VALQUA : posted summary of its FY ended March 2021 1st Quarter results.

July 29, 2020

Summary of Consolidated Financial Results

for the First Quarter of the Fiscal Year Ending March 31, 2021

VALQUA, LTD. (7995)

English translation from the original Japanese-language document

(All financial information has been prepared in accordance with accounting principles generally accepted in Japan)

Consolidated Balance Sheets

								(Millions of yen)
				As of March 31, 2020				As of June 30, 2020
	Assets
	Current assets
	Cash and deposits	6,644	6,622
	Notes and accounts receivable - trade			11,357		11,969
	Electronically recorded monetary claims -			1,885		2,153
	operating
	Merchandise and finished goods			3,000		3,029
	Work in process	646	783
	Raw materials and supplies	1,369	1,307
	Other			1,922		2,056
	Allowance for doubtful accounts			▲	14		▲	14
	Total current assets	26,811	27,908
	Non-current assets
	Property, plant and equipment
	Buildings and structures, net			6,278		6,045
	Land	4,005	4,003
	Other, net	5,582	6,024
	Total property, plant and equipment			15,866		16,073
	Intangible assets
	Other		906	1,064
	Total intangible assets	906	1,064
	Investments and other assets
	Investment securities			2,982		3,584
	Other	1,561	1,512
	Allowance for doubtful accounts					0				0
	Total investments and other assets			4,544		5,096
			▲			▲
	Total non-current assets		21,317	22,234
	Total assets		48,128	50,143

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							(Millions of yen)
				As of March 31, 2020		As of June 30, 2020
	Liabilities
	Current liabilities
	Notes and accounts payable - trade				5,190			4,656
	Short-term borrowings				1,782			2,323
	Current portion of long-term borrowings				130			121
	Income taxes payable				362			351
	Provision for bonuses				430			161
	Provision for bonuses for directors (and				38			15
	other officers)
	Other				2,581			3,660
	Total current liabilities	10,517	11,290
	Non-current liabilities
	Long-term borrowings				1,158			2,107
	Retirement benefit liability				534			489
	Other				987			1,264
	Total non-current liabilities				2,680			3,861
	Total liabilities	13,197	15,151
	Net assets
	Shareholders' equity
	Share capital	13,957	13,957
	Capital surplus				3,963			3,963
	Retained earnings			16,558		16,373
	Treasury shares			▲	1,635		▲	1,636
	Total shareholders' equity			32,843		32,657
	Accumulated other comprehensive income
	Valuation difference on available-for-sale				1,054			1,565
	securities
	Foreign currency translation adjustment				131			403
	Remeasurements of defined benefit plans				▲432			▲386
	Total accumulated other comprehensive				▲490			▲775
	income
	Non-controlling interests				1,596			1,557
	Total net assets		34,930	34,991
	Total liabilities and net assets		48,128	50,143

－ 2 －

Consolidated Statements of Income

							(Millions of yen)
				Three months ended			Three months ended
				June 30, 2019			June 30, 2020
	Net sales	12,619	10,960
	Cost of sales	7,657	6,544
	Gross profit			4,962		4,415
	Selling, general and administrative expenses	3,418	3,537
	Operating profit			1,543		878
	Non-operating income
	Interest income				1				0
	Dividend income			29			23
	Rental income from facilities	61			73
	Foreign exchange gains			－				3
	Other			23			34
	Total non-operating income	115	135
	Non-operating expenses
	Interest expenses			16			16
	Rental expenses on facilities	47			56
	Foreign exchange losses	29			－
	Share of loss of entities accounted for using				6				1
	equity method
	Other		14				9
	Total non-operating expenses		114			84
	Ordinary profit	1,544	928
	Extraordinary income
	Gain on sales of non-current assets				1				1
	Gain on sales of investment securities		36	131
	Total extraordinary income	38	132
	Extraordinary losses
	Loss on sales of non-current assets				0			－
	Loss on abandonment of non-current assets				1				3
	Loss on sales of investment securities			－			30
	Compensation expenses for health damage			－			20
	caused by asbestos
	Total extraordinary losses				1			54
	Profit before income taxes			1,580		1,007
	Income taxes - current	463	350
	Income taxes - deferred			▲	8		▲	42
	Total income taxes		455	308
	Profit	1,124	699
	Profit attributable to non-controlling interests		32		▲	1
	Profit attributable to owners of parent		1,091	700

－ 3 －

Consolidated Statements of Comprehensive Income

					(Millions of yen)
			Three months ended		Three months ended
			June 30, 2019		June 30, 2020
	Profit	1,124			699
	Other comprehensive income
	Valuation difference on available-for-sale		83			510
	securities		▲
	Foreign currency translation adjustment	12		▲	283
	Remeasurements of defined benefit plans, net
		21			46
	of tax					▲2
	Share of other comprehensive income of	1
	entities accounted for using equity method

Total other comprehensive income

Comprehensive income

Comprehensive income attributable to Comprehensive income attributable to owners of parent

Comprehensive income attributable to non- controlling interests

	▲	271
47
1,077	970
1,034	985
	▲15
	42

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Appendix

1-a. Consolidated Results by Segment

		1Q, FY2020.3	1Q, FY2021.3
		Three Months Ended	Three Months Ended
Seal Products Business	Net Sales	8,451	7,916
Segment Profit	1,198	1,130
High Performance Plastics Products	Net Sales	3,340	2,342
Business	Segment Profit	209	▲218
Silicon Wafer Reclaim and	Net Sales	827	702
Other Businesses	Segment Profit	134	▲33
			(Millions of yen)

1-b. Orders Received and Order Backlog by Segment

		1Q, FY2020.3	1Q, FY2021.3
		Three Months Ended	Three Months Ended
Seal Products Business	Orders Received	7,955	7,843
Order Backlog	3,736	3,510
High Performance Plastics Products	Orders Received	4,060	1,957
Business	Order Backlog	4,322	2,852
Silicon Wafer Reclaim and	Orders Received	849	674
Other Businesses	Order Backlog	305	197
Total	Orders Received	12,866	10,475
Order Backlog	8,364	6,560
			(Millions of yen)

2. Consolidated Net Sales by Region

	1Q, FY2020.3	1Q, FY2021.3
	Three Months Ended	Three Months Ended
Japan	8,988	7,780
Asia (ex. Japan)	2,577	2,049
North America	1,006	1,093
The Others	47	37
		(Millions of yen)

3. Stock and Dividends Information

(1) Number of Shares Issued (First Quarter of the FY2021.3)

Number of Shares Issued at the End of the Period (including Treasury Shares)	18,688,733
Number of Treasury Shares at the End of the Period		1,084,588
The Average Number of Shares Issued during the Period		17,604,264
(2) Per Share Data
	1Q, FY2020.3	1Q, FY2021.3
	Three Months Ended	Three Months Ended
Earnings Per Share	62.14	39.82
(3) Dividends		(Yen per share)
	FY2020.3	FY2021.3
	(Forecast)
Interim Dividend	50.00	-
Year-End Dividend	50.00	-
Total Dividends for the Year	100.00	-

(Remarks)Dividends for the FY2021.3 have yet to be determined. (Yen per share)

4. Earings Forecasts for the FY2021.3

VALQUA is currently studying the impact of COVID-19 with respect to our business and earnings forecasts for the FY2021.3. As it is difficult to calculate with rational grounds at present, we have not yet set forecasts.

We will notice an announcement regarding forecasts of the FY2021.3 promptly as soon as we can do so.

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