Marumae : Financial Results Summary for Q1 FY2022

Marumae

Note: This document has been translated from the Japanese original for reference purposes only. In the event of any discrepancy between this translated document and the Japanese original, the original shall prevail.

Summary of Financial Results for the Three Months Ended

November 30, 2021 (Japanese GAAP) (Non-consolidated)

		December 28, 2021
Name of Listed Company:	Marumae Co., Ltd.	Stock Exchange Listing: Tokyo
Security Code:	6264
URL:	https://www.marumae.com/en/
Representative:	Toshikazu Maeda, President and Representative Director
Contact:	Takeshi Shimomai, General Manager of the Administration Headquarters
	Email: [e-mail]

Scheduled date for submission of the quarterly report: January 13, 2022

Scheduled start date of dividends payment: -

Preparation of supplementary materials for the quarterly financial results: Yes

Quarterly earnings release conference: None

Note: Amounts are rounded down to the nearest million yen.

1. Financial Results for the Three Months Ended November 30, 2021 (September 1, 2021 to November 30, 2021)

1. Operating Results (Cumulative)

Note: Percentages indicate changes from the same period of the previous fiscal year.

		Three months ended
	November 30, 2020	November 30, 2021
		%		%
Net sales (Millions of yen)	1,100	16.9	1,938	76.1
Operating profit (Millions of yen)	200	35.9	595	197.0
Ordinary profit (Millions of yen)	200	39.1	592	196.0
Profit (Millions of yen)	137	40.6	422	206.5
Earnings per share of common stock (Yen)
Basic	10.76		32.98
Diluted	-		-

Note: From the beginning of the first quarter of the fiscal year ending August 31, 2022, the Company has applied the "Accounting Standard for Revenue Recognition" (ASBJ Statement No. 29, March 31, 2020), etc. Figures for the first quarter of the fiscal year ending August 31, 2022 include the effects of the new standards. However, the percentages of changes from the same period of the previous fiscal year are calculated based on the financial results for the same period of the previous fiscal year prior to the application of the standards, as their impact is immaterial.

Marumae

1. Financial Position

			As of
		August 31, 2021		November 30, 2021
Total assets (Millions of yen)	9,742	10,794
Net assets (Millions of yen)	6,327	6,570
Equity ratio (%)			64.9	60.9
Reference:	Equity: 6,570 million yen (as of November 30, 2021)
	6,327 million yen (as of August 31, 2021)

Note: From the beginning of the first quarter of the fiscal year ending August 31, 2022, the Company has applied the "Accounting Standard for Revenue Recognition" (ASBJ Statement No. 29, March 31, 2020), etc. Figures for the first quarter of the fiscal year ending August 31, 2022 include the effects of the new standards.

2. Dividends
	Fiscal year ended	Fiscal year ending
	August 31, 2021	August 31, 2022
1Q-end dividends per share (Yen)	-		-
2Q-end dividends per share (Yen)	10.00	18.00	(Forecast)
3Q-end dividends per share (Yen)	-	- (Forecast)
Year-end dividends per share (Yen)	14.00	18.00	(Forecast)
Annual dividends per share (Yen)	24.00	36.00	(Forecast)
Note: Revision to the most recently announced dividends forecast: None

3. Financial Forecasts for the Fiscal Year Ending August 31, 2022 (September 1, 2021 to August 31, 2022)

Note: Percentages indicate changes from the corresponding period of the previous fiscal year.
	Six months ending February 28, 2022	Fiscal year ending
	(Cumulative)		August 31, 2022
		%		%
Net sales (Millions of yen)	3,540	54.0	7,200	34.1
Operating profit (Millions of yen)	900	112.2	1,800	49.1
Ordinary profit (Millions of yen)	890	110.6	1,780	48.3
Profit (Millions of yen)	623	111.6	1,245	38.0
Earnings per share (Yen)	48.68		97.30

Note: Revision to the most recently announced financial forecasts: None

From the beginning of the first quarter of the fiscal year ending August 31, 2022, the Company has applied the "Accounting Standard for Revenue Recognition" (ASBJ Statement No. 29, March 31, 2020), etc. The financial forecasts presented above include the effects of the new standards. However, the percentages of changes from the corresponding period of the previous fiscal year are calculated based on the financial results for the same period of the previous fiscal year prior to the application of the standards, as their impact is immaterial.

Marumae

Notes

1. Adoption of special accounting methods for preparation of quarterly financial statements: None
2. Changes in accounting policies, changes in accounting estimates and restatements
3. 1. Changes in accounting policies along with changes in accounting standards: Yes
   2. Changes in accounting policies, other than those included in 1. above: None
   3. Change in accounting estimates: None
   4. Restatements: None

Note: For further information, please refer to "2. Quarterly Financial Statements and Primary Notes, (3) Notes to the Quarterly Financial Statements, Changes in accounting policies" on page 7.

1. Number of shares issued and outstanding (common stock)
   1. Number of shares issued and outstanding (including treasury shares)

As of November 30, 2021:	13,053,000 shares
As of August 31, 2021:	13,053,000 shares
2. Number of shares of treasury shares
As of November 30, 2021:	250,253 shares
As of August 31, 2021:	250,196 shares
3. Average number of shares outstanding (cumulative quarterly period)
Three months ended November 30, 2021:	12,802,785 shares
Three months ended November 30, 2020:	12,802,804 shares

* Status of implementation of quarterly review procedures

This Summary of Financial Results is exempt from the quarterly review procedures by certified public accountants or audit firms.

* Explanation regarding the appropriate use of financial forecasts and other notes

The financial forecasts and other forward-looking statements presented in this Summary of Financial Results are based on information available to the Company at the time of the issuance of this report, and certain assumptions judged to be reasonable by the Company. Actual financial results may differ significantly due to various factors. Please refer to "1. Qualitative Information on Quarterly Financial Results, (1) Description of Operating Results" on page 2 for the assumptions used for financial forecasts and other notes on their use.

		Marumae
Contents
1. Qualitative Information on Quarterly Financial Results................................................................	2
(1)	Description of Operating Results ..............................................................................................	2
(2)	Description of Financial Position ..............................................................................................	3
(3)	Description of Financial Estimates Information such as Financial Forecasts ......................	3
2. Quarterly Financial Statements and Primary Notes......................................................................	4
(1)	Quarterly Balance Sheet.............................................................................................................	4
(2)	Quarterly Statement of Income..................................................................................................	6
(3)	Notes to the Quarterly Financial Statements............................................................................	7

1

Marumae

1. Qualitative Information on Quarterly Financial Results

From the beginning of the first quarter of the fiscal year ending August 31, 2022, the Company has applied the "Accounting Standard for Revenue Recognition" (ASBJ Statement No. 29, March 31, 2020), etc. Comparisons with the same period of the previous fiscal year in the description of operating results and comparisons with the end of the previous fiscal year in the description of financial position are based on figures for the same period of the previous fiscal year and at the end of the previous fiscal year prior to the application of the standards, as their impact is immaterial.

For further information, please refer to "2. Quarterly Financial Statements and Primary Notes, (3) Notes to the Quarterly Financial Statements, Changes in accounting policies."

1. Description of Operating Results

During the three months ended November 30, 2021, the severe situation due to the Novel Coronavirus (COVID-19) was gradually easing and private consumption was picking up recently in the Japanese economy.

In the semiconductor sector, which is our main sales sector, demand for logic devices expanded rapidly amid growing demand for memory, with business activity reaching a record high. Regarding the flat panel display (FPD) sector, investment in Generation 6 organic light-emitting diodes (OLEDs) for the Chinese market was on a recovery trend. In addition, investment in Generation 10.5 LCD panels also showed signs of recovery. Under these economic circumstances, in the semiconductor sector, orders from both new and existing customers increased. In the FPD sector, an expansion of orders for large vacuum chambers (vacuum containers) contributed to generally favorable business performance. Regarding expenses, cost of sales was reduced mainly due to increased factory operation rates and a decrease in provision for loss on order received and inventory write-down.

As a result, the operating results for the three months ended November 30, 2021 were net sales of 1,938 million yen (year-on-year growth of 76.1%), operating profit of 595 million yen (year-on-year growth of 197.0%), ordinary profit of 592 million yen (year-on-year growth of 196.0%), and quarterly net profit of 422 million yen (year-on-year growth of 206.5%).

Since the Company has only one segment, the precision parts business, a description by segment is omitted. The operating results of the precision parts business, by sales sector are described below.

The Semiconductor Sector

In the semiconductor sector, orders received increased by 107.4% year-on-year to 1,873 million yen, and net sales increased by 61.6% year-on-year to 1,444 million yen. Please note that figures for orders received include materials supplied for a fee.

The FPD Sector

In the FPD sector, orders received increased by 300.6% year-on-year to 619 million yen, and net sales increased by 125.2% year-on-year to 370 million yen.

The Other Sectors

In the other sectors, orders received decreased by 93.0% year-on-year to 3 million yen, and net sales increased by 257.2% year-on-year to 63 million yen.

2