Pacific Industrial : Consolidated Financial Results For FY2019

April 30, 2020

Consolidated Financial Results

For the Fiscal Year Ended March 31, 2020

Company name: PACIFIC INDUSTRIAL CO., LTD.

Stock exchange listings: Tokyo and Nagoya Stock Exchanges (First Section)

Stock code number: 7250

URL: http://www.pacific-ind.co.jp/

Representative: Shinya Ogawa, President

Contact person: Satoshi Watanabe, General Manager of Accounting Dept.

Telephone: [phone]

(Amounts less than one million yen are omitted)

1. Consolidated Financial Results for FY 2019 (From April 1, 2019 to March 31, 2020)

(1) Consolidated financial results

(%: changes from the same period of the previous fiscal year)

	Net sales			Operating income	Ordinary income			Net income
	Millions of yen		%	Millions of yen	%	Millions	of yen	%		Millions of yen		%
FY 2019	165,969		14.4	10,511	2.0	11,130	△5.4		7,256		△16.9
FY 2018	145,030		23.2	10,307	27.8	11,767	24.1		8,730		18.1
(Note) Comprehensive income: FY2019 : 3,465 million yen ( △48.4%)	FY2018 : 6,711 million yen ( △21.4% )
	Net income		Diluted net income		Return on equity		Return on asset		Operating margin
	per share			per share
	Yen			Yen			%			%				%
FY 2019	120.12			119.63			7.5			5.5				6.3
FY 2018	144.80			143.95			9.3			6.5				7.1

(Reference) Share of (profit) loss of entities accounted for using equity method: FY2019 : 345 million yen FY2018 : 688 million yen

(2) Consolidated financial position

		Total assets		Net assets	Equity ratio		Net assets per share
		Millions of yen		Millions of yen		%	Yen
FY 2019		204,280		98,422		47.8	1,614.01
FY 2018		203,831		97,075		47.0	1,590.09
(Reference) Equity:	FY2019: 97,557 million yen	FY2018: 95,900 million yen

(3) Cash flow

	Cash flows	Cash flows	Cash flows	Cash and cash
	from operating activities	from investing activities	from financing activities	equivalent at end of period
	Millions of yen	Millions of yen	Millions of yen	Millions of yen
FY 2019	21,190	△24,270	90	18,066
FY 2018	18,941	△40,595	29,231	21,488

2. Cash Dividends

		Annual dividends per share		Total annual	Payout ratio		Dividend
	At end of	At end of	At end of				on equity
	At year-end	Total		dividends	(consolidate)
	1st quarter	2nd quarter	3rd quarter		(consolidated)
	Yen	Yen	Yen	Yen	Yen	Millions of yen	%	%
FY2018	―	14.00	―	19.00	33.00	2,004	22.8	2.1
FY2019	―	16.00	―	14.00	30.00	1,826	25.0	1.9
FY2020	―	―	―	―	―			―
(forecast)

Note: The dividend forecast for FY2020 is undecided at present.

3. Forecasts of Consolidated Financial Results for FY2020 (From April 1, 2020 to March 31, 2021)

Forecast of consolidated financial results for FY2020 is not decided because it is difficult to reasonably calculate the

impact of COVID-19 at present.

* Notes

(1) Changes in significant subsidiaries during the period: None

(Changes in specified subsidiaries resulting in changes in scope of consolidation)

Newly included:	―	(company name)
Newly excluded:	―	(company name)

(2) Changes in accounting policies, accounting estimates and restatements

• Changes in accounting policies with revision of accounting standards : None
  ② Changes other than ① : None
  ③ Changes in accounting estimates : None
  ④ Restatement : None

(3) Number of shares issued and outstanding (common stock)

• Number of shares outstanding at end of period (including treasury stock)

• Number of shares of treasury stock at end of period

• Average number of shares during the year ended March 31

FY2019	61,312,896	shares	FY2018	61,312,896	shares
FY2019	868,865	shares	FY2018	1,001,484	shares
FY2019	60,411,973	shares	FY2018	60,290,304	shares

(Reference) Summary of non-consolidated business results

1. Non-Consolidated Financial Result for FY2019 (From April 1, 2019 to March 31, 2020) (1)Non-consolidatedfinancial results

(%: changes from the same period of the previous fiscal year)

		Net sales		Operating income	Ordinary income	Net income
		Millions of yen		%	Millions of yen		%	Millions of yen		%	Millions of yen	%
FY 2019		89,901		7.6	5,212		△15.2	7,370		△6.4	4,038	△31.5
FY 2018		83,562		16.5	6,146		5.3	7,871		9.2	5,895	11.6
		Net income		Diluted net income
		per share		per share
				Yen			Yen
FY 2019				66.35			66.08
FY 2018				97.06			96.49
(1)Non-consolidated financial position
		Total assets		Net assets		Equity ratio		Net assets per share
		Millions of yen	Millions of yen			%		Yen
FY 2019		156,731			73,753			46.9		1,208.17
FY 2018		153,607			72,654			47.1		1,191.24
(Reference) Equity:	FY2019: 73,569 million yen FY2018: 72,380 million yen

* Indication regarding status of performance of audit procedures

This summary of financial results is not subject to the audit procedures in accordance with the Financial Instruments and Exchange Act. As of the time of disclosure of this summary of financial results, the audit procedures for consolidated financial statements under the Financial Instruments and Exchange Act have not been completed.

• Explanation about appropriate use of the financial results forecasts, and other noteworthy matters Statements related to the future, including the forecasts of financial results, described in this document are based on information currently available to Pacific industrial and on certain assumptions deemed by Pacific industrial to be rational.

Consolidated Balance Sheets

					(Mmillion Yen)
	FY2018	FY2019		FY2018	FY2019
	(As of Mar.31, 2019)	(As of Mar.31, 2020)		(As of Mar.31, 2019)	(As of Mar.31, 2020)
（Assets）			（Liabilities）
Current Assets	64,320	61,060	Current Liabilities	45,151	42,807
Cash and time deposits	21,763	18,315	Trade notes and accounts payable	10,626	10,876
Trade notes and accounts receivable	23,949	24,452	Electronically recorded obligations - operating	8,447	7,017
Merchandise and finished goods	5,863	6,522	Short-term borrowings	4,769	4,720
Work in process	5,393	4,638	Current portion of long-term borrowings	5,285	6,450
Raw materials and supplies	3,414	3,829	Accounts payable	6,509	4,457
Accounts receivable	3,366	2,701	Accrued expenses	2,163	2,307
Other current assets	652	673	Income taxes payable	1,924	583
Less: Allowance for doubtful accounts	△ 82	△ 74	Consumption taxes payable	111	126
			Deposit received	784	642
			Allowance for bonuses	1,615	1,563
Fixed Assets	139,510	143,219	Allowance for bonuses to directors	60	57
			Notes concerning installations	127	94
Property, Plant and Equipment	92,178	98,361	Other current liabilities	2,727	3,910
Buildings and structures	23,332	26,155
Machinery and vehicles	37,002	41,729
Tools, Furniture, and fixtures	7,605	5,499	Noncurrent Liabilities	61,604	63,050
Land	7,627	9,884
Lease Asset	412	1,219	Long-term borrowings	51,529	52,471
Construction in progress	16,197	13,873	Deferred tax liabilities	8,181	8,126
			Provision for directors retirement benefit	191	184
Intangible Fixed Assets	15,035	13,682	Net defined benefit liabilities	648	682
Goodwill	8,803	8,056	Other noncurrent liabilities	1,052	1,586
Other	6,232	5,626
Investments and Other Assets	32,296	31,175	Total Liabilities	106,755	105,858
Investments in securities	26,675	25,796
Long-term loans	64	59
Deferred tax assets	273	248	(Net assets)
Net defined benefit asset	4,473	4,251	Shareholders' Equity	82,973	88,220
Other fixed assets	812	822	Capital stock	7,316	7,316
Less: Allowance for doubtful accounts	△ 3	△ 3	Capital surplus	7,626	7,705
			Retained earnings	68,315	73,443
			Less:Treasury stock at cost	△ 285	△ 246
			Valuation and Translation Adjustment	12,927	9,337
			Valuation difference on available securities	11,480	10,653
			Foreign currency translation adjustments	1,015	△ 1,139
			Remeasurement of defined benefit plan	431	△ 176
			Subscription rights to shares	274	184
			Minority Interests	900	680
			Total Net Assets	97,075	98,422
Total Assets	203,831	204,280	Total Liabilities and Net Assets	203,831	204,280

Consolidated Statements of Income

		(Million Yen)
	FY2018	FY2019
	For the Year Ended	For the Year Ended
	Mar.31, 2019	Mar.31, 2020
Net sales	145,030	165,969
Cost of sales	123,417	142,533
Gross profit	21,612	23,436
Selling, general and administrative expenses	11,305	12,924
Operating Income	10,307	10,511
Non-operating income	1,950	1,586
Interest income	90	87
Dividend income	624	639
Equity in earnings of affiliated companies	688	345
Foreign exchange gain	228	-
Other non-operating income	318	513
Non-operating Expenses	490	967
Interest expense	260	321
Commission fee	190	1
Foreign exchange losses	-	568
Other non-operating expense	39	77
Ordinary income	11,767	11,130
Extraordinary income	132	-
Gain on sales of fixed assets	132	-
Extraordinary Losses	92	1,583
Loss on sales and retirements of fixed assets	92	248
Impairment loss	-	1,334
Income before income taxes and non controlling interests	11,807	9,546
Income taxes	3,043	2,458
Current term net profit	8,764	7,088
Profit (loss) attributable to non-controlling interests	34	△ 168
Profit attributable to the owners of parent	8,730	7,256