| 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, 2020 (Based on Japanese GAAP) | |||||
| | | | | October 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: | Executive Officer | Tamaki Nozoki | TEL 0561-51-0839 | ||
| Scheduled date to file Quarterly Securities Report: | November 9, 2020 | ||||
| Scheduled date to commence dividend payments: | December 4, 2020 | ||||
| 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 financial results for the six months ended September 30, 2020 (from April 1, 2020 to September 30, 2020)
| (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, 2020 | 19,533 | (4.0) | 4,685 | 12.9 | 4,644 | 11.2 | 3,154 | 10.0 |
| Six months ended September 30, 2019 | 20,340 | 4.6 | 4,148 | (6.1) | 4,176 | (12.1) | 2,868 | (11.3) |
| | Earnings per share | Diluted earnings per share |
| | Yen | Yen |
| Six months ended September 30, 2020 | 255.80 | - |
| Six months ended September 30, 2019 | 232.51 | - |
(2) Consolidated financial position
| | Total assets | Net assets | Equity ratio |
| | Millions of yen | Millions of yen | % |
| As of September 30, 2020 | 74,181 | 62,464 | 84.2 |
| As of March 31, 2020 | 70,681 | 59,453 | 84.1 |
2. Cash dividends
| | Annual dividends per share | ||||
| 1st quarter-end | 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) | | | - | 28.00 | 56.00 |
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 |
| 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 six months ended September 30, 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 |
(3) 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 |
(4) Number of issued shares (common shares)
Total number of issued shares at the end of the period (including treasury shares)
| | As of September 30, 2020 | 12,372,000 | shares | As of March 31, 2020 | 12,372,000 | shares |
Number of treasury shares at the end of the period
| | As of September 30, 2020 | 38,198 | shares | As of March 31, 2020 | 40,163 | shares |
Average number of shares during the period (cumulative from the beginning of the fiscal year)
| | Six months ended September 30, 2020 | 12,332,859 | shares | Six months ended September 30, 2019 | 12,334,929 | shares |
Quarterly consolidated financial statements
Consolidated balance sheets
| | | (Thousands of yen) |
| | As of March 31, 2020 | As of September 30, 2020 |
| Assets | | |
| Current assets | | |
| Cash and deposits | 29,334,349 | 32,791,077 |
| Notes and accounts receivable - trade | 9,542,199 | 8,555,814 |
| Electronically recorded monetary claims - operating | 1,295,434 | 1,201,831 |
| Merchandise and finished goods | 2,061,801 | 1,785,452 |
| Work in process | 2,393,622 | 2,475,917 |
| Raw materials and supplies | 2,756,758 | 2,511,785 |
| Other | 1,757,311 | 1,365,837 |
| Allowance for doubtful accounts | (8,180) | (7,959) |
| Total current assets | 49,133,297 | 50,679,756 |
| Non-current assets | | |
| Property, plant and equipment | | |
| Buildings and structures | 12,650,214 | 12,724,294 |
| Accumulated depreciation | (6,505,584) | (6,695,078) |
| Buildings and structures, net | 6,144,629 | 6,029,215 |
| Machinery, equipment and vehicles | 20,998,043 | 21,274,287 |
| Accumulated depreciation | (16,567,320) | (16,750,753) |
| Machinery, equipment and vehicles, net | 4,430,722 | 4,523,534 |
| Land | 4,421,234 | 4,487,945 |
| Construction in progress | 3,445,592 | 5,737,976 |
| Other | 3,499,670 | 3,618,608 |
| Accumulated depreciation | (2,898,143) | (3,050,865) |
| Other, net | 601,527 | 567,742 |
| Total property, plant and equipment | 19,043,706 | 21,346,414 |
| Intangible assets | | |
| Goodwill | 195,975 | 169,251 |
| Other | 254,672 | 241,947 |
| Total intangible assets | 450,648 | 411,199 |
| Investments and other assets | 2,053,978 | 1,743,712 |
| Total non-current assets | 21,548,333 | 23,501,326 |
| Total assets | 70,681,631 | 74,181,083 |
| | | (Thousands of yen) |
| | As of March 31, 2020 | As of September 30, 2020 |
| Liabilities | | |
| Current liabilities | | |
| Notes and accounts payable - trade | 1,898,714 | 2,148,717 |
| Electronically recorded obligations - operating | 1,619,355 | 1,779,811 |
| Short-term borrowings | 900,000 | 900,000 |
| Current portion of long-term borrowings | - | 266,624 |
| Income taxes payable | 827,864 | 1,371,273 |
| Provision for bonuses | 608,949 | 647,419 |
| Provision for bonuses for directors (and other officers) | 63,000 | 5,500 |
| Other | 3,382,929 | 2,369,151 |
| Total current liabilities | 9,300,813 | 9,488,497 |
| Non-current liabilities | | |
| Long-term borrowings | 1,200,000 | 1,733,376 |
| Deferred tax liabilities | 351,419 | 151,897 |
| Other | 375,829 | 342,771 |
| Total non-current liabilities | 1,927,248 | 2,228,044 |
| Total liabilities | 11,228,062 | 11,716,542 |
| Net assets | | |
| Shareholders' equity | | |
| Share capital | 8,646,720 | 8,646,720 |
| Capital surplus | 11,992,492 | 11,997,067 |
| Retained earnings | 40,526,723 | 43,360,875 |
| Treasury shares | (239,524) | (228,163) |
| Total shareholders' equity | 60,926,411 | 63,776,500 |
| Accumulated other comprehensive income | | |
| Valuation difference on available-for-sale securities | 70,521 | 131,158 |
| Foreign currency translation adjustment | (1,543,364) | (1,443,116) |
| Total accumulated other comprehensive income | (1,472,842) | (1,311,958) |
| Total net assets | 59,453,569 | 62,464,541 |
| Total liabilities and net assets | 70,681,631 | 74,181,083 |
Consolidated statements of income (cumulative) and consolidated statements of comprehensive income (cumulative)
Consolidated statements of income (cumulative)
| | | (Thousands of yen) |
| | Six months ended September 30, 2019 | Six months ended September 30, 2020 |
| Net sales | 20,340,966 | 19,533,722 |
| Cost of sales | 12,124,683 | 10,942,900 |
| Gross profit | 8,216,282 | 8,590,822 |
| Selling, general and administrative expenses | 4,067,286 | 3,905,268 |
| Operating profit | 4,148,996 | 4,685,553 |
| Non-operating income | | |
| Interest income | 28,652 | 26,950 |
| Rental income | 47,906 | 44,858 |
| Other | 20,453 | 33,735 |
| Total non-operating income | 97,011 | 105,545 |
| Non-operating expenses | | |
| Interest expenses | - | 1,542 |
| Foreign exchange losses | 31,667 | 101,077 |
| Rent expenses on real estate for investments | 26,879 | 22,958 |
| Other | 11,018 | 21,458 |
| Total non-operating expenses | 69,565 | 147,036 |
| Ordinary profit | 4,176,442 | 4,644,061 |
| Extraordinary income | | |
| Gain on sales of non-current assets | 1,059 | 1,276 |
| Gain on liquidation of subsidiaries | - | 11,887 |
| Total extraordinary income | 1,059 | 13,163 |
| Extraordinary losses | | |
| Loss on sales and retirement of non-current assets | 28,485 | 20,583 |
| Loss on valuation of investment securities | 27,510 | - |
| Loss related to infectious disease | - | 67,802 |
| Total extraordinary losses | 55,995 | 88,385 |
| Profit before income taxes | 4,121,506 | 4,568,839 |
| Income taxes - current | 1,367,200 | 1,269,136 |
| Income taxes - deferred | (113,743) | 144,923 |
| Total income taxes | 1,253,457 | 1,414,060 |
| Profit | 2,868,049 | 3,154,779 |
| Profit attributable to owners of parent | 2,868,049 | 3,154,779 |
Consolidated statements of comprehensive income (cumulative)
| | | (Thousands of yen) |
| | Six months ended September 30, 2019 | Six months ended September 30, 2020 |
| Profit | 2,868,049 | 3,154,779 |
| Other comprehensive income | | |
| Valuation difference on available-for-sale securities | 14,422 | 60,636 |
| Foreign currency translation adjustment | (557,720) | 100,247 |
| Total other comprehensive income | (543,297) | 160,884 |
| Comprehensive income | 2,324,752 | 3,315,664 |
| Comprehensive income attributable to | | |
| Comprehensive income attributable to owners of parent | 2,324,752 | 3,315,664 |
Consolidated statements of cash flows
| | | (Thousands of yen) |
| | Six months ended September 30, 2019 | Six months ended September 30, 2020 |
| Cash flows from operating activities | | |
| Profit before income taxes | 4,121,506 | 4,568,839 |
| Depreciation | 1,140,487 | 1,003,185 |
| Amortization of goodwill | 26,723 | 26,723 |
| Increase (decrease) in allowance for doubtful accounts | 1,114 | 4,379 |
| Loss (gain) on liquidation of subsidiaries | - | (11,887) |
| Loss (gain) on valuation of investment securities | 27,510 | - |
| Loss (gain) on sales and retirement of non-current assets | 27,425 | 19,307 |
| Interest and dividend income | (31,607) | (29,448) |
| Interest expenses | - | 1,542 |
| Foreign exchange losses (gains) | (5,929) | 577 |
| Decrease (increase) in trade receivables | 1,620,188 | 1,093,242 |
| Decrease (increase) in inventories | 1,010,896 | 444,997 |
| Increase (decrease) in trade payables | (823,121) | 204,882 |
| Other, net | 207,952 | (497,803) |
| Subtotal | 7,323,147 | 6,828,538 |
| Interest and dividends received | 31,608 | 29,448 |
| Interest paid | - | (1,542) |
| Income taxes (paid) refund | (1,429,303) | (536,612) |
| Net cash provided by (used in) operating activities | 5,925,452 | 6,319,832 |
| Cash flows from investing activities | | |
| Net decrease (increase) in time deposits | (1,585) | - |
| Purchase of property, plant and equipment | (2,081,015) | (3,401,297) |
| Proceeds from sales of property, plant and equipment | 1,038 | 3,801 |
| Purchase of investment securities | (2,034) | (1,643) |
| Proceeds from liquidation of subsidiaries | - | 34,582 |
| Purchase of intangible assets | (29,023) | (8,428) |
| Other, net | 7,435 | (18,846) |
| Net cash provided by (used in) investing activities | (2,105,184) | (3,391,833) |
| Cash flows from financing activities | | |
| Proceeds from long-term borrowings | - | 800,000 |
| Purchase of treasury shares | (62,145) | (1,167) |
| Dividends paid | (296,233) | (320,627) |
| Net cash provided by (used in) financing activities | (358,379) | 478,204 |
| Effect of exchange rate change on cash and cash equivalents | (145,095) | 48,150 |
| Net increase (decrease) in cash and cash equivalents | 3,316,793 | 3,454,353 |
| Cash and cash equivalents at beginning of period | 22,448,629 | 29,114,590 |
| Cash and cash equivalents at end of period | 25,765,423 | 32,568,944 |
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