Maruwa Unyu Kikan : Summary of Consolidated Financial Results for the Three Months Ended June 30, 2021 (Based on Japanese GAAP)

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 Three Months Ended June 30, 2021
		(Based on Japanese GAAP)
				August 2, 2021
Company name:	MARUWA UNYU KIKAN CO.,LTD.
Stock exchange listing:	Tokyo
Stock code:	9090	URL https://www.momotaro.co.jp/
Representative:	President		Masaru Wasami
Inquiries:	Director and Managing Executive Officer	Kazumi Kawada	TEL [phone]
Scheduled date to file Quarterly Securities Report:	August 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 financial results for the three months ended June 30, 2021 (from April 1, 2021 to June 30, 2021)

(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		%
Three months ended June 30, 2021		29,320		9.5		2,287	2.2		2,397		3.8			1,730		8.3
Three months ended June 30, 2020		26,772		14.0		2,239	36.7		2,310		35.7			1,598		36.6
Note:	Comprehensive income						［2.9%］
	Three months ended June 30, 2021:	1,625 million yen
	Three months ended June 30, 2020:	1,579 million yen		［63.0%］
				Earnings per share		Diluted earnings per share
						Yen					Yen
Three months ended June 30, 2021				13.77					12.69
Three months ended June 30, 2020				12.53					12.49
Note:	The Company conducted 2-for-1 share split on January 1, 2021. Accordingly, assuming that the stock split was conducted at the
	beginning of the previous consolidated fiscal year, the quarterly net income per share and the adjusted net income per share are
	calculated.
(2) Consolidated financial position
				Total assets				Net assets	Equity ratio
				Millions of yen			Millions of yen				%
As of June 30, 2021		72,758					26,139				35.9
As of March 31, 2021		73,191					25,708				35.1
Reference: Equity
	As of June 30, 2021:	26,139 million yen
	As of March 31, 2021:	25,708 million yen
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, 2021			-			18.95			-				9.48			-
Year ending March 31, 2022			-
Year ending March 31, 2022 (Forecast)						9.50			-				9.50			19.00
Notes:	1.	Any revision from the most recently announced dividend forecast	：None

2. Company conducted 2-for-1 share split on January 1, 2021,. For the end of the second quarter of the fiscal year ending March 2021, the actual amount of dividends before the stock split is stated. In addition, for the end of the fiscal year ending March 2021 and the fiscal year ending March 2022 (forecast), the amount of dividends in consideration of the stock split is stated.

1

3. Forecast of consolidated financial results for the year ending March 31, 2022 (from April 1, 2021 to March 31, 2022)

Percentages indicate year-on-year changes

Net sales

Operating profit

Ordinary profit

Profit attributable to

Earnings per share

owners of parent

Six months ending

Millions of yen

%

Millions of yen

%

Millions of yen

%

Millions of yen

%

Yen

58,870

9.5

3,770

(13.9)

3,960

(11.6)

2,790

(9.5)

22.20

September 30, 2021

Full year

120,000

7.0

8,410

4.9

8,800

6.5

5,850

5.7

46.54

Note:

Any revision

from the most

recently

announced earnings forecast ：None

4. Notes

(1) Changes in significant subsidiaries during the three months ended June 30, 2021

No

(changes in specified subsidiaries resulting in the change in scope of consolidation):

(2) Application of special accounting methods for preparing quarterly consolidated financial statements:

Yes

(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:

Yes

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 June 30, 2021	128,803,520	shares	As of March 31, 2021	128,797,120	shares
Number of treasury shares at the end of the period
	As of June 30, 2021	3,107,842	shares	As of March 31, 2021	3,108,388	shares

Average number of shares during the period (cumulative from the beginning of the fiscal year)

Three months ended June 30, 2021	125,694,896 shares	Three months ended June 30, 2020	127,532,064 shares
Notes:	1. The Company conducted 2-for-1 share split on January 1, 2021. Accordingly, the number of issued shares is
	calculated as though the share split was conducted at the beginning of the previous fiscal year.

2. The number of treasury shares excluded from the calculation of the number of treasury shares at the end of the period and average number of shares includes 359,364 Company shares held as investment assets in a stock benefit trust for officers and a stock benefit ESOP.

* Quarterly financial results reports are exempt from audit conducted by certified public accountants or an audit firm.

* Proper use of earnings forecasts, and other special matters

1. The forward-looking statements, including earnings forecasts, contained in these materials are based on information currently available to the Company and on certain assumptions deemed to be reasonable. Actual results may differ substantially due to various factors.
2. The amount of accounts and other matters showed in the Company's quarterly consolidated financial statements was previously stated in units of Thousands of yen. From the first quarter consolidated financial period and the current first quarter consolidated cumulative period, the description has been changed to millions of yen. To facilitate comparison, the previous first quarter consolidated cumulative period and the previous consolidated fiscal year are also changed from Thousands of yen to Millions of yen.

2

Quarterly consolidated financial statements

Consolidated balance sheets

			(Millions of yen)
		As of March 31, 2021	As of June 30, 2021
Assets
Current assets
Cash and deposits	26,488	25,018
Notes and accounts receivable - trade	12,339	13,334
Supplies	51	50
Other	1,126	1,521
Allowance for doubtful accounts	(1)	(1)
Total current assets	40,004	39,923
Non-current assets
Property, plant and equipment
Buildings and structures, net	8,926	8,769
Machinery, equipment and vehicles, net	2,606	2,537
Land	6,582	6,583
Other, net	3,755	3,773
Total property, plant and equipment	21,871	21,664
Intangible assets	1,997	1,939
Investments and other assets
Other	9,366	9,278
Allowance for doubtful accounts	(47)	(47)
Total investments and other assets	9,319	9,230
Total non-current assets	33,187	32,834
Total assets	73,191	72,758
Liabilities
Current liabilities
Notes and accounts payable - trade	7,856	7,780
Short-term borrowings	100	1,800
Current portion of long-term borrowings	2,118	2,014
Income taxes payable	1,693	749
Provision for bonuses	960	189
Provision for loss on litigation	17	17
Other	6,116	5,973
Total current liabilities	18,862	18,524
Non-current liabilities
Convertible bonds	21,026	20,971
Long-term borrowings	3,882	3,422
Retirement benefit liability	878	901
Asset retirement obligations	776	778
Provision for share awards for directors (and other	21	20
officers)
Provision for share-based remuneration for employees	25	24
Other	2,009	1,974
Total non-current liabilities	28,620	28,093
Total liabilities		47,483	46,618

3

			(Millions of yen)
		As of March 31, 2021	As of June 30, 2021
Net assets
Shareholders' equity
Share capital	2,665	2,665
Capital surplus	2,341	2,341
Retained earnings	24,948	25,484
Treasury shares	(5,758)	(5,758)
Total shareholders' equity	24,197	24,733
Accumulated other comprehensive income
Valuation difference on available-for-sale securities	1,702	1,586
Remeasurements of defined benefit plans	(191)	(180)
Total accumulated other comprehensive income	1,511	1,406
Total net assets	25,708	26,139
Total liabilities and net assets		73,191	72,758

4

Consolidated statements of income (cumulative) and consolidated statements of comprehensive income (cumulative)

Consolidated statements of income (cumulative)

			(Millions of yen)
		Three months ended	Three months ended
		June 30, 2020	June 30, 2021
Net sales	26,772	29,320
Cost of sales	23,136	25,653
Gross profit	3,636	3,666
Selling, general and administrative expenses	1,397	1,378
Operating profit	2,239	2,287
Non-operating income
Interest income	0	55
Dividend income	39	40
Other	38	24
Total non-operating income	78	120
Non-operating expenses
Interest expenses	4	3
Loss on retirement of non-current assets	0	5
Other	2	2
Total non-operating expenses	7	11
Ordinary profit	2,310	2,397
Profit before income taxes	2,310	2,397
Income taxes	712	666
Profit	1,598	1,730
Profit attributable to non-controlling interests	-	-
Profit attributable to owners of parent		1,598	1,730

5