Translation
Head Office : 8-1 Nihonbashi Odenmacho, Chuo-ku, Tokyo, Japan | |||
Securities Code : 7537 TSE, 1st section | URL https://www.marubun.co.jp | ||
Representative | : Toru Iino, CEO and Representative Director | ||
Contact | : Toshihiro Shibuya, Director, Corporate Planning Dept. | TEL : +81-3-3639-3010 | |
Preparation of supplementary material : Yes | July 31, 2020 | ||
Holding of investor meeting | : No |
Summary of Consolidated Financial Results for the Three Months Ended June 30, 2020
1. Consolidated Financial Results for the Three Months Ended June 30, 2020 (April 1,2020 - June 30,2020)
(1) Consolidated Operating Results
Net Sales | Operating Income | Ordinary Income | Profit Attributable | |||||||||
to Owners of Parent | ||||||||||||
For the Three months ended | Millions of Yen | % | Millions of Yen | % | Millions of Yen | % | Millions of Yen | % | ||||
June 30, 2020 | 62,238 | 5.2 | (603) | - | (369) | - | (310) | - | ||||
June 30, 2019 | 59,182 | (16.9) | (298) | - | 301 | - | (58) | - | ||||
Earnings per Share | Earnings Per Share | |||||||||||
-Basic- | -Diluted- | |||||||||||
For the Nine months ended | Yen | Yen | ||||||||||
June 30, 2020 | (11.89) | - | ||||||||||
June 30, 2019 | (2.24) | - | ||||||||||
(2) Financial Position | ||||||||||||
Total Assets | Total Net Assets | Equity Ratio | ||||||||||
Millions of Yen | Millions of Yen | % | ||||||||||
As of June 30, 2020 | 125,104 | 47,055 | 33.1 | |||||||||
As of March 31, 2020 | 131,451 | 48,204 | 32.2 |
2. Dividends
Dividend Per Share | |||||
1st Quarter | 2nd Quarter | 3rd Quarter | 4th Quarter | Annual | |
Yen | Yen | Yen | Yen | Yen | |
Year ended March 31, 2020 | - | 10.00 | - | 20.00 | 30.00 |
Year ending March 31, 2021 | - | ||||
Year ending March 31, 2021 | 8.00 | - | 8.00 | 16.00 | |
(Forecast) | |||||
3. Consolidated Financial Forecasts for the Fiscal Year Ending March 31, 2021
Net Sales | Operating Income | Ordinary Income | Profit Attributable | |||||
to Owners of Parent | ||||||||
Millions of Yen | % | Millions of Yen | % | Millions of Yen | % | Millions of Yen | % | |
Six months ending | 136,500 | (1.6) | 70 | - | 115 | (64.4) | 35 | - |
September 30, 2020 | ||||||||
Year ending March 31, 2021 | 260,000 | (9.6) | 2,300 | (2.9) | 2,000 | (0.3) | 1,235 | - |
Earnings per Share | ||||||||
-Basic- | ||||||||
Yen | ||||||||
Six months ending | 1.34 | |||||||
September 30, 2020 | ||||||||
Year ending March 31, 2021 | 47.25 | |||||||
(Note)
These Financial Forecasts are based on management's assumptions and beliefs in light of the information currently available to it and therefore you should not place undue reliance on them. Marubun Corporation cautions you that a number of important factors could cause actual results to differ materially from those discussed in the forward-looking statements.
1. Summary of operating results for the fiscal year under review
During the first quarter of the consolidated fiscal year under review (April 1 to June 30, 2020), the Japanese economy faced a sharp decline in activity and prolonged aggravation with sluggish consumer spending and employment, and a fall in corporate earnings as a result of restrictions such as stay-at-home and business suspension advisory in response to the spread of COVID-19.
In the electronics industry, in which the Marubun Group (the "Group") operates its business, shipment of computers grew substantially thanks to widespread teleworking despite weak demand in the market for automobiles. The market for industrial equipment indicated signs of recovery after partial resumption of production activities in China.
In this situation, the consolidated net sales of the Group during the first quarter of the fiscal year under review increased 5.2% year on year, to 62,238 million yen. Operating result was a loss of 603 million yen (compared to operating loss of 298 million yen in the same period of the previous year), ordinary result was a loss of 369 million yen (compared to ordinary profit of 301 million yen in the same period of the previous year), and net result attributable to owners of parent was a loss of 310 million yen (compared to net loss attributable to owners of the parent of 58 million yen in the same period of the previous year).
Operating results by business segment are as follows: (Electronics Devices business)
In the Electronics Devices business, net sales grew 8.6% year on year, to 54,191 million yen. This was due to an increase in sales of semiconductors for communication equipment and consumer equipment, which more than offset a decrease in sales of semiconductors for OA equipment. The segment result was a loss of 439 million yen (compared to a segment loss of 256 million yen in the same period of the previous year) due to a fall in profitability.
(Electronics Systems business)
In the Electronics Systems business, net sales decreased 13.3% year on year, to 8,046 million yen and the segment result was a loss of 162 million yen (compared to a segment loss of 40 million yen in the same period of the previous year). This was a result of sluggish sales of industrial equipment and laser processing equipment due to restricted capital expenditure despite growth in demand for LED light sources.
2. Summary of consolidated financial conditions for the fiscal year under review
(Assets)
Current assets at the end of the first quarter of the consolidated fiscal year under review stood at 112,078 million yen, a decrease of 6,539 million yen from the end of the previous consolidated fiscal year. This result was mainly attributable to a decrease in notes and accounts receivable - trade of 7,087 million yen. Non-current assets amounted to 13,026 million yen, rising 192 million yen from the end of the previous consolidated fiscal year. This change chiefly reflected increases of 127 million yen in investment securities and 102 million yen in deferred tax assets, which more than offset a decrease of 75 million yen in construction in progress.
As a result, total assets decreased 6,346 million yen from the end of the previous consolidated fiscal year, to 125,104 million yen.
(Liabilities)
Current liabilities at the end of the first quarter of the consolidated fiscal year under review came to 71,427 million yen, a fall of 5,110 million yen from the end of the previous consolidated fiscal year. This change was primarily attributable to decreases of 3,366 million yen in short-term loans payable and 2,122 million yen in notes and accounts payable - trade. Non-current liabilities amounted to 6,621 million yen, a decrease of 87 million yen from the end of the previous fiscal year. This was primarily a result of declines of 67 million yen in retirement benefit liability and 12 million yen in long-term loans payable.
As a result, total liabilities stood at 78,048 million yen, a fall of 5,197 million yen from the end of the previous consolidated fiscal year.
(Net assets)
Net assets totaled 47,055 million yen at the end of the first quarter of the consolidated fiscal year under review, a decrease of 1,148 million yen from the end of the previous consolidated fiscal year. This result is mainly attributable to a decrease of 833 million yen in retained earnings.
As a result, the equity ratio stood at 33.1% (compared to 32.2% at the end of the previous fiscal year).
3. Future outlook
The Group previously declined to announce its consolidated financial forecasts for the fiscal year ending March 31, 2021, because it was difficult to rationally estimate the impact of the COVID-19. In response to the relaxation of restrictions on activity in many countries, the Group has developed forecasts based on information and projections currently available to the Group.
The economic outlook for fiscal year 2020 is expected to remain uncertain due to the impact of COVID-19. Recently, however, there have been some signs of recovery such as the resumption of production activities in China ahead of other countries. Demand for infrastructure-related products such as 5G communication devices and data centers as well as products for computers and consumer equipment is also expected to grow.
In this business environment, net sales for the fiscal year ending March 31, 2021, are expected to decrease due to a fall in sales of semiconductors for communication devices and the Termination of Distributorship Agreement with Texas Instruments, Inc. in September 2020, which will more than offset expected growth in demand for information and communication devices, industrial equipment, and medical equipment in the Electronics Systems segment, and a projected increase in sales in the Electronics Devices segment thanks to the launch of new products. As a result, net sales are expected to total 260,000 million yen, a year-on-year decrease of 9.6%. In terms of profit, operating profit is expected to be 2,300 million yen (down 2.9% year on year), ordinary profit is projected to be 2,000 million yen (down 0.3% year on year), and profit attributable to owners of parent is forecasted to be 1,235 million yen (compared to loss attributable to owners of parent of 75 million yen in the previous fiscal year).
Consolidated Financial Statements
(1) Consolidated Balance Sheet
(Millions of Yen) | ||
As of March 31, 2020 | As of June 30, 2020 | |
Assets | ||
Current assets | ||
Cash and deposits | 20,790 | 21,608 |
Notes and accounts receivable - trade | 50,062 | 42,974 |
Electronically recorded monetary claims - operating | 5,314 | 5,545 |
Merchandise and finished goods | 40,678 | 38,241 |
Work in process | 54 | 164 |
Other | 1,732 | 3,553 |
Allowance for doubtful accounts | (14) | (10) |
Total current assets | 118,617 | 112,078 |
Non-current assets | ||
Property, plant and equipment | ||
Buildings and structures | 3,734 | 3,710 |
Accumulated depreciation | (2,381) | (2,395) |
Buildings and structures, net | 1,353 | 1,314 |
Machinery, equipment and vehicles | 10 | 10 |
Accumulated depreciation | (10) | (10) |
Machinery, equipment and vehicles, net | 0 | 0 |
Tools, furniture and fixtures | 2,510 | 2,608 |
Accumulated depreciation | (1,600) | (1,640) |
Tools, furniture and fixtures, net | 910 | 968 |
Land | 1,596 | 1,596 |
Leased assets | 105 | 108 |
Accumulated depreciation | (78) | (82) |
Leased assets, net | 26 | 26 |
Right of use assets | 183 | 229 |
Accumulated depriciation | (60) | (98) |
Right of use assets,net | 123 | 130 |
Construction in progress | 85 | 9 |
Total property, plant and equipment | 4,094 | 4,045 |
Intangible assets | 1,146 | 1,122 |
Investments and other assets | ||
Investment securities | 3,102 | 3,230 |
Deferred tax assets | 858 | 960 |
Other | 4,071 | 4,111 |
Allowance for doubtful accounts | (440) | (443) |
Total investments and other assets | 7,592 | 7,858 |
Total non-current assets | 12,833 | 13,026 |
Total assets | 131,451 | 125,104 |
(Millions of Yen) | ||
As of March 31, 2020 | As of June 30, 2020 | |
Liabilities | ||
Current liabilities | ||
Notes and accounts payable - trade | 25,410 | 23,287 |
Short-term borrowings | 47,344 | 43,978 |
Current portion of long-term borrowings | 1,050 | 1,050 |
Lease obligations | 93 | 108 |
Provision for bonuses | 703 | 393 |
Other | 1,937 | 2,609 |
Total current liabilities | 76,537 | 71,427 |
Non-current liabilities | ||
Long-term borrowings | 5,125 | 5,112 |
Lease obligations | 79 | 122 |
Retirement benefit liability | 1,089 | 1,022 |
Provision for retirement benefits for directors (and other | 98 | 88 |
officers) | ||
Asset retirement obligations | 182 | 182 |
Other | 134 | 92 |
Total non-current liabilities | 6,708 | 6,621 |
Total liabilities | 83,246 | 78,048 |
Net assets | ||
Shareholders' equity | ||
Share capital | 6,214 | 6,214 |
Capital surplus | 6,353 | 6,353 |
Retained earnings | 30,656 | 29,822 |
Treasury shares | (1,631) | 1,631 |
Total shareholders' equity | 41,593 | 40,760 |
Accumulated other comprehensive income | ||
Valuation difference on available-for-sale securities | 339 | 421 |
Deferred gains or losses on hedges | (2) | 1 |
Foreign currency translation adjustment | 465 | 260 |
Remeasurements of defined benefit plans | (109) | 82 |
Total accumulated other comprehensive income | 692 | 601 |
Non-controlling interests | 5,918 | 5,694 |
Total net assets | 48,204 | 47,055 |
Total liabilities and net assets | 131,451 | 125,104 |
(2) Consolidated Statements of Income
(Millions of Yen) | ||
Three months ended | Three months ended | |
June 30, 2019 | June 30, 2020 | |
Net sales | 59,182 | 62,238 |
Cost of sales | 55,371 | 59,106 |
Gross profit | 3,810 | 3,131 |
Selling, general and administrative expenses | 4,109 | 3,735 |
Operating loss | (298) | (603) |
Non-operating income | ||
Interest income | 5 | 5 |
Dividend income | 22 | 21 |
Foreign exchange gains | 900 | 355 |
Share of profit of entities accounted for using equity | 16 | 57 |
method | ||
Miscellaneous income | 41 | 17 |
Total non-operating income | 986 | 458 |
Non-operating expenses | ||
Interest expenses | 311 | 137 |
Sales discounts | 27 | 32 |
Loss on sales of trade receivables | 33 | 15 |
Miscellaneous loss | 14 | 39 |
Total non-operating expenses | 386 | 224 |
Ordinary profit (loss) | 301 | (369) |
Extraordinary losses | ||
Loss on sales and retirement of non-current assets | 1 | 0 |
Impairment loss | 200 | 5 |
Extra retirement payments | - | 99 |
Other | - | 7 |
Total extraordinary losses | 202 | 112 |
Profit (loss) before income taxes | 99 | (481) |
Income taxes | 91 | (102) |
Profit (loss) | 8 | (379) |
Profit (loss) attributable to non-controlling interests | 66 | (68) |
Loss attributable to owners of parent | (58) | (310) |
Consolidated statements of comprehensive income
(Millions of Yen) | ||
Three months ended | Three months ended | |
June 30, 2019 | June 30, 2020 | |
Profit (loss) | 8 | (379) |
Other comprehensive income | ||
Valuation difference on available-for-sale securities | (81) | 81 |
Deferred gains or losses on hedges | (21) | 4 |
Foreign currency translation adjustment | 85 | (331) |
Remeasurements of defined benefit plans, net of tax | 2 | 27 |
Share of other comprehensive income of entities accounted | (41) | (26) |
for using equity method | ||
Total other comprehensive income | (56) | (244) |
Comprehensive income | (48) | (623) |
Comprehensive income attributable to | ||
Comprehensive income attributable to owners of parent | (159) | (401) |
Comprehensive income attributable to non-controlling | 111 | (221) |
interests | ||
(3) Consolidated Statements of Cash Flows
(Millions of Yen) | ||
Three months ended | Three months ended | |
June 30, 2019 | June 30, 2020 | |
Cash flows from operating activities | ||
Profit (loss) before income taxes | 99 | (481) |
Depreciation | 157 | 189 |
Impairment loss | 200 | 5 |
Amortization of goodwill | 28 | - |
Increase (decrease) in allowance for doubtful accounts | (1) | 0 |
Increase (decrease) in provision for bonuses | (509) | (309) |
Increase (decrease) in provision for retirement benefits for | (3) | (10) |
directors (and other officers) | ||
Increase (decrease) in retirement benefit liability | (60) | (27) |
Interest and dividend income | (28) | (27) |
Interest expenses | 311 | 137 |
Foreign exchange losses (gains) | (891) | (348) |
Share of loss (profit) of entities accounted for using equity | (16) | (57) |
method | ||
Loss (gain) on sales and retirement of non-current assets | 1 | 0 |
Extra retirement payments | - | 99 |
Decrease (increase) in trade receivables | 4,192 | 6,810 |
Decrease (increase) in inventories | 680 | 2,317 |
Increase (decrease) in trade payables | 2,710 | (2,116) |
Other, net | 761 | (943) |
Subtotal | 7,634 | 5,236 |
Interest and dividends received | 53 | 28 |
Interest paid | (307) | (140) |
Income taxes paid | (256) | (123) |
Income taxes refund | 17 | 8 |
Extra retirement payments | - | (99) |
Net cash provided by (used in) operating activities | 7,141 | 4,910 |
Cash flows from investing activities | ||
Payments into time deposits | (120) | (73) |
Proceeds from withdrawal of time deposits | 35 | 157 |
Purchase of property, plant and equipment | (87) | (197) |
Purchase of intangible assets | (12) | (64) |
Purchase of investment securities | (6) | (5) |
Payments for asset retirement obligations | (7) | - |
Other, net | 54 | 6 |
Net cash provided by (used in) investing activities | (143) | (177) |
(Millions of Yen) | ||
Three months ended | Three months ended | |
June 30, 2019 | June 30, 2020 | |
Cash flows from financing activities | ||
Net increase (decrease) in short-term borrowings | 488 | (2,927) |
Repayments of long-term borrowings | (12) | (12) |
Dividends paid | (502) | (500) |
Other, net | (22) | (26) |
Net cash provided by (used in) financing activities | (48) | (3,466) |
Effect of exchange rate change on cash and cash equivalents | 37 | (365) |
Net increase (decrease) in cash and cash equivalents | 6,986 | 900 |
Cash and cash equivalents at beginning of period | 16,044 | 20,473 |
Cash and cash equivalents at end of period | 23,031 | 21,374 |
Consolidated Segment Information
Business Segments
Three Months Ended June 30, 2019 | (Millions of Yen) | ||||
Business segments reported | Adjustment | Consolidated | |||
Electronic | Electronic | Total | Statements of | ||
Devices | Systems | Income | |||
Net Sales | |||||
(1) Outside Customers | 49,906 | 9,275 | 59,182 | - | 59,182 |
(2) Inter-segment | 0 | 2 | 2 | (2) | - |
Total Sales | 49,906 | 9,278 | 59,184 | (2) | 59,182 |
Segment Income(loss) | (256) | (40) | (296) | (2) | (298) |
Three Months Ended June 30, 2020 | (Millions of Yen) | ||||
Business segments reported | Adjustment | Consolidated | |||
Electronic | Electronic | Total | Statements of | ||
Devices | Systems | Income | |||
Net Sales | |||||
(1) Outside Customers | 54,191 | 8,046 | 62,238 | - | 62,238 |
(2) Inter-segment | 1 | 209 | 210 | (210) | - |
Total Sales | 54,192 | 8,256 | 62,448 | (210) | 62,238 |
Segment Income(loss) | (439) | (162) | (601) | (1) | (603) |
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Marubun Corporation published this content on 07 August 2020 and is solely responsible for the information contained therein. Distributed by Public, unedited and unaltered, on 07 August 2020 08:33:23 UTC