Consolidated Financial Statements for the Third Quarter of ... ?· Consolidated Financial Statements…

Download Consolidated Financial Statements for the Third Quarter of ... ?· Consolidated Financial Statements…

Post on 30-Jun-2018

213 views

Category:

Documents

1 download

Embed Size (px)

TRANSCRIPT

<ul><li><p>Consolidated Financial Statements for the Third Quarter of </p><p>the Fiscal Year Ending March 31, 2018 </p><p>[Japanese GAAP] </p><p>February 5, 2018 </p><p>Company name: VITAL KSK HOLDINGS, INC. </p><p>Stock exchange listing: Tokyo Stock Exchange </p><p>Code number: 3151 </p><p>URL: http://www.vitalksk.co.jp/ </p><p>Representative: Mr. Taisuke Murai, President &amp; CEO </p><p>Contact: Mr. Kiharu Takahashi, General Manager of Accounting &amp; Finance </p><p>Phone: +81-03-3275-3303 </p><p>Scheduled date of filing quarterly report: February 13, 2018 </p><p>Scheduled date of commencing dividend payments: Preparation of supplementary explanatory materials: None </p><p>Quarterly financial results meeting: None </p><p>(Amounts of less than one million yen are rounded down.) </p><p>1. Consolidated Results for the Third Quarter of the Fiscal Year Ending March 31, 2018 </p><p>(April 1, 2017 December 31, 2017) </p><p>(1) Consolidated Operating Results (% indicates changes from the previous corresponding period.) </p><p>Net sales Operating profit Ordinary profit Profit attributable to </p><p>owners of parent Nine months ended Million yen % Million yen % Million yen % Million yen % </p><p>December 31, 2017 433,608 (2.7) 1,672 (39.4) 4,438 (20.2) 3,243 (14.6) </p><p>December 31, 2016 445,667 (3.6) 2,757 (34.2) 5,563 (20.7) 3,796 (19.7) </p><p>(Note) Comprehensive income: Nine months ended December 31, 2017: 5,954 million [(5.0)%] </p><p> Nine months ended December 31, 2016: 6,265 million [(18.1)%] Basic earnings per </p><p>share Diluted earnings per </p><p>share Nine months ended Yen Yen </p><p>December 31, 2017 57.56 49.53 </p><p>December 31, 2016 67.36 58.00 </p><p>(2) Consolidated Financial Position Total assets Net assets Equity ratio </p><p> Million yen Million yen % As of December 31, 2017 343,184 94,828 27.4 </p><p>As of March 31, 2017 305,375 90,007 29.3 </p><p>(Reference) Equity: As of December 31, 2017: 94,179 million </p><p> As of March 31, 2017: 89,415 million </p><p>2. Cash Dividends </p><p>Annual dividends </p><p>1st quarter-end </p><p>2nd quarter-end </p><p>3rd quarter-end </p><p>Year-end Total </p><p> Yen Yen Yen Yen Yen </p><p>Year ended March 31, 2017 - 10.00 - 10.00 20.00 </p><p>Year ending March 31, 2018 - 10.00 - </p><p>Year ending March 31, 2018 (Forecast) </p><p> 10.00 20.00 </p><p>(Note) Revision to the forecast for dividends announced most recently: None </p></li><li><p>3. Forecast of Consolidated Results for the Fiscal Year Ending March 31, 2018 </p><p>(April 1, 2017 - March 31, 2018) </p><p> (% indicates changes from the previous corresponding period.) </p><p>Net sales Operating profit Ordinary profit Profit </p><p>attributable to owners of parent </p><p>Basic earnings per share </p><p> Million yen % Million yen % Million yen % Million yen % Yen Full year 570,000 (1.9) 2,100 (34.5) 5,800 (17.0) 4,070 (14.8) 72.22 </p><p>(Note) Revision to forecast of consolidated results announced most recently: None </p><p> * Notes: </p><p>(1) Changes in significant subsidiaries during the period under review: None (2) Accounting policies adopted specially for the preparation of quarterly consolidated financial statements: Yes </p><p>* For details, please see (3) Notes to Quarterly Consolidated Financial Statements (Accounting policies adopted specially for the preparation of quarterly consolidated financial statements) on page 8 of the attached materials. </p><p> (3) Changes in accounting policies, changes in accounting estimates and retrospective restatement </p><p>1) Changes in accounting policies due to the revision of accounting standards: None </p><p>2) Changes in accounting policies other than 1) above: None </p><p>3) Changes in accounting estimates: None </p><p>4) Retrospective restatement: None </p><p>(4) Total number of outstanding shares (common shares) </p><p>1) Total number of outstanding shares at the end of the period (including treasury stocks): </p><p>December 31, 2017: 61,224,796 shares </p><p>March 31, 2017: 61,224,796 shares </p><p>2) Total number of treasury stocks at the end of the period: </p><p>December 31, 2017: 4,868,826 shares </p><p>March 31, 2017: 4,868,605 shares </p><p>3) Average number of shares during the period: </p><p>Nine months ended December 31, 2017: 56,356,117 shares </p><p>Nine months ended December 31, 2016: 56,356,337 shares </p><p>* These quarterly financial results are outside the scope of quarterly review. </p><p>* Explanation of the proper use of performance forecast and other notes </p><p>The earnings forecast and other forward-looking statements herein are based on the information currently </p><p>available and certain assumptions deemed reasonable by the Company, and thus actual results may differ </p><p>significantly from these forecasts due to a wide range of factors. </p></li><li><p>1 </p><p>Table of Contents </p><p>1. Qualitative Information on Quarterly Financial Results .................................................................................. 2 </p><p>Explanation of Operating Results .................................................................................................................... 2 </p><p>2. Quarterly Consolidated Financial Statements and Primary Notes.................................................................... 4 </p><p>(1) Quarterly Consolidated Balance Sheets ....................................................................................................... 4 </p><p>(2) Quarterly Consolidated Statements of Income and Comprehensive Income ............................................... 6 </p><p>(3) Notes to Quarterly Consolidated Financial Statements ................................................................................ 8 </p><p>(Notes on going concern assumption) ..................................................................................................... 8 </p><p>(Notes in the case of significant changes in amount of shareholders equity) ......................................... 8 </p><p>(Accounting policies adopted specially for the preparation of quarterly consolidated financial statements) ......... 8 </p><p>(Segment information) ............................................................................................................................ 8 </p></li><li><p>2 </p><p>1. Qualitative Information on Quarterly Financial Results </p><p>Explanation of Operating Results </p><p>The Japanese economy during the nine months ended December 31, 2017 continued to be on a moderate </p><p>recovery trend as seen in improvements in corporate earnings and the employment situation, led by the </p><p>governments economic and financial policies and other factors. However, factors such as concern over policies </p><p>overseas have created an uncertain outlook. </p><p>In the pharmaceutical wholesale industry, our Groups primary business segment, Japans medical expense </p><p>curbing policy led to drug price revision in April 2016, which lowered drug price standards by 7.8%. The </p><p>government is likely to continue with its policy to limit medical costs in the future. </p><p>Under these circumstances, the Group is in the second year of its third medium-term management plan for </p><p>the three-year period from the year ended March 31, 2017 to the year ending March 31, 2019. In the third </p><p>medium-term management plan, the Company defines its long-term vision with a 10-year goal of Becoming </p><p>an indispensable presence in regional and community healthcare by strategically providing products and </p><p>services to support medicine and nursing. Furthermore, under this long-term vision, as its medium-term vision </p><p>during the third medium-term management plan, the Company defined the two visions of 1. Even in the </p><p>Generic Medicine 80% era, construct a system to create profits, and 2. Move deeper into regional healthcare </p><p>by establishing a business foundation for a medicine-nursing cooperative business. Additionally, to realize this </p><p>medium-term vision, the Company has been working toward the four basic principles of 1. Demonstrating the </p><p>comprehensive strength of the Group by implementing effective and efficient Group management, 2. </p><p>Promoting and further deepening area marketing that always emphasizes the viewpoint of the local people, 3. </p><p>Fostering and retaining healthcare coordinators, and 4. Becoming a solutions company for the medical and </p><p>nursing sectors. </p><p>In April 2017, the Company absorbed its wholly-owned consolidated subsidiary VK Shared Service, Inc. </p><p>The Information Systems Department of the subsidiary was transferred to the Information Systems Department </p><p>Office, the ICT Strategy Department of the Company. Moving forward, the ICT Strategy Department will </p><p>manage and control the Groups entire IT system, and review ICT investments. Meanwhile, the head office of </p><p>KSK CO., LTD. moved into a new building in December 2017, and the new Osaka Branch created through </p><p>integrating the Osaka Sales Department with the Osaka Daiichi Chuo Branch and Osaka Daiichi Kita Branch </p><p>was relocated to the new building in January 2018. Additionally, through also integrating the Osaka Daini </p><p>Branch in February 2018, the Company seeks to consolidate its business locations. </p><p>For the nine months ended December 31, 2017, in the pharmaceutical wholesale business, the core </p><p>business of the Group, the effects of declines in sales of hepatitis C medication and the emergency price </p><p>revision of OPDIVO, an antineoplastic agent were significant, and as a result, net sales were 433,608 million </p><p>(97.3% of that of the same period of the previous year), operating profit was 1,672 million (60.6% of that of </p><p>the same period of the previous year), ordinary profit was 4,438 million (79.8% of that of the same period of </p><p>the previous year) and profit attributable to owners of parent was 3,243 million (85.4% of that of the same </p><p>period of the previous year). </p><p>Performance results by business segment are as follows. </p><p>1) Pharmaceutical Wholesale Business </p><p>In the pharmaceutical wholesale business, sales of long-listed drugs continued its previous decline due to </p><p>category changes. In the medical payment revisions in April 2016 as well, further measures for promoting use </p><p>of generic drugs were proposed, and declines in sales of long-listed drugs were persistent during the nine </p><p>months ended December 31, 2017. Under such circumstances, the Group focused on the sales of new products </p><p>(original drugs) and products covered by the premium pricing scheme for the promotion of new drug creation </p><p>and resolution of unapproved drugs/off-label use. Additionally, its focus was also placed on promoting </p><p>negotiations by single unit and single price, an initiative to improve logistics for which efforts have been made </p></li><li><p>3 </p><p>across the pharmaceutical wholesale industry. Furthermore, the Group conducted business activities across a </p><p>wide area in the medical and nursing sectors, including the establishment of domain-based liaisons (Note 1) to </p><p>strengthen specialization in domains such as residential care and cancer treatment, strengthening the sales and </p><p>rental business of welfare equipment through the acquisition of welfare equipment consultant certifications </p><p>by 32 MS (Note 1) staff, and expansion of Meron Support, (Note 2) which provides support for creating </p><p>regular pharmacies and pharmacies that provide health support for local residents. However, as mentioned </p><p>earlier, the effects of declines in sales of hepatitis C medication were significant, and as a result, net sales were </p><p>412,242 million (97.2% of that of the same period of the previous year), and segment income (operating </p><p>profit) was 1,465 million (55.5% of that of the same period of the previous year). </p><p>At present, the Hyogo Logistics Center for KSK CO., LTD. is currently under construction. The Hyogo </p><p>Logistics Center is scheduled to begin operations in May 2018, and through creating frameworks in response to </p><p>urban logistics, the Company seeks to improve logistics efficiency. </p><p>(Note 1) Domain-based liaisons, MS </p><p>Wholesale MSs (marketing specialists; sales representatives for pharmaceutical wholesale) that possess </p><p>specialized knowledge in specific patient and medical fields, and can provide information, etc. from a customer </p><p>perspective. </p><p>(Note 2) Meron Support </p><p>Meron is customer support centered on the pharmacy portal website provided by the Group, and is a </p><p>platform that matches regional residents with their regular pharmacies. Meron Support is one of the Meron </p><p>services, and provides support for holding events at pharmacies through the rental of various simplified testing </p><p>and measurement equipment. </p><p>Meron website URL (in Japanese): http://www.meron-net.jp/ </p><p>2) Other Businesses </p><p>In other businesses, net sales were 21,365 million (99.1% of that of the same period of the previous year) </p><p>due mainly to a decline in sales in the veterinary drug wholesale business, but as a result of a recovery in </p><p>business performance in the dispensing pharmacy business, segment income (operating profit) was 158 </p><p>million (269.0% of that of the same period of the previous year). </p></li><li><p>4 </p><p>2. Quarterly Consolidated Financial Statements and Primary Notes (1) Quarterly Consolidated Balance Sheets </p><p>(Million yen) </p><p> As of March 31, 2017 As of December 31, 2017 </p><p>Assets </p><p>Current assets </p><p>Cash and deposits 23,022 37,238 </p><p>Notes and accounts receivable - trade 125,788 137,883 </p><p>Inventories 29,137 32,967 </p><p>Accounts receivable - other 15,125 16,493 </p><p>Other 2,318 1,800 </p><p>Allowance for doubtful accounts (293) (79) </p><p>Total current assets 195,098 226,303 </p><p>Non-current assets </p><p>Property, plant and equipment </p><p>Buildings and structures, net 15,447 15,932 </p><p>Land 19,880 19,874 </p><p>Other, net 3,855 6,080 </p><p>Total property, plant and equipment 39,183 41,887 </p><p>Intangible assets </p><p>Goodwill 4,239 4,007 </p><p>Other 3,181 2,845 </p><p>Total intangible assets 7,421 6,853 </p><p>Investments and other assets </p><p>Investment securities 51,732 55,387 </p><p>Other 12,970 13,711 </p><p>Allowance for doubtful accounts (1,030) (959) </p><p>Total investments and other assets 63,673 68,139 </p><p>Total non-current assets 110,277 116,880 </p><p>Total assets 305,375 343,184 </p></li><li><p>5 </p><p>(Million yen) </p><p> As of March 31, 2017 As of December 31, 2017 </p><p>Liabilities </p><p>Current liabilities </p><p>Notes and accounts payable - trade 170,688 204,712 </p><p>Short-term loans payable 1,330 1,350 </p><p>Current portion of long-term loans payable 2,261 518 </p><p>Income taxes payable 370 839 </p><p>Provision for bonuses 1,723 666 </p><p>Other provision 202 223 </p><p>Other 3,513 3,935 </p><p>Total current liabilities 180,089 212,245 </p><p>Non-current liabilities </p><p>Convertible bond-type bonds with subscription </p><p>rights to shares 10,029 10,022 </p><p>Long-term loans payable 4,812 4,800 </p><p>Other provision 182 184 </p><p>Net defined benefit liability 7,058 7,341 </p><p>Negative goodwill 1,473 920 </p><p>Other 11,723 12,840 </p><p>Total non-current liabilities 35,278 36,110 </p><p>Total liabilities 215,368 248,356 </p><p>Net assets </p><p>Shareholders equity </p><p>Capital stock 5,000 5,000 </p><p>Capital surplus 12,739 12,739 </p><p>Retained earnings 49,726 51,840 </p><p>Treasury shares (3,759) (3,759) </p><p>Total shareholders equity 63,706 65,820 </p><p>Accumulated other comprehensive income </p><p>Valuation difference on available-for-sale </p><p>securities 24,204 26,941 </p><p>Remeasurements of defined benefit plans 1,503 1,416 </p><p>Total accumulated other comprehensive </p><p>income 25,708 28,358 </p><p>Non-controlling interests 592 648 </p><p>Total net assets 90,007 94,828 </p><p>Total liabilities and net...</p></li></ul>

Recommended

View more >