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, 2016

(Based on Japanese GAAP)

February 2, 2017

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:

February 14, 2017

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

%

Nine months ended December 31, 2016

23,335

4.6

3,594

40.4

3,611

38.2

2,215

33.1

Nine months ended December 31, 2015

22,319

(7.9)

2,559

27.8

2,613

4.8

1,664

19.7

Earnings per share

Diluted earnings per share

Yen

Yen

Nine months ended December 31, 2016

179.35

179.34

Nine months ended December 31, 2015

134.73

134.72

Total assets

Net assets

Equity ratio

Millions of yen

Millions of yen

%

As of December 31, 2016

49,660

42,825

86.2

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

-

20.00

-

Year ending March 31, 2017 (Forecast)

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

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 nine months ended December 31, 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 December 31, 2016

12,372,000

 shares

As of March 31, 2016

12,372,000

 shares

As of December 31, 2016

19,629

 shares

As of March 31, 2016

22,033

 shares

Nine months ended December 31, 2016

12,351,410

 shares

Nine months ended December 31, 2015

12,350,013

 shares

(Thousands of yen)

As of March 31, 2016

As of December 31, 2016

Assets

Current assets

Cash and deposits

15,379,533

16,579,058

Notes and accounts receivable - trade

8,042,230

8,427,579

Electronically recorded monetary claims - operating

572,146

592,898

Merchandise and finished goods

2,489,838

2,430,598

Work in process

1,702,316

1,655,392

Raw materials and supplies

3,095,281

3,386,391

Deferred tax assets

285,439

244,102

Other

833,428

629,062

Allowance for doubtful accounts

(1,990)

(40,745)

Total current assets

32,398,221

33,904,335

Non-current assets

Property, plant and equipment

Buildings and structures

10,078,873

10,073,226

Accumulated depreciation

(5,519,695)

(5,673,006)

Buildings and structures, net

4,559,178

4,400,220

Machinery, equipment and vehicles

18,712,379

18,288,574

Accumulated depreciation

(13,799,300)

(13,988,241)

Machinery, equipment and vehicles, net

4,913,079

4,300,333

Land

3,503,763

3,671,366

Construction in progress

276,133

666,323

Other

3,553,267

3,591,870

Accumulated depreciation

(3,007,107)

(3,028,665)

Other, net

546,160

563,205

Total property, plant and equipment

13,798,312

13,601,446

Intangible assets

Goodwill

135,905

27,654

Other

433,269

285,079

Total intangible assets

569,174

312,733

Investments and other assets

1,784,068

1,841,972

Total non-current assets

16,151,555

15,756,152

Total assets

48,549,776

49,660,486

(Thousands of yen)

As of March 31, 2016

As of December 31, 2016

Liabilities

Current liabilities

Notes and accounts payable - trade

3,068,282

3,300,056

Current portion of long-term loans payable

137,984

58,900

Income taxes payable

589,934

491,442

Provision for bonuses

503,850

301,771

Provision for directors' bonuses

23,750

13,750

Notes payable - facilities

169,681

330,696

Other

1,824,564

1,847,664

Total current liabilities

6,318,045

6,344,279

Non-current liabilities

Long-term loans payable

115,409

-

Deferred tax liabilities

76,973

165,242

Provision for environmental measures

13,527

13,527

Other

325,379

311,961

Total non-current liabilities

531,288

490,729

Total liabilities

6,849,333

6,835,008

Net assets

Shareholders' equity

Capital stock

8,646,720

8,646,720

Capital surplus

11,946,793

11,948,947

Retained earnings

21,654,339

23,387,822

Treasury shares

(47,072)

(42,051)

Total shareholders' equity

42,200,781

43,941,438

Accumulated other comprehensive income

Valuation difference on available-for-sale securities

53,057

107,535

Foreign currency translation adjustment

(555,170)

(1,223,495)

Total accumulated other comprehensive income

(502,113)

(1,115,960)

Subscription rights to shares

1,775

-

Total net assets

41,700,443

42,825,478

Total liabilities and net assets

48,549,776

49,660,486

(Thousands of yen)

Nine months ended

December 31, 2015

Nine months ended

December 31, 2016

Net sales

22,318,933

23,334,559

Cost of sales

14,454,679

14,594,359

Gross profit

7,864,254

8,740,199

Selling, general and administrative expenses

5,305,061

5,146,345

Operating income

2,559,194

3,593,854

Non-operating income

Interest income

23,559

25,260

Rent income

68,443

53,976

Other

50,939

50,843

Total non-operating income

142,941

130,078

Non-operating expenses

Interest expenses

4,791

1,358

Foreign exchange losses

45,874

53,026

Rent expenses on real estate for investments

28,984

32,951

Other

9,465

25,152

Total non-operating expenses

89,114

112,487

Ordinary income

2,613,021

3,611,446

Extraordinary income

Gain on sales of non-current assets

7,845

582

Total extraordinary income

7,845

582

Extraordinary losses

Loss on sales and retirement of non-current assets

1,990

79,179

Loss on sales of investment securities

6,816

-

Loss on liquidation of business

-

235,069

Other

-

2,350

Total extraordinary losses

8,806

316,599

Profit before income taxes

2,612,060

3,295,430

Income taxes - current

772,425

910,712

Income taxes - deferred

175,762

169,537

Total income taxes

948,187

1,080,250

Profit

1,663,873

2,215,180

Loss attributable to non-controlling interests

(0)

-

Profit attributable to owners of parent

1,663,873

2,215,180

(Thousands of yen)

Nine months ended

December 31, 2015

Nine months ended

December 31, 2016

Profit

1,663,873

2,215,180

Other comprehensive income

Valuation difference on available-for-sale securities

(31,764)

54,479

Foreign currency translation adjustment

(1,046,521)

(668,325)

Total other comprehensive income

(1,078,285)

(613,847)

Comprehensive income

585,588

1,601,333

Comprehensive income attributable to

Comprehensive income attributable to owners of parent

585,588

1,601,333

Comprehensive income attributable to non-controlling interests

(0)

-