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 Six Months Ended September 30, 2023

(Based on Japanese GAAP)

October 26, 2023

Company name:

MARUWA CO., LTD.

Stock exchange listing:

Tokyo, Nagoya

Stock code:

5344

URL https://www.maruwa-g.com/

Representative:

President and Representative Director

Toshiro Kanbe

Inquiries:

Director

Yukiko Morishita

TEL 0561-51-0841

Scheduled date to file Quarterly Securities Report:

November 10, 2023

Scheduled date to commence dividend payments:

December 4, 2023

Preparation of supplementary material on quarterly financial results:

Yes

Holding of quarterly financial results meeting:

Yes

(for analysts and institutional investors)

(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

%

Six months ended September 30, 2023

28,063

(5.4)

8,649

(18.5)

9,616

(21.3)

6,777

(21.2)

Six months ended September 30, 2022

29,668

20.0

10,616

33.9

12,219

50.5

8,604

54.5

Earnings per share

Diluted earnings per share

Yen

Yen

Six months ended September 30, 2023

549.38

-

Six months ended September 30, 2022

697.39

-

Total assets

Net assets

Equity ratio

Millions of yen

Millions of yen

%

As of September 30, 2023

113,985

101,174

88.8

As of March 31, 2023

108,031

94,215

87.2

Annual dividends per share

2nd quarter-end

3rd quarter-end

Fiscal year-end

Total

Yen

Yen

Yen

Yen

Yen

Year ended March 31, 2023

-

38.00

-

40.00

78.00

Year ending March 31, 2024

-

43.00

Year ending March 31, 2024 (Forecast)

-

43.00

86.00

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

61,500

4.6

21,000

4.3

-

-

-

-

-

(1) Changes in significant subsidiaries during the six months ended September 30, 2023

(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 September 30, 2023

12,372,000

 shares

As of March 31, 2023

12,372,000

 shares

As of September 30, 2023

34,037

 shares

As of March 31, 2023

34,649

 shares

Six months ended September 30, 2023

12,337,296

 shares

Six months ended September 30, 2022

12,337,427

 shares

(Millions of yen)

As of March 31, 2023

As of September 30, 2023

Assets

Current assets

Cash and deposits

49,795

49,155

Notes receivable - trade

343

262

Accounts receivable - trade

10,701

13,280

Electronically recorded monetary claims - operating

1,820

1,817

Merchandise and finished goods

2,267

2,503

Work in process

2,905

3,084

Raw materials and supplies

3,767

4,450

Other

3,043

1,766

Allowance for doubtful accounts

(9)

(10)

Total current assets

74,634

76,310

Non-current assets

Property, plant and equipment

Buildings and structures, net

14,075

15,847

Machinery, equipment and vehicles, net

7,446

11,890

Land

4,872

4,961

Construction in progress

3,920

1,832

Other, net

731

853

Total property, plant and equipment

31,046

35,385

Intangible assets

Other

284

305

Total intangible assets

284

305

Investments and other assets

2,066

1,985

Total non-current assets

33,397

37,675

Total assets

108,031

113,985

(Millions of yen)

As of March 31, 2023

As of September 30, 2023

Liabilities

Current liabilities

Notes and accounts payable - trade

2,975

3,374

Electronically recorded obligations - operating

1,542

1,755

Current portion of long-term borrowings

333

200

Income taxes payable

2,684

2,615

Provision for bonuses

914

929

Provision for bonuses for directors (and other officers)

124

6

Other

4,334

3,056

Total current liabilities

12,910

11,937

Non-current liabilities

Long-term borrowings

400

400

Deferred tax liabilities

141

111

Other

364

361

Total non-current liabilities

905

873

Total liabilities

13,816

12,810

Net assets

Shareholders' equity

Share capital

8,646

8,646

Capital surplus

12,018

12,031

Retained earnings

73,381

79,666

Treasury shares

(209)

(207)

Total shareholders' equity

93,838

100,137

Accumulated other comprehensive income

Valuation difference on available-for-sale securities

125

156

Foreign currency translation adjustment

251

881

Total accumulated other comprehensive income

377

1,037

Total net assets

94,215

101,174

Total liabilities and net assets

108,031

113,985

(Millions of yen)

Six months ended

September 30, 2022

Six months ended

September 30, 2023

Net sales

29,668

28,063

Cost of sales

14,006

14,054

Gross profit

15,662

14,008

Selling, general and administrative expenses

5,046

5,359

Operating profit

10,616

8,649

Non-operating income

Interest income

29

82

Rental income

48

58

Foreign exchange gains

1,531

800

Other

29

67

Total non-operating income

1,639

1,008

Non-operating expenses

Interest expenses

2

0

Rent expenses on real estate for investments

24

25

Other

8

14

Total non-operating expenses

36

41

Ordinary profit

12,219

9,616

Extraordinary income

Gain on sale of non-current assets

0

-

Gain on sale of investment securities

-

12

Gain on liquidation of subsidiaries

3

-

Subsidy income

15

-

Total extraordinary income

19

12

Extraordinary losses

Loss on sale and retirement of non-current assets

16

134

Other

-

7

Total extraordinary losses

16

141

Profit before income taxes

12,221

9,486

Income taxes - current

3,453

2,646

Income taxes - deferred

164

62

Total income taxes

3,617

2,708

Profit

8,604

6,777

Profit attributable to owners of parent

8,604

6,777

(Millions of yen)

Six months ended

September 30, 2022

Six months ended

September 30, 2023

Profit

8,604

6,777

Other comprehensive income

Valuation difference on available-for-sale securities

(12)

30

Foreign currency translation adjustment

754

629

Total other comprehensive income

741

660

Comprehensive income

9,345

7,438

Comprehensive income attributable to

Comprehensive income attributable to owners of parent

9,345

7,438

(Millions of yen)

Six months ended

September 30, 2022

Six months ended

September 30, 2023

Cash flows from operating activities

Profit before income taxes

12,221

9,486

Depreciation

1,469

1,763

Increase (decrease) in allowance for doubtful accounts

(0)

0

Loss (gain) on sale of investment securities

-

(4)

Loss (gain) on sale and retirement of non-current assets

16

134

Interest and dividend income

(32)

(91)

Interest expenses

2

0

Subsidy income

(15)

-

Decrease (increase) in trade receivables

(31)

(2,395)

Decrease (increase) in inventories

(1,178)

(1,057)

Increase (decrease) in trade payables

(855)

293

Other, net

1,104

903

Subtotal

12,701

9,032

Interest and dividends received

32

91

Interest paid

(2)

(0)

Income taxes refund (paid)

(4,714)

(2,633)

Net cash provided by (used in) operating activities

8,016

6,490

Cash flows from investing activities

Purchase of property, plant and equipment

(3,930)

(6,832)

Proceeds from sale of property, plant and equipment

0

-

Payments for retirement of property, plant and equipment

-

(67)

Purchase of investment securities

(23)

(84)

Proceeds from sale of investment securities

-

166

Purchase of intangible assets

(22)

(35)

Subsidies received

211

-

Other, net

9

(10)

Net cash provided by (used in) investing activities

(3,756)

(6,863)

Cash flows from financing activities

Repayments of long-term borrowings

(133)

(133)

Purchase of treasury shares

(1)

(3)

Proceeds from sale of treasury shares

-

17

Dividends paid

(444)

(493)

Net cash provided by (used in) financing activities

(579)

(612)

Effect of exchange rate change on cash and cash equivalents

352

333

Net increase (decrease) in cash and cash equivalents

4,033

(652)

Cash and cash equivalents at beginning of period

44,385

49,585

Cash and cash equivalents at end of period

48,419

48,933