FY3/21 1Q 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:
Quarterly results information meeting held:

August 7, 2020
Tokyo Stock Exchange (First Section)
https://www.matsuda-sangyo.co.jp

Exchanges listed on:
URL:
Yoshiaki Matsuda
Yoshinori Tanaka

TEL:+81-3-5381-0728

August 7, 2020
－
None
None
(Figures are rounded down to the nearest million yen)

1. FY3/21 1Q consolidated results (April 1, 2020 – June 30, 2020)(1) Consolidated results
Net sales(millions of yen)

(Percentages are year-on-year changes)

Operating profit(%) (millions of yen)

Profit attributable toowners of parent

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

FY3/21 1Q

53,540

7.6

1,634

2.8

1,684

3.9

1,124

2.3

FY3/20 1Q

49,774

(6.0)

1,590

25.7

1,620

18.2

1,098

22.2

(Note) Comprehensive income:

FY3/21 1Q: ¥856 million (-1.3%)

Earnings per share

FY3/20 1Q: ¥867 million (+18.6%)

Diluted earnings per share
(yen)

(yen)

FY3/21 1Q

42.70

－

FY3/20 1Q

41.73

－

(2) Consolidated financial position
Total assets

Shareholders’ equity ratio

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

End-FY3/21 1Q

94,24360,87564.5

End-FY3/20

94,50960,527

63.9(Reference) Shareholders’ equity:

End-FY3/21 1Q: ¥60,775 million

End-FY3/20: ¥60,428 million

2. Dividends
1Q

Annual dividends
3Q

2Q
(yen)

FY3/20－FY3/21－(yen)

FY3/21 (Projections)

4Q

(yen)

Annual
(yen)

(yen)

17.00

－

17.00

34.00

18.00

－

18.00

36.00

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

3. Consolidated earnings projections for FY3/21 (April 1, 2020 – March 31, 2021)(Percentages are year-on-year changes)

Net sales(millions of yen)

1H FY3/21
FY3/21106,000
206,000

Operating profit(%) (millions of yen)

4.3
(2.4)

(%) (millions of yen)

3,200 (0.3)
5,500 (11.9)

Profit attributable to Earnings perowners of parent
share

Ordinary profit(%) (millions of yen)

3,300
1.4
5,700 (10.7)(Note) Revisions to the most recently announced projections of consolidated earnings: Yes

2,220
3,840

(%)

(yen)

(2.8)
(5.1)

84.44
146.07

* 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: 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 shares)
2) Number of treasury shares
3) Average number of shares
during the period

End-FY3/21 1Q

28,908,581 shares End-FY3/20

28,908,581 shares

End-FY3/21 1Q

2,620,087 shares End-FY3/20

2,575,930 shares

FY3/21 1Q

26,324,546 shares FY3/20 1Q

26,332,729 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. For more information about earnings projections, please refer to “1. Qualitative information on
consolidated results during the period, (3) Qualitative information on consolidated earnings projections” on page 3 ofthe 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. 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(Segment information, etc.) .................................................................................................................................. 10

1

1. Qualitative information on consolidated results during the period(1) Qualitative information on consolidated results
In the first three months of the fiscal year ending March 31, 2021, the Japanese economy faced extremely challenging
conditions, including a slowdown in consumer spending and a slump in corporate activity caused by the outbreak ofcoronavirus disease (COVID-19). The outlook also remained uncertain due to factors such as concerns about the
COVID-19 outbreak and trade tensions between the US and China.
Against this backdrop, the Matsuda Sangyo Group (the Group) worked to prevent the spread of infection byprioritizing the health and safety of employees and all other people associated with the Group, while also working to
expand the Group’s businesses to support sustained growth and increase corporate value. The precious metals
business segment stepped up marketing activities and actively used production sites in Japan and overseas tosecure 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 fulfilled its responsibility ofensuring stable supplies amid concerns about supply chain disruption caused by the COVID-19 outbreak and worked
to expand sales volume by developing and providing products that address customer needs.
As a result of the above, for the first three months of the fiscal year ending March 31, 2021, consolidated net sales
were ¥53,540 million (up 7.6% year on year), operating profit was ¥1,634 million (up 2.8% year on year), ordinary
profit was ¥1,684 million (up 3.9% year on year), and profit attributable to owners of parent was ¥1,124 million (up2.3% year on year).
Performance in the Matsuda Sangyo Group’s business segments was as follows.
Precious metals business segment
The precious metals business segment faced a challenging environment overall. Key customers in the electronics
sector halted or cut back production due to limits on activity or voluntary measures to prevent the spread of COVID19, leading to declines in output of electronic components and devices. In that business environment, the volume of
precious metal recycling was flat year on year and the amount of industrial waste treated on an outsourcing basis
declined. However, sales and operating profit increased compared with the same period of the previous fiscal year,
reflecting an increase in sales volume for gold products, as well as higher precious metals prices.
As a result, net sales for the precious metals business segment totaled ¥33,797 million (up 16.5% year on year),and operating profit was ¥1,334 million (up 22.0% year on year).
Food business segment
The food business segment faced difficult conditions overall, with production activity varying widely at key customers
in the food processing sector. In Japan, calls to remain at home during the state of emergency spurred some stayat-home demand, but demand declined from commercial-use customers and from manufacturers of food souvenirs.
Against that backdrop, sales volume for agricultural products increased, but sales in the segment declined year on
year, reflecting lower sales volumes for seafood products and livestock products. In addition to the drop in sales,
storage fees and other costs increased, resulting in a decline in operating profit compared with the same period of
the previous fiscal year.
As a result, net sales for the food business segment were ¥19,762 million (down 4.9% year on year), and operating
profit was ¥299 million (down 39.6% 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 three months were ¥94,243 million, a decrease of ¥265 million from the previous
fiscal year end. This mainly reflected the difference between an increase for notes and accounts receivable – tradeand decreases for cash and deposits and inventories.
Liabilities
Total liabilities as of the end of the first three months were ¥33,368 million, a decrease of ¥613 million from theprevious fiscal year end. This primarily reflected the difference between an increase for accounts payable – tradeand decreases for income taxes payable and other current liabilities.
Net assets
Net assets as of the end of the first three months were ¥60,875 million, an increase of ¥347 million from the previous
fiscal year end. This mainly reflected the difference between an increase for retained earnings, which outweighed
year-end cash dividends paid of ¥447 million, and a decrease for foreign currency translation adjustment.

2(2) Cash flows status
As of the end of the first three months under review, the balance of cash and cash equivalents (hereafter, “cash”)
stood at ¥10,627 million, a decrease of ¥1,024 million from the previous fiscal year end.
Cash flows from operating activities
Operating activities provided net cash of ¥347 million. This mainly reflected the difference between cash provided
from profit before income taxes, decrease in inventories and increase in accounts payable – trade on the one hand,and cash used for increase in notes and accounts receivable – trade and income taxes paid on the other. Comparedwith the same period in the previous fiscal year, when operating activities used net cash of ¥2,180 million, cash fromoperating activities increased by ¥2,527 million.
Cash flows from investing activities
Investing activities used net cash of ¥1,218 million. This was mainly due to the purchase of property, plant andequipment related to the installation of equipment at the Group’s plants. Compared with the same period in theprevious fiscal year, when investing activities used net cash of ¥666 million, cash used by investing activities
increased by ¥552 million.
Cash flows from financing activities
Financing activities provided net cash of ¥87 million. This mainly reflected cash provided by net increase in shortterm and long-term loans payable, which outweighed cash used for year-end cash dividends paid. Compared withthe same period in the previous fiscal year, when financing activities provided net cash of ¥2,935 million, cash fromfinancing activities decreased by ¥2,847 million.

(3) Qualitative information on consolidated earnings projections
For details about the Group’s earnings projections, please refer to the press release issued on August 7, 2020,“Disclosure of Earnings Projections.”3

2. Quarterly consolidated financial statements and related notes(1) Quarterly consolidated balance sheets(millions of yen)
End-FY3/20(As of March 31, 2020)

End-FY3/21 1Q(As of June 30, 2020)

AssetsCurrent assets
Cash and deposits

11,652

10,627

Notes and accounts receivable – trade

19,93622,508Merchandise and finished goods

23,13521,884Work in process

423

429

Raw materials and supplies

8,062

8,264

Others

5,257

4,335

(68)

(28)

68,39868,021

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

11,238

11,247

Accumulated depreciation(5,450)(5,507)

Buildings and structures, net

5,788

5,740

Machinery, equipment and vehicles

9,237

9,248

Accumulated depreciation(7,589)(7,658)

Machinery, equipment and vehicles, net

1,647

1,589

Land

8,938

8,892

Leased assets

1,826

1,864

Accumulated depreciation

(771)

(841)

Leased assets, net

1,054

1,023

Construction in progress

1,124

1,808

Others

1,414

1,408

(1,089)(1,100)324

308

18,87819,361Others579

568

Total intangible assets

579

568

Investment securities

4,406

4,434

Deferred tax assets

665

278

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

Investments and other assets

Others

1,597

1,596

Allowance for doubtful accounts

(18)

(17)

Total investments and other assets

6,651

6,292

Total non-current assets

26,11026,222

Total assets

94,50994,243

4

(millions of yen)
End-FY3/20(As of March 31, 2020)

End-FY3/21 1Q(As of June 30, 2020)

Liabilities
Current liabilities
Accounts payable – trade

7,898

9,480

Short-term loans payable

7,023

6,565

Current portion of long-term loans payable

1,268

1,623

Lease obligations

365

352

Income taxes payable

1,398

258

Provision for bonuses

918

534

Others

5,297

4,023

Total current liabilities

24,16822,837

6,040

6,868

733

702

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

90

Provision for directors’ retirement benefits

670

659

Provision for executive officers’ retirement
benefits

11

12

2,301

2,261

47

25

9,813

10,531

33,98233,368

3,559

3,559

Net defined benefit liability
OthersTotal non-current liabilities
Total liabilities
Net assets
Shareholders’ equity
Common stock
Capital surplus

4,008

4,008

Retained earnings

56,06956,745

Treasury shares(3,010)(3,071)

Total shareholders’ equity

60,626

61,242

Valuation difference on available-for-salesecurities

423

449

Deferred gains or losses on hedges

(164)

(83)

Foreign currency translation adjustment

990

536

(1,447)(1,369)

(197)

(466)

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

98

99

60,52760,87594,50994,243

(2) Quarterly consolidated statements of income and comprehensive income[Quarterly consolidated statements of income](millions of yen)
FY3/20 1Q(April 1, 2019 –June 30, 2019)

FY3/21 1Q(April 1, 2020 –June 30, 2020)

Net sales

49,77453,540

Cost of sales

44,32947,978Gross profit

5,444

5,561

Selling, general, and administrative expenses

3,854

3,926

Operating profit

1,590

1,634

Interest income

1

1

Dividend income

11

11

Share of profit of entities accounted for using
equity method

1

3

Purchase discounts

22

Insurance claim income

190Compensation income

34-

Foreign exchange gains

Non-operating income-

53

Others108

Total non-operating income

82

82Interest expenses

15

19

Foreign exchange losses

25-

Loss on retirement of non-current assets

3

9

Others63

Total non-operating expenses

51

32

Ordinary profit

1,620

1,684

Profit before income taxes

Non-operating expenses

1,620

1,684

Income taxes – current

311

236

Income taxes – deferred

201

321

Total income taxes

513

558

1,107

1,126

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

6

8

2

1,098

1,124

[Quarterly consolidated statements of comprehensive income](millions of yen)
FY3/20 1Q(April 1, 2019 –June 30, 2019)
ProfitFY3/21 1Q(April 1, 2020 –June 30, 2020)
1,107

1,126

Valuation difference on available-for-salesecurities

(82)

25

Deferred gains or losses on hedges

(265)

87

Foreign currency translation adjustment

124

(447)

Remeasurements of defined benefit plans

378

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

(20)

(14)

Total other comprehensive income (loss)

(240)

(270)

867

856

Comprehensive income attributable to ownersof parent

856

855

Comprehensive income attributable to noncontrolling interests

100

Other comprehensive income

Comprehensive income
Comprehensive income attributable to7(3) Quarterly consolidated statements of cash flows(millions of yen)
FY3/20 1Q(April 1, 2019 –June 30, 2019)

FY3/21 1Q(April 1, 2020 –June 30, 2020)

Cash flows from operating activities
Profit before income taxes

1,620

1,684

Depreciation

356

411

Increase (decrease) in allowance for doubtful accounts

13

(41)

(322)

(383)

Increase (decrease) in net defined benefit liability

572

Increase (decrease) in provision for directors’ retirement benefits

16

10

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

1

1

Interest and dividend income

(13)

(13)

Interest expenses

15

19

Share of (profit) loss of entities accounted for using equity method

(1)

(3)

(2,995)(2,686)

Decrease (increase) in inventories

617

939

Increase (decrease) in accounts payable – trade

(514)

1,689

Others

(198)

(46)

Subtotal

Increase (decrease) in provision for bonuses

Decrease (increase) in notes and accounts receivable – trade(1,398)1,652Interest and dividend income received

13

13Interest paid

(15)

(19)

Income taxes paid

(779)

(1,298)(2,180)347

Purchase of property, plant and equipment(631)(1,172)

Purchase of intangible assets

(29)

(33)

Purchase of investment securities

(1)

(1)

Others

(3)

(10)

(666)

(1,218)Net cash provided by (used in) operating activities
Cash flows from investing activities

Net cash provided by (used in) investing activities8

(millions of yen)
FY3/20 1Q(April 1, 2019 –June 30, 2019)

FY3/21 1Q(April 1, 2020 –June 30, 2020)

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

3,606

(486)

Proceeds from long-term loans payable

-

1,500

Repayments of long-term loans payable

(191)

(317)

Cash dividends paid

(394)

(447)

Purchase of treasury shares

(0)

(60)

Others

(84)

(100)

2,935

87

Effect of exchange rate change on cash and cash equivalents

31

(241)

Net increase (decrease) in cash and cash equivalents

120(1,024)

Cash and cash equivalents at beginning of period

7,816

11,652

Cash and cash equivalents at end of period

7,936

10,627

Net cash provided by (used in) financing activities9(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.

(Segment information, etc.)
I. FY3/20 1Q (April 1, 2019 – June 30, 2019)
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

29,022

20,752

49,774-

49,774

-

29

29

(29)

-

Total

29,022

20,78149,804(29)

49,774

Segment profit

1,093

496

1,590

-

1,590

(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. FY3/21 1Q (April 1, 2020 – June 30, 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

33,797

19,74253,540-53,540

-

19

19

(19)

-

Total

33,797

19,76253,559(19)53,540

Segment profit

1,334

299

1,634

-

1,634

(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.

10