Translation
Notice: This document is an excerpt translation of the original Japanese document and is only for reference purposes. In the event of any
discrepancy between this translated document and the original Japanese document, the latter shall prevail.

Summary of Consolidated Financial Results
for the Year Ended March 31, 2020
(Based on Japanese GAAP)May 14, 2020
Company name:

YAMAZEN CORPORATION

Stock exchange listing:Stock code:
8051
Representative:
Inquiries:

URL

https://www.yamazen.co.jp/

President, CEO & COO
Manager, IR & PR Dept.

Yuji NAGAO
Hayato HIRATA

Scheduled date of ordinary general meeting of shareholders:
Scheduled date to file Securities Report:

June 25, 2020
June 26, 2020

Scheduled date to commence dividend payments:
Preparation of supplementary material on financial results:

June 18, 2020
Yes

Holding of financial results meeting:

No

TEL

06-6534-3003(Amounts less than one million yen are rounded down)
1. Consolidated financial results for the year ended March 31, 2020 (from April 1, 2019 to March 31, 2020)(1) Consolidated operating results
Percentages indicate year-on-year changes
Profit attributable to
Net sales
Operating profit
Ordinary profit
owners of parent
Millions of yen% Millions of yen% Millions of yen% Millions of yen%
Year ended March 31, 2020
472,191(10.3)
12,091 (32.8)
11,895(33.4)
8,088(33.6)
Year ended March 31, 2019
526,364
5.7
17,99717.0
17,85917.9
12,18419.4
Note: Comprehensive income

Year ended March 31, 2020
Year ended March 31, 2019
Earnings per share¥6,032 million [(48.5)%]¥11,702 million [6.5%]
Profit attributable toOrdinary profit/total Operating profit/net
owners ofassetssales
parent/equity
Yen
%
%
%
–
8.6
5.0
2.6
–
13.8
7.3
3.4

Diluted earnings per
share

Yen
85.60
128.80Year ended March 31, 2020
Year ended March 31, 2019

Reference: Share of profit of entities accounted for using equity method
Year ended March 31, 2020¥– million¥– million

Year ended March 31, 2019(2) Consolidated financial position

Total assets
As of March 31, 2020
As of March 31, 2019
Reference: Equity

Net assets

Millions of yen
230,320
245,595

Millions of yen
95,43993,113As of March 31, 2020

¥95,056 million

As of March 31, 2019¥92,770 million

Equity ratio

Net assets per share
%
41.3
37.8

Yen
1,007.30
980.69(3) Consolidated cash flows

Year ended March 31, 2020
Year ended March 31, 2019

Cash flows fromoperating activities
Millions of yen
13,3999,306

Cash flows frominvesting activities
Millions of yen(1,866)(965)

1Cash flows from
Cash and cash equivalents
at end of period
financing activities
Millions of yen
Millions of yen(6,382)
68,385(5,808)63,789

2. Cash dividends
Annual dividends per share
1st quarter-end 2nd quarter-end 3rd quarter-end Fiscal year-end
Yen

Yen

Year ended March 31, 2019–
15.00
Year ended March 31, 2020–
16.00
Year ending March 31, 2021––
(Forecast)
Note: Details of year-end dividends for the year ended March 31, 2019of dividends
Total cash
Dividend payout Ratio
to net assets
dividends (Total) ratio (Consolidated) (Consolidated)

Total

Yen

Yen

Yen

Millions of yen

%

%

–
–

21.00
14.00

36.00
30.00

3,405
2,837

28.0
35.0

3.8
3.0

–

–

–

–

Ordinary dividends 17.5 yen Special dividends
Year-end dividends for the year ending March 31, 2021 have not yet been determined at this stage.

3.5 yen

3. Forecast of consolidated financial results for the year ending March 31, 2021 (from April 1, 2020 to March 31, 2021)
Forecasts of the consolidated financial results for the fiscal year ending March 31, 2021 have not yet been determined as it is difficult at thisstage to rationally estimate the impact of the spread of novel coronavirus disease (COVID-19). The forecasts will be disclosed promptly once it ispossible to do so.
4. Notes(1) Changes in significant subsidiaries during the year ended March 31, 2020(changes in specified subsidiaries resulting in the change in scope of consolidation):No(2) Changes in accounting policies, changes in accounting estimates, and restatement of prior period financial statements
Changes in accounting policies due to revisions to accounting standards and other regulations:
Changes in accounting policies due to other reasons:

Yes
No

Changes in accounting estimates:
Restatement of prior period financial statements:

NoNo(3) Number of issued shares (common shares)
Total number of issued shares at the end of the period (including treasury shares)
As of March 31, 2020

95,305,435 shares As of March 31, 201995,305,435 shares

Number of treasury shares at the end of the period
As of March 31, 2020

937,956 shares As of March 31, 2019707,603 shares

94,489,461 shares Year ended March 31, 201994,597,863 shares

Average number of shares during the period
Year ended March 31, 2020

Note: The company has introduced Board Benefit Trust (BBT). Number of treasury shares at the end of the period include the Company’s shares
held by Board Benefit Trust (BBT) (180,000 shares as of March 31, 2020, - shares as of March 31, 2019). In addition, number of treasury shares
excluded for calculating the average number of shares during the period include the Company’s shares held by Board Benefit Trust (BBT)(104,485 shares for the fiscal year ended March 31, 2020, - shares for the fiscal year ended March 31, 2019).

2

Reference: Summary of non-consolidated financial results
Non-consolidated financial results for the year ended March 31, 2020 (from April 1, 2019 to March 31, 2020)(1) Non-consolidated operating results
Percentages indicate year-on-year changes
Net salesYear ended March 31, 2020
Year ended March 31, 2019

Operating profit

Millions of yen
423,958
472,607% Millions of yen(10.3)
9,397
4.7
13,951

Earnings per share
Yen
77.52
126.42

Year ended March 31, 2020
Year ended March 31, 2019

Ordinary profit% Millions of yen(32.6)
10,315
15.6
16,484

Profit% Millions of yen(37.4)
7,324
21.2
11,958%(38.8)
15.6

Diluted earnings
per shareYen––(2) Non-consolidated financial position
Total assets
As of March 31, 2020
As of March 31, 2019
Reference: Equity

Net assets

Millions of yen
205,820
220,495

Millions of yen
80,93378,252As of March 31, 2020

¥80,933 million

As of March 31, 2019¥78,252 million

Equity ratio

Net assets per share
%
39.3
35.5

Yen
857.64827.21* Financial results reports are exempt from audit conducted by certified public accountants or an audit corporation.
* Proper use of forecasts of financial results, and other special matters(Caution concerning forward-looking statements)
Forecasts of the consolidated financial results for the fiscal year ending March 31, 2021 have not yet been determined as it is difficult at thisstage to rationally estimate the impact of the spread of novel coronavirus disease (COVID-19). The forecasts will be disclosed promptly once it ispossible to do so.

3Consolidated financial statements
Consolidated balance sheets(Millions of yen)
As of March 31, 2019

As of March 31, 2020

AssetsCurrent assets
Cash and deposits
Notes and accounts receivable - trade

52,984
99,63357,587
85,200Electronically recorded monetary claims - operating
Securities

14,88912,401

14,016
11,000

Merchandise and finished goods
Other

31,197
4,671

27,0993,339

Allowance for doubtful accounts
Total current assets

(635)

(526)

215,144

197,717

Non-current assets
Property, plant and equipment
Buildings and structures

6,004

6,029

Accumulated depreciation(3,551)(3,696)

Buildings and structures, net

2,453

2,333

Machinery, equipment and vehicles

448

433

Accumulated depreciation

(342)

(343)

106

90

Machinery, equipment and vehicles, net
Tools, furniture and fixtures
Accumulated depreciation
Tools, furniture and fixtures, net

2,196

2,515

(1,461)(1,738)

734

776

Land

3,594

3,580

Leased assets
Accumulated depreciation

5,494(1,368)5,449(1,758)

Leased assets, net

4,125

3,690

45

1,562

Other

11,05912,034

Intangible assets

Total property, plant and equipment

3,695

6,343

Investments and other assets
Investment securities

12,131

11,720Distressed receivables
Retirement benefit asset

102
1,121

85
610

Deferred tax assets
Other

414
2,111

356
1,620

Allowance for doubtful accounts

(185)

(167)

Total investments and other assets

15,695

14,22530,451

32,603

245,595

230,320

Total non-current assets
Total assets

4

(Millions of yen)
As of March 31, 2019

As of March 31, 2020

Liabilities
Current liabilities
Notes and accounts payable - trade73,38457,758

Electronically recorded obligations - operating
Short-term borrowings

55,364–56,039174

Lease obligations
Income taxes payable

448
3,032

394
662

Provision for bonuses
Provision for voluntary recall of goods

3,117
32

2,381
32

Other

9,081

9,492

144,462

126,935

Lease obligations
Deferred tax liabilities

4,670
2,002

4,405
1,652

Retirement benefit liability
Other

284
1,062

328
1,558

Total non-current liabilities

8,019

7,945

152,482

134,881

Shareholders' equity
Share capital

7,909

7,909

Capital surplus
Retained earnings

7,561
73,016

7,561
77,604

Treasury shares

(751)

(957)

87,735

92,118Valuation difference on available-for-sale securities
Deferred gains or losses on hedges

5,481
(35)

4,447
68

Foreign currency translation adjustment
Remeasurements of defined benefit plans

1,295(1,707)379(1,956)

Total accumulated other comprehensive income

5,034

2,938

Total current liabilities
Non-current liabilities

Total liabilities
Net assets

Total shareholders' equity
Accumulated other comprehensive income

Non-controlling interests
Total net assets
Total liabilities and net assets

5

342

382

93,113

95,439245,595

230,320

Consolidated statements of income and consolidated statements of comprehensive income
Consolidated statements of income(Millions of yen)
Fiscal year ended
March 31, 2019

Fiscal year ended
March 31, 2020

Net sales

526,364

472,191

Cost of sales

456,738

408,890

Gross profit

69,62663,301

Selling, general and administrative expenses

51,62851,209Operating profit

17,997

12,091Non-operating income
Interest income

1,656

1,564

Dividend income
Other

235
301

262
159

2,193

1,986

2,118

2,039

Total non-operating income
Non-operating expenses
Interest expenses
Other
Total non-operating expenses
Ordinary profit
Extraordinary income
Gain on sales of non-current assets

213

142

2,331

2,182

17,85911,8958

0Gain on sales of investment securities

0–

Total extraordinary income

80Loss on retirement of non-current assets
Loss on sales of investment securities

9
–

11
0

Loss on valuation of investment securities
Loss on valuation of golf club membership

–
5

18
18

Impairment loss
Other

3
0

113
–

Total extraordinary losses

19

161

Profit before income taxes

17,848

11,735

Income taxes - current
Income taxes - deferred

5,800
(169)

3,386
213

Total income taxes

5,631

3,599

Profit12,216

8,135

32

46

12,184

8,088

Extraordinary losses

Profit attributable to non-controlling interests
Profit attributable to owners of parent

6

Consolidated statements of comprehensive income(Millions of yen)

ProfitOther comprehensive income

Fiscal year ended

Fiscal year ended

March 31, 2019

March 31, 2020
12,216

8,135

Valuation difference on available-for-sale securities
Deferred gains or losses on hedges

(732)
51

(1,034)103

Foreign currency translation adjustment
Remeasurements of defined benefit plans, net of tax

169
(2)

(922)
(249)

Total other comprehensive income(514)(2,102)

11,702

6,032

11,656

5,992

45

40

Comprehensive income
Comprehensive income attributable toComprehensive income attributable to owners of parent
Comprehensive income attributable to non-controllinginterests

7

Consolidated statements of changes in equity
Fiscal year ended March 31, 2019
(Millions of yen)
Shareholders' equity
Share capital
Balance at beginning of period

Capital surplus

7,909

Retained earnings

7,561

Total shareholders'equityTreasury shares

64,092(751)

78,812

Changes during period
Dividends of surplus(1,844)(1,844)

Interim dividends fromsurplus(1,418)(1,418)

Profit attributable to ownersof parent

12,184

12,184Purchase of treasury shares(0)Change in scope of
consolidation

(0)

3

3

Net changes in items otherthan shareholders' equity
Total changes during period
Balance at end of period

–

–

8,923

(0)

8,923

7,909

7,561

73,016(751)

87,735

Accumulated other comprehensive income

Balance at beginning of period

Valuationdifference on
available-forsale securities

Deferred gains
or losses onhedgesForeigncurrencytranslation
adjustment

6,217

(86)

1,130

Total
accumulated
otherof defined benefit
comprehensive
plansincomeRemeasurements(1,705)

5,556

Non-controllinginterests

Total net assets

296

84,665

Changes during period
Dividends of surplus(1,844)

Interim dividends fromsurplus(1,418)

Profit attributable to ownersof parent

12,184Purchase of treasury shares(0)Change in scope of
consolidation

3

Net changes in items otherthan shareholders' equity

(735)

51

165

(2)

(521)

45

(475)

Total changes during period

(735)

51

165

(2)

(521)

45

8,447

Balance at end of period

5,481

(35)

1,295

(1,707)

5,034

342

93,1138

Fiscal year ended March 31, 2020
(Millions of yen)
Shareholders' equity
Share capital
Balance at beginning of period

Capital surplus

7,909

Retained earnings

7,561

Total shareholders'equityTreasury shares

73,016(751)

87,735

Changes during period
Dividends of surplus(1,986)(1,986)

Interim dividends fromsurplus(1,513)(1,513)

Profit attributable to ownersof parent

8,088

8,088

Purchase of treasury shares

(206)

(206)

Net changes in items otherthan shareholders' equity
Total changes during period
Balance at end of period

–

–

4,588

(206)

4,382

7,909

7,561

77,604(957)

92,118

Accumulated other comprehensive income

Balance at beginning of period

Valuationdifference on
available-forsale securities

Deferred gains
or losses onhedgesForeigncurrencytranslation
adjustment

5,481

(35)

1,295

Total
accumulated
otherof defined benefit
comprehensive
plansincomeRemeasurements(1,707)

5,034

Non-controllinginterests

Total net assets

342

93,113

Changes during period
Dividends of surplus(1,986)

Interim dividends fromsurplus(1,513)

Profit attributable to ownersof parent

8,088

Purchase of treasury shares(206)

Net changes in items otherthan shareholders' equity(1,034)

103

(916)

(249)

(2,096)40(2,055)

Total changes during period(1,034)

103

(916)

(249)

(2,096)40

2,326

Balance at end of period

4,447

68

379

(1,956)

2,938

382

95,4399

Consolidated statements of cash flows(Millions of yen)
Fiscal year ended

Fiscal year ended

March 31, 2019

March 31, 2020

Cash flows from operating activities
Profit before income taxes

17,848

11,735

Depreciation
Retirement benefit expenses

1,755
392

2,013
588

3
87

113
(117)

Increase (decrease) in other provisions
Increase (decrease) in retirement benefit liability

166
(455)

(716)
(372)

Decrease (increase) in retirement benefit asset
Interest and dividend income(28)(1,892)(10)(1,826)

Interest expenses
Foreign exchange losses (gains)

2,118
(32)

2,039
3

Loss (gain) on sales of investment securities
Loss (gain) on valuation of investment securities

(0)
–

0
18

Loss on retirement of property, plant and equipment andintangible assets

911Loss (gain) on sales of property, plant and equipment andintangible assets

(8)

(0)

Decrease (increase) in trade receivables
Decrease (increase) in inventories

870
1,702

14,915
3,754

Increase (decrease) in trade payables
Other, net(4,136)(3,095)(14,667)
1,642

Subtotal

15,306

19,123

Income taxes paid

(6,000)(5,723)

Net cash provided by (used in) operating activities

9,306

13,399Payments into time deposits
Proceeds from withdrawal of time deposits

(57)
57

(27)
59

Purchase of securities
Proceeds from redemption of securities

(500)
500

–
500

Purchase of investment securities
Proceeds from sales and redemption of investment securities

(44)
50

(1,090)898

Loan advances
Collection of loans receivable

(19)
68

(7)
21

Payments of other investmentsCollection of other investments

(148)
56

(101)
30

Purchase of property, plant and equipment and intangible
assets(2,838)(3,988)Proceeds from sales of property, plant and equipment andintangible assets

15

7

Impairment loss
Increase (decrease) in allowance for doubtful accounts

Cash flows from investing activities

Interest and dividends received

1,894

1,832

Net cash provided by (used in) investing activities(965)(1,866)10

(Millions of yen)

Cash flows from financing activities
Net increase (decrease) in short-term borrowings

Fiscal year ended

Fiscal year ended

March 31, 2019

March 31, 2020–

177

Repayments of lease obligations
Dividends paid

(427)
(3,263)(485)(3,500)Interest paid
Purchase of treasury shares(2,117)(0)(2,038)
(206)

–

(329)

Net cash provided by (used in) financing activities(5,808)(6,382)

Effect of exchange rate change on cash and cash equivalents

96

(555)

Other, net

Net increase (decrease) in cash and cash equivalents

2,628

4,595

Cash and cash equivalents at beginning of period
Increase in cash and cash equivalents resulting from inclusion of

60,67563,789486–

63,78968,385subsidiaries in consolidation
Cash and cash equivalents at end of period11