Marumae : Summary of Financial Results for the Nine Months Ended May 31, 2021

Marumae

Note: This document has been translated from the Japanese original for reference purposes only. In the event of any discrepancy between this translated document and the Japanese original, the original shall prevail.

Summary of Financial Results for the Nine Months Ended

May 31, 2021 (Japanese GAAP) (Non-consolidated)

		June 30, 2021
Name of Listed Company:	Marumae Co., Ltd.	Stock Exchange Listing: Tokyo
Security Code:	6264
URL:	https://www.marumae.com/
Representative:	Toshikazu Maeda, President and Representative Director
Contact:	Takeshi Shimomai, General Manager of the Administrative Dept.
	Email: [e-mail]

Scheduled date for submission of the quarterly report: July 14, 2021

Scheduled start date of dividends payment: -

Preparation of supplementary materials for the quarterly financial results: Yes

Quarterly earnings release conference: None

Note: Amounts are rounded down to the nearest million yen.

1. Financial Results for the Nine Months Ended May 31, 2021 (September 1, 2020 to May 31, 2021)

1. Operating Results (Cumulative)

Note: Percentages indicate changes from the same period of the previous fiscal year.

		Nine months ended
	May 31, 2020		May 31, 2021
		%		%
Net sales (Millions of yen)	3,182	7.9	3,615	13.6
Operating profit (Millions of yen)	629	75.8	776	23.4
Ordinary profit (Millions of yen)	600	73.8	772	28.7
Profit (Millions of yen)	493	119.1	556	12.7
Earnings per share of common stock (Yen)
Basic	37.97		43.43
Diluted	-		-

Marumae

1. Financial Position

				As of
			August 31, 2020	May 31, 2021
Total assets (Millions of yen)	8,894	9,115
Net assets (Millions of yen)	5,706	5,980
Equity ratio (%)			64.2	65.6
Reference:	Equity: 5,980 million yen (as of May 31, 2021)
	5,706 million yen (as of August 31, 2020)
2. Dividends
				Fiscal year ended	Fiscal year ending
				August 31, 2020	August 31, 2021
1Q-end dividends per share (Yen)	-	-
2Q-end dividends per share (Yen)	5.00	10.00
3Q-end dividends per share (Yen)	-	-
Year-end dividends per share (Yen)	12.00	12.00 (Forecast)
Annual dividends per share (Yen)	17.00	22.00 (Forecast)
Note: Revision to the most recently announced dividends forecast: None

3. Financial Forecasts for the Fiscal Year Ending August 31, 2021 (September 1, 2020 to August 31, 2021) Note: Percentages for the fiscal year ending August 31, 2021 indicate changes from the previous fiscal year.

	Fiscal year ending
	August 31, 2021
		%
Net sales (Millions of yen)	5,270	20.1
Operating profit (Millions of yen)	1,240	38.4
Ordinary profit (Millions of yen)	1,231	47.6
Profit (Millions of yen)	900	30.4
Earnings per share (Yen)	70.30

Note: Revision to the most recently announced financial forecasts: Yes

Marumae

Notes

1. Adoption of special accounting methods for preparation of quarterly financial statements: None
2. Changes in accounting policies, changes in accounting estimates and restatements
3. 1. Changes in accounting policies along with changes in accounting standards: None
   2. Changes in accounting policies, other than those included in 1. above: None
   3. Change in accounting estimates: None
   4. Restatements: None
4. Number of shares issued and outstanding (common stock)
5. 1. Number of shares issued and outstanding (including treasury shares)

As of May 31, 2021:	13,053,000 shares
As of August 31, 2020:	13,053,000 shares
2. Number of shares of treasury shares
As of May 31, 2021:	250,196 shares
As of August 31, 2020:	250,196 shares
3. Average number of shares outstanding (cumulative quarterly period)
Nine months ended May 31, 2021:	12,802,804 shares
Nine months ended May 31, 2020:	12,993,745 shares

* Status of implementation of quarterly review procedures

This Summary of Financial Results is exempt from the quarterly review procedures by certified public accountants or audit firms.

* Explanation regarding the appropriate use of financial forecasts and other notes

The financial forecasts and other forward-looking statements presented in this Summary of Financial Results are based on information available to the Company at the time of the issuance of this report, and certain assumptions judged to be reasonable by the Company. Actual financial results may differ significantly due to various factors. Please refer to "1. Qualitative Information on Quarterly Financial Results, (3) Description of Financial Estimates Information such as Financial Forecasts" on page 3 for the assumptions used for financial forecasts and other notes.

		Marumae
Contents
1. Qualitative Information on Quarterly Financial Results .................................................................	2
(1)	Description of Operating Results ..............................................................................................	2
(2)	Description of Financial Position ..............................................................................................	3
(3)	Description of Financial Estimates Information such as Financial Forecasts.....................	3
2. Quarterly Financial Statements and Notes ......................................................................................	4
(1)	Quarterly Balance Sheet .............................................................................................................	4
(2)	Quarterly Statement of Income ..................................................................................................	6
(3)	Notes to the Quarterly Financial Statements ...........................................................................	7

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Marumae

1. Qualitative Information on Quarterly Financial Results

1. Description of Operating Results

For the nine months ended May 31, 2021, the Japanese economy was picking up even under the severe situation due to the Novel Coronavirus (COVID-19). However, the economy became weaker in some respects, and there was a tendency toward polarization.

In the semiconductor sector, which is our main sales sector, demand for logic is expanding rapidly amidst a growing demand for memory, and the market environment is currently at a record high level. Moreover, this high-level market environment is expected to continue for some time. Although the flat panel display (FPD) sector was temporarily stagnant, investment in Generation 6 Organic Light Emitting Diode (OLED) for the Chinese market is recovering rapidly, while another investment in Generation 10.5 LCD panels is also showing signs of recovery. The trend toward recovery in the FPD investment is expected to continue for some time, albeit at a sluggish rate.

Under these economic circumstances, the semiconductor sector saw robust orders due to a ramp-up in orders for bulk production from a new customer, as well as an increase in orders from existing customers. In the FPD sector, orders are expected to remain strong due to increasing orders from the new customer as well as existing customers, amid the recovery trend in the market. Expenses remained almost in line with initial expectations.

As a result, the operating results for the nine months ended May 31, 2021 were net sales of 3,615 million yen (year-on-year growth of 13.6%), operating profit of 776 million yen (year-on-year growth of 23.4%), ordinary profit of 772 million yen (year-on-year growth of 28.7%), and profit of 556 million yen (year-on-year growth of 12.7%).

Since the Company has only one segment, the precision parts business, a description by segment is omitted. The operating results of the precision parts business, by sales sector are described below.

The Semiconductor Sector

In the semiconductor sector, orders received increased by 32.1% year-on-year to 3,321 million yen, and net sales increased by 27.1% year- on-year to 2,921 million yen.

The FPD Sector

In the FPD sector, orders received increased by 4.7% year-on-year to 777 million yen, and net sales decreased by 42.9% year-on-year to 451 million yen.

The Other Sectors

In the other sectors, orders received increased by 972.4% year-on-year to 174 million yen, and net sales increased by 800.1% year-on- year to 153 million yen.

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