Summary of Consolidated Financial Statements for the First Quarter Ended

March 31, 2023 [IFRS]

May 9, 2023

Company name: Lion Corporation

Listed stock exchanges: Tokyo Stock Exchange

Code: 4912

URL: http://www.lion.co.en/

Representative: Masayuki Takemori, Representative Director, President and Executive Officer

Contact: Akihiko Takeo, Executive Officer, Director of Finance Department

Telephone: +81-3-6739-3711

Scheduled date of filing of quarterly financial report: May 12, 2023

Supplementary materials prepared for quarterly results: Yes

Quarterly results information meeting held: Yes (for institutional investors, analysts, etc.)

Figures in this and subsequent tables are truncated at the nearest million.

1. Consolidated Results for the First Quarter Ended March 31, 2023 (January 1, 2023 - March 31, 2023)

(1) Consolidated Results (cumulative)

(Percentage figures denote year-on-year change)

Net sales

Operating profit

Profit before tax

Millions of yen

%

Millions of yen

%

Millions of yen

%

Three months ended

90,849

4.4

2,361

(77.5)

2,641

(76.1)

March 31, 2023

Three months ended

87,030

5.5

10,489

26.7

11,075

25.1

March 31, 2022

Profit for the period

Total comprehensive

Profit for the period

attributable to

income for the period

owners of the parent

Millions of yen

%

Millions of yen

%

Millions of yen

%

Three months ended

1,874

(76.7)

1,578

(80.0)

4,124

(65.9)

March 31, 2023

Three months ended

8,028

25.2

7,891

32.5

12,109

23.9

March 31, 2022

Note: Core operating income for the three months ended March 31, 2023 was ¥2,502 million (down 54.7% year on year). Core operating income for the three months ended March 31, 2022 was ¥5,521 million (down 31.8% year on year).

Core operating income is an earnings indicator the Company uses to measure regular business performance by subtracting selling, general and administrative expenses from gross profit.

Basic earnings per share

Diluted earnings per share

Yen

Yen

Three months ended

5.55

5.54

March 31, 2023

Three months ended

27.56

27.51

March 31, 2022

(2) Consolidated Financial Position

Equity

Ratio of equity

attributable to

attributable to

Total assets

Total equity

owners of the

owners of the

parent to total

parent

assets

Millions of yen

Millions of yen

Millions of yen

%

March 31, 2023

457,935

279,372

264,116

57.7

December 31, 2022

469,278

279,168

264,255

56.3

2. Dividends

Cash dividends per share

First

Second

Third

Year-End

Total

Quarter

Quarter

Quarter

Yen

Yen

Yen

Yen

Yen

Fiscal 2022

-

12.00

-

13.00

25.00

Fiscal 2023

-

Fiscal 2023

13.00

-

13.00

26.00

(forecast)

Note: Changes from the most recently published forecast of dividends: No

3. Forecast of Consolidated Financial Results for the Fiscal Year Ending December 31, 2023 (January 1, 2023 - December 31, 2023)

(Percentage figures denote year-on-year change)

Net sales

Operating profit

Profit for the period

Basic earnings per

attributable to owners of

share

the parent

Millions of yen

%

Millions of yen

%

Millions of yen

%

Yen

First half 2023

190,000

2.6

5,500

(61.5)

4,000

(63.8)

14.05

Fiscal 2023

410,000

5.2

25,000

(13.3)

17,500

(20.2)

61.45

Notes: 1. Core operating income forecast:

First half 2023:

¥5,500 million

Fiscal 2023:

¥25,000 million

2. Changes from the most recently published financial results forecast: No

Notes

  1. Significant Change in Scope of Consolidation during Period: No
  2. Changes in accounting principles, procedures and presentation methods in connection with the preparation of quarterly consolidated financial statements:
    1. Changes in accounting standards required under IFRS: No
    2. Other changes: No
    3. Changes in accounting estimates: No
  4. Number of outstanding shares (common stock)

a. Number of outstanding shares on balance sheet dates (including treasury stocks):

As of March 31, 2023:

292,536,446 shares

As of December 31, 2022:

292,536,446 shares

b. Number of treasury stocks on balance sheet date:

As of March 31, 2023:

8,275,965 shares

As of December 31, 2022:

8,304,250 shares

    1. Average number of shares outstanding over period
      Three months ended March 31, 2023: 284,241,602 shares
      Three months ended March 31, 2022: 286,364,333 shares
  • This report is not subject to review by a certified public accountant or external auditor.
  • Appropriate use of results forecasts; other special items

The forecasts and projected operating results contained in this report are based on information available at the time of preparation and thus involve inherent risks and uncertainties, including those related to economic conditions, the competitive environment and exchange rate fluctuations. Accordingly, readers are cautioned that actual results may differ materially from those projected as a result of a variety of factors. For information on forecasts of operating results, see I. Qualitative Information Concerning the Results of Operations for the First Quarter of the Current Fiscal Year (3) Forecast of Consolidated Financial Results on page 8.

Lion Corporation (Code 4912): Consolidated Financial Statements for the First Quarter Ended March 31, 2023

Contents

1. Qualitative Information Concerning the Results of Operations for the First Quarter of the Current

Fiscal Year -----------------------------------------------------------------------------------------------------------------------

2

(1)

Consolidated Performance -------------------------------------------------------------------------------------------

2

(2) Financial Status ---------------------------------------------------------------------------------------------------------

8

(3)

Forecast of Consolidated Financial Results ---------------------------------------------------------------------

8

2. Condensed Consolidated Financial Statements and Notes ----------------------------------------------------

9

(1)

Condensed Consolidated Statement of Financial Position -------------------------------------------------

9

(2)

Condensed Consolidated Statement of Income and Statement of Comprehensive Income

---- 11

(3)

Condensed Consolidated Statement of Changes in Equity ---------------------------------------------

13

(4)

Notes to Condensed Consolidated Financial Statements -----------------------------------------------

16

Notes relating to the assumption of a going concern ----------------------------------------------------------------------------

16

Segment Information ---------------------------------------------------------------------------------------------------------------------

16

Important Subsequent Events ---------------------------------------------------------------------------------------------------------

19

1

Lion Corporation (Code 4912): Consolidated Financial Statements for the First Quarter Ended March 31, 2023

1. Qualitative Information Concerning the Results of Operations for the First Quarter of the Current Fiscal Year

(1) Consolidated Performance

Consolidated results for the first quarter of fiscal 2023 (January 1, 2023-March 31, 2023) are as follows. Net sales amounted to ¥90,849 million, a year-on-year increase of 4.4% (or an increase of 1.5% at constant currency excluding exchange rate fluctuations). Core operating income came to ¥2,502 million, down 54.7% compared with the previous fiscal year, and operating profit to ¥2,361 million, down 77.5% year on year. Profit for the period attributable to owners of the parent totaled ¥1,578 million, down 80.0% compared with the previous fiscal year

The Lion Group is advancing initiatives based on three growth strategies under Vision2030 1st STAGE, its medium-term management plan for the three years beginning 2022. These three strategies are "Accelerate growth in four fields of value creation," "Transform our business foundations for growth" and "Generate dynamism to realize innovative change."

In its domestic operations, amid an increasingly challenging operating environment due to rising prices of food and other daily necessities and weak consumer sentiment, Lion introduced new high-value-added toothbrushes and laundry detergents while cultivating mainstay brands of toothpastes, eye drops and other products. In its overseas operations, in addition to efforts to expand its business in the personal care field, which includes oral care and beauty care products, the Group decided to newly enter the Vietnam market. Both in Japan and overseas, the Group continued to work to increase the efficiency of sales promotion efforts.

However, profits decreased due to increased raw material prices, one-off expenses incurred in connection with the head office relocation, and recoil from gain on transfer of land recorded in the first quarter of the previous fiscal year.

Consolidated Results

(Millions of yen)

Three months

Ratio to

Three months

Ratio to

Change

ended March 31,

ended March 31,

Change

net sales

net sales

(%)

2023

2022

Net sales

90,849

87,030

3,819

4.4%

Core operating income

2,502

2.8%

5,521

6.3%

(3,018)

(54.7%)

Operating profit

2,361

2.6%

10,489

12.1%

(8,127)

(77.5%)

Profit for the period

attributable to owners of

1,578

1.7%

7,891

9.1%

(6,313)

(80.0%)

the parent

Note: 1. Core operating income is an earnings indicator the Company uses to measure regular business performance by subtracting selling, general and administrative expenses from gross profit.

2

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Lion Corporation published this content on 09 May 2023 and is solely responsible for the information contained therein. Distributed by Public, unedited and unaltered, on 09 May 2023 06:19:14 UTC.