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, 2020

(Based on Japanese GAAP)

July 27, 2020

Company name:

MARUWA CO., LTD.

Stock exchange listing:

Tokyo, Nagoya

Stock code:

5344

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

Representative:

President and Representative Director

Sei Kanbe

Inquiries:

Executive Officer

Tamaki Nozoki

TEL 0561-51-0839

Scheduled date to file Quarterly Securities Report:

August 7, 2020

Scheduled date to commence dividend payments:

-

Preparation of supplementary material on quarterly financial results:

No

Holding of quarterly financial results meeting:

No

(Amounts less than one million yen are rounded down)

(1) Consolidated operating results (cumulative)

Percentages indicate year-on-year changes

Net sales

Operating profit

Ordinary profit

Profit attributable to owners of parent

Millions of yen

%

Millions of yen

%

Millions of yen

%

Millions of yen

%

Three months ended June 30, 2020

8,981

(13.5)

2,154

(3.5)

2,158

(2.0)

1,445

(4.6)

Three months ended June 30, 2019

10,382

11.3

2,233

8.9

2,203

(2.1)

1,515

0.4

Earnings per share

Diluted earnings per share

Yen

Yen

Three months ended June 30, 2020

117.21

-

Three months ended June 30, 2019

122.82

-

Total assets

Net assets

Equity ratio

Millions of yen

Millions of yen

%

As of June 30, 2020

71,953

60,631

84.3

As of March 31, 2020

70,681

59,453

84.1

Annual dividends per share

2nd quarter-end

3rd quarter-end

Fiscal year-end

Total

Yen

Yen

Yen

Yen

Yen

Year ended March 31, 2020

-

26.00

-

26.00

52.00

Year ending March 31, 2021

-

Year ending March 31, 2021 (Forecast)

28.00

-

28.00

56.00

Percentages indicate year-on-year changes

Net sales

Operating profit

Ordinary profit

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, 2020

16,500

(18.9)

3,400

(18.1)

3,400

(18.6)

2,300

(19.8)

186.50

Full year

36,500

(11.5)

7,900

(15.5)

7,900

(17.0)

5,450

(7.5)

441.94

(1) Changes in significant subsidiaries during the three months ended June 30, 2020

(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:

No

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, 2020

12,372,000

 shares

As of March 31, 2020

12,372,000

 shares

As of June 30, 2020

38,313

 shares

As of March 31, 2020

40,163

 shares

Three months ended June 30, 2020

12,331,951

 shares

Three months ended June 30, 2019

12,337,951

 shares

(Thousands of yen)

As of March 31, 2020

As of June 30, 2020

Assets

Current assets

Cash and deposits

29,334,349

30,955,925

Notes and accounts receivable - trade

9,542,199

8,038,120

Electronically recorded monetary claims - operating

1,295,434

1,211,264

Merchandise and finished goods

2,061,801

2,057,523

Work in process

2,393,622

2,585,007

Raw materials and supplies

2,756,758

2,754,495

Other

1,757,311

1,610,717

Allowance for doubtful accounts

(8,180)

(7,903)

Total current assets

49,133,297

49,205,150

Non-current assets

Property, plant and equipment

Buildings and structures

12,650,214

12,668,977

Accumulated depreciation

(6,505,584)

(6,576,128)

Buildings and structures, net

6,144,629

6,092,849

Machinery, equipment and vehicles

20,998,043

20,916,530

Accumulated depreciation

(16,567,320)

(16,509,377)

Machinery, equipment and vehicles, net

4,430,722

4,407,153

Land

4,421,234

4,420,539

Construction in progress

3,445,592

4,896,180

Other

3,499,670

3,560,779

Accumulated depreciation

(2,898,143)

(2,966,072)

Other, net

601,527

594,706

Total property, plant and equipment

19,043,706

20,411,429

Intangible assets

Goodwill

195,975

182,613

Other

254,672

248,988

Total intangible assets

450,648

431,602

Investments and other assets

2,053,978

1,905,205

Total non-current assets

21,548,333

22,748,237

Total assets

70,681,631

71,953,388

(Thousands of yen)

As of March 31, 2020

As of June 30, 2020

Liabilities

Current liabilities

Notes and accounts payable - trade

1,898,714

2,402,955

Electronically recorded obligations - operating

1,619,355

1,992,723

Short-term borrowings

900,000

900,000

Income taxes payable

827,864

527,753

Provision for bonuses

608,949

334,701

Provision for bonuses for directors (and other officers)

63,000

3,333

Other

3,382,929

3,177,604

Total current liabilities

9,300,813

9,339,071

Non-current liabilities

Long-term borrowings

1,200,000

1,200,000

Deferred tax liabilities

351,419

395,740

Other

375,829

387,006

Total non-current liabilities

1,927,248

1,982,746

Total liabilities

11,228,062

11,321,818

Net assets

Shareholders' equity

Share capital

8,646,720

8,646,720

Capital surplus

11,992,492

11,996,508

Retained earnings

40,526,723

41,651,296

Treasury shares

(239,524)

(228,593)

Total shareholders' equity

60,926,411

62,065,930

Accumulated other comprehensive income

Valuation difference on available-for-sale securities

70,521

111,241

Foreign currency translation adjustment

(1,543,364)

(1,545,602)

Total accumulated other comprehensive income

(1,472,842)

(1,434,360)

Total net assets

59,453,569

60,631,569

Total liabilities and net assets

70,681,631

71,953,388

(Thousands of yen)

Three months ended

June 30, 2019

Three months ended

June 30, 2020

Net sales

10,382,863

8,981,962

Cost of sales

6,108,659

4,909,773

Gross profit

4,274,204

4,072,189

Selling, general and administrative expenses

2,040,244

1,917,352

Operating profit

2,233,960

2,154,836

Non-operating income

Interest income

13,782

14,537

Rental income

24,225

26,106

Other

7,641

17,597

Total non-operating income

45,649

58,242

Non-operating expenses

Interest expenses

-

751

Rent expenses on real estate for investments

12,773

11,312

Foreign exchange losses

54,410

23,524

Other

9,159

18,935

Total non-operating expenses

76,344

54,523

Ordinary profit

2,203,265

2,158,554

Extraordinary income

Gain on sales of non-current assets

222

0

Gain on liquidation of subsidiaries

-

11,887

Total extraordinary income

222

11,888

Extraordinary losses

Loss on sales and retirement of non-current assets

6,218

37

Loss related to infectious disease

-

67,531

Total extraordinary losses

6,218

67,569

Profit before income taxes

2,197,269

2,102,874

Income taxes - current

493,666

447,031

Income taxes - deferred

188,183

210,414

Total income taxes

681,849

657,445

Profit

1,515,419

1,445,428

Profit attributable to owners of parent

1,515,419

1,445,428

(Thousands of yen)

Three months ended

June 30, 2019

Three months ended

June 30, 2020

Profit

1,515,419

1,445,428

Other comprehensive income

Valuation difference on available-for-sale securities

(1,787)

40,720

Foreign currency translation adjustment

(436,892)

(2,238)

Total other comprehensive income

(438,679)

38,482

Comprehensive income

1,076,740

1,483,910

Comprehensive income attributable to

Comprehensive income attributable to owners of parent

1,076,740

1,483,910