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 Nine Months Ended December 31, 2019

(Based on Japanese GAAP)

January 30, 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:

Director, General Manager of Administrative Division

Tamaki Nozoki

TEL 0561-51-0839

Scheduled date to file Quarterly Securities Report:

February 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

%

Nine months ended December 31, 2019

30,810

2.2

6,699

(3.7)

6,789

(7.2)

4,087

(15.5)

Nine months ended December 31, 2018

30,149

7.7

6,959

5.0

7,315

10.9

4,838

10.1

Earnings per share

Diluted earnings per share

Yen

Yen

Nine months ended December 31, 2019

331.36

-

Nine months ended December 31, 2018

391.50

-

Total assets

Net assets

Equity ratio

Millions of yen

Millions of yen

%

As of December 31, 2019

66,529

58,186

87.5

As of March 31, 2019

64,627

54,954

85.0

Annual dividends per share

2nd quarter-end

3rd quarter-end

Fiscal year-end

Total

Yen

Yen

Yen

Yen

Yen

Year ended March 31, 2019

-

24.00

-

24.00

48.00

Year ending March 31, 2020

-

26.00

-

Year ending March 31, 2020 (Forecast)

26.00

52.00

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

Full year

38,000

(7.8)

7,800

(18.4)

7,800

(21.4)

5,300

(21.7)

429.39

(1) Changes in significant subsidiaries during the nine months ended December 31, 2019

(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 December 31, 2019

12,372,000

 shares

As of March 31, 2019

12,372,000

 shares

As of December 31, 2019

40,113

 shares

As of March 31, 2019

28,920

 shares

Nine months ended December 31, 2019

12,333,911

 shares

Nine months ended December 31, 2018

12,359,895

 shares

(Thousands of yen)

As of March 31, 2019

As of December 31, 2019

Assets

Current assets

Cash and deposits

22,627,403

26,144,617

Notes and accounts receivable - trade

10,266,096

9,360,223

Electronically recorded monetary claims - operating

1,476,219

1,408,325

Merchandise and finished goods

3,161,672

2,521,012

Work in process

2,337,293

2,288,582

Raw materials and supplies

4,277,629

3,080,234

Other

1,430,685

1,201,467

Allowance for doubtful accounts

(1,920)

(6,442)

Total current assets

45,575,080

45,998,020

Non-current assets

Property, plant and equipment

Buildings and structures

12,583,053

12,660,478

Accumulated depreciation

(6,512,559)

(6,473,603)

Buildings and structures, net

6,070,494

6,186,874

Machinery, equipment and vehicles

20,957,313

21,214,074

Accumulated depreciation

(16,322,648)

(16,531,842)

Machinery, equipment and vehicles, net

4,634,664

4,682,232

Land

4,003,430

4,044,290

Construction in progress

813,830

2,397,425

Other

4,615,622

3,898,887

Accumulated depreciation

(3,790,482)

(3,235,157)

Other, net

825,140

663,729

Total property, plant and equipment

16,347,560

17,974,553

Intangible assets

Goodwill

249,423

209,337

Other

283,871

272,315

Total intangible assets

533,294

481,653

Investments and other assets

2,171,586

2,074,960

Total non-current assets

19,052,442

20,531,167

Total assets

64,627,522

66,529,187

(Thousands of yen)

As of March 31, 2019

As of December 31, 2019

Liabilities

Current liabilities

Notes and accounts payable - trade

2,827,288

2,105,607

Electronically recorded obligations - operating

1,704,169

1,358,134

Income taxes payable

1,590,551

775,435

Provision for bonuses

627,985

329,627

Provision for bonuses for directors (and other officers)

63,000

31,500

Other

2,047,119

3,162,815

Total current liabilities

8,860,114

7,763,121

Non-current liabilities

Deferred tax liabilities

452,364

198,758

Other

360,543

380,821

Total non-current liabilities

812,907

579,579

Total liabilities

9,673,021

8,342,701

Net assets

Shareholders' equity

Share capital

8,646,720

8,646,720

Capital surplus

11,994,350

11,992,492

Retained earnings

35,249,658

38,719,859

Treasury shares

(188,864)

(239,092)

Total shareholders' equity

55,701,864

59,119,980

Accumulated other comprehensive income

Valuation difference on available-for-sale securities

117,622

156,149

Foreign currency translation adjustment

(864,986)

(1,089,642)

Total accumulated other comprehensive income

(747,363)

(933,493)

Total net assets

54,954,500

58,186,486

Total liabilities and net assets

64,627,522

66,529,187

(Thousands of yen)

Nine months ended

December 31, 2018

Nine months ended

December 31, 2019

Net sales

30,149,733

30,810,745

Cost of sales

16,948,543

17,956,384

Gross profit

13,201,190

12,854,360

Selling, general and administrative expenses

6,242,188

6,155,145

Operating profit

6,959,002

6,699,214

Non-operating income

Interest income

21,212

40,940

Rental income

57,211

71,853

Foreign exchange gains

250,261

-

Other

83,028

29,944

Total non-operating income

411,714

142,738

Non-operating expenses

Foreign exchange losses

-

2,099

Rent expenses on real estate for investments

45,143

36,714

Other

9,743

13,937

Total non-operating expenses

54,887

52,751

Ordinary profit

7,315,829

6,789,201

Extraordinary income

Gain on sales of non-current assets

4,043

1,423

Gain on sales of investment securities

3,469

-

Settlement received

-

100,000

Total extraordinary income

7,512

101,423

Extraordinary losses

Loss on sales and retirement of non-current assets

5,354

74,408

Loss on valuation of investment securities

-

27,510

Loss on liquidation of business

-

775,716

Retirement benefit expenses

51,447

-

Total extraordinary losses

56,801

877,634

Profit before income taxes

7,266,540

6,012,990

Income taxes - current

2,223,395

2,103,322

Income taxes - deferred

204,222

(177,395)

Total income taxes

2,427,618

1,925,926

Profit

4,838,922

4,087,063

Profit attributable to owners of parent

4,838,922

4,087,063

(Thousands of yen)

Nine months ended

December 31, 2018

Nine months ended

December 31, 2019

Profit

4,838,922

4,087,063

Other comprehensive income

Valuation difference on available-for-sale securities

(50,450)

38,526

Foreign currency translation adjustment

(293,962)

(224,656)

Total other comprehensive income

(344,413)

(186,129)

Comprehensive income

4,494,508

3,900,933

Comprehensive income attributable to

Comprehensive income attributable to owners of parent

4,494,508

3,900,933