Overview of Business Results of Fiscal Year Ending March 2021

Source Press Release
Company Cosmo Energy Holdings Co., Ltd. 
Tags Strategy - Corporate, Financial & Operating Data
Date May 13, 2021

1. Consolidated Business Results for FY2020 (April 1, 2020 to March 31, 2021)


Note:Figures less than 1 million are rounded down

(1)   Consolidated operating results                                                                                      (% indicates changes from the corresponding period of the previous fiscal year)

Net sales  Operating profit  Ordinary profit  Profit attributable to owners of parent 
million yen 2,233,250 2,738,003  % -18.4 -1.2  million yen 101,289 13,893  % 629.1 -85.3  million yen 97,370 16,285  % 497.9 -83.2  million yen 85,910 -28,155  % - - 
               

Note: Comprehensive income          FY2020:96,530 million yen (-%)       FY2019:-27,107 million yen (-%)

yen sen  yen sen  %  %  % 
1,025.86  861.16  30.4  5.8  4.5 
-334.84  -  -10.8  1.0  0.5 

Reference: Equity in earnings(losses) of associates    FY2020:-447 million yen                 FY2019:5,391 million yen

Note:In FY2019, diluted net income per share is not indicated because net loss per share is indicated, although there are potential common shares with dilutive effects.

(2)   Consolidated Financial Position

million yen  million yen  %  yen sen 
1,709,017  449,120  19.0  3,882.72 
1,639,765  362,839  14.6  2,853.14 

Reference: Net worth        FY2020:324,946 million yen                FY2019:239,792 million yen

(3)   Consolidated Cash Flows


CF from operating activities       CF from investing activities       CF from financing activities    Cash and cash equivalents at the

end of the period

million yen  million yen  million yen  million yen 
167,445  -84,584  -80,570  44,518 
111,733  -84,230  -24,675  43,295 
 
 

FY2020 FY2019

yen sen - -  yen sen 0.00 0.00  yen sen - -  yen sen 80.00 80.00  yen sen 80.00 80.00  million yen 6,781 6,781  % - 7.8  % 2.6 2.4 
-  0.00  -  80.00  80.00    16.7   

3. Consolidated Business Forecast for FY2021 (April 1, 2021 to March 31, 2022)


(% indicates changes from the corresponding period of the previous fiscal year)

Notes to Consolidated Financial Statements

(1)   Change in significant subsidiaries during FY2020:                    None

Newly -        (Name of Company) -             Exception -       (Name of Company) -

(2)   Changes in Accounting Policies, Accounting Estimates and Restatements:

1)   Changes in accounting policies due to revisions of accounting standards, etc.:        None

2)   Changes in accounting policies for reasons other than the Item 1:                         None

3)   Changes in accounting estimates:                                                                   None

4)   Restatements:                                                                                             None

(3)   Total Number of Outstanding Shares (Ordinary Shares)

1)  Number of outstanding shares as of the end of the period (including treasury shares)

2)  Number of shares of treasury stock as of end of the period

3)  Average number of outstanding shares during the period

Note:This summary report is not subject to audit procedure based on Financial Instruments and Exchange Act.

Note:Request for appropriate use of the business forecast and other special remarks:

The forecasts statements shown in these materials are based on information available as of the published date of this release and actual results may be different from the forecast subject to various factors that may arise in the future. For details, please refer to the“1.Overview of Consolidated Operating Results(4)Forecast for FY 2021” on page 3~4 of the Supporting Data.

Supplementary information will be uploaded on the Cosmo Energy Holdings Co., Ltd. website on May 13, 2021.

1.   Overview of Consolidated Operating Results

(1)   Overview of Consolidated Operating Results

The Japanese economy has continued to show moderate recovery during the current consolidated fiscal year, despite the very difficult situation due to the effects of the new coronavirus (COVID-19) infection. However, some weaknesses were seen in corporate profits and the employment situation. It is necessary to pay careful attention to the impact of infection trends on the domestic and overseas economies, but further recovery is also expected.

As for crude oil prices, the price for Dubai crude oil began in the US$21 /bbl range at the beginning of FY2020 and it was on the downward trend due to concerns over the worldwide economic downturn and decline in crude oil demand following the spread of the new coronavirus (COVID-19) infection. After that, crude oil prices were on the upward trend due to pickup in demand for funds backed by the economic resumption and the U.S. dollar depreciation at the exchange rate. Although the market stabilized for a while, it continued to be on upward trend due to expected recovery in demand backed by the start of the new coronavirus (COVID-19) infection vaccination and agreement to maintain coordinated production cut by OPEC-Plus. As a result, crude oil prices recovered to the US$63 level at the end of FY2020.

As for exchange rates, the Japanese yen started the fiscal year at around ¥107 /US$ level and temporarily appreciated to the

¥102 /US$ level due to fears of economic downturn caused by the spread of the new coronavirus (COVID-19) infection in the U.S. and Europe. Subsequently, the trend of the yen depreciation remained against the background of a rise in expectations for economic recovery caused by the progress in vaccination of the new coronavirus (COVID-19) infection in the U.S. and the enactment of the administration's large-scale economic stimulus bill. As a result, the yen closed at the ¥110 /US$ level at the end of the period.

As for domestic demand for petroleum product, it is continuing to be on downward trend due to sluggish prices and decrease in demand of aviation fuel and other products stemming from the new coronavirus (COVID-19) infection. Although earnings improved due to recovery of margin in line with rising crude oil prices, overall sales volume of fuel oil decreased from the previous year.

As for petrochemical products, market conditions remained sluggish due to the easing of supply and demand for major products such as ethylene and para-xylene caused by the effects of expansion of new plants overseas and other factors.

Under such business environment, based on the basic policy of the 6th consolidated medium-term management plan, under the slogan of "Oil & New, Everything About Oil – And Beyond”, while strengthening the earning power and establishing the financial basis of the oil exploration and production business and the petroleum business, which are our main business, in view of long-term environmental changes, efforts to expand the portfolio have started such as aggressive investment in the renewable energy business and strengthening competitiveness of the petrochemical business.

As a result, consolidated net sales in FY2020 were recorded ¥2,233.3 billion (down 18.4% from FY2019), consolidated operating profit ¥101.3 billion (up 629.1% from FY2019), consolidated ordinary profit, ¥97.4 billion (up 497.9% from FY2019).

This was mainly because crude oil prices, which fell sharply at the beginning of the period due to the impact of the new coronavirus (COVID-19) infection, rose due to higher expectations for economic resumption and recovery in demand, especially the margin of products improved in the petoleum business segment.

Profit attributable to owners of the parent was ¥85.9 billion due to the increase in profit mentioned above.

Segment-specific results were as follows:

[Business Segment Information]                                                                                                                                    (Unit:billion yen)

Net sales

Segment profit (loss) [Petroleum business]


Petroleum business


Petrochemical business


Oil exploration and production business


Other and               Consolidated adjustments

2,055.8  304.5  60.4  -187.4  2,233.3 
74.1  -3.3  13.9  12.7  97.4 
 
 

In the petroleum business segment, due to the decline in crude oil prices from the same period of the previous year, the segment reported net sales of ¥2,055.8 billion for FY2020 (down ¥451.0 billion from FY2019).

On the other hand, due to the impact of improvement in margin resulting from the continued recovery in crude oil prices,

segment profit was ¥74.1 billion (segment loss of ¥47.8 billion in FY2019).

The segment profit that excludes the effect of inventory evaluation recorded ¥53.3 billion (up ¥48.9 billion from FY2019). [Petrochemical business]

In the petrochemical business segment, due to the decrease in selling volume of petrochemical products and the decline in product market conditions from the same period of the previous year, the segment reported net sales of ¥304.5 billion for FY2020 (down ¥109.9 billion from the same period of FY2019) and segment loss was ¥3.3 billion (segment profit of ¥5.2 billion in the same period of FY2019).

[Oil exploration and production business]

In the oil exploration and production business segment, due to the decline in the sales price of oil products despite the increase in the oil sales volume from the same period of the previous year, the segment reported net sales of ¥60.4 billion for FY2020 (down

¥37.5 billion from FY2019) and segment profit of ¥13.9 billion (down ¥31.1 billion from FY2019).

(2)   Overview of Financial Position

(Assets)

The total current assets as of the end of FY2020 amounted to ¥605.8 billion, up ¥33.2 billion from the end of FY2019. This was primarily due to the increase in notes and accounts receivable - trade of ¥19.9 billion and inventories of ¥15.1 billion. The total non-current assets amounted to ¥1,103.1 billion, up ¥36.2 billion from the end of FY2019. This was primarily due to the increase in property, plant and equipment of ¥11.7 billion and deferred tax assets of ¥16.7 billion.

As a result, the total assets amounted to ¥1,709.0 billion, up ¥69.2 billion from the end of FY2019. (Liabilities)

The total current liabilities as of the end of FY2020 amounted to ¥752.5 billion, up ¥46.4 billion from the end of FY2019. This was primarily due to the increase in notes and accounts payable - trade of ¥33.2 billion. The total non-current liabilities amounted to ¥507.4 billion, down ¥63.4 billion from the end of FY2019. This was primarily due to the decrease in long-term loans payable of ¥37.8 billion.

As a result, the total liabilities amounted to ¥1,259.9 billion, down ¥17.0 billion from the end of FY2019. (Net Assets)

The total net assets as of the end of FY2020 amounted to ¥449.1 billion, up ¥86.3 billion from the end of FY2019. This was primarily due to profit attributable to owners of parent of ¥85.9 billion.

As a result, the net worth ratio was 19.0% (14.6% in FY2019).

(3)   Overview of Cash Flows

Cash and cash equivalents (hereinafter “cash”) as of the end of FY2020 amounted ¥44.5 billion, increased by ¥1.2 billion from

¥43.3 billion as of the end of FY2019.

Situations of each cash flow and its factors are as follows.

(Cash flows from operating activities)

As a result of operating activities, increased cash amounted to ¥167.4 billion, and the cash flows increased by ¥55.7 billion from FY2019. This was primarily due to the increase in profit before income taxes.

(Cash flows from investing activities)

As a result of investing activities, decreased cash amounted to ¥84.6 billion, and the cash flows was at the same level as FY2019. (Cash flows from financing activities)

As a result of financing activities, decreased cash amounted to ¥80.6 billion, and the cash flows increased by ¥55.9 billion from FY2019. This was primarily due to the increase in repayments of commercial papers.

(4)       Forecast for FY2021

1)  Forecast for FY2021

The Cosmo Energy Group plan to improve profitability by strengthening the competitiveness of the petroleum-related business, as formulated in new consolidated medium-term management plan (the “6th Consolidated Medium-Term Management Plan”) which started from FY2018. We will also push forward the structural reform to enhance the petrochemical business and the renewable energy business, since shift from fossil fuel is accelerating.

For FY2021, based on the assumptions of crude oil price at US$60/bbl and exchange rate at JPY105/US$, we are forecasting consolidated net sales of ¥2,150.0 billion (down ¥83.3 billion from FY2020), consolidated operating profit of ¥93.0 billion (down

¥8.3 billion from FY2020), consolidated ordinary profit of ¥88.0 billion (down ¥9.4 billion from FY2020) and profit attributable to owners of parent of ¥40.0 billion (down ¥45.9 billion from FY2020).

[Segment-Specific Business Forecast]                                                                                                                             (Unit:billion yen)

1,822.0  315.0  82.0  14.0  -83.0  2,150.0 
40.0  2.5  33.0  3.3  9.2  88.0 

[Petroleum business]

As for the petroleum business segment, profit is expected to decrease from the previous fiscal year, reflecting such factors as sales margin is expected to be secured while not being able to recieve benefit of good market condition as the previous fiscal year, since crude oil price was in rising phase.

[Petrochemical business]

As for the petrochemical business segment, profit is expected to increase from the previous fiscal year due to the expectation on market environment improvement.

[Oil exploration and production business]

As for the oil exploration and production business segment, profit is expected to increase from the previous fiscal year, due to the rise in crude oil prices.

[Renewable energy business]

Renewable energy business segment is a new business segment centered on the wind power generation, which was previously included in other business.

2)  Forecast for dividends

The Company places priority on returning profits to its shareholders. Its basic policy is to distribute stable dividends, while considering the strengthening of its corporate structure, the development of operations, and the balance of results and finance. Under this policy, the Company plans to distribute a year-end dividend per share of 80 yen for the fiscal year under review. The Company plans to distribute a dividend of 80 yen the next fiscal year.

2.   Basic Policy for Selection for Accounting Standards

The Cosmo Energy Group has a policy to make the consolidated financial statements with the Japanese Generally Accepted Ac                counting Principles for the meantime, because of retaining consolidated financial statements’ comparability and inter-enterprise comparability.

And also, The Cosmo Energy Group will correspond appropriately to applying the International Financial Reporting Standards (IFRS) in consideration of the global trend.

3.   Consolidated Financial Statements and Their Main Notes

(1)   Consolidated Balance Sheet

Assets


FY2019

As of March 31, 2020


(Unit:million yen) FY2020

As of March 31, 2021

Current assets   
Cash and deposits  52,992  52,972 
Notes and accounts receivable - trade  214,719  234,635 
Merchandise and finished goods  145,573  122,152 
Work in process  380  351 
Raw materials and supplies  88,312  126,923 
Accounts receivable - other  42,342  46,143 
Other  28,422  22,746 
Allowance for doubtful accounts  -124  -116 
Total current assets  572,619  605,808 
Non-current assets Property, plant and equipment     
Buildings and structures, net  245,682  244,331 
Oil storage depots, net  34,955  35,781 
Machinery, equipment and vehicles, net  195,478  208,999 
Land  316,908  315,483 
Leased assets, net  698  737 
Construction in progress  51,115  50,295 
Other, net  8,825  9,803 
Total property, plant and equipment  853,663  865,433 
Intangible assets Software  5,954  10,557 
Other  36,037  33,785 
Total intangible assets  41,991  44,343 
Investments and other assets Investment securities  119,071  122,402 
Long-term loans receivable  1,085  1,030 
Long-term prepaid expenses  4,312  3,169 
Net defined benefit asset  2,236  5,471 
Cost recovery under production sharing  12,988  13,018 
Deferred tax assets  23,603  40,287 
Other  8,407  8,234 
Allowance for doubtful accounts  -464  -310 
Total investments and other assets  171,239  193,303 
Total non-current assets  1,066,895  1,103,080 
Deferred assets Bond issuance cost  250  128 
Total deferred assets  250  128 
Total assets  1,639,765  1,709,017 

Liabilities


FY2019

As of March 31, 2020


(Unit:million yen)

FY2020

As of March 31, 2021

Current liabilities     
Notes and accounts payable - trade  233,520  266,695 
Short-term loans payable  135,026  175,692 
Current portion of bonds  26,000  17,700 
Commercial papers  86,000  37,200 
Accounts payable - other  106,475  92,953 
Accrued volatile oil and other petroleum taxes  82,147  108,368 
Income taxes payable  7,540  11,030 
Accrued expenses  3,835  4,415 
Provision for bonuses  6,064  6,348 
Provision for directors' bonuses  362  352 
Other  19,107  31,732 
Total current liabilities  706,080  752,488 
Non-current liabilities     
Bonds payable  20,700  3,000 
Convertible bond-type bonds with share acquisition rights  60,000  60,000 
Long-term loans payable  353,583  315,759 
Deferred tax liabilities  32,926  35,415 
Deferred tax liabilities for land revaluation  5,131  5,100 
Provision for special repairs  29,220  27,001 
Provision for business structure improvement  552  - 
Provision for environmental measures  853  866 
Net defined benefit liability  7,400  2,992 
Provision for executive remuneration BIP trust  253  847 
Asset retirement obligations  22,632  19,993 
Other  37,591  36,431 
Total non-current liabilities  570,845  507,408 
Total liabilities  1,276,925  1,259,897 

Net assets Shareholders' equity

Capital stock  40,000  40,000 
Capital surplus  82,843  82,843 
Retained earnings  132,755  211,977 
Treasury shares  -1,382  -2,019 
Total shareholders' equity  254,217  332,802 
Accumulated other comprehensive income     
Valuation difference on available-for-sale securities  2,424  4,938 
Deferred gains or losses on hedges  373  -85 
Revaluation reserve for land  -21,020  -21,123 
Foreign currency translation adjustment  5,778  5,873 
Remeasurements of defined benefit plans  -1,981  2,540 
Total accumulated other comprehensive income  -14,425  -7,855 
Non-controlling interests  123,047  124,173 
Total net assets  362,839  449,120 
Total liabilities and net assets  1,639,765  1,709,017 

(2)   Consolidated Statements of Income and Comprehensive Income

(Consolidated Statements of Income)    (Unit:million yen) 
  FY2019 From April 1, 2019 to March 31, 2020  FY2020 From April 1, 2020 to March 31, 2021 
Net sales  2,738,003  2,233,250 
Cost of sales  2,586,244  2,000,584 
Gross profit  151,758  232,666 
Selling, general and administrative expenses  137,865  131,376 
Operating profit  13,893  101,289 
Non-operating income     
Interest income  802  368 
Dividend income  789  740 
Rent income on non-current assets  1,179  1,543 
Share of profit of entities accounted for using equity method  5,391  - 
Foreign exchange gains  3,215  883 
Other  3,564  2,979 
Total non-operating income  14,943  6,515 
Non-operating expenses     
Interest expenses  9,252  7,225 
Share of loss of entities accounted for using equity method  -  447 
Other  3,298  2,761 
Total non-operating expenses  12,551  10,434 
Ordinary profit  16,285  97,370 
Extraordinary income     
Gain on sales of non-current assets  669  1,973 
Gain on sales of investment securities  399  839 
Subsidy income  2,759  340 
Compensation income  7,948  - 
Insurance income  1,517  421 
Other  68  258 
Total extraordinary income  13,362  3,833 
Extraordinary losses     
Loss on sales of non-current assets 
Loss on disposal of non-current assets  8,495  6,721 
Impairment loss  3,914  267 
Loss on valuation of investment securities  1,572  267 
Settlement package  600  - 
Other  1,145  296 
Total extraordinary losses  15,734  7,555 
Profit before income taxes  13,913  93,648 
Income taxes - current  34,108  21,567 
Income taxes - deferred  816  -17,137 
Total income taxes  34,925  4,430 
Profit (loss)  -21,012  89,218 
Profit attributable to non-controlling interests  7,143  3,307 
Profit (loss) attributable to owners of parent  -28,155  85,910 

(Consolidated Statements of Comprehensive Income)    (Unit:million yen) 
  FY2019  FY2020 
  From April 1, 2019  From April 1, 2020 
  to March 31, 2020  to March 31, 2021 
Profit (loss)  -21,012  89,218 
Other comprehensive income     
Valuation difference on available-for-sale securities  -2,142  3,375 
Deferred gains or losses on hedges  439  -984 
Revaluation reserve for land  -10 
Foreign currency translation adjustment  -25  -77 
Remeasurements of defined benefit plans, net of tax  -2,913  4,765 
Share of other comprehensive income of entities accounted for                                    -1,461                                              242 
using equity method     
Total other comprehensive income  -6,095  7,311 
Comprehensive income  -27,107  96,530 

(Breakdown)

Comprehensive income attributable to owners of parent                                         -33,748                                         92,572

Comprehensive income attributable to non-controlling interests


6,640                                           3,957

(3)   Consolidated Statements of Changes in Equity

FY2019 (From April 1, 2019 to March 31, 2020)

  Shareholders' equity 
Capital stock  Capital surplus  Retained earnings  Treasury shares  Total shareholders' equity 
 
 

(Unit:million yen)

40,000  82,963  167,574  -758  289,779 
         
    -6,781    -6,781 
    -28,155    -28,155 
      -623  -623 
    118    118 
  -119      -119 
         
-  -119  -34,818  -623  -35,561 
40,000  82,843  132,755  -1,382  254,217 
4,121  99  -20,911  7,236  739  -8,713  120,785  401,850 
               
              -6,781 
              -28,155 
              -623 
    -118      -118    - 
              -119 
-1,696  273  -1,457  -2,721  -5,592  2,261  -3,330 
-1,696  273  -109  -1,457  -2,721  -5,711  2,261  -39,010 
2,424  373  -21,020  5,778  -1,981  -14,425  123,047  362,839 

FY2020 (From April 1, 2020 to March 31, 2021)

  Shareholders' equity 
Capital stock  Capital surplus  Retained earnings  Treasury shares  Total shareholders' equity 
 
 

(Unit:million yen)

40,000  82,843  132,755  -1,382  254,217 
         
    -6,781    -6,781 
    85,910    85,910 
      -637  -637 
    92    92 
        - 
         
-  -  79,221  -637  78,584 
40,000  82,843  211,977  -2,019  332,802 
2,424  373  -21,020  5,778  -1,981  -14,425  123,047  362,839 
               
              -6,781 
              85,910 
              -637 
    -92      -92    - 
              - 
2,513  -458  -10  95  4,522  6,661  1,126  7,787 
2,513  -458  -102  95  4,522  6,569  1,126  86,280 
4,938  -85  -21,123  5,873  2,540  -7,855  124,173  449,120 

(4) Consolidated Statements of Cash Flows   
    (Unit:million yen) 
  FY2019  FY2020 
  From April 1, 2019  From April 1, 2020 
  to March 31, 2020  to March 31, 2021 
Cash flows from operating activities     
Profit before income taxes  13,913  93,648 
Depreciation  49,673  53,564 
Impairment loss  3,914  267 
Loss (gain) on sales of non-current assets  -662  -1,970 
Settlement package  600  - 
Loss (gain) on disposal of non-current assets  8,495  6,721 
Loss (gain) on sales of investment securities  -399  -839 
Loss (gain) on valuation of investment securities  1,572  267 
Subsidy income  -2,759  -340 
Interest and dividend income  -1,592  -1,108 
Compensation income  -7,948  - 
Insurance income  -1,517  -421 
Interest expenses  9,252  7,225 
Foreign exchange losses (gains)  -598  -1,357 
Share of loss (profit) of entities accounted for using equity method  -5,391  447 
Increase (decrease) in allowance for doubtful accounts  -17  -165 
Increase (decrease) in provision for special repairs  9,011  -2,363 
Increase (decrease) in provision for environmental measures  -387  -172 
Increase (decrease) in net defined benefit asset (liability)  -1,303  -832 
Decrease (increase) in notes and accounts receivable - trade  30,391  -20,191 
Recovery of recoverable accounts under production sharing  7,933  3,966 
Decrease (increase) in inventories  43,513  -15,086 
Increase (decrease) in notes and accounts payable - trade  -34,325  33,637 
Decrease (increase) in other current assets  2,269  -8,768 
Increase (decrease) in other current liabilities  -9,874  36,379 
Decrease (increase) in investments and other assets  389  1,292 
Increase (decrease) in other non-current liabilities  22,964  -1,464 
Other, net  1,357  127 
Subtotal  138,474  182,461 
Interest and dividend income received  3,565  4,147 
Interest expenses paid  -9,432  -7,235 
Payments for business structure improvement expenses  -  -529 
Proceeds from subsidy income  2,759  340 
Proceeds from compensation  7,948  - 
Proceeds from insurance income  1,517  421 
Settlement package paid  -  -600 
Income taxes paid  -33,100  -11,560 
Net cash provided by (used in) operating activities  111,733  167,445 

(Unit:million yen)

  FY2019 From April 1, 2019 to March 31, 2020  FY2020 From April 1, 2020 to March 31, 2021 
Cash flows from investing activities     
Purchase of investment securities  -4,180  -5,758 
Proceeds from sales and redemption of investment securities  584  4,026 
Purchase of shares of subsidiaries and associates  -1,240  -1,240 
Proceeds from sales and liquidation of shares of subsidiaries and associates  - 
Purchase of property, plant and equipment  -78,122  -72,503 
Payments for disposal of property, plant and equipment  -6,615  -5,418 
Proceeds from sales of property, plant and equipment  15,003  6,298 
Payments for purchases of intangible assets and long-term prepaid expenses  -9,067  -11,422 
Decrease (increase) in short-term loans receivable  134  85 
Payments of long-term loans receivable  -44  -42 
Collection of long-term loans receivable  243  247 
Payments into time deposits  -7,240  -7,355 
Proceeds from withdrawal of time deposits  6,207  8,065 
Proceeds from withdrawal of investments in silent partnership  105  80 
Other, net  -  352 
Net cash provided by (used in) investing activities  -84,230  -84,584 
Cash flows from financing activities     
Net increase (decrease) in short-term loans payable  15,330  8,050 
Proceeds from long-term loans payable  129,417  36,100 
Repayments of long-term loans payable  -145,265  -40,123 
Payments into deposits of restricted withdrawals  -  -115 
Redemption of bonds  -  -26,000 
Net increase (decrease) in commercial papers  -12,000  -48,800 
Purchase of treasury shares  -623  -637 
Cash dividends paid  -6,775  -6,778 
Dividends paid to non-controlling interests  -4,283  -2,095 
Payments from changes in ownership interests in subsidiaries that do not result in change in scope of consolidation  -285  - 
Other, net  -189  -171 
Net cash provided by (used in) financing activities  -24,675  -80,570 
Effect of exchange rate change on cash and cash equivalents  -199  -1,269 
Net increase (decrease) in cash and cash equivalents  2,627  1,021 
Cash and cash equivalents at beginning of period  40,667  43,295 

Increase (decrease) in cash and cash equivalents resulting from change in scope of consolidation

  1. Overview of Reporting Segments

The reporting segments of the Cosmo Group are comprised of those entities where obtaining separate financial reports are possible and those which the board members regularly review and decide distribution of management resources.

The Cosmo Group conducts “Petroleum Business”, “Petrochemicals Business” and “Petroleum Exploration and Production Business” and the Company or its affiliate companies operate these businesses independently depending on the type of services or products handled.

Therefore the 3 reporting segments by the Cosmo Group are, “Petroleum Business,” “Petrochemicals Business” and “Oil Exploration and Production Business,” based on the services and/or the products handled.

In further detail, “Petroleum Business” produces and markets gasoline, naphtha, kerosene, diesel, fuel oil, crude oil, lubricants, LPG, asphalt, etc. “Petrochemicals Business” produces and markets ethylene mixed-xylene, para-xylene, benzene, toluene, solvents, etc. “Petroleum Exploration and Production Business” explores and produces crude oil.

  1. Methods to Determine Net Sales, Profit or Loss, Assets, Liabilities and Other Items by Business Segment

The accounting methods by business segment reported herein are almost the same as the accounting policy adopted to prepare consolidated financial statements.

Profit by business segment is stated on an ordinary profit basis. The inter-segment profit and transfers are based on market price.

  1. Information about net sales, profit or loss, assets, liabilities and other items amounts by segment reported

FY2019 (From April 1, 2019 to March 31, 2020)                                                                                                                 ( unit:million yen)

2,290,964 215,831  364,658 49,751  42,917 54,932  39,462 45,133  - -365,650  2,738,003 - 
2,506,796  414,410  97,850  84,596  -365,650  2,738,003 
-47,800  5,185  45,030  9,182  4,686  16,285 
23,772  7,782  13,548  5,258  -688  49,673 
621  211  516  53  -601  802 
6,516  239  2,288  304  -96  9,252 
1,053  3,392  886  59  -  5,391 

Notes: 1 Other is segment of non-classified, including construction works, insurance agency, leasing, and wind power generation, etc.

2  Segment profit (loss) in “Adjustments” ¥4,686 million includes ¥5,345 million for profit that is not allocated each reported segment or “Other” segment, ¥-51 million for internal eliminations, ¥42 million for inventory adjustments, and ¥-650 million adjustment of non-current assets.

3  Segment profit (loss) is adjusted to ordinary profit of consolidated statements of income.

4  No assets and liabilities allocation is made into each segment, so that the description of such information is omitted.

FY2020 (From April 1, 2020 to March 31, 2021)                                                                                                                 ( unit:million yen)

1,906,912 148,924  268,005 36,525  22,939 37,472  35,392 41,095  - -264,017  2,233,250 - 
2,055,836  304,530  60,411  76,488  -264,017  2,233,250 
74,058  -3,319  13,859  7,865  4,906  97,370 
26,584  9,479  13,510  4,561  -572  53,564 
366  124  220  55  -398  368 
4,650  263  2,097  256  -42  7,225 
2,884  -3,433  96  -  -447 

Notes: 1 Other is segment of non-classified, including construction works, insurance agency, leasing, and wind power generation, etc.

2  Segment profit (loss) in “Adjustments” ¥4,906 million includes ¥3,879 million for profit that is not allocated each reported segment or “Other” segment, ¥1,760 million for internal eliminations, ¥64 million for inventory adjustments, and ¥-798 million adjustment of non-current assets.

3  Segment profit (loss) is adjusted to ordinary profit of consolidated statements of income.

4  No assets and liabilities allocation is made into each segment, so that the description of such information is omitted.

(Per-share Information)

Net assets per share (yen sen)

Net income (loss) per share (yen sen)

Net income per share after adjustment for dilutive securities (yen sen)

Notes: 1. In FY2019, diluted net income per share is not indicated because net loss per share is indicated, although there are potential common shares with dilutive effects.

2. In calculating net assets per share, the company’s shares which Executive Remuneration BIP Trust possess are excluded from issued shares at the end of the period (721 thousands of shares from FY2019, 1,076 thousands of shares from FY2020). In calculating net income (loss) per share, the company’s shares which Executive Remuneration BIP Trust possess are also excluded from average number of shares during the period (681 thousands of shares from FY2019, 1,021 thousands of shares from FY2020).

  1. Net income(loss) per share and diluted net income per share was calculated on the following basis.

Net income (loss) per share

Profit (loss) attributable to owners of parent (million yen)

Amount that does not belong to ordinary share holders (million yen)

Profit (loss) attributable to owners of parent that belongs to ordinary shares (million yen) Average number of ordinary shares outstanding during the year (thousands of share

Diluted net income per share

Net income adjustments to owners of parent (million yen)

Increase in the number of ordinary shares (thousands of shares)

(incl. convertible bond-type bonds with share acquisition rights (thousands of shares) Overview of potential shares not included in calculation of diluted net income per share because the stock have no dilution effect

Increase in cash and cash equivalents resulting from merger with unconsolidated subsidiaries


(5)   Notes to Consolidated Financial Statements

(Notes to Going Concern Assumption)

(Additonal Information)

(Application of tax effect accounting relating to the transition from the consolidated tax payment system to the group accounting system.)

The Company and some of the domestic consolidated subsidiaries did not apply "Implementation Guidance for Tax Effect Accounting”(ASBJ Guidance No.28 of February 16, 2018) section 44, as for deferred tax assets and deferred tax liabilities are based on the regulations of the tax law before revision, regarding the items for which the single tax payment system was revised in accordance with the transition to the group counting system and the transition to the group counting system under the “Law for Amendment of Part of Income Tax Law” (Law No. 8, 2020), "Practical Solution on the Treatment of Tax Effect Accounting for the Transition from the Consolidated Taxation System to the Group Tax Sharing System” (Practical Issues Task Force No. 39; March 31, 2020) Section 3.

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