| 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 Year Ended March 31, 2020 (Based on Japanese GAAP) | |||||
| | | | | April 28, 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 of ordinary general meeting of shareholders: | June 25, 2020 | ||||
| Scheduled date to file Securities Report: | June 26, 2020 | ||||
| Scheduled date to commence dividend payments: | June 26, 2020 | ||||
| Preparation of supplementary material on financial results: | No | | |||
| Holding of financial results meeting: | No | | |||
| | (Amounts less than one million yen are rounded down) |
1. Consolidated financial results for the year ended March 31, 2020 (from April 1, 2019 to March 31, 2020)
| (1) Consolidated operating results | 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 | % |
| Year ended March 31, 2020 | 41,231 | 0.1 | 9,345 | (2.2) | 9,520 | (4.1) | 5,893 | (12.9) |
| Year ended March 31, 2019 | 41,193 | 7.0 | 9,556 | 4.2 | 9,924 | 11.9 | 6,770 | 22.1 |
| | Earnings per share | Diluted earnings per share | Profit attributable to owners of parent/equity | Ordinary profit/total assets | Operating profit/net sales |
| | Yen | Yen | % | % | % |
| Year ended March 31, 2020 | 477.88 | - | 10.3 | 14.1 | 22.7 |
| Year ended March 31, 2019 | 547.87 | - | 13.0 | 16.1 | 23.2 |
(2) Consolidated financial position
| | Total assets | Net assets | Equity ratio | Net assets per share |
| | Millions of yen | Millions of yen | % | Yen |
| As of March 31, 2020 | 70,681 | 59,453 | 84.1 | 4,821.14 |
| As of March 31, 2019 | 64,627 | 54,954 | 85.0 | 4,452.25 |
(3) Consolidated cash flows
| | Cash flows from operating activities | Cash flows from investing activities | Cash flows from financing activities | Cash and cash equivalents at end of period |
| | Millions of yen | Millions of yen | Millions of yen | Millions of yen |
| Year ended March 31, 2020 | 10,719 | (5,272) | 1,420 | 29,114 |
| Year ended March 31, 2019 | 6,967 | (5,691) | (694) | 22,448 |
2. Cash dividends
|
| Annual dividends per share | Total cash dividends (Total) | Dividend payout ratio (Consolidated) | Ratio of dividends to net assets (Consolidated) | ||||
| 1st quarter-end | 2nd quarter-end | 3rd quarter-end | Fiscal year-end | Total | ||||
| | Yen | Yen | Yen | Yen | Yen | Millions of yen | % | % |
| Year ended March 31, 2019 | - | 24.00 | - | 24.00 | 48.00 | 592 | 8.8 | 1.1 |
| Year ended March 31, 2020 | - | 26.00 | - | 26.00 | 52.00 | 641 | 10.9 | 1.1 |
| Year ending March 31, 2021 (Forecast) | - | 28.00 | - | 28.00 | 56.00 | | 12.7 | |
3. Forecast of consolidated financial results for the year ending March 31, 2021 (from April 1, 2020 to March 31, 2021)
| | 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 |
| Six months ending September 30, 2020 | 16,500 | (18.9) | 3,400 | (18.1) | 3,400 | (18.6) | 2,300 | (19.8) | 186.50 |
| Full year | 36,500 | (11.5) | 7,900 | (15.5) | 7,900 | (17.0) | 5,450 | (7.5) | 441.94 |
4. Notes
| (1) Changes in significant subsidiaries during the year ended March 31, 2020 (changes in specified subsidiaries resulting in the change in scope of consolidation): | No |
(2) Changes in accounting policies, changes in accounting estimates, and restatement of prior period financial statements
| 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 |
(3) Number of issued shares (common shares)
Total number of issued shares at the end of the period (including treasury shares)
| | As of March 31, 2020 | 12,372,000 | shares | As of March 31, 2019 | 12,372,000 | shares |
Number of treasury shares at the end of the period
| | As of March 31, 2020 | 40,163 | shares | As of March 31, 2019 | 28,920 | shares |
Average number of shares during the period
| | Year ended March 31, 2020 | 12,333,398 | shares | Year ended March 31, 2019 | 12,356,998 | shares |
Consolidated financial statements
Consolidated balance sheets
| | | (Thousands of yen) |
| | As of March 31, 2019 | As of March 31, 2020 |
| Assets | | |
| Current assets | | |
| Cash and deposits | 22,627,403 | 29,334,349 |
| Notes and accounts receivable - trade | 10,266,096 | 9,542,199 |
| Electronically recorded monetary claims - operating | 1,476,219 | 1,295,434 |
| Merchandise and finished goods | 3,161,672 | 2,061,801 |
| Work in process | 2,337,293 | 2,393,622 |
| Raw materials and supplies | 4,277,629 | 2,756,758 |
| Other | 1,430,685 | 1,757,311 |
| Allowance for doubtful accounts | (1,920) | (8,180) |
| Total current assets | 45,575,080 | 49,133,297 |
| Non-current assets | | |
| Property, plant and equipment | | |
| Buildings and structures | 12,583,053 | 12,650,214 |
| Accumulated depreciation | (6,512,559) | (6,505,584) |
| Buildings and structures, net | 6,070,494 | 6,144,629 |
| Machinery, equipment and vehicles | 20,957,313 | 20,998,043 |
| Accumulated depreciation | (16,322,648) | (16,567,320) |
| Machinery, equipment and vehicles, net | 4,634,664 | 4,430,722 |
| Land | 4,003,430 | 4,421,234 |
| Construction in progress | 813,830 | 3,445,592 |
| Other | 4,615,622 | 3,499,670 |
| Accumulated depreciation | (3,790,482) | (2,898,143) |
| Other, net | 825,140 | 601,527 |
| Total property, plant and equipment | 16,347,560 | 19,043,706 |
| Intangible assets | | |
| Goodwill | 249,423 | 195,975 |
| Other | 283,871 | 254,672 |
| Total intangible assets | 533,294 | 450,648 |
| Investments and other assets | | |
| Investment securities | 340,439 | 239,134 |
| Deferred tax assets | 644,164 | 707,858 |
| Investment property | 997,257 | 980,003 |
| Buildings and structures | 695,399 | 695,399 |
| Accumulated depreciation | (396,012) | (412,064) |
| Buildings and structures, net | 299,386 | 283,334 |
| Land | 688,832 | 688,832 |
| Other | 42,067 | 42,067 |
| Accumulated depreciation | (33,029) | (34,231) |
| Other, net | 9,037 | 7,835 |
| Other | 201,241 | 130,222 |
| Allowance for doubtful accounts | (11,516) | (3,240) |
| Total investments and other assets | 2,171,586 | 2,053,978 |
| Total non-current assets | 19,052,442 | 21,548,333 |
| Total assets | 64,627,522 | 70,681,631 |
| | | (Thousands of yen) |
| | As of March 31, 2019 | As of March 31, 2020 |
| Liabilities | | |
| Current liabilities | | |
| Notes and accounts payable - trade | 2,827,288 | 1,898,714 |
| Electronically recorded obligations - operating | 1,704,169 | 1,619,355 |
| Short-term borrowings | - | 900,000 |
| Income taxes payable | 1,590,551 | 827,864 |
| Provision for bonuses | 627,985 | 608,949 |
| Provision for bonuses for directors (and other officers) | 63,000 | 63,000 |
| Other | 2,047,119 | 3,382,929 |
| Total current liabilities | 8,860,114 | 9,300,813 |
| Non-current liabilities | | |
| Long-term borrowings | - | 1,200,000 |
| Deferred tax liabilities | 452,364 | 351,419 |
| Other | 360,543 | 375,829 |
| Total non-current liabilities | 812,907 | 1,927,248 |
| Total liabilities | 9,673,021 | 11,228,062 |
| 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 | 40,526,723 |
| Treasury shares | (188,864) | (239,524) |
| Total shareholders' equity | 55,701,864 | 60,926,411 |
| Accumulated other comprehensive income | | |
| Valuation difference on available-for-sale securities | 117,622 | 70,521 |
| Foreign currency translation adjustment | (864,986) | (1,543,364) |
| Total accumulated other comprehensive income | (747,363) | (1,472,842) |
| Total net assets | 54,954,500 | 59,453,569 |
| Total liabilities and net assets | 64,627,522 | 70,681,631 |
Consolidated statements of income and consolidated statements of comprehensive income
Consolidated statements of income
| | | (Thousands of yen) |
| | Fiscal year ended March 31, 2019 | Fiscal year ended March 31, 2020 |
| Net sales | 41,193,338 | 41,231,431 |
| Cost of sales | 23,264,386 | 23,685,411 |
| Gross profit | 17,928,952 | 17,546,020 |
| Selling, general and administrative expenses | 8,372,881 | 8,200,209 |
| Operating profit | 9,556,071 | 9,345,810 |
| Non-operating income | | |
| Interest income | 35,322 | 65,785 |
| Rental income | 79,282 | 94,361 |
| Foreign exchange gains | 219,615 | 45,346 |
| Other | 97,381 | 34,405 |
| Total non-operating income | 431,602 | 239,899 |
| Non-operating expenses | | |
| Interest expenses | - | 305 |
| Rent expenses on real estate for investments | 48,361 | 49,924 |
| Bad debts expenses | - | 6,636 |
| Other | 14,927 | 8,576 |
| Total non-operating expenses | 63,289 | 65,443 |
| Ordinary profit | 9,924,383 | 9,520,266 |
| Extraordinary income | | |
| Gain on sales of non-current assets | 4,042 | 29,529 |
| Gain on sales of investment securities | 3,469 | 11,986 |
| Settlement received | - | 100,000 |
| Total extraordinary income | 7,511 | 141,515 |
| Extraordinary losses | | |
| Loss on sales and retirement of non-current assets | 6,374 | 77,797 |
| Loss on valuation of investment securities | - | 27,510 |
| Loss on liquidation of business | - | 773,648 |
| Retirement benefit expenses | 51,447 | - |
| Other | - | 86,461 |
| Total extraordinary losses | 57,821 | 965,418 |
| Profit before income taxes | 9,874,073 | 8,696,363 |
| Income taxes - current | 3,139,919 | 2,928,470 |
| Income taxes - deferred | (35,928) | (126,034) |
| Total income taxes | 3,103,991 | 2,802,435 |
| Profit | 6,770,081 | 5,893,928 |
| Profit attributable to owners of parent | 6,770,081 | 5,893,928 |
Consolidated statements of comprehensive income
| | | (Thousands of yen) |
| | Fiscal year ended March 31, 2019 | Fiscal year ended March 31, 2020 |
| Profit | 6,770,081 | 5,893,928 |
| Other comprehensive income | | |
| Valuation difference on available-for-sale securities | (48,782) | (47,101) |
| Foreign currency translation adjustment | (113,902) | (678,378) |
| Total other comprehensive income | (162,684) | (725,479) |
| Comprehensive income | 6,607,396 | 5,168,449 |
| Comprehensive income attributable to | | |
| Comprehensive income attributable to owners of parent | 6,607,396 | 5,168,449 |
Consolidated statements of changes in equity
Fiscal year ended March 31, 2019
| | | | | (Thousands of yen) | |
| | Shareholders' equity | ||||
| | Share capital | Capital surplus | Retained earnings | Treasury shares | Total shareholders' equity |
| Balance at beginning of period | 8,646,720 | 11,996,407 | 29,048,238 | (77,131) | 49,614,235 |
| Changes during period | | | | | |
| Dividends of surplus | | | (568,661) | | (568,661) |
| Profit attributable to owners of parent | | | 6,770,081 | | 6,770,081 |
| Purchase of treasury shares | | | | (125,731) | (125,731) |
| Disposal of treasury shares | | (2,057) | | 13,997 | 11,940 |
| Net changes in items other than shareholders' equity | | | | | |
| Total changes during period | - | (2,057) | 6,201,420 | (111,733) | 6,087,629 |
| Balance at end of period | 8,646,720 | 11,994,350 | 35,249,658 | (188,864) | 55,701,864 |
| | Accumulated other comprehensive income | Total net assets | ||
| | Valuation difference on available-for-sale securities | Foreign currency translation adjustment | Total accumulated other comprehensive income | |
| Balance at beginning of period | 166,404 | (751,083) | (584,678) | 49,029,556 |
| Changes during period | | | | |
| Dividends of surplus | | | | (568,661) |
| Profit attributable to owners of parent | | | | 6,770,081 |
| Purchase of treasury shares | | | | (125,731) |
| Disposal of treasury shares | | | | 11,940 |
| Net changes in items other than shareholders' equity | (48,782) | (113,902) | (162,684) | (162,684) |
| Total changes during period | (48,782) | (113,902) | (162,684) | 5,924,944 |
| Balance at end of period | 117,622 | (864,986) | (747,363) | 54,954,500 |
Fiscal year ended March 31, 2020
| | | | | (Thousands of yen) | |
| | Shareholders' equity | ||||
| | Share capital | Capital surplus | Retained earnings | Treasury shares | Total shareholders' equity |
| Balance at beginning of period | 8,646,720 | 11,994,350 | 35,249,658 | (188,864) | 55,701,864 |
| Changes during period | | | | | |
| Dividends of surplus | | | (616,862) | | (616,862) |
| Profit attributable to owners of parent | | | 5,893,928 | | 5,893,928 |
| Purchase of treasury shares | | | | (62,577) | (62,577) |
| Disposal of treasury shares | | (1,857) | | 11,917 | 10,060 |
| Net changes in items other than shareholders' equity | | | | | |
| Total changes during period | - | (1,857) | 5,277,065 | (50,660) | 5,224,547 |
| Balance at end of period | 8,646,720 | 11,992,492 | 40,526,723 | (239,524) | 60,926,411 |
| | Accumulated other comprehensive income | Total net assets | ||
| | Valuation difference on available-for-sale securities | Foreign currency translation adjustment | Total accumulated other comprehensive income | |
| Balance at beginning of period | 117,622 | (864,986) | (747,363) | 54,954,500 |
| Changes during period | | | | |
| Dividends of surplus | | | | (616,862) |
| Profit attributable to owners of parent | | | | 5,893,928 |
| Purchase of treasury shares | | | | (62,577) |
| Disposal of treasury shares | | | | 10,060 |
| Net changes in items other than shareholders' equity | (47,101) | (678,378) | (725,479) | (725,479) |
| Total changes during period | (47,101) | (678,378) | (725,479) | 4,499,068 |
| Balance at end of period | 70,521 | (1,543,364) | (1,472,842) | 59,453,569 |
Consolidated statements of cash flows
| | | (Thousands of yen) |
| | Fiscal year ended March 31, 2019 | Fiscal year ended March 31, 2020 |
| Cash flows from operating activities | | |
| Profit before income taxes | 9,874,073 | 8,696,363 |
| Loss on liquidation of business | - | 773,648 |
| Depreciation | 2,059,593 | 2,319,896 |
| Amortization of goodwill | 17,815 | 53,447 |
| Increase (decrease) in retirement benefit liability | (53,456) | - |
| Increase (decrease) in allowance for doubtful accounts | (1,571) | (2,015) |
| Increase (decrease) in provision for environmental measures | (3,436) | - |
| Loss (gain) on sales of investment securities | (3,469) | (11,986) |
| Loss (gain) on valuation of investment securities | - | 27,510 |
| Loss (gain) on sales and retirement of non-current assets | 2,332 | 48,268 |
| Interest and dividend income | (71,583) | (71,699) |
| Interest expenses | - | 305 |
| Foreign exchange losses (gains) | (97,148) | (7,174) |
| Decrease (increase) in trade receivables | (333,772) | 762,701 |
| Decrease (increase) in inventories | (1,455,567) | 2,084,047 |
| Increase (decrease) in trade payables | 706,459 | (1,016,862) |
| Other, net | (128,574) | 716,742 |
| Subtotal | 10,511,694 | 14,373,193 |
| Interest and dividends received | 71,576 | 71,695 |
| Interest paid | - | (305) |
| Income taxes paid | (3,615,982) | (3,725,511) |
| Net cash provided by (used in) operating activities | 6,967,287 | 10,719,072 |
| Cash flows from investing activities | | |
| Net decrease (increase) in time deposits | 13,794 | (40,710) |
| Purchase of property, plant and equipment | (4,320,988) | (5,408,367) |
| Proceeds from sales of property, plant and equipment | 18,459 | 156,643 |
| Purchase of investment securities | (10,152) | (4,043) |
| Proceeds from sales of investment securities | 9,473 | 32,504 |
| Purchase of intangible assets | (58,791) | (32,104) |
| Payments for acquisition of businesses | (1,603,834) | - |
| Other, net | 260,967 | 23,591 |
| Net cash provided by (used in) investing activities | (5,691,072) | (5,272,485) |
| Cash flows from financing activities | | |
| Proceeds from short-term borrowings | - | 900,000 |
| Proceeds from long-term borrowings | - | 1,200,000 |
| Purchase of treasury shares | (125,731) | (62,577) |
| Dividends paid | (568,661) | (616,862) |
| Net cash provided by (used in) financing activities | (694,392) | 1,420,559 |
| Effect of exchange rate change on cash and cash equivalents | 67,098 | (200,924) |
| Net increase (decrease) in cash and cash equivalents | 648,921 | 6,666,221 |
| Cash and cash equivalents at beginning of period | 21,799,447 | 22,448,368 |
| Cash and cash equivalents at end of period | 22,448,368 | 29,114,590 |
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