FY3/22 3Q Consolidated Financial Statements[J-GAAP]
Company name:Company code:
Representative:

Matsuda Sangyo Co., Ltd.
7456
President
Executive Officer/
Inquiries:
General Manager of IR Dept.
Filing date of quarterly report:
Date to start dividends distribution:
Supplementary quarterly materials prepared:
Results briefing for quarterly financial results
held:February 10, 2022
Tokyo Stock Exchange (First Section)
https://www.matsuda-sangyo.co.jp

Exchanges listed on:
URL:
Yoshiaki Matsuda
Yoshinori Tanaka

TEL:+81-3-5381-0728

February 10, 2022
－
None
None
(Figures are rounded down to the nearest million yen)

1. FY3/22 3Q consolidated results (April 1, 2021 – December 31, 2021)(1) Consolidated results
Net sales(millions of yen)

FY3/22 3Q

203,634

FY3/21 3Q

171,385(Note) Comprehensive income:(Percentages are year-on-year changes)

Operating profit(%) (millions of yen)(%) (millions of yen)

18.8

10,463

66.4

8.9

6,287

20.2

FY3/22 3Q: ¥8,362 million (+83.1%)

Earnings per share

Profit attributable toowners of parent

Ordinary profit(%) (millions of yen)(%)

11,269

76.9

7,900

69.0

6,371

16.2

4,676

25.0

FY3/21 3Q: ¥4,568 million (+36.1%)

Diluted earnings per share
(yen)

(yen)

FY3/22 3Q

302.86－

FY3/21 3Q

178.17－(Note) Effective from the start of the first quarter of FY3/22, the Company has applied the “Accounting Standard for Revenue
Recognition” (ASBJ Guidance No. 29), etc. The above amounts for FY3/22 3Q reflect the new accounting standard.

(2) Consolidated financial position
Total assets(millions of yen)(millions of yen)(%)

111,275

73,10065.6

65,605

62.8

End-FY3/22 3Q
End-FY3/21(Reference) Shareholders’ equity:

Shareholders’ equity ratio

Net assets

104,265
End-FY3/22 3Q: ¥72,983 million

End-FY3/21: ¥65,494 million

2. Dividends
1Q

Annual dividends
3Q

2Q
(yen)

(yen)

(yen)

FY3/21

－

18.00

－

FY3/22

－

22.00

－

FY3/22 (Projections)(Note) Revisions to the most recently announced projections of dividends: None

4Q

Annual
(yen)

(yen)

20.00

38.00

22.00

44.00

3. Consolidated earnings projections for FY3/22 (April 1, 2021 – March 31, 2022)(Percentages are year-on-year changes)

Net sales(millions of yen)

FY3/22260,000

Operating profit

Profit attributable to Earnings perowners of parent
share

Ordinary profit(%) (millions of yen)(%) (millions of yen)(%) (millions of yen)

(%)

(yen)

12.3

51.8

55.3

49.2

348.84

12,20013,0009,100(Note) Revisions to the most recently announced projections of consolidated earnings: None

* Notes(1) Material changes in subsidiaries during the period (changes in specified subsidiaries resulting fromchanges in scope of consolidation): No(2) Application of special accounting treatment in preparing the quarterly consolidated financial statements: No(3) Changes in accounting policies, changes in accounting estimates and restatement of revisions
1) Changes in accounting policies with revision of accounting standards: Yes
2) Changes in accounting policies other than the above:No3) Changes in accounting estimates:
No4) Restatement of revisions:No(4) Number of issued shares (common shares)
1) Number of issued shares(including treasury shares)
2) Number of treasury shares
3) Average number of shares
during the period

End-FY3/22 3Q

28,908,581 shares End-FY3/21

28,908,581 shares

End-FY3/22 3Q

2,822,595 shares End-FY3/21

2,821,968 shares

FY3/22 3Q

26,086,356 shares FY3/21 3Q

26,244,344 shares* This quarterly kessan tanshin document is outside the scope of audit procedures conducted by certified public
accountants and the independent auditor.
* Explanation of the proper use of earnings projections and other notes
This document contains earnings projections and other information that constitute forward-looking statements. Thesestatements are based on reasonable assumptions and information currently available to the Company and provide
no guarantee of future performance. Actual results may differ materially from forward-looking statements due to anumber of factors.

Contents of Attached Document

1. Qualitative information on consolidated results during the period .................................................. 2(1) Qualitative information on consolidated results ............................................................................................. 2(2) Qualitative information on consolidated financial position ............................................................................ 2(3) Qualitative information on consolidated earnings projections ...................................................................... 3

2. Quarterly consolidated financial statements and related notes ........................................................ 4(1) Quarterly consolidated balance sheets ............................................................................................................ 4(2) Quarterly consolidated statements of income and comprehensive income ................................................. 6(3) Quarterly consolidated statements of cash flows ........................................................................................... 8(4) Notes on quarterly consolidated financial statements ................................................................................. 10(Notes on premise of a going concern) ................................................................................................................ 10(Notes on significant changes in the amount of shareholders’ equity) ................................................................. 10(Changes in accounting policy) ............................................................................................................................ 10(Segment information, etc.) ...................................................................................................................................11

1

1. Qualitative information on consolidated results during the period(1) Qualitative information on consolidated results
In the first nine months of the fiscal year ending March 31, 2022, the global economy showed signs of a pickup
overall, despite stalled production activity and supply-chain disruption caused by intermittent outbreaks of COVID19. In Japan as well, the impact of the pandemic subsided somewhat heading into the end of 2021 and there was amoderate recovery in corporate earnings, production activity and consumer spending.
Against that backdrop, the Matsuda Sangyo Group (the Group) worked to prevent the spread of infection byprioritizing the health and safety of employees and all people associated with the Group, while also driving businessexpansion. The precious metals business segment stepped up marketing activities and actively used production sites
in Japan and overseas to secure precious metals materials, boost sales of products such as precious metal chemical
products and expand its industrial waste treatment outsourcing business. In addition, the food business segment
worked to increase sales volume by sourcing products that meet increasingly diverse customer needs and by
ensuring stable supplies of safe and reliable food products.
As a result of the above, for the first nine months of the fiscal year ending March 31, 2022, consolidated net sales
were ¥203,634 million (up 18.8% year on year), operating profit was ¥10,463 million (up 66.4% year on year), ordinary
profit was ¥11,269 million (up 76.9% year on year), and profit attributable to owners of parent was ¥7,900 million (up69.0% year on year).
Effective from the start of the first quarter of FY3/22, the Company has applied the “Accounting Standard for
Revenue Recognition” (ASBJ Guidance No. 29, March 31, 2020; “Revenue Recognition Standard”), etc. In the firstnine months, the application of the accounting standard reduced net sales by ¥13,876 million and increased operating
profit, ordinary profit and profit before income taxes by ¥47 million. For more details, please refer to “2. Quarterly
consolidated financial statements and related notes, (4) Notes on consolidated financial statements, (Changes inaccounting policy) and (Segment information, etc.).”Performance in the Matsuda Sangyo Group’s business segments was as follows.
Precious metals business segment
In the electronics sector, the key market for the precious metals business segment, production activity declined in
the automotive sector and other industries due to a shortage of semiconductors, but production activity recovered in
the electronic parts and devices field, spurred by a pickup in the smartphone market and growth in telecom
infrastructure construction due to the rollout of 5G. Against that backdrop, despite a drop in the prices of some
precious metals, sales and operating profit both increased compared with the same period of the previous fiscal year,
reflecting higher volumes for precious metal recycling and industrial waste treated on an outsourcing basis and anincrease in sales volumes for gold and silver products.
As a result, net sales for the precious metals business segment totaled ¥142,794 million (up 29.1% year on year),and operating profit was ¥8,286 million (up 57.4% year on year).
Food business segment
In the food processing sector, the key market for the food business segment, conditions remained challenging overall
amid rising raw material prices and higher logistics costs. In addition, ongoing disruption in global supply chains,
including a shortage of shipping containers, remained a risk to stable supplies of food ingredients. Despite thatbackdrop, the food business segment reported higher sales and operating profit compared with the same period of
the previous fiscal year. This reflected efforts by the business to stand out in the market by sourcing products thatmeet customer needs and by leveraging its strengths in procurement to ensure stable supplies, resulting in higher
sales volumes for seafood products, livestock products and agricultural products.
As a result, net sales for the food business segment were ¥60,896 million (up 0.0% year on year), and operating
profit was ¥2,176 million (up 112.5% year on year).

(2) Qualitative information on consolidated financial position(1) Assets, liabilities and net assets
AssetsTotal assets as of the end of the first nine months were ¥111,275 million, an increase of ¥7,009 million from theprevious fiscal year end. This mainly reflected the difference between increases for cash and deposits, and notes
and accounts receivable – trade, and a decrease for inventories.
Liabilities
Total liabilities as of the end of the first nine months were ¥38,174 million, a decrease of ¥485 million from the previous
fiscal year end. This largely reflected the difference between increases for accounts payable – trade and short-termloans payable, and decreases for accounts payable - other and long-term loans payable.

2Net assets
Net assets as of the end of the first nine months were ¥73,100 million, an increase of ¥7,495 million from the previous
fiscal year end. This mainly reflected an increase in retained earnings, which exceeded year-end and interim cash
dividends paid of ¥1,095 million. The increase in retained earnings includes an adjustment of ¥229 million at the startof the first quarter related to the application of the Revenue Recognition Standard.
(2) Cash flows status
As of the end of the first nine months under review, the balance of cash and cash equivalents (hereafter, “cash”)
stood at ¥10,987 million, an increase of ¥2,183 million from the previous fiscal year end.
Cash flows from operating activities
Operating activities provided net cash of ¥5,281 million. This mainly reflected cash provided by profit before income
taxes and depreciation, outweighing cash used for increase in notes and accounts receivable – trade and income
taxes paid. Compared with the same period in the previous fiscal year, when operating activities provided net cashof ¥2,113 million, cash from operating activities increased by ¥3,168 million.
Cash flows from investing activities
Investing activities used net cash of ¥1,872 million. This was mainly due to the purchase of property, plant andequipment related to the installation and upgrade of production equipment and machinery. Compared with the same
period in the previous fiscal year, when investing activities used net cash of ¥2,631 million, cash used by investing
activities decreased by ¥758 million.
Cash flows from financing activities
Financing activities used net cash of ¥1,321 million. This largely reflected cash provided by increase in short-termloans payable, outweighed by cash used for repayments of long-term loans payable and for cash dividends paid.
Compared with the same period in the previous fiscal year, when financing activities used net cash of ¥2,118 million,
cash used by financing activities decreased by ¥797 million.

(3) Qualitative information on consolidated earnings projections
At this stage, there are no revisions to the Company’s earnings projections released on November 5, 2021.

3

2. Quarterly consolidated financial statements and related notes(1) Quarterly consolidated balance sheets(millions of yen)
End-FY3/21(As of March 31, 2021)

End-FY3/22 3Q(As of December 31, 2021)

AssetsCurrent assets
Cash and deposits

8,803

10,987

Notes and accounts receivable – trade23,901

29,194Merchandise and finished goods

26,57824,097Work in process

536

583

Raw materials and supplies

11,266

12,330Accounts receivable - other

1,449

1,983

Others

4,073

3,816

Allowance for doubtful accounts

(128)

(9)

76,482

82,981

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

12,182

12,335

Accumulated depreciation(5,729)(6,035)

Buildings and structures, net

6,452

6,300

Machinery, equipment and vehicles

11,46912,118

Accumulated depreciation(8,288)(9,024)

Machinery, equipment and vehicles, net

3,180

3,094

Land

8,736

8,744

Leased assets

1,814

1,714

Accumulated depreciation

(858)

(898)

Leased assets, net

955

816

Construction in progress

612

1,103

1,458

1,554

(1,188)(1,280)270

273

20,20920,332Others515652

Total intangible assets

515

652

Investment securities

4,947

5,323

Deferred tax assets

499

188

Others
Accumulated depreciation
Others, net
Total property, plant and equipment
Intangible assets

Investments and other assets

Others

1,642

1,822

Allowance for doubtful accounts

(30)

(26)

Total investments and other assets

7,058

7,308

Total non-current assets

27,78328,293

Total assets

104,265

111,2754

(millions of yen)
End-FY3/21(As of March 31, 2021)

End-FY3/22 3Q(As of December 31, 2021)

Liabilities
Current liabilities
Accounts payable – trade

9,744

10,623

Short-term loans payable

9,007

10,187

Current portion of long-term loans payable

1,488

1,588

Lease obligations

407

284

Income taxes payable

1,708

1,956

Provision for bonuses

976

482

Accounts payable - other

1,564

765

Others

4,448

4,205

Total current liabilities

29,34330,093

5,827

4,586

566

542

Non-current liabilities
Long-term loans payable
Lease obligations
Deferred tax liabilities

36

92

Provision for directors’ retirement benefits

701

731

Provision for executive officers’ retirement
benefits

18

23

2,137

2,077

28

26

9,315

8,080

38,65938,174

Common stock

3,559

3,559

Capital surplus

4,008

4,008

Retained earnings

61,24868,282

Treasury shares(3,411)(3,412)

Total shareholders’ equity

65,40472,437

Valuation difference on available-for-salesecurities

617

624

Deferred gains or losses on hedges

(70)

(63)

Foreign currency translation adjustment

671

934

(1,127)(949)

Net defined benefit liability
OthersTotal non-current liabilities
Total liabilities
Net assets
Shareholders’ equity

Accumulated other comprehensive income

Remeasurements of defined benefit plans
Total accumulated other comprehensive income
Non-controlling interests
Total net assets
Total liabilities and net assets

5

89

545

111

117

65,605

73,100104,265

111,275

(2) Quarterly consolidated statements of income and comprehensive income[Quarterly consolidated statements of income](millions of yen)
FY3/21 3Q(April 1, 2020 –December 31, 2020)

FY3/22 3Q(April 1, 2021 –December 31, 2021)

Net sales

171,385

203,634

Cost of sales

153,067

180,341

Gross profit

18,31823,292

Selling, general, and administrative expenses

12,03012,829Operating profit

6,287

10,463

Interest income

45Dividend income

2429

Gain on sale of investment securities

1

-

159

393

Purchase discounts

811

Foreign exchange gains

Non-operating income

Share of profit of entities accounted for using
equity method-

44

Subsidy income

12

326

Others32

45

Total non-operating income

243

856

Interest expenses

53

43

Foreign exchange losses

57-

Others49

7

Total non-operating expenses

159

50

6,371

11,269Gain on sale of land347-

Total extraordinary income

Non-operating expenses

Ordinary profit
Extraordinary income

347-

Profit before income taxes

6,719

11,269

Income taxes – current

1,750

3,172

Income taxes – deferred

284

181

Total income taxes

2,034

3,354

Profit

4,685

7,915

8

14

4,676

7,900

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

6

[Quarterly consolidated statements of comprehensive income](millions of yen)
FY3/21 3Q(April 1, 2020 –December 31, 2020)
ProfitFY3/22 3Q(April 1, 2021 –December 31, 2021)

4,685

7,915

Valuation difference on available-for-salesecurities

127

7

Deferred gains or losses on hedges

Other comprehensive income203Foreign currency translation adjustment

(428)

218

Remeasurements of defined benefit plans

206

178

Share of other comprehensive income (loss) ofentities accounted for using equity method

(43)

39

Total other comprehensive income (loss)
Comprehensive income

(116)

447

4,568

8,362

4,563

8,356

4

5

Comprehensive income attributable toComprehensive income attributable to ownersof parent
Comprehensive income attributable to noncontrolling interests7(3) Quarterly consolidated statements of cash flows(millions of yen)
FY3/21 3Q(April 1, 2020 –December 31,
2020)

FY3/22 3Q(April 1, 2021 –December 31,
2021)

Cash flows from operating activities
Profit before income taxes

6,719

11,269Depreciation

1,545

1,585

14

(122)

Increase (decrease) in provision for bonuses

(450)

(493)

Increase (decrease) in net defined benefit liability

225

193

Increase (decrease) in provision for directors’ retirement benefits

1030

Increase (decrease) in provision for executive officers’ retirement
benefits

4

5

Interest and dividend income

(28)

(35)

Interest expenses

53

43

(159)

(393)

(6,778)(5,211)

Decrease (increase) in accounts receivable - other

41

(532)

Decrease (increase) in inventories

785

614

Increase (decrease) in accounts payable – trade

1,003

607

Increase (decrease) in accounts payable - other

(73)

(565)

Others

1,450

1,126

Subtotal

4,362

8,121

Interest and dividend income received

77

124

Interest paid

(53)

(43)

(2,272)(2,920)

2,113

5,281

Increase (decrease) in allowance for doubtful accounts

Share of (profit) loss of entities accounted for using equity method
Decrease (increase) in notes and accounts receivable – trade

Income taxes paid
Net cash provided by (used in) operating activities
Cash flows from investing activities
Purchase of property, plant and equipment(2,948)(1,702)

Proceeds from sale of property, plant and equipment445

6Purchase of intangible assets

(121)

(211)

Purchase of investment securities

(10)

(21)

Proceeds from sale of investment securities

4-

Others(1)

55(2,631)(1,872)

Net cash provided by (used in) investing activities8

(millions of yen)
FY3/21 3Q(April 1, 2020 –December 31,
2020)

FY3/22 3Q(April 1, 2021 –December 31,
2021)

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

(996)

1,173

Proceeds from long-term loans payable

1,500

-

Repayments of long-term loans payable(1,101)(1,141)

Cash dividends paid

(919)

(1,095)Purchase of treasury shares

(309)

(1)

Others

(292)

(256)

(2,118)(1,321)

Net cash provided by (used in) financing activities
Effect of exchange rate change on cash and cash equivalents

(242)

95

Net increase (decrease) in cash and cash equivalents(2,878)2,183

Cash and cash equivalents at beginning of period

11,652

8,803

Cash and cash equivalents at end of period

8,773

10,9879

(4) Notes on quarterly consolidated financial statements(Notes on premise of a going concern)
There is nothing to report.

(Notes on significant changes in the amount of shareholders’ equity)
There is nothing to report.

(Changes in accounting policy)(Application of Accounting Standard for Revenue Recognition, etc.)
The Company has applied the “Accounting Standard for Revenue Recognition” (ASBJ Statement No. 29, March 31,
2020; “Revenue Recognition Standard”), etc. from the beginning of the first quarter of the fiscal year ending March
31, 2022. Under the new standard, the Company recognizes revenue when control of promised goods or services istransferred to a customer, with the amount expected to be received upon exchange of the goods or services
recognized as revenue. Previously, revenue in the precious metals business segment and the food business segment
was recognized as an aggregate amount. However, as a result of the application of the accounting standard, forgoods or services for which the Group is deemed to have performed a role in supplying them to customers (directlyor as an agent), net amounts are recognized for revenue for goods and services provided as an agent. In addition,
the timing of the transfer of goods and services in the precious metals business segment and the food businesssegment has been aligned with contracts. Furthermore, in paid supply transactions in the food business segment,
paid supply goods were recognized as extinguished under previous accounting treatment. However, for paid supply
transactions with buyback obligations, paid supply goods are not recognized as extinguished.
The application of the Revenue Recognition Standard is subject to the transitional treatment provided for in the
supplementary provisions of Paragraph 84 of the Revenue Recognition Standard. The cumulative effect of theretroactive application, if the new accounting policy is applied prior to the beginning of the first quarter, is added to or
subtracted from retained earnings at the beginning of the first quarter and the new accounting policy is applied tobalances at the beginning of said period. However, the method stipulated in Paragraph 86 of the Revenue
Recognition Standard has been applied, and the new accounting policy has not been retroactively applied tocontracts for which almost all revenue had been recognized prior to the beginning of the first quarter, in accordancewith the previous accounting policy. In addition, the method stipulated in provision (1) of Paragraph 86 of the Revenue
Recognition Standard has been applied. After conducting accounting procedures based on contract conditions andreflecting all changes in contracts made prior to the beginning of the first quarter, the cumulative effect has been
added to or subtracted from retained earnings at the beginning of the first quarter.
As a result, for the first nine months of the fiscal year ending March 31, 2022, the application of the accounting
standard reduced net sales by ¥13,876 million and increased operating profit, ordinary profit and profit before income
taxes by ¥47 million. In addition, the balance of retained earnings at the start of the period increased by ¥229 million.
In accordance with the transitional treatment stipulated in Paragraph 28-15 of the Accounting Standard for
Quarterly Financial Reporting (ASBJ Statement No. 12, March 31, 2020), information on the breakdown of revenue
generated from contracts with customers in the first nine months of the previous fiscal year is not shown.
(Application of Accounting Standard for Fair Value Measurement, etc.)
The Company has applied the “Accounting Standard for Fair Value Measurement” (ASBJ Statement No. 30, July 4,
2019; “Fair Value Measurement Standard”), etc. from the beginning of the first quarter of the fiscal year ending March
31, 2022. In accordance with the transitional treatment stipulated in Paragraph 19 of the Fair Value Measurement
Standard and Paragraph 44-2 of the “Accounting Standard for Financial Instruments” (ASBJ Statement No. 10, July4, 2019), the Company has decided to apply the new accounting policies in the Fair Value Measurement Standard
going forward. These changes had no impact on the quarterly consolidated financial statements.

10

(Segment information, etc.)
I. FY3/21 3Q (April 1, 2020 – December 31, 2020)
1. Information for net sales and profit/loss for each reportable segment(millions of yen)Amountrecorded onquarterly
consolidated
statements ofincomeReportable Segments
Precious
metalsbusinesssegment

Adjustments
Food businesssegment

Note 1

Total

Note 2

Net sales
Net sales to external
parties
Net sales &remittances between
segments

110,565

60,819171,385-

171,385

-

57

57

(57)

-

Total

110,565

60,877

171,443(57)

171,385

Segment profit

5,263

1,024

6,287

-

6,287

(Notes)1. Adjustments correspond to the elimination of transactions and remittances between segments.
2. Total segment profit matches operating profit recorded on the quarterly consolidated statements
of income.

II. FY3/22 3Q (April 1, 2021 – December 31, 2021)
1. Information for net sales and profit/loss for each reportable segment(millions of yen)Amountrecorded onquarterly
consolidated
statements ofincomeReportable Segments
Precious
metalsbusinesssegment

Adjustments
Food businesssegment

Note 1

Total

Note 2

Net sales
Net sales to external
parties
Net sales &remittances between
segments

142,794

60,839203,634-

203,634

-

57

57

(57)

-

Total

142,794

60,896

203,691(57)

203,634

Segment profit

8,286

2,176

10,463-

10,463(Notes) 1. Adjustments correspond to the elimination of transactions and remittances between segments.
2. Total segment profit matches operating profit recorded on the quarterly consolidated statements
of income.
2. Changes in reportable segments
As explained in “Changes in accounting policy,” the Company has applied the Accounting Standard for Revenue
Recognition, etc. from the beginning of the first quarter of the fiscal year ending March 31, 2022. As result, the methodof calculation for profit and loss in business segments has also changed.
Compared with the previous method, in the first nine months, the new method reduced sales in the precious metals
business segment by ¥6,476 million and increased segment profit by ¥47 million. In addition, sales in the foodbusiness segment were reduced by ¥7,399 million, but there was no impact on segment profit.

11