Final Results

RNS Number : 6628L

Maruwa Co Ld

29 April 2015

 



								28 Apr 2015
MARUWA CO., LTD.
3-83, Minamihonjigahara-cho, Owariasahi-city, Aichi-pref., 488-0044 JAPAN
Final Results for Fiscal Year 2014
MARUWA CO., LTD. has announced its consolidated business results for the full fiscal year ended 31th March, 2015 as follows;
*The financial statements are prepared in accordance with the accounting principles generally accepted in Japan.
*US dollar amounts are converted by USD1 = JPY110.03  for your convenience only
*Number of consolidated subsidiaries: 14 companies  (Maruwa (Malaysia) Sdn. Bhd., Maruwa Melaka Sdn. Bhd., Maruwa Lightings Sdn. Bhd., Taiwan Maruwa Co., Ltd., MARUWA Electronics (Taiwan) Co., Ltd., Maruwa Europe Ltd., Maruwa America Corp., Maruwa Korea Co., Ltd., Maruwa (Shanghai) Trading Co., Ltd., MARUWA Electronic (India) Pvt.Ltd., MARUWA QUARTZ Co., Ltd., MARUWA SHOMEI Co., Ltd., Hokko Denshi Co., Ltd. and YAMAGIWA CORPORATION.
I. Summary of Consolidated Results
(1) Summary of consolidated statement of income
				million JPY				thousand USD
		For year ended		For year ended		Change %		For year ended
		31th March		31st March				31th March
		2014		2015				2015
Net sales		33,475		32,811		-2.0%		298,200
Operating income		3,350		2,404		-28.2%		21,858
Income before income taxes		3,614		1,746		-51.7%		15,715
Net income		2,586		884		-65.8%		7,881
				JPY				USD
Net income per share (Basic)		209.60		71.59		-65.8%		0.65
(Diluted)		209.50		71.59		--		--
*Average number of issued shares		12,336,985		12,350,052
(2) Summary of consolidated financial condition
				million JPY				thousand USD
		As of 31th March		As of 31th March		Change %		As of 31th March
		2014		2015				2015
Total Assets		49,569		49,445		-0.3%		437,427
Total net assets		40,015		41,000		2.5%		372,626
Equity ratio		80.7%		82.9%		2.2%
				JPY				USD
Total net assets per share		3,239.88		3,319.58		2.5%		30.17
*Number of issued shares at the year end		12,350,117		12,350,017
(3) Summary of consolidated statement of cash flows
				million JPY				USD thousand
		For year ended		For year ended		Change %		For year ended
		31th March		31th March				31th March
		2014		2015				2015
Net cash provided by operating activities		4,056		3,688		-9.1%		33,365
Net cash used in investing activities		(1,927)		(1,881)		2.4%		(17,096)
Net cash used in financing activities		170		(877)		615.9%		(7,970)
Cash and cash equivalents  at end of term		12,507		13,684		9.4%		124,213
II. Dividends				III. Outlook for FY2015 ending 31th March 2016
		JPY per share						million JPY
	Fiscal 2013	Fiscal 2014				Half year		Full year
		(forecast)		Net sales		15,000		34,000
Interim	17	18		Operating income		1,110		3,400
Year-end	17	18		Net income		500		2,200
Annual	34	36		Net income per share		40.49		202.43
*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.

Review of Operations and Financial Condition
I. Operating Results
				million JPY
	Previous		Current
	For year ended		For year ended		variance
	31th March 2014		31th March 2015		amount			%
Net sales	33,475		32,811		(664)			-2.0%
Operating income	3,350		2,405		(945)			-28.2%
Net income	2,586		884		(1,702)			-65.8%

(1)   Review of Operations

In this fiscal year, the United States economy has gradually recovered due to a steady recovery of employment environment, a rising trend of share prices and an improvement of personal consumption. European financial market has also regained stability. Meanwhile, in Asian economy including China, its prospects have been uncertain by the slowdown in the growth rate and unstable political situation.

In the Japanese economy, signs of upturn from the long deflationary trend are gradually shown by economic and fiscal policy of 'Abenomics'. However, the economic condition has still been uncertain because of a stagnation of personal consumption by the raising of the consumption tax.

Under the uncertain market condition, the MARUWA Group's business results during this fiscal year has stayed firm especially in the field of ceramic products for power modules.About the product (NFC sheet) for our communication terminal production majors, our pressed profit decrease that customer included stock disposal by the withdrawal of the communication terminal business of the communication terminal maker and large production adjustment. In the field of lighting equipment apparatus business, the inquiry of the community-related illumination changed including a road light smoothly, and the YAMAGIWA came out to the result of the constitution reinforcement steadily, but changed in the situation severe at all by market environment change and a change of assumption business environment more than it that included a consumption tax increase.

As a result, our consolidated net sales were 32,811 million yen (this is down 2.0% compared to the same period last fiscal year). Our operating income was 2,404 million yen (this is down 28.2% compared to the same period last fiscal year). Ordinary profit was 2,841 million yen (this is down 22.1% compared to the same period last fiscal year). We were profit improvement initiatives after the next, were carried out, such as structural reforms to the proper of the production facilities. Net income was 884 million yen (this is down 65.8% compared to the same period last fiscal year).

(2)   Operating Results by Business Division

				million JPY
			Current
	For year ended		For year ended
	31th March 2014		31th March 2015
Ceramic Components:
Net sales		21,279		21,389
Operating income		3,939		3,425
Lighting Equipment:
Net sales		12,196		11,422
Operating income		426		(82)
Total:
Net sales		33,475	32,811
Operating income		4,365	3,343
Elimination:
Net sales		--	--
Operating income	(1,015)		(939)
Consolidated:
Net sales		33,475	32,811
Operating income		3,350	2,404

1. The Ceramic Components Division

The total sales for this business segment was 21,389 million yen (this is up 0.5% compared to the same period last fiscal year). Operating profit was 3,425 million yen (this is down 13.0% compared to the same period last fiscal year).
Energy saving market and environment-related products market are still brisk and the sales of ceramic products for HEV and LED remained strong. In the NFC Ferrite sheet, the customer (China) was the rise of low-cost communication terminals, such as the customer is carried out by the business withdrawal and significant production adjustment, our sales were lower than the expected.

With regard to profitability, energy saving, but for environment -related markets were the NFC ferrite sheets from the fact that it is assumed that continue to be severe in the future, as efforts to improve the profitability and reduction of excess facilities was carried out, we conducted a review of significant profitability aimed at improving profitability of time intention. The NFC ferrite sheet is progressing steadily even development projects on non- communication terminal market, we will continue to focus.

2. Lighting Equipment Division

The total sales for this business segment was 11,422 million yen (this is down 6.3% compared to the same period last fiscal year). Operating profit loss was 82 million yen (426 million yen to the same period last fiscal year).
We've released the LED lighting equipment that private ceramic technology. Although orders for road lights equipment were strong, but total sales was decrease at assumption to the same period last fiscal year by a change of the business environment such as lack of a consumption tax increase and the construction material or the labor shortage of the construction site. The high value-added illumination of YAMAGIWA decreased by having been behind the original order plan.

We look forward to the expectations of the future, demand increased towards the redevelopment of the Tokyo Olympic Games and linear motor cars.

We are the development of new lighting equipment, we will focus on the reconstruction of the sales strategy that takes advantage of the strengths of the release and product.

(3)   Outlook for the next fiscal year

				million JPY
		For year ended		For year ended	variance
		31th March 2015		31th March 2016	%
Net sales	32,811		34,000			3.6%
Operating income	2,404		3,400			41.4%
Net income	884		2,500			182.8%
Sales by segment				million JPY
		For year ended		For year ended	variance
		31th March 2015		31th March 2016	%
Ceramic Components		21,389		23,700		10.8%
Lighting Equipment		11,422		10,300		-9.8%
Total		32,811		34,000		3.6%
*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.

The outlook of the world economy is still uncertain because of economic slowdown of emerging markets including China and Ukraine crisis. It is anticipated that Japanese economy would still be under uncertain condition.

It is expected that an environment-related product market, which is identified as our growth strategy, would continue strong. Continuous expansion of LED lighting market and increasing demand in a luxury properties market, which is the most respective areas for YAMAGIWA, are also expected. We will continue to focus on development of new products and sales expansion by combining material and component technologies from MARUWA with brand power and solution providing from YAMAGIWA.

We forecast that consolidated net sales for the next fiscal year will be 34,000 million yen (up 3.6% compared to last fiscal year). In terms of operating income is expected to be 3,400 million yen (up 41.4% compared to last fiscal year), net income 2,500 million yen (up 182.8% compared to last fiscal year).

For capital investment, we will continue to invest energy saving, environmental-related, information, communication, medical and optical communication business to meet customers' needs. In addition, we have a plan to strengthen R&D with human resources and development of new value-added products. We will perform the reduction to the stakeholder including the stockholder in future that it promotes reinforcement and the profit improvement of the corporate culture by performing management to also support a change of the business environment in each business effectively quickly, and

MARUWA Group will strengthen the corporate structure and improve profitability, which will benefit all stakeholders, including shareholders.

(Cautionary statements about forecast)

The above forecasts are based on the present business environment and currently-available information, and including forward-looking statements involving risks and uncertainties. The reader is cautioned not to place reliance entirely on the above forecast for making investment decisions. Due to a number of factors, such as future economic situations and market environment changes, actual results may differ significantly from these estimates.

Ⅱ. Financial Results

					million JPY		million JPY
		As of 31th March		As of 31th March			Change
		2014		2015			Amount	%
Total assets			49,569		49,445		-124	-0.3%
Total liabilities			9,554		8,445		-1,108	-11.6%
Total net assets			40,015		41,000		984	2.5%
Equity ratio			80.7%		82.9%		2.2%
					million JPY		million JPY
		For year ended		For year ended			Change
		31th March 2014		31th March 2015			Amount	%
Net cash provided by  operating activities			4,056		3,688		-368	-9.1%
Net cash used in  investing activities			(1,927)		(1,881)		46	2.4%
Net cash used in  financing activities			170		(877)		-1,047	615.9%
Cash and cash equivalents  at end of year			12,507		13,684		1,177	9.4%
Net sales			33,475		32,811		-664	-2.0%
Capital expenditure			3,237		3,032		-205	-6.3%
Depreciation			2,308		2,137		-171	-7.4%

Total assets as of this fiscal year were 49,445 million yen, down 0.3% compared to the end of last fiscal year. Total liabilities were 8,445 million yen, down 11.6% compared to the end of last fiscal year. The main factor is the decrease of accrued income tax. Total net assets were 41,000 million yen, up 2.5% compared to the end of last fiscal year.

As a result, capital ratio of this fiscal year were 82.9%, up 2.2points compared to the end of last fiscal year.

Cash from operating activities was 3,688 million yen, down 368 million yen compared to the end of last fiscal year. The main factor is the decrease of income before income tax.

Cash for investing activities was 1,881 million yen, down 45 million yen compared to the end of last fiscal year. The main factor is the decrease of purchase of tangible and fixed assets.

Cash from financing activities was 877 million yen (170 million yen income last fiscal year). The main factor is the increase of output of long-tern debit.

As a result, the total cash from operating activities and investing activities exceeded cash for investing activities. Cash and cash equivalents by the end of fiscal year was 13,684 million yen, up 1,176 million yen compared to the end of last fiscal year.

							million JPY
		For year ended		For year ended		For year ended
		31th March 2013		31th March 2014		31th March 2015
Equity ratio			81.4%		80.7%		82.9%
Equity ratio at market value			71.4%		100.2%		71.1%
Interest-bearing  debt to cash flows ratio (year)			0.2		0.4		0.4
Interest coverage ratio			925.1		368.7		212.8

	million JPY	million JPY			thousand USD
	As of 31th March	As of 31th March	variance		As of 31th March
	2014	2015			2015
ASSETS
Current assets:
Cash & deposits	13,362	14,225	863		129,283
Trade notes and accounts  receivable	8,870	8,491	(379)		77,170
Electronically recorded monetary claims-operating	374	439	65		0
Inventories	6,025	7,132	1,107		64,819
Deferred tax assets	439	320	(119)		2,908
Other current assets	727	811	84		7,371
Allowance for doubtful accounts	(15)	(11)	4		(100)
Total current assets	29,782	31,406	1,625		281,451
Property, plant & equipment:
Land	3,512	3,518	6		31,973
Buildings & structures	4,981	4,635	(346)		42,125
Machinery & equipment	6,169	4,519	(1,650)		41,071
Other	543	534	(9)		4,853
Construction in progress	1,539	1,786	247		16,232
Total property, plant & equipment	16,744	14,992	(1,752)		136,254
Intangible assets:
Goodwill	716	426
Other	410	450
Total Intangible assets	1,126	877
Investments & other assets:
Investment securities	264	432	168		3,926
Deferred tax assets	218	272	54		2,472
Property & equipment for investments	1,021	1,003	(18)		9,116
Other	434	482	48		4,381
Allowance for doubtful accounts	(20)	(19)	1		(173)
Total investments & other assets	1,917	2,170	253		19,722
Total noncurrent assets	19,787	18,039
Total assets	49,569	49,445	(124)		437,427
LIABILITIES
Current liabilities:
Trade notes & accounts payable	3,639	3,989		350	36,254
Current portion of long-term debt	445	993		548	9,025
Accrued income taxes	896	394		(502)	3,581
Accrued bonus	436	459		23	4,172
Accrued bonus for directors	10	5		--	45
Notes payable for property acquisitions	453	184		(269)	1,672
Other current liabilities	1,727	1,691		(36)	15,369
Total current liabilities	7,606	7,714		109	70,118
Long-term liabilities:
Long-term debt	1,160	253		(907)	2,299
Deferred tax liabilities	175	-		--	-
Provision for environmental measures	26	26		--	236
Other	587	451		(136)	4,099
Total long-term liabilities	1,948	731		(1,217)	6,634
Total liabilities	9,554	8,445		(1,109)	76,752
NET ASSETS
Shareholders' equity:
Common stock	8,647	8,647		--	78,588
Capital surplus	11,947	11,947		--	108,579
Retained earnings	19,372	19,824		452	180,169
Treasury stock, at cost	(47)	(47)		0	(427)
Total shareholders' equity	39,919	40,371		452	366,909
Valuation and translation adjustments:
Net unrealized gains (losses)	48	131		83	1,191
Foreign currency  translation adjustment	46	495		449	4,499
Total valuation and translation  adjustments	94	626		532	5,690
A subscription warrant　and　Minority stockholders share	3	3		-	27
Total shareholders' equity	3	3		0	27
Total net assets	40,016	41,000		984	372,626
Total liabilities & net assets	49,569	49,445		(124)	449,378
Consolidated Statements of Income
	million JPY	million JPY			thousand USD
	For year ended	For year ended		variance	For year ended
	31th March	31th March			31th March
	2014	2015			2015
Net sales	33,475	32,811		(664)	298,200
Cost of sales	22,492	22,983		491	208,879
Gross profit	10,983	9,827		(1,156)	89,321
Selling, general & administrative expenses	7,633	7,423		(210)	67,463
Operating income	3,350	2,404		(945)	21,858
Other income (expenses):
Interest and dividend income	60	56		(4)	509
Interest expenses	(12)	(14)		(2)	(127)
Rent income	104	90		(14)	818
Rent expenses on real estates for investments	(56)	(38)		18	(345)
Settlement package	(19)	-		-	-
Foreign exchange gain (loss), net	166	283		117	2,572
Gain on sales of property, plant and equipment	2	1		(1)	9
Loss on disposal or sales of property, plant and equipment	(54)	(36)		18	(327)
Gain on sales or valuation  of investment securities	7	27		20	245
Loss on reduction of noncurrent assets	-	(738)		--	-
Compensation income	65	-		--	-
Impairment loss	(12)	(950)		--	(8,634)
Provision for environmental measures	(26)	-		--	-
cancellation penalty	(12)	-		--	-
Subsidy income	-	755
Other, net	51	(95)		(146)	(863)
Other income (expenses), net	264	(659)		(923)	(6,143)
Income before income taxes	3,614	1,746		(1,868)	15,715
Income tax expenses:
Current	1,273	987		(286)	8,970
Deferred	(245)	(125)		120	(1,136)
Total income taxes	1,028	862		(166)	7,834
Net income	2,586	884		(1,702)	7,881
Consolidated Statement of Cash Flows
	million JPY	million JPY			thousand USD
	For year ended	For year ended		variance	For year ended
	31th March	31th March			31th March
	2014	2015			2015
Cash flows from operating activities:
Income before income taxes	3,614	1,746		(1,868)	15,715
Adjustments for:
Depreciation	2,308	2,137		(171)	19,422
Amortization of negative goodwill	290	290		0	2,636
Increase (decrease) in provision for retirement benefits	(877)	-		0	-
Decrease in allowance for doubtful accounts	(28)	(4)		24	(36)
Loss on disposal of property, plant & equipment	52	35		(17)	318
Interest & dividend income	(63)	(60)		3	(545)
Foreign exchange (gain) loss	(19)	(99)		(79)	(872)
Loss on valuation of inventories	(7)	(27)		(20)	(245)
Decrease (increase) in trade notes & accounts receivable	(580)	397		977	3,608
Increase in inventories	(454)	(1,049)		(595)	(9,552)
Decrease in trade notes & accounts payable	519	299		(220)	2,717
Increase (decrease) in provision for environmental measures	26	-			-
Impairment loss	12	950		938	8,634
Loss on reduction of fixed asset	-	738		-	6,707
Other	135	(222)		(357)	(2,018)
Sub-total	4,928	5,132		204	46,489
Interest & dividend income received	64	60		(3)	554
Interest expenses paid	(11)	(14)		(3)	(127)
Income taxes paid	(925)	(1,491)		(566)	(13,551)
Net cash provided by operating activities	4,056	3,688		(368)	33,365
Cash flows from investment activities:
Payments into time deposits	(118)	(314)		(196)	(2,854)
Proceeds from withdrawal of time deposits	627	718		--	6,525
Payments for purchase of	(2,555)	(2,139)		416	(19,440)
Proceeds from sales of	302	14		(288)	127
Payments for purchase of	(4)	(207)		(203)	(1,881)
Proceeds from sales of	27	168		141	1,527
Purchase of intangible assets	(56)	(69)		(13)	(627)
Other	(150)	(52)		98	(473)
Net cash used in investing activities	(1,927)	(1,881)		46	(17,096)
Cash flows from financing activities:
Payments of long-term debt	(339)	(445)		(106)	(4,044)
Cash dividends paid	(394)	(432)		(38)	(3,926)
Proceeds from long-term loans payable	807	-		0	-
Payments for purchase of treasury stock	(1)	0		1	0
Proceeds from sales of treasury stock	97	-			-
Net cash used in financing activities	170	(877)		(1,047)	(7,970)
Effect of exchange rate	198	247		49	2,245
changes on cash & cash equivalents
Net increase (decrease) in	2,497	1,177		(1,320)	10,544
cash & cash equivalents
Cash and cash equivalents	10,010	12,507		2,497	113,669
at beginning of year					0
Cash and cash equivalents at end of year	12,507	13,684		1,177	124,213

Consolidated Statements of Changes in Net Assets
													million JPY
	Shareholders' equity
	Common stock				Capital surplus			Retained earnings			Treasury stock		Total shareholders' equity
Balance at 31th March 2014	8,647				11,947			19,372			(47)		39,919
Increase in legal capital
Cash dividends								(432)					(432)
Net income								884					884
Purchase of treasury stock											(0)		(0)
Disposal of treasury stock
Other changes
Total changes during the year	0				0			452			(0)		452
Balance at 31th March 2015	8,647				11,947			19,824			(47)		40,371
													million JPY
		Valuation and translation adjustment
		Net unrealized gains on available-for-sale securities				Foreign currency translation adjustment			Total valuation and translation adjustment			A subscription warrant　and　Minority stockholders share	Total net assets
Balance at 31th March 2014		48				46			94			3	40,016
Increase in legal capital
Cash dividends													(432)
Net income													884
Purchase of treasury stock													(0)
Disposal of treasury stock
Other changes		82				450			532			0	532
Total changes during the year		82				450			532			0	984
Balance at 31th March 2015		131				495			626			3	41,000

					thousand USD
	Shareholders' equity
	Common stock	Capital surplus	Retained earnings	Treasury stock	Total shareholders' equity
Balance at 31th March 2014	78,588	108,579	176,061	(427)	362,801
Increase in legal capital
Cash dividends			(3,926)		(3,926)
Net income			8,034		8,034
Purchase of treasury stock				(3)	(3)
Disposal of treasury stock					0
Other changes					0
Total changes during the year			4,108	(3)	4,105
Balance at 31th March 2015	78,588	108,579	180,169	(430)	366,906
					thousand USD
	Valuation and translation adjustment
	Net unrealized gains on available-for-sale securities	Foreign currency translation adjustment	Total valuation and translation adjustment	A subscription warrant　and　Minority stockholders share	Total net assets
Balance at 31th March 2014	436	418	854	27	363,683
Increase in legal capital					0
Cash dividends					(3,926)
Net income					8,034
Purchase of treasury stock					(3)
Disposal of treasury stock					0
Other changes	745	4,090	4,835	1	4,836
Total changes during the year	745	4,090	4,835	1	8,941
Balance at 31th March 2015	1,191	4,499	5,690	27	372,624

 

END

 

 

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