FY3/14 1-3Q Consolidated Financial Statements[J-GAAP]
February 12, 2014
Company name: Matsuda Sangyo Co., Ltd.
Exchanges listed on:
Tokyo Stock Exchange (First Section)
Company code:
7456
URL:
http://www.matsuda-sangyo.co.jp
Representative:
Yoshiaki Matsuda, President and Representative Director
Inquiries:
Yoshitaka Tashiro, Director in Charge of IR
TEL: +81-3-5381-0728
Filing date of quarterly report:
February 14, 2014–
Date to start dividends distribution:
No
Supplementary quarterly materials prepared:No
Quarterly results information meeting held:(Figures are rounded down to the nearest million yen)

1. FY3/14 1-3Q consolidated results (April 1, 2013 – December 31, 2013)(Percentages are year-on-year changes)(1) Consolidated results
Net sales
Operating income
Ordinary income
Net income(millions of yen)

FY3/14 1-3Q

125,611

FY3/13 1-3Q

124,133(%) (millions of yen)

(Note) Comprehensive income:(%) (millions of yen)

1.2

3,585

-12.7

-15.0

4,108

-28.3

FY3/14 1-3Q: ¥3,486 million (14.1%)

Net income per share(%) (millions of yen)

(%)

4,050

-10.5

2,657

-11.4

4,524

-22.7

2,998

-15.9

FY3/13 1-3Q: ¥3,056 million (-10.3%)

Diluted net income per share
(yen)

(yen)

FY3/14 1-3Q

98.64

－

FY3/13 1-3Q

109.29－(2) Consolidated financial position
Total assets

Shareholders’ equity ratio

Net assets(millions of yen)(millions of yen)(%)

End-FY3/14 1-3Q

65,77846,902

71.3

End-FY3/13

63,13644,46070.4(Reference) Shareholders’ equity:

End-FY3/14 3Q: ¥46,901 million

End-FY3/13: ¥44,457 million

2. Dividends
1Q

Annual Dividends
3Q

2Q
(yen)

(yen)

4Q

(yen)

FY3/13

－

12.00

－

FY3/14

－

12.00

－

FY3/14 (Projections)

Annual
(yen)

(yen)

12.00

24.00

12.00

24.00

(Note) Revisions to the most recently announced projections of dividends: No

3. Consolidated earnings projections for FY3/14 (April 1, 2013 – March 31, 2014)(Percentages are year-on-year changes)

Net sales(millions of yen)

FY3/14

166,000

Operating income(%) (millions of yen)

-0.8

Ordinary income(%) (millions of yen)

4,500 -19.2

5,000(%) (millions of yen)

-17.8

(Note) Revisions to the most recently announced projections of consolidated earnings: Yes

Net income
per share

Net income
3,320

(%)

(yen)

-17.2

123.24

* Notes(1) Changes in significant subsidiaries during the period (changes in specified subsidiaries in accordance withchanges in the 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: No
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 stock)2) Number of treasury stock3) Average number of shares
during the period

End-FY3/14 1-3Q

28,908,581 shares End-FY3/13

28,908,581 shares

End-FY3/14 1-3Q

2,151,290 shares End-FY3/13

1,851,230 shares

FY3/14 1-3Q

26,937,303 shares FY3/13 1-3Q

27,433,981 shares

Presentation of implementation status for quarterly review procedures
The quarterly review procedure based on the Financial Instruments and Exchange Act does not apply to this report. At the time of
disclosure of this report, review procedures for quarterly financial statements pursuant to the Financial Instruments and Exchange
Act had not been completed.

Notes on appropriate use of earnings projections and other special remarks
Earnings projections and other forward-looking statements in this document are based on reasonable assumptions andinformation available to the Company at the time of release. Actual results may differ materially from forward-looking statements
due to a number of factors. For more information about earnings projections assumptions and notes regarding the use of
earnings projections, please refer to “1. Qualitative information on consolidated results during the period, (3) Qualitative
information on consolidated earnings projections” on page 3 of the attached documents.

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. Matters concerning summary information (notes) .......................................................................... 3(1) Changes in significant subsidiaries during the period................................................................................ 3

3. Quarterly consolidated financial statements ................................................................................... 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 ................................................................................ 9(Notes on premise of a going concern).............................................................................................................. 9(Notes on significant changes in the amount of shareholders' equity) ................................................................. 9(Segment Information, etc.) .............................................................................................................................. 9

1

1. Qualitative information on consolidated results during the period(1) Qualitative information on consolidated results
In the first nine months of the current fiscal year, the Japanese economy continued to recover at a moderate pace,supported by a pickup in exports due to the weak yen and a spike in demand ahead of the hike in consumption tax.
However, the global economy lacked strength and the outlook remained uncertain.
Under these circumstances, performance in the Matsuda Sangyo Group’s business segments was as follows.
Precious metals business segment
In the precious metals division, sales volume for electronic materials and platinum metal products increased,
supported by a moderate recovery in production at key customers in the semiconductor and electronic parts
sectors. However, sales as a whole in the division declined year on year due to weaker sales of gold and silver
products.
In the environmental division, the volume of industrial waste handled by the Group increased. However, sales inthe division declined year on year due to a fall in the volume and price of silver recovered from photosensitive
materials.
As a result, net sales for the precious metals business segment totaled ¥90,056 million (down 1.7% year onyear), and operating income was ¥2,940 million (down 18.5% year on year).
Food business segment
The food division continued to face a challenging operating environment due to sluggish consumer spending andthe rising cost of raw materials, partly due to the impact of the weak yen. Against this backdrop, sales volume for
seafood products and livestock products grew, supporting an increase in sales year on year. Sales of vegetables
and other agricultural products also increased, with higher prices offsetting the impact of a decline in volumes
compared with the previous fiscal year.
As a result, net sales for the food business segment were ¥35,598 million (up 9.2% year on year), and operating
income was ¥644 million (up 28.4% year on year).
As a result of the above, for the first nine months of the fiscal year ending March 31, 2014, consolidated net
sales were ¥125,611 million (up 1.2% year on year), operating income was ¥3,585 million (down 12.7% year onyear), ordinary income was ¥4,050 million (down 10.5% year on year), and net income was ¥2,657 million (down
11.4% year on year).

(2) Qualitative information on consolidated financial position(1) Assets, liabilities and net assets
Total assets
Total assets as of the end of the first nine months were ¥65,778 million, an increase of ¥2,642 million from theprevious fiscal year end. This mainly reflected increases in notes and accounts receivable – trade, and inventories,
outweighing a decline in cash and deposits.
Liabilities
Total liabilities as of the end of the first nine months were ¥18,875 million, an increase of ¥200 million from theprevious fiscal year end. This mainly reflected the increases in notes and accounts payable – trade and loans
payable, which was greater than the decreases in other accounts payable, accrued income taxes and reserve forbonuses.
Net assets
Net assets as of the end of the first nine months were ¥46,902 million, an increase of ¥2,441 million from theprevious fiscal year end. This primarily reflected an increase in profits generated during the nine months underreview.

2

(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 ¥5,188 million, a decrease of ¥3,394 million from the previous fiscal year end.
Cash flows from operating activities
Operating activities used net cash of ¥3,279 million. This mainly reflected the difference between the increase inincome before income taxes on the one hand and a corresponding increase in income taxes paid, an increase innotes and accounts receivable－trade, and an increase in inventories on the other. The increase in inventories was
related to stock building due to the startup of a new plant. Compared with the same period in the previous fiscal
year, when operating activities provided net cash of ¥698 million, cash generated by operating activities declined¥3,978 million.
Cash flows from investing activities
Investing activities used net cash of ¥543 million. This was mainly due to the purchase of property, plant andequipment related to the installation and upgrade of equipment at the Group’s plants. Compared with the same
period in the previous fiscal year, when investing activities used net cash of ¥1,543 million, net cash used ininvesting activities decreased by ¥1,000 million.
Cash flows from financing activities
Financing activities generated net cash of ¥205 million. This was mainly due to the increase in loans payable.
Compared with the same period in the previous fiscal year, when financing activities used net cash of ¥958 million,
net cash generated in financing activities increased by ¥1,163 million.

(3) Qualitative information on consolidated earnings projections
As shown in the table below, the Group has revised its consolidated earnings projections for FY3/14, which wereannounced on November 11, 2013, in order to factor in earnings performance for the first nine months of the fiscalyear.
We have made no change to our dividend forecast announced on May 13, 2013 (year-end dividend of ¥12 pershare).
Consolidated earnings projections for FY3/14 (April 1, 2013 – March 31, 2014)

Net sales
Previously announced
projection (A)Revised projection (B)Change (B-A)
Change (%)(Reference) FY3/13

OperatingincomeOrdinary
incomeNet income

Net income
per share

173,000

5,600

6,000

3,920

145.17

166,000-7,000-4.0
167,263

4,500-1,100
-19.6
5,568

5,000
-1,000
-16.7
6,085

3,320
-600
-15.3
4,008

123.24－－146.512. Matters concerning summary information (notes)(1) Changes in significant subsidiaries during the period
There is nothing to report.

33. Quarterly consolidated financial statements(1) Quarterly consolidated balance sheets(millions of yen)
End-FY3/13(As of March 31, 2013)

FY3/14 1-3Q
(As of December 31, 2013)

AssetsCurrent assets
Cash and deposits

8,587

5,188

Notes and accounts receivable – trade

18,813

20,214Merchandise and finished goods

8,596

12,381

174

256

5,729

5,941

Work in process
Raw materials and supplies
Deferred tax assets

595

317

Other accounts receivable

1,132

904

Others

1,750

2,464

-43

-46

45,33647,622

Allowance for doubtful accounts
Total current assets
Fixed assets
Property, plant and equipment
Buildings and structures

5,809

5,915

Accumulated depreciation-3,512-3,693

Buildings and structures, net

2,296

2,221

Machinery and delivery equipment

4,929

5,099

-3,983-4,208

945

891

7,629

7,684

425

420

Accumulated depreciation

-306

-328

Leased assets, net

118

92

Construction in progress

2,248

2,383

Accumulated depreciation
Machinery and delivery equipment, net
Land
Leased assets

Others940

1,022

Accumulated depreciation

-622

-706

Others, net

317

316

13,557

13,589Others329

220

Total intangible fixed assets

329

220

Investment securities

2,588

3,039

Deferred tax assets

Total property, plant and equipment
Intangible fixed assets

Investments and other assets

177

98

Others

1,424

1,412

Allowance for doubtful accounts

-277

-204

Total investments and other assets

3,913

4,346

Total fixed assets

17,80018,155

Total assets

63,136

65,7784

(millions of yen)
End-FY3/13(As of March 31, 2013)

FY3/14 1-3Q
(As of December 31, 2013)

Liabilities
Current liabilities
Notes and accounts payable – trade

7,885

8,494

Short-term loans payable

721

2,570

Current portion of long-term loans payable

714

624

Lease obligations

54

45

Accrued income taxes

1,315

262

Reserve for bonuses

615

313

Other accounts payable

1,169

837

Others

2,867

2,889

Total current liabilities

15,343

16,037

Fixed liabilities
Long-term loans payable

2,467

2,006

Lease obligations

64

46

Reserve for retirement benefits

230

159

Reserve for directors’ retirement benefits

539

573

Others

30

52

3,331

2,838

18,67518,875

Common stock

3,559

3,559

Capital surplus

4,008

4,008

Retained earnings

38,766

40,775

Treasury stock-2,027-2,426

Total shareholders’ equity

44,30645,917

Valuation difference on available-for-salesecurities

192

275

Deferred gains or losses on hedges

-22

264

Foreign currency translation adjustments

-19

443

Total accumulated other comprehensive income

Total fixed liabilities
Total liabilities
Net assets
Shareholders’ equity

Accumulated other comprehensive income

151

983

Minority interests2

1

Total net assets

44,46046,902

63,136

65,778

Total liabilities and net assets5(2) Quarterly consolidated statements of income and comprehensive income[Quarterly consolidated statements of income](millions of yen)
FY3/13 1-3Q
(April 1, 2012 –December 31, 2012)

FY3/14 1-3Q
(April 1, 2013 –December 31, 2013)

Net sales

124,133

125,611

Cost of sales

111,253

113,401

Gross profit

12,88012,210

Selling, general, and administrative expenses

8,771

8,625

Operating income

4,108

3,585

Interest income

43

Dividends income18

19

Equity in earnings of affiliates

379

274

Purchase discounts

19

13House rent income

46

45Commission income

3

187

Others54

25

Total non-operating income

526

569

Interest expenses

33

29

Foreign exchange losses

7

6

Cost of lease revenue

46

46

Others24

21

Total non-operating expenses

111

104

Ordinary income

4,524

4,050

Income before income taxes

4,524

4,050

Income taxes – current

1,395

1,148

Income taxes – deferred

Non-operating income

Non-operating expenses

129

248

Total income taxes

1,525

1,396

Income before minority interests

2,998

2,653

Minority interests in loss
Net income

6

－

-3

2,998

2,657

[Quarterly consolidated statements of comprehensive income](millions of yen)
FY3/13 1-3Q
(April 1, 2012 –December 31, 2012)
Income before minority interests

FY3/14 1-3Q
(April 1, 2013 –December 31, 2013)

2,998

2,653

Valuation difference on available-for-salesecurities

-10

83

Deferred gains or losses on hedges

-19

286

Foreign currency translation adjustments

90

354

Share of other comprehensive income ofaffiliates accounted for using equity method

-2

107

Total other comprehensive income

57

832

3,056

3,486

3,056

3,489

－

-3

Other comprehensive income

Comprehensive income
Comprehensive income attributable toComprehensive income attributable to ownersof the parent
Comprehensive income attributable to minority
interests7

(3) Quarterly consolidated statements of cash flows(millions of yen)
FY3/13 1-3Q
(April 1, 2012 –December 31,
2012)

FY3/14 1-3Q
(April 1, 2013 –December 31,
2013)

Cash flows from operating activities
Income before income taxes

4,524

4,050

Depreciation and other amortization

850

734

Change in allowance for doubtful accounts (‘-’ means decrease)

100

-69

Change in allowance for bonuses (‘-’ means decrease)

-314

-302

Change in allowance for retirement benefits (‘-’ means decrease)

-9

-72

Change in allowance for directors’ retirement bonuses (‘-’ means
decrease)

33

33Interest and dividends income

-23

-22

Interest expense

33

29

Equity in earnings or losses of affiliates (‘-’ means earnings)

-379

-274

Change in notes and accounts receivable – trade(‘-’ means increase)404-1,375

Change in other accounts receivable (‘-’ means increase)

435

217

Change in inventories (‘-’ means increase)-1,017-3,888Change in accounts payable – trade (‘-’ means decrease)-1,063476

Change in other accounts payable (‘-’ means decrease)

-288

-322

Others-363-375

Subtotal

2,921-1,16081

93Interest and dividends received
Interest paid
Income taxes paid
Cash flows from operating activities

-34

-29

-2,270-2,182698-3,279Cash flows from investing activities
Purchase of property, plant and equipment-1,484-455

Proceeds from sale of property, plant and equipment

10－

Purchase of intangible fixed assets

-47

-39

Purchase of investment securities-6-7

Sale of investment securities

31－

Others-46-41-1,543-543

Net change in short-term loans payable (‘-’ means decrease)

-93

1,849

Proceeds from long-term loans payable

800－

Repayment of long-term loans payable

-523

-550

Purchase of treasury stock

-425

-398

Dividends paid

-659

-647

Others-55-47

Cash flows from financing activities

-958

205

Cash flows from investing activities
Cash flows from financing activities

Effect of exchange rate change on cash and cash equivalents

64

223

Change in cash and cash equivalents (‘-’ means decrease)-1,738-3,394

Cash and cash equivalents at beginning of period

9,948

8,582

Cash and cash equivalents at end of period

8,209

5,188

8

(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)
FY3/14 1-3Q (April 1, 2013 – December 31, 2013)
There is nothing to report.

(Segment Information, etc.)
I. FY3/13 1-3Q (April 1, 2012 – December 31, 2012)
Sales and profits or losses by reportable segments

Reportable Segments
Precious
metalsbusinesssegment
Net sales(1) Net sales to external
parties(2) Intersegment sales
and transfers

Adjustments
Food businesssegment

Note 1

Total(millions of yen)Amountrecorded onquarterly
consolidated
statements ofincomeNote 2

91,58232,551

124,133―

124,133

3

35

39

-39

―

Total

91,58632,586

124,173-39

124,133

Segment income

3,606

502

4,108

―

4,108

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

II. FY3/14 1-3Q (April 1, 2013 – December 31, 2013)
Sales and profits or losses by reportable segments

Reportable Segments
Precious
metalsbusinesssegment
Net sales(1) Net sales to external
parties(2) Intersegment sales
and transfers

Adjustments
Food businesssegment

Note 1

Total(millions of yen)Amountrecorded onquarterly
consolidated
statements ofincomeNote 2

90,05235,558125,611―

125,611

3

40

43

-43

―

Total

90,05635,598125,654-43

125,611

Segment income

2,940

644

3,585

―

3,585

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

9