TIDMMAW
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 thousand
JPY USD
------------ ----------- ---------- -------------
For year For year Change For year
ended ended % 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 thousand
JPY USD
------------ ----------- ---------- -------------
As of As of 31th Change As of 31th
31th March March % 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 USD thousand
JPY
------------ ----------- ---------- -------------
For year For year Change For year
ended ended % 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 million
share JPY
-------------------- ------------ -------------
Fiscal 2013 Fiscal Half year Full year
2014
---------- -------------
(forecast) Net sales 15,000 34,000
-------------------- ------------
Operating
Interim 17 18 income 1,110 3,400
Year-end 17 18 Net income 500 2,200
-------------------- ------------ -------------
Net income
Annual 34 36 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 For year variance
ended ended
31th March 31th March amount %
2014 2015
-------------- ------------ ---------- ----------
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 variance
ended
31th March 31th March %
2015 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 variance
ended
31th March 31th March %
2015 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.
. Financial Results
million million
JPY JPY
As of 31th As of 31th March Change
March
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 million
JPY JPY
For year ended For year ended Change
31th March 31th March 2015 Amount %
2014
---------------- ----------------- -------- -------
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 31th March 2015
2014
----------------- --------------- ----------------
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 million thousand
JPY JPY USD
----------- ----------- ---------- -------------
As of 31th As of 31th variance As of 31th
March March 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 million thousand
JPY JPY USD
----------- ------------ --------- -------------
For year For year variance For year
ended ended 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 - (738) -- -
assets
Compensation income 65 - -- -
Impairment loss (12) (950) -- (8,634)
Provision for environmental (26) - -- -
measures
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 million thousand
JPY JPY USD
----------- ------------ --------- -----------
For year For year variance For year
ended ended 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 26 - -
provision for environmental
measures
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 97 - -
treasury stock
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 Retained Treasury Total
surplus earnings stock 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 Foreign Total valuation A Total net
gains on currency and translation subscription assets
available-for-sale translation adjustment warrant
securities adjustment and Minority
stockholders
share
----------------------- --------------- --------------------- ------------- ----------------
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 Capital Retained Treasury Total shareholders'
stock surplus earnings stock 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 Foreign Total valuation A subscription Total net
gains currency and translation warrant assets
on translation adjustment and Minority
available-for-sale adjustment stockholders
securities share
--------------------- ------------- ----------------- --------------- --------------------
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
--------------------- ------------- ----------------- --------------- --------------------
This information is provided by RNS
The company news service from the London Stock Exchange
END
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