performancewww789

July30,2019NameofcompanyYakultHonshaCo.
,Ltd.
StockexchangelistingFirstsectioninTokyoStockExchangeCodenumber2267URLhttps://www.
yakult.
co.
jp/RepresentativePresidentandRepresentativeTakashigeNegishiDirectorContactpersonExecutiveofficerShuichiWatanabeTEL+81-3-3574-8960ScheduleddateoffilingStatutoryquarterlyAugust9,2019financialreportScheduleddateofpaymentofdividendsPreparationofsupportdocumentationofresults:YesHoldingofbriefingforanalystsandinstitutionalinvestors:Yes(Figureslessthan1millionyenhavebeenroundeddown)1.
Consolidatedfinancialresultsforthe1stquarterofFY2019,endedJune30,2019(April1,2019-June30,2019)(1)ConsolidatedFinancialResults(Accumulated)(Percentagefigurespresentsyear-on-yearchanges)millionyen%millionyen%millionyen%millionyen%1QFY2019(0.
9)(0.
4)8.
5(13.
9)1QFY20182.
30.
35.
224.
7(Note)Comprehensiveincomefor1QFY20195,790millionyen{90.
0%}1QFY20183,047millionyen(73.
7)%yenyen1QFY20191QFY2018(2)ConsolidatedFinancialPositionmillionyenmillionyen%1QFY2019FY2018(Ref.
)Equityfor1QFY2019357,629millionyenFY2018357,272millionyen2.
Dividends(Basedate)yenyenyenyenyenFY201820.
0024.
0044.
00FY2019FY2019(Forecast)23.
0023.
0046.
00(Note)Revisionofthelatestdividendforecast:No3.
ForecastforconsolidatedfinancialresultsforFY2019(April1,2019-March31,2020)(Percentagefigurespresentsyear-on-yearchanges)millionyen%millionyen%millionyen%millionyen%yen2ndQrt.
3.
77.
26.
7(6.
2)Annual3.
25.
84.
24.
5(Note)Revisionofthelatestfinancialforecast:No124.
85227.
8559,500ProfitattributabletoownersofparentDividendsperShareTotal420,000OrdinaryProfit36,50048,500211,00025,50031,50020,000TotalAssetsNetAssetsOperatingProfit618,543618,532394,309392,27953.
8762.
4695,85613,723BasicearningsperShareNetSales1stQrt.
2ndQrt.
3rdQrt.
YearEnd8,628BasicearningsperShare9,97610,01312,65210,02396,691DilutedearningsperShareConsolidatedFinancialResultsforthe1stQuarterendedJune30,2019NetSalesOperatingProfitOrdinaryProfitProfitattributabletoownersofparent(JapaneseGenerallyAcceptedAccountingPrinciples)57.
857.
8EquitytoAssetRatio*Notes(1)Changesinimportantsubsidiariesduringtheperiod:No(2)SpecialAccountingTreatmentforPreparationoftheQuarterlyConsolidatedFinancialStatements:YesNote:Detailsarestatedonpg.
9under"(3)NotesonQuarterlyConsolidatedFinancialStatements"(3)Changeinaccountingpoliciesandestimates,correctionofpriorperioderror(a)Changeinaccountingpolicywithrevisionofaccountingstandard:Yes(b)Changeinaccountpolicyotherthan(a):No(c)Changeinaccountingestimates:No(d)Correctionofpriorperioderror:No(4)Sharesissued(commonstock)(a)Numberofsharesissued(includingtreasurystocks)(b)Numberoftreasurystocks(c)Weightedaverageofnumberofshares1QFY2019171,045,418FY2018171,045,4181QFY201910,854,940FY201810,819,5821QFY2019160,190,5111QFY2018160,495,608*Theseconsolidatedfinancialresultsarenotsubjectedtoauditbyourauditor.
*ExplanationfortheappropriateuseofthefinancialforecastandothercommentsNoteconcerningstatementsaboutthefuture,etc.
Thestatementsaboutthefuture,includingearningsprojections,includedinthisreportarebasedoninformationcurrentlyavailableandcertainassumptionsconsideredreasonable,whichdonotguaranteetheachievementofsuchprojectedresults.
Actualresultsmayvaryconsiderablyfromtheseprojectionsduetoarangeoffactors.
Assumptionsonwhichtheforecastisbasedandnotesontheuseoftheforecastarestatedonpg.
4under"DisclaimerofFutureOutlookincludingConsolidatedFinancialResultsForecast".
ProcedureforobtainingsupplementaryinformationonfinancialresultsWeplantoholdabriefing(conferencecall)foranalystsandinstitutionalinvestorsonJuly30,2019.
Materialsusedinthebriefingwillbepostedonthecompany'swebsite.
YakultHonshaCo.
,Ltd.
(2267)FinancialReportforthe1stQuarterofFY2019endedJune30,2019--1--TableofContents1.
QualitativeInformationRegardingQuarterlyConsolidatedBusinessResults2(1)BusinessPerformanceOverview2(2)FinancialPosition4(3)DisclaimeronFutureOutlookIncludingConsolidatedFinancialResultsForecast42.
QuarterlyConsolidatedFinancialStatementsandNotes5(1)QuarterlyConsolidatedBalanceSheet5(2)QuarterlyConsolidatedStatementofIncomeandComprehensiveIncome7QuarterlyConsolidatedStatementofIncome7QuarterlyConsolidatedStatementofComprehensiveIncome8(3)NotesonQuarterlyConsolidatedFinancialStatements9(NotesRelatedtoGoingConcernAssumption)9(NotesonSignificantChangesintheAmountofShareholders'Equity)9(SpecialAccountingTreatmentforPreparationoftheQuarterlyConsolidatedFinancialStatements)9(ChangeinAccountingPolicies)9(SegmentInformation)10YakultHonshaCo.
,Ltd.
(2267)FinancialReportforthe1stQuarterofFY2019endedJune30,2019--2--1.
QualitativeInformationRegardingQuarterlyConsolidatedBusinessResults(1)BusinessPerformanceOverview1.
PerformanceOverviewDuringthefirstquarterofthefiscalyearendingMarch31,2020,theJapaneseeconomymaintaineditsgradualrecoveryamidcontinuedimprovementintheincomeenvironment,buttheneedtobemindfulofthepotentialimpactofvolatilityintheglobaleconomyremained.
Againstthisbackground,theYakultGroup(the"Group")workedtobuildawarenessandunderstandingoftheprobioticsthatconstitutethebedrockofouroperations,whilestrivingtocommunicatethesuperiorityofourproducts.
TheGroupalsosoughttoimproveitsperformancebyenhancingitssalesorganization,developingnewproducts,upgradingitsproductionfacilities,andactivelyengaginginitsinternationalbusinessandpharmaceuticalsbusiness.
Despitetheseefforts,consolidatednetsalesforthefirstquarterofthisfiscalyeardeclined0.
9%fromthesameperiodofthepreviousyearto95,856millionyen.
Operatingprofitfell0.
4%to9,976millionyen,whileordinaryprofitrose8.
5%to13,723millionyen.
Profitattributabletoownersofparentdecreased13.
9%to8,628millionyen.
2.
OverviewbySegmentFoodandBeverages(Japan)IndairyproductsfortheJapanesemarket,YakultfocusedonbroadeningrecognitionofthesciencebehinditsproprietarylivingLactobacilluscaseistrainShirotaandBifidobacteriumbrevestrainYakult,andcontinuouslyconductedgrassrootsvaluedisseminationinitiativesutilizingscientificevidence.
Inourhomedeliverychannel,weworkedinconjunctionwithadvertisingcampaignstoencourageexistingcustomerstocontinuedrinkingourproducts,especiallyourfermentedmilkdrinksYakult400andYakult400LT.
Inaddition,westeppedupeffortstocreateapointofcontactfornewcustomersthroughYakultDeliveryNet,ouronlinehome-deliveryorderingsystem.
WealsoaimedtofurtherenhanceourhomedeliveryorganizationbyimprovingtheworkingenvironmentofYakultLadies,whilecontinuingwithhiringinitiatives.
Intheretailstorechannel,weadvancedvaluedisseminationinitiativesthroughpromotionalstaffofferingproductsampleswithafocusonthefermentedmilkdrinksNewYakult,NewYakultCalorieHalf,andYakultFive,whichwaslaunchedinMarch.
Aspartofoureffortstorevitalizeretailchannelproducts,inAprilwealsorevampedthepackagedesignforthefermentedmilkdrinkSynbioticsYakultW.
ToraisebrandrecognitionamongnewusergroupsandmotivatethemtopurchaseproductsintheMil-Milfermentedmilkseries,aTVcommercialfeaturingthebandIkimonogakaristartedairinginApril.
Wealsointroducedatie-inwithToyStory4,thelatestDisney-Pixarmovie,withpackagedesignsandTVcommercialsforthelimitedtimeflavorShunnoPeach(SeasonalPeach)inourJoieyoghurtdrinkseries.
Inotherbeverages,wereinforcedthehealthdrinkscategorybyunveilingarevampedpackagedesignforourblackvinegarKurozuDrinkinJune.
Despitetheseefforts,consolidatednetsalesforthefoodandbeveragessegment(Japan)decreased7.
8%fromthesameperiodofthepreviousfiscalyear,totaling51,835millionyen.
FoodandBeverages(Overseas)Yakult'soperationsoutsideJapancommencedinMarch1964withtheestablishmentofYakultTaiwanCo.
,Ltd.
,andnowthemanufactureandsaleofYakultoutsideofJapanspans38countriesandregionscenteredaround28companiesandoneresearchcenterwithaveragedailybottlesalesof32.
85millionYakultHonshaCo.
,Ltd.
(2267)FinancialReportforthe1stQuarterofFY2019endedJune30,2019--3--bottlesasofJune2019.
i.
TheAmericasYakultmanufacturesandsellsthefermentedmilkdrinkYakultandotherproductsinBrazil,Mexico,andtheUnitedStates.
InMay,westartedsalesofSofúlLTPeachhard-typeyoghurtinMexico.
Asaresultoftheseefforts,consolidatednetsalesinthefoodandbeverages(TheAmericas)segmentincreased1.
5%fromthesameperiodofthepreviousyearto12,596millionyen.
ii.
AsiaandOceaniaYakultmanufacturesandsellsthefermentedmilkdrinkYakultandotherproductsinHongKong,Singapore,Indonesia,Australia,Malaysia,Vietnam,India,andChina,amongothers,whilealsoimportingYakultforsaleintheUnitedArabEmiratesamongothernations.
InChina,weestablishedbranchesinLanzhou,GansuProvince;Nantong,JiangsuProvince;andShaoxing,ZhejiangProvince,andstartedsalesoftheYakultandYakultLightfermentedmilkdrinksthroughsupermarketsandotherretailoutletsfromJune2019.
ThisbringsthenumberofsalesbasesinChinato46.
WealsocompletedthesecondplantbuildingatourWuxiPlant(WuxiYakultCo.
,Ltd.
)andstartedproductionofYakultinJune2019.
InMyanmar,weareproceedingwithpreparationstostartmanufactureandsaleofYakultinAugust2019.
Asaresultoftheabove,consolidatednetsalesinthefoodandbeverages(AsiaandOceania)segmentrose2.
6%fromthesameperiodofthepreviousyearto25,658millionyen.
iii.
EuropeInEurope,YakultmanufacturesthefermentedmilkdrinkYakultandotherproductsintheNetherlands,andsellsthemintheNetherlands,Belgium,theUnitedKingdom,Germany,Austria,Italy,andothercountries.
IntheEuropeanmarket,wherethepromotionofprobioticsfacesstrictregulation,weareengagedinavarietyofinitiativesinoureffortstoreceiveapprovalforhealthclaimsrelatedtoourproducts.
Underthesecircumstances,Yakultcompaniesineachcountryaimedforsustainablegrowthbyconductingsalesinitiativestailoredtotheirrespectivemarkets.
Despitethis,however,consolidatednetsalesinthefoodandbeverages(Europe)segmentdeclined11.
8%fromthesameperiodofthepreviousyearto2,155millionyen.
PharmaceuticalsDuringthequarterunderreview,wepromotedawarenessofourproductsspecializinginoncologyandrelatedfields,aswellastheircorrectuseage.
Regardingourmainstay,theantineoplasticdrugElplat,weproactivelyconductedpresentationstargetingmedicalprofessionalsinordertomaintainourmarketshare.
AlthoughmedicalinstitutionsareincreasinglyswitchingtogenericversionsofElplat,weboostedinitiativestoencouragecustomerstocontinuechoosingElplatbyleveragingourabilitytoproviderelevantinformationaboutthedrug,aCompanystrengthasthedeveloperoftheoriginaldrug,aswellastherelationshipsoftrustwehavebuiltwithmedicalprofessionals.
Wealsosoughttoexpandsaleschannelsforourcoregenericproduct,theantineoplasticmetaboliteGemcitabine[Yakult]andotherproducts.
Inaddition,welaunchedthegenericantineoplasticdrugsCapecitabineTablets[Yakult]andGefitinibTablets[Yakult]inJune,andswiftlyworkedtobuildmarketawareness.
However,therevisionofNHIDrugPriceStandardsinApril2018resultedinlowerpricesforYakultHonshaCo.
,Ltd.
(2267)FinancialReportforthe1stQuarterofFY2019endedJune30,2019--4--mostofourdrugproducts,andthishadamajorimpactonourrevenue.
HavingachievedthegoalssetformarketpenetrationoftheantineoplasticdrugZALTRAP,thejointpromotioncontractwehadconcludedwithSanofiS.
A.
wasterminatedbymutualagreementattheendofApril.
Meanwhile,inR&D,wecontinuedtoprogresswiththeclinicaldevelopmentofitemsinourpipeline,includingthePI3Kinhibitorduvelisib[YHI1702],forwhichweconcludedanexclusivelicensingagreementfordevelopmentandcommercializationinJapanwithVerastemOncology(U.
S.
),andtheHDACinhibitorresminostat[YHI-1001],licensedfrom4SCAG(Germany).
Throughtheseefforts,weaimtofurtherstrengthenourpositioninoncologyandrelatedfields.
Asaresult,consolidatednetsalesinthePharmaceuticalssegmentdeclined3.
4%to5,460millionyen.
OthersThissegmentencompassesYakult'scosmeticsmanufacturingandsalesaswellasitsprofessionalbaseballteamoperations.
Inourcosmeticsoperations,weworkedtohelpcustomersrealizetheirinternalandexternalbeautyandtoincreasethenumberofregularusersofourcosmeticsbyfocusingoninitiativestodisseminatethevalueofourproprietarymoisturizingagentS.
E.
(ShirotaEssence),whichistheresultofourextensiveresearchonlacticacidbacteriasincetheCompany'sfoundation.
InMaywestartedpromotingawarenessofdentalandoralhealthtoinvigorateourYakultMedicatedAPACOATS.
E.
Nanotechnologytoothpasteonthefirstanniversaryofitsre-launch.
Throughthis,weworkedtoencouragecontinuingregularuseoftheproductandincreasesales.
Inourprofessionalbaseballoperations,weareworkingtoboostattendanceatTokyo'sJinguStadiumandexpandsalesthroughproactivefanengagementincludingdiverseeventsandpromotionsatthestadium,aswellasactiveinformationdissemination.
Asaresult,consolidatednetsalesintheOtherssegmentrose2.
2%to4,379millionyen.
Salesfiguresforeachsegmentdonotincludeconsumptiontax,etc.
Note:Consolidatedsalesforeachsegmentincludeinter-segmentsales.
(2)FinancialPositionTotalassetsatthefiscalquarter-endamountedto618,543millionyen,anincreaseof10millionyencomparedtothepreviousfiscalyear-end,3monthsprior.
Netassetsrose2,030millionyenfromthepreviousfiscalyearendto394,309millionyen.
Thiswasprimarilyduetoanincreaseinretainedearningsfromprofitattributabletoownersoftheparent,whichoffsetadecreaseinvaluationdifferenceonavailable-for-salesecuritiesresultingfromdecliningshareprices.
Theequitytoassetratiowas57.
8%,remainingunchangedfromthepreviousfiscalyearend.
(3)DisclaimerofFutureOutlookincludingConsolidatedFinancialResultsForecastTheaboveforecastisbasedoncertaininformationavailabletomanagementatthetimeofannouncement.
Actualoperatingresultsmaydifferfromtheseprojectionsduetovariousfactorsinthefuture.
TherearenochangestotheearningsforecastannouncedonMay14,2019.
YakultHonshaCo.
,Ltd.
2267FinancialReportforthe1stQuarterendedJune30,20192QuarterlyConsolidatedFinancialStatementsandNotes(1)QuarterlyConsolidatedBalanceSheetMillionsofyenFiscalyear2018AsofMarch31,2019CurrentperiodAsofJune30,2019AssetsCurrentAssetsCashandDeposits156,484153,543Notesandaccountsreceivable-trade52,88056,914MerchandisesandFinishedgoods9,40410,207Workinprocess2,1432,342Rawmaterialsandsupplies17,56518,492Others9,42112,431Allowancefordoubtfulaccounts(262)(273)Totalcurrentassets247,637253,657Non-CurrentAssetsProperty,plantandequipmentBuildingsandstructures,net82,75384,421Others,net117,318119,910Totalproperty,plantandequipment200,071204,331IntangibleassetsSoftware2,4632,289Others2,3182,366TotalIntangibleassets4,7824,656InvestmentsandotherassetsInvestmentsecurities155,306145,265Others10,84910,743Allowancefordoubtfulaccounts(114)(112)Totalinvestmentsandotherassets166,040155,897Totalnon-currentassets370,895364,885Totalassets618,532618,543-5-YakultHonshaCo.
,Ltd.
2267FinancialReportforthe1stQuarterendedJune30,2019MillionsofyenFiscalyear2018AsofMarch31,2019CurrentperiodAsofJune30,2019LiabilitiesCurrentliabilitiesNotesandaccountspayable-trade27,98326,848Short-termloanspayable34,59836,172Currentportionoflong-termloanspayable5,5425,549Incometaxespayable3,9843,348Provisionforbonuses6,0233,491Others37,32239,732TotalCurrentliabilities115,455115,142Non-currentliabilitiesLong-termloanspayable76,34474,956Provisionfordirectors'retirementbenefits392326Netdefinedbenefitliability5,4635,127Assetretirementobligations981989Others27,61627,690Totalnon-currentliabilities110,798109,090Totalliabilities226,253224,233NetassetsShareholders'equityCapitalstock31,11731,117Capitalsurplus41,74241,750Retainedearnings347,740352,525Treasuryshares(54,833)(55,104)Totalshareholders'equity365,767370,288AccumulatedothercomprehensiveincomeValuationdifferenceonavailable-for-salesecurities30,46524,610Foreigncurrencytranslationadjustment(36,304)(34,724)Remeasurementsofdefinedbenefitplans(2,655)(2,545)(8,495)(12,659)Non-controllinginterests35,00736,680Totalnetassets392,279394,309Totalliabilitiesandnetassets618,532618,543Totalaccumulatedothercomprehensiveincome-6-YakultHonshaCo.
,Ltd.
2267FinancialReportforthe1stQuarterendedJune30,2019(2)QuarterlyConsolidatedStatementsofIncomeandComprehensiveIncomeQuarterlyConsolidatedStatementofIncomeMillionsofyenPreviousperiodFromApril1,2018toJune30,2018CurrentperiodFromApril1,2019toJune30,2019NetSales96,69195,856Costofsales40,10239,334Grossprofit56,58956,522Selling,generalandadministrativeexpenses46,57646,545Operatingprofit10,0139,976Non-operatingincomeInterestincome1,0621,310Dividendincome974965Shareofprofitofentitiesaccountedforusingequitymethod9681,119Others550789Totalnon-operatingincome3,5564,184Non-operatingexpensesInterestexpenses182207Foreignexchangelosses599119Others134110Totalnon-operatingexpenses917437Ordinaryprofit12,65213,723ExtraordinaryincomeGainonsalesofnon-currentassets1520Gainonsalesofinvestmentsecurities1,372974Others132Totalextraordinaryincome1,3891,027ExtraordinarylossesLossonsalesofnon-currentassets45Lossonretirementofnon-currentassets69204Lossonvaluationofinvestmentsecurities743Others11Totalextraordinarylosses74955Profitbeforeincometaxes13,96613,795Incometaxes2,9463,964Profit11,0209,831Profitattributabletonon-controllinginterests9961,202Profitattributabletoownersofparent10,0238,628-7-YakultHonshaCo.
,Ltd.
2267FinancialReportforthe1stQuarterendedJune30,2019QuarterlyConsolidatedStatementsofComprehensiveIncomeMillionsofyenPreviousperiodFromApril1,2018toJune30,2018CurrentperiodFromApril1,2019toJune30,2019Profit11,0209,831OthercomprehensiveincomeValuationdifferenceonavailable-for-salesecurities1,598(5,868)Foreigncurrencytranslationadjustment(9,684)1,449Remeasurementsofdefinedbenefitplans,netoftax1091104267Totalothercomprehensiveincome(7,972)(4,041)Comprehensiveincome3,0475,790Comprehensiveincomeattributableto:Ownersofparent2,8064,4642411,325ShareofothercomprehensiveincomeofentitiesaccountedforusingequitymethodNon-controllinginterests-8-YakultHonshaCo.
,Ltd.
(2267)FinancialReportforthe1stQuarterofFY2019endedJune30,2019--9--(3)NotesonQuarterlyConsolidatedFinancialStatements(NotesRelatedtoGoingConcernAssumption)None.
(NotesonSignificantChangesintheAmountofShareholders'Equity)None.
(SpecialAccountingTreatmentforPreparationoftheQuarterlyConsolidatedFinancialStatements)CalculationofTaxExpensesTaxexpensesfortheCompanyanditsconsolidatedsubsidiariesinJapanarecalculatedbymultiplyingincomebeforeincometaxesforthefirstquarterunderreviewbythereasonablyestimatedeffectivetaxrateafterapplyingtaxeffectaccountingtotheincomebeforeincometaxesforthecurrentconsolidatedfiscalyear,includingthefirstquarterunderreview.
Inaddition,incometaxes–deferredareincludedinincometaxes.
(ChangesinAccountingPolicies)TheCompany'sconsolidatedsubsidiariesoutsideJapanbeganpreparingtheirfinancialstatementsbasedonIFRS16(Leases)fromthefirstquarterofthecurrentfiscalyear,andinprinciplerecognizeallleasesasassetsandliabilitiesontheirbalancesheets.
Asaresult,atfiscalquarter-end"Property,plantandequipment"increasedby5,162millionyen,"Others"recordedundercurrentliabilitiesroseby2,227millionyen,and"Others"recordedundernon-currentliabilitiesincreasedby2,683millionyen.
ThischangehadminimaleffectontheCompany'sprofit/lossandhadnoimpactonthebalanceofretainedearningsatthebeginningofthequarterunderreview.
YakultHonshaCo.
,Ltd.
(2267)FinancialReportforthe1stQuarterofFY2019endedJune30,2019--10--(SegmentInformation)INetSalesandprofit(loss)ineachreportablesegmentduringthefirstquarteroffiscal2018(April1toJune30,2018)(Millionsofyen)FoodandBeveragesJapanTheAmericasAsiaandOceaniaEuropeNetSalesNetSalestoexternalcustomers47,53012,41525,0012,443Intersegmentnetsalesortransfers8,708Total56,23812,41525,0012,443Segmentprofit(loss)4,9053,4026,817308PharmaceuticalsOthersAdjustmentsConsolidatedresultsNetSalesNetSalestoexternalcustomers5,6513,64996,691Intersegmentnetsalesortransfers634(9,343)Total5,6514,284(9,343)96,691Segmentprofit(loss)(727)(21)(4,670)10,013Notes:Adjustmentsareasfollows:1.
The(4,670)millionyenadjustmentinsegmentprofit(loss)includes(3,454)millionyenofcorporateexpensesnotallocatedtospecificsegments.
CorporateexpensesincludethoseofadministrativedivisionsoftheCompany,suchasthegeneralaffairsdepartment,thatcannotbeattributedtoanyspecificreportablesegments.
2.
Segmentprofitsareadjustedwithoperatingprofitunderthequarterlyconsolidatedstatementsofincome.
3.
Countries/regionsineachgeographicsegmentoutsideJapan.
(1)TheAmericas……….
Mexico,Brazil,TheUnitedStatesofAmerica(2)AsiaandOceania……….
HongKong,China,Indonesia,Singapore,Malaysia,Australia,India,Vietnam,TheUnitedArabEmirates,Myanmar(3)Europe……….
TheNetherlands,TheUnitedKingdom,Germany,Belgium,Austria,ItalyYakultHonshaCo.
,Ltd.
(2267)FinancialReportforthe1stQuarterofFY2019endedJune30,2019--11--IINetSalesandprofit(loss)ineachreportablesegmentduringthefirstquarteroffiscal2019(April1toJune30,2019)(Millionsofyen)FoodandBeveragesJapanTheAmericasAsiaandOceaniaEuropeNetSalesNetSalestoexternalcustomers46,20312,59625,6582,155Intersegmentnetsalesortransfers5,631Total51,83512,59625,6582,155Segmentprofit(loss)4,5453,6465,788106PharmaceuticalsOthersAdjustmentsConsolidatedresultsNetSalesNetSalestoexternalcustomers5,4603,78195,856Intersegmentnetsalesortransfers597(6,229)Total5,4604,379(6,229)95,856Segmentprofit(loss)60263(4,776)9,976Notes:Adjustmentsareasfollows:1.
The(4,776)millionyenadjustmentinsegmentprofit(loss)includes(3,571)millionyenofcorporateexpensenotallocatedtospecificsegments.
CorporateexpensesincludeexpensesofadministrativedivisionsoftheCompany,suchasthegeneralaffairsdepartment,thatcannotbeattributedtoanyspecificreportablesegments.
2.
Segmentprofitsareadjustedwithoperatingprofitunderthequarterlyconsolidatedstatementsofincome.
3.
Countries/regionsineachgeographicsegmentoutsideJapan.
(1)TheAmericas……….
Mexico,Brazil,TheUnitedStatesofAmerica(2)AsiaandOceania……….
HongKong,China,Indonesia,Singapore,Malaysia,Australia,India,Vietnam,TheUnitedArabEmirates,Myanmar(3)Europe……….
TheNetherlands,TheUnitedKingdom,Germany,Belgium,Austria,Italy