Maruwa : 【Financial Results】 Third 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 Nine Months Ended December 31, 2020 (Based on Japanese GAAP)

January 28, 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

Tamaki Nozoki

TEL [phone]

Scheduled date to file Quarterly Securities Report:

February 10, 2021

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 nine months ended December 31, 2020 (from April 1, 2020 to December 31, 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

%

Nine months ended December 31, 2020

30,569

(0.8)

7,573

13.1

7,413

9.2

5,078

24.3

Nine months ended December 31, 2019

30,810

2.2

6,699

(3.7)

6,789

(7.2)

4,087

(15.5)

Earnings per share

Diluted earnings per share

Yen

Yen

Nine months ended December 31, 2020

411.78

-

Nine months ended December 31, 2019

331.36

-

(2) Consolidated financial position

Total assets

Net assets

Equity ratio

Millions of yen

Millions of yen

%

As of December 31, 2020

75,751

64,157

84.7

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	-	28.00	-
Year ending March 31, 2021 (Forecast)				36.00	64.00

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
Full year	41,000	(0.6)	10,000		7.0	9,800		2.9	6,600	12.0	535.10

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4. Notes
(1)	Changes in significant subsidiaries during the nine months ended December 31, 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 December 31, 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 December 31, 2020	36,236 shares	As of March 31, 2020		40,163 shares
	Average number of shares during the period (cumulative from the beginning of the fiscal year)
		Nine months ended December 31, 2020	12,333,434 shares	Nine months ended December 31, 2019	12,333,911 shares

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Quarterly consolidated financial statements

Consolidated balance sheets

			(Thousands of yen)
		As of March 31, 2020	As of December 31, 2020
Assets
Current assets
Cash and deposits	29,334,349	32,786,636
Notes and accounts receivable - trade	9,542,199	9,254,324
Electronically recorded monetary claims -	1,295,434	1,324,172
operating
Merchandise and finished goods	2,061,801	1,854,816
Work in process	2,393,622	2,338,258
Raw materials and supplies	2,756,758	2,330,629
Other	1,757,311	2,000,141
Allowance for doubtful accounts	(8,180)	(8,079)
Total current assets	49,133,297	51,880,899
Non-current assets
Property, plant and equipment
Buildings and structures	12,650,214	15,280,402
Accumulated depreciation	(6,505,584)	(6,825,182)
Buildings and structures, net	6,144,629	8,455,219
Machinery, equipment and vehicles	20,998,043	21,970,902
Accumulated depreciation	(16,567,320)	(16,559,703)
Machinery, equipment and vehicles, net	4,430,722	5,411,199
Land	4,421,234	4,530,840
Construction in progress	3,445,592	2,821,569
Other	3,499,670	3,695,478
Accumulated depreciation	(2,898,143)	(3,103,741)
Other, net	601,527	591,736
Total property, plant and equipment	19,043,706	21,810,565
Intangible assets
Goodwill	195,975	-
Other	254,672	243,965
Total intangible assets	450,648	243,965
Investments and other assets	2,053,978	1,816,293
Total non-current assets	21,548,333	23,870,824
Total assets		70,681,631	75,751,723

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			(Thousands of yen)
		As of March 31, 2020	As of December 31, 2020
Liabilities
Current liabilities
Notes and accounts payable - trade	1,898,714	2,199,668
Electronically recorded obligations - operating	1,619,355	1,720,020
Short-term borrowings	900,000	900,000
Current portion of long-term borrowings	-	266,688
Income taxes payable	827,864	1,211,066
Provision for bonuses	608,949	387,332
Provision for bonuses for directors (and other	63,000	24,750
officers)
Other	3,382,929	2,702,853
Total current liabilities	9,300,813	9,412,380
Non-current liabilities
Long-term borrowings	1,200,000	1,666,640
Deferred tax liabilities	351,419	172,421
Other	375,829	342,791
Total non-current liabilities	1,927,248	2,181,852
Total liabilities	11,228,062	11,594,232
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	44,939,510
Treasury shares	(239,524)	(216,635)
Total shareholders' equity	60,926,411	65,375,427
Accumulated other comprehensive income
Valuation difference on available-for-sale	70,521	123,816
securities
Foreign currency translation adjustment	(1,543,364)	(1,341,753)
Total accumulated other comprehensive income	(1,472,842)	(1,217,936)
Total net assets	59,453,569	64,157,490
Total liabilities and net assets		70,681,631	75,751,723

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

Consolidated statements of income (cumulative)

			(Thousands of yen)
		Nine months ended	Nine months ended
		December 31, 2019	December 31, 2020
Net sales	30,810,745	30,569,592
Cost of sales	17,956,384	17,078,452
Gross profit	12,854,360	13,491,140
Selling, general and administrative expenses	6,155,145	5,917,416
Operating profit	6,699,214	7,573,723
Non-operating income
Interest income	40,940	37,979
Rental income	71,853	65,898
Other	29,944	48,115
Total non-operating income	142,738	151,993
Non-operating expenses
Interest expenses	-	4,459
Foreign exchange losses	2,099	248,789
Rent expenses on real estate for investments	36,714	37,061
Other	13,937	21,817
Total non-operating expenses	52,751	312,127
Ordinary profit	6,789,201	7,413,589
Extraordinary income
Gain on sales of non-current assets	1,423	2,238
Gain on sales of investment securities	-	65,414
Gain on liquidation of subsidiaries	-	11,887
Settlement received	100,000	-
Total extraordinary income	101,423	79,540
Extraordinary losses
Loss on sales and retirement of non-current assets	74,408	92,875
Loss on valuation of investment securities	27,510	-
Impairment loss	-	169,251
Loss related to infectious disease	-	68,127
Loss on liquidation of business	775,716	-
Total extraordinary losses	877,634	330,254
Profit before income taxes	6,012,990	7,162,874
Income taxes - current	2,103,322	2,038,091
Income taxes - deferred	(177,395)	46,021
Total income taxes	1,925,926	2,084,113
Profit	4,087,063	5,078,760
Profit attributable to owners of parent		4,087,063	5,078,760

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