(3) Summary of consolidated statement of cash flows
million JPY
USD thousand
For year ended
For year ended
Change %
For year 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 share
million JPY
Fiscal 2013
Fiscal 2014
Half year
Full year
(forecast)
Net sales
15,000
34,000
Interim
17
18
Operating income
1,110
3,400
Year-end
17
18
Net income
500
2,200
Annual
34
36
Net income 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 ended
For year ended
variance
31th March 2014
31th March 2015
amount
%
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 ended
variance
31th March 2015
31th March 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 ended
variance
31th March 2015
31th March 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 JPY
million JPY
As of 31th March
As of 31th March
Change
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 JPY
million JPY
For year ended
For year ended
Change
31th March 2014
31th March 2015
Amount
%
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 2014
31th March 2015
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 JPY
million JPY
thousand USD
As of 31th March
As of 31th March
variance
As of 31th 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 warrantandMinority 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 JPY
million JPY
thousand USD
For year ended
For year ended
variance
For year 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 assets
-
(738)
--
-
Compensation income
65
-
--
-
Impairment loss
(12)
(950)
--
(8,634)
Provision for environmental measures
(26)
-
--
-
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 JPY
million JPY
thousand USD
For year ended
For year ended
variance
For year 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 provision for environmental measures
26
-
-
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 treasury stock
97
-
-
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 surplus
Retained earnings
Treasury stock
Total 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 gains on available-for-sale securities
Foreign currency translation adjustment
Total valuation and translation adjustment
A subscription warrantandMinority stockholders share
Total net assets
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 stock
Capital surplus
Retained earnings
Treasury stock
Total shareholders' 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 gains on available-for-sale securities
Foreign currency translation adjustment
Total valuation and translation adjustment
A subscription warrantandMinority stockholders share
Total net assets
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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