FY3/14 1-2Q Consolidated Financial Statements[J-GAAP]
November 11, 2013
Company name: Matsuda Sangyo Co., Ltd.
Exchanges listed on:
Tokyo Stock Exchange (First Section)
http://www.matsuda-sangyo.co.jp
Company code:
7456
URL:
Representative:
Yoshiaki Matuda, President and Representative Director
Inquiries:
Yoshitaka Tashiro, Director in Charge of IR
TEL: +81-3-5381-0728
Filing date of quarterly report:
November 11, 2013
Date to start dividends distribution:
December 5,2013
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. FY3/14 1-2Q consolidated results (April 1, 2013 – September 30, 2013)(Percentages are year-on-year changes)(1) Consolidated results
Net sales
Operating income
Ordinary income
Net income(millions of yen)

FY3/14 1-2Q

83,872

FY3/13 1-2Q

81,204(%) (millions of yen)

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

3.3

2,408

33.2

-16.7

1,808

-54.6

FY3/14 1-2Q: ¥2,463 million (95.5%)

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

(%)

2,664

32.8

1,736

30.3

2,006

-49.6

1,332

-45.9

FY3/13 1-2Q: ¥1,259 million (-53.4%)

Diluted net income per share
(yen)

(yen)

FY3/14 1-2Q

64.32

－

FY3/13 1-2Q

48.44

－

(2) Consolidated financial position
Total assets

Net assets

Shareholders’ equity ratio(millions of yen)(millions of yen)(%)

End-FY3/14 1-2Q

63,91946,40072.6

End-FY3/13

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

End-FY3/14 2Q: ¥46,400 million

End-FY3/13: ¥44,457 million

2. Dividends
1Q

Annual Dividends
3Q

2Q
(yen)

(yen)

FY3/13－12.00

FY3/14－12.00

FY3/14 (Projections)

4Q

(yen)

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

173,000

Operating income

Ordinary income

Net income
per share

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

(%)

(yen)

3.4

0.6

-1.4

-2.2

145.17

5,600

6,000

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

3,920

* 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 1-2Q

28,908,581 shares End-FY3/13

28,908,581 shares

End-FY3/14 1-2Q

2,008,964 shares End-FY3/13

1,851,230 shares

FY3/14 1-2Q

27,001,371 shares FY3/13 1-2Q

27,507,568 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 six months of the current fiscal year, the Japanese economy showed signs of a pickup, such as arecovery in earnings at exporters due to the correction in the value of the yen, and an increase in public spending,including earthquake rebuilding demand, supported by the government's monetary and fiscal policies. However, theoutlook for the economy remained uncertain due to the impact of rising prices from the weak yen and concerns
about a downturn in the global economy.
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 of the Group’s gold and silver products declined compared with the same
period a year earlier, amid signs that production conditions are becoming more polarized at key customers in thesemiconductor and electronic parts sectors. However, sales as a whole in the division increased year on year on
the back of higher sales of platinum metal products and electronic materials.
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 the price of silver recovered from photosensitive
materials.
As a result, net sales for the precious metals business segment totaled ¥61,990 million (up 2.4% year on year),and operating income was ¥2,090 million (up 36.6% year on year).
Food business segment
The food division continued to face a challenging operating environment due to an entrenched focus on lowerpriced food products by consumers and a rise in raw material prices caused mainly by the weaker yen. Against thisbackdrop, sales of vegetables and other agricultural products declined year on year due to a drop in sales volume,
but sales volume for seafood products and livestock products grew, supporting an increase in sales year on year.
As a result, net sales for the food business segment were ¥21,910 million (up 5.9% year on year), and operating
income was ¥318 million (up 14.4% year on year).
As a result of the above, for the first six months of the fiscal year ending March 31, 2014, consolidated net sales
were ¥83,872 million (up 3.3% year on year), operating income was ¥2,408 million (up 33.2% year on year),ordinary income was ¥2,664 million (up 32.8% year on year), and net income was ¥1,736 million (up 30.3% year onyear).

(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 ¥63,919 million, an increase of ¥783 million from the previous
fiscal year end. This mainly reflected increases in cash and deposits, and inventories, outweighing a decline innotes and accounts receivable – trade.
Liabilities
Total liabilities as of the end of the first six months were ¥17,518 million, a decrease of ¥1,156 million from theprevious fiscal year end. This mainly reflected a decline in accrued income taxes and other accounts payable,
which was greater than the increase in notes and accounts payable – trade.
Net assets
Net assets as of the end of the first six months were ¥46,400 million, an increase of ¥1,939 million from theprevious fiscal year end. This primarily reflected an increase in profits generated during the six months underreview.

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 ¥9,701 million, an increase of ¥1,119 million from the previous fiscal year end.
Cash flows from operating activities
Operating activities generated net cash of ¥1,752 million. This mainly reflected the difference between the increase
in income before income taxes on the one hand and the corresponding increase in income taxes paid, thedecrease in notes and accounts receivable－trade, and the increase in inventories on the other. Compared with thesame period in the previous fiscal year, when operating activities used net cash of ¥145 million, net cash used inoperating activities increased by ¥1,897 million.
Cash flows from investing activities
Investing activities used net cash of ¥460 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 ¥1,301 million, net cash used ininvesting activities decreased by ¥840 million.
Cash flows from financing activities
Financing activities used net cash of ¥419 million. This was mainly due to dividend payment. Compared with thesame period in the previous fiscal year, when financing activities used net cash of ¥1,663 million, net cash used infinancing activities decreased by ¥1,244 million.

(3) Qualitative information on consolidated earnings projections
The Group has revised its consolidated earnings projections for FY3/14, which were announced on May 13, 2013,
in order to factor in the weaker-than-expected results for the first six months of the fiscal year.
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

175,000

6,200

6,500

4,140

153.26173,000-2,000-1.1
167,263

5,600
-600
-9.7
5,568

6,000
-500
-7.7
6,085

3,920
-220
-5.3
4,008

145.17-8.09-5.3
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 1-2Q
(As of September 30, 2013)

AssetsCurrent assets
Cash and deposits

8,587

9,701

Notes and accounts receivable – trade

18,813

17,743Merchandise and finished goods

8,596

9,249

174

239

5,729

5,839

595

541

Other accounts receivable

1,132

851

Others

1,750

1,666

-43

-39

45,33645,792Work in process
Raw materials and supplies
Deferred tax assets

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

5,809

5,955

Accumulated depreciation-3,512-3,654

Buildings and structures, net

2,296

2,300

Machinery and delivery equipment

4,929

5,093

-3,983-4,132

945

960

7,629

7,704

425

422

Accumulated depreciation

-306

-312

Leased assets, net

118

109

Construction in progress

2,248

2,293

Accumulated depreciation
Machinery and delivery equipment, net
Land
Leased assets

Others940

1,030

Accumulated depreciation

-622

-682

Others, net

317

347

13,557

13,716

Others329

267

Total intangible fixed assets

329

267

Investment securities

2,588

2,818

Deferred tax assets

Total property, plant and equipment
Intangible fixed assets

Investments and other assets

177

132

Others

1,424

1,396

Allowance for doubtful accounts

-277

-203

Total investments and other assets

3,913

4,143

Total fixed assets

17,80018,126

Total assets

63,136

63,9194

(millions of yen)
FY3/14 1-2Q
(As of September 30, 2013)

End-FY3/13(As of March 31, 2013)
Liabilities
Current liabilities
Notes and accounts payable – trade

7,885

8,086

Short-term loans payable

721

1,244

Current portion of long-term loans payable

714

645

Lease obligations

54

49

Accrued income taxes

1,315

867

Reserve for bonuses

615

707

Other accounts payable

1,169

768

Others

2,867

2,152

Total current liabilities

15,343

14,522

Fixed liabilities
Long-term loans payable

2,467

2,149

Lease obligations

64

59

Reserve for retirement benefits

230

185

Reserve for directors’ retirement benefits

539

562

Others

30

39

3,331

2,996

18,675

17,518

3,559

3,559

Total fixed liabilities
Total liabilities
Net assets
Shareholders’ equity
Common stock
Capital surplus

4,008

4,008

Retained earnings

38,76640,178Treasury stock-2,027-2,226

Total shareholders’ equity

44,30645,520

Valuation difference on available-for-salesecurities

192

230

Deferred gains or losses on hedges

-22

137

Foreign currency translation adjustments

-19

511

Total accumulated other comprehensive income

Accumulated other comprehensive income

151

880

Minority interests

20

Total net assets

44,46046,40063,136

63,919Total liabilities and net assets5(2) Quarterly consolidated statements of income and comprehensive income[Quarterly consolidated statements of income](millions of yen)
FY3/13 1-2Q
(April 1, 2012 –September 30, 2012)

FY3/14 1-2Q
(April 1, 2013 –September 30, 2013)

Net sales

81,204

83,872

Cost of sales

73,48475,751Gross profit

7,719

8,121

Selling, general, and administrative expenses

5,910

5,712

Operating income

1,808

2,408

Interest income

1

3

Dividends income

1110

Equity in earnings of affiliates

301

120

Purchase discounts

13

10

House rent income

3130Commission income

1174

Others37

18

Total non-operating income

398

368

Interest expenses

22

20

Foreign exchange losses

108

46

Cost of lease revenue

32

32

Others37

13

Total non-operating expenses

201

112

Ordinary income

2,006

2,664

Income before income taxes

2,006

2,664

Income taxes – current

731

882

Income taxes – deferred

-58

48

Total income taxes

673

930

1,332

1,733

－

-2

1,332

1,736

Non-operating income

Non-operating expenses

Income before minority interests
Minority interests in loss
Net income

6[Quarterly consolidated statements of comprehensive income](millions of yen)
FY3/13 1-2Q
(April 1, 2012 –September 30, 2012)
Income before minority interests

FY3/14 1-2Q
(April 1, 2013 –September 30, 2013)

1,332

1,733

Valuation difference on available-for-salesecurities

-28

38

Deferred gains or losses on hedges

Other comprehensive income

-120

160

Foreign currency translation adjustments

63

417

Share of other comprehensive income ofaffiliates accounted for using equity method

12

113

Total other comprehensive income

-72

729

1,259

2,463

Comprehensive income attributable to ownersof the parent

1,259

2,465

Comprehensive income attributable to minority
interests－-2Comprehensive income
Comprehensive income attributable to7(3) Quarterly consolidated statements of cash flows(millions of yen)
FY3/13 1-2Q
(April 1, 2012 –September 30,
2012)

FY3/14 1-2Q
(April 1, 2013 –September 30,
2013)

Cash flows from operating activities
Income before income taxes

2,006

2,664

Depreciation and other amortization

560

484

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

110

-77

Change in allowance for bonuses (‘-’ means decrease)89

92

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

-5

-46

Change in allowance for directors’ retirement bonuses (‘-’ means
decrease)22

22Interest and dividends income

-13

-13

Interest expense

22

20

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

-301

-120

Change in notes and accounts receivable – trade(‘-’ means increase)

1,758

1,110

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

-492

264

Change in inventories (‘-’ means increase)-1,305-600

Change in accounts payable – trade (‘-’ means decrease)-1,09839

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

645

-392

Others-655-459

Subtotal

1,343

2,989

71

81

Interest and dividends received
Interest paid

-22

-20

-1,537-1,297

-145

1,752

-1,252-393

9－Purchase of intangible fixed assets

-45

-39

Purchase of investment securities-4-4

Income taxes paid
Cash flows from operating activities
Cash flows from investing activities
Purchase of property, plant and equipment
Proceeds from sale of property, plant and equipment

Sale of investment securities

31－

Others-39-22-1,301-460

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

-690

523

Repayment of long-term loans payable

-349

-387

Purchase of treasury stock

-255

-198

Dividends paid

-331

-324

OthersCash flows from financing activities
Effect of exchange rate change on cash and cash equivalents

-37

-32

-1,663

-419

49

247

Change in cash and cash equivalents (‘-’ means decrease)-3,061

1,119

Cash and cash equivalents at beginning of period

9,948

8,582

Cash and cash equivalents at end of period

6,886

9,701

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 1-2Q (April 1, 2013 – September 30, 2013)
There is nothing to report.

(Segment Information, etc.)
I. 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.

II. FY3/14 1-2Q (April 1, 2013 – September 30, 2013)
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

61,98821,884

83,872―

83,872

2

26

29

-29

―

Total

61,99021,91083,901-29

83,872

Segment income

2,090

318

2,408

―

2,408

(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