Summary of Consolidated Financial Statements for the Nine Months Ended
September 30, 2020 [IFRS]
November 5, 2020
Company name: Lion Corporation
Listed stock exchanges: Tokyo Stock Exchange
Code: 4912
URL: http://www.lion.co.jp/ (English site: https://www.lion.co.jp/en/)
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: November 12, 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 Nine Months Ended September 30, 2020
(January 1, 2020 – September 30, 2020)(1) Consolidated Results (cumulative)(Percentage figures denote year-on-year change)

Net sales
Millions of yen

Nine months ended
September 30, 2020
Nine months ended
September 30, 2019

Operating profit%

Millions of yen%

Profit before tax
Millions of yen%

262,049

0.0

38,24460.5

39,71059.7

261,962

1.3

23,830(9.1)

24,862(8.8)

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%%

Nine months ended
28,713
53.6
27,23760.7
24,84832.7
September 30, 2020
Nine months ended
18,690(20.7)
16,950(15.0)
18,723(16.8)
September 30, 2019
Note: Core operating income for the nine months ended September 30, 2020 was ¥29,872 million (up26.7% year on year). Core operating income for the nine months ended September 30, 2019was ¥23,583 million (up 12.8% year on year).
Core operating income is an earnings indicator the Company uses to measure regular businessperformance and is calculated by subtracting selling, general and administrative expenses fromgross profit.

Basic earnings per share

Diluted earnings per share

Yen

Yen

Nine months ended
September 30, 2020
Nine months ended
September 30, 2019

93.69

93.57

58.31

58.24

(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

404,429

238,819

226,51356.0

380,701

221,201

208,42154.7

Nine months
ended
September
30, 2020
Year
ended
December 31,
2019
2. Dividends

Cash dividends per share (Yen)

Fiscal 2019

First
Quarter—

SecondQuarter
10.00

Third
Quarter—

Fiscal 2020

—

11.00

—

Fiscal 2020 (forecast)Year-End

Total

11.00

21.00

12.00

23.00

Note: Changes from the most recently published forecast of dividends: Yes
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

Fiscal
355,000
2.2
41,50039.1
27,0002020
Notes: 1. Core operating income forecast: Fiscal 2020: ¥33,000 million
2. Changes from the most recently published financial results forecast: Yes

Basicearnings
per share

%

Yen

31.3

92.88

Notes(1) Significant Change in Scope of Consolidation during Period: No(2) Changes in accounting principles, procedures and presentation methods in connection withthe 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 September 30, 2020:
299,115,346 shares
As of December 31, 2019:299,115,346 sharesb. Number of treasury stocks on balance sheet date:
As of September 30, 2020:
8,406,441 shares
As of December 31, 2019:
8,405,440 sharesc. Average shares outstanding over period (cumulative; consolidated)
Nine months ended September 30, 2020:
290,709,288 shares
Nine months ended September 30, 2019:290,693,899 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 Nine Months of the Current Fiscal
Year (3) Forecast of Consolidated Financial Results on page 8.

Lion Corporation (Code 4912): Consolidated Financial Statements
for the Nine Months Ended September 30, 2020

Contents
1. Qualitative Information Concerning the Results of Operations for the First Nine Months of theCurrent Fiscal Year ---------------------------------------------------------------------------------------------------- 2(1) 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
Changes in Accounting Principles ---------------------------------------------------------------------------------------------------- 15
Segment Information --------------------------------------------------------------------------------------------------------------------- 16

1

Lion Corporation (Code 4912): Consolidated Financial Statements
for the Nine Months Ended September 30, 2020

1. Qualitative Information Concerning the Results of Operations for the First Nine Months of
the Current Fiscal Year
(1) Consolidated Performance
Consolidated results for the first nine months of fiscal 2020 (January 1, 2020–September 30, 2020) are
as follows. Net sales amounted to ¥262,049 million, a year-on-year increase of 0.0% (or 1.0% at constantcurrency excluding exchange rate fluctuations). Core operating income came to ¥29,872 million, up
26.7% compared with the same period of the previous fiscal year, and operating profit was ¥38,244
million, up 60.5% year on year. Profit for the period attributable to owners of parent totaled ¥27,237
million, up 60.7% 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 nine months of fiscal 2020, the spread of the novel coronavirus 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 its domestic operations, Lion introduced new, high-value-added products in its mainstay brands andworked to cultivate markets for these products through efficient marketing initiatives. In its overseas
operations, in addition to efforts to increase profitability in the home care field, which includes suchproducts as laundry detergents, the Group sought to expand its business in the personal care field, which
includes oral care and beauty care products.
In addition, as announced on February 28, 2020, effective on that date Lion sold the land on which its
head office is located.

Consolidated Results(Millions of yen)
Nine months ended
September 30, 2020

Ratio tonet sales

Nine months ended
September 30, 2019

Net sales

262,049

Core operating income

29,872

11.4%

23,583Operating profit

38,244

14.6%

27,237

10.4%

Ratio tonet sales

261,962

ChangeChange
(%)

86

0.0%

9.0%

6,288

26.7%

23,8309.1%

14,41460.5%

16,950

6.5%

10,287

60.7%

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

2

Lion Corporation (Code 4912): Consolidated Financial Statements
for the Nine Months Ended September 30, 2020

Results by Business(Millions of yen)
Net sales

Nine months
ended
September
30, 2020

Nine months
ended
September
30, 2019

179,971

Consumer
Products
Industrial
Products
Overseas

Segment profit (core operating income)ChangeChange(%)

Nine months
ended
September
30, 2020

Nine months
ended
September
30, 2019

ChangeChange(%)

176,046

3,924

2.2%

22,006

15,968

6,037

37.8%

40,20840,959(750)(1.8%)

1,431

1,177

253

21.6%

76,71577,506(791)(1.0%)

5,545

5,636

(91)

(1.6%)

Other

24,437

24,891(454)(1.8%)

1,491

949

541

57.0%

Subtotal

321,332

319,404

1,928

0.6%

30,47323,732

6,741

28.4%

Adjustment(59,283)(57,441)(1,841)

—

(601)

(148)

(453)

—

Total

262,049

261,962

86

0.0%

29,872

23,583

6,288

26.7%

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 2.2% compared with the same period of the previous fiscal year. Segment
profit increased 37.8%.

(Millions of yen)
Nine months ended
September 30,
2020

Net sales

Ratio to net
sales

Nine months ended
September 30, 2019179,971

Ratio to net
sales

Change176,046

Change (%)

3,924

2.2%

Segment profit
22,00612.2%
15,968
9.1%
6,037
37.8%
Note: Net sales include internal sales within and among segments, which amounted to ¥11,587 million
in the first nine months of fiscal 2020 and ¥11,458 million in the first nine months of fiscal 2019.

Net Sales by Product Segment(Millions of yen)
Nine months ended
September 30, 2020

Nine months ended
September 30, 2019

Oral Care Products

47,53547,558(23)(0.0%)

Beauty Care Products

24,43017,218

7,211

41.9%

Fabric Care Products

43,17846,355(3,177)(6.9%)

Living Care Products

17,383

14,565

2,817

19.3%

Pharmaceutical Products

17,831

19,727(1,895)(9.6%)

Other Products

29,612

30,620(1,007)(3.3%)

3

ChangeChange(%)

Lion Corporation (Code 4912): Consolidated Financial Statements
for the Nine Months Ended September 30, 2020

Oral Care Products
In toothpastes, SYSTEMA Haguki (the Gums) Plus Premium Toothpaste, released in 2019, received
favorable consumer reviews, 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 firm.
Overall sales increased year on year.
In toothbrushes, NONIO Toothbrush, released in 2019, contributed to sales, but sales of the Between
toothbrush and SYSTEMA Toothbrush fell year on year. Overall sales decreased from the same periodof the previous fiscal year.
In dental rinses, sales of NONIO Mouthwash were favorable. Overall sales 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, but sales of Ban Sweat-Blocking Foot Gel fell year on year.
Overall sales decreased year on year.
Fabric Care Products
In fabric softeners, sales of mainstay SOFLAN Premium Deodorizer and SOFLAN Aroma Rich fell year
on year due to intensifying competition. Overall sales were down year on year.
In laundry detergents, highly concentrated liquid laundry detergent TOP SUPER NANOX For Odors,
released in 2019, received favorable consumer reviews, but sales of liquid laundry detergent TOP Clear
Liquid fell year on year. Overall sales decreased year on year.
Living Care Products
In dishwashing detergents, sales of CHARMY Magica and CHARMY Crysta for dishwashers were strong.
Overall sales increased substantially year on year.
In household cleaners, sales of bath detergent LOOK Plus Bath Cleansing, which saw the addition of anew product formulated with silver ions, and those of bathroom fungicide LOOK Plus Bath Antimold
Fogger were favorable. Overall sales increased significantly year on year.

4Lion Corporation (Code 4912): Consolidated Financial Statements
for the Nine Months Ended September 30, 2020

Pharmaceutical Products
In antipyretic analgesics, sales of BUFFERIN PREMIUM were firm, and overall sales rose year on year.
In eye drops, sales of Smile 40 Premium DX were strong, and those of Smile 40 Mediclear DX were firm.
Overall sales were up year on year.
In dermatologic agents, Lion released the new Method series, which makes it easy for itchiness sufferers
to choose the right product for their specific symptoms and area affected, and overall sales increased
significantly 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 from the same
period of the previous year, and overall sales were down year on year.
In pet supplies, sales of Nioi wo Toru Suna (Deodorizing Cat Litter) edged down year on year, but salesof oral care products were firm. Overall sales were up year on year.

5Lion Corporation (Code 4912): Consolidated Financial Statements
for the Nine Months Ended September 30, 2020

Industrial Products Business
The Industrial Products Business segment includes the Automotive, Electrical and Electronics, andDetergents for Institutional Use Products fields. These businesses handle products that include antisticking agents for tires, electro-conductive carbon for secondary batteries, and detergents for
institutional and kitchen use, respectively. Segment net sales decreased 1.8% compared with theprevious fiscal year. Segment profit increased 21.6%.

(Millions of yen)
Nine months ended
September 30,
2020

Net sales

40,208Segment profit

1,431

Ratio toNine months ended

Ratio to net

net sales

September 30, 2019

sales

Change40,959
3.6%

1,177

2.9%

Change (%)(750)(1.8%)

253

21.6%

Note: Net sales include internal sales within and among segments, which amounted to ¥17,386 million
in the first nine months of fiscal 2020 and ¥16,605 million in the first nine months of fiscal 2019.

In the Automotive field, sales of anti-sticking agents for tires and 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, but sales of dishwashing detergents for dishwashers were
down year on year, and overall sales edged down 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 1.0% year on year (or increased 2.2% at constant currency excluding exchange rate
fluctuations). Segment profit decreased 1.6% year on year.

(Millions of yen)
Nine months ended
September 30, 2020

Net sales

Ratio to net
sales

Nine months ended
September 30, 201976,715

Ratio to net
sales

Change77,506(791)

Change (%)(1.0%)

Segment profit
5,545
7.2%
5,636
7.3%
(91)
(1.6%)
Note: Net sales include internal sales within and among segments, which amounted to ¥8,040 million in
the first nine months of fiscal 2020 and ¥6,987 million in the first nine months of fiscal 2019.

Net Sales by Region(Millions of yen)
Nine months ended
September 30, 2020

Nine months ended
September 30, 2019

ChangeChange(%)

Southeast Asia

49,71052,498(2,788)(5.3%)

Northeast Asia

27,00425,008

1,996

8.0%

6

Lion Corporation (Code 4912): Consolidated Financial Statements
for the Nine Months Ended September 30, 2020

Net Sales by Region
In Southeast Asia, overall sales were down 5.3% year on year.
In Thailand, sales of hand soaps were strong, but sales of laundry detergents decreased year on year.
Overall sales after yen conversions were down year on year.
In Malaysia, sales of laundry detergents were down year on year, reflecting market contraction. Overallsales after yen conversions were down year on year.
In Northeast Asia, overall sales were up 8.0% year on year.
In South Korea, sales of hand soaps increased substantially year on year, but sales of laundry detergentsand dishwashing detergents were down year on year. Overall sales after yen conversions were down
year on year.
In China, sales of SYSTEMA toothbrushes were favorable, and sales of hand soaps and products
imported from Japan increased substantially. Overall sales after yen conversions were up substantiallyyear on year.

(Millions of yen)

Other (Construction Contracting Business, etc.)
Nine months ended
September 30, 2020

Net sales

Ratio to net
sales

24,437

Nine months ended
September 30, 201924,891

Ratio to net
sales

Change(454)

Change(%)(1.8%)

Segment profit
1,491
6.1%
949
3.8%
541
57.0%
Note: Net sales include internal sales within and among segments, which amounted to ¥22,257 million in
the first nine months of fiscal 2020 and ¥22,416 million in the first nine months of fiscal 2019.

7

Lion Corporation (Code 4912): Consolidated Financial Statements
for the Nine Months Ended September 30, 2020

(2) Financial Status
Status of Consolidated Assets, Liabilities and Equity
September 30, 2020

December 31, 2019

ChangeTotal assets (millions of yen)

404,429

380,701

23,727

Total equity (millions of yen)

238,819

221,201

17,617

56.0

54.7

1.3

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

Total assets increased ¥23,727 million compared with the previous consolidated fiscal year-end to¥404,429 million. This was primarily attributable to an increase in property, plant and equipment. Equity
increased ¥17,617 million to ¥238,819 million. The ratio of equity attributable to owners of the parent tototal assets stood at 56.0%.
(3) Forecast of Consolidated Financial Results
As announced on November 5, 2020, the consolidated financial results forecasts for the full fiscal year
have been revised since the release of previous forecasts on July 31, 2020. Dividend forecasts havealso been revised.
For details, please refer to the November 5, 2020 press release “Lion Revises Performance and Dividend
Forecasts.”

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:¥108 = US$1.00¥3.5= 1.00 baht

8

Lion Corporation (Code 4912): Consolidated Financial Statements
for the Nine Months Ended September 30, 2020

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

September 30, 2020

AssetsCurrent assets
Cash and cash equivalents

110,406

105,494

Trade and other receivables

61,75958,142Inventories

43,55549,141Other financial assets

4,024

8,048

Other current assets

2,750

3,284

Total current assets

222,497

224,11190,903

108,270

182

182

Intangible assets

13,48516,000

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

5,940

5,442

9,165

9,965

2,577

4,860

Non-current assets
Property, plant and equipment
Goodwill

Retirement benefit assets

9,597

9,527

Other financial assets

25,517

24,930

Other non-current assets

833

1,138

Total non-current assets

158,204

180,318

380,701

404,429

Total assets

9Lion Corporation (Code 4912): Consolidated Financial Statements
for the Nine Months Ended September 30, 2020

(Millions of yen)
December 31, 2019

September 30, 2020

Liabilities and equity
Liabilities
Current liabilities
Trade and other payables

116,268

116,360

Borrowings

1,404

1,394

Income tax payables

6,568

9,428

Provisions

1,582

1,722

Lease liabilities

1,495

1,480

Other financial liabilities

739

474

Other current liabilities

7,659

9,123

Total current liabilities

135,718

139,984889

732

Non-current liabilities
Borrowings
Deferred tax liabilities
Retirement benefit liabilities
Provisions

873

684

12,091

14,415357

355

Lease liabilities

5,510

5,367

Other financial liabilities

2,648

2,494

Other non-current liabilities

1,411

1,577

Total non-current liabilities

23,781

25,625

159,499

165,610

Share capital

34,43334,433

Capital surplus

34,78834,923

Treasury stock(4,739)(4,742)Other components of equity

11,3208,991

Retained earnings

132,619

152,906

Equity attributable to owners of the parent

208,421226,513

Non-controlling interests

12,78012,306

Total equity

221,201

238,819

380,701

404,429

Total liabilities
EquityTotal liabilities and equity

10Lion Corporation (Code 4912): Consolidated Financial Statements
for the Nine Months Ended September 30, 2020

(2) Condensed Consolidated Statement of Income and Statement of Comprehensive Income
Condensed Consolidated Statement of Income
Nine months ended September 30, 2019 and 2020

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

Nine months ended
September 30, 2019
261,962(132,448)
129,513(105,929)
1,121
(875)
23,830506(152)(Millions of yen)
Nine months ended
September 30, 2020
262,049(128,430)
133,618(103,746)
11,945(3,572)
38,244
535
(111)

677

1,041

24,862(6,171)
18,69039,710(10,997)
28,713

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

16,9501,740
18,69027,237
1,475
28,713

Earnings per share
Basic (Yen)
Diluted (Yen)

58.31
58.24

93.69
93.57

11

Lion Corporation (Code 4912): Consolidated Financial Statements
for the Nine Months Ended September 30, 2020
Condensed Consolidated Statement of Comprehensive Income
Nine months ended September 30, 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 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
Comprehensive income for the period

Nine months ended
September 30, 201918,690Comprehensive income for the period
attributable to:
Owners of the parent
Non-controlling interests
Comprehensive income for the period

12(Millions of yen)
Nine months ended
September 30, 2020
28,713

91

(253)

766

(1,245)

(43)

(40)

814

(1,539)

8

―

(761)

(1,971)

(28)

(353)

(781)

(2,325)32
18,723(3,864)
24,848

16,822
1,900
18,72324,354493
24,848

Lion Corporation (Code 4912): Consolidated Financial Statements
for the Nine Months Ended September 30, 2020

(3) Condensed Consolidated Statement of Changes in Equity
Nine months ended September 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 September 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 September 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

―

78

766

78

766

(434)

(766)

―

(2)
(7)

29

(21)

61

―

53

27

(21)

(434)

(766)

34,43334,768(4,738)143

10,444―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―

16,95016,9501,740

18,690

(127)

160

32

8

(981)

(127)

8

(981)

(127)

16,95016,822

1,900

18,723―(5,813)(5,813)(3,232)(9,045)

―

(2)

(2)

(21)

0

0

―

61

61
―

(1,200)

1,200

―

―

―

(1,222)(4,612)(5,754)(3,232)(8,986)(0)(1,017)

9,569

128,049

202,082

11,831

213,914

13

Lion Corporation (Code 4912): Consolidated Financial Statements
for the Nine Months Ended September 30, 2020
Nine months ended September 30, 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 September 30,
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 September 30,
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
―

―

―

―

―

(241)

(1,245)(241)(1,245)

(691)

1,245

(2)
0

0

134

―

134

(2)

―

(691)

1,245

34,43334,923(4,742)

143

10,356―Equity attributable to owners of the parent
Other components of equity
Net gain (loss)
Exchange
Retainedon derivatives
differences on
earnings
designated astranslation of
Total
foreigncash flow
hedgesoperations―(113)
11,320132,619―
27,237―

Non-controllinginterests

Total

Total equity

208,421
27,237

12,7801,475

221,201
28,713(2,882)(981)(3,864)(1,395)(2,882)(1,395)(2,882)

27,237

24,354493

24,848―(6,395)(6,395)(967)(7,363)

―

(2)

(2)

―

0

0

―

134

134
―

554

(554)

―

―

―

554

(6,950)(6,263)(967)(7,231)―(1,508)

8,991

152,906

226,513

12,306

238,819

14

Lion Corporation (Code 4912): Consolidated Financial Statements
for the Nine Months Ended September 30, 2020

(4) Notes to Condensed Consolidated Financial Statements
Notes relating to the assumption of a going concern
Not applicable.
Changes in Accounting Principles
The main accounting standards that the Group applies from the first quarter of the fiscal year under review are as
follows.

Standard
IFRS 3

Title
Business Combinations

Summary of new principles or amendments
Improved the definition of a business

Presentation of Financial
IAS 1

Statements

IAS 8

Accounting Policies, Changes inClarified the definition of “material”

Accounting Estimates and Errors
Financial Instruments
IFRS 9Financial Instruments: Recognition

IFRS 7and Measurement
Financial Instruments: Disclosures

Revised certain hedge accounting requirements to
reduce the potential effects of uncertainty caused by the
IBOR transition

The Group is applying the above accounting standards in accordance with their respective transitional provisions,and their application does not have a material impact on the Condensed Consolidated Financial Statements.

15

Lion Corporation (Code 4912): Consolidated Financial Statements
for the Nine Months Ended September 30, 2020
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 a comprehensive
strategy and carries out business activities for the products it handles. Affiliated companies in Japan undertake businessactivities pertinent to the characteristics of their respective products and services.
Affiliated companies located overseas are independent management units that conduct business activities pertinent tothe characteristics of the regions in which they operate.
Accordingly, the Group comprises three reportable segments divided by product and service type and by region, whichare, 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.

B.

C.

D.

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
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
Overseas Business
The Overseas Business engages mainly in the manufacture and sale of commodities by affiliated overseas
businesses.
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

16

Lion Corporation (Code 4912): Consolidated Financial Statements
for the Nine Months Ended September 30, 2020
(2) Net Sales and Performance of Reportable Segments
Nine months ended September 30, 2019
(Millions of yen)
Reportable Segment
Other

Total

Adjustment2 Consolidated3

Consumer
Products
Business

Industrial
Products
Business

Overseas
Business

164,588

24,35370,5192,475

261,93625

261,962(2) Intersegment1

11,45816,605

6,987

22,416

57,467(57,467)―

Total
Core operating
incomeOther income

176,046

40,95977,50624,891

319,404(57,441)

261,962

15,968

1,177

5,636

949

23,732(148)

23,583

Net sales(1) External

1,121

Other expenses(875)

Operating profit

23,830Finance income

506

Finance costs
Share of profit ofinvestments
accounted for using
the equity method
Profit before tax(152)

Notes:

677

24,862
1. Includes intra-segment transactions within the reportable segments.
2. A negative ¥148 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

129,513(105,929)
23,583

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

Lion Corporation (Code 4912): Consolidated Financial Statements
for the Nine Months Ended September 30, 2020

Nine months ended September 30, 2020
(Millions of yen)
Reportable Segment
Other

Total

Consumer
Products
Business

Industrial
Products
Business

Overseas
Business

168,383

22,822

68,6742,179

262,060

11,587

17,3868,040

22,25759,272

179,971

40,20876,71524,437321,332

22,006

1,431

5,545

1,491

30,473Adjustment2 Consolidated3

Net sales(1) External(2) Intersegment1
Total
Core operating
incomeOther income(11)262,049(59,283)

262,049(59,272)(601)―

29,872
11,945(3,572)Other expenses
Operating profit

38,244

Finance income

535

Finance costs
Share of profit ofinvestments
accounted for using
the equity method
Profit before tax(111)

Notes:

1,041
39,7101. Includes intra-segment transactions within the reportable segments.
2. A negative ¥601 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

133,618(103,746)
29,872

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

18