Summary of Consolidated Financial Statements for the First Quarter Ended
March 31, 2020 [IFRS]May 8, 2020
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: May 14, 2020
Start date of payment of dividend: —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 Quarter Ended March 31, 2020
(January 1, 2020 – March 31, 2020)(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%

Three months ended
March 31, 2020

82,555

4.6

18,733214.7

19,076

212.5

Three months ended
March 31, 201978,937

(0.5)

5,953

(46.9)

6,103(46.7)

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%%

Three months ended
14,018249.8
13,559
294.0
5,760
(2.5)
March 31, 2020Three months ended
4,007(65.8)
3,441(62.8)
5,909(37.5)March 31, 2019
Note: Core operating income for the three months ended March 31, 2020 was ¥9,093 million (up63.5% year on year). Core operating income for the three months ended March 31, 2019 was¥5,560 million (down 6.8% 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

Three months ended
March 31, 2020Three months ended
March 31, 2019

46.64

46.58

11.84

11.82

(2) Consolidated Financial Position

Three months
ended
March 31, 2020
Year
ended
December 31,
2019

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

371,504

223,784

211,54856.9

380,701

221,201

208,42154.7

2. Dividends
Cash dividends per share (Yen)

Fiscal 2019

First
Quarter—

Fiscal 2020—

SecondQuarter
10.00

Third
Quarter
—

11.00

—

Fiscal 2020 (forecast)Year-End

Total

11.00

21.00

11.00

22.00

Note: Changes from the most recently published forecast of dividends: No
3. Forecast of Consolidated Financial Results for the Fiscal Year Ending December 31, 2020
(January 1, 2020 – December 31, 2020)(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

First half 2020
168,000
0.4
21,50066.8
15,000Fiscal 2020
355,000
2.2
39,50032.4
27,000Notes: 1. Core operating income forecast: First half 2020:¥12,500 million
Fiscal 2020:¥30,500 million
2. Changes from the most recently published financial results forecast: No

%

72.6
31.3

Basic
earnings
per share
Yen

51.60
92.88

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 March 31, 2020:
299,115,346 shares
As of December 31, 2019:299,115,346 sharesb. Number of treasury stocks on balance sheet date:
As of March 31, 2020:
8,405,859 shares
As of December 31, 2019:
8,405,440 sharesc. Average shares outstanding over period (cumulative; consolidated)
Three months ended March 31, 2020:
290,709,635 shares
Three months ended March 31, 2019:290,660,930 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 Quarter of the Current Fiscal Year
(3) Forecast of Consolidated Financial Results on page 8.

Lion Corporation (Code 4912): Consolidated Financial Statements
for the First Quarter Ended March 31, 2020

Contents
1. Qualitative Information Concerning the Results of Operations for the First Quarter of theCurrent Fiscal Year --------------------------------------------------------------------------------------------------- 2(1) Qualitative Information Concerning Consolidated Performance -------------------------------------- 2(2) Financial Status ---------------------------------------------------------------------------------------------------- 8(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
Segment Information --------------------------------------------------------------------------------------------------------------------- 15

1

Lion Corporation (Code 4912): Consolidated Financial Statements
for the First Quarter Ended March 31, 2020

1. Qualitative Information Concerning the Results of Operations for the First Quarter of theCurrent Fiscal Year
(1) Qualitative Information Concerning Consolidated Performance
Consolidated results for the first quarter of fiscal 2020 (January 1, 2020–March 31, 2020) are as follows.
Net sales amounted to ¥82,555 million, a year-on-year increase of 4.6% (or 5.6% at constant currency
excluding exchange rate fluctuations). Core operating income came to ¥9,093 million, up 63.5%
compared with the same period of the previous fiscal year, and operating profit was ¥18,733 million, up
214.7% year on year. Profit for the period attributable to owners of the parent was ¥13,559 million, up
294.0% compared with the same period of the previous 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 BusinessDomains through New Value Creation,” “Accelerate Growth in Overseas Businesses through
Glocalization,” “Reinforce Our Management Base through Business Structure Reform” and “Create
Dynamism to Foster Innovative Change.”
In the first quarter of fiscal 2020, in its domestic operations, Lion introduced such new products as
toothpastes, hand soaps, antiperspirants and deodorants, dishwashing detergents and dermatologic
agents and worked to cultivate markets for these products through efficient marketing.
In its overseas operations, in addition to efforts related to the home care field, which includes suchproducts as laundry detergents, the Group sought to expand its business, focusing mainly on the
personal care field, including oral care and beauty care products.
In the first quarter of fiscal 2020, the spread of the novel corona virus impacted Lion’s domestic andoverseas businesses. To meet its social responsibility, the Lion Group strived to maintain its productsupply while making every effort to prevent the spread of the virus and ensure the safety of its
employees.
In addition, as announced on February 28, 2020, effective on that date Lion sold the land on which its
head office is located.

2

Lion Corporation (Code 4912): Consolidated Financial Statements
for the First Quarter Ended March 31, 2020

Consolidated Results(Millions of yen)Three months
ended March 31,
2020

Three months
ended March 31,
2019

Ratio tonet sales

Net sales

82,555

Core operating income

9,093

11.0%

5,560

Operating profit

18,73322.7%

13,559

16.4%

Ratio tonet sales

Chang
e (%)

Change78,937

3,618

4.6%

7.0%

3,532

63.5%

5,953

7.5%

(12,780)214.7%

3,441

4.4%

(10,117)294.0%

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.

Results by Business(Millions of yen)
Net sales

Segment profit (core operating income)Threemonthsended
March 31,
2020

Three
monthsended
March 31,2019

Change(%)

Threemonthsended
March 31,
2020

Three
monthsended
March 31,2019

ChangeChangeChange(%)

Consumer Products

55,88650,189

5,696

11.3%

7,233

3,617

3,615

99.9%

Industrial Products

13,57913,080

498

3.8%

661

382

278

72.9%

Overseas

24,73525,718(982)(3.8%)

1,571

1,844

(273)

(14.8%)

Other

5,920

7,075

(1,155)(16.3%)

422

246

176

71.7%

Subtotal

100,120

96,064

4,056

4.2%

9,888

6,091

3,797

62.3%

Adjustment(17,565)(17,127)

(438)

―

(795)

(531)

(264)

－

Total

82,55578,937

3,618

4.6%

9,093

5,560

3,532

63.5%

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 increased 11.3% compared with the same period of the previous fiscal year.
Segment profit increased 99.9%.
(Millions of yen)Three months
ended March 31,
2020
Net sales

55,886

Segment profit

7,233

Three months
ended March 31,
2019

Ratio tonet sales

Ratio tonet sales

50,189
12.9%

3,617

7.2%

ChangeChange
(%)

5,696

11.3%

3,615

99.9%

Note: Net sales include internal sales within and among segments, which amounted to ¥3,656 million in the firstquarter of fiscal 2020 and ¥3,353 million in the first quarter of fiscal 2019.

3

Lion Corporation (Code 4912): Consolidated Financial Statements
for the First Quarter Ended March 31, 2020

Net Sales by Product Segment(Millions of yen)Three months
ended March 31,
2020

Three months
ended March 31,
2019

Oral Care Products

14,927

13,506

1,421

10.5%

Beauty Care Products

7,703

5,224

2,479

47.5%

Fabric Care Products

13,505

13,046459

3.5%

Living Care Products

5,149

4,169

980

23.5%

Pharmaceutical Products

5,468

5,308

159

3.0%

Other Products

9,131

8,935

196

2.2%

ChangeChange(%)

Oral Care Products
In toothpastes, SYSTEMA Haguki (the Gums) Plus Premium Toothpaste, released in 2019, contributed
to sales, and sales of the SYSTEMA EX Toothpaste series, including the newly released SYSTEMA EX
W Toothpaste, which effectively cleans away dullness due to staining, were strong. Overall sales
increased significantly year on year.
In toothbrushes, CLINICA Advantage NEXT STAGE Toothbrush and NONIO Toothbrush, released in
2019, contributed to sales, and sales of the SYSTEMA Haguki (the Gums) Plus Toothbrush were strong.
Overall sales increased substantially from the same period of the previous fiscal year.
In dental rinses, sales of NONIO Mouthwash and SYSTEMA Haguki (the Gums) Plus Dental Rinse
were favorable. Overall sales substantially increased year on year.
Beauty Care Products
In hand soaps, sales of KireiKirei Medicated Foaming Hand Soap increased substantially year on year,
and the newly released KireiKirei Medicated Hand Conditioning Soap, which not only effectively
disinfects, but creates a moisture barrier to protect the skin, received favorable consumer reviews.
Overall sales increased substantially year on year.
In body washes, sales of hadakara Body Soap were firm, and overall sales increased year on year.
In antiperspirants and deodorants, new Ban Sweat-Blocking Platinum Roll-On, featuring a new formulawith a high-adhesion ingredient (sodium sulfate) that resists friction and adheres effectively to the skin,received favorable consumer reviews. Overall sales increased significantly year on year.
Fabric Care Products
In fabric softeners, SOFLAN Premium Deodorizer, featuring microscopic deodorizing ingredients thatpenetrate deep into and adsorb on individual clothing fibers, received favorable consumer reviews, andoverall sales were up year on year.
In laundry detergents, super-concentrated liquid laundry detergent TOP SUPER NANOX For Odors,
released in 2019, received favorable consumer reviews, and overall sales were up substantially year on
year.

4

Lion Corporation (Code 4912): Consolidated Financial Statements
for the First Quarter Ended March 31, 2020

Living Care Products
In dishwashing detergents, sales of CHARMY Magica were steady, while sales of CHARMY Crysta fordishwashers were strong. Overall sales increased year on year.
In household cleaners, sales of bath detergent LOOK Plus Bath Cleansing and bathroom fungicide
LOOK Plus Bath Antimold Fogger were favorable. Overall sales increased significantly year on year.
Pharmaceutical Products
In antipyretic analgesics, sales of BUFFERIN A and BUFFERIN PREMIUM were strong, and overallsales rose significantly year on year.
In eye drops, sales of Smile 40 Premium DX and Smile 40 Mediclear DX were strong, and overall sales
were up substantially year on year.
Sales of acne medicines and cooling sheets for feet decreased year on year, reflecting a decrease inoverseas visitors to Japan.
Other Products
In direct-to-consumer sales products, sales of Nice rim essence Lactoferrin decreased year on year,
and overall sales were down year on year.
In pet supplies, sales of Nioi wo Toru Suna (Deodorizing Cat Litter) were steady, and those of oral careproducts were strong. Overall sales were up year on year.

5Lion Corporation (Code 4912): Consolidated Financial Statements
for the First Quarter Ended March 31, 2020

Industrial Products Business
The Industrial Products Business segment includes businesses in the Automotive, Electrical andElectronics, and Detergents for Institutional Use Products fields. These businesses handle productsthat include anti-sticking agents for tires, electro-conductive carbon for secondary batteries, anddetergents for institutional and kitchen use, respectively. Segment net sales increased 3.8% comparedwith the previous fiscal year. Segment profit increased 72.9%.
(Millions of yen)Three months
ended March 31,
2020
Net sales

Three months
ended March 31,
2019

Ratio tonet sales

13,579Segment profit

661

Ratio tonet sales

13,080
4.9%

382

2.9%

Change(%)

Change

498

3.8%

278

72.9%

Note: Net sales include internal sales within and among segments, which amounted to ¥5,925 million in the firstquarter of fiscal 2020 and ¥5,367 million in the first quarter of fiscal 2019.

In the Automotive field, sales of carbon for auto parts decreased year on year, and overall sales
decreased year on year.
In the Electrical and Electronics field, demand for performance materials and electroconductive resinsdecreased, and overall sales were down on year.
In the Detergents for Institutional Use Products field, sales of alcohol sanitizers for kitchens and handsoaps increased substantially year on year. Overall sales increased significantly year on year.
Overseas Business
The Overseas Business segment comprises business operations located in Southeast Asia, including
Thailand and Malaysia, and Northeast Asia, including South Korea and China. Segment net sales
decreased 3.8% year on year (or 0.4% at constant currency excluding exchange rate fluctuations).
Segment profit decreased 14.8% year on year.
(Millions of yen)Three months
ended March 31,
2020
Net sales

24,735

Segment profit

1,571

Three months

Ratio toended March 31,

net sales

2019

Ratio tonet sales

25,718
6.4%

1,844

7.2%

ChangeChange(%)(982)(3.8%)(273)(14.8%)

Note: Net sales include internal sales within and among segments, which amounted to ¥2,588 million in the firstquarter of fiscal 2020 and ¥2,252 million in the first quarter of fiscal 2019.

6

Lion Corporation (Code 4912): Consolidated Financial Statements
for the First Quarter Ended March 31, 2020

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

Three months ended

March 31, 2020

March 31, 2019

Change(%)

ChangeSoutheast Asia

16,515

17,330(814)(4.7%)

Northeast Asia

8,219

8,388

(168)

(2.0%)Net Sales by Region
In Southeast Asia, overall sales were down 4.7% year on year.
In Thailand, sales of laundry detergents were steady. Overall sales after yen conversions were up year
on year.
In Malaysia, sales of laundry detergents were down year on year, reflecting increasingly intensecompetition. Overall sales after yen conversions were down year on year.
In Northeast Asia, overall sales were down 2.0% year on year.
In South Korea, sales of hand soaps increased substantially year on year, but sales of laundry
detergents and dishwashing detergents were down year on year. Overall sales after yen conversions
were down year on year.
In China, sales of SYSTEMA toothbrushes were down year on year, but sales of hand soaps andproducts imported from Japan increased substantially. Overall sales after yen conversions were up
substantially year on year.
Other (Construction Contracting Business, etc.)
Three months
ended March 31,
2020
Net sales
Segment profit

Three months

Ratio toended March 31,

net sales

2019

5,920
422

(Millions of yen)
Ratio tonet sales

7,075
7.1

246

3.5%

ChangeChange(%)(1,155)(16.3%)

176

71.7%

Note: Net sales include internal sales within and among segments, which amounted to ¥5,391 million in the firstquarter of fiscal 2020 and ¥6,227 million in the first quarter of fiscal 2019.

7

Lion Corporation (Code 4912): Consolidated Financial Statements
for the First Quarter Ended March 31, 2020

(2) Financial Status
Status of Consolidated Assets, Liabilities and Equity
Three months ended
March 31, 2020Three months ended
December31, 2019

ChangeTotal assets (millions of yen)

371,504

380,701(9,197)

Total equity (millions of yen)

223,784

221,201

2,582

56.9

54.7

2.2

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

Total assets fell ¥9,197 million compared with the previous consolidated fiscal year-end to ¥371,504
million. This was primarily attributable to a decrease in cash and cash equivalents. Equity increased¥2,582 million to ¥223,784 million. The ratio of equity attributable to owners of the parent to total
assets stood at 56.9%.

(3) Forecast of Consolidated Financial Results
Lion has made no revisions to the consolidated financial results forecasts released on February 28,
2020 for the first half of the fiscal year under review and for the full fiscal year.
Assumptions Underlying the Forecast of Consolidated Financial Results for Fiscal 2020
Lion utilized the following foreign exchange rates in the calculation of the aforementioned forecasts:¥110 = US$1.00¥3.6 = 1.00 baht

8

Lion Corporation (Code 4912): Consolidated Financial Statements
for the First Quarter Ended March 31, 2020

2. Condensed Consolidated Financial Statements and Notes(1) Condensed Consolidated Statement of Financial Position(Millions of yen)
December 31, 2019

March 31, 2020

AssetsCurrent assets
Cash and cash equivalents

110,406

101,088

Trade and other receivables

61,75955,783Inventories

43,55547,502Other financial assets

4,024

6,982

Other current assets

2,750

2,867

Total current assets

222,497214,224

90,90392,348Non-current assets
Property, plant and equipment
Goodwill

182

182

Intangible assets

13,485

13,925Right-of-use assets
Investments accounted for using the equity
methodDeferred tax assets

5,940

5,876

9,165

8,808

2,577

4,994

Retirement benefit assets

9,597

8,277

Other financial assets

25,51721,992Other non-current assets

833

874

Total non-current assets

158,204

157,280

380,701

371,504

Total assets

9Lion Corporation (Code 4912): Consolidated Financial Statements
for the First Quarter Ended March 31, 2020
(Millions of yen)
December 31, 2019

March 31, 2020

Liabilities and equity
Liabilities
Current liabilities
Trade and other payables

116,268

103,672

Borrowings

1,404

1,389

Income tax payables

6,568

5,853

Provisions

1,582

1,630

Lease liabilities

1,495

1,547

Other financial liabilities

739

1,206

Other current liabilities

7,659

5,975

Total current liabilities

135,718

121,276

Borrowings

889

839

Deferred tax liabilities

873

772

12,091

14,854357

353

Lease liabilities

5,510

5,560

Other financial liabilities

2,648

2,645

Other non-current liabilities

1,411

1,418

Non-current liabilities

Retirement benefit liabilities
Provisions

Total non-current liabilities
Total liabilities

23,781

26,443

159,499

147,719

EquityShare capital

34,43334,433

Capital surplus

34,78834,809Treasury stock(4,739)(4,740)

Other components of equity

11,320

6,723

Retained earnings

132,619

140,321Equity attributable to owners of the parent

208,421211,548

Non-controlling interests

12,78012,236

Total equity

221,201

223,784

380,701

371,504

Total liabilities and equity

10Lion Corporation (Code 4912): Consolidated Financial Statements
for the First Quarter Ended March 31, 2020

(2) Condensed Consolidated Statement of Income and Statement of Comprehensive Income
Condensed Consolidated Statement of Income
Three months ended March 31, 2019 and 2020Three months ended
March 31, 201978,937(40,075)
38,861(33,300)
789
(397)
5,953
77
(40)

(Millions of yen)Three months ended
March 31, 2020
82,555(40,603)
41,951(32,858)
11,116(1,476)
18,733
82
(37)

113

298

6,103
(2,095)
4,007

19,076(5,057)
14,018

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

3,441
566
4,007

13,559459
14,018

Earnings per share
Basic (Yen)
Diluted (Yen)

11.84
11.82

46.64
46.58

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 Quarter Ended March 31, 2020
Condensed Consolidated Statement of Comprehensive Income
Three months ended March 31, 2019 and 2020

Profit for the period
Other comprehensive income
Items that will not be reclassified as profit orloss
Net gain (loss) on revaluation of financial
assets measured at fair value through othercomprehensive 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 designated as
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
Comprehensive income for the period

Three months ended
March 31, 2019

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

12

4,007

(Millions of yen)Three months ended
March 31, 2020
14,018164(2,487)1,430(2,659)

(30)

(0)

1,564

(5,146)

9

(0)

291

(2,499)

35

(612)

336

(3,111)

1,901
5,909

(8,258)
5,760

5,139
769
5,909

6,304
(544)
5,760

Lion Corporation (Code 4912): Consolidated Financial Statements
for the First Quarter Ended March 31, 2020

(3) Condensed Consolidated Statement of Changes in Equity
Three months ended March 31, 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 March 31, 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 March 31, 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

―

146

1,430

146

1,430

―

(0)
5

4

21
(1,430)
―

26

3

―

―

(1,430)34,43334,742(4,763)

165

10,946―Equity attributable to owners of the parent
Other components of equity
Net gain (loss)
Exchange
Retainedon derivatives
differences on
earnings
Total
designated astranslation offoreigncash flow
hedgesoperations(8)(36)
10,920115,806(8)(36)

Non-controllinginterests

Total

Total equity

191,108

13,163204,271

—

(94)

(94)

(0)

(94)

10,920115,711

191,014

13,162

204,177

―

3,441

3,441

566

4,007

1,698

203

1,901

9

111

1,698

9

111

1,698

3,441

5,139

769

5,909

―

(2,906)(2,906)(1,963)(4,870)

―

(0)

(0)

―

9

9

―

21

21

―

―

(1,430)

1,430

―

―

(1,430)(1,475)(2,876)(1,963)(4,840)074

11,187

117,677

193,278

11,968205,246

13

Lion Corporation (Code 4912): Consolidated Financial Statements
for the First Quarter Ended March 31, 2020Three months ended March 31, 2020
(Millions of yen)

Balance at January 1, 2020
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 March 31, 2020

Balance at January 1, 2020
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 March 31, 2020

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
income34,43334,788(4,739)143
11,289
―

―

―

―

―

(2,433)(2,659)(2,433)(2,659)

(0)

21
2,659
―

21

(0)

―

―

2,659

34,43334,809(4,740)

143

8,856

―

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―(113)
11,320132,619―
13,559Non-controllinginterests

Total

Total equity

208,421
13,55912,780459

221,201
14,018(7,255)(1,003)(8,258)(0)(2,162)(7,255)(0)(2,162)(7,255)

13,559

6,304

(544)

5,760

―

(3,197)(3,197)―(3,197)

―

(0)

(0)

―

―

―

―

21

21
―

2,659

(2,659)

―

―

―

2,659

(5,856)(3,177)―(3,177)(0)(2,275)

6,723

140,321211,548

12,236

223,784

14

Lion Corporation (Code 4912): Consolidated Financial Statements
for the First Quarter Ended March 31, 2020
(4) Notes to Condensed Consolidated Financial Statements
Notes relating to the assumption of a going concern
Not applicable.
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 Company’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 and temporary staffing

15

Lion Corporation (Code 4912): Consolidated Financial Statements
for the First Quarter Ended March 31, 2020
(2) Net Sales and Performance of Reportable Segments
Three months ended March 31, 2019
(Millions of yen)
Reportable Segment
Other

Total

Adjustment2 Consolidated3

Consumer
Products
Business

Industrial
Products
Business

Overseas
Business(1) External

46,835

7,713

23,465848

78,86373

78,937(2) Intersegment1

3,353

5,367

2,252

6,227

17,200(17,200)―

Total
Core operating
incomeOther income

50,18913,08025,718

7,075

96,064(17,127)

78,937

3,617

382

1,844

246

6,091

(531)

5,560

Net sales

789

Other expenses(397)

Operating profit

5,953

Finance income

77

Finance costs
Share of profit ofinvestments
accounted for using
the equity method
Profit before tax(40)

Notes:

113
6,103

1. Includes intra-segment transactions within the reportable segments.
2. A negative ¥531 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.
Gross profit
Selling, general and administrative expenses
Core operating income

38,861(33,300)
5,560

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.

16

Lion Corporation (Code 4912): Consolidated Financial Statements
for the First Quarter Ended March 31, 2020Three months ended March 31, 2020
(Millions of yen)
Reportable Segment
Other

Total

Adjustment2 Consolidated3

Consumer
Products
Business

Industrial
Products
Business

Overseas
Business(1) External

52,2297,653

22,146528

82,558(3)

82,555(2) Intersegment1

3,656

5,925

2,588

5,391

17,561(17,561)─

TotalCore operating
incomeOther income

55,886

13,57924,7355,920

100,120(17,565)

82,555

7,233

661

1,571

422

9,888

(795)

9,093

Net sales

11,116

Other expenses(1,476)

Operating profit

18,733Finance income

82

Finance costs
Share of profit ofinvestments
accounted for using
the equity method
Profit before tax(37)

Notes:

298
19,076

1. Includes intra-segment transactions within the reportable segments.
2. A negative ¥795 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.
Gross profit
Selling, general and administrative expenses
Core operating income

41,951(32,858)
9,093

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.

17