Final Results

RNS Number : 7858E

Maruwa Co Ld

15 May 2013

 



								15 May 2013
MARUWA CO., LTD.
3-83, Minamihonjigahara-cho, Owariasahi-city, Aichi-pref., 488-0044 JAPAN
Final Results for Fiscal Year 2012-2013
MARUWA CO., LTD. has announced its consolidated business results for the full fiscal year ended 31st March, 2013 as follows;
*The financial statements are prepared in accordance with the accounting principles generally accepted in Japan.
*US dollar amounts are converted by USD1 = JPY94.05  for your convenience only
*Number of consolidated subsidiaries: 14 companies  (Maruwa (Malaysia) Sdn. Bhd., Maruwa Melaka Sdn. Bhd., Maruwa Lightings Sdn. Bhd., Taiwan Maruwa Co., Ltd., MARUWA Electronics (Taiwan) Co., Ltd., Maruwa Europe Ltd., Maruwa America Corp., Maruwa Korea Co., Ltd., Maruwa (Shanghai) Trading Co., Ltd., MARUWA Electronic (India) Pvt.Ltd., MARUWA QUARTZ Co., Ltd., MARUWA SHOMEI Co., Ltd., and Hokko Denshi Co., Ltd., YAMAGIWA CORPORATION.
I. Summary of Consolidated Results
(1) Summary of consolidated statement of income
				million JPY				thousand USD
		For year ended		For year ended		Change %		For year ended
		31st March		31st March				31st March
		2012		2013				2013
Net sales		21,313		24,399		14.5%		259,426
Operating income		2,933		2,287		-22.0%		24,317
Income before income taxes		2,916		3,119		7.0%		31,057
Net income		2,105		2,040		-3.1%		19,585
				JPY				USD
Net income per share (Basic)		180.67		165.76		-8.3%		1.76
(Diluted)		180.41		165.70		--		--
*Average number of issued shares		11,653,284		12,308,175
(2) Summary of consolidated financial condition
				million JPY				thousand USD
		As of 31st March		As of 31st March		Change %		As of 31st March
		2012		2013				2013
Total Assets		40,808		45,610		11.8%		470,343
Total net assets		34,407		37,141		7.9%		394,906
Equity ratio		84.3%		81.4%		-2.9%
				JPY				USD
Total net assets per share		2,793.36		3,014.90		7.9%		32.06
*Number of issued shares at the year end		12,308,327		12,304,913
(3) Summary of consolidated statement of cash flows
				million JPY				USD thousand
		For year ended		For year ended		Change %		For year ended
		31st March		31st March				31st March
		2012		2013				2013
Net cash provided by operating activities		1,908		4,146		117.3%		43,125
Net cash used in investing activities		(4,435)		(3,438)		22.5%		(40,521)
Net cash used in financing activities		4,255		(947)		122.3%		(10,069)
Cash and cash equivalents  at end of term		10,074		10,010		-0.6%		101,509
II. Dividends				III. Outlook for FY 2012 ending 31 March 2013
		JPY per share						million JPY
	Fiscal 2012	Fiscal 2013				Half year		Full year
		(forecast)		Net sales		16,000		34,000
Interim	15	15		Operating income		1,500		3,700
Year-end	15	17		Net income		950		2,650
Annual	30	32		Net income per share		77.18		215.30
*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
	FY 2012				FY 2013
	1Q	2Q	3Q	4Q	1Q	2Q	3Q	4Q
Net sales	5,355	5,621	5,127	5,210	5,310	5,393	5,146	8,551
Operating income	993	809	671	460	625	618	467	78
Net income	687	576	461	381	334	322	578	807
				million JPY
	Previous		Current
	For year ended		For year ended		variance
	31st March 2012		31st March 2013		amount		%
Net sales	21,313		24,399		3,086		14.5%
Operating income	2,933		2,287		(646)		-22.0%
Net income	2,105		2,040		(65)		-3.1%

(1)   Review of Operations

In this fiscal year,, the growth of the world economy has slowed due to the expanded Eurozone debt problem and to the rapidly developing economies in emerging countries, including China, rapidly losing steam, and in spite of an indication of economic recovery in the United States.

The Japanese economy has attempted to recover from the slump caused by the devastating Tohoku Earthquake and after new government appointment, the drop in the value of the yen and the positive stock market makes Japanese economy recover slowly.

In this severe economic situation, the MARUWA Group's business results during this this fiscal year were in line with our plans due to a strong demand for ceramic substrate for power modules, new products for smart phone devices and LED lighting.

As a result, our consolidated sales were 24,399 million yen. (This is up 14.5% compared to the same period last year)  Our operating income was 2,287million yen. (This is down 22.0% compared to the same period last year)  Ordinary profit was 3,136million yen (down 3.9%). Net income was 2,040 million yen (down 3.1%).

MARUWA acquired 100% of outstanding shares of Yamagiwa Corporation, which is one of the leading lighting solution companies in Japan. As a result of this share acquisition, Yamagiwa will become a consolidated subsidiary of the Company.  By welcoming Yamagiwa as one of the core companies of the Group and utilizing its strong brand recognition and its position as a leading company in the area of lighting solutions, the Company aims to further expand its business base in the booming LED lighting market and enhance its global business growth.

(2) Review of operating results by business segment
				million JPY
			Current
	For year ended		For year ended
	31st March 2012		31st March 2013
Ceramic Components:
Net sales		19,024		19,250
Operating income		3,412		2,963
Lighting Equipment:
Net sales		2,289		5,150
Operating income		247		190
Total:
Net sales		21,313	24,400
Operating income		3,659	3,153
Elimination:
Net sales		--	--
Operating income	(726)		(866)
Consolidated:
Net sales		21,313	24,400
Operating income		2,933	2,287

(2)   Operating Results by Business Division

1. The Ceramic Components Division

The total sales for this business segment was 19,250 million yen. (This is up 1.2% compared to the same period last year).

In the general electric device market such as PC, flat TV and home electronics market was very slow. But the market for environment-related products, the power modules market and the smart phone market have remained strong.

2. Lighting Equipment Division

The turnover was5,150million yen. This is a 125.0% increase over the same period last year.

Operating profit was 190million yen, an 23.0% decrease.

This improvement is due to a consistent increase in inquiries and orders for LED lighting devices in the public utilities markets. New types of product were very successful. MARUWA is continuing to press forward with the development and promotion of new LED lighting products. In the last forth quarter, Yamagiwa results was added to consolidated account.

(3) Outlook of the Full Fiscal 2012
				million JPY
		For year ended		For year ended	variance
		31st March 2012		31st March 2013	%
Net sales	24,399		34,000			39.3%
Operating income	2,287		3,700			61.8%
Net income	2,040		2,650			29.9%
Sales by segment				million JPY
		For year ended		For year ended	variance
		31st March 2012		31st March 2013	%
Ceramic Components		19,250		21,400		11.2%
Lighting Equipment		5,150		12,600		144.7%
Total		24,400		34,000		39.3%
*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.

3. Outlook for the next fiscal year

The outlook for the future economy is still uncertain because of the prolonged and on-going economic problems in Europe and the world-wide rate of consumption remaining stagnant. On the other hand, the reconstruction demands created by the Tohoku Earthquake, public investment, equipment investment, home investment and continuing upward momentum in America and economic growth in China and other emerging countries will contribute basic support for the world economy. 

The energy saving, ecology related market in which we situate our growth strategy, is expected to grow at a solid rate. Furthermore, new products for smartphones and other information terminal markets are expected to expand rapidly.

For capital investment, we will continue to invest actively in the energy saving, ecology related market. We will also invest in new R&D, with increased staff, to work for the development of new products, with high added value.

We forecast that consolidated sales for the next fiscal year will be 34,000million yen, up 39.3% compared to last year. In terms of operating income, net income is expected to be 3,700 million yen, up 61.8% compared to last year, 2,650 million yen (Up29.9% compared to last year).

We will strengthen the corporate structure and improve profitability, which will benefit all stakeholders, including shareholders.

Cautionary statements: The above forecasts are based on the present business environment and currently-available information, and include 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 Condition
					million JPY		million JPY
		As of 31st March		As of 31st March			Change
		2012		2013			Amount	%
Total assets			40,808		45,610		4,802	11.8%
Total liabilities			6,401		8,469		2,068	32.3%
Total net assets			34,407		37,141		2,734	7.9%
Equity ratio			84.3%		81.4%		-2.9%
					million JPY		million JPY
		For year ended		For year ended			Change
		31st March 2012		31st March 2013			Amount	%
Net cash provided by  operating activities			1,908		4,146		2,238	117.3%
Net cash used in  investing activities			(4,435)		(3,438)		997	22.5%
Net cash used in  financing activities			4,255		(947)		-5,202	122.3%
Cash and cash equivalents  at end of year			10,074		10,010		-64	-0.6%
Net sales			21,313		24,399		3,086	14.5%
Capital expenditure			5,717		3,237		-2,480	-43.4%
Depreciation			1,813		1,958		145	8.0%
Trends of cash-flows indices
							million JPY
		For year ended		For year ended		For year ended
		31st March 2011		31st March 2012		31st March 2013
Equity ratio			83.5%		84.3%		81.4%
Equity ratio at market value			86.1%		110.8%		71.4%
Interest-bearing  debt to cash flows ratio (year)			0.0		0.0		0.2
Interest coverage ratio			1,217.8		1,141.9		925.1

Consolidated Balance Sheets
	million JPY	million JPY		thousand USD
	As of 31st March	As of 31st March	variance	As of 31st March
	2012	2013		2013
ASSETS
Current assets:
Cash & deposits	10,649	11,312	663	120,276
Trade notes and accounts  receivable	6,373	8,560	2,187	91,015
Inventories	5,591	5,493	(98)	58,405
Deferred tax assets	219	260	41	2,764
Other current assets	716	652	(64)	6,932
Allowance for doubtful accounts	(2)	(23)	(21)	(245)
Total current assets	23,546	26,254	2,708	279,147
Property, plant & equipment:
Land	3,789	3,625	(164)	38,543
Buildings & structures	3,965	4,039	74	42,945
Machinery & equipment	4,567	6,447	1,880	68,549
Other	533	622	89	6,614
Construction in progress	2,747	1,792	(955)	19,054
Total property, plant & equipment	15,601	16,525	924	175,705
Intangible assets:
Goodwill	-	1,006
Other	221	368
Total Intangible assets	221	1,374
Investments & other assets:
Investment securities	318	243	(75)	2,584
Deferred tax assets	85	73	(12)	776
Property & equipment for investments	906	900	(6)	9,569
Other	136	282	146	2,998
Allowance for doubtful accounts	(5)	(41)	(36)	(436)
Total investments & other assets	1,440	1,457	17	15,491
Total noncurrent assets	17,262	19,356
Total assets	40,808	45,610	4,802	470,343
LIABILITIES
Current liabilities:
Trade notes & accounts payable	2,230	3,086	856	32,812
Current portion of long-term debt	5	339	334	3,604
Accrued income taxes	739	607	(132)	6,454
Accrued bonus	322	391	69	4,157
Accrued bonus for directors	14	5	--	53
Notes payable for property acquisitions	1,457	315	(1,142)	3,349
Other current liabilities	1,270	1,718	448	18,267
Total current liabilities	6,037	6,461	424	68,696
Long-term liabilities:
Long-term debt	111	789	678	8,389
Deferred tax liabilities	17	104	87	1,106
Provision for retirement benefits	-	876	-	0
Other	236	239	3	2,541
Total long-term liabilities	364	2,008	1,644	12,036
Total liabilities	6,401	8,469	2,068	80,732
NET ASSETS
Shareholders' equity:
Common stock	8,647	8,647	--	91,940
Capital surplus	11,906	11,909	--	126,624
Retained earnings	15,510	17,181	1,671	182,679
Treasury stock, at cost	(141)	(134)	7	(1,425)
Total shareholders' equity	35,922	37,603	1,681	399,818
Valuation and translation adjustments:
Net unrealized gains (losses)	13	16	3	170
Foreign currency  translation adjustment	(1,562)	(511)	1,051	(5,433)
Total valuation and translation  adjustments	(1,549)	(495)	1,054	(5,263)
A subscription warrant　and　Minority stockholders share	34	33	-	351
Total shareholders' equity	34	33	(1)	351
Total net assets	34,407	37,141	2,734	394,906
Total liabilities & net assets	40,808	45,610	4,802	475,638

Consolidated Statements of Income
	million JPY	million JPY		thousand USD
	For year ended	For year ended	variance	For year ended
	31st March	31st March		31st March
	2012	2013		2013
Net sales	21,313	24,399	3,086	259,426
Cost of sales	14,567	17,418	2,851	185,199
Gross profit	6,746	6,981	235	74,227
Selling, general & administrative expenses	3,813	4,694	881	49,910
Operating income	2,933	2,287	(646)	24,317
Other income (expenses):
Interest and dividend income	40	45	5	478
Interest expenses	(2)	(4)	(2)	(43)
Rent income	105	93	(12)
Rent expenses on real estates for investments
Environmental expenses
Foreign exchange gain (loss), net	144	703	559	7,475
Stock issuance cost
Gain on sales of property, plant and equipment	(48)	(53)		(564)
Loss on disposal or sales of property, plant and equipment	(63)	(135)		(1,435)
Loss on valuation of inventories	(278)	18		191
Environmental expenses	-	(23)
Pension plan change benefit	-	128
Other, net	37	60	23	638
Other income (expenses), net	(17)	832	849	6,740
Income before income taxes	2,916	3,119	203	31,057
Income tax expenses:
Current	1,071	892	(179)	9,484
Deferred	(260)	187	447	1,988
Total income taxes	811	1,079	268	11,472
Net income	2,105	2,040	(65)	19,585

Consolidated Statement of Cash Flows
	million JPY	million JPY		thousand USD
	For year ended	For year ended	variance	For year ended
	31st March	31st March		31st March
	2011	2013		2013
Cash flows from operating activities:
Income before income taxes	2,916	3,119	203	31,057
Adjustments for:
Depreciation	1,813	1,958	145	20,819
Amortization of negative goodwill	--	73	0	0
Increase (decrease) in provision for retirement benefits	--	(181)		0
Decrease in allowance for doubtful accounts	(18)	2	20	21
Loss on disposal of property, plant & equipment	76	135	59	1,435
Interest & dividend income	(47)	(51)	(4)	(542)
Foreign exchange (gain) loss	0	(25)	(25)	(266)
Gain on sales of investment securities	0		0	0
Loss on valuation of inventories	86	(15)	(101)	(159)
Decrease (increase) in trade notes & accounts receivable	125	(327)	(452)	(3,477)
Increase in inventories	(1,917)	873	2,790	9,282
Decrease in trade notes & accounts payable	187	101	(86)	1,074
Other	(404)	(426)	(22)	(4,530)
Sub-total	2,817	5,236	2,419	54,714
Interest & dividend income received	49	53	4	564
Interest expenses paid	(2)	(5)	(3)	(53)
Income taxes paid	(956)	(1,138)	(182)	(12,100)
The amount of corporation tax return	--	--	-	0
Net cash provided by operating activities	1,908	4,146	2,238	43,125
Cash flows from investment activities:
Payments into time deposits	(66)	(610)	(544)	(6,486)
Proceeds from withdrawal of time deposits	0	30	--	319
Payments for purchase of	(5,075)	(3,721)	1,354	(39,564)
Proceeds from sales of	693	366	(327)	3,892
Payments for purchase of	(115)	(4)	111	(43)
Proceeds from purchase of investments in subsidiaries resulting in change in scope of consolidation	-	373		0
Proceeds from sales of	109	109	0	1,159
Purchase of intangible assets	(18)	(16)	2	(170)
Other	37	35	(2)	372
Net cash used in investing activities	(4,435)	(3,438)	997	(40,521)
Cash flows from financing activities:
Payments of long-term debt	(5)	(1,688)	(1,683)	(17,948)
Cash dividends paid	(346)	(369)	(23)	(3,923)
Proceeds from long-term loans payable	0	1,100	0	11,696
Payments for purchase of treasury stock	0		0	0
Proceeds from sales of treasury stock	4,606	10		106
Net cash used in financing activities	4,255	(947)	(5,202)	(10,069)
Effect of exchange rate	(34)	175	209	1,861
changes on cash & cash equivalents
Net increase (decrease) in	1,694	(64)	(1,758)	(5,604)
cash & cash equivalents
Cash and cash equivalents	8,380	10,074	1,694	107,113
at beginning of year				0
Cash and cash equivalents at end of year	10,074	10,010	(64)	101,509

Consolidated Statements of Changes in Net Assets
					million JPY
	Shareholders' equity
	Common stock	Capital surplus	Retained earnings	Treasury stock	Total shareholders' equity
Balance at 31 March 2012	8,647	11,906	15,510	(141)	35,922
Increase in legal capital					0
Cash dividends			(369)		(369)
Net income			2,040		2,040
Change of scope of consolidation					0
Purchase of treasury stock				0	0
Disposal of treasury stock		3		7	10
Other changes					0
Total changes during the year	0	3	1,671	7	1,681
Balance at 31 March 2013	8,647	11,909	17,181	(134)	37,603

					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 warrant　and　Minority stockholders share	Total net assets
Balance at 31 March 2012	13	(1,562)	(1,549)	34	34,407
Increase in legal capital					0
Cash dividends					(369)
Net income					2,040
Change of scope of consolidation					0
Purchase of treasury stock					0
Disposal of treasury stock					10
Other changes	4	1,051	1,055	(3)	1,052
Total changes during the year	4	1,051	1,055	(3)	2,733
Balance at 31 March 2013	16	(511)	(495)	33	37,141

					thousand USD
	Shareholders' equity
	Common stock	Capital surplus	Retained earnings	Treasury stock	Total shareholders' equity
Balance at 31 March 2012	91,940	126,592	164,912	(1,499)	381,946
Increase in legal capital	0	0	0	0	0
Cash dividends	0	0	(3,923)	0	(3,923)
Net income	0	0	21,691	0	21,691
Change of scope of consolidation	0	0	0	0	0
Purchase of treasury stock	0	0	0	0	0
Disposal of treasury stock	0	32	0	74	106
Other changes	0	0	0	0	0
Total changes during the year	0	32	17,767	74	17,873
Balance at 31 March 2013	91,940	126,624	182,679	(1,425)	399,818

					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 warrant　and　Minority stockholders share	Total net assets
Balance at 31 March 2012	138	(16,608)	(16,470)	362	365,837
Increase in legal capital	0	0	0	0	0
Cash dividends	0	0	0	0	(3,923)
Net income	0	0	0	0	21,691
Change of scope of consolidation	0	0	0	0	0
Purchase of treasury stock	0	0	0	0	0
Disposal of treasury stock	0	0	0	0	106
Other changes	43	11,175	11,217	(32)	11,186
Total changes during the year	43	11,175	11,217	(32)	29,059
Balance at 31 March 2013	170	(5,433)	(5,263)	351	394,906

 

END

 

 

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