Maruwa : 【Financial Results】Final Results of Fiscal Year 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 Year Ended March 31, 2021

(Based on Japanese GAAP)

																			April 27, 2021
Company name:	MARUWA CO., LTD.
Stock exchange listing: Tokyo, Nagoya
Stock code:	5344	URL https://www.maruwa-g.com/
Representative:	President and Representative Director	Sei Kanbe
Inquiries:	Executive Officer			Kouichi Goto	TEL [phone]
Scheduled date of ordinary general meeting of shareholders:		June 25, 2021
Scheduled date to file Securities Report:			June 28, 2021
Scheduled date to commence dividend payments:			June 28, 2021
Preparation of supplementary material on financial results:		Yes
Holding of financial results meeting:						Yes
											(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 yen		%	Millions of yen		%	Millions of yen	%		Millions of yen		%
Year ended March 31, 2021		41,438		0.5	10,248		9.7		10,330	8.5		6,935		17.7
Year ended March 31, 2020		41,231		0.1	9,345		(2.2)		9,520	(4.1)	5,893		(12.9)
			Earnings per share	Diluted earnings per	Profit attributable to		Ordinary profit/total	Operating profit/net
				share			owners of				assets			sales
								parent/equity
				Yen		Yen			%						%				%
Year ended March 31, 2021		562.30			-			11.0						13.9				24.7
Year ended March 31, 2020		477.88			-			10.3						14.1				22.7
(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					78,059					66,344					85.0				5,378.23
As of March 31, 2020					70,681					59,453					84.1				4,821.14
(3) Consolidated cash flows
			Cash flows from		Cash flows from	Cash flows from	Cash and cash equivalents
			operating activities	investing activities	financing activities		at end of period
			Millions of yen	Millions of yen		Millions of yen		Millions of yen
Year ended March 31, 2021				10,713					(5,376)					(801)						33,888
Year ended March 31, 2020				10,719					(5,272)					1,420						29,114
2. Cash dividends
						Annual dividends per share					Total cash		Dividend payout	Ratio of dividends
																to net assets
			1st quarter-end	2nd quarter-end	3rd quarter-end	Fiscal year-end	Total			dividends (Total)	ratio (Consolidated)	(Consolidated)
			Yen			Yen	Yen		Yen	Yen	Millions of yen		%			%
Year ended March 31, 2020		-		26.00	-		26.00	52.00		641		10.9			1.1
Year ended March 31, 2021		-		28.00	-		36.00	64.00		789		11.4			1.3
Year ending March 31, 2022		-		30.00	-				38.00	68.00				11.2
(Forecast)

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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 share
					owners of parent
	Millions of yen	%	Millions of yen		%	Millions of yen		%	Millions of yen	%	Yen
Six months ending	20,000	2.4	5,000		6.7	5,000		7.7		3,500	10.9	283.72
September 30, 2021
Full year	42,000	1.4	11,000		7.3	11,000		6.5		7,500	8.1	607.99
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	12,372,000	shares	As of March 31, 2020	12,372,000	shares
Number of treasury shares at the end of the period
	As of March 31, 2021	36,327	shares	As of March 31, 2020	40,163	shares
Average number of shares during the period
	Year ended March 31, 2021	12,333,994	shares	Year ended March 31, 2020	12,333,398	shares

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Consolidated financial statements

Consolidated balance sheets

			(Thousands of yen)
		As of March 31, 2020	As of March 31, 2021
Assets
Current assets
Cash and deposits	29,334,349	34,088,967
Notes and accounts receivable - trade	9,542,199	9,834,869
Electronically recorded monetary claims -	1,295,434	1,267,548
operating
Merchandise and finished goods	2,061,801	1,641,861
Work in process	2,393,622	2,277,590
Raw materials and supplies	2,756,758	2,463,698
Other	1,757,311	2,148,598
Allowance for doubtful accounts	(8,180)	(8,565)
Total current assets	49,133,297	53,714,567
Non-current assets
Property, plant and equipment
Buildings and structures	12,650,214	17,012,631
Accumulated depreciation	(6,505,584)	(6,967,852)
Buildings and structures, net	6,144,629	10,044,778
Machinery, equipment and vehicles	20,998,043	22,354,975
Accumulated depreciation	(16,567,320)	(17,149,994)
Machinery, equipment and vehicles, net	4,430,722	5,204,980
Land	4,421,234	4,544,075
Construction in progress	3,445,592	1,889,619
Other	3,499,670	3,887,023
Accumulated depreciation	(2,898,143)	(3,238,099)
Other, net	601,527	648,924
Total property, plant and equipment	19,043,706	22,332,378
Intangible assets
Goodwill	195,975	-
Other	254,672	260,512
Total intangible assets	450,648	260,512
Investments and other assets
Investment securities	239,134	248,510
Deferred tax assets	707,858	440,423
Investment property, net	980,003	963,836
Other	130,222	104,396
Allowance for doubtful accounts	(3,240)	(4,677)
Total investments and other assets	2,053,978	1,752,489
Total non-current assets	21,548,333	24,345,380
Total assets		70,681,631	78,059,947

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			(Thousands of yen)
		As of March 31, 2020	As of March 31, 2021
Liabilities
Current liabilities
Notes and accounts payable - trade	1,898,714	2,404,868
Electronically recorded obligations - operating	1,619,355	1,931,969
Short-term borrowings	900,000	100,000
Current portion of long-term borrowings	-	266,688
Income taxes payable	827,864	1,986,715
Provision for bonuses	608,949	699,556
Provision for bonuses for directors (and other	63,000	49,500
officers)
Other	3,382,929	2,172,822
Total current liabilities	9,300,813	9,612,119
Non-current liabilities
Long-term borrowings	1,200,000	1,599,968
Deferred tax liabilities	351,419	160,873
Other	375,829	342,809
Total non-current liabilities	1,927,248	2,103,651
Total liabilities	11,228,062	11,715,771
Net assets
Shareholders' equity
Share capital	8,646,720	8,646,720
Capital surplus	11,992,492	12,005,832
Retained earnings	40,526,723	46,796,211
Treasury shares	(239,524)	(217,648)
Total shareholders' equity	60,926,411	67,231,114
Accumulated other comprehensive income
Valuation difference on available-for-sale	70,521	119,673
securities
Foreign currency translation adjustment	(1,543,364)	(1,006,611)
Total accumulated other comprehensive income	(1,472,842)	(886,937)
Total net assets	59,453,569	66,344,176
Total liabilities and net assets		70,681,631	78,059,947

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Consolidated statements of income and consolidated statements of comprehensive income Consolidated statements of income

			(Thousands of yen)
		Fiscal year ended	Fiscal year ended
		March 31, 2020	March 31, 2021
Net sales	41,231,431	41,438,018
Cost of sales	23,685,411	23,074,815
Gross profit	17,546,020	18,363,202
Selling, general and administrative expenses	8,200,209	8,114,991
Operating profit	9,345,810	10,248,211
Non-operating income
Interest income	65,785	51,944
Rental income	94,361	88,098
Foreign exchange gains	45,346	-
Other	34,405	57,585
Total non-operating income	239,899	197,628
Non-operating expenses
Interest expenses	305	6,954
Foreign exchange losses	-	50,765
Rent expenses on real estate for investments	49,924	46,930
Bad debt expenses	6,636	-
Other	8,576	11,160
Total non-operating expenses	65,443	115,810
Ordinary profit	9,520,266	10,330,028
Extraordinary income
Gain on sale of non-current assets	29,529	2,383
Gain on sale of investment securities	11,986	65,414
Gain on liquidation of subsidiaries	-	11,887
Settlement received	100,000	-
Total extraordinary income	141,515	79,685
Extraordinary losses
Loss on sale and retirement of non-current assets	77,797	258,622
Impairment losses	-	169,251
Loss on valuation of investment securities	27,510	-
Loss related to infectious disease	61,025	68,805
Loss on liquidation of business	773,648	-
Other	25,436	28,737
Total extraordinary losses	965,418	525,416
Profit before income taxes	8,696,363	9,884,297
Income taxes - current	2,928,470	2,905,073
Income taxes - deferred	(126,034)	43,762
Total income taxes	2,802,435	2,948,836
Profit	5,893,928	6,935,461
Profit attributable to owners of parent		5,893,928	6,935,461

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