VALQUA : posted summary of its FY ended March 2021 2nd Quarter results.

October 28, 2020

Summary of Consolidated Financial Results

for the Second 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 September 30, 2020
Assets
Current assets
Cash and deposits	6,644		8,663
Notes and accounts receivable - trade	11,357		11,568
Electronically recorded monetary claims -	1,885		1,761
operating
Merchandise and finished goods	3,000		3,128
Work in process	646		785
Raw materials and supplies	1,369		1,385
Other	1,922		2,163
Allowance for doubtful accounts		14		15
Total current assets		26,811		29,440
▲	▲
Non-current assets
Property, plant and equipment
Buildings and structures, net	6,278		5,933
Land	4,005		4,004
Other, net		5,582		6,220
Total property, plant and equipment		15,866		16,157
Intangible assets
Other		906		1,152
Total intangible assets		906		1,152
Investments and other assets
Investment securities	2,982		2,802
Other	1,561		1,537
Allowance for doubtful accounts		0		0
Total investments and other assets		4,544		4,340
▲	▲
Total non-current assets		21,317		21,650
Total assets		48,128		51,091

－ 1 －

				(Millions of yen)
		As of March 31, 2020	As of September 30, 2020
Liabilities
Current liabilities
Notes and accounts payable - trade	5,190		5,175
Short-term borrowings	1,782		2,193
Current portion of long-term borrowings	130		121
Income taxes payable	362		612
Provision for bonuses	430		454
Provision for bonuses for directors (and	38		30
other officers)
Other		2,581		2,591
Total current liabilities		10,517		11,178
Non-current liabilities
Long-term borrowings	1,158		2,088
Retirement benefit liability	534		456
Other		987		1,363
Total non-current liabilities		2,680		3,907
Total liabilities		13,197		15,086
Net assets
Shareholders' equity
Share capital	13,957		13,957
Capital surplus	3,963		3,979
Retained earnings	16,558		17,475
Treasury shares		1,635		1,572
Total shareholders' equity		32,843		33,840
▲	▲
Accumulated other comprehensive income
Valuation difference on available-for-sale	1,054		1,298
securities
Foreign currency translation adjustment	131		354
Remeasurements of defined benefit plans	▲432	▲343
Total accumulated other comprehensive	▲		▲
490	600
income
Non-controlling interests		1,596		1,563
Total net assets		34,930		36,004
Total liabilities and net assets		48,128		51,091

－ 2 －

Consolidated Statements of Income

					(Millions of yen)
			Six months ended	Six months ended
			September 30, 2019	September 30, 2020
Net sales	24,915		21,630
Cost of sales	15,468		13,006
Gross profit	9,447		8,624
Selling, general and administrative expenses	6,902		6,938
Operating profit	2,545		1,685
Non-operating income
Interest income	2		1
Dividend income	29		23
Rental income from facilities	115		193
Share of profit of entities accounted for using		0		－
equity method
Other	46		96
Total non-operating income	194		314
Non-operating expenses
Interest expenses	33		35
Rental expenses on facilities	97		165
Foreign exchange losses	49		13
Share of loss of entities accounted for using		－		2
equity method
Other	29		21
Total non-operating expenses	210		238
Ordinary profit	2,529		1,762
Extraordinary income
Gain on sales of non-current assets	4		2
Gain on sales of investment securities	70		916
Total extraordinary income	75		919
Extraordinary losses
Loss on sales of non-current assets	0		0
Loss on abandonment of non-current assets	11		9
Impairment loss		－	47
Loss on sales of investment securities		－	46
Compensation expenses for health damage		－		20
caused by asbestos
Total extraordinary losses	11		123
Profit before income taxes	2,593		2,558
Income taxes - current	661		739
Income taxes - deferred	63		10
Total income taxes	725		750
Profit	1,867		1,807
Profit attributable to non-controlling interests	51		4
Profit attributable to owners of parent		1,816		1,803

－ 3 －

Consolidated Statements of Comprehensive Income

					(Millions of yen)
		Six months ended			Six months ended
		September 30, 2019			September 30, 2020
Profit	1,867		1,807
Other comprehensive income
Valuation difference on available-for-sale		92		245
securities
Foreign currency translation adjustment		322		234
Remeasurements of defined benefit plans, net	▲			▲
	45		89
of tax
Share of other comprehensive income of		4		4
entities accounted for using equity method
Total other comprehensive income			188		95
▲	▲	▲
Comprehensive income		1,679		1,903
Comprehensive income attributable to
Comprehensive income attributable to owners	1,647		1,913
of parent
Comprehensive income attributable to non-		32		▲9
controlling interests

－ 4 －