Maruwa Unyu Kikan : Summary of Consolidated Financial Results for the Year Ended March 31, 2021(Based on Japanese GAAP)

Translation

Notice: This document is an excerpt translation of the original Japanese document and is only for reference purposes. In the event of any discrepancy between this translated document and the original Japanese document, the latter shall prevail.

Summary of Consolidated Financial Results

for the Year Ended March 31, 2021

(Based on Japanese GAAP)

May 10, 2021

Company name:

MARUWA UNYU KIKAN CO., LTD.

Stock exchange

Tokyo

listing:

Stock code:

9090

URL

https://www.momotaro.co.jp/

Representative:

President

Masaru Wasami

Inquiries:

Director and Managing Executive

Kazumi Kawada

TEL

048-991-1000

Officer

Scheduled date of ordinary general meeting of shareholders:

June 28, 2021

Scheduled date to file Securities Report:

June 28, 2021

Scheduled date to commence dividend payments:

June 29, 2021

Preparation of supplementary material on financial results:

Yes

Holding of financial results meeting:

Yes

(for institutional investors and analysts)

(Amounts less than one million yen are rounded down)

1. Consolidated financial results for the year ended March 31, 2021 (from April 1, 2020 to March 31, 2021)

(1) Consolidated operating results

Percentages indicate year-on-year changes

Net sales

Operating profit

Ordinary profit

Profit attributable to

owners of parent

Millions of

%

Millions of

%

Millions of

%

Millions of

%

yen

yen

yen

yen

Year ended March 31, 2021

112,113

14.0

8,019

11.5

8,262

11.8

5,536

14.9

Year ended March 31, 2020

98,348

14.9

7,194

23.7

7,392

22.3

4,818

23.5

Note:

Comprehensive income

Fiscal year ended March 31, 2021:

6,271 million yen

[23.3%]

Fiscal year ended March 31, 2020:

5,084 million yen

[45.1%]

Earnings per share

Diluted earnings

Profit attributable

Ordinary

Operating

per share

to owners of

profit/total assets

profit/net sales

parent/equity

Yen

Yen

%

%

%

Year ended March 31, 2021

43.60

42.37

21.3

13.6

7.2

Year ended March 31, 2020

37.58

37.45

19.5

15.7

7.3

Reference: Share of profit / loss

of entities accounted

for using equity

method

Fiscal year ended March 31, 2021:

- million yen

Fiscal year ended March 31, 2020:

- million yen

Note:

The Company conducted 2-for-1 share splits on October 1, 2019 and January 1, 2021. Accordingly, basic earnings

per share and diluted earnings per share were calculated as though the share splits were conducted at the beginning

of the previous fiscal year.

(2) Consolidated financial position

Total assets

Net assets

Equity ratio

Net assets per share

Millions of yen

Millions of yen

%

Yen

As of March 31, 2021

73,191

25,708

35.1

204.54

As of March 31, 2020

48,423

26,328

54.4

206.05

Reference:

Equity

Fiscal year ended March 31, 2021:

25,708 million yen

Fiscal year ended March 31, 2020:

26,328 million yen

Notes:

1.

The Company conducted 2-for-1 share splits on October 1, 2019 and January 1, 2021. Accordingly, net assets per

share were calculated as though the share splits were conducted at the beginning of the previous fiscal year.

2. The main reason for the increase in total assets is the issuance of euro-yen denominated convertible corporate bonds with share acquisition rights due in 2025. Furthermore, the main reason for the decrease in net assets was the purchase of treasury shares. For more details, please refer to "(i) Assets, liabilities and net assets (2) Analysis of Financial Condition under 1. Overview of Operating Results" on page 3 of the attached material.

(3) Consolidated cash flows

		Cash flows from	Cash flows from	Cash flows from	Cash and cash
		equivalents at end of
		operating activities	investing activities	financing activities
		period
		Millions of yen	Millions of yen	Millions of yen	Millions of yen
Year ended March 31, 2021	7,970	(4,576)	14,040	26,482
Year ended March 31, 2020	7,113	(3,548)	(3,459)	8,536
Note:	For more details of	consolidated cash flows,	please refer to "(ii) Cash	Flows (2) Analysis of	Financial Condition under

1. Overview of Operating Results" on page 4 of the attached material.

2. Cash dividends

			Annual dividends per share		Total cash	Dividend payout	Ratio of
				dividends to net
								ratio
		1st quarter-	2nd quarter-	3rd quarter-	Fiscal year-	Total	dividends (Total)	(Consolidated)	assets
		end	end	end	end		(Consolidated)
		Yen	Yen	Yen	Yen	Yen	Millions of	%	%
		yen
Year ended March 31, 2020	-	21.90	-	10.95	-	1,405	29.1	5.7
Year ended March 31, 2021	-	18.95	-	9.48	-	2,408	43.5	9.2
Year ending March 31, 2022	-	9.50	-	9.50	19.00		40.8
(Forecast)
Notes:	1. The Company	conducted a 2	-for-1 share split on October 1, 2019. Regarding dividends for the end of the second
	quarter of the fiscal year ended March 31, 2020, actual dividend values before the share split are shown.

1. The Company conducted a 2-for-1 share split on January 1, 2021. The dividend amount for the end of the year ended March 31, 2021 takes this share split into account.
2. The annual dividend for the year ended March 31, 2021 includes 50th anniversary commemorative dividends (an interim dividend of 7.50 yen and a year-end dividend of 3.75 yen).

3. Forecast of consolidated financial results for the year ending March 31, 2022 (from April 1, 2021 to March 31, 2022) Percentages indicate year-on-year changes

	Net sales		Operating profit	Ordinary profit	Profit attributable to	Earnings per
		owners of parent	share
	Millions of		%	Millions of	%	Millions of	%	Millions of	%	Yen
	yen		yen	yen	yen
Six months ending
58,870		9.5	3,770	(13.9)	3,960	(11.6)	2,790	(9.5)	22.20
September 30, 2021
Full year	120,000		7.0	8,410	4.9	8,800	6.5	5,850	5.7	46.54
4. Notes
(1) Changes in significant subsidiaries during the year ended March 31, 2021			No
(changes in specified subsidiaries resulting in the change in scope of consolidation):
(2) Changes in accounting policies, changes in accounting estimates, and restatement of prior period financial statements
Changes in accounting policies due to revisions to accounting standards and other regulations:	No
Changes in accounting policies due to other reasons:					No
Changes in accounting estimates:							No
Restatement of prior period financial statements:					No

(3) Number of issued shares (common shares)

Total number of issued shares at the end of the period (including treasury shares)

As of March 31, 2021	128,797,120 shares	As of March 31, 2020	128,653,920 shares
Number of treasury shares at the end of the period
As of March 31, 2021	3,108,388 shares	As of March 31, 2020	879,224 shares
Average number of shares during the period
Year ended March 31, 2021	126,974,268 shares	Year ended March 31, 2020	128,222,598 shares

Notes: 1. The Company conducted 2-for-1 share splits on October 1, 2019 and January 1, 2021. Accordingly, issued shares were calculated as though the share splits were conducted at the beginning of the previous fiscal year.

2. The number of treasury shares excluded from the calculation of the number of treasury shares at the end of the period and average number of shares includes 359,910 Company shares held as investment assets in a stock benefit trust for officers and a stock benefit ESOP.

(Reference) Non-consolidated financial results

1. Non-consolidated financial results for the fiscal year ended March 31, 2021 (from April 1, 2020 to March 31, 2021)

(1) Non-consolidated operating results				(Percentages indicate year-on-year changes.)
		Net sales				Operating profit	Ordinary profit	Profit
Fiscal year ended	Million yen		%		Million yen		%	Million yen		%	Million yen		%
March 31, 2021	76,362		13.2		5,033		22.2	6,428		19.9	4,921		26.5
March 31, 2020	67,457		14.0		4,118		18.5	5,361		12.4	3,891		12.7
		Basic earnings		Diluted earnings
		per share				per share
Fiscal year ended			Yen				Yen
March 31, 2021		38.76			37.62
March 31, 2020		30.35			30.25
				and January 1, 2021. Accordingly, basic earnings
Note:	The Company	conducted 2-for-1 share	splits on October 1, 2019
	per share and diluted earnings per share were calculated as though the share splits were conducted at the beginning
	of the previous fiscal year.
(2) Non-consolidated financial position
		Total assets		Net assets	Equity ratio		Net assets per share
As of		Million yen		Million yen			%			Yen
March 31, 2021		61,370			19,829			32.3		157.77
March 31, 2020		38,806			21,050			54.2		164.75
Reference:	Equity
	As of March 31, 2021: 19,829 million yen	As of March 31, 2020: 21,050 million yen
Note:	The Company conducted 2-for-1 share splits on October 1, 2019 and January 1, 2021. Accordingly, net assets per
	share were calculated as though the share splits were conducted at the beginning of the previous fiscal year.

2. Forecasts of non-consolidated financial results for the fiscal year ending March 31, 2022 (from April 1, 2021 to March 31, 2022)

(Percentages indicate year-on-year changes.)

	Net sales		Ordinary profit	Profit		Net income per share
	Million yen	%	Million yen	%	Million yen	%	Yen
Six months	36,550	(1.0)	2,310	(15.5)	1,740	(11.1)	13.84
Full year	73,340	(4.0)	6,300	(2.0)	4,740	(3.7)	37.71

• Financial results reports are exempt from audit conducted by certified public accountants or an audit corporation.
• Proper use of earnings forecasts, and other special matters
  The forward-lookingstatements, including earnings forecasts, contained in these materials are based on information currently available to the Company and on certain assumptions deemed to be reasonable. Actual results may differ substantially due to various factors. For the suppositions that form the assumptions for earnings forecasts and cautions concerning the use thereof, please refer to "(1) Analysis of Operating Results (Future outlook) under 1. Overview of Operating Results" on page 3 of the attached materials.
  (How to obtain supplementary material on financial results)
  As a measure to prevent the spread of novel coronavirus disease (COVID-19), we plan to hold the financial results meeting for institutional investors and analysts via livestream on May 24, 2021. The scale and explanatory details will promptly be posted on the Company website after the conclusion of the meeting with the supplementary materials on financial results used on the day.

Attached Material Index
1. Overview of Operating Results....................................................................................................................	2
(1)	Analysis of Operating Results..................................................................................................................	2
(2)	Analysis of Financial Condition...............................................................................................................	3
(3)	Basic Dividend Policy and Dividend Payments for Fiscal Year Under Review and Next Fiscal Years..	4
(4)	Business Risks..........................................................................................................................................	5
2. Overview of the Corporate Group ...............................................................................................................	8
3. Management Policies.................................................................................................................................	11
(1)	The Company's Basic Management Policies .........................................................................................	11
(2)	Target Management Indicators...............................................................................................................	11
(3)	The Company's Medium- to Long-term Management Strategy ............................................................	11
(4)	Issues to be Addressed by the Company ................................................................................................	12
(5)	Other Matters Material to the Management of the Company.................................................................	14
4. Basic Approach to Selection of Accounting Standards .............................................................................	14
5. Consolidated financial statements and significant notes thereto ...................................................................	15
(1)	Consolidated balance sheets...................................................................................................................	15
(2)	Consolidated statements of income and consolidated statements of comprehensive income ................	17
(3)	Consolidated statements of changes in equity........................................................................................	19
(4)	Consolidated statements of cash flows...................................................................................................	21
(5)	Notes to Consolidated Financial Statements ..........................................................................................	23
	(Notes related to the going concern assumption)............................................................................................	23
	(Important items for the preparation of the consolidated financial statements)..............................................	23
	(Segment information)....................................................................................................................................	25
	(Per share information) ...................................................................................................................................	27
	(Significant subsequent events) ......................................................................................................................	27

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