February 8, 2017
Highlights of Consolidated Results for the Nine Months and the Third Quarter of Fiscal Year ending March 31, 2017
Millions of yen
(except for per share amounts)
Nine months ended
Nine months ended
December 31,
December 31,
2016
Revenue
Operating profit
Profit before tax
Profit for the period
Y
476,867
47,339
48,867
38,814
38,667
21,774
Y
Y
148.93
148.52
Y
Profit for the period attributable to owners of the parent company
Comprehensive income for the period
Basic earnings per share for the period
Diluted earnings per share for the period
2015
522,839
51,541
50,522
36,616
36,252
19,054
Change
(%)
-8.8
-8.2
-3.3
6.0
6.7
14.3
139.63
139.31
As of
As of
March 31,
2016
2016
676,405
Y
675,301
362,077
349,986
345,560
333,440
51.1 %
49.4 %
1,330.96
Y
1,284.27
December 31,
Total assets
Total equity
Equity attributable to owners of the parent company
Equity attributable to owners of the parent company ratio
Y
Equity attributable to owners of the parent company per share
Y
Highlights of Consolidated Forecast for Fiscal Year ending March 31, 2017
Millions of yen
(except for per share amounts)
Revenue
Business segment profit
Operating profit
Profit for the period attributable to owners of the parent company
Revenue
Business segment profit
Operating profit
Profit for the period attributable to owners of the parent company
Basic earnings per share for the period
Dividends per common share
[Revised]
Year ending
March 31,
2017
Y
640,000
60,000
57,000
43,000
Year ended
March 31,
2016
Y
682,100
54,900
58,600
41,200
[Revised]
Year ending
March 31,
2017
Y
640,000
60,000
57,000
43,000
[Previous]
Year ending
March 31,
2017
Y
630,000
55,000
55,000
39,000
Y
Y
165.62
36.00
Change
(%)
-6.2
9.2
-2.8
4.3
Change
(%)
1.6
9.1
3.6
10.3
150.21
36.00
(Note 1) Forecasted operating results have been changed from the most recent announcement.
(Note 2) No change has been made in forecasted dividends per common share from the most recent announcement.
(Note 3) Business segment profit is calculated by subtracting cost of sales and selling, general and administrative expenses from revenue.
Notes:
1) The financial statements have been prepared in accordance with International Financial Reporting Standards (IFRS).
2) Amounts less than 1 million yen have been rounded down.
3) Yen amounts for the nine months ended December 31, 2016 have been translated into U.S. dollars for convenience only, at a uniform rate of US$1=116.00 yen,
in the accompanying consolidated financial statements.
4) Operating results for the nine months ended December 31, 2016 are based on the following currency exchange rates:
Actual average rates for the nine months ended December 31, 2016: US$=107.88 yen, EURO=119.13 yen
Forecasts for the year ending March 31, 2017 are based on the following currency exchange rates:
Assumed average rates for the fiscal year: US$=109.64 yen, EURO=119.54 yen
5) Number of shares outstanding (including treasury stock): 277,535 thousands as of December 31, 2016, 277,535 thousands as of March 31, 2016
Number of treasury stock outstanding: 17,903 thousands as of December 31, 2016, 17,901 thousands as of March 31, 2016
Number of weighted average shares (first half): 259,632 thousands during the period ended December 31, 2016, 259,630 thousands during the period ended December 31, 2015
The above-mentioned forecasts are the results of estimations based on outlook for economic environment and predictions at the time of this announcement.
The actual results of business performance may sometimes differ from these forecasts due to various factors.
1
CONSOLIDATED BALANCE SHEET
Thousands of
U.S. dollars
Millions of yen
(Transition date)
As of
April 1,
2015
Assets
Current assets
Cash and cash equivalents
Trade and other receivables
Other financial assets
Inventories
Other current assets
Subtotal
Non-current assets held for sale
Total current assets
Non-current assets
Property, plant and equipment
Investment properties
Goodwill and other intangible assets
Investments accounted for using
the equity method
Other financial assets
Deferred tax assets
Other non-current assets
Total non-current assets
Total assets
Liabilities and Equity
Liabilities
Current liabilities
Trade and other payables
Bonds and borrowings
Other financial liabilities
Current tax liabilities
Provisions
Other current liabilities
Total current liabilities
Non-current liabilities
Bonds and borrowings
Other financial liabilities
Retirement benefit obligations
Provisions
Deferred tax liabilities
Other non-current liabilities
Total non-current liabilities
Total liabilities
Equity
Capital stock
Capital surplus
Retained earnings
Treasury stock
Other components of equity
Equity attributable to owners of the
parent company
Non-controlling interests
Total equity
Total liabilities and equity
Y
Y
Y
Y
105,347
96,404
9,367
121,982
13,366
346,468
385
346,854
As of
March 31,
2016
Y
67,387
94,750
16,100
126,542
15,383
320,164
320,164
As of
December 31,
2016
Y
95,959
107,221
10,569
117,467
14,009
345,227
101
345,329
As of
December 31,
2016
$
827,233
924,319
91,112
1,012,647
120,767
2,976,095
871
2,976,974
117,453
7,609
17,954
128,920
6,907
168,117
122,775
6,709
149,585
1,058,405
57,836
1,289,526
1,343
42,753
17,618
7,871
212,604
559,458
1,437
26,881
16,872
6,000
355,137
Y 675,301
Y
1,488
28,207
16,675
5,634
331,076
676,405
12,828
243,164
143,750
48,569
2,854,103
5,831,078
73,817
10,494
7,787
14,449
5,351
42,442
154,342
Y
Y
62,139
20,701
2,558
2,888
6,889
46,550
141,728
61,381
30,642
4,732
4,543
6,531
46,873
154,705
$
$
529,147
264,155
40,793
39,164
56,302
404,078
1,333,664
4,705
5,858
19,564
3,701
2,601
2,848
39,279
193,622
137,786
11,754
17,033
2,852
11,212
2,947
183,586
325,315
118,910
9,437
16,706
3,427
8,126
3,014
159,622
314,328
1,025,086
81,353
144,017
29,543
70,052
25,983
1,376,052
2,709,724
19,209
17,200
331,165
(24,224)
6,110
19,209
17,321
363,864
(24,225)
(42,729)
19,209
17,313
398,875
(24,236)
(65,601)
165,595
149,250
3,438,578
(208,931)
(565,526)
349,460
333,440
345,560
2,978,966
16,375
365,835
559,458
16,545
349,986
Y 675,301
16,516
362,077
676,405
142,379
3,121,353
5,831,078
2
Y
$
CONSOLIDATED STATEMENT OF PROFIT OR LOSS
Thousands of U.S.
dollars
Millions of yen
Nine months ended
Nine months ended
Nine months ended
December 31,
December 31,
December 31,
2015
2016
2016
Revenue
Y
Cost of sales
Gross profit
Selling, general and administrative expenses
Other income
522,839
Y
476,867
$
4,110,922
(308,360)
(272,731)
(2,351,129)
214,479
204,135
1,759,784
(169,260)
(154,728)
(1,333,862)
8,356
1,739
14,991
Other expenses
(2,033)
(3,808)
(32,828)
Operating profit
51,541
47,339
408,095
Finance income
1,344
2,655
22,888
(2,314)
(1,252)
(10,793)
Finance costs
Share of profit (loss) of investments accounted for using
the equity method
(49)
Profit before tax
Income taxes
Profit for the period
125
1,078
50,522
48,867
421,267
(13,905)
(10,053)
(86,664)
36,616
38,814
334,603
36,252
38,667
333,336
Profit for the period attributable to:
Owners of the parent company
Non-controlling interests
364
Profit for the period
Y
Earnings per share for the period:
36,616
146
Y
Yen
Basic earnings per share for the period
Y
Diluted earnings per share for the period
139.63
139.31
3
38,814
Yen
Y
148.93
148.52
1,259
$
334,603
U.S. dollars
$
1.28
1.28
CONSOLIDATED STATEMENT OF PROFIT OR LOSS
Thousands of U.S.
dollars
Millions of yen
Three months ended
Three months ended
Three months ended
December 31,
December 31,
December 31,
2015
2016
2016
Revenue
Y
Cost of sales
Gross profit
Selling, general and administrative expenses
Other income
181,312
Y
166,596
$
1,436,172
(104,955)
(100,118)
(863,086)
76,357
66,477
573,078
(58,206)
(51,741)
(446,043)
3,795
Other expenses
987
(670)
8,509
(4,548)
(39,207)
Operating profit
21,275
11,174
96,328
Finance income
757
7,644
65,897
(780)
(7,072)
(60,966)
Finance costs
Share of profit (loss) of investments accounted for using
the equity method
(31)
57
491
11,804
101,759
18
155
Profit before tax
21,221
Income taxes
(5,891)
Profit for the period
15,329
11,823
101,922
15,145
11,676
100,655
Profit for the period attributable to:
Owners of the parent company
Non-controlling interests
183
Profit for the period
Y
Earnings per share for the period:
15,329
147
Y
Yen
Basic earnings per share for the period
Y
Diluted earnings per share for the period
58.34
58.20
4
11,823
Yen
Y
44.97
44.85
1,267
$
101,922
U.S. dollars
$
0.39
0.39
CONSOLIDATED STATEMENT OF COMPREHENSIVE INCOME
Thousands of U.S.
dollars
Millions of yen
Nine months ended
Nine months ended
Nine months ended
December 31,
December 31,
December 31,
2015
2016
2016
Profit for the period
Y
36,616
Y
38,814
$
334,603
Other comprehensive income
Items that will not be reclassified to profit or loss
Net gain (loss) on revaluation of equity
instruments measured at FVTOCI
Subtotal
Items that may be reclassified to profit or loss
Valuation differences on available-for sale
securities
-
2,328
20,069
-
2,328
20,069
(1,223)
Net changes in fair value of cash flow hedges
Exchange differences on translation of foreign
operations
-
-
(90)
(776)
(16,729)
(19,277)
(166,181)
(17,562)
(19,368)
(166,966)
(17,562)
(17,039)
(146,888)
19,054
21,774
187,707
18,694
21,632
186,483
390
Subtotal
Other comprehensive income, net of tax
Comprehensive income for the period
Comprehensive income for the period
attributable to:
Owners of the parent company
Non-controlling interests
359
Comprehensive income for the period
Y
5
19,054
142
Y
21,774
1,224
$
187,707
CONSOLIDATED STATEMENT OF COMPREHENSIVE INCOME
Thousands of U.S.
dollars
Millions of yen
Three months ended
Three months ended
Three months ended
December 31,
December 31,
December 31,
2015
2016
2016
Profit for the period
Y
15,329
Y
11,823
$
101,922
Other comprehensive income
Items that will not be reclassified to profit or loss
Net gain (loss) on revaluation of equity
instruments measured at FVTOCI
Subtotal
Items that may be reclassified to profit or loss
Valuation differences on available-for sale
securities
-
1,808
15,586
-
1,808
15,586
382
Net changes in fair value of cash flow hedges
Exchange differences on translation of foreign
operations
(96)
Subtotal
Other comprehensive income, net of tax
Comprehensive income for the period
-
-
(19)
(164)
(5,897)
39,395
339,612
(5,611)
39,376
339,448
(5,611)
41,184
355,034
9,717
53,008
456,966
9,503
52,795
455,129
Comprehensive income for the period
attributable to:
Owners of the parent company
Non-controlling interests
214
Comprehensive income for the period
Y
6
9,717
212
Y
53,008
1,828
$
456,966
CONSOLIDATED STATEMENT OF CHANGES IN EQUITY
Millions of yen
Equity attributable to owners of the parent company
Other components of equity
Nine months ended December 31, 2015
Capital
stock
Balance at April 1, 2015
Profit for the period
Other comprehensive income
Total comprehensive income for the
period
Acquisition of treasury stock
Disposal of treasury stock
Dividends
Increase(decrease) due to newly
consolidated subsidiaries
Other increases(decrease)
Total transactions with the owners
Balance at December 31, 2015
Capital
surplus
Treasury
stock
17,200
-
331,165
36,252
(24,224)
-
(16,690)
(447)
390
6,557
(1,257)
-
-
36,252
-
(16,690)
390
-
-
(8,579)
(6)
0
-
-
19,209
-
0
-
-
-
Net gain
Total equity
(loss) on
attributable
revaluation of Total other
to owners of
equity
components
the parent
instruments
of equity
company
measured at
FVTOCI
Noncontrolling
interests
16,375
364
(5)
6,110
(17,557)
349,460
36,252
(17,557)
(1,257)
-
(17,557)
18,694
359
19,054
-
-
-
(6)
0
(8,579)
(191)
(6)
0
(8,770)
-
-
-
-
-
-
-
-
-
-
0
17,200
6
(8,572)
358,844
(6)
(24,231)
(16,690)
(56)
5,299
-
(11,447)
6
(8,579)
359,575
(2)
(158)
16,576
Net gain
Total equity
(loss) on
attributable
revaluation of Total other
to owners of
equity
components
the parent
instruments
of equity
company
measured at
FVTOCI
Noncontrolling
interests
19,209
Total
equity
-
-
35
365,835
36,616
(17,562)
35
4
(8,737)
376,152
Millions of yen
Equity attributable to owners of the parent company
Other components of equity
Capital
stock
Capital
surplus
19,209
19,209
-
17,321
17,321
-
-
-
19,209
(8)
(8)
17,313
Exchange
Net
differences
changes in
on
fair value of
translation
cash flow
of foreign
hedges
operations
Retained
earnings
Treasury
stock
363,864
3,420
367,285
38,667
-
(24,225)
(24,225)
-
(46,083)
(46,083)
(19,226)
(200)
(200)
(90)
-
(19,226)
(90)
(19)
8
(10)
(24,236)
(65,310)
(291)
38,667
(9,359)
2,282
(0)
(7,077)
398,875
Valuation
differences
on availablefor sale
securities
3,554
(3,554)
-
2,282
(42,729)
(3,554)
(46,284)
(17,035)
333,440
(133)
333,307
38,667
(17,035)
-
2,282
(17,035)
21,632
-
(2,282)
(2,282)
-
(2,282)
(2,282)
(65,601)
(19)
0
(9,359)
(0)
(9,379)
345,560
16,545
44
16,589
146
(3)
142
(209)
(5)
(215)
16,516
Total
equity
349,986
(88)
349,897
38,814
(17,039)
21,774
(19)
0
(9,569)
(5)
(9,594)
362,077
Thousands of U.S. dollars
Equity attributable to owners of the parent company
Other components of equity
Nine months ended December 31, 2016
Capital
stock
Balance at March 31, 2016
Cumulative effect of accounting change
Balance at April 1, 2016
Profit for the period
Other comprehensive income
Total comprehensive income for the
period
Acquisition of treasury stock
Disposal of treasury stock
Dividends
Transfer to retained earnings
Other increases (decreases)
Total transactions with the owners
Balance at December 31, 2016
Valuation
differences
on availablefor sale
securities
Retained
earnings
Nine months ended December 31, 2016
Balance at Mach 31, 2016
Cumulative effect of accounting change
Balance at April 1, 2016
Profit for the period
Other comprehensive income
Total comprehensive income for the
period
Acquisition of treasury stock
Disposal of treasury stock
Dividends
Transfer to retained earnings
Other increases (decreases)
Total transactions with the owners
Balance at December 31, 2016
Exchange
Net
differences
changes in
on
fair value of
translation
cash flow
of foreign
hedges
operations
Capital
surplus
165,595
149,319
-
165,595
165,595
149,319
-
-
-
-
-
(69)
(69)
149,250
Exchange
Net changes
differences
in fair value
on translation
of cash flow
of foreign
hedges
operations
Valuation
differences on
available-for
sale securities
Retained
earnings
Treasury
stock
3,136,759
29,483
3,166,250
333,336
(208,836)
(208,836)
-
(397,267)
(397,267)
(165,741)
(1,724)
(1,724)
(776)
30,638
(30,638)
-
-
(165,741)
(776)
-
(164)
69
(86)
(208,931)
(563,017)
(2,509)
-
333,336
(80,681)
19,672
(0)
(61,009)
3,438,578
7
Total equity
Net gain (loss)
attributable to
on revaluation
Total other
owners
of the
of equity
components of
instruments
parent
equity
measured at
company
FVTOCI
19,672
(368,353)
(30,638)
(399,000)
(146,853)
2,874,483
(1,147)
2,873,336
333,336
(146,853)
19,672
(146,853)
186,483
(19,672)
(19,672)
-
(19,672)
(19,672)
(565,526)
(164)
0
(80,681)
(0)
(80,853)
2,978,966
NonTotal equity
controlling
interests
142,629
379
143,009
1,259
(26)
1,224
(1,802)
(43)
(1,853)
142,379
3,017,121
(759)
3,016,353
334,603
(146,888)
187,707
(164)
0
(82,491)
(43)
(82,707)
3,121,353
CONSOLIDATED STATEMENT OF CASH FLOWS
Thousands of
U.S. dollars
Millions of yen
Cash flows from operating activities
Profit before tax
Depreciation and amortization
Finance costs (income), net
Share of loss (profit) of investments accounted for using the
equity method
Loss (gain) on sales and disposal of fixed assets, net
Decrease (increase) in trade and other receivables
Decrease (increase) in inventories
Increase (decrease) in trade and other payables
Decrease (increase) in retirement benefit assets
Increase (decrease) in retirement benefit liabilities
Other, net
Subtotal
Interest income received
Dividend income received
Interest expenses paid
Income taxes paid
Net cash provided by operating activities
Cash flows from investing activities
Purchase of property, plant and equipment
Proceeds from sales of property, plant and equipment
Purchase of intangible assets
Purchase of equity instruments
Proceeds from sales of equity instruments
Purchase of debt instruments
Proceeds from sales and redemption of debt instruments
Acquisition of business
Other, net
Net cash provided by (used in) investing activities
Cash flows from financing activities
Proceeds from short-term debt
Repayments of short-term borrowings
Proceeds from long-term debt
Repayments of long-term borrowings
Proceeds from issuance of bonds
Repayments of lease obligations
Dividends paid
Dividends paid to non-controlling interests
Other, net
Net cash provided by (used in) financing activities
Effect of exchange rate changes on cash and cash equivalents
Net increase (decrease) in cash and cash equivalents
Cash and cash equivalents at beginning of period
Cash and cash equivalents at end of period
8
Nine months ended
Nine months ended
Nine months ended
December 31,
2015
December 31,
December 31,
2016
2016
Y
50,522
25,736
969
Y
49
Y
(1,210)
(1,831)
(10,168)
(4,624)
30
350
(8,506)
51,317
731
378
(403)
(25,064)
26,960
Y
(23,070)
1,111
(6,310)
(585)
2,806
(1,902)
4,748
(186,427)
1,167
(208,463)
Y
193,695
(175,000)
109,427
(27)
41,430
(1,395)
(8,579)
(193)
(441)
158,917
Y
(1,084)
(23,670)
105,347
81,677
48,867
25,353
(1,403)
$
421,267
218,560
(12,095)
(125)
(1,078)
Y
496
(12,231)
7,790
1,198
390
125
895
71,358
686
351
(443)
(10,290)
61,661
$
4,276
(105,440)
67,155
10,328
3,362
1,078
7,716
615,155
5,914
3,026
(3,819)
(88,707)
531,560
Y
(16,090)
367
(5,670)
(373)
2,216
(5,461)
11,051
(140)
(525)
(14,626)
$
(138,707)
3,164
(48,879)
(3,216)
19,103
(47,078)
95,267
(1,207)
(4,526)
(126,086)
Y
1,254
(10,605)
(1,472)
(9,359)
(214)
(17)
(20,415)
Y
1,953
28,572
67,387
95,959
10,810
$
(91,422)
(12,690)
(80,681)
(1,845)
(147)
(175,991)
$
16,836
246,310
580,922
827,233
SEGMENT INFORMATION
Nine months ended December 31, 2015
Millions of yen
Reportable segments
Printing and
Solutions
Revenue
External revenue
Inter-segment revenue
Total revenue
Business segment profit
Other income (expenses)
Operating profit
Personal and
Home
317,734
40,274
-
317,734
26,618
4,745
31,363
Network and
Contents
Machinery
79,068
-
40,274
4,413
154
4,567
41,040
-
79,068
10,471
291
10,762
Domino
Others
33,232
-
-
41,040
1,510
(224)
1,286
33,232
2,970
(90)
2,879
11,489
8,951
20,440
1,085
1,446
2,532
S.total
522,839
8,951
531,790
47,069
6,322
53,392
Adjustments
(8,951)
(8,951)
(1,850)
(1,850)
Finance income (costs)
Share of profit (loss) of
investments accounted for
using the equity method
Profit before tax
Consolidated
522,839
522,839
45,218
6,322
51,541
(969)
(49)
50,522
Nine months ended December 31, 2016
Millions of yen
Reportable segments
Printing and
Solutions
Revenue
External revenue
Inter-segment revenue
Total revenue
Business segment profit
Other income (expenses)
Operating profit
Personal and
Home
285,149
34,192
Network and
Contents
Machinery
66,353
-
-
285,149
37,929
(1,880)
36,049
34,192
1,612
(81)
1,530
37,537
-
Domino
43,648
-
66,353
4,171
348
4,520
Others
37,537
1,874
(1,053)
820
43,648
3,379
543
3,922
9,984
11,855
21,840
616
54
671
S.total
476,867
11,855
488,722
49,582
(2,068)
47,514
Adjustments
(11,855)
(11,855)
(175)
(175)
Finance income (costs)
Share of profit (loss) of
investments accounted for
using the equity method
Profit before tax
Consolidated
476,867
476,867
49,407
(2,068)
47,339
1,403
125
48,867
Nine months ended December 31, 2016
Thousand of U.S. dollars
Reportable segments
Printing and
Solutions
Revenue
External revenue
Inter-segment revenue
Total revenue
Business segment profit
Other income (expenses)
Operating profit
Personal and
Home
2,458,181
Network and
Contents
Machinery
294,759
572,009
-
-
2,458,181
326,974
(16,207)
310,767
294,759
13,897
(698)
13,190
Domino
323,595
-
376,276
-
572,009
35,957
3,000
38,966
Others
323,595
16,155
(9,078)
7,069
376,276
29,129
4,681
33,810
86,069
102,198
188,276
5,310
466
5,784
S.total
4,110,922
102,198
4,213,121
427,431
(17,828)
409,603
Finance income (costs)
Share of profit (loss) of
investments accounted for
using the equity method
Profit before tax
Adjustments
(102,198)
(102,198)
(1,509)
(1,509)
Consolidated
4,110,922
4,110,922
425,922
(17,828)
408,095
12,095
1,078
421,267
Notes:
1) Brother changed its segments effective April 1, 2016.
Main products in each business segment are as follows:
Printing and Solutions
Printers, All-in-Ones, Electronic Stationery, Scanners, etc.
Personal and Home
Home Sewing Machines, Home Cutting Machines, etc.
Machinery
Industrial Sewing Machines, Garment Printers, Machine Tools, Reducers and Gears, etc.
Network and Contents Online Karaoke Systems, Content Services, etc.
Domino
Industrial Inkjet Printers, Digital Printing Machines, etc.
Others
Real Estate, etc.
2) Business segment profit is calculated by subtracting cost of sales and selling, general and administrative expenses from revenue.
3) The figures for the previous year are presented following the above new classification.
9
SEGMENT INFORMATION
Three months ended December 31, 2015
Millions of yen
Reportable segments
Printing and
Solutions
Revenue
External revenue
Inter-segment revenue
Total revenue
Business segment profit
Other income (expenses)
Operating profit
Personal and
Home
110,761
15,614
-
110,761
12,312
2,753
15,065
Network and
Contents
Machinery
20,872
-
15,614
1,866
78
1,945
13,651
-
Domino
16,408
-
20,872
1,935
407
2,342
Others
13,651
710
(181)
528
16,408
1,012
81
1,093
4,004
2,922
6,926
351
(14)
337
S.total
181,312
2,922
184,235
18,188
3,124
21,313
Adjustments
(2,922)
(2,922)
(37)
(37)
Finance income (costs)
Share of profit (loss) of
investments accounted for
using the equity method
Profit before tax
Consolidated
181,312
181,312
18,150
3,124
21,275
(22)
(31)
21,221
Three months ended December 31, 2016
Millions of yen
Reportable segments
Printing and
Solutions
Revenue
External revenue
Inter-segment revenue
Total revenue
Business segment profit
Other income (expenses)
Operating profit
Personal and
Home
98,351
13,599
Network and
Contents
Machinery
22,714
-
-
98,351
9,780
(4,027)
5,752
13,599
1,152
(118)
1,033
12,984
-
Domino
15,493
-
22,714
1,269
123
1,392
Others
12,984
891
(83)
808
15,493
1,452
556
2,009
3,453
2,774
6,228
221
(12)
209
S.total
166,596
2,774
169,371
14,767
(3,561)
11,206
Adjustments
(2,774)
(2,774)
(31)
(31)
Finance income (costs)
Share of profit (loss) of
investments accounted for
using the equity method
Profit before tax
Consolidated
166,596
166,596
14,736
(3,561)
11,174
572
57
11,804
Three months ended December 31, 2016
Thousand of U.S. dollars
Reportable segments
Printing and
Solutions
Revenue
External revenue
Inter-segment revenue
Total revenue
Business segment profit
Other income (expenses)
Operating profit
Personal and
Home
847,853
Network and
Contents
Machinery
117,233
195,810
-
-
847,853
84,310
(34,716)
49,586
117,233
9,931
(1,017)
8,905
Domino
111,931
-
133,560
-
195,810
10,940
1,060
12,000
Others
111,931
7,681
(716)
6,966
133,560
12,517
4,793
17,319
29,767
23,914
53,690
1,905
(103)
1,802
S.total
1,436,172
23,914
1,460,095
127,302
(30,698)
96,603
Finance income (costs)
Share of profit (loss) of
investments accounted for
using the equity method
Profit before tax
Adjustments
(23,914)
(23,914)
(267)
(267)
Consolidated
1,436,172
1,436,172
127,034
(30,698)
96,328
4,931
491
101,759
Notes:
1) Brother changed its segments effective April 1, 2016.
Main products in each business segment are as follows:
Printing and Solutions
Printers, All-in-Ones, Electronic Stationery, Scanners, etc.
Personal and Home
Home Sewing Machines, Home Cutting Machines, etc.
Machinery
Industrial Sewing Machines, Garment Printers, Machine Tools, Reducers and Gears, etc.
Network and Contents Online Karaoke Systems, Content Services, etc.
Domino
Industrial Inkjet Printers, Digital Printing Machines, etc.
Others
Real Estate, etc.
2) Business segment profit is calculated by subtracting cost of sales and selling, general and administrative expenses from revenue.
3) The figures for the previous year are presented following the above new classification.
10
Brother Industries, Ltd.
February 8, 2017
Supplementary Information for the 3rd Quarter of Fiscal Year Ending March 31, 2017
1-1. Consolidated results (9-month results)
FY ended
31-Mar-16
(Apr to Dec 2015) (Apr to Dec 2016)
1-2．Sales Revenue by Business Segment (9-month results)
(Millions of yen)
FY ending
31-Mar-17
Change
FY ended
31-Mar-16
522,839
476,867
-8.8%
(+2.7%)
Business Segment Profit
Operating profit
45,218
51,541
49,407
47,339
9.3%
-8.2%
Net Income
Exchange rates
Yen-USD
36,252
121.49
38,667
107.88
-
Yen-EUR
Operating profit ratio (%)
133.67
9.9%
119.13
9.9%
-
Printing &
Solutions
6.7%
Machinery
281,306
251,885
-10.5%
1.7%
Electronic stationery
Total
36,428
317,734
33,264
285,149
-8.7%
-10.3%
4.1%
2.0%
40,274
23,631
34,192
19,392
-15.1%
-17.9%
-3.5%
-5.8%
41,953
13,483
33,298
13,662
-20.6%
1.3%
-16.1%
4.7%
Personal & Home
Industrial sewing machines
Machine tools
Industrial Part
Total
79,068
66,353
-16.1%
-9.5%
Domino
Others
41,040
33,232
11,489
37,537
43,648
9,984
-8.5%
-13.1%
-8.2%
-13.1%
Total
522,839
476,867
-8.8%
2.7%
Network & Contents
* Net Income = Profit for the period attributable to owners of the parent company
* "Exchange rates" are the rates used to convert financial statements of overseas subsidiaries into yen.
(Millions of yen)
(Millions of yen)
FY ending March31, 2017
FY ended March, 31 2016
1st Quarter
2nd Quarter
3rd Quarter
Q3 YTD
1st Quarter
(Apr to Jun 2015) (Jul to Sep 2015) (Oct to Dec 2015) (Apr to Dec 2015)
2nd Quarter
3rd Quarter
Q3 YTD
(Apr to Jun 2016) (Jul to Sep 2016) (Oct to Dec 2016) (Apr to Dec 2016)
Sales Revenue
Business Segment Profit
164,142
15,301
177,384
11,766
181,312
18,150
522,839
45,218
157,528
20,140
152,742
14,531
166,596
14,736
476,867
49,407
Operating profit
Net Income
16,406
11,634
13,859
9,471
21,275
15,145
51,541
36,252
21,107
15,338
15,056
11,652
11,174
11,676
47,339
38,667
121.34
133.86
121.91
136.00
121.07
132.37
121.49
133.67
109.07
122.47
102.91
114.59
108.72
117.70
107.88
119.13
10.0%
7.8%
11.7%
9.9%
13.4%
9.9%
6.7%
9.9%
Exchange rates
Yen-USD
Yen-EUR
Operating profit ratio (%)
Change
( w/o fx impact )
Communication and Printing
equipment
* Operating profit ratio = Operating Profit / Sales Revenue
2-1．Consolidated results（quarterly results）
(Millions of yen)
Change
(Apr to Dec 2015) (Apr to Dec 2016)
( w/o fx impact )
Sales Revenue
FY ending
31-Mar-17
* Operating profit ratio = Operating Profit / Sales Revenue
* Net Income = Profit for the period attributable to owners of the parent company
* "Exchange rates" are the rates used to convert financial statements of overseas subsidiaries into yen.
2-2．Sales Revenue by business segment （quarterly res
(Millions of yen)
(Millions of yen)
FY ended March, 31 2016
1st Quarter
2nd Quarter
3rd Quarter
FY ending March31, 2017
Q3 YTD
1st Quarter
(Apr to Jun 2015) (Jul to Sep 2015) (Oct to Dec 2015) (Apr to Dec 2015)
Communications &
Printing equipment
Printing &
Electronic stationery
Solutions
Total
Personak & Home
Industrial sewing machines
Machine tools
Industrial Part
Total
Network & Contents
Domino
Others
Total
Machinery
2nd Quarter
3rd Quarter
92,153
90,777
98,375
281,306
83,963
80,827
87,094
251,885
11,751
103,904
10,868
7,772
22,484
4,463
34,721
11,914
2,734
164,142
12,290
103,068
13,790
7,436
11,552
4,485
23,474
15,475
16,824
4,750
177,384
12,386
110,761
15,614
8,421
7,916
4,534
20,872
13,651
16,408
4,004
181,312
36,428
317,734
40,274
23,631
41,953
13,483
79,068
41,040
33,232
11,489
522,839
11,334
95,298
9,499
6,598
11,840
4,524
22,962
12,586
14,414
2,767
157,528
10,672
91,500
11,093
6,040
10,117
4,518
20,676
11,967
13,740
3,763
152,742
11,256
98,351
13,599
6,753
11,341
4,619
22,714
12,984
15,493
3,453
166,596
33,264
285,149
34,192
19,392
33,298
13,662
66,353
37,537
43,648
9,984
476,867
2-3．Business Segment profit by business segment （quarterly results）(Millions of yen)
1st Quarter
2nd Quarter
3rd Quarter
FY ending March31, 2017
Q3 YTD
1st Quarter
(Apr to Jun 2015) (Jul to Sep 2015) (Oct to Dec 2015) (Apr to Dec 2015)
G. total
2nd Quarter
3rd Quarter
Q3 YTD
(Apr to Jun 2016) (Jul to Sep 2016) (Oct to Dec 2016) (Apr to Dec 2016)
10,290
4,014
12,312
26,618
16,934
11,214
9,780
37,929
691
6,196
-290
1,854
2,339
1,090
1,866
1,935
710
4,413
10,471
1,510
-19
1,879
411
479
1,022
570
1,152
1,269
891
1,612
4,171
1,874
1,957
1,012
2,970
861
1,065
1,452
3,379
544
-35
11,766
351
-37
18,150
1,085
-1,850
45,218
198
-125
20,140
196
-18
14,531
221
-31
14,736
616
-175
49,407
190
-1,777
15,301
(Millions of yen)
FY ended March, 31 2016
Printing & Solutions
Personal & Home
Machinery
Network & Contents
Domino
Others
Adjutment
Q3 YTD
(Apr to Jun 2016) (Jul to Sep 2016) (Oct to Dec 2016) (Apr to Dec 2016)
*"Adjustment" for the first quarter of the FY ended March 31, 2016 is mainly costs associated with the share acquisition of Domino.
2-4．Operating profit by business segment
(Millions of yen)
(Millions of yen)
FY ended March, 31 2016
1st Quarter
2nd Quarter
3rd Quarter
FY ending March31, 2017
Q3 YTD
1st Quarter
(Apr to Jun 2015) (Jul to Sep 2015) (Oct to Dec 2015) (Apr to Dec 2015)
Printing & Solutions
Personal & Home
Machinery
Network & Contents
Domino
Others
Adjutment
G. total
2nd Quarter
3rd Quarter
Q3 YTD
(Apr to Jun 2016) (Jul to Sep 2016) (Oct to Dec 2016) (Apr to Dec 2016)
11,021
5,275
15,065
31,363
17,908
12,387
5,752
36,049
741
6,325
-343
1,880
2,094
1,101
1,945
2,342
528
4,567
10,762
1,286
10
1,948
276
485
1,179
-264
1,033
1,392
808
1,530
4,520
820
438
1,785
1,756
1,093
337
2,879
2,532
857
231
1,055
230
2,009
209
3,922
671
-1,777
16,406
-35
13,859
-37
21,275
-1,850
51,541
-125
21,107
-18
15,056
-31
11,174
-175
47,339
-
*"Adjustment" for the first quarter of the FY ended March 31, 2016 is mainly costs associated with the share acquisition of Domino.
2-5．Sales Revenue by geographic segment (quarterly results)(Millions of yen)
(Millions of yen)
FY ended March, 31 2016
1st Quarter
2nd Quarter
3rd Quarter
FY ending March31, 2017
Q3 YTD
1st Quarter
(Apr to Jun 2015) (Jul to Sep 2015) (Oct to Dec 2015) (Apr to Dec 2015)
2nd Quarter
3rd Quarter
Q3 YTD
(Apr to Jun 2016) (Jul to Sep 2016) (Oct to Dec 2016) (Apr to Dec 2016)
Japan
Americas
46,365
48,938
45,172
57,465
42,134
58,337
133,672
164,741
41,290
48,368
39,844
47,968
42,859
51,615
123,994
147,951
Europe
Asia and Others
37,604
31,234
41,293
33,453
50,451
30,389
129,348
95,076
39,066
28,803
38,218
26,710
42,762
29,359
120,046
84,873
G. total
164,142
177,384
181,312
522,839
157,528
152,742
166,596
476,867
1
Brother Industries, Ltd.
February 8, 2017
3-1．Cobsolidated results(annual)
(Millions of yen)
J-GAAP
FY ended
Mar 31, 2011
Net Sales（Sales Revenue）
Business Segment Profit
Operating profit
Current profits
Net Income
Exchange rates
Yen-USD
Yen-EUR
Operating profit ratio (%)
ROE (%)
ROA (%)
Net income per share (yen)
502,830
36,092
38,612
26,238
85.82
113.56
7.2%
12.1%
7.1%
98.03
FY ended
Mar 31, 2012
497,390
34,183
34,351
19,525
79.30
110.17
6.9%
8.7%
5.3%
72.95
FY ended
Mar 31, 2013
516,066
29,775
23,144
17,826
83.23
107.57
5.8%
7.2%
4.5%
66.65
IFRS
FY ended
Mar 31, 2014
FY ended
Mar 31, 2015
616,834
43,301
35,613
19,220
100.00
134.01
7.0%
6.9%
4.3%
72.20
707,237
57,541
51,557
53,969
110.03
138.68
8.1%
16.8%
10.4%
206.68
* Operating profit ratio = Operating income / Net sales(Sales Revenue)
* ROE = Net income Attributable to owners of the company / Owners' equity (average of opening balance and ending balance)
Owners' equity represents Shareholders' equity and Other comprehensive income.
* ROA = Net income Attributable to owners of the company / Total assets (average of opening balance and ending balance)
* "Exchange rates" are the rates used to convert financial statements of overseas subsidiaries into yen.
3-2．Sales Revenue by business segment
Communications and
Printing equipment
Electronic stationery
Total
Printing &
Solutions
Personal & Home
Industrial sewing machines
Machine tools
Machinery
Industrial Parts
Total
Network & Contents
Domino
Others
G. total
(Millions of yen)
FY ended
FY ending
Mar 31, 2016
Mar 31, 2017
forecast
G. total
Change x FX
366,639
338,300
-7.7%
2.4%
48,380
415,020
50,990
30,740
50,416
18,144
99,301
53,904
48,321
14,582
682,119
44,600
382,900
45,900
26,900
44,700
18,500
90,100
49,800
58,100
13,200
640,000
-7.8%
-7.7%
-10.0%
-12.5%
-11.3%
2.0%
-9.3%
-7.6%
-9.5%
-6.2%
2.5%
2.4%
-0.3%
-2.5%
-7.0%
4.8%
-3.5%
-7.4%
3-3．Business segment profit by segment
Printing & Solutions
Personal & Home
Machinery
Network & Contents
Domino
Others
Adjutment
Change
-7.5%
3.6%
(Millions of yen)
FY ended
FY ending
Mar 31, 2016
Mar 31, 2017
forecast
33,551
4,753
11,408
2,175
3,839
1,180
-1,975
54,934
-
46,200
2,500
5,100
1,900
3,800
500
60,000
Change
37.7%
-47.4%
-55.3%
-12.7%
-57.7%
9.2%
*"Adjustment" in the Actual for the FY ended March 31, 2016 is mainly costs associated with the share acquisition of Domino, which was
recorded in the first quarter of the FY ended March 31, 2016.
3-4．Operating Profit by segment
Printing & Solutions
Personal & Home
Machinery
Network & Contents
Domino
Others
Adjutment
G. total
(Millions of yen)
FY ended
FY ending
Mar 31, 2016
Mar 31, 2017
forecast
39,017
4,871
11,379
-470
3,523
2,294
-1,975
58,640
44,200
2,500
5,000
600
4,200
500
57,000
Change
13.3%
-48.7%
-56.1%
-78.2%
-2.8%
*"Adjustment" in the Actual for the FY ended March 31, 2016 is mainly costs associated with the share acquisition of Domino, which was
recorded in the first quarter of the FY ended March 31, 2016.
3-5．Sales Revenue by geographic segment
Japan
Americas
Europe
Asia and Others
G. total
(Millions of yen)
FY ended
FY ending
Mar 31, 2016
Mar 31, 2017
forecast
173,118
212,904
175,414
120,681
682,119
164,043
199,003
162,407
114,545
640,000
Change
-5.2%
-6.5%
-7.4%
-5.1%
-6.2%
2
FY ended
Mar 31, 2016
745,888
47,276
48,611
31,017
120.16
132.36
6.3%
9.2%
5.0%
119.47
FY ended
Mar 31, 2016
682,119
54,934
58,640
41,238
120.16
132.36
8.6%
12.1%
6.7%
158.83
FY ending
Mar 31,2017
forecast
640,000
60,000
57,000
43,000
109.64
119.54
8.9%
165.62
Brother Industries, Ltd.
February 8, 2017
4-1. Capital expenditure/Depreciation and amortization (annual)
(Millions of yen)
J-GAAP
FY ended
Mar 31, 2011
Capital expenditure
Depreciation and amortization
FY ended
Mar 31, 2012
19,787
24,027
FY ended
Mar 31, 2013
27,833
23,069
IFRS
FY ended
Mar 31, 2014
30,237
24,476
34,858
27,613
FY ended
Mar 31, 2015
34,064
28,205
FY ended
Mar 31, 2016
39,976
34,341
4-2. Capital expenditure/Depreciation and amortization (quarterly results)
IFRS
2nd Quarter
FY ending
Mar 31,2017
forecast
41,469
34,934
31,000
33,900
(Millions of yen)
IFRS
FY ended March 31, 2016
1st Quarter
FY ended
Mar 31, 2016
FY ending March 31, 2017
3rd Quarter
4th Quarter
1st Quarter
2nd Quarter
3rd Quarter
(Apr to Jun 2015) (Jul to Sep 2015) (Oct to Dec 2015) (Jan to Mar 2016) (Apr to Jun 2016) (Jul to sep 2016) (Oct to Dec 2016)
Capital expenditure
Depreciation and amortization
6,197
7,615
10,609
9,053
11,417
9,067
13,244
9,197
6,656
8,633
6,586
8,316
6,200
8,403
5-1. R&D Expenses (annual)
(Millions of yen)
J-GAAP
FY ended
Mar 31, 2011
R&D expenses
R&D expenses per sales (%)
FY ended
Mar 31, 2012
36,252
7.2%
FY ended
Mar 31, 2013
39,232
7.9%
IFRS
FY ended
Mar 31, 2014
37,514
7.3%
40,137
6.5%
FY ended
Mar 31, 2015
42,523
6.0%
FY ended
Mar 31, 2016
46,017
6.2%
5-2. R&D Expenses (quarterly results)
45,627
6.7%
(Millions of yen)
IFRS
IFRS
FY ended March 31, 2016
1st Quarter
FY ended
Mar 31, 2016
2nd Quarter
FY ending March 31, 2017
3rd Quarter
4th Quarter
1st Quarter
2nd Quarter
3rd Quarter
(Apr to Jun 2015) (Jul to Sep 2015) (Oct to Dec 2015) (Jan to Mar 2016) (Apr to Jun 2016) (Jul to sep 2016) (Oct to Dec 2016)
R&D expenses
10,405
11,596
11,120
12,505
9,740
10,351
11,060
6. Inventories (quarterly results)
1st Quarter
IFRS
IFRS
FY ended March 31, 2016
FY ending March 31, 2017
2nd Quarter
3rd Quarter
4th Quarter
as of Jun 30, 2015 as of Sep 30, 2015 as of Dec 31, 2015 as of Mar 31, 2016
Inventories (Millions of yen)
Inventories/cost of sales
138,435
4.3
139,966
4.0
137,517
3.9
126,871
4.1
1st Quarter
2nd Quarter
3rd Quarter
as of Jun 30, 2016 as of Sep 30, 2016as of Dec 31, 2016
113,299
4.0
112,863
3.9
117,467
3.5
7. Interest - bearing debt
J-GAAP
Interest - bearing debt (Millions of yen)
D　E　R
IFRS
FY ended
FY ended
FY ended
FY ended
FY ended
FY ended
Mar 31, 2011
Mar 31, 2012
Mar 31, 2013
Mar 31, 2014
Mar 31, 2015
Mar 31, 2016
24,386
0.1
19,966
0.1
19,224
0.1
14,366
0.05
15,481
0.04
158,440
0.49
FY ending
Mar 31, 2017
3rd Quarter
as of Dec
149,553
0.43
* DER = Interest-bearing debt / Owners' equity
Owners' equity represents Shareholders' equity and Other comprehensive income.
8. Cash flows
(Millions of yen)
J-GAAP
Net cash provided by operating activities
Net cash used in investing activities
Net cash used in financing a
ctivities
Cash and cash equivalents at end of period
IFRS
FY ended
FY ended
FY ended
FY ended
FY ended
FY ended
Mar 31, 2011
Mar 31, 2012
Mar 31, 2013
Mar 31, 2014
Mar 31, 2015
Mar 31, 2016
49,488
-20,043
-10,950
65,100
39,327
-30,758
-14,117
58,731
32,734
-41,771
-6,413
55,059
55,019
-39,099
-13,433
68,934
58,021
-15,326
-18,451
104,732
49,241
-215,091
134,317
66,690
9. Owners' equity
61,661
-14,626
-20,415
95,959
(Millions of yen)
J-GAAP
FY ended
Mar 31, 2011
Total assets
Owners' equity
Owners' equity ratio (%)
FY ending
Mar 31, 2017
Q3 YTD
372,645
220,122
59.1%
FY ended
Mar 31, 2012
370,906
231,001
62.3%
FY ended
Mar 31, 2013
421,494
262,837
62.4%
* Owners' equity ratio = Owners' equity / Total assets
Owners' equity represents Shareholders' equity and Other comprehensive income.
3
IFRS
FY ended
Mar 31, 2014
469,973
291,164
62.0%
FY ended
Mar 31, 2015
567,230
350,162
61.7%
FY ended
Mar 31, 2016
667,811
322,146
48.2%
FY ending
Mar 31, 2017
3rd Quarter
as of Dec
676,405
345,560
51.1%
FY ending
Mar 31,2017
Forect
44,700
7.0%