -48,697 | -58,757 | |||||||||||||
Change in trade and other payables | -58,254 | -4,272 | |||||||||||||
Other—net | 2,958 | -10,457 | |||||||||||||
Interest received | 7,172 | 9,337 | |||||||||||||
Interest paid | -15,202 | -11,993 | |||||||||||||
Dividends received | 100,402 | 98,157 | |||||||||||||
Income taxes paid | -34,584 | -34,266 | |||||||||||||
Cash flows from operating activities | 82,750 | 130,122 | |||||||||||||
Investing Activities: | |||||||||||||||
Net change in time deposits | (Increase) (increase) in trade receivables | Decrease (increase) in trade receivables | 794 | -14,979 | |||||||||||
Net change in investments in and advances to equity accounted investees | (Increase) (increase) in trade receivables | (Increase) in trade receivables | -7,092 | -64,323 | |||||||||||
Net change in other investments | (Increase) (increase) in trade receivables | (Increase) in trade receivables | -84,191 | -5,380 | |||||||||||
Net change in long-term loan receivables | (Increase) (increase) in trade receivables | Decrease in trade receivables | 4,261 | 12,682 | |||||||||||
Net change in property, plant, equipment and investment property | (Increase) (increase) in trade receivables | (Increase) in trade receivables | -86,316 | -79,376 | |||||||||||
Cash flows from investing activities | -172,544 | -151,376 | |||||||||||||
Financing Activities: | |||||||||||||||
Net change in short-term debt | (Increase) (increase) in trade receivables | Decrease in trade receivables | 109,731 | 36,202 | |||||||||||
Net change in long-term debt | (Increase) (increase) in trade receivables | (Increase) decrease in trade receivables | -55,073 | 51,668 | |||||||||||
Purchases and sales of treasury stock | -4 | -3 | |||||||||||||
Dividends paid | (Increase) (increase) in trade receivables | (Increase) in trade receivables | -38,334 | -60,955 | |||||||||||
Transactions with non-controlling interest shareholders | -1,991 | -6,082 | |||||||||||||
Cash flows from financing activities | 14,329 | 20,830 | |||||||||||||
Effect of Exchange Rate Changes on Cash and Cash Equivalents | -739 | -4,210 | |||||||||||||
Cash and Cash Equivalents Included in Assets Held for Sale | - | -426 | |||||||||||||
Change in Cash and Cash Equivalents | -76,204 | -5,060 | |||||||||||||
Cash and Cash Equivalents at Beginning of Year | 1,432,534 | 1,226,317 | |||||||||||||
Cash and Cash Equivalents at End of Period | ¥ 1,356,330 | ¥ 1,221,257 | |||||||||||||
(5) Assumption for Going Concern: None |
(6) Segment Information | ||||||||||||||||||||
Three-month period ended June 30, 2013 (from April 1, 2013 to June 30, 2013) | ||||||||||||||||||||
(Millions of Yen) | ||||||||||||||||||||
Iron & Steel Products | Mineral & Metal Resources | Machinery & Infrastructure | Chemicals | Energy | Lifestyle | Innovation & Corporate Development | ||||||||||||||
Revenue | 58,311 | 185,072 | 93,726 | 222,786 | 381,343 | 220,223 | 14,476 | |||||||||||||
Gross Profit (Loss) | 14,429 | 49,751 | 27,702 | 20,310 | 50,165 | 27,899 | -2,467 | |||||||||||||
Share of Profit of Investments Accounted for Using the Equity Method | 1,434 | 26,598 | 11,906 | 1,516 | 16,560 | 1,777 | 4,244 | |||||||||||||
Profit (Loss) for the Period Attributable to Owners of the parent | 3,025 | 39,609 | 9,799 | 3,903 | 64,655 | -1,097 | -1,727 | |||||||||||||
EBITDA | 7,265 | 76,129 | 13,976 | 7,918 | 121,109 | 3,385 | -11,908 | |||||||||||||
Total Assets at March 31, 2014 | 567,741 | 1,970,858 | 1,872,585 | 765,751 | 2,478,158 | 1,495,387 | 496,533 | |||||||||||||
Americas |
Europe,
the Middle East and Africa |
Asia Pacific | Total | All Other |
Adjustments
and Eliminations |
Consolidated Total | ||||||||||||||
Revenue | 176,361 | 28,057 | 26,462 | 1,406,817 | 480 | -4 | 1,407,293 | |||||||||||||
Gross Profit (Loss) | 19,435 | 4,324 | 3,464 | 215,012 | 254 | -3,937 | 211,329 | |||||||||||||
Share of Profit of Investments Accounted for Using the Equity Method | 1,720 | 85 | 1,025 | 66,865 | 267 | -23 | 67,109 | |||||||||||||
Profit (Loss) for the Period Attributable to Owners of the parent | 4,970 | 417 | 10,700 | 134,254 | 3,141 | -4,427 | 132,968 | |||||||||||||
EBITDA | 7,801 | -320 | 738 | 226,093 | 1,012 | 13,042 | 240,147 | |||||||||||||
Total Assets at March 31, 2014 | 568,772 | 105,907 | 345,074 | 10,666,766 | 5,037,172 | -4,212,619 | 11,491,319 | |||||||||||||
Three-month period ended June 30, 2014 (from April 1, 2014 to June 30, 2014) | ||||||||||||||||||||
(Millions of Yen) | ||||||||||||||||||||
Iron & Steel Products | Mineral & Metal Resources | Machinery & Infrastructure | Chemicals | Energy | Lifestyle | Innovation & Corporate Development | ||||||||||||||
Revenue | 44,360 | 191,839 | 100,679 | 218,761 | 279,242 | 221,014 | 27,375 | |||||||||||||
Gross Profit | 10,125 | 45,046 | 27,413 | 18,495 | 52,927 | 26,271 | 9,485 | |||||||||||||
Share of Profit of Investments Accounted for Using the Equity Method | 526 | 21,919 | 14,993 | 1,536 | 13,730 | 6,247 | 1,178 | |||||||||||||
Profit (Loss) for the Period Attributable to Owners of the parent | 1,038 | 38,655 | 11,573 | 2,558 | 56,672 | 169 | -860 | |||||||||||||
EBITDA | 2,107 | 71,279 | 16,515 | 6,134 | 119,500 | 2,799 | 872 | |||||||||||||
Total Assets at June 30, 2014 | 555,246 | 1,938,510 | 1,910,185 | 758,725 | 2,397,388 | 1,547,231 | 485,398 | |||||||||||||
Americas |
Europe,
the Middle East and Africa |
Asia Pacific | Total | All Other |
Adjustments
and Eliminations |
Consolidated Total | ||||||||||||||
Revenue | 232,852 | 27,449 | 26,479 | 1,370,050 | 476 | - | 1,370,526 | |||||||||||||
Gross Profit | 18,357 | 4,343 | 2,875 | 215,337 | 224 | -5,172 | 210,389 | |||||||||||||
Share of Profit of Investments Accounted for Using the Equity Method | 2,269 | 436 | 1,684 | 64,518 | - | -198 | 64,320 | |||||||||||||
Profit (Loss) for the Period Attributable to Owners of the parent | 5,757 | 1,084 | 10,346 | 126,992 | 1,853 | -1,039 | 127,806 | |||||||||||||
EBITDA | 7,525 | -158 | 493 | 227,066 | -302 | 17,403 | 244,167 | |||||||||||||
Total Assets at June 30, 2014 | 601,357 | 99,753 | 350,980 | 10,644,773 | 4,956,954 | -4,019,496 | 11,582,231 |
Notes: | 1. “All Other” principally consisted of the Corporate Staff Unit which provides financing services and operations services to external | ||
customers and/or to the companies and affiliated companies. Total assets of “All Other” at March 31, 2014 and June 30, 2014 consisted | |||
primarily of cash and cash equivalents and time deposits related to financing activities, and assets of the Corporate Staff Unit and | |||
certain subsidiaries related to the above services. | |||
2. Transfers between repotable segments are made at cost plus a markup. | |||
3. Profit (Loss) for the Period Attributable to Owners of the parent of “Adjustments and Eliminations” includes income and expense items that are | |||
not allocated to specific reportable segments, and eliminations of intersegment transactions. | |||
4. During the three-month period ended June 30, 2014, EBITDA is disclosed by reportable segments as the information of the operating segments | |||
periodically reviewed by the management. EBITDA is comprised of the companies' (a) gross profit, (b) selling, general and administrative expenses, |
|||
(c) dividend income and (d) share of profit of investments accounted for using the equity method as presented in the Condensed Consolidated Statements | |||
of Income and (e) depreciation and amortization as presented in the Condensed Consolidated Statements of Cash Flows. |
For diagrams omitted, please see our home page. (https://www.mitsui.com/jp/en/ir/meeting/account/__icsFiles/afieldfile/2014/08/06/en_153_1q_ta_1.pdf)