Takara Standard : Summary of Consolidated Financial Results for the Three Months Ended June 30, 2020

Note: This document has been translated from a part of 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.

August 3, 2020

	Summary of Consolidated Financial Results
	for the Three Months Ended June 30, 2020
	(under Japanese GAAP)
Company name: TAKARA STANDARD CO., LTD.
Stock listing:	First Section of the Tokyo Stock Exchange
Stock code:	7981
URL:	https://www.takara-standard.co.jp/
Representative:	Takeo Watanabe, President
Inquiries:	Kaoru Umeda, Executive Officer and General Manager of Accounting Department,
	Administration Division
	URL: https://forms.takara-standard.co.jp/webapp/form/22048_aqgb_6/index.do

Scheduled date to file quarterly securities report: August 7, 2020

Scheduled date to commence dividend payments: -

Preparation of supplementary material on quarterly financial results: None

Holding of quarterly financial results presentation meeting: None

(Million yen with fractional amounts discarded, unless otherwise noted)

1. Consolidated financial results for the three months ended June 30, 2020 (from April 1, 2020 to June 30, 2020)

(1) Consolidated operating results (cumulative)			(Percentages indicate year-on-year changes.)
		Net sales		Operating profit	Ordinary profit	Profit attributable to
			owners of parent
Three months ended	Million yen		%	Million yen		%	Million yen		%	Million yen		%
June 30, 2020	44,092		(9.0)	1,337		(59.5)	1,535		(56.4)	1,011		(57.4)
June 30, 2019	48,442		5.1	3,299		20.4	3,520		19.4	2,375		19.6
Note:	Comprehensive	income
	Three months ended June 30, 2020: ¥2,337 million [15.5%]
	Three months ended June 30, 2019: ¥2,024 million [(9.0)%]
		Basic earnings	Diluted earnings
		per share		per share
Three months ended	Yen		Yen
June 30, 2020	13.83		-
June 30, 2019	32.49		-
(2) Consolidated financial position
		Total assets		Net assets	Equity ratio		Net assets per share
As of		Million yen	Million yen			%			Yen
June 30, 2020	251,595			167,835			66.7		2,294.77
March 31, 2020	256,569			166,741			65.0		2,279.81
Reference:	Equity
	As of June 30, 2020: ¥167,835 million		As of March 31, 2020: ¥166,741 million

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2. Dividends

			Annual dividends
	First quarter-end	Second quarter-end	Third quarter-end	Fiscal year-end	Total
	Yen	Yen	Yen	Yen	Yen
Fiscal year ended	-	17.00	-	17.00	34.00
March 31, 2020
Fiscal year ending	-
March 31, 2021
Fiscal year ending		17.00	-	17.00	34.00
March 31, 2021
(Forecasts)

(Note) Revisions to the forecast of dividends most recently announced: Yes

3. Consolidated earnings forecasts for the fiscal 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	Basic earnings
	owners of parent	per share
	Million yen	%	Million yen	%	Million yen	%	Million yen	%	Yen
Six months ending	91,000	(10.0)	2,800	(66.3)	3,000	(65.0)	1,900	(67.6)	25.98
September 30, 2020
Full year	188,000	(6.7)	6,000	(52.5)	6,500	(50.4)	4,100	(52.6)	56.06

(Note) Revisions to the consolidated earnings forecasts most recently announced: Yes

* Notes

1. Changes in significant subsidiaries during the period (changes in specified subsidiaries resulting in the change in scope of consolidation): None
2. Application of special accounting for preparing quarterly consolidated financial statements: None
3. Changes in accounting policies, changes in accounting estimates, and restatement of prior period financial statements after error corrections
4. 1. Changes in accounting policies due to revisions to accounting standards and other regulations: None
   2. Changes in accounting policies due to other reasons: None
   3. Changes in accounting estimates: None
   4. Restatement of prior period financial statements after error corrections: None
5. Number of issued shares (common stock)
6. 1. Total number of issued shares at the end of the period (including treasury shares)

As of June 30, 2020	73,937,194 shares
As of March 31, 2020	73,937,194 shares

1. Number of treasury shares at the end of the period

As of June 30, 2020	798,868 shares
As of March 31, 2020	798,868 shares

1. Average number of outstanding shares during the period (cumulative from the beginning of the fiscal year)

Three months ended June 30, 2020	73,138,326 shares
Three months ended June 30, 2019	73,138,528 shares

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• Quarterly financial results reports are exempt from quarterly review conducted by certified public accountants or an audit corporation.
• Proper use of earnings forecasts, and other special matters
  Forward-looking statements provided in this document, including earnings forecasts, are based on the information currently available to the Company and certain assumptions considered reasonable. Such statements are included without any guarantee as to their future achievement. Actual business and other results may differ materially from the forecasts depending on various factors.

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Quarterly Consolidated Financial Statements

(1) Quarterly consolidated balance sheets

				(Millions of yen)
		As of March 31, 2020		As of June 30, 2020
Assets
Current assets
Cash and deposits	74,633	71,265
Notes and accounts receivable - trade	50,010	45,686
Electronically recorded monetary claims -	9,182		9,031
operating
Merchandise and finished goods	9,154	9,448
Work in process	2,041	2,899
Raw materials and supplies	3,912	4,080
Other	268	1,215
Allowance for doubtful accounts		(17)	(15)
Total current assets		149,186	143,613
Non-current assets
Property, plant and equipment
Buildings and structures, net	26,869	26,561
Land	40,260	40,240
Other, net		17,204	16,987
Total property, plant and equipment		84,335	83,789
Intangible assets	1,797	1,748
Investments and other assets
Investment securities	12,078	13,836
Other	9,192	8,628
Allowance for doubtful accounts		(22)	(20)
Total investments and other assets		21,249	22,444
Total non-current assets		107,382	107,982
Total assets		256,569	251,595

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			(Millions of yen)
		As of March 31, 2020	As of June 30, 2020
Liabilities
Current liabilities
Notes and accounts payable - trade	21,274	19,997
Electronically recorded obligations - operating	16,935	18,163
Short-term borrowings	9,700	9,700
Income taxes payable	2,758	457
Other	14,045	15,273
Total current liabilities	64,713	63,591
Non-current liabilities
Retirement benefit liability	23,196	18,282
Other	1,917	1,886
Total non-current liabilities	25,114	20,168
Total liabilities	89,828	83,759
Net assets
Shareholders' equity
Share capital	26,356	26,356
Capital surplus	30,736	30,736
Retained earnings	109,310	109,043
Treasury shares	(933)	(933)
Total shareholders' equity	165,469	165,202
Accumulated other comprehensive income
Valuation difference on available-for-sale	3,882	5,099
securities
Deferred gains or losses on hedges	(8)	(7)
Revaluation reserve for land	497	532
Remeasurements of defined benefit plans	(3,099)	(2,992)
Total accumulated other comprehensive income	1,271	2,632
Total net assets	166,741	167,835
Total liabilities and net assets		256,569	251,595

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1. Quarterly consolidated statements of income and consolidated statements of comprehensive income Quarterly consolidated statements of income (cumulative)

			(Millions of yen)
		Three months ended	Three months ended
		June 30, 2019	June 30, 2020
Net sales	48,442	44,092
Cost of sales	30,656	28,447
Gross profit	17,785	15,644
Selling, general and administrative expenses	14,486	14,306
Operating profit	3,299	1,337
Non-operating income
Interest income	1	1
Dividend income	207	196
Other	31	20
Total non-operating income	240	218
Non-operating expenses
Interest expenses	15	15
Other	3	4
Total non-operating expenses	19	20
Ordinary profit	3,520	1,535
Extraordinary income	-	-
Extraordinary losses
Loss on retirement of non-current assets	44	63
Loss on sales of non-current assets	10	0
Total extraordinary losses	55	64
Profit before income taxes	3,465	1,471
Income taxes	1,089	459
Profit	2,375	1,011
Profit attributable to owners of parent		2,375	1,011

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Quarterly consolidated statements of comprehensive income (cumulative)

				(Millions of yen)
		Three months ended		Three months ended
		June 30, 2019		June 30, 2020
Profit	2,375	1,011
Other comprehensive income
Valuation difference on available-for-sale securities,	(455)		1,217
net of tax
Deferred gains or losses on hedges, net of tax	0	1
Remeasurements of defined benefit plans, net of tax		103	107
Total other comprehensive income		(351)	1,326
Comprehensive income		2,024	2,337
Comprehensive income attributable to
Comprehensive income attributable to owners of	2,024		2,337
parent
Comprehensive income attributable to non-	-		-
controlling interests

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