Final Results
Maruwa Co Ld
29 May 2001
Contact: Shiro Baba, Kyoko Isomura
Management And Planning Office
Tel: +8 1-561-51-0839/Fax: +81-561-51-0893
SUMMARY OF CONSOLIDATED FINANCIAL RESULTS OF MARUWA CO.. LTD. FOR THE FISCAL
2000 ENDED MARCH 31, 2001.
* The Company's fiscal year end is March 31st. In this material, references to
'fiscal 1999', 'fiscal 2000' and 'fiscal 2001' are to the Company's fiscal
year ended March 31st, 2000, and other fiscal years are referred to in a
corresponding manner.
Fiscal 1999: April 1, 1999 - March 31, 2000
Fiscal 2000: April 1, 2000 - March 31, 2001
Fiscal 2001: April 1, 2001 - March 31, 2002
* The consolidated financial statements of MARUWA CO., LTD. are prepared in
conformity with the accounting principles generally accepted in Japan.
* US dollar amounts are translated from yen, for convenience only, at the rate
of US$1=123.90.
1. Summary of Consolidated Results
(1) Summary of Consolidated Statement of Income
U.S. dollars
Yen (Millions) (Thousands)
FY2000 FY1999 Change (%) FY2000
Net Sales Y16,100 Y12,168 +32.3 $129,943
Operating Income 3,633 1,796 +102.3 23,319
Income Before Income Taxes 3,572 1,540 +132.0 28,833
Net Income Y2,632 Y913 +188.2 $21,243
FY2000 FY1999
Net Income Per Share of Common Stock Y 262.09 Y 90.88
Return On Shareholder's Equity 11.5% 4.4%
(2) Summary of Consolidated Financial Condition
U.S. dollars
Yen (Millions) (Thousands)
FY2000 FY1999 FY2000
Total Assets Y30,943 Y23,941 Y249,741
Shareholder's Equity 24,797 20,983 200,139
Shareholder's Equity Ratio 80.1% 87.6%
Shareholders' Equity Per Share Y2,255.73 Y2,087.93 $18.21
(3) Summary of Consolidated Statements of Cash Flows
U.S. dollars
Yen (Millions) (Thousands)
FY2000 FY1999 FY2000
Cash Flows from Operating Activities Y2,543 Y2,396 Y20,521
Cash Flows from Investing Activities (3,882) (1,042) 31,330
Cash Flows from Financing Activities 2,612 (236) 21,082
Cash and Cash Equivalents at Year End Y9,254 Y8,009 $74,690
Consolidated Subsidiaries 4 companies
2. Projections
(1) Consolidated Earnings Forecast for 1st Half of FY2001
Yen Change
(Millions) (%)
Net Sales Y7,790 -2.6
Net Income Y1,200 -6.5
(2) Consolidated Earnings Forecast for FY2001
Yen Change
(Millions) (%)
Net Sales Y17,320 +7.6
Net Income Y2,680 +1.8
Cautionary Statements: The above forecasts are forward-looking statements
involving risks and uncertainties. Due to a number of factors, actual results
may differ significantly from these estimates.
3. Management Policies
(1) Basic Management Policy
It is the corporate vision Of MARUWA CO., LTD. and its consolidated
subsidiaries (together with the Company, 'MARUWA') to become known as
'MARUWA of ceramic Material and Technology'. In order to achieve this goal,
we strive to increase corporate value by placing most importance on 'Quality
Number One' policy, followed by constant technology innovation, and
responding to the expectation of all the stakeholders including shareholders,
customers, and employees.
(2) Dividend Policy
MARUWA's basic policy is to maintain stable dividend payments to the
shareholders. The amount of dividend will he determined based on the
financial conditions, operation results, and earnings dividend ratio, as we
conduct aggressive capital expenditures on R&D and production equipment to
continually develop and implement technology in response to the market
demand.
(3) Business Strategy and Management Issues
In the midst of the rapidly changing information technology and
expectation towards innovation and continual growth, MARUWA aims to increase
corporate value by increasing profitability and securing growth. In order to
achieve this goal, basic technologies such as ceramic material technology,
electronic circuit design technology, and multi layer technology acquired in
the past are being utilized in the area of telecommunication. In regards to
profitability, we implement management indices such as return on equity (ROE)
and EVA. In order to realize MARUWA's growth strategy, innovation is being
promoted in the current management to create a horizontal structure that will
allow us to operate with speed and resilience.
Also, in order to further expand in the area of global operation, research
and development related to the telecommunication industry will begin at
MARUWA Europe, Ltd. where production activity is scheduled to begin this
fall.
In the area of global environmental conservation, MARUWA will aggressively
engage in development of environmentally friendly products, and has set up a
zero waste project to decrease environmental burden.
4. Results of Operation
Looking at the world economy, in the first half of fiscal 2000, corporate
revenues headed for recovery as the IT related industry showed sustained
growth. However, from the end of the year, the effect of a sudden
deceleration in the US economy, or otherwise described as a burst of IT
bubble, spread to Europe and Asia to result in the slowdown in the global
economy. Japanese economy was also affected, slowing down the individual
consumption to a standstill, and the climate has suddenly become very harsh.
In this state, MARUWA, as a 'material' manufacturer in the upstream of the
electronic component industry, conducted enhancement of technology, continued
to supply products competitive in the global market and promoted
establishment of management structure that will be able to flexibly exert
strength even in the severe environment.
As a result, the consolidated net sales for fiscal 2001 were Y16,100
million (32.3% increase from the fiscal 1999). In regards to income,
aggressive capital expenditures were conducted against circuit ceramic
products department, and full operation was maintained in the production. In
the capacitor business, while market was suffering from excess inventory,
concentration was stressed on high capacitance capacitors that were showing
stable sales. As a result, the consolidated operating income was Y3,633
million (102.3% increase from the fiscal 1999), the consolidated income
before income taxes was Y3,572 million (132.0% increase from the fiscal
1999), and the consolidated net income was Y2,632 million (188.2%. increase
from the fiscal 1999). In calculating the net income, the total expense of
Y254 million for listing on London Stock Exchange and Singapore Stock
Exchange approved on Dec. 18th, 2000, and overseas offering conducted in
Europe whose proceed is to be used for development of new products, was
accounted for as other net.
5. Outlook for Fiscal 2001
Due to the sudden slowdown in the US economy, global economy is also
struck with the possibility of a slowdown. The current direction seems to be
towards stagnation, and future is covered with uncertainty. However,
beginning this year, individual consumption seems to be regaining grounds in
the US. With a start of the next generation mobile phone services overseas,
it is expected that corporate and government investment in information
technology in Japan will also accelerate, and it is projected that gradual
recovery will appear from the latter half.
Under this business environment, MARUWA forecasts consolidated net sales
of Y17,320 million (7.6% increase from the fiscal 2000) and net income of
Y2,680 million (1.9% increase from the fiscal 2000).
Cautionary Statements: The above forecasts are forward-looking statements
involving risks and uncertainties. Due to a number of factors, actual results
may differ significantly from these estimates.
6. Consolidated Balance Sheet
U.S. dollars
Yen (millions) Change (Thousands)
FY2000 FY1999 (%) FY2000
ASSETS
Current assets:
Cash and deposits Y1,567 Y1,430 +9.6 $12,648
Marketable securities 7,687 6,579 +16.8 62,042
Notes and accounts receivable,
trade 3,946 3,518 +12.2 31,845
Allowance for doubtful accounts (58) (48) +19.4 (466)
Inventories 3,850 2,214 +73.9 31,073
Deferred income taxes 69 39 +74.9 555
Other current assets 503 317 +59.0 4,064
Total current assets 17,564 14,049 +25.0 141,761
Property, plant and equipment:
Land 2,409 1,997 +20.6 19,441
Building and structures 4,392 2,918 +50.5 35,447
Machinery and equipment 9,796 6,939 +41.2 79,065
Construction in progress 399 528 -24.4 3,221
Total 16,996 12,382 +37.3 137,174
Less - Accumulated depreciation (5,615) (5,152) +9.0 (45,317)
Net property, plant and
equipment 11,381 7,230 +57.4 91,857
Investments and other assets:
Investment securities 503 372 +35.5 4,063
Deferred income taxes 9 8 +8.9 73
Property and equipment for
investments 1,094 1,094 +0.0 8,830
Other 392 233 +67.9 3,157
Total investments and other
assets 1,998 1,707 +17.0 16,123
Cumulative translation adjustment 955
Total assets Y30,943 Y23,941 +29.2 $249,741
LIABILITIES AND SHAREHOLDERS' EQUITY
Current liabilities:
Current portion of long-term debt Y199 Y56 +253.2 $1,608
Notes and accounts payable, trade 1,358 1,021 +33.0 10,956
Accrued income taxes 667 478 +39.5 5,382
Other current liabilities 2,911 1,119 +160.3 23,490
Total current liabilities 5,135 2,674 +92.1 41,436
Long-term liabilities:
Long-term debt 863 158 +448.6 6,964
Accrued pension and severance costs 25 46 -46.7 199
Other 124 80 +54.2 1,003
Total long-term liabilities 1,012 284 +256.1 8,166
U.S. dollars
Yen (millions) Change (Thousands)
FY2000 FY1999 (%) FY2000
Shareholders' equity:
Common stock, Y50 par value,
26,000,000 shares;
Authorized, issued and outstanding:
FY 2000 - 10,050,000 shares 6,683 5,656 +18.2 53,942
FY 2001 - 11,050,000 shares
Additional paid-in capital 9,710 8,683 +11.8 78,373
Retained earnings 9,186 6,681 +37.5 74,139
Net unrealized gains on other
securities - - - -
Translation adjustments 79 - - 640
Cumulative translation adjustment (660) - - (5,326)
Treasury stock, at cost (202) (37) +448.6 (1,629)
Total, shareholders' equity 24,797 20,983 +18.2 200,139
Total liabilities and
shareholders' equity Y30,943 Y23,941 +29.2 $249,741
7. Consolidated Statement of Income
U.S. dollars
Yen (millions) Change (Thousands)
FY2000 FY1999 (%) FY2000
Net sales Y16,100 Y12,168 +32.3 $129,943
Cost of sales 10,481 8,671 +20.9 84,589
Gross profit 5,619 3,497 +60.7 45,354
Selling, general and administrative
expenses 1,986 1,701 +16.8 16,035
Operating income 3,633 1,796 +102.3 29,319
Other income (expense):
Interest and dividend income 45 64 -28.8 366
Interest expense (12) (4) +155.6 (96)
Foreign exchange gain (loss), net 127 (125) - 1,023
Other, net (221) (191) +16.1 (1,779)
Other income, net (61) (256) -76.4 (486)
Income before Income taxes 3,572 1,540 +132.0 28,833
Income taxes:
Current 985 639 +54.3 7,957
Deferred (45) (12) +272.2 (367)
940 627 +50.1 7,590
Net income Y2,632 Y913 +188.2 $21,243
8. Consolidated Statement of Cash Flows
U.S. dollars
Yen (millions) (Thousands)
FY2000 FY1999 FY2000
Operating activities:
Income before income taxes Y3,572 Y1,540 $28,833
Adjustments for:
Depreciation 1,133 866 9,144
Provision for allowance for doubtful accounts 11 22 90
Decrease in accrued pension and severance cost (22) - (174)
Gains on disposal of securities to establish
retirement trust (72) - (578)
Retirement benefit trust 101 - 816
Interest and dividend income (45) (64) (366)
Foreign exchange loss 5 301 38
Loss on disposal of property, plant and
equipment 135 34 1,094
Loss (gain) on sales of marketable securities - - -
Loss on subsidiary liquidation - - -
Increase in notes and account receivable. (347) (1,322) (2,804)
(Increase) decrease in Inventories (1,611) 588 (13,004)
(Increase) decrease in other receivables - - -
Decrease in accounts payable 433 657 3,493
Other 19 (106) 150
Sub total 3,312 2,516 26,732
Interest and dividend income received 45 64 364
Interest expenses paid (24) (4) (196)
Income taxes paid (790) (180) (6,379)
Net cash provided by operating activities 2,543 2,396 20,521
Investing activities:
Payment for purchase of property, plant
and equipment (3,820) (1,051) (30,835)
Proceeds from sales of property, plant
and equipment 122 10 985
Payments for purchase of investment securities (25) (88) (204)
Proceeds from sales of marketable securities - 86 -
Loan (2) - (12)
Collection from loan receivables 1 1 8
Increase in intangible fixed assets (158) (1,272)
Other - 0 -
Net cash used in investing activities (3,882) (1,042) (31,330)
Financing activities:
Issuance of long-term debt 1,000 - 8,071
Payments of long-term debt (152) (56) (1,224)
Proceeds from issuance of new shares 2,054 - 16,578
Sales of treasury stock 25 40 198
Purchase of treasury stock (195) (10) (1,571)
Cash dividend paid (120) (210) (970)
Net cash provided by (used in) financing
activities 2,612 (236) 21,082
Effect of exchange changes on cash and cash
equivalents (28) (25) (224)
Net increase (decrease) in cash and cash
equivalents 1,245 1,093 10,049
Cash and cash equivalents at beginning of year 8,009 6,780 64,641
Increased cash and cash equivalents due to the
newly consolidated companies - 219 -
Decreased cash and cash equivalents due to
exclusion of the consolidated company - (83) -
Cash and cash equivalents at end of year Y9,254 Y8,009 $74,690
9. Segment Information
(1) Consolidated Business Segment Information
MARUWA's business is comprised of one segment. Therefore, segment breakdown
is not applicable.
(2) Consolidated Geographic Segment Information
U.S. dollars
Yen (millions) Change (Thousands)
FY2000 FY1999 (%) FY2000
Japan Net Sales
Unaffiliated
Customers Y10,791 Y8,291 +30.1 $87,092
Intersegment 881 980 -10.1 7,110
Total Y11,672 Y9,271 +25.9 $94,202
Operating Cost Y8,950 Y7,539 +18.7 $72,232
Operating Income
(Loss) 2,722 1,732 +57.1 21,970
Assets 19,478 14,508 +34.3 157,211
Asia Net Sales
Unaffiliated
Customers 4,420 3,306 +33.7 35,672
Intersegment 1,214 927 +30.9 9,799
Total 5,634 4,233 +33.1 45,471
Operating Cost 4,248 3,682 +15.4 34,283
Operating Income
(Loss) 1,386 551 +151.7 11,188
Assets 7,531 4,667 +61.4 60,786
Europe Net Sales
Unaffiliated
Customers 889 571 +55.8 7,180
Intersegment 7 9 -19.4 56
Total 896 580 +54.6 7,236
Operating Cost 883 582 +51.8 7,129
Operating Income 13 -
(Loss)
(2) 106
Assets 633 171 +270.4 5,108
Total Net Sales
Unaffiliated
Customers 16,100 12,168 +32.3 129,943
Intersegment 2,102 1,916 +9.7 16,966
Total 18,202 14,084 +29.2 146,909
Operating Cost 14,081 11,803 +19.3 113,644
Operating Income
(Loss) 4,121 2,281 +80.7 33,264
Assets 27,642 19,346 +42.9 223,105
Elimination Net Sales
Total (2,102) (1,916) +9.7 16,966
Operating cost (1,614) (1,431) +12.8 13,020
Operating Income
(Loss) (488) (485) +0.7 3,945
Assets 3,301 4,595 -28.2 26,636
Consolidated Net Sales
Total Total Y16,100 Y12,168 +32.3 $129,943
Operating cost Y12,467 Y10,372 +20.2 $100,624
Operating Income
(Loss) Y3,633 Y1,796 +102.3 $29,319
Assets Y30,943 Y23,941 +29.2 $249,741
(3) Net Overseas Sales by Customer's Geographic Location
US. Dollars
Yen (Millions) (Thousands)
% Of % Of
FY2000 Consolidated FY1999 Consolidated FY2000
Net Sales Net Sales
Overseas Asia Y7,385 45.9% Y5,956 48.9% $59,604
Sales Europe 972 6.0% 654 5.4% 7,847
Others 350 2.2% 188 1.6% 2,826
Total 8,707 54.1% 6,798 55.9% 70,277
Consolidated
Net Sales Y16,100 Y12,168 $129,943
* Countries are divided in geographical vicinity.
* Main countries included in each area are as indicated below;
Asia - Malaysia, Taiwan, Korea
Europe - Germany, England
Others - United States
* Overseas Sales indicate net sales of the Company and its subsidiaries to
customers outside Japan.
Summary of Consolidated Results
(Million Yen)
FY1999 FY2000
00/03 01/03
Result Difference Change (%) Result Difference Change (%)
Net Sales 12,168 4,311 54.9% 16,100 3,932 32.3%
Operating
Income 1,796 344 23.7% 3,633 1,837 102.3%
Ordinary
Income 1,792 646 56.4% 3,886 2,094 116.9%
Income Before
Income Tax 1,541 577 59.9% 3,572 2,031 131.8%
Net Income 914 213 30.4% 2,632 1,718 188.0%
Earnings per
Share (EPR) 90.88 21.13 30.3% 262.09 171.21 188.4%
Return On
Equity (ROE) 4.4% 0.9% 25.7% 11.5% 7.1% 161.4%
Capital
Expenditure 1,058 ^210 ^16.6% 5,469 4,411 416.9%
Depreciation 835 ^16 ^1.9% 1,133 298 35.7%
Net Income +
Depreciation 1,749 197 12.7% 3,765 2,016 115.3%
(Million Yen) FY2001
02/03
Result Difference Change (%)
Net Sales 17,320 1,220 7.6%
Operating
Income 3,740 107 2.9%
Ordinary
Income 3,930 44 1.1%
Income Before
Income Tax 3,930 358 10.0%
Net Income 2,680 48 1.8%
Earnings per
Share (EPR) 242.53 ^19.56 ^7.5%
Return On
Equity 10.5% ^1.0% ^8.7%
Capital
Expenditure 5,000 ^469 ^8.6%
Depreciation 1,760 627 55.3%
Net Income +
Depreciation 4,440 675 17.9%
Summary of Consolidated Results per Division
(Million Yen) FY1999 FY2000
00/03 01/03
Result Difference Change (%) Result Difference Change (%)
Net Sales
Circuit
Ceramics 5,989 286 5.0% 7,671 1,682 28.1%
Machinery
Ceramics 1,375 ^148 ^9.7% 1,588 213 15.5%
High
Frequency 767 136 21.6% 1,191 424 55.3%
Capacitors 4,037 4,037 5,650 1,613 40.0%
Total 12,168 4,311 54.9% 16,100 3,932 32.3%
Operating
Income
Circuit
Ceramics 1,014 ^62 ^5.8% 2,253 1,239 122.2%
Machinery
Ceramics 87 ^168 ^65.9% 108 21 24.1%
High
Frequency 141 20 16.5% 168 27 19.1%
Capacitors 554 554 1,104 550 99.3%
Total 1,796 344 23.7% 3,633 1,837 102.3%
Operating
Income ((As % Sales))
Circuit
Ceramics 16.9% 29.4%
Machinery
Ceramics 6.3% 6.8%
High
Frequency 18.4% 14.1%
Capacitors 13.7% 19.5%
Total 14.8% 22.6%
(Million Yen) FY2001
02/03
Result Difference Change (%)
Net Sales
Circuit
Ceramics 8,440 769 10.0%
Machinery
Ceramics 1,800 212 13.4%
High
Frequency 1,430 239 20.1%
Capacitors 5,650 0 0.0%
Total 17,320 1,220 7.6%
Operating
Income
Circuit
Ceramics 2,270 17 0.8%
Machinery
Ceramics 140 32 29.6%
High
Frequency 220 52 31.0%
Capacitors 1,110 6 0.5%
Total 3,740 107 2.9%
Operating
Income ((As % of Sales))
Circuit
Ceramics 26.9%
Machinery
Ceramics 7.8%
High
Frequency 15.4%
Capacitors 19.6%
Total 21.6%
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