Maruwa : 【Financial Results】 First Quarter 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 Three Months Ended June 30, 2020 (Based on Japanese GAAP)

																		July 27, 2020
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					Tamaki Nozoki		TEL	0561-51-0839
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		8,981		(13.5)	2,154	(3.5)	2,158			(2.0)		1,445		(4.6)
Three months ended June 30, 2019		10,382		11.3	2,233	8.9	2,203			(2.1)		1,515		0.4
			Earnings per share		Diluted earnings per share
						Yen				Yen
Three months ended June 30, 2020				117.21				-
Three months ended June 30, 2019				122.82				-
(2) Consolidated financial position
			Total assets		Net assets	Equity ratio
			Millions of yen		Millions of yen						%
As of June 30, 2020			71,953				60,631					84.3
As of March 31, 2020			70,681				59,453					84.1
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				-		26.00			-					26.00			52.00
Year ending March 31, 2021				-
Year ending March 31, 2021 (Forecast)					28.00			-					28.00			56.00

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
	Millions of yen	%	Millions of yen	%	Millions of yen	%	Millions of yen	%	Yen
Six months ending	16,500	(18.9)	3,400	(18.1)	3,400	(18.6)	2,300	(19.8)	186.50
September 30, 2020
Full year	36,500	(11.5)	7,900	(15.5)	7,900	(17.0)	5,450	(7.5)	441.94

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4. Notes
(1)	Changes in significant subsidiaries during the three months ended June 30, 2020	No
	(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
(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:			No
	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	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 June 30, 2020	38,313	shares	As of March 31, 2020		40,163	shares
	Average number of shares during the period (cumulative from the beginning of the fiscal year)
		Three months ended June 30, 2020	12,331,951	shares	Three months ended June 30, 2019	12,337,951	shares

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Quarterly consolidated financial statements

Consolidated balance sheets

			(Thousands of yen)
		As of March 31, 2020	As of June 30, 2020
Assets
Current assets
Cash and deposits	29,334,349	30,955,925
Notes and accounts receivable - trade	9,542,199	8,038,120
Electronically recorded monetary claims -	1,295,434	1,211,264
operating
Merchandise and finished goods	2,061,801	2,057,523
Work in process	2,393,622	2,585,007
Raw materials and supplies	2,756,758	2,754,495
Other	1,757,311	1,610,717
Allowance for doubtful accounts	(8,180)	(7,903)
Total current assets	49,133,297	49,205,150
Non-current assets
Property, plant and equipment
Buildings and structures	12,650,214	12,668,977
Accumulated depreciation	(6,505,584)	(6,576,128)
Buildings and structures, net	6,144,629	6,092,849
Machinery, equipment and vehicles	20,998,043	20,916,530
Accumulated depreciation	(16,567,320)	(16,509,377)
Machinery, equipment and vehicles, net	4,430,722	4,407,153
Land	4,421,234	4,420,539
Construction in progress	3,445,592	4,896,180
Other	3,499,670	3,560,779
Accumulated depreciation	(2,898,143)	(2,966,072)
Other, net	601,527	594,706
Total property, plant and equipment	19,043,706	20,411,429
Intangible assets
Goodwill	195,975	182,613
Other	254,672	248,988
Total intangible assets	450,648	431,602
Investments and other assets	2,053,978	1,905,205
Total non-current assets	21,548,333	22,748,237
Total assets		70,681,631	71,953,388

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			(Thousands of yen)
		As of March 31, 2020	As of June 30, 2020
Liabilities
Current liabilities
Notes and accounts payable - trade	1,898,714	2,402,955
Electronically recorded obligations - operating	1,619,355	1,992,723
Short-term borrowings	900,000	900,000
Income taxes payable	827,864	527,753
Provision for bonuses	608,949	334,701
Provision for bonuses for directors (and other	63,000	3,333
officers)
Other	3,382,929	3,177,604
Total current liabilities	9,300,813	9,339,071
Non-current liabilities
Long-term borrowings	1,200,000	1,200,000
Deferred tax liabilities	351,419	395,740
Other	375,829	387,006
Total non-current liabilities	1,927,248	1,982,746
Total liabilities	11,228,062	11,321,818
Net assets
Shareholders' equity
Share capital	8,646,720	8,646,720
Capital surplus	11,992,492	11,996,508
Retained earnings	40,526,723	41,651,296
Treasury shares	(239,524)	(228,593)
Total shareholders' equity	60,926,411	62,065,930
Accumulated other comprehensive income
Valuation difference on available-for-sale	70,521	111,241
securities
Foreign currency translation adjustment	(1,543,364)	(1,545,602)
Total accumulated other comprehensive income	(1,472,842)	(1,434,360)
Total net assets	59,453,569	60,631,569
Total liabilities and net assets		70,681,631	71,953,388

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

Consolidated statements of income (cumulative)

			(Thousands of yen)
		Three months ended	Three months ended
		June 30, 2019	June 30, 2020
Net sales	10,382,863	8,981,962
Cost of sales	6,108,659	4,909,773
Gross profit	4,274,204	4,072,189
Selling, general and administrative expenses	2,040,244	1,917,352
Operating profit	2,233,960	2,154,836
Non-operating income
Interest income	13,782	14,537
Rental income	24,225	26,106
Other	7,641	17,597
Total non-operating income	45,649	58,242
Non-operating expenses
Interest expenses	-	751
Rent expenses on real estate for investments	12,773	11,312
Foreign exchange losses	54,410	23,524
Other	9,159	18,935
Total non-operating expenses	76,344	54,523
Ordinary profit	2,203,265	2,158,554
Extraordinary income
Gain on sales of non-current assets	222	0
Gain on liquidation of subsidiaries	-	11,887
Total extraordinary income	222	11,888
Extraordinary losses
Loss on sales and retirement of non-current assets	6,218	37
Loss related to infectious disease	-	67,531
Total extraordinary losses	6,218	67,569
Profit before income taxes	2,197,269	2,102,874
Income taxes - current	493,666	447,031
Income taxes - deferred	188,183	210,414
Total income taxes	681,849	657,445
Profit	1,515,419	1,445,428
Profit attributable to owners of parent		1,515,419	1,445,428

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Consolidated statements of comprehensive income (cumulative)

		(Thousands of yen)
	Three months ended	Three months ended
	June 30, 2019	June 30, 2020
Profit	1,515,419	1,445,428
Other comprehensive income
Valuation difference on available-for-sale securities	(1,787)	40,720
Foreign currency translation adjustment	(436,892)	(2,238)
Total other comprehensive income	(438,679)	38,482
Comprehensive income	1,076,740	1,483,910
Comprehensive income attributable to
Comprehensive income attributable to owners of	1,076,740	1,483,910
parent

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