Maruwa Regulatory News (MAW)

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 Three Months Ended June 30, 2016

(Based on Japanese GAAP)

July 28, 2016

Company name:

MARUWA CO., LTD.

Stock exchange listing:

Tokyo, Nagoya

Stock code:

5344

URL http://www.maruwa-g.com/

Representative:

President and Representative Director

Sei Kanbe

Inquiries:

General Manager of Administrative Division

Tamaki Nozoki

TEL 0561-51-0839

Scheduled date to file Quarterly Securities Report:

August 10, 2016

Scheduled date to commence dividend payments:

-

Preparation of supplementary material on quarterly financial results:

No

Holding of quarterly financial results meeting:

No

(Amounts are rounded off to the nearest million yen)

(1) Consolidated operating results (cumulative)

Percentages indicate year-on-year changes

Net sales

Operating income

Ordinary income

Profit attributable to owners of parent

Millions of yen

%

Millions of yen

%

Millions of yen

%

Millions of yen

%

Three months ended June 30, 2016

7,341

2.1

1,101

69.0

819

10.0

509

15.0

Three months ended June 30, 2015

7,189

(4.3)

651

44.7

744

35.4

442

23.6

Earnings per share

Diluted earnings per share

Yen

Yen

Three months ended June 30, 2016

41.18

41.17

Three months ended June 30, 2015

35.81

35.81

Total assets

Net assets

Equity ratio

Millions of yen

Millions of yen

%

As of June 30, 2016

46,928

41,036

87.4

As of March 31, 2016

48,550

41,700

85.9

Annual dividends per share

2nd quarter-end

3rd quarter-end

Fiscal year-end

Total

Yen

Yen

Yen

Yen

Yen

Year ended March 31, 2016

-

19.00

-

19.00

38.00

Year ending March 31, 2017

-

Year ending March 31, 2017 (Forecast)

20.00

-

20.00

40.00

Percentages indicate year-on-year changes

Net sales

Operating income

Ordinary income

Profit attributable to owners of parent

Earnings per share

Millions of yen

%

Millions of yen

%

Millions of yen

%

Millions of yen

%

Yen

Six months ending

September 30, 2016

14,200

(2.5)

1,600

8.7

1,650

14.0

1,050

23.2

85.02

Full year

31,200

2.0

4,350

14.1

4,450

20.2

2,850

24.6

230.77

(1) Changes in significant subsidiaries during the three months ended June 30, 2016

(changes in specified subsidiaries resulting in the change in scope of consolidation):

No

(2) Application of special accounting methods for preparing quarterly consolidated financial statements:

No

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

As of June 30, 2016

12,372,000

 shares

As of March 31, 2016

12,372,000

 shares

As of June 30, 2016

22,083

 shares

As of March 31, 2016

22,033

 shares

Three months ended June 30, 2016

12,349,962

 shares

Three months ended June 30, 2015

12,350,017

 shares

(Thousands of yen)

As of March 31, 2016

As of June 30, 2016

Assets

Current assets

Cash and deposits

15,379,533

15,254,900

Notes and accounts receivable - trade

8,042,230

7,216,586

Electronically recorded monetary claims - operating

572,146

586,120

Merchandise and finished goods

2,489,838

2,521,151

Work in process

1,702,316

1,661,900

Raw materials and supplies

3,095,281

3,228,338

Deferred tax assets

285,439

143,236

Other

833,428

542,849

Allowance for doubtful accounts

(1,990)

(3,212)

Total current assets

32,398,221

31,151,868

Non-current assets

Property, plant and equipment

Buildings and structures

10,078,873

9,842,036

Accumulated depreciation

(5,519,695)

(5,490,065)

Buildings and structures, net

4,559,178

4,351,971

Machinery, equipment and vehicles

18,712,379

17,993,329

Accumulated depreciation

(13,799,300)

(13,456,256)

Machinery, equipment and vehicles, net

4,913,079

4,537,073

Land

3,503,763

3,667,377

Construction in progress

276,133

521,775

Other

3,553,267

3,404,845

Accumulated depreciation

(3,007,107)

(2,887,936)

Other, net

546,160

516,910

Total property, plant and equipment

13,798,312

13,595,105

Intangible assets

Goodwill

135,905

63,359

Other

433,269

288,217

Total intangible assets

569,174

351,576

Investments and other assets

1,784,068

1,829,420

Total non-current assets

16,151,555

15,776,101

Total assets

48,549,776

46,927,969

(Thousands of yen)

As of March 31, 2016

As of June 30, 2016

Liabilities

Current liabilities

Notes and accounts payable - trade

3,068,282

2,870,103

Current portion of long-term loans payable

137,984

127,484

Income taxes payable

589,934

282,328

Provision for bonuses

503,850

236,823

Provision for directors' bonuses

23,750

2,375

Notes payable - facilities

169,681

95,588

Other

1,824,564

1,752,064

Total current liabilities

6,318,045

5,366,765

Non-current liabilities

Long-term loans payable

115,409

91,438

Provision for environmental measures

13,527

13,527

Deferred tax liabilities

76,973

100,545

Other

325,379

319,766

Total non-current liabilities

531,288

525,276

Total liabilities

6,849,333

5,892,041

Net assets

Shareholders' equity

Capital stock

8,646,720

8,646,720

Capital surplus

11,946,793

11,946,793

Retained earnings

21,654,339

21,928,206

Treasury shares

(47,072)

(47,229)

Total shareholders' equity

42,200,781

42,474,490

Accumulated other comprehensive income

Valuation difference on available-for-sale securities

53,057

28,105

Foreign currency translation adjustment

(555,170)

(1,468,442)

Total accumulated other comprehensive income

(502,113)

(1,440,337)

Subscription rights to shares

1,775

1,775

Total net assets

41,700,443

41,035,928

Total liabilities and net assets

48,549,776

46,927,969

(Thousands of yen)

Three months ended

June 30, 2015

Three months ended

June 30, 2016

Net sales

7,189,466

7,341,114

Cost of sales

4,681,670

4,573,757

Gross profit

2,507,796

2,767,357

Selling, general and administrative expenses

1,856,417

1,666,496

Operating income

651,380

1,100,861

Non-operating income

Interest income

7,170

7,147

Rent income

22,890

9,501

Foreign exchange gains

54,586

-

Other

21,690

8,359

Total non-operating income

106,336

25,007

Non-operating expenses

Interest expenses

3,125

598

Rent expenses on real estate for investments

6,997

10,798

Foreign exchange losses

-

286,325

Other

3,722

9,561

Total non-operating expenses

13,844

307,282

Ordinary income

743,872

818,586

Extraordinary income

Gain on sales of non-current assets

325

-

Total extraordinary income

325

-

Extraordinary losses

Loss on sales and retirement of non-current assets

-

6,054

Loss on sales of investment securities

6,816

-

Total extraordinary losses

6,816

6,054

Profit before income taxes

737,380

812,532

Income taxes - current

216,380

197,710

Income taxes - deferred

78,769

106,306

Total income taxes

295,148

304,016

Profit

442,232

508,516

Profit (loss) attributable to non-controlling interests

(0)

-

Profit attributable to owners of parent

442,232

508,516

(Thousands of yen)

Three months ended

June 30, 2015

Three months ended

June 30, 2016

Profit

442,232

508,516

Other comprehensive income

Valuation difference on available-for-sale securities

18,596

(24,952)

Foreign currency translation adjustment

96,599

(913,272)

Total other comprehensive income

115,195

(938,224)

Comprehensive income

557,427

(429,708)

Comprehensive income attributable to

Comprehensive income attributable to owners of parent

557,427

(429,708)

Comprehensive income attributable to non-controlling interests

(0)

-