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, 2020

(Based on Japanese GAAP)

January 28, 2021

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:

February 10, 2021

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, 2020

30,569

(0.8)

7,573

13.1

7,413

9.2

5,078

24.3

Nine months ended December 31, 2019

30,810

2.2

6,699

(3.7)

6,789

(7.2)

4,087

(15.5)

Earnings per share

Diluted earnings per share

Yen

Yen

Nine months ended December 31, 2020

411.78

-

Nine months ended December 31, 2019

331.36

-

Total assets

Net assets

Equity ratio

Millions of yen

Millions of yen

%

As of December 31, 2020

75,751

64,157

84.7

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

-

28.00

-

Year ending March 31, 2021 (Forecast)

36.00

64.00

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

41,000

(0.6)

10,000

7.0

9,800

2.9

6,600

12.0

535.10

(1) Changes in significant subsidiaries during the nine months ended December 31, 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 December 31, 2020

12,372,000

 shares

As of March 31, 2020

12,372,000

 shares

As of December 31, 2020

36,236

 shares

As of March 31, 2020

40,163

 shares

Nine months ended December 31, 2020

12,333,434

 shares

Nine months ended December 31, 2019

12,333,911

 shares

(Thousands of yen)

As of March 31, 2020

As of December 31, 2020

Assets

Current assets

Cash and deposits

29,334,349

32,786,636

Notes and accounts receivable - trade

9,542,199

9,254,324

Electronically recorded monetary claims - operating

1,295,434

1,324,172

Merchandise and finished goods

2,061,801

1,854,816

Work in process

2,393,622

2,338,258

Raw materials and supplies

2,756,758

2,330,629

Other

1,757,311

2,000,141

Allowance for doubtful accounts

(8,180)

(8,079)

Total current assets

49,133,297

51,880,899

Non-current assets

Property, plant and equipment

Buildings and structures

12,650,214

15,280,402

Accumulated depreciation

(6,505,584)

(6,825,182)

Buildings and structures, net

6,144,629

8,455,219

Machinery, equipment and vehicles

20,998,043

21,970,902

Accumulated depreciation

(16,567,320)

(16,559,703)

Machinery, equipment and vehicles, net

4,430,722

5,411,199

Land

4,421,234

4,530,840

Construction in progress

3,445,592

2,821,569

Other

3,499,670

3,695,478

Accumulated depreciation

(2,898,143)

(3,103,741)

Other, net

601,527

591,736

Total property, plant and equipment

19,043,706

21,810,565

Intangible assets

Goodwill

195,975

-

Other

254,672

243,965

Total intangible assets

450,648

243,965

Investments and other assets

2,053,978

1,816,293

Total non-current assets

21,548,333

23,870,824

Total assets

70,681,631

75,751,723

(Thousands of yen)

As of March 31, 2020

As of December 31, 2020

Liabilities

Current liabilities

Notes and accounts payable - trade

1,898,714

2,199,668

Electronically recorded obligations - operating

1,619,355

1,720,020

Short-term borrowings

900,000

900,000

Current portion of long-term borrowings

-

266,688

Income taxes payable

827,864

1,211,066

Provision for bonuses

608,949

387,332

Provision for bonuses for directors (and other officers)

63,000

24,750

Other

3,382,929

2,702,853

Total current liabilities

9,300,813

9,412,380

Non-current liabilities

Long-term borrowings

1,200,000

1,666,640

Deferred tax liabilities

351,419

172,421

Other

375,829

342,791

Total non-current liabilities

1,927,248

2,181,852

Total liabilities

11,228,062

11,594,232

Net assets

Shareholders' equity

Share capital

8,646,720

8,646,720

Capital surplus

11,992,492

12,005,832

Retained earnings

40,526,723

44,939,510

Treasury shares

(239,524)

(216,635)

Total shareholders' equity

60,926,411

65,375,427

Accumulated other comprehensive income

Valuation difference on available-for-sale securities

70,521

123,816

Foreign currency translation adjustment

(1,543,364)

(1,341,753)

Total accumulated other comprehensive income

(1,472,842)

(1,217,936)

Total net assets

59,453,569

64,157,490

Total liabilities and net assets

70,681,631

75,751,723

(Thousands of yen)

Nine months ended

December 31, 2019

Nine months ended

December 31, 2020

Net sales

30,810,745

30,569,592

Cost of sales

17,956,384

17,078,452

Gross profit

12,854,360

13,491,140

Selling, general and administrative expenses

6,155,145

5,917,416

Operating profit

6,699,214

7,573,723

Non-operating income

Interest income

40,940

37,979

Rental income

71,853

65,898

Other

29,944

48,115

Total non-operating income

142,738

151,993

Non-operating expenses

Interest expenses

-

4,459

Foreign exchange losses

2,099

248,789

Rent expenses on real estate for investments

36,714

37,061

Other

13,937

21,817

Total non-operating expenses

52,751

312,127

Ordinary profit

6,789,201

7,413,589

Extraordinary income

Gain on sales of non-current assets

1,423

2,238

Gain on sales of investment securities

-

65,414

Gain on liquidation of subsidiaries

-

11,887

Settlement received

100,000

-

Total extraordinary income

101,423

79,540

Extraordinary losses

Loss on sales and retirement of non-current assets

74,408

92,875

Loss on valuation of investment securities

27,510

-

Impairment loss

-

169,251

Loss related to infectious disease

-

68,127

Loss on liquidation of business

775,716

-

Total extraordinary losses

877,634

330,254

Profit before income taxes

6,012,990

7,162,874

Income taxes - current

2,103,322

2,038,091

Income taxes - deferred

(177,395)

46,021

Total income taxes

1,925,926

2,084,113

Profit

4,087,063

5,078,760

Profit attributable to owners of parent

4,087,063

5,078,760

(Thousands of yen)

Nine months ended

December 31, 2019

Nine months ended

December 31, 2020

Profit

4,087,063

5,078,760

Other comprehensive income

Valuation difference on available-for-sale securities

38,526

53,295

Foreign currency translation adjustment

(224,656)

201,611

Total other comprehensive income

(186,129)

254,906

Comprehensive income

3,900,933

5,333,667

Comprehensive income attributable to

Comprehensive income attributable to owners of parent

3,900,933

5,333,667