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, 2018

(Based on Japanese GAAP)

July 26, 2018

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:

Director, General Manager of Administrative Division

Tamaki Nozoki

TEL 0561-51-0839

Scheduled date to file Quarterly Securities Report:

August 9, 2018

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, 2018

9,329

14.1

2,051

22.8

2,250

36.1

1,509

40.0

Three months ended June 30, 2017

8,175

11.4

1,670

51.7

1,652

101.9

1,078

112.1

Earnings per share

Diluted earnings per share

Yen

Yen

Three months ended June 30, 2018

122.11

-

Three months ended June 30, 2017

87.32

-

Total assets

Net assets

Equity ratio

Millions of yen

Millions of yen

%

As of June 30, 2018

57,972

50,193

86.6

As of March 31, 2018

58,514

49,029

83.8

Annual dividends per share

2nd quarter-end

3rd quarter-end

Fiscal year-end

Total

Yen

Yen

Yen

Yen

Yen

Year ended March 31, 2018

-

22.00

-

22.00

44.00

Year ending March 31, 2019

-

Year ending March 31, 2019 (Forecast)

24.00

-

24.00

48.00

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, 2018

18,100

3.7

4,050

3.9

4,050

1.8

2,700

2.2

218.40

Full year

40,300

4.6

9,800

6.8

9,850

11.1

6,550

18.1

529.83

(1) Changes in significant subsidiaries during the three months ended June 30, 2018

(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, 2018

12,372,000

 shares

As of March 31, 2018

12,372,000

 shares

As of June 30, 2018

9,826

 shares

As of March 31, 2018

9,702

 shares

Three months ended June 30, 2018

12,362,225

 shares

Three months ended June 30, 2017

12,351,971

 shares

(Thousands of yen)

As of March 31, 2018

As of June 30, 2018

Assets

Current assets

Cash and deposits

21,994,568

22,020,958

Notes and accounts receivable - trade

9,790,135

9,213,579

Electronically recorded monetary claims - operating

1,047,980

1,155,141

Merchandise and finished goods

2,220,883

2,470,471

Work in process

1,817,145

1,817,393

Raw materials and supplies

3,630,476

3,666,912

Other

1,171,284

752,163

Allowance for doubtful accounts

(1,670)

(1,580)

Total current assets

41,670,803

41,095,040

Non-current assets

Property, plant and equipment

Buildings and structures

11,159,776

11,248,478

Accumulated depreciation

(6,133,121)

(6,212,037)

Buildings and structures, net

5,026,654

5,036,441

Machinery, equipment and vehicles

19,595,623

19,803,893

Accumulated depreciation

(15,542,570)

(15,686,639)

Machinery, equipment and vehicles, net

4,053,052

4,117,253

Land

3,943,218

3,940,123

Construction in progress

389,265

468,728

Other

4,163,793

4,259,698

Accumulated depreciation

(3,483,672)

(3,546,604)

Other, net

680,121

713,094

Total property, plant and equipment

14,092,312

14,275,641

Intangible assets

Other

274,885

283,611

Total intangible assets

274,885

283,611

Investments and other assets

2,476,673

2,317,779

Total non-current assets

16,843,870

16,877,032

Total assets

58,514,674

57,972,073

(Thousands of yen)

As of March 31, 2018

As of June 30, 2018

Liabilities

Current liabilities

Notes and accounts payable - trade

2,428,784

2,238,456

Electronically recorded obligations - operating

1,456,612

1,357,949

Income taxes payable

2,061,684

535,555

Provision for bonuses

542,637

320,382

Provision for directors' bonuses

63,000

3,500

Provision for environmental measures

3,436

-

Other

2,079,222

2,339,284

Total current liabilities

8,635,378

6,795,128

Non-current liabilities

Deferred tax liabilities

449,309

582,514

Net defined benefit liability

82,126

76,508

Other

318,304

324,539

Total non-current liabilities

849,740

983,562

Total liabilities

9,485,118

7,778,690

Net assets

Shareholders' equity

Capital stock

8,646,720

8,646,720

Capital surplus

11,996,407

11,996,407

Retained earnings

29,048,238

30,285,886

Treasury shares

(77,131)

(78,195)

Total shareholders' equity

49,614,235

50,850,818

Accumulated other comprehensive income

Valuation difference on available-for-sale securities

166,404

164,943

Foreign currency translation adjustment

(751,083)

(822,379)

Total accumulated other comprehensive income

(584,678)

(657,435)

Total net assets

49,029,556

50,193,382

Total liabilities and net assets

58,514,674

57,972,073

(Thousands of yen)

Three months ended

June 30, 2017

Three months ended

June 30, 2018

Net sales

8,175,409

9,329,907

Cost of sales

4,774,372

5,315,196

Gross profit

3,401,036

4,014,710

Selling, general and administrative expenses

1,730,586

1,963,094

Operating profit

1,670,450

2,051,616

Non-operating income

Interest income

5,379

5,030

Rent income

20,241

19,681

Foreign exchange gains

-

150,284

Other

8,915

44,964

Total non-operating income

34,536

219,961

Non-operating expenses

Interest expenses

7

-

Rent expenses on real estate for investments

10,017

13,679

Foreign exchange losses

38,517

-

Other

3,471

7,812

Total non-operating expenses

52,014

21,491

Ordinary profit

1,652,971

2,250,085

Extraordinary income

Gain on sales of non-current assets

537

473

Gain on sales of investment securities

-

3,458

Total extraordinary income

537

3,932

Extraordinary losses

Loss on sales and retirement of non-current assets

55,363

1,576

Total extraordinary losses

55,363

1,576

Profit before income taxes

1,598,145

2,252,442

Income taxes - current

368,956

452,742

Income taxes - deferred

150,512

290,082

Total income taxes

519,468

742,824

Profit

1,078,677

1,509,618

Profit attributable to owners of parent

1,078,677

1,509,618

(Thousands of yen)

Three months ended

June 30, 2017

Three months ended

June 30, 2018

Profit

1,078,677

1,509,618

Other comprehensive income

Valuation difference on available-for-sale securities

25,119

(1,460)

Foreign currency translation adjustment

201,908

(71,296)

Total other comprehensive income

227,028

(72,756)

Comprehensive income

1,305,705

1,436,861

Comprehensive income attributable to

Comprehensive income attributable to owners of parent

1,305,705

1,436,861