Marumae : Presentation Material for Financial Results Q2 FY2022

Tokyo Stock Exchange (TSE): 6264

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.

1. Overview of Financial Results

P/L Analysis

P/L Second Quarter of the Fiscal Year Ended August 31, 2021	Second Quarter of the Fiscal Year Ending August 31, 2022
Amount (million yen)Ratio (%)	Amount (million yen)Ratio (%) YoY change ratio (%)
Orders received* 2,526 ー 4,893 ー 93.7
Balance of the orders received* 1,077 ー	2,819 ー 161.8
Net sales* 2,299 100.0 3,962 100.0 72.3
Cost of sales* 1,588 69.1	2,413 60.9 51.9
Gross profit 710 30.9 1,548 39.1 118.0
Selling and administrative expenses 286 12.5	373 9.4 30.5
Operating profit 424 18.4 1,175 29.7 177.1
Ordinary profit 422 18.4	1,171 29.6 177.2
Extraordinary loss (income) 0 0.0 (0) 0.0 (804.1)
Profit 294 12.8	837 21.1 184.3
EPS (yen) 23.01 ー 65.40 ー

Point

• 1. Status of orders received* Semiconductor sector: 3,731 million yen

  (87.7% YoY increase)

  FPD sector: 1,014 million yen

  (157.0% YoY increase) Other sectors: 147 million yen

  (2.6% YoY increase)

• 2. Net sales*

  72.3% YoY increase

  *The details for each sector are listed on the next page.

• 3. Cost of sales*

  Material costs*: 341 million yen increase

  (109.2% YoY increase)

  Outsourcing expenses: 357 million yen increase

  (131.2% YoY increase)

  Labor costs: 226 million yen increase

  (45.4% YoY increase) Depreciation: 43 million yen increase

  (15.8% YoY increase)

• 4. Selling and administrative expenses

  Research and development expenses: 50 million yen increase

  Personnel expenses: 28 million yen increase

*Orders received and balance of the orders received for the second quarter of the fiscal year ending August 31, 2022, include materials supplied at cost. The percentage change from the same period of the previous fiscal year in net sales, cost of sales, and material costs for the said second quarter are calculated based on the actual results for the same quarter of the previous fiscal year before the application of the "Accounting Standard for Revenue Recognition," which are calculated in the same manner on the following pages.

(Unit: million yen)

2,000

1,800 1,600 1,400 1,200 1,000

800 600 400 200

0

1. Record sales for semiconductors, and favorable FPD sales

Other sectors: 73 million yen (22.6% YoY decrease)

Semiconductor sector: 2,996 million yen (60.2% YoY increase)

• • Increase in orders received for solar cell production equipment components

• • Favorable semiconductor market environment and a new record high in this quarter

2. Improved profits in line with increased sales

FPD sector: 781 million yen (183.4% YoY increase)

• • Slight decrease in profit/loss due to an increase in provision for loss on orders received, etc. in the second quarter.

  • • New record high in this quarter due to improved market and higher market share

• • Profit: 837 million yen (184.3% YoY increase)

*This graph shows quarterly figures, but the numbers in the comments for each point are those for the fiscal year under review.

Change in Provision for Loss on Orders Received and Loss on Valuation of Inventories, etc.

1．Overview of Financial Results

(Inventories)

(Order Backlog) (Unit: million yen)

Effect of provision for loss on orders received and loss on valuation of inventories

(Provision for loss on orders received + loss on valuation of inventories

(Unit: million yen)

3,000

2,500

2,000

1,500

1,000

500

0

Point

900

800 700 600 500 400 300 200 100 0

The difference of 39 million yen is an aggravating factor in P/L

•  In the second quarter, there was a 39-million-yen deterioration in profit/loss due to provision for loss on orders received and loss on valuation of inventories.

•  Provision for loss on orders received and loss on valuation of inventories are calculated by extracting the expected losses from the uninspected order backlog based on past results and estimates of additional costs to be incurred for each product. Since orders that are expected to incur losses are aggregated, there is a high likelihood that losses will rise as order backlogs increase. This provision is also likely to rise as the hourly unit cost increases with a lower factory utilization rate.

* "Estimates of valuation of work in process and provision for loss on orders received" related to provision for loss on orders received and loss on valuation of inventories was selected as "Key Audit Matters (KAM)" in the previous period.

Fiscal year ended B/S (Unit: million yen) Aug 2021 End of Fiscal Year	Fiscal year ending Aug 2022 End of Q2
Current assets 4,813	6,354
Cash & deposits 2,505 3,030
Trade receivables (Notes receivable - trade, accounts receivable - trade, and electronically recorded monetary claims - operating) 1,685	2,451
Inventories 597 843
Non-current assets 4,929	5,473
Buildings & land 2,358 2,396
Machinery & equipment 2,273	2,680
Current liabilities 1,452 1,913
Interest-bearing liabilities (short-term)* 427	552
Non-current liabilities 1,963 2,912
Long-term borrowings 1,923	2,853
Total liabilities 3,415 4,826
Total net assets 6,327	7,001
Total assets 9,742 11,827

*Interest-bearing liabilities (short-term): Short-term borrowings + current portion of long-term borrowings

• 1. Assets: 11,827 million yen (2,084 million yen increase from the end of the previous fiscal year)

  • • Trade receivables: 766 million yen increase

  • • Cash and deposits: 525 million yen increase

• 2. Liabilities: 4,826 million yen (1,410 million yen increase from the end of the previous fiscal year)

  • • Long-term borrowings: 930 million yen increase (Financing in place for capital expenditures)

  • • Income taxes payable: 170 million yen increase

(3U.niNt: et assets: 7,001 million yen (674 million yen increase from

million yen)

the end of the previous fiscal year)

• • Retained earnings: 658 million yen increase

• • Equity ratio: 64.9% → 59.2%