Maruwa : 【Financial Results】Final Results of Fiscal Year 2021

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, 2022

(Based on Japanese GAAP)

Company name: MARUWA CO., LTD.

Stock exchange listing: Tokyo, Nagoya

Stock code: Representative: Inquiries:

Yukiko Morishita TEL [phone]
Scheduled date of ordinary general meeting of shareholders:	June 23, 2022
Scheduled date to file Securities Report:	June 24, 2022
Scheduled date to commence dividend payments:	June 24, 2022
Preparation of supplementary material on financial results:	Yes
Holding of financial results meeting:	Yes (for institutional investors and analysts)
(Amounts less than one million yen are rounded down)

5344 URLhttps://www.maruwa-g.com/ Chairman Sei Kanbe Planning Office Manager

1. Consolidated financial results for the year ended March 31, 2022 (from April 1, 2021 to March 31, 2022)

(1) Consolidated operating results

April 27, 2022

Percentages indicate year-on-year changes

Net sales	Operating profit	Ordinary profit	Profit attributable to owners of parent
Year ended March 31, 2022 Year ended March 31, 2021	Millions of yen 54,344 41,438	% 31.1 0.5	Millions of yen 18,215 10,248	% 77.7 9.7	Millions of yen 19,182 10,330	% 85.7 8.5	Millions of yen 13,350 6,935	% 92.5 17.7

Earnings per share	Diluted earnings per share	Profit attributable to owners of parent/equity	Ordinary profit/total assets	Operating profit/net sales
Year ended March 31, 2022 Year ended March 31, 2021	Yen 1,082.11 562.30	Yen - -	% 18.3 11.0	% 22.1 13.9	% 33.5 24.7

(2) Consolidated financial position

Total assets	Net assets	Equity ratio	Net assets per share
As of March 31, 2022 As of March 31, 2021	Millions of yen 95,899 78,059	Millions of yen 79,681 66,344	% 83.1 85.0	Yen 6,458.45 5,378.23

(3) Consolidated cash flows

Cash flows from operating activities	Cash flows from investing activities	Cash flows from financing activities	Cash and cash equivalents at end of period
Year ended March 31, 2022 Year ended March 31, 2021	Millions of yen 14,757 10,713	Millions of yen (3,522) (5,376)	Millions of yen (1,132) (801)	Millions of yen 44,385 33,888

2. Cash dividends

Annual dividends per share	Total cash dividends (Total)	Dividend payout ratio (Consolidated)	Ratio of dividends to net assets (Consolidated)
1st quarter-end	2nd quarter-end	3rd quarter-end	Fiscal year-end	Total
Year ended March 31, 2021 Year ended March 31, 2022	Yen - -	Yen 28.00 34.00	Yen - -	Yen 36.00 36.00	Yen 64.00 70.00	Millions of yen 789 863	% 11.4 6.5	% 1.3 1.2
Year ending March 31, 2023 (Forecast)	-	38.00	-	38.00	76.00	7.3

3. Forecast of consolidated financial results for the year ending March 31, 2023 (from April 1, 2022 to March 31, 2023)

Percentages indicate year-on-year changes

Net sales	Operating profit	Ordinary profit	Profit attributable to owners of parent	Earnings per share
Six months ending September 30, 2022 Full year	Millions of yen 27,000 60,000	% 9.2 10.4	Millions of yen 8,100 18,500	% 2.2 1.6	Millions of yen 8,100 18,500	% (0.2) (3.6)	Millions of yen 5,500 12,900	% (1.2) (3.4)	Yen 445.79 1,045.59

4. Notes

• (1) Changes in significant subsidiaries during the year ended March 31, 2022

  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:	Yes
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, 2022 12,372,000 shares

As of March 31, 2021 12,372,000 shares

As of March 31, 2022

12,372,000 shares As of March 31, 2021

12

Number of treasury shares at the end of the period

As of March 31, 2022 34,492 shares

As of March 31, 2021 36,327 shares

As of March 31, 2022

Average number of shares during the period

Year ended March 31, 2022 12,337,379 shares

Year ended March 31, 2021 12,333,994 shares

Year ended March 31, 2022 12,337,379 shares Year ended March 3

Consolidated financial statements Consolidated balance sheets

(Millions of yen)
As of March 31, 2021	As of March 31, 2022
Assets Current assets Cash and deposits Notes and accounts receivable - trade Notes receivable - trade Accounts receivable - trade Electronically recorded monetary claims - operating Merchandise and finished goods Work in process Raw materials and supplies Other Allowance for doubtful accounts	34,088 9,834 - - 1,267 1,641 2,277 2,463 2,148 (8)	44,621 - 473 12,876 1,810 1,632 2,648 3,706 2,389 (9)
Total current assets	53,714	70,149
Non-current assets Property, plant and equipment Buildings and structures Accumulated depreciation	17,012 (6,967)	17,717 (7,615)
Buildings and structures, net	10,044	10,101
Machinery, equipment and vehicles Accumulated depreciation	22,354 (17,149)	24,771 (19,292)
Machinery, equipment and vehicles, net	5,204	5,478
Land Construction in progress Other Accumulated depreciation	4,544 1,889 3,887 (3,238)	4,699 2,653 4,256 (3,666)
Other, net	648	590
Total property, plant and equipment	22,332	23,524
Intangible assets Other	260	298
Total intangible assets	260	298
Investments and other assets Investment securities Deferred tax assets Investment property, net Other Allowance for doubtful accounts	248 440 963 104 (4)	230 637 948 111 (0)
Total investments and other assets	1,752	1,927
Total non-current assets	24,345	25,750
Total assets	78,059	95,899

(9)

(7,615)

(19,292)

(3,666)

(0)

(Millions of yen)
As of March 31, 2021	As of March 31, 2022
Liabilities Current liabilities Notes and accounts payable - trade Electronically recorded obligations - operating Short-term borrowings Current portion of long-term borrowings Income taxes payable Provision for bonuses Provision for bonuses for directors (and other officers) Other	2,404 1,931 100 266 1,986 699 49 2,172	3,444 2,419 100 866 4,731 866 71 2,455
Total current liabilities	9,612	14,953
Non-current liabilities Long-term borrowings Deferred tax liabilities Other	1,599 160 342	733 153 377
Total non-current liabilities	2,103	1,264
Total liabilities	11,715	16,218
Net assets Shareholders' equity Share capital Capital surplus Retained earnings Treasury shares	8,646 12,005 46,796 (217)	8,646 12,017 59,274 (207)
Total shareholders' equity	67,231	79,732
Accumulated other comprehensive income Valuation difference on available-for-sale securities Foreign currency translation adjustment	119 (1,006)	104 (155)
Total accumulated other comprehensive income	(886)	(51)
Total net assets	66,344	79,681
Total liabilities and net assets	78,059	95,899

(207)

(155) (51)

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

(Millions of yen)
Fiscal year ended March 31, 2021	Fiscal year ended March 31, 2022
Net sales Cost of sales	41,438 23,074	54,344 27,018
Gross profit	18,363	27,326
Selling, general and administrative expenses	8,114	9,110
Operating profit	10,248	18,215
Non-operating income Interest income Rental income Foreign exchange gains Other	51 88 - 57	58 95 810 66
Total non-operating income	197	1,029
Non-operating expenses Interest expenses Foreign exchange losses Rent expenses on real estate for investments Other	6 50 46 11	7 - 44 11
Total non-operating expenses	115	63
Ordinary profit	10,330	19,182
Extraordinary income Gain on sale of non-current assets Gain on sale of investment securities Gain on liquidation of subsidiaries Subsidy income Compensation income	2 65 11 - -	3 9 - 481 186
Total extraordinary income	79	680
Extraordinary losses Loss on sale and retirement of non-current assets Loss on tax purpose reduction entry of non-current assets Impairment losses Loss related to infectious disease Other	258 - 169 68 28	16 463 - 41 8
Total extraordinary losses	525	531
Profit before income taxes	9,884	19,331
Income taxes - current Income taxes - deferred	2,905 43	6,208 (227)
Total income taxes	2,948	5,980
Profit	6,935	13,350
Profit attributable to owners of parent	6,935	13,350

(227)