Marumae : Financial Results Summary for Q3 FY2022

Nine months ended

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 Nine Months Ended

May 31, 2022 (Japanese GAAP) (Non-consolidated)

		June 30, 2022
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: July 13, 2022

Scheduled start date of dividend 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 Nine Months Ended May 31, 2022 (September 1, 2021 to May 31, 2022)

1. Operating Results (Cumulative)

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

	May 31, 2021		May 31, 2022
		%		%
Net sales (millions of yen)	3,615	13.6	6,097	68.6
Operating profit (millions of yen)	776	23.4	1,742	124.4
Ordinary profit (millions of yen)	772	28.7	1,744	125.8
Profit (millions of yen)	556	12.7	1,248	124.5
Earnings per share of common stock (yen)
Basic	43.43		97.67
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 third quarter of the fiscal year ending August 31, 2022 include the effects of the new standards. However, the changes in percent 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		May 31, 2022
Total assets (millions of yen)	9,742	11,918
Net assets (millions of yen)	6,327	6,730
Equity ratio (%)			64.9	56.5
Reference:	Equity: 6,730 million yen (as of May 31, 2022)
	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 third 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		22.00
3Q-end dividends per share (yen)	-		-
Year-end dividends per share (yen)	14.00	22.00	(Forecast)
Annual dividends per share (yen)	24.00	44.00	(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.

	Fiscal year ending
	August 31, 2022
		%
Net sales (millions of yen)	8,300	54.6
Operating profit (millions of yen)	2,300	90.5
Ordinary profit (millions of yen)	2,286	90.5
Profit (millions of yen)	1,667	84.7
Earnings per share (yen)	130.17

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 changes in percent 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
4. Number of shares issued and outstanding (common stock)
5. 1. Number of shares issued and outstanding (including treasury shares)

As of May 31, 2022:	13,053,000 shares
As of August 31, 2021:	13,053,000 shares
2. Number of treasury shares
As of May 31, 2022:	426,024 shares
As of August 31, 2021:	250,196 shares
3. Average number of shares outstanding (cumulative quarterly period)
For the nine months ended May 31, 2022:	12,782,964 shares
For the nine months ended May 31, 2021:	12,802,804 shares

• Status of quarterly review procedure implementation
  This Summary of Financial Results is exempt from quarterly review 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 that the Company judges to be reasonable. Actual financial results may differ significantly due to various factors. Please refer to "1. Qualitative Information on Quarterly Financial Results, (3) Description of Financial Estimates Information such as Financial Forecasts" on page 3 for the assumptions underlying the 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 on the Quarterly Financial Statements ..........................................................................	7

1

Marumae

1. Qualitative Information on Quarterly Financial Results

1. Description of Operating Results

During the nine months ended May 31, 2022, the Japanese economy showed signs of picking up.

In the semiconductor sector, which is our main sales sector, demand for memory has shown a tendency toward expansion, and the market environment has remained at a high level amidst growing demand for logic devices. However, while improving from the beginning of this year, parts shortages, such as for semiconductors, continue and have led to a bottleneck in the assembly and shipment of equipment. In the flat panel display (FPD) sector, investment in Generation 10.5 LCD panels has cooled, but capital investment in Generation 6 organic light-emitting diodes (OLEDs) for the Chinese market remained relatively robust, and new investment in Generation 8 OLEDs for the Chinese market has begun.

Under these economic conditions, business in the semiconductor sector has remained strong due to increased mass production orders from new customers in addition to a rise in orders from existing customers. Furthermore, although orders received decreased compared to the previous quarter due to the backlash caused by some customers' long-term advance orders, excess demand in the equipment market is expected to continue for a period of time. In the FPD sector, orders for LCDs remained stagnant while those for OLEDs remained strong. Orders for solar cell production equipment allowed the other sectors to grow significantly. On the cost front, due to the increase in production capacity, there were increases in depreciation and labor costs.

As a result, the operating results for the nine months ended May 31, 2022, are comprised of net sales of 6,097 million yen (year-on-year growth of 68.6%), operating profit of 1,742 million yen (year-on-year growth of 124.4%), ordinary profit of 1,744 million yen (year-on-year growth of 125.8%), and quarterly profit of 1,248 million yen (year-on-year growth of 124.5%).

Since the Company has only one segment, the precision parts business, a description by segment has been 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 59.2% year-on-year to 5,288 million yen, and net sales rose by 55.4% year-on- year to 4,538 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 64.0% year-on-year to 1,275 million yen, and net sales climbed by 160.8% year-on-year to 1,177 million yen.

Other Sectors

In other sectors, orders received rose by 275.3% year-on-year to 654 million yen, and net sales rose by 38.5% year-on-year to 212 million yen.

2