THE FURUKAWA BATTERY CO., LTD.
Translation
Member of Financial Accounting Standards Foundation (FASF) February 2, 2015
Name of Company: The Furukawa Battery Co., Ltd. Stock Code: 6937
Stock Exchange Listing: Tokyo Stock Exchange, First Section URL: http://www.furukawadenchi.co.jp Representative
Title: President & CEO Name: Katsutoshi Tokuyama Contact Person
Title: Director & Corporate Officer
Name: Shigeru Takaku
Tel: +81-(0)45 (336) 5034
Scheduled date of filing of quarterly securities report: February 13, 2015
Scheduled date of commencement of dividend payment: - Supplementary documents for quarterly financial results: None Quarterly financial results briefing: None
(Yen in millions, rounded down)
1. Financial results for the third quarter ended December 31, 2014 (April 1, 2014 - December 31, 2014)(1) Result of operations (Consolidated) (Percentage figures represent year on year changes)
Net sales | Operating income | Ordinary income | Net income | |||||
Third quarter ended December 31, 2014 Third quarter ended December 31, 2013 | Million yen 37,355 34,935 | % 6.9 12.7 | Million yen 964 1,403 | % (31.3) (6.6) | Million yen 1,163 1,621 | % (28.2) 1.2 | Million yen 812 1,118 | % (27.3) 11.9 |
Notes: Comprehensive income
Third quarter ended December 31, 2014: 1,592 million yen (yoy (10.5) %) Third quarter ended December 31, 2013: 1,778 million yen (yoy 43.8%)
Net income per share (basic) | Net income per share (diluted) | |
Third quarter ended December 31, 2014 Third quarter ended December 31, 2013 | Yen 24.79 34.11 | Yen － － |
(2) Financial position (Consolidated)
Total assets | Net assets | Equity ratio | |
As of December 31, 2014 As of March 31, 2014 | Million yen 48,540 41,597 | Million yen 17,161 15,034 | % 32.4 35.0 |
Reference: Equity
As of December 31, 2014: 15,705 million yen
As of March 31, 2014: 14,558 million yen
Dividends per share | |||||
End of 1Q | End of 2Q | End of 3Q | End of FY | Annual | |
Fiscal year ended March 31, 2014 Fiscal year ending March 31, 2015 | Yen - - | Yen - - | Yen - - | Yen 6.00 | Yen 6.00 |
Fiscal year ended March 31, 2014 Fiscal year ending March 31, 2015 | Yen - - | Yen - - | Yen - - | ||
Fiscal year ending March 31, 2015 (forecast) | 6.00 | 6.00 |
Note: Revisions to the forecasts of dividends most recently announced: None
3. Forecast for the fiscal year ending March 31, 2015 (Consolidated, April 1, 2014 - March 31, 2015)(Percentage figures represent year-on-year changes)
Net sales | Operating income | Ordinary income | Net income | Net income per share | |||||
Full year | Million yen 52,000 | % 4.9 | Million yen 2,900 | % 8.5 | Million yen 2,900 | % 0.6 | Million yen 2,000 | % 0.5 | Yen 61.01 |
Note: Revisions to the consolidated earnings forecasts most recently announced: None
Notes:
(1) Changes in significant subsidiaries (Changes in specific subsidiaries accompanied by changes in the scope of consolidation): Newly included: None Excluded: None
(2) Use of accounting methods that are specific to the preparation of the quarterly consolidated financial statements: Yes Note: For details, please refer to "2. Items Concerning Summary Information (Notes) (2) Application of Special Accounting for Preparing Quarterly Consolidated Financial Statements" on page 3 of Accompanying Materials Contents.
(3) Changes in accounting policies, changes in accounting estimates, and retrospective restatements: (a) Changes in accounting policies accompanying revisions in accounting standards: Yes
(b) Changes other than in (a): None
(c) Changes in accounting estimates: None
(d) Retrospective restatements: None
Note: For details, please refer to "2. Items Concerning Summary Information (Notes) (3) Changes in Accounting Policies, Changes in Accounting Estimates, and Retrospective Restatement" on page 3 of Accompanying Materials Contents.
(4) Number of shares outstanding (common stock)
(a) Shares outstanding (including treasury stock)
As of December 31, 2014: 32,800,000 shares As of March 31, 2014: 32,800,000 shares
(b) Treasury stock
As of December 31, 2014: 19,584 shares As of March 31, 2014: 16,769 shares
(c) Average number of shares outstanding during the period (Cumulative)
Third quarter ended December 31, 2014: 32,782,014 shares
Third quarter ended December 31, 2013: 32,783,321 shares
*Information concerning implementation status of the quarterly review procedure:
This quarterly earnings report is not subject to the quarterly review procedure prescribed by the Financial Instruments and Exchange Act. The quarterly review procedure for the quarterly financial statements that is prescribed by the Financial Instruments and Exchange Act had not been completed when this earnings report was released.
* Explanation of the proper use of these earnings forecasts and other matters:
Forward-looking statements in these materials are based on information available to management at the time this report was prepared, and on assumptions that management believes are reasonable. Actual results may differ significantly from these statements for a number of reasons. Please refer to "1. Qualitative Information Regarding Results of Operations for the Third quarter (3) Explanation Regarding Forecast for Fiscal Year Ending March 31, 2015" on page 2 of Accompanying Materials Contents for details on the assumptions used and other related matters concerning the forecast of consolidated financial results.
Accompanying Materials Contents
1. Qualitative Information Regarding Results of Operations for the Third Quarter ........................................................ 2 (1) Explanation Regarding Results of Operations ........................................................................................................ 2 (2) Explanation Regarding Financial Position.............................................................................................................. 2 (3) Explanation Regarding Forecast for Fiscal Year Ending March 31, 2015 .............................................................. 2
2. Items Concerning Summary Information (Notes) ................................................................................................... 3 (1) Changes in Significant Subsidiaries during the Third Quarter Ended December 31, 2014 .................................... 3 (2) Application of Special Accounting for Preparing Quarterly Consolidated Financial Statements ........................... 3 (3) Changes in Accounting Policies, Changes in Accounting Estimates, and Retrospective Restatement ................... 3
3. Quarterly Consolidated Financial Statements .............................................................................................................. 4 (1) Quarterly Consolidated Balance Sheets .................................................................................................................. 4 (2) Quarterly Consolidated Statements of Income and Quarterly Consolidated Statements of Comprehensive Income . 6
Quarterly Consolidated Statements of Income (Cumulative) .......................................................................................... 6
Quarterly Consolidated Statements of Comprehensive Income (Cumulative) ................................................................... 7 (3) Notes on Quarterly Consolidated Financial Statements .......................................................................................... 8 (Note Concerning Premise of Ongoing Concern) .......................................................................................................... 8
(Notes on Significant Changes in the Amount of Shareholders' Equity) ........................................................................... 8
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1. Qualitative Information Regarding Results of Operations for the Third Quarter
(1) Explanation Regarding Results of Operations
In the third quarter of the current fiscal year, there was an ongoing rally from the decline after the raising of the consumption tax rate, and the Japanese economy continued on a moderate recovery path. The fall in crude oil prices was also a factor propping up the economy. However, import prices for raw materials are rising due to the impact of the weaker yen and there is a possibility that overseas economies in oil-producing countries and emerging countries, etc. will slow down, and so the outlook remains uncertain.
Third quarter consolidated sales increased by 2,420 million yen, or 6.9%, from one year earlier to 37,355 million yen. Overseas sales were 12,752 million yen and were 34.1% of total sales.
Operating income was 964 million yen and ordinary income was 1,163 million yen, mainly due to the rise in the price of lead, our main raw material.
Furthermore, we recorded a loss on disposal of noncurrent assets of 10 million yen as an extraordinary loss, and after the deduction of taxes, net income for the first three quarters was 812 million yen.
(2) Explanation Regarding Financial Position
Total assets were 48,540 million yen at the end of the third quarter, 6,943 million yen more than at the end of the previous fiscal year. Current assets increased by 1,941 million yen to 19,657 million yen mainly because of increases in cash and deposits and in inventory assets. Noncurrent assets increased by 5,002 million yen to 28,882 million yen.
There was a 5,260 million yen increase in property, plant and equipment to 24,147 million yen mainly because capital investment was higher than the decline resulting from depreciation and we converted the subsidiary in Indonesia into a consolidated subsidiary.
Investments and other assets decreased by 272 million yen to 4,433 million yen.
Total liabilities increased by 4,816 million yen to 31,378 million yen. Current liabilities increased by 3,292 million yen to 17,875 million yen, and noncurrent liabilities increased by 1,523 million yen to 13,503 million yen.
Interest-bearing debt, which is the sum of short-term loans payable, long-term loans payable and bonds payable, increased by 3,526 million yen to 12,110 million yen.
Equity increased by 1,146 million yen to 15,705 million yen, resulting in a decrease in the equity ratio from 35.0% at the end of the previous fiscal year to 32.4% at the end of the third quarter.
(3) Explanation Regarding Forecast for Fiscal Year Ending March 31, 2015
There is no change to the consolidated forecast that was announced on May 9, 2014.
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2. Items Concerning Summary Information (Notes)
(1) Changes in Significant Subsidiaries during the Third Quarter Ended December 31, 2014
Not applicable
Note that in the cumulative third quarter under review, we changed the scope of the consolidation and the scope of application of the equity method, although these changes are not classified as changes in specified subsidiaries.
(Change in scope of consolidation or the scope of application of the equity method) (i) Significant changes in the scope of the consolidation
The significance of PT. Furukawa Indomobil Battery Manufacturing, which was a non-consolidated subsidiary in the previous fiscal year, has increased, and thus we included it in the scope of the consolidation from the first quarter of the current fiscal year.
(ii) Significant changes in the scope of application of the equity method
The significance of PT. Furukawa Indomobil Battery Sales, which was an affiliate to which the equity method was not applied in the previous fiscal year, has increased, and thus we included it in the scope of application of the equity method from the first quarter of the current fiscal year.
(2) Application of Special Accounting for Preparing Quarterly Consolidated Financial Statements
Third quarter income taxes are calculated by multiplying third quarter income before income taxes by a reasonable estimate of the effective tax rate, after application of tax effect accounting, for estimated income before income taxes in the current fiscal year, including the third quarter. Deferred taxes are included in income taxes.
(3) Changes in Accounting Policies, Changes in Accounting Estimates, and Retrospective Restatement
Change in accounting policy
(Application of the Accounting Standard for Retirement Benefits, etc.)
We have applied the "Accounting Standard for Retirement Benefits" (ASBJ Statement No. 26 May 17, 2012, hereinafter referred to as the "Retirement Benefits Accounting Standard") and the "Guidance on Accounting Standard for Retirement Benefits" (ASBJ Guidance No. 25 May 17, 2012, hereinafter referred to as the "Retirement Benefits Guidance") from first quarter ended June 30, 2014 with regard to the provisions stipulated in the main text of the Retirement Benefits Accounting Standard, Paragraph 35 and the main text of the Retirement Benefits Guidance, Paragraph 67, revised the method of calculating retirement benefit obligations and business expenses, changed the period attribution method for the expected retirement benefits from the straight line standard to the benefit formula standard, and changed the method of deciding the discount rate to a method using a simple weighted average discount rate that reflects the expected period of payment of retirement benefits and the amount for each expected period of payment.
Regarding application of the Retirement Benefits Accounting Standard, etc., in accordance with the transitional treatment stipulated in the Retirement Benefits Accounting Standard, Paragraph 37, at the beginning of the cumulative third quarter ended December 31, 2014, we adjusted the effect resulting from changing the method of calculating the retirement benefit obligations and business expenses in the retained earnings.
As a result of this, the net defined benefit liability at the beginning of the cumulative third quarter ended December 31,
2014 increased by 338 million yen and the retained earnings declined by 218 million yen. Note that the impact of this change on operating income, ordinary income and income before income taxes in the third quarter under review is minor.
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3. Quarterly Consolidated Financial Statements
(1) Quarterly Consolidated Balance Sheets
ASSETS
Current assets
Fiscal year ended
March 31, 2014
(As of March 31, 2014)
(Million yen) Third quarter ended
December 31, 2014
(As of December 31, 2014)
Cash and deposits 2,097 2,920
Notes and accounts receivable-trade 10,396 10,247
Merchandise and finished goods 1,498 1,981
Work in process 2,358 2,718
Raw materials and supplies 651 779
Deferred tax assets 247 275
Other 475 744
Allowance for doubtful accounts (8) (8) Total current assets 17,716 19,657
Noncurrent assets
Property, plant and equipment
Buildings and structures, net 3,607 3,739
Machinery, equipment and vehicles, net 3,946 4,098
Tools, furniture and fixtures, net 456 494
Land 6,053 7,357
Lease assets, net 267 537
Construction in progress 4,554 7,919
Total property, plant and equipment 18,886 24,147
Intangible assets
Goodwill 103 86
Lease assets 16 9
Other 168 206
Total intangible assets 288 302
Investments and other assets
Investment securities 2,750 2,611
Deferred tax assets 1,820 1,636
Other 153 201
Allowance for doubtful accounts (18) (15) Total investments and other assets 4,706 4,433
Total noncurrent assets 23,880 28,882
Total assets 41,597 48,540
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LIABILITIES Current liabilities
Fiscal year ended
March 31, 2014
(As of March 31, 2014)
(Million yen)
Third quarter ended
December 31, 2014
(As of December 31, 2014)
Notes and accounts payable-trade 5,654 6,293
Short-term loans payable 4,978 7,720
Current portion of bonds 100 - Lease obligations 118 126
Income taxes payable 325 89
Accrued consumption taxes 92 97
Deferred tax liabilities 2 - Provision for bonuses 559 325
Provision for directors' bonuses 2 - Notes payable-facilities 347 887
Other 2,400 2,335
Total current liabilities 14,582 17,875
Noncurrent liabilities
Long-term loans payable 3,505 4,390
Lease obligations 182 462
Deferred tax liabilities 937 921
Provision for environmental measures 18 18
Net defined benefit liability 6,628 7,080
Negative goodwill 194 145
Asset retirement obligations 8 9
Other 505 476
Total noncurrent liabilities 11,980 13,503
Total liabilities 26,562 31,378
NET ASSETS Shareholders' equity
Capital stock 1,640 1,640
Capital surplus 422 422
Retained earnings 11,596 11,993
Treasury stock (6) (9) Total shareholders' equity 13,651 14,046
Accumulated other comprehensive income
Valuation difference on available-for-sale securities 713 1,105
Deferred gains or losses on hedges (2) (25) Foreign currency translation adjustment 402 630
Remeasurements of defined benefit plans (205) (51) Total accumulated other comprehensive income 907 1,659
Minority interests 476 1,456
Total net assets 15,034 17,161
Total liabilities and net assets 41,597 48,540
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(2) Quarterly Consolidated Statements of Income and Quarterly Consolidated Statements of Comprehensive Income
(Quarterly Consolidated Statements of Income (Cumulative))
Third quarter ended December 31, 2013 (From April 1, 2013
to December 31, 2013)
(Million yen)
Third quarter ended December 31, 2014 (From April 1, 2014
to December 31, 2014)
Net sales 34,935 37,355
Cost of sales 26,718 29,485
Gross profit 8,217 7,869
Selling, general and administrative expenses 6,813 6,905
Operating income 1,403 964
Non-operating income
Interest income 8 10
Dividends income 59 67
Amortization of negative goodwill 48 48
Foreign exchange gains 74 66
Other 117 121
Total non-operating income 308 314
Non-operating expenses
Interest expenses 70 88
Share of loss of entities accounted for using equity - 8 method
Other 20 18
Total non-operating expenses 90 115
Ordinary income 1,621 1,163
Extraordinary loss
Loss on disposal of noncurrent assets 2 10
Total extraordinary losses 2 10
Income before income taxes 1,618 1,153
Total income taxes 482 318
Income before minority interests 1,136 834
Minority interests in income 17 22
Net income 1,118 812
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(Quarterly Consolidated Statements of Comprehensive Income (Cumulative))
Third quarter ended December 31, 2013 (From April 1, 2013
to December 31, 2013)
(Million yen)
Third quarter ended December 31, 2014 (From April 1, 2014
to December 31, 2014)
Income before minority interests 1,136 834
Other comprehensive income
Valuation difference on available-for-sale securities 238 394
Deferred gains or losses on hedges 70 (22) Foreign currency translation adjustment 333 229
Remeasurements of defined benefit plans, net of tax - 154
Share of other comprehensive income of entities - 1 accounted for using equity method
Total other comprehensive income 642 757
Comprehensive income 1,778 1,592
Comprehensive income attributable to
Comprehensive income attributable to owners of the parent
1,760 1,564
Comprehensive income attributable to minority interests 18 28
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(3) Notes on Quarterly Consolidated Financial Statements
(Note Concerning Premise of Ongoing Concern)
Not applicable
(Notes on Significant Changes in the Amount of Shareholders' Equity)
Not applicable
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