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, 2018

(Based on Japanese GAAP)

January 31, 2019

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 8, 2019

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, 2018

30,149

7.7

6,959

5.0

7,315

10.9

4,838

10.1

Nine months ended December 31, 2017

28,005

20.0

6,629

84.5

6,599

82.7

4,396

98.5

Earnings per share

Diluted earnings per share

Yen

Yen

Nine months ended December 31, 2018

391.50

-

Nine months ended December 31, 2017

355.63

-

Total assets

Net assets

Equity ratio

Millions of yen

Millions of yen

%

As of December 31, 2018

62,192

52,898

85.1

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

-

24.00

-

Year ending March 31, 2019 (Forecast)

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

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 nine months ended December 31, 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 December 31, 2018

12,372,000

 shares

As of March 31, 2018

12,372,000

 shares

As of December 31, 2018

18,876

 shares

As of March 31, 2018

9,702

 shares

Nine months ended December 31, 2018

12,359,895

 shares

Nine months ended December 31, 2017

12,362,683

 shares

(Thousands of yen)

As of March 31, 2018

As of December 31, 2018

Assets

Current assets

Cash and deposits

21,994,568

21,711,149

Notes and accounts receivable - trade

9,790,135

10,247,875

Electronically recorded monetary claims - operating

1,047,980

1,282,873

Merchandise and finished goods

2,220,883

3,269,379

Work in process

1,817,145

2,185,853

Raw materials and supplies

3,630,476

4,310,665

Other

1,171,284

1,224,325

Allowance for doubtful accounts

(1,670)

(1,740)

Total current assets

41,670,803

44,230,382

Non-current assets

Property, plant and equipment

Buildings and structures

11,159,776

11,604,116

Accumulated depreciation

(6,133,121)

(6,388,471)

Buildings and structures, net

5,026,654

5,215,644

Machinery, equipment and vehicles

19,595,623

20,457,414

Accumulated depreciation

(15,542,570)

(16,167,078)

Machinery, equipment and vehicles, net

4,053,052

4,290,335

Land

3,943,218

3,942,195

Construction in progress

389,265

1,160,478

Other

4,163,793

4,502,448

Accumulated depreciation

(3,483,672)

(3,678,959)

Other, net

680,121

823,489

Total property, plant and equipment

14,092,312

15,432,144

Intangible assets

Goodwill

-

262,785

Other

274,885

279,980

Total intangible assets

274,885

542,766

Investments and other assets

2,476,673

1,986,972

Total non-current assets

16,843,870

17,961,882

Total assets

58,514,674

62,192,265

(Thousands of yen)

As of March 31, 2018

As of December 31, 2018

Liabilities

Current liabilities

Notes and accounts payable - trade

2,428,784

2,419,018

Electronically recorded obligations - operating

1,456,612

1,950,146

Income taxes payable

2,061,684

741,216

Provision for bonuses

542,637

398,537

Provision for directors' bonuses

63,000

31,500

Provision for environmental measures

3,436

-

Other

2,079,222

2,908,487

Total current liabilities

8,635,378

8,448,906

Non-current liabilities

Deferred tax liabilities

449,309

492,647

Net defined benefit liability

82,126

-

Other

318,304

352,346

Total non-current liabilities

849,740

844,993

Total liabilities

9,485,118

9,293,900

Net assets

Shareholders' equity

Capital stock

8,646,720

8,646,720

Capital surplus

11,996,407

11,994,350

Retained earnings

29,048,238

33,318,499

Treasury shares

(77,131)

(132,111)

Total shareholders' equity

49,614,235

53,827,457

Accumulated other comprehensive income

Valuation difference on available-for-sale securities

166,404

115,953

Foreign currency translation adjustment

(751,083)

(1,045,045)

Total accumulated other comprehensive income

(584,678)

(929,092)

Total net assets

49,029,556

52,898,365

Total liabilities and net assets

58,514,674

62,192,265

(Thousands of yen)

Nine months ended

December 31, 2017

Nine months ended

December 31, 2018

Net sales

28,005,826

30,149,733

Cost of sales

15,820,021

16,948,543

Gross profit

12,185,805

13,201,190

Selling, general and administrative expenses

5,556,595

6,242,188

Operating profit

6,629,209

6,959,002

Non-operating income

Interest income

23,708

21,212

Rent income

54,668

57,211

Foreign exchange gains

-

250,261

Other

27,017

83,028

Total non-operating income

105,394

411,714

Non-operating expenses

Interest expenses

7

-

Foreign exchange losses

99,867

-

Rent expenses on real estate for investments

31,162

45,143

Other

4,123

9,743

Total non-operating expenses

135,160

54,887

Ordinary profit

6,599,444

7,315,829

Extraordinary income

Gain on sales of non-current assets

8,162

4,043

Gain on bargain purchase

8,199

-

Gain on sales of investment securities

-

3,469

Total extraordinary income

16,362

7,512

Extraordinary losses

Loss on sales and retirement of non-current assets

57,982

5,354

Loss on liquidation of business

83,248

-

Retirement benefit expenses

-

51,447

Total extraordinary losses

141,231

56,801

Profit before income taxes

6,474,575

7,266,540

Income taxes - current

1,971,317

2,223,395

Income taxes - deferred

106,657

204,222

Total income taxes

2,077,974

2,427,618

Profit

4,396,601

4,838,922

Profit attributable to owners of parent

4,396,601

4,838,922

(Thousands of yen)

Nine months ended

December 31, 2017

Nine months ended

December 31, 2018

Profit

4,396,601

4,838,922

Other comprehensive income

Valuation difference on available-for-sale securities

87,824

(50,450)

Foreign currency translation adjustment

750,142

(293,962)

Total other comprehensive income

837,967

(344,413)

Comprehensive income

5,234,568

4,494,508

Comprehensive income attributable to

Comprehensive income attributable to owners of parent

5,234,568

4,494,508