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 Six Months Ended
February 28, 2021 (Japanese GAAP) (Non-consolidated)
March 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: inquiry_en@marumae.com |
Scheduled date for submission of the quarterly report: April 13, 2021
Scheduled start date of dividends payment: April 22, 2021
Preparation of supplementary materials for the quarterly financial results: Yes
Quarterly earnings release conference: Yes (for institutional investors)
Note: Amounts are rounded down to the nearest million yen.
1. Financial Results for the Six Months Ended February 28, 2021 (September 1, 2020 to February 28, 2021)
- Operating Results (Cumulative)
Note: Percentages indicate changes from the same period of the previous fiscal year.
Six months ended | ||||
February 29, 2020 | February 28, 2021 | |||
% | % | |||
Net sales (Millions of yen) | 2,018 | (4.2) | 2,299 | 13.9 |
Operating profit (Millions of yen) | 364 | 21.2 | 424 | 16.2 |
Ordinary profit (Millions of yen) | 341 | 16.2 | 422 | 23.7 |
Profit (Millions of yen) | 237 | 24.0 | 294 | 23.9 |
Earnings per share of common stock (Yen) | ||||
Basic | 18.22 | 23.01 | ||
Diluted | - | - | ||
Marumae
- Financial Position
As of | ||||||
August 31, 2020 | February 28, 2021 | |||||
Total assets (Millions of yen) | 8,894 | 8,689 | ||||
Net assets (Millions of yen) | 5,706 | 5,847 | ||||
Equity ratio (%) | 64.2 | 67.3 | ||||
Reference: | Equity: 5,847 million yen (as of February 28, 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) | - | - (Forecast) | ||||
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: Yes |
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) | 4,980 | 13.5 |
Operating profit (Millions of yen) | 1,020 | 13.8 |
Ordinary profit (Millions of yen) | 1,000 | 19.9 |
Profit (Millions of yen) | 705 | 2.1 |
Earnings per share (Yen) | 55.07 | |
Note: Revision to the most recently announced financial forecasts: Yes |
Marumae
Notes
- Adoption of special accounting methods for preparation of quarterly financial statements: None
- Changes in accounting policies, changes in accounting estimates and restatements
- Changes in accounting policies along with changes in accounting standards: None
- Changes in accounting policies, other than those included in 1. above: None
- Change in accounting estimates: None
- Restatements: None
- Number of shares issued and outstanding (common stock)
- Number of shares issued and outstanding (including treasury shares)
As of February 28, 2021: | 13,053,000 shares |
As of August 31, 2020: | 13,053,000 shares |
2. Number of shares of treasury shares | |
As of February 28, 2021: | 250,196 shares |
As of August 31, 2020: | 250,196 shares |
3. Average number of shares outstanding (cumulative quarterly period) | |
Six months ended February 28, 2021: | 12,802,804 shares |
Six months ended February 29, 2020: | 13,052,814 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 report issuance, 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.
1
Marumae
1. Qualitative Information on Quarterly Financial Results
- Description of Operating Results
For the six months ended February 28, 2021, the Japanese economy was still in a severe situation due to the Novel Coronavirus (COVID-19). However, capital investment is showing signs of picking up.
In the semiconductor sector, which is our main sales sector, capital investment for foundries was solid and demand for memory increased. In addition, the semiconductor investment plan for this year is currently expected to remain strong. Although the flat panel display (FPD) sector was temporarily stagnant, investment in Generation 6 Organic Light Emitting Diode (OLED) and Generation 10.5 LCD panels for the Chinese market recovered, compared to initial expectations. The trend toward recovery in the FPD investment plan is expected to continue for some time.
Under these economic circumstances, the semiconductor sector saw robust orders due to an increase in orders from new customers, as well as an increase in orders for new product types from existing customers. In the FPD sector, orders were firm amid a sluggish market, thanks to growing orders for products manufactured with large-scale electronic beam welder (EBW), as well as an increase in orders for new product types from new customers. With respect to expenses, the ratio of material costs remained below initial expectations. However, general and administrative expenses were slightly higher than the most recently announced forecast, due to an unfulfilled project aimed at merger and acquisition, as payment fees for the company survey were incurred in advance in February 2021, which was earlier than initially planned.
As a result, the operating results for the six months ended February 28, 2021 were net sales of 2,299 million yen (year-on-year growth of 13.9%), operating profit of 424 million yen (year-on-year growth of 16.2%), ordinary profit of 422 million yen (year-on-year growth of 23.7%), and profit of 294 million yen (year-on-year growth of 23.9%).
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 29.6% year-on-year to 1,988 million yen, and net sales increased by 32.2% year-on-year to 1,870 million yen.
The FPD Sector
In the FPD sector, orders received decreased by 18.3% year-on-year to 394 million yen, and net sales decreased by 48.9% year-on-year to 275 million yen.
The Other Sector
In the other sector, orders received increased by 891.1% year-on-year to 143 million yen, and net sales increased by 759.6% year-on-year to 94 million yen.
2
Marumae
- Description of Financial Position
1. Assets, Liabilities and Net Assets Assets
Assets decreased by 204 million yen compared to the end of the previous fiscal year, to 8,689 million yen. This was mainly due to a decrease in cash and deposits of 378 million yen, offsetting increases in property, plant and equipment and electronically recorded monetary claims - operating of 89 million yen and 88 million yen, respectively.
Liabilities
Liabilities decreased by 345 million yen compared to the end of the previous fiscal year, to 2,842 million yen. This was mainly due to decreases in long-term borrowings, other current liabilities, and income taxes payable of 194 million yen, 121 million yen, and 104 million yen, respectively, offsetting an increase in notes and accounts payable - trade of 62 million yen.
Net assets
Net assets increased by 140 million yen compared to the end of the previous fiscal year, to 5,847 million yen. This was mainly due to an increase in retained earnings of 140 million yen from the recording of profit of 294 million yen, offsetting a decrease resulting from the payment of dividends of 153 million yen.
As a result, the equity ratio increased to 67.3%, from 64.2% in the previous fiscal year.
2. Cash Flows
Cash and cash equivalents (hereinafter, refer to as "cash") for the six months ended February 28, 2021 decreased by 378 million yen compared to the end of the previous fiscal year, to 2,161 million yen.
The status and factors regarding cash flows for the six months ended February 28, 2021 are as described below.
Cash flows from operating activities
Cash provided by operating activities was 337 million yen (compared to 577 million yen in the same period of the previous fiscal year). The major increasing factors were profit before income taxes of 422 million yen and depreciation of 302 million yen. The major decreasing factors were income taxes paid of 233 million yen, a decrease in accrued consumption taxes of 158 million yen, and an increase in trade receivables of 93 million yen.
Cash flows from investing activities
Cash used in investing activities was 368 million yen (compared to 81 million yen in the same period of the previous fiscal year). This was mainly due to payment for purchase of property, plant and equipment of 364 million yen.
Cash flows from financing activities
Cash used in financing activities was 348 million yen (compared to 256 million yen in the same period of the previous fiscal year). This was mainly due to repayments of long-term borrowings of 194 million yen and dividends paid of 153 million yen.
3
Marumae
- Description of Financial Estimates Information such as Financial Forecasts
The Company, as of today (March 30, 2021), has revised the financial forecasts for the fiscal year ending August 31, 2021, based on recent trends in financial results and orders received. For details, see "Notice Concerning Revision of Financial Results and Dividends Forecasts (dividend increase)," announced today.
4
Marumae | |||
3. Quarterly Financial Statements and Notes | |||
(1) Quarterly Balance Sheet | |||
(Thousands of yen) | |||
As of August 31, 2020 | As of February 28, 2021 | ||
ASSETS | |||
Current assets | |||
Cash and deposits | 2,540,381 | 2,161,708 | |
Notes and accounts receivable - trade | 719,505 | 724,291 | |
Electronically recorded monetary claims - operating | 656,828 | 745,132 | |
Merchandise and finished goods | 6,402 | 9,445 | |
Work in process | 426,814 | 408,368 | |
Raw materials and supplies | 5,256 | 12,216 | |
Other | 17,369 | 30,802 | |
Allowance for doubtful accounts | (2,888) | (3,082) | |
Total current assets | 4,369,671 | 4,088,881 | |
Non-current assets | |||
Property, plant and equipment | |||
Buildings, net | 1,593,303 | 1,565,194 | |
Structures, net | 69,877 | 66,065 | |
Machinery and equipment, net | 1,775,284 | 1,866,035 | |
Vehicles, net | 25,068 | 20,499 | |
Tools, furniture and fixtures, net | 14,874 | 14,962 | |
Land | 766,549 | 766,549 | |
Leased assets, net | 3,735 | 3,396 | |
Construction in progress | 109,163 | 144,888 | |
Total property, plant and equipment | 4,357,856 | 4,447,590 | |
Intangible assets | 65,244 | 57,392 | |
Investments and other assets | 101,694 | 95,966 | |
Total non-current assets | 4,524,795 | 4,600,949 | |
Total assets | |||
8,894,466 | 8,689,831 | ||
5
Marumae | |||
(Thousands of yen) | |||
As of August 31, 2020 | As of February 28, 2021 | ||
LIABILITIES | |||
Current liabilities | |||
Notes and accounts payable - trade | 115,698 | 178,004 | |
Current portion of long-term borrowings | 389,512 | 389,512 | |
Income taxes payable | 244,704 | 139,719 | |
Provision for loss on order received | 19,500 | 23,100 | |
Provision for share-based remuneration | - | 8,000 | |
Other | 414,299 | 292,721 | |
Total current liabilities | 1,183,714 | 1,031,057 | |
Non-current liabilities | |||
Long-term borrowings | 1,970,706 | 1,775,950 | |
Provision for retirement benefits | 18,953 | 21,235 | |
Asset retirement obligations | 1,069 | 1,069 | |
Other | 13,928 | 13,466 | |
Total non-current liabilities | 2,004,658 | 1,811,721 | |
Total liabilities | |||
3,188,372 | 2,842,779 | ||
NET ASSETS | |||
Shareholders' equity | |||
Share capital | 1,241,157 | 1,241,157 | |
Capital surplus | 1,938,342 | 1,938,342 | |
Retained earnings | 2,688,566 | 2,829,524 | |
Treasury shares, at cost | (161,971) | (161,971) | |
Total shareholders' equity | 5,706,094 | 5,847,052 | |
Total net assets | |||
5,706,094 | 5,847,052 | ||
Total liabilities and net assets | 8,894,466 | 8,689,831 | |
6
Marumae | |||
(2) Quarterly Statement of Income | |||
(Six-month period) | |||
(Thousands of yen) | |||
Six months ended | Six months ended | ||
February 29, 2020 | February 28, 2021 | ||
Net sales | 2,018,387 | 2,299,189 | |
Cost of sales | 1,412,923 | 1,588,738 | |
Gross profit | 605,464 | 710,451 | |
Selling, general and administrative expenses | 240,496 | 286,334 | |
Operating profit | 364,967 | 424,117 | |
Non-operating profit | |||
Interest income | 445 | 16 | |
Foreign exchange gains | 1,511 | 612 | |
Insurance claim income | - | 4,392 | |
Other | 871 | 1,496 | |
Total non-operating profit | 2,828 | 6,517 | |
Non-operating expenses | |||
Interest expenses | 9,256 | 8,039 | |
Compensation expenses | 16,832 | - | |
Other | 161 | 1 | |
Total non-operating expenses | 26,250 | 8,040 | |
Ordinary profit | 341,545 | 422,593 | |
Extraordinary income | |||
Gain on sales of non-current assets | - | 19 | |
Total extraordinary income | - | 19 | |
Extraordinary losses | |||
Loss on retirement of non-current assets | - | 2 | |
Total extraordinary losses | - | 2 | |
Profit before income taxes | 341,545 | 422,611 | |
Income taxes - current | 109,092 | 122,868 | |
Income taxes - deferred | (5,321) | 5,150 | |
Total income taxes | 103,771 | 128,019 | |
Profit | 237,773 | 294,591 | |
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Marumae | |||
(3) Quarterly Statement of Cash Flows | |||
(Thousands of yen) | |||
Six months ended | Six months ended | ||
February 29, 2020 | February 28, 2021 | ||
Cash flows from operating activities | |||
Profit before income taxes | 341,545 | 422,611 | |
Depreciation | 264,028 | 302,509 | |
Increase (decrease) in allowance for doubtful accounts | 360 | 194 | |
Increase (decrease) in provision for loss on order received | - | 3,600 | |
Increase (decrease) in provision for share-based remuneration | - | 8,000 | |
Increase (decrease) in provision for retirement benefits | 1,774 | 2,282 | |
Interest and dividend income | (445) | (16) | |
Insurance claim income | - | (4,392) | |
Interest expenses | 9,256 | 8,039 | |
Foreign exchange losses (gains) | (930) | (612) | |
Gain on sales of non-current assets | - | (19) | |
Loss on retirement of non-current assets | - | 2 | |
Decrease (increase) in trade receivables | (172,714) | (93,090) | |
Decrease (increase) in inventories | (38,072) | 8,444 | |
Increase (decrease) in trade payables | 38,956 | 62,306 | |
Increase (decrease) in accrued consumption taxes | 69,592 | (158,259) | |
Decrease (increase) in other current assets | 14,231 | (13,550) | |
Increase (decrease) in other current liabilities | 19,269 | 29,159 | |
Other, net | (3,161) | (2,793) | |
Subtotal | 543,689 | 574,415 | |
Interest and dividends received | 445 | 16 | |
Interest paid | (9,080) | (7,933) | |
Proceeds from insurance income | - | 4,392 | |
Income taxes paid | (2) | (233,023) | |
Income taxes refund | 42,155 | - | |
Net cash provided by operating activities | 577,207 | 337,867 | |
Cash flows from investing activities | |||
Purchase of property, plant and equipment | (78,851) | (364,918) | |
Proceeds from sales of property, plant and equipment | - | 19 | |
Purchase of intangible assets | (2,974) | (3,404) | |
Net cash used in investing activities | (81,826) | (368,303) | |
8
Marumae | |
Six months ended | Six months ended |
February 29, 2020 | February 28, 2021 |
Cash flows from financing activities
Proceeds from short-term borrowings
Repayments of short-term borrowings
Repayments of long-term borrowings
Purchase of treasury shares
Dividends paid
Repayments of finance lease obligations
Net cash used in financing activities
Effect of exchange rate change on cash and cash equivalents Net increase (decrease) in cash and cash equivalents
Cash and cash equivalents at beginning of period Cash and cash equivalents at end of period
- | 100,000 |
- | (100,000) |
(189,756) | (194,756) |
(43) | - |
(66,646) | (153,754) |
- | (339) |
(256,446) | (348,849) |
930 | 612 |
239,865 | (378,673) |
2,263,944 | 2,540,381 |
2,503,809 | 2,161,708 |
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Marumae
- Notes to the Quarterly Financial Statements Going concern assumption: None
Additional information
Accounting estimates associated with the COVID-19 pandemic
The worldwide spread of COVID-19 has had a widespread impact on the economy and business activities. The Company estimates that the outlook for the domestic economy remains uncertain.
In light of the external information available as of the end of the second quarter of the fiscal year ending August 31, 2021, the Company makes accounting estimates based on the assumption that the effect on the Company's financial results will be immaterial.
However, if the infection status of COVID-19 is prolonged, or if its effect on the economic environment changes, it is possible that it could impact the Company's financial position and operating results for the third quarter onward.
Significant changes in shareholders' equity: None
Adoption of special accounting methods for preparation of quarterly financial statements: None
Segment information, etc.
Segment information
Six months ended February 29, 2020 (from September 1, 2019 to February 29, 2020) and six months ended February 28, 2021 (from September 1, 2020 to February 28, 2021)
Since the Company has only one segment, the precision parts business, a description of segment information is omitted.
Significant subsequent event: None
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Disclaimer
Marumae Co. Ltd. published this content on 07 April 2021 and is solely responsible for the information contained therein. Distributed by Public, unedited and unaltered, on 07 April 2021 06:03:07 UTC.