Summary of Consolidated Financial Statements for the First Half Ended
June 30, 2019 [IFRS]
August 6, 2019
Company name: Lion Corporation
Listed stock exchanges: Tokyo Stock Exchange
Code: 4912
URL: http://www.lion.co.jp/
Representative: Masazumi Kikukawa, Representative Director, President and Executive Officer
Contact: Akihiko Takeo, Director of Finance Department
Telephone: +81-3-3621-6211
Scheduled date of filing of quarterly financial report: August 9, 2019
Start date of payment of dividend: September 3, 2019
Supplementary materials prepared for quarterly results: Yes
Quarterly results information meeting held: Yes (for institutional investors, analysts, etc.)
Figures in this and subsequent tables are truncated at the nearest million.

1. Consolidated Results for the First Half Ended June 30, 2019
(January 1, 2019 – June 30, 2019)(1) Consolidated Results (cumulative)(Percentage figures denote year-on-year change)

Net sales
Millions of yen

Operating profit%

Millions of yen%

Profit before tax
Millions of yen%

Six months ended
June 30, 2019

167,334(0.7)

12,889(27.9)

13,638(26.4)

Six months ended
June 30, 2018

168,484

3.4

17,872

43.7

18,53240.0

Profit for the period
Millions of yen%

Profit for the period
attributable toowners of the parent

Total comprehensive
income for the period

Millions of yen

Millions of yen%%

Six months ended
9,824(42.0)
8,689(37.6)
10,127(31.1)
June 30, 2019
Six months ended
16,952
76.9
13,93558.9
14,69727.0
June 30, 2018
Note: Core operating income for the six months ended June 30, 2019 was ¥12,459 million (down 0.7%
year on year). Core operating income for the six months ended June 30, 2018 was ¥12,552
million (up 0.1% year on year).
Core operating income is an earnings indicator the Company uses to measure regularbusiness performance and is calculated by subtracting selling, general and administrative
expenses from gross profit.

Basic earnings per share

Diluted earnings per share

Yen

Yen

Six months ended June30, 2019
Six months ended June30, 2018

29.89

29.86

47.95

47.89

(2) Consolidated Financial Position
Ratio of equity
attributable toowners of theparent to total
assets%Total assets

Total equity

Equityattributable toowners of theparentMillions of yen

Millions of yen

Millions of yen

358,925

208,478

197,02754.9

355,365

204,271

191,10853.8

Six
monthsended June30, 2019
Year
ended
December 31,
2018
2. Dividends

Cash dividends per share (Yen)

Fiscal 2018

First
Quarter—

SecondQuarter
10.00

Fiscal 2019

—

10.00

Third
Quarter—

Fiscal 2019 (forecast)—Year-End

Total

10.00

20.00

11.00

21.00

Note: Changes from the most recently published forecast of dividends: No
3. Forecast of Consolidated Financial Results for the Fiscal Year Ending December 31, 2019
(January 1, 2019 – December 31, 2019)(Percentage figures denote year-on-year change)

Net sales
Millions of yen

Operating profit%

Millions of yen%

Profit for the period
attributable to owners of
the parent
Millions of yen%

Fiscal360,000
3.0
31,000(9.3)
21,000(18.0)
2019
Notes: 1. Core operating income forecast: Fiscal 2019: ¥31,500 million
2. Changes from the most recently published financial results forecast: No

Basicearnings
per share
Yen

72.25

Notes(1) Significant Change in Scope of Consolidation during Period: No(2) Changes in accounting principles, procedures and presentation methods in connection with the
preparation of quarterly consolidated financial statements:
a. Changes in accounting standards required under IFRS: Yes
b. Other changes: No
c. Changes in accounting estimates: No(3) Number of outstanding shares (common stock)a. Number of outstanding shares on balance sheet dates (including treasury stocks):
As of June 30, 2019:299,115,346 shares
As of December 31, 2018:299,115,346 sharesb. Number of treasury stocks on balance sheet date:
As of June 30, 2019:
8,404,918 shares
As of December 31, 2018:
8,456,995 sharesc. Average shares outstanding over period (cumulative; consolidated)
Six months ended June 30, 2019:290,685,703 shares
Six months ended June 30, 2018:
290,609,581 shares* This report is not subject to review by a certified public accountant or external auditor.
* Appropriate use of results forecasts; other special items
The forecasts and projected operating results contained in this report are based on information
available at the time of preparation and thus involve inherent risks and uncertainties, including
those related to economic conditions, the competitive environment and exchange rate fluctuations.
Accordingly, readers are cautioned that actual results may differ materially from those projected asa result of a variety of factors. For information on forecasts of operating results, see 1. Qualitative
Information Concerning the Results of Operations for the First Half of the Current Fiscal Year (3)Forecast of Consolidated Financial Results on page 8.

Lion Corporation (Code 4912): Consolidated Financial Statements
for the First Half Ended June 30, 2019

Contents
1. Qualitative Information Concerning the Results of Operations for the First Half of the Current
Fiscal Year ------------------------------------------------------------------------------------------------------------- 2(1) Consolidated Performance ------------------------------------------------------------------------------------- 2(2) Financial Status ---------------------------------------------------------------------------------------------------- 7(3) Forecast of Consolidated Financial Results ---------------------------------------------------------------- 8

2. Condensed Consolidated Financial Statements and Notes ------------------------------------------------- 9(1) Condensed Consolidated Statement of Financial Position ---------------------------------------------- 9(2) Condensed Consolidated Statement of Income and Statement of Comprehensive Income --- 11(3) Condensed Consolidated Statement of Changes in Equity --------------------------------------------- 13(4) Notes to Condensed Consolidated Financial Statements ----------------------------------------------- 15
Notes relating to the assumption of a going concern ---------------------------------------------------------------------------- 15
Changes in Accounting Principles ---------------------------------------------------------------------------------------------------- 15
Segment Information --------------------------------------------------------------------------------------------------------------------- 17

1

Lion Corporation (Code 4912): Consolidated Financial Statements
for the First Half Ended June 30, 20191.

Qualitative Information Concerning the Results of Operations for the First Half of the Current Fiscal Year

(1) Consolidated Performance

Consolidated results for the first half of fiscal 2019 (January 1, 2019–June 30, 2019) are as follows. Net sales amounted
to ¥167,334 million, a year-on-year decrease of 0.7% (or a decrease of 0.5% in terms of real net sales, which exclude
the influence of exchange rate conversions). Core operating income came to ¥12,459 million, down 0.7% compared withthe same period of the previous fiscal year, and operating profit was ¥12,889 million, down 27.9% year on year. Profit forthe period attributable to owners of parent totaled ¥8,689 million, down 37.6% compared with the same period of theprevious fiscal year.

Lion is advancing measures based on the basic strategies of its medium-term management plan, the LION Value
Evolution Plan (LIVE Plan). These basic strategies are “Expand and Evolve Our Business Domains through New Value
Creation,” “Accelerate Growth in Overseas Businesses through Glocalization,” “Reinforce Our Management Basethrough Business Structure Reform” and “Create Dynamism to Foster Innovative Change.”

In the first half of fiscal 2019, in its domestic operations, Lion introduced such new products as toothpastes, laundry
detergents, fabric softeners, dishwashing detergents and antipyretic analgesics and worked to cultivate markets for theseproducts through marketing initiatives designed to elicit an empathetic response in consumers.

In its overseas operations, in addition to efforts related to the home care field which includes products such as laundry
detergents, the Group sought to expand its business, focusing mainly on the personal care field, including oral care andbeauty care products.

Consolidated Results(Millions of yen)Six months ended
June 30, 2019

Ratio tonet sales

Six months ended
June 30, 2018

Net sales

167,334

Core operating income

12,4597.4%

12,552

Operating profit

12,889

7.7%

8,689

5.2%

Ratio tonet sales

168,484

ChangeChange (%)(1,150)(0.7%)

7.5%(93)(0.7%)

17,872

10.6%(4,983)(27.9%)

13,935

8.3%(5,245)(37.6%)

Profit for the period
attributable to owners of
the parent
Note: Core operating income is an earnings indicator the Company uses to measure regular business performance by
subtracting selling, general and administrative expenses from gross profit.

2

Lion Corporation (Code 4912): Consolidated Financial Statements
for the First Half Ended June 30, 2019

Results by Business(Millions of yen)
Net sales

Segment profit (core operating income)Six months

Six months

ended June 30,

ended June 30,

2019

2018

Six months

Six months

ended June 30,

ended June 30,

2019

2018

Consumer Products

110,273

110,826(553)(0.5%)

7,755

8,046

(290)

(3.6%)

Industrial Products

27,00828,313(1,304)(4.6%)

779

1,352

(573)

(42.4%)

Overseas

51,47452,202(727)(1.4%)

3,669

2,892

776

26.9%

Other

15,574

15,433

141

0.9%

570

639

(68)

(10.8%)

Subtotal

204,331206,776(2,444)(1.2%)

12,775

12,930(155)(1.2%)

Adjustment(36,997)(38,291)

1,293

―

(316)

(378)

62

―

Total

167,334

168,484(1,150)(0.7%)

12,45912,552(93)(0.7%)

ChangeChange(%)

ChangeChange(%)

Results by business segment are as follows.
Consumer Products Business
The Consumer Products Business segment comprises the Oral Care Products, Beauty Care Products, Fabric Care
Products, Living Care Products, Pharmaceutical Products and Other Products businesses. Segment net sales decreased
0.5% compared with the same period of the previous fiscal year. Segment profit decreased 3.6%.
(Millions of yen)Six months ended
June 30, 2019

Net sales
Segment profit

Ratio tonet sales

June 30, 2018110,273
7,755

Ratio tonet sales

Six months ended

ChangeChange(%)(553)(0.5%)(290)(3.6%)

110,826
7.0%

8,046

7.3%

Note: Net sales include internal sales within and among segments amounting to ¥7,379 million in the first half offiscal 2019 and ¥8,134 million in the first half of fiscal 2018.

Net Sales by Product Segment(Millions of yen)Six months ended

Six months ended

June 30, 2019

June 30, 2018

ChangeChange(%)

Oral Care Products

29,85927,645

2,213

8.0%

Beauty Care Products

11,017

10,167849

8.4%

Fabric Care Products

28,622

28,911(288)(1.0%)

Living Care Products

9,095

7,857

1,237

15.8%)

Pharmaceutical Products

12,06014,142(2,082)(14.7%)

Other Products

19,618

22,101(2,483)(11.2%)

3

Lion Corporation (Code 4912): Consolidated Financial Statements
for the First Half Ended June 30, 2019
Oral Care Products
In toothpastes, CLINICA ADVANTAGE NEXT STAGE Toothpaste, a newly launched preventive dentistry toothpaste for
adults that provides care extending all the way to the delicate, sensitive dental roots, received favorable consumer
reviews. Sales of SYSTEMA Haguki (the Gums) Plus were firm, and overall sales increased year on year.
In toothbrushes, sales of CLINICA ADVANTAGE Toothbrush and SYSTEMA Toothbrush were strong. Overall sales
increased from the same period of the previous fiscal year.

In dental rinses, sales of NONIO Mouthwash were favorable. Overall sales substantially increased year on year.
Beauty Care Products
In hand soaps, sales of KireiKirei Medicated Foaming Hand Soap were strong. Overall sales increased substantially year
on year.

In body washes, sales of the hadakara Body Soap series, which saw the introduction of a new foam type in 2018, werestrong, and overall sales increased significantly year on year.

In antiperspirants and deodorants, Ban Sweat-Blocking Foot Gel, a new product with a nano-ion antiperspirant ingredientthat seals up sweat from the feet before it emerges, received favorable consumer reviews. However, sales of the Ban
Sweat-Blocking Roll-On series were down year on year, and overall sales were lower than in the same period of theprevious fiscal year.
Fabric Care Products
In fabric softeners, Lion released the improved SOFLAN Premium Deodorizer, featuring deodorizing ingredients thatpenetrate deep into and adsorb on clothing fibers, to favorable customer reviews. However, sales of SOFLAN Aroma
Rich declined compared with the same period of the previous year, and overall sales edged down year on year.
In laundry detergents, sales of super-concentrated liquid laundry detergent TOP SUPER NANOX were firm, and the
newly released liquid laundry detergent TOP Clear Liquid Antibacterial received favorable consumer reviews. However,sales of ACRON detergent for delicates fell, and overall sales edged down year on year.
Living Care Products
In dishwashing detergents, new CHARMY Magica Enzyme + (“Plus”), featuring a new formula with enzymes that break
down grime on dishes as they soak, making washing away even tough grime easy, received favorable consumer reviews.
However, overall sales decreased slightly year on year.

In household cleaners, sales of bathroom fungicide LOOK Plus Bath Antimold Fogger were sound, and LOOK Plus BathCleansing bath detergent, released in 2018, received favorable consumer reviews. Overall sales increased significantly
year on year.
Pharmaceutical Products
In antipyretic analgesics, sales of BUFFERIN PREMIUM were steady, and Lion launched new BUFFERIN Light. Overallsales rose year on year.

4Lion Corporation (Code 4912): Consolidated Financial Statements
for the First Half Ended June 30, 2019

In eye drops, sales of Smile 40 and Smile Medical A fell compared with the same period of the previous fiscal year, andoverall sales were down year on year.
Other Products
In direct-to-consumer sales products, sales of Nice rim essence Lactoferrin decreased from the same period of theprevious year, and overall sales were down year on year.

In pet supplies, sales of Nioi wo Toru Suna (Deodorizing Cat Litter) were steady, and sales of oral care products werestrong. Overall sales were up year on year.

5Lion Corporation (Code 4912): Consolidated Financial Statements
for the First Half Ended June 30, 2019

Industrial Products Business
The Industrial Products Business segment includes the Automotive, Electrical and Electronics, and Detergents for
Institutional Use Products fields. These businesses handle products that include anti-sticking agents for tires, electroconductive carbon for secondary batteries, and detergents for institutional and kitchen use, respectively. Segment net
sales decreased 4.6% compared with the previous fiscal year. Segment profit decreased 42.4%.
(Millions of yen)

Ratio tonetsales

Six months ended
June 30, 2019

Net sales

Six months ended
June 30, 2018

27,008Segment profit

Ratio tonet sales

ChangeChange(%)(1,304)(4.6%)(573)(42.4%)

28,313

779

2.9%

1,352

4.8%

Note: Net sales include internal sales within and among segments amounting to ¥10,981 million in the first half offiscal 2019 and ¥12,153 million in the first half of fiscal 2018.
In the Automotive field, sales of carbon for auto parts were steady, and overall sales increased year on year.
In the Electrical and Electronics field, sales of electro-conductive compounds for semiconductor carrier materials
decreased year on year, and overall sales were down year on year.
In the Detergents for Institutional Use Products field, sales of alcohol sanitizers for kitchens and hand soaps werefavorable. Overall sales increased year on year.
Overseas Business
The Overseas Business segment comprises business operations located in Southeast Asia, including Thailand andMalaysia, and Northeast Asia, including South Korea and China. Segment net sales decreased 1.4% year on year (or interms of real net sales, which exclude the influence of exchange rate conversions, decreased 0.7%). Segment profit
increased 26.9% year on year.
(Millions of yen)Six months ended

Ratio toSix months ended

Ratio toJune 30, 2019

net sales

June 30, 2018

net sales

Net sales

51,474

Segment profit

3,669

Change52,202
7.1%

2,892

5.5%

Change(%)(727)(1.4%)

776

26.9%

Note: Net sales include internal sales within and among segments amounting to ¥4,760 million in the first half offiscal 2019 and ¥5,212 million in the first half of fiscal 2018.

Net Sales by Region(Millions of yen)Six months ended

Six months ended

June 30, 2019

June 30, 2018

ChangeChange(%)

Southeast Asia

34,56935,431(861)(2.4%)

Northeast Asia

16,904

16,771133

0.8%

Net Sales by Region
In Southeast Asia, overall sales were down 2.4% year on year.

6Lion Corporation (Code 4912): Consolidated Financial Statements
for the First Half Ended June 30, 2019

In Thailand, sales of Shokubutsu-Monogatari body washes were steady. Overall sales after yen conversions were up
year on year.

In Malaysia, sales of TOP laundry detergent were strong. However, in 2018, a detergent raw material manufacturingsubsidiary transitioned to a joint venture structure, resulting in its exclusion from the scope of consolidation. Overall sales
after yen conversions were down year on year.

In Northeast Asia, overall sales were up 0.8% year on year.

In South Korea, sales of KireiKirei hand soap were favorable, but sales of Beat laundry detergent were down year on
year. Overall sales after yen conversions were down year on year.

In China, sales of SYSTEMA toothbrushes were firm, and sales of products imported from Japan significantly increased.
Overall sales after yen conversions were up substantially year on year.
Other (Construction Contracting Business, etc.)

Net sales(Millions of yen)Six months ended

Ratio toSix months ended

Ratio toJune 30, 2019

net sales

June 30, 2018

net sales

15,574

Segment profit

570

Change15,433
3.7%

639

4.1%

Change
(%)

141

0.9%

(68)

(10.8%)

Note: Net sales include internal sales within and among segments amounting to ¥13,924 million in the first half offiscal 2019 and ¥12,759 million in the first half of fiscal 2018.

(2) Financial Status
Status of Consolidated Assets, Liabilities and Equity
Six months ended

Six months ended

June 30, 2019

June 30, 2018

ChangeTotal assets (millions of yen)

358,925355,365

3,559

Total equity (millions of yen)

208,478

204,271

4,207

54.9

53.8

1.1

Ratio of equity attributable toowners of the parent to total
assets (%)

Total assets increased ¥3,559 million compared with the previous consolidated fiscal year-end to ¥358,925 million. Thiswas primarily attributable to an increase in property, plant and equipment. Equity increased ¥427 million to ¥208,478
million. The ratio of equity attributable to owners of the parent to total assets stood at 54.9%.

(3) Forecast of Consolidated Financial Results
7

Lion Corporation (Code 4912): Consolidated Financial Statements
for the First Half Ended June 30, 2019

Lion has made no revisions to the consolidated financial results forecasts released on February 13, 2019 for the full
fiscal year.

Assumptions Underlying the Forecast of Consolidated Financial Results for Fiscal 2019
Lion utilized the following foreign exchange rates in the calculation of the aforementioned forecasts for the third quarterand onward:¥110 = US$1.00¥3.4 = 1.00 baht

8

Lion Corporation (Code 4912): Consolidated Financial Statements
for the First Half Ended June 30, 2019

2. Condensed Consolidated Financial Statements and Notes(1) Condensed Consolidated Statement of Financial Position(Millions of yen)
December 31, 2018

June 30, 2019

AssetsCurrent assets
Cash and cash equivalents

104,972

99,652

Trade and other receivables

64,69562,169Inventories

42,05744,644

Other financial assets

2,582

3,022

Other current assets

1,626

2,821

Total current assets

215,934

212,310

81,546

83,798Non-current assets
Property, plant and equipment
Goodwill
Intangible assets
Right-of-use assets
Investments accounted for using the equity
methodDeferred tax assets

182

182

10,160

11,138

—

6,168

8,606

8,850

5,889

2,269

Retirement benefit assets

7,799

8,958

Other financial assets

25,09724,283

Other non-current assets

148

964

Total non-current assets

139,430

146,614355,365

358,925

Total assets

9Lion Corporation (Code 4912): Consolidated Financial Statements
for the First Half Ended June 30, 2019
(Millions of yen)
December 31, 2018

June 30, 2019

Liabilities and equity
Liabilities
Current liabilities
116,980

112,440

Borrowings

1,417

1,400

Income tax payables

2,674

3,352

Provisions

710

1,901

Lease liabilities

—

1,495

Other financial liabilities

907

731

Other current liabilities

7,051

4,936

Total current liabilities

129,742

126,258

Borrowings

1,202

1,002

Deferred tax liabilities

4,232

1,012

Retirement benefit liabilities

10,955

11,892355

354

Trade and other payables

Non-current liabilities

Provisions
Lease liabilities

－

5,795

Other financial liabilities

3,183

2,720

Other non-current liabilities

1,421

1,409

Total non-current liabilities
Total liabilities

21,35024,188151,093

150,446

EquityShare capital

34,43334,433

Capital surplus

34,71534,748(4,738)Treasury stock(4,766)

Other components of equity

10,9209,867

Retained earnings

115,806

122,715

Equity attributable to owners of the parent

191,108

197,027

Non-controlling interests

13,163

11,451

Total equity

204,271

208,478355,365

358,925

Total liabilities and equity

10Lion Corporation (Code 4912): Consolidated Financial Statements
for the First Half Ended June 30, 2019(2) Condensed Consolidated Statement of Income and Statement of Comprehensive Income
Condensed Consolidated Statement of Income
Six months ended June 30, 2018 and 2019
Six months ended
June 30, 2018
168,484(85,809)82,674(70,121)
6,059
(738)
17,872407(92)(Millions of yen)Six months ended
June 30, 2019
167,334(84,815)
82,518(70,059)
1,011
(581)
12,889
426
(114)

344

437

18,532(1,580)16,952

13,638(3,813)
9,824

Profit for the period attributable to:
Owners of the parent
Non-controlling interests
Profit for the period

13,935
3,016
16,952

8,689
1,134
9,824

Earnings per share
Basic (Yen)
Diluted (Yen)

47.95
47.89

29.89
29.86

Net sales
Cost of sales
Gross profit
Selling, general and administrative expenses
Other income
Other expenses
Operating profit
Finance income
Finance costs
Share of profit of investments accounted forusing the equity method
Profit before tax
Income taxes
Profit for the period

11Lion Corporation (Code 4912): Consolidated Financial Statements
for the First Half Ended June 30, 2019
Condensed Consolidated Statement of Comprehensive Income
Six months ended June 30, 2018 and 2019
(Millions of yen)Six months ended
June 30, 2019

Six months ended
June 30, 2018
Profit for the period

16,952

9,824

(304)

(4)

—

813

26

(43)

(277)

765

(22)

6

(1,664)

(471)

(289)

3

(1,977)(462)(2,254)303

Comprehensive income for the period

14,697

10,127

Comprehensive income for the period
attributable to:
Owners of the parent
Non-controlling interests
Comprehensive income for the period

12,113
2,583
14,697

8,879
1,247
10,127

Other comprehensive income
Items that will not be reclassified as profit orloss
Net gain (loss) on revaluation of financial
assets measured at fair value throughother comprehensive income
Remeasurements of defined benefit plans
Share of other comprehensive income ofinvestments accounted for using the equity
methodTotal items that will not be reclassified as
profit or loss
Items that may be subsequently reclassified
as profit or loss
Net gain (loss) on derivatives designatedas cash flow hedges
Exchange differences on translation offoreign operations
Share of other comprehensive income ofinvestments accounted for using the equity
methodTotal items that may be subsequently
reclassified as profit or loss
Total other comprehensive income, net of tax

12Lion Corporation (Code 4912): Consolidated Financial Statements
for the First Half Ended June 30, 2019(3) Condensed Consolidated Statement of Changes in Equity
Six months ended June 30, 2018
(Millions of yen)
Equity attributable to owners of the parent
Other components of equity
Net gain (loss)
on revaluation offinancial assets Net gain (loss)
Subscription measured at fair on derivatives
rights to shares value throughdesignated asothercash flow hedges
comprehensive
incomeShare capital

Capital surplus

Treasury stock

34,43334,687(4,805)210

13,826

4

—

—

—

—

—

—

—

—

—

—

(255)

(22)

—

—

—

—

(255)

(22)

—

—

—

—

—

—

—

—

(4)

—

—

—

—

19

34

(32)

—

—

—

17

—

—

—

—

—

(48)

—

—

—

—

—

—

—

—

(27)

—

Total transactions withowners

—

(11)

30

(32)

(27)

—

Balance at June 30, 201834,43334,676(4,775)

178

13,543(18)

Balance at January 1, 2018
Profit for the period
Other comprehensive
incomeTotal comprehensive
income for the period
Dividends
Acquisition of treasury
stock
Disposal of treasury
stock
Share-based payments
Changesintheownership interest in a
subsidiary without aloss of control
Transfer from othercomponents of equity
to retained earnings

Equity attributable to owners of the parent
Other components of equity
Exchangedifferences on
Totaltranslation offoreign
operations

Retainedearnings

Non-controllinginterests

Total

Total equity

Balance at January 1, 2018

1,456

15,49898,625

178,439

10,353

188,793

Profit for the period——

13,935

13,935

3,016

16,952(1,543)(1,821)—(1,821)(432)(2,254)(1,543)(1,821)

13,935

12,113

2,583

14,697——(2,905)(2,905)(1,547)(4,453)

—

—

—

(4)

—

(4)

—

(32)

—

21

—

21

—

—

—

17

—

17

—

—

—

(48)

652

604

—

(27)

27

—

—

—

Total transactions withowners—(60)(2,877)(2,918)(895)(3,814)

Balance at June 30, 2018(87)

13,616109,683

187,634

12,042

199,676

Other comprehensive
incomeTotal comprehensive
income for the period
Dividends
Acquisition of treasury
stock
Disposal of treasury
stock
Share-based
payments
Changesintheownership interest in a
subsidiary without aloss of control
Transfer from othercomponents of equity
to retained earnings

13Lion Corporation (Code 4912): Consolidated Financial Statements
for the First Half Ended June 30, 2019
Six months ended June 30, 2019
(Millions of yen)

Balance at January 1, 2019
Cumulative effect ofchanges in accounting
principles
Balance at January 1, 2019(adjusted)
Profit for the period
Other comprehensive
incomeTotal comprehensive
income for the period
Dividends
Acquisition of treasury
stock
Disposal of treasury
stock
Share-based
payments
Transfer from othercomponents of equity
to retained earnings
Total transactions withownersBalance at June 30, 2019

Balance at January 1, 2019
Cumulative effect ofchanges in accounting
principles
Balance at January 1, 2019(adjusted)
Profit for the period
Other comprehensive
incomeTotal comprehensive
income for the period
Dividends
Acquisition of treasury
stock
Disposal of treasury
stock
Share-based
payments
Transfer from othercomponents of equity
to retained earnings
Total transactions withownersBalance at June 30, 2019

Equity attributable to owners of the parent
Other components of equity
Net gain (loss)
on revaluation offinancial assets
Remeasurements
Share capital
Capital surplus Treasury stock
Subscription measured at fairof defined benefit
rights to shares value through
plans
other
comprehensive
income34,43334,715(4,766)165
10,800―34,433―34,715(4,766)――165

10,800

―

(30)

813

(30)

813

(407)

(813)

―

(1)
(7)

29

(21)

41

―

33

28

(21)

(407)

(813)

34,43334,748(4,738)143

10,362―Equity attributable to owners of the parent
Other components of equity
Net gain (loss)
Exchange
Retainedon derivatives
differences on
earnings
Total
designated astranslation of
cash flow
foreignhedgesoperations(8)(36)
10,920115,806

Non-controllinginterests

Total

Total equity

191,108

13,163204,271

—

(94)

(94)

(0)

(94)

(8)

(36)

10,920115,711

191,014

13,162

204,177

―

8,689

6

(598)

190

8,689
190

1,134
112

9,824
303

6

(598)

190

8,689

8,879

1,247

10,127―(2,906)(2,906)(2,958)(5,865)

―

―

(2)

(635)

14

―

(1)

(1)

(21)

0

0

―

41

41
―

(1,220)1,220―(1,242)(1,686)(2,867)(2,958)(5,825)

9,867

122,715

197,027

11,451

208,478

Lion Corporation (Code 4912): Consolidated Financial Statements
for the First Half Ended June 30, 2019(4) Notes to Condensed Consolidated Financial Statements
Notes relating to the assumption of a going concern
Not applicable.
Changes in Accounting Principles
The Group applies IFRS 16 “Leases” (published June 1, 2016; hereinafter “IFRS 16”) from the first quarter of the fiscal
year under review. Upon applying IFRS 16, Lion has recognized the cumulative effect of the standard’s application at
the date of the initial application (January 1, 2019) as a transitional measure permitted under the standard.
In accordance with the application of IFRS 16, upon the initiation of a contract, the Company determines
whether the contract is or contains a lease. If a contract conveys the right to control the use of an identified asset for aperiod of time in exchange for consideration, then the contract is or contains a lease.
(i)

Leases as lessee

At the commencement of a lease, a right-of-use asset and a lease liability are recognized. The initial value of theright-of-use asset is measured as the initial measured value of the lease liability at the commencement dateadjusted for initial direct costs, etc., plus the cost of any restoration obligation, etc., required under the lease.
Subsequently, a cost model is applied, in which the value of the asset is measured as the acquisition cost lessaccumulated depreciation and accumulated impairment. The right-of-use asset is depreciated from thecommencement of the lease over the shorter of the useful life of the asset and the lease term, unless it isreasonably certain that the Group will acquire the title to the lease assets at the end of the lease term. The leaseterm is determined as the lease’s non-cancellable period, including any optional period for which the Group isreasonably certain to exercise an option to extend the lease or not exercise an option to terminate the lease.
The lease liability is measured at the present value of remaining lease payments at the date of the lease’scommencement discounted using the lessee’s incremental borrowing rate at the date of the lease’s commencement.
Subsequently, the book value of the lease liability is adjusted to reflect the rate of interest on the lease liability andlease payments made. When a lease is modified, the lease liability is remeasured. Furthermore, for leasemodifications that are not treated as a separate lease and that decrease the scope of the lease, the book value ofthe right-of-use asset is decreased to reflect the partial or full termination of the lease, and any gain or loss
resulting from such termination is recognized in profit or loss. For other lease modifications, an adjustment to theright-of-use asset is made corresponding to the changes in the lease terms.
Lease payments for short-term leases and leases of low-value assets are recognized as expenses using thestraight-line method over the term of the lease.
(ii)

Leases as lessor

Leases are classified as either operating leases or finance leases. If the lease transfers substantially all the risks
and rewards of the ownership of the underlying asset, it is classified as a finance lease; otherwise, it is classified as
an operating lease. The classification of a lease as either a finance lease or operating lease is made based on theactual content of the transaction, not on the form of the lease agreement.
(a) Finance leases
At the commencement of the lease, assets held under finance leases are recorded as receivables in an
amount equal to the net uncollected investment in the lease.
(b) Subleases
Subleases are classified by the intermediate lessor with respect to the right-to-use asset that arises from thehead lease.

15

Lion Corporation (Code 4912): Consolidated Financial Statements
for the First Half Ended June 30, 2019
Due to the transition to IFRS 16, the Group recognized an additional ¥5,194 million in right-of-use assets, ¥111 million
in other financial assets (current assets), ¥473 million in other current assets, ¥679 million in other non-current assets,¥42 million in deferred tax assets, and ¥6,595 million in lease liabilities, as well as decreases of ¥94 million in retained
earnings and ¥0 million in equity attributable to non-controlling interests. Due to the cost of restoration obligations, etc.,
required under leases, ¥120 million in property, plant and equipment has been reclassified as right-of-use assets. The
lessee’s weighted average incremental borrowing rate applied to lease liabilities recognized at the date of initial
application of IFRS 16 is 1.1%.
The book values of right-of-use assets and lease liabilities as of the date of initial application for leases classified as
finance leases under IAS 17 “Leases” (hereinafter “IAS 17”) are the book values of the lease assets and leaseliabilities immediately before that date measured applying IAS 17. As such, ¥765 million in property, plant andequipment has been reclassified as right-of-use assets, and ¥533 million in other financial liabilities has been
reclassified as lease liabilities.
Operating lease commitments disclosed applying IAS 17 at the end of the previous consolidated fiscal year
discounted using the incremental borrowing rate at the date of initial application is reconciled with the lease liabilities
recognized in the Consolidated Statement of Financial Position at the date of initial application as follows.
(Millions of yen)
Operating lease commitments disclosed applying IAS 17 at the end of the previous
consolidated fiscal year discounted using the incremental borrowing rate at the date of initial
application(a) Short-term leases and leases of low-value assets(b) Finance lease obligations recognized as of the end of the previous consolidated fiscal
year(c) Operating lease obligations that are not non-cancelable recognized on the Consolidated
Statement of Financial Position as of the date of initial application
Lease liabilities recognized on the Consolidated Statement of Financial Position as of thedate of initial application

2,473
(6)
533
4,128
7,128

The method of classifying subleases for leases in which the Group is the lessor has been changed to classification
with respect to the right-to-use asset that arises from the head lease.

16

Lion Corporation (Code 4912): Consolidated Financial Statements
for the First Half Ended June 30, 2019
Segment Information
1) Overview of reportable segments
The Group’s reportable segments are component units of the Company for which separate financial information isavailable and that are subject to regular review by the Board of Directors for the purpose of making decisions
regarding the allocation of management resources and evaluating business performance.
The Group’s business divisions are organized by product category; each business division formulates acomprehensive strategy and carries out business activities for the products it handles. Affiliated companies in Japan
undertake business activities pertinent to the characteristics of their respective products and services.
Affiliated companies located overseas are independent management units that conduct business activities pertinent
to the characteristics of the regions in which they operate.
Accordingly, the Group comprises three reportable segments divided by product and service type and by region,
which are, in turn, based on business divisions and companies; namely, the reportable segments are Consumer
Products Business, Industrial Products Business and Overseas Business.
The Group’s reportable segments are as follows.
A. Consumer Products Business
The Consumer Products Business engages in the manufacture and sale of commodities, over-the-counter drugs
and foods with function claims, primarily in Japan.
Main products: Toothpastes, toothbrushes, hand soaps, antipyretic analgesics, eye drops, health tonic drinks,
laundry detergents, dishwashing detergents, fabric softeners, household cleaners, bleaches and pet supplies
B. Industrial Products Business
The Industrial Products Business engages primarily in the manufacture and sale of chemical raw materials,
industrial products and other items in Japan and overseas.
Main products: Activator, electro-conductive carbon and detergents for institutional use
C. Overseas Business
The Overseas Business engages mainly in the manufacture and sale of commodities by affiliated overseas
businesses.
D. Other Business
Lion subsidiaries located in Japan primarily undertake operations related to Group businesses.
Main products and services: Construction contracting, real estate management, distribution/storage andtemporary staffing

17

Lion Corporation (Code 4912): Consolidated Financial Statements
for the First Half Ended June 30, 2019(2) Net Sales and Performance of Reportable Segments
Six months ended June 30, 2018
(Millions of yen)
Reportable Segment
Other

Total

Adjustment2 Consolidated3

Consumer
Products
Business

Industrial
Products
Business

Overseas
Business

102,692

16,16046,990

2,674

168,517(32)

168,484

8,134

12,153

5,212

12,75938,258(38,258)—

110,826

28,31352,202

15,433

206,776(38,291)

168,484

8,046

1,352

2,892

639

12,930(378)

12,552

Net sales(1) External(2) Intersegment1
Total
Core operating
incomeOther income

6,059

Other expenses(738)

Operating profit

17,872Finance income

407

Finance costs
Share of profit ofinvestments
accounted for using
the equity method
Profit before tax(92)

Notes:

344
18,532

1. Includes intra-segment transactions within the reportable segments.
2. A negative ¥378 million adjustment of core operating income mainly comprises intersegment eliminations
and corporate expenses not allocated to any reportable segment.
3. Core operating income is reconciled with gross profit as follows.
(Millions of yen)

Gross profit
Selling, general and administrative expenses
Core operating income

82,674(70,121)
12,552

Core operating income is calculated as gross profit less selling, general and administrative expenses, andis the basis on which the Board of Directors evaluates the performance of each segment.

18

Lion Corporation (Code 4912): Consolidated Financial Statements
for the First Half Ended June 30, 2019
Six months ended June 30, 2019
(Millions of yen)
Reportable Segment
Other

Total

Adjustment2 Consolidated3

Consumer
Products
Business

Industrial
Products
Business

Overseas
Business

102,893

16,027

46,714

1,650

167,28548

167,334

7,379

10,981

4,760

13,92437,046(37,046)—

110,273

27,00851,474

15,574204,331(36,997)

167,334

7,755

779

3,669

570

12,775(316)

12,459Net sales(1) External(2) Intersegment1
Total
Core operating
incomeOther income

1,011

Other expenses(581)

Operating profit

12,889Finance income

426

Finance costs
Share of profit ofinvestments
accounted for using
the equity method
Profit before tax(114)

Notes:

437

13,638

1. Includes intra-segment transactions within the reportable segments.
2. A negative ¥316 million adjustment of core operating income mainly comprises intersegment eliminations
and corporate expenses not allocated to any reportable segment.
3. Core operating income is reconciled with gross profit as follows.
(Millions of yen)

Gross profit
Selling, general and administrative expenses
Core operating income

82,518(70,059)
12,459Core operating income is calculated as gross profit less selling, general and administrative expenses, andis the basis on which the Board of Directors evaluates the performance of each segment.

19