Eagle Industry : Summary of Consolidated Financial Results for the Three Months Ended June 30, 2020

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 Three Months Ended June 30, 2020 (Based on Japanese GAAP)

				August 4, 2020
Company name:	Eagle Industry Co., Ltd.
Stock exchange listing:	Tokyo
Stock code:	6486	URL https://www.ekkeagle.com/jp/
Representative:	Representative Director, President	Tetsuji Tsuru
Inquiries:	Senior Operating Officer, Division Manager	Sumio Ikeda	TEL [phone]
	Corporate Finance & Accounting Division
Scheduled date to file Quarterly Securities Report:	August 7, 2020
Scheduled date to commence dividend payments:	-
Preparation of supplementary material on quarterly financial results:	No
Holding of quarterly financial results meeting:	No

(Amounts less than one million yen are rounded down)

1. Consolidated financial results for the three months ended June 30, 2020 (from April 1, 2020 to June 30, 2020)

(1) Consolidated operating results (cumulative)							Percentages indicate year-on-year changes
	Net sales			Operating profit	Ordinary profit		Profit attributable to
					owners of parent
	Millions of yen		%	Millions of yen	%	Millions of yen			%	Millions of yen		%
Three months ended June 30, 2020	25,586		(29.7)	(841)	-		(14)			-		(1,329)		-
Three months ended June 30, 2019	36,370		(5.7)	1,889	(27.9)		2,321		(32.6)		1,244		(41.3)
	Earnings per share		Diluted earnings per share
				Yen				Yen
Three months ended June 30, 2020			(27.08)				-
Three months ended June 30, 2019			25.35				-
(2) Consolidated financial position
	Total assets		Net assets	Equity ratio			Net assets per share
	Millions of yen		Millions of yen					%				Yen
As of June 30, 2020	167,857				80,611				43.6		1,491.47
As of March 31, 2020	166,800				82,019				44.9		1,524.62
2. Cash dividends
						Annual dividends per share
	1st quarter-end		2nd quarter-end		3rd quarter-end	Fiscal year-end	Total
	Yen			Yen			Yen				Yen			Yen
Year ended March 31, 2020			-		25.00			-				25.00			50.00
Year ending March 31, 2021			-
Year ending March 31, 2021 (Forecast)					25.00			-				25.00			50.00

3. Forecast of consolidated financial results for the year ending March 31, 2021 (from April 1, 2020 to March 31, 2021)

Percentages indicate year-on-year changes

	Net sales		Operating profit		Ordinary profit		Profit attributable to	Earnings per share
				owners of parent
Six months ending	Millions of yen	%	Millions of yen		%	Millions of yen		%	Millions of yen		%	Yen
57,000	(21.2)	(2,400)		-	(1,300)		-	(3,000)		-	(61.12)
September 30, 2020
Full year	123,400	(13.2)	(1,800)		-	0		-	(3,400)		-	(69.27)

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4. Notes

1. Changes in significant subsidiaries during the three months ended June 30, 2020 (changes in specified subsidiaries resulting in the change in scope of consolidation):
2. Application of special accounting methods for preparing quarterly consolidated financial statements:

No

Yes

(3) 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:	Yes
Changes in accounting estimates:	No
Restatement of prior period financial statements:	No

(4) Number of issued shares (common shares)

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

	As of June 30, 2020	49,757,821	shares	As of March 31, 2020	49,757,821	shares
Number of treasury shares at the end of the period
	As of June 30, 2020	673,303	shares	As of March 31, 2020	673,253	shares
Average number of shares during the period (cumulative from the beginning of the fiscal year)
	Three months ended June 30, 2020	49,084,521	shares	Three months ended June 30, 2019	49,085,341	shares

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Quarterly consolidated financial statements

Consolidated balance sheets

			(Millions of yen)
		As of March 31, 2020	As of June 30, 2020
Assets
Current assets
Cash and deposits	21,438	27,668
Notes and accounts receivable - trade	27,152	-
Trade receivables and contract assets	-	23,325
Electronically recorded monetary claims - operating	3,092	3,253
Merchandise and finished goods	7,075	8,406
Work in process	5,794	6,192
Raw materials and supplies	9,699	10,107
Other	6,419	5,109
Allowance for doubtful accounts	(103)	(274)
Total current assets	80,567	83,789
Non-current assets
Property, plant and equipment
Buildings and structures, net	23,666	23,520
Machinery, equipment and vehicles, net	24,755	24,542
Other, net	13,512	13,312
Total property, plant and equipment	61,934	61,375
Intangible assets
Goodwill	2,167	2,029
Other	2,467	2,291
Total intangible assets	4,635	4,320
Investments and other assets
Investment securities	11,365	10,948
Other	8,405	7,531
Allowance for doubtful accounts	(108)	(108)
Total investments and other assets	19,663	18,372
Total non-current assets	86,232	84,068
Total assets		166,800	167,857

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			(Millions of yen)
		As of March 31, 2020	As of June 30, 2020
Liabilities
Current liabilities
Accounts payable - trade	7,503	4,805
Electronically recorded obligations - operating	3,031	2,611
Short-term borrowings	14,442	23,553
Income taxes payable	1,207	702
Provision for bonuses	2,603	1,685
Other provisions	1,025	989
Other	11,395	12,192
Total current liabilities	41,208	46,540
Non-current liabilities
Long-term borrowings	22,690	20,098
Provisions	307	310
Retirement benefit liability	18,890	18,843
Other	1,684	1,452
Total non-current liabilities	43,572	40,704
Total liabilities	84,780	87,245
Net assets
Shareholders' equity
Share capital	10,490	10,490
Capital surplus	11,310	11,310
Retained earnings	66,745	64,112
Treasury shares	(225)	(225)
Total shareholders' equity	88,320	85,688
Accumulated other comprehensive income
Valuation difference on available-for-sale securities	292	343
Foreign currency translation adjustment	(8,095)	(7,311)
Remeasurements of defined benefit plans	(5,682)	(5,512)
Total accumulated other comprehensive income	(13,485)	(12,480)
Non-controlling interests	7,184	7,403
Total net assets	82,019	80,611
Total liabilities and net assets		166,800	167,857

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Consolidated statements of income (cumulative) and consolidated statements of comprehensive income (cumulative)

Consolidated statements of income (cumulative)

			(Millions of yen)
		Three months ended	Three months ended
		June 30, 2019	June 30, 2020
Net sales	36,370	25,586
Cost of sales	28,249	20,665
Gross profit	8,121	4,921
Selling, general and administrative expenses	6,231	5,762
Operating profit (loss)	1,889	(841)
Non-operating income
Interest income	53	85
Dividend income	11	8
Share of profit of entities accounted for using equity method	651	719
Foreign exchange gains	-	58
Other	178	246
Total non-operating income	895	1,117
Non-operating expenses
Interest expenses	105	99
Foreign exchange losses	294	-
Donations	0	0
Loss on mothballing of operation	-	130
Other	63	60
Total non-operating expenses	463	290
Ordinary profit (loss)	2,321	(14)
Extraordinary income
Gain on sales of non-current assets	2	0
Total extraordinary income	2	0
Extraordinary losses
Loss on sales of non-current assets	8	0
Loss on retirement of non-current assets	50	3
Total extraordinary losses	59	3
Profit (loss) before income taxes	2,265	(17)
Income taxes	634	956
Profit (loss)	1,630	(974)
Profit attributable to non-controlling interests	386	354
Profit (loss) attributable to owners of parent		1,244	(1,329)

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Consolidated statements of comprehensive income (cumulative)

		(Millions of yen)
	Three months ended	Three months ended
	June 30, 2019	June 30, 2020
Profit (loss)	1,630	(974)
Other comprehensive income
Valuation difference on available-for-sale securities	(39)	51
Foreign currency translation adjustment	(1,565)	641
Remeasurements of defined benefit plans, net of tax	165	179
Share of other comprehensive income of entities accounted	(489)	127
for using equity method
Total other comprehensive income	(1,929)	998
Comprehensive income	(298)	24
Comprehensive income attributable to
Comprehensive income attributable to owners of parent	(527)	(323)
Comprehensive income attributable to non-controlling	229	348
interests

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