FY3/13 1-2Q
Q Consolidated Financial Statements[J-GAAP]
November 12, 2012
Company name: Matsuda Sangyo Co., Ltd.
Exchanges listed on:
Tokyo Stock Exchange (First Section)
Company code:
7456
URL:
http://www.matsuda
matsuda-sangyo.co.jp
Representative:
Yoshiaki Matuda, President and Representative Director
Inquiries:
Yoshitaka Tashiro, Director in Charge of IR
TEL: +81-3-5381
5381-0728
Filing date of quarterly report:
November 14, 2012
Date to start dividends distribution:
December 5, 2012
Supplementary quarterly materials prepared:
Yes
Quarterly results information meeting held:
Yes (for institutional investors and analysts)(Figures are rounded down to the nearest million yen)

1. FY3/13 1-2Q consolidated
solidated results (April 1, 201
2012 – September 30, 2012)(Percentages
ercentages are year-on-year changes)(1) Consolidated results
Net sales
Operating income
Ordinary income
Net income(millions of yen)(%) (millions of yen)(%) (millions of yen)(%) (millions of yen)(%)

FY3/13 1-2Q

81,204

-16.7

1,808

-54.6

2,006

-49.6
49.6

1,332

-45.9

FY3/12 1-2Q

97,524

7.5

3,980

39.0

3,984

39.0

2,465

44.7

(Note) Comprehensive income:

FY3/1
FY3/13 1-2Q: ¥1,259 million (-53.4%)

Net income per share

FY3/12 1-2Q: ¥2,701 million (71.4%)(

Diluted net income per share
(yen)

(yen)

FY3/13 1-2Q

48.44

－

FY3/12 1-2Q

87.90

－

(2) Consolidated financial position
Total assets

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

59,782

41,811

69.9

41,13867.0

End-FY3/13 1-2Q
End-FY3/12

61,363(Reference) Shareholders’ equity:

Shareholders’ equity ratio

End
End-FY3/13 1-2Q: ¥41,811 million

End-FY3/12: ¥41,138 million

2. Dividends
1Q

Annual Dividends
3Q

2Q
(yen)

(yen)

FY3/12－

12.00

FY3/13－12.00

FY3/13 (Projections)

4Q

(yen)

Annual
(yen)

(yen)

－

12.00

24.00

－

12.00

24.00

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

3. Consolidated earnings projections for FY3/1
FY3/13 (April 1, 2012 – March 31, 2013)(Percentages
ercentages are year-on-year
year
changes)

Net sales(millions of yen)

FY3/13

170,000

Operating income(%) (millions of yen)

-9.4

Ordinary income(%) (millions of yen)

4,200 -38.6

4,500(%) (millions of yen)

-36.0

(Note) Revisions to the most recently announc
announced projections of consolidated earnings: No

Net income
per share

Net income
2,76
760

(%)

(yen)

-34.4

100.78

* 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: Yes
2) Changes in accounting policies other than the above:No3) Changes in accounting estimates:
Yes
4) 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-FY3/13 1-2Q

28,908,581 shares End-FY3/12

28,908,581 shares

End-FY3/13 1-2Q

1,522,658 shares End-FY3/12

1,302,477 shares

FY3/13 1-2Q

27,507,568 shares FY3/12 1-2Q

28,045,602 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) ..............................................................................4(1) Changes in significant subsidiaries during the period ........................................................................................... 4(2) Application of special accounting treatment in preparing the quarterly consolidated financial statements............ 4(3) Changes in accounting policies, changes in accounting estimates and restatement of revisions ......................... 4

3. Quarterly consolidated financial statements .......................................................................................5(1) Quarterly consolidated balance sheets ................................................................................................................. 5(2) Quarterly consolidated statements of income and comprehensive income .......................................................... 7[Quarterly consolidated statements of income] .................................................................................................... 7[Quarterly consolidated statements of comprehensive income] ........................................................................... 8(3) Quarterly consolidated statements of cash flows .................................................................................................. 9(4) Notes on premise of a going concern ................................................................................................................. 10(5) Segment Information .......................................................................................................................................... 10(6) Notes in the event of significant fluctuations in shareholders’ equity .................................................................. 10

1

1. Qualitative information on consolidated results during the period(1) Qualitative information on consolidated results
In the first six months of the fiscal year ending March 31, 2013, conditions in the Japanese economy remained
difficult due to continued deflation, the persistently strong yen and falling production caused by weak exports,
against the backdrop of the fiscal debt crisis in Europe and a slowdown in China..
Under these circumstances, performance in the Matsuda Sangyo Group’s business segments was as follows.
Precious metals business segment
In the precious metals division, there were signs of an upturn after the damage caused by the flooding in Thailand,
but production declined at key customers in the semiconductor and electronics parts sectors. This led to a drop insales volume for the Group’s precious metal chemicals and other products. The volume of recovered precious
metals also fell year on year and bullion sales volume declined. As a result, sales in the precious metals division
declined year on year.
Sales in the environmental division also fell year on year, reflecting a decline in the volume of materials handled
following a temporary increase last year after the earthquake, and lower prices for silver.
As a result, net sales for the precious metals business segment totaled ¥60,539 million (down 21.2% year onyear), and operating income was ¥1,530 million (down 54.9% year on year).
Food business segment
The food business segment continued to face a difficult operating environment characterized by an entrenchedfocus on lower-priced products by consumers amid deflationary conditions. Against this backdrop, seafood productsales volume and sales increased year on year, but profitability deteriorated due to the impact of weaker market
prices and other factors. Sales of livestock products declined due to lower prices and weak sales volume, whilesales of agricultural products also fell, reflecting lower sales volume compared with a year earlier.
As a result, net sales for the food business segment were ¥20,691 million (down 0.0% year on year), andoperating income was ¥278 million (down 52.6% year on year).
As a result of the above, for the first six month of the fiscal year ending March 31, 2013, consolidated net sales
were ¥81,204 million (down 16.7% year on year), operating income was ¥1,808 million (down 54.6% year on year),ordinary income was ¥2,006 million (down 49.6% year on year), and net income was ¥1,332 million (down 45.9%
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 six months were ¥59,782 million, a decrease of ¥1,580 million from theprevious fiscal year end. This mainly reflected a decline in cash and deposits, and notes and accounts receivable –trade that outweighed increases in inventories, and property, plant and equipment.
Liabilities
Total liabilities as of the end of the first six months were ¥17,971 million, a decrease of ¥2,253 million from theprevious fiscal year end. This was mainly because of decreases in notes and accounts payable – trade, andrepayment of loans payable.
Net assets
Net assets as of the end of the first six months were ¥41,811 million, an increase of ¥673 million from the previous
fiscal year end. This primarily reflected an increase in shareholders’ equity from profits generated during the six
months under review.

2(2) Cash flows status
As of the end of the first six months under review, the balance of cash and cash equivalents (hereafter, “cash”)
stood at ¥6,886 million, a decrease of ¥3,061 million from the previous fiscal year end.
Cash flows from operating activities
Operating activities used net cash of ¥145 million. This mainly reflected the difference between the increase inincome before income taxes on the one hand and the corresponding increase in income taxes paid and thedecrease in notes and accounts payable－trade on the other. Compared with the same period in the previous fiscal
year, when operating activities provided net cash of ¥1,423 million, net cash used in operating activities decreasedby ¥1,568 million.
Cash flows from investing activities
Investing activities used net cash of ¥1,301 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 ¥367 million, net cash used in investing
activities increased by ¥934 million.
Cash flows from financing activities
Financing activities used net cash of ¥1,663 million. This was mainly due to dividend payments and repayment ofshort-term and long-term loans payable. Compared with the same period in the previous fiscal year, when financing
activities used net cash of ¥748 million, net cash used in financing activities increased by ¥915 million.

(3) Qualitative information on consolidated earnings projections
In the first six months of the current fiscal year, sales of precious metal bullion and precious metal chemical
products declined due to a drop in production in the semiconductor and electronic parts sectors. However, we
forecast an upturn in sales of these products in the second half of the fiscal year. In light of these trends, werevised our consolidated earnings projections for FY3/13, which were announced on May 14, 2012. For moredetails regarding the earnings projections, please refer to “Revisions to Earnings Projections“ announced on
November 5, 2012.

3

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

(2) Application of special accounting treatment in preparing the quarterly consolidated financial
statements
There is nothing to report.

(3) Changes in accounting policies, changes in accounting estimates and restatement of revisions(Changes in accounting policies that may be difficult to distinguish from changes in accounting estimates)
Following revisions to the Corporation Tax Act, the Company and its domestic consolidated subsidiaries haveadopted a new depreciation method for property, plant and equipment purchased after April 1, 2012. The change,
which is based on the revised Corporation Tax Act, is effective from the first three months under review.
This change had only a limited impact on income and losses and segment information in the first six months
under review.

43. Quarterly consolidated financial statements(1) Quarterly consolidated balance sheets(millions of yen)
End-FY3/12(As of March 31, 2012)

End-FY3/13 1-2Q
(As of September 30, 2012)

AssetsCurrent assets
Cash and deposits

9,952

6,891

Notes and accounts receivable – trade

19,534

17,779Merchandise and finished goods

7,015

8,781

Work in process
Raw materials and supplies
Deferred tax assets

230

345

5,996

5,444

622

737

Other accounts receivable

1,219

1,705

Others

1,159

1,608

Allowance for doubtful accounts
Total current assets

-17

-49

45,71343,244

Fixed assets
Property, plant and equipment
Buildings and structures

5,662

5,727

Accumulated depreciation-3,256-3,393

Buildings and structures, net

2,405

2,334

Machinery and delivery equipment
Accumulated depreciation
Machinery and delivery equipment, net
Land
Leased assets

4,576

4,709

-3,666-3,820

909

889

7,540

7,543

360

403

Accumulated depreciation

-233

-270

Leased assets, net

127

132

Construction in progress

287

1,144

Others815

859

Accumulated depreciation

-516

-567

Others, net

299

292

11,56912,336

Others622

496

Total intangible fixed assets

622

496

2,180

2,358

Total property, plant and equipment
Intangible fixed assets

Investments and other assets
Investment securities
Deferred tax assets

203

237

Others

1,272

1,387

Allowance for doubtful accounts

-199

-277

Total investments and other assets

3,457

3,706

Total fixed assets

15,64916,538

Total assets

61,36359,7825

(millions of yen)
End-FY3/12(As of March 31, 2012)

End-FY3/13 1-2Q
(As of September 30, 2012)

Liabilities
Current liabilities
Notes and accounts payable – trade

8,820

7,734

Short-term loans payable

1,015

334

Current portion of long-term loans payable

718

700

Lease obligations

64

63

Accrued income taxes

1,589

742

Reserve for bonuses

624

713

Other accounts payable

1,239

1,733

Others

2,913

3,016

Total current liabilities

16,98515,039Fixed liabilities
Long-term loans payable

2,409

2,078

Lease obligations

63

68

Reserve for retirement benefits

252

247

Reserve for directors’ retirement benefits

494

517

Others

18

19

3,238

2,931

20,224

17,971

Common stock

3,559

3,559

Capital surplus

4,008

4,008

Retained earnings

35,41736,419Total fixed liabilities
Total liabilities
Net assets
Shareholders’ equity

Treasury stock-1,401-1,657

Total shareholders’ equity

41,58442,330

Accumulated other comprehensive income
Valuation difference on available-for-salesecurities
Deferred gains or losses on hedges

129

101

8

-112

Foreign currency translation adjustments

-583

-507

Total accumulated other comprehensive income
Total net assets
Total liabilities and net assets

6

-445

-518

41,13841,811

61,36359,782

(2) Quarterly consolidated statements of income and comprehensive income[Quarterly consolidated statements of income](millions of yen)
FY3/12 1-2Q
(April 1, 2011 –September 30, 2011)

FY3/13 1-2Q
(April 1, 2012 –September 30, 2012)

Net sales
Cost of sales

97,52487,923

81,20473,484Gross profit

9,601

7,719

Selling, general, and administrative expenses

5,620

5,910

Operating income

3,980

1,808

Non-operating income
Interest income

01

Dividends income

1011

Equity in earnings of affiliates

265

301

Purchase discounts

16

13

House rent income

30

31

Others18

39

Total non-operating income

342

398

Non-operating expenses
Interest expenses

25

22

Foreign exchange losses

253

108

Cost of lease revenue

26

32

Others33

37

Total non-operating expenses

338

201

Ordinary income

3,984

2,006

Income before income taxes

3,984

2,006

Income taxes – current
Income taxes – deferred

1,517
0

731
-58

Total income taxes

1,518

673

Income before minority interests

2,465

1,332

Net income

2,465

1,332

7

[Quarterly consolidated statements of comprehensive income](millions of yen)
FY3/12 1-2Q
(April 1, 2011 –September 30, 2011)
Income before minority interests
Other comprehensive income

FY3/13 1-2Q
(April 1, 2012 –September 30, 2012)

2,465

1,332

Valuation difference on available-for-salesecurities

-19

-28

Deferred gains or losses on hedges

268

-120

Foreign currency translation adjustments-7

63

Share of other comprehensive income ofaffiliates accounted for using equity method

-5

12

236

-72

2,701

1,259

2,701

1,259

－

－

Total other comprehensive income
Comprehensive income
Comprehensive income attributable toComprehensive income attributable to ownersof the parent
Comprehensive income attributable to minority
interests8

(3) Quarterly consolidated statements of cash flows(millions of yen)
FY3/12 1-2Q
(April 1, 2011 –September 30,
2011)
Cash flows from operating activities
Income before income taxes

FY3/13 1-2Q
(April 1, 2012 –September 30,
2012)

3,984

2,006

Depreciation and other amortization

548

560

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

-74

110

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

130

89

Change in allowance for retirement benefits (‘-’ means decrease)
Change in allowance for directors’ retirement bonuses (‘-’ means
decrease)
Interest and dividends income

-13

-5

19

22

-11

-13

Interest expense

25

22

-265

-301

-273

1,758

Equity in earnings or losses of affiliates (‘-’ means earnings)
Change in notes and accounts receivable – trade(‘-’ means increase)
Change in other accounts receivable (‘-’ means increase)
Change in inventory (‘-’ means increase)
Change in notes and accounts payable – trade (‘-’ means
decrease)
Change in other accounts payable (‘-’ means decrease)

1,124

-492

-435

-1,305-453-1,098-1,115645

Others-413-655

Subtotal

2,776

1,343

11
-23

71
-22

Income taxes paid

-1,341-1,537

Cash flows from operating activities

1,423

-145

-459

-1,252

Interest and dividends received
Interest paid

Cash flows from investing activities
Purchase of property, plant and equipment
Proceeds from sale of property, plant and equipment

68

9

Purchase of intangible fixed assets

-8

-45

Purchase of investment securities-4-4

Proceeds from sale of investment securities

－
36

31
-39

-367

-1,301OthersCash flows from investing activities
Cash flows from financing activities
Net change in short-term loans payable (‘-’ means decrease)

465

-690

Repayment of long-term loans payable

-649

-349

Purchase of treasury stock

-186

-255

Dividends paid

-337

-331

Others-40-37

Cash flows from financing activities-748-1,663849

Effect of exchange rate change on cash and cash equivalents
Change in cash and cash equivalents (‘-’ means decrease)316-3,061

Cash and cash equivalents at beginning of period

6,605

9,948

Cash and cash equivalents at end of period

6,921

6,886

9

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

(5) Segment Information
Segment information
I. FY3/12 1-2Q (April 1, 2011 – September 30, 2011)
Sales and profits or losses by reportable segments

Reportable Segments
Precious
metalsbusinesssegment

Adjustments
Food businesssegment

Note 1

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

Net sales(1) Net sales to external
parties(2) Intersegment sales
and transfers

76,85920,664

97,524―

97,524

2

31

33

-33

―

Total

76,862

20,69597,558-33

97,524

Segment income

3,393

587

3,980

―

3,980

(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. FY3/13 1-2Q (April 1, 2012 – September 30, 2012)
Sales and profits or losses by reportable segments

Reportable Segments
Precious
metalsbusinesssegment

Adjustments
Food businesssegment

Note 1

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

Net sales(1) Net sales to external
parties(2) Intersegment sales
and transfers

60,537

20,667

81,204―

81,204

2

24

26

-26

―

Total

60,53920,691

81,231-26

81,204

Segment income

1,530

278

1,808

―

1,808

(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.

(6) Notes in the event of significant fluctuations in shareholders’ equity
There is nothing to report.

10