Marubun : Summary of Consolidated Financial Results for the Three Months Ended June 30, 2021

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 : [phone]
Preparation of supplementary material : Yes		July 30, 2021
Holding of investor meeting	: No

Summary of Consolidated Financial Results for the Three Months Ended June 30, 2021

1. Consolidated Financial Results for the Three Months Ended June 30, 2021 (April 1,2021 - June 30,2021)

(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, 2021	37,347	-		1,076	-		1,005	-	557	-
June 30, 2020	62,238	5.2		(603)	-		(369)	-	(310)	-
Note : Comprehensive income	Three months ended	June 30, 2021	1,220	Millions of Yen	［-%］
	Three months ended	June 30, 2020	(623) Millions of Yen	［-%］
	Earnings per Share	Earnings Per Share
	-Basic-			-Diluted-
For the Three months ended		Yen			Yen
June 30, 2021	21.32			-
June 30, 2020	(11.89)			-

(Note)

MARUBUN Corporation (the Company) has been applied the"Accounting Standard for Revenue Recognition" (ASBJ Statement No. 29, March 31, 2020), etc. from the beginning of the first quarter of the current fiscal year and the figures for the first quarter of the fiscal year ending March 31, 2022 are after the application of the said accounting standard, etc., the percentage change from the same quarter of the previous fiscal year is not stated.

(2) Financial Position

	Total Assets	Total Net Assets	Equity Ratio
	Millions of Yen	Millions of Yen	％
As of June 30, 2021	133,674	46,450	30.7
As of March 31, 2021	127,006	45,040	31.5

(Note)

As the Company have been applied the "Accounting Standard for Revenue Recognition" (ASBJ Statement No. 29, March 31, 2020) and other standards from the beginning of the first quarter of the current fiscal year, and the figures for the first quarter of the fiscal year ending March 31, 2022 are after the application of these standards.

2. Dividends

			Dividend Per Share
	1st Quarter	2nd Quarter	3rd Quarter	4th Quarter	Annual
	Yen	Yen	Yen	Yen	Yen
Year ended March 31, 2021	-	8.00	-	8.00	16.00
Year ending March 31, 2022	-
Year ending March 31, 2022		10.00	-	20.00	30.00
(Forecast)

Translation

3. Consolidated Financial Forecasts for the Fiscal Year Ending March 31, 2022

	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	70,000	-	600	-	460	-	230	-
September 30, 2021
Year ending March 31, 2022	153,000	-	3,200	-	3,000	-	1,900	-
	Earnings per Share
	-Basic-
	Yen
Six months ending	8.80
September 30, 2021
Year ending March 31, 2022	72.70

(Note)

As the Company apply the "Accounting Standard for Revenue Recognition" (ASBJ Statement No. 29, March 31, 2020), etc. from the beginning of the fiscal year ending March 31, 2022, the consolidated financial forecast above is the amount after applying the said accounting standard, and the percentage change from the previous year and the same quarter of the previous year is not stated.

Consolidated Financial Statements

(1) Consolidated Balance Sheet

		(Millions of Yen)
	As of March 31, 2021	As of June 30, 2021
Assets
Current assets
Cash and deposits	26,874	27,525
Notes and accounts receivable - trade	46,723	31,741
Electronically recorded monetary claims - operating	4,334	5,575
Merchandise and finished goods	34,174	25,211
Work in process	34	62
Accounts receivable - other	596	29,134
Other	2,077	2,761
Allowance for doubtful accounts	(11)	(12)
Total current assets	114,804	121,999
Non-current assets
Property, plant and equipment
Buildings and structures	4,095	4,010
Accumulated depreciation	(2,433)	(2,440)
Buildings and structures, net	1,662	1,569
Machinery, equipment and vehicles	10	10
Accumulated depreciation	(10)	(10)
Machinery, equipment and vehicles, net	0	0
Tools, furniture and fixtures	2,595	2,270
Accumulated depreciation	(1,719)	(1,659)
Tools, furniture and fixtures, net	876	611
Land	1,596	1,596
Leased assets	83	46
Accumulated depreciation	(65)	(32)
Leased assets, net	17	13
Right of use assets	154	164
Accumulated depriciation	(85)	(88)
Right of use assets,net	69	76
Construction in progress	－	1
Total property, plant and equipment	4,221	3,868
Intangible assets	925	842
Investments and other assets
Investment securities	2,518	2,495
Deferred tax assets	1,136	849
Other	3,857	3,699
Allowance for doubtful accounts	(457)	(79)
Total investments and other assets	7,055	6,964
Total non-current assets	12,202	11,675
Total assets	127,006	133,674

(1) Consolidated Balance Sheet

		(Millions of Yen)
	As of March 31, 2021	As of June 30, 2021
Liabilities
Current liabilities
Notes and accounts payable - trade	30,298	16,632
Short-term borrowings	42,194	45,467
Current portion of long-term borrowings	50	50
Lease obligations	67	78
Accounts payable - other	1,349	16,228
Income taxes payable	61	－
Provision for bonuses	631	340
Other	1,512	2,581
Total current liabilities	76,165	81,378
Non-current liabilities
Long-term borrowings	5,075	5,062
Lease obligations	87	108
Retirement benefit liability	261	308
Provision for retirement benefits for directors (and other	95	98
officers)
Asset retirement obligations	180	165
Other	101	101
Total non-current liabilities	5,801	5,845
Total liabilities	81,966	87,224
Net assets
Shareholders' equity
Share capital	6,214	6,214
Capital surplus	6,353	6,353
Retained earnings	27,854	28,612
Treasury shares	(1,631)	(1,631)
Total shareholders' equity	38,791	39,549
Accumulated other comprehensive income
Valuation difference on available-for-sale securities	831	811
Deferred gains or losses on hedges	36	28
Foreign currency translation adjustment	(29)	420
Remeasurements of defined benefit plans	385	289
Total accumulated other comprehensive income	1,224	1,549
Non-controlling interests	5,024	5,350
Total net assets	45,040	46,450
Total liabilities and net assets	127,006	133,674

(2) Consolidated Statements of Income		(Millions of Yen)
	Three months ended	Three months ended
	June 30, 2020	June 30, 2021
Net sales	62,238	37,347
Cost of sales	59,106	33,013
Gross profit	3,131	4,334
Selling, general and administrative expenses	3,735	3,258
Operating profit (loss)	(603)	1,076
Non-operating income
Interest income	5	0
Dividend income	21	21
Foreign exchange gains	355	－
Share of profit of entities accounted for using equity	57	6
method
Miscellaneous income	17	22
Total non-operating income	458	50
Non-operating expenses
Interest expenses	137	78
Sales discounts	32	7
Foreign exchange losses	－	1
Loss on sale of trade receivables	15	7
Miscellaneous losses	39	25
Total non-operating expenses	224	121
Ordinary profit (loss)	(369)	1,005
Extraordinary income
Gain on sale of non-current assets	－	22
Total extraordinary income	－	22
Extraordinary losses
Loss on sale and retirement of non-current assets	0	1
Impairment losses	5	－
Extra retirement payments	99	－
Other	7	－
Total extraordinary losses	112	1
Profit (loss) before income taxes	(481)	1,026
Income taxes	(102)	405
Profit (loss)	(379)	621
Profit (loss) attributable to non-controlling interests	(68)	63
Profit (loss) attributable to owners of parent	(310)	557