FY3/21 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:
Quarterly results information meeting held:

February 10, 2021
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 12, 2021
－
None
None
(Figures are rounded down to the nearest million yen)

1. FY3/21 3Q consolidated results (April 1, 2020 – December 31, 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 3Q

171,385

8.9

6,287

20.2

6,371

16.2

4,676

25.0

FY3/20 3Q

157,405

(1.4)

5,232

42.9

5,484

42.0

3,740

46.3

(Note) Comprehensive income:

FY3/21 3Q: ¥4,568 million (+36.1%)

Earnings per share

FY3/20 3Q: ¥3,355 million (+52.9%)

Diluted earnings per share
(yen)

(yen)

FY3/21 3Q

178.17－

FY3/20 3Q

142.03－(2) Consolidated financial position
Total assets

Shareholders’ equity ratio

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

End-FY3/21 3Q

97,19363,867

65.6

End-FY3/20

94,50960,527

63.9(Reference) Shareholders’ equity:

End-FY3/21 3Q: ¥63,763 million

End-FY3/20: ¥60,428 million

2. Dividends
1Q

Annual dividends
3Q

2Q
(yen)

(yen)

4Q

(yen)

FY3/20

－

17.00

－

FY3/21

－

18.00

－

FY3/21 (Projections)

Annual
(yen)

(yen)

17.00

34.00

20.00

38.00

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

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

Net sales(millions of yen)

FY3/21

220,000

Operating profit

Profit attributable to Earnings perowners of parent
share

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

(%)

(yen)

4.3

17.0

15.9

33.5

206.61

7,300

7,400

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

5,400

* 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 3Q

28,908,581 shares End-FY3/20

28,908,581 shares

End-FY3/21 3Q

2,772,517 shares End-FY3/20

2,575,930 shares

FY3/21 3Q

26,244,344 shares FY3/20 3Q

26,332,712 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 nine months of the fiscal year ending March 31, 2021, the Japanese economy continued to face extremely
challenging conditions, including weak consumer spending and a decline in corporate earnings caused by theoutbreak of coronavirus disease (COVID-19). Despite signs of a pickup in domestic economic activity on the back ofgovernment stimulus measures, the outlook remains uncertain due to factors such as new waves of COVID-19 andtrade tension between the US and China.
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 fulfilling its
corporate social responsibility by working to expand the Group’s businesses to support sustained growth andincrease corporate value. The precious metals business segment stepped up marketing activities and actively usedproduction 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 foodbusiness segment fulfilled its responsibility of ensuring 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 nine months of the fiscal year ending March 31, 2021, consolidated net sales
were ¥171,385 million (up 8.9% year on year), operating profit was ¥6,287 million (up 20.2% year on year), ordinary
profit was ¥6,371 million (up 16.2% year on year), and profit attributable to owners of parent was ¥4,676 million (up25.0% year on year).
Performance in the Matsuda Sangyo Group’s business segments was as follows.
Precious metals business segment
In the precious metals business segment, key customers in the electronics sector were affected by the COVID-19
outbreak, but there was a moderate upward trend in production activity in the electronics parts and devices field.
Against that backdrop, the amount of industrial waste treated on an outsourcing basis declined. However, sales
and operating profit both increased compared with the same period of the previous fiscal year, reflecting a modest
rise in the volume of precious metal recycling and increases in sales volume for gold and silver products, as well as
higher precious metals prices. As a result, net sales for the precious metals business segment totaled ¥110,565
million (up 18.1% year on year), and operating profit was ¥5,263 million (up 35.3% year on year).
Food business segment
In the food business segment, consumer spending recovered for a time, spurred by government stimulus measures,
but conditions remained tough for key customers across the food processing sector, reflecting new outbreaks of
COVID-19 that led to weakness in the food service industry and poor sales of food souvenirs, reducing demand forthe segment’s commercial-use products.
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, storage fees and othercosts increased, leading to 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 ¥60,877 million (down 4.7% year on year), and operating
profit was ¥1,024 million (down 23.7% 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 ¥97,193 million, an increase of ¥2,684 million from theprevious fiscal year end. This mainly reflected the difference between increases for notes and accounts receivable –trade and property, plant and equipment and decreases for cash and deposits and inventories.
Liabilities
Total liabilities as of the end of the first nine months were ¥33,326 million, a decrease of ¥655 million from the previous
fiscal year end. This primarily reflected the difference between an increase for accounts payable – trade anddecreases for short-term loans payable and income taxes payable.
Net assets
Net assets as of the end of the first nine months were ¥63,867 million, an increase of ¥3,339 million from the previous
fiscal year end. This mainly reflected an increase in retained earnings, which outweighed year-end and interim cash2

dividends paid of ¥919 million.
(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 ¥8,773 million, a decrease of ¥2,878 million from the previous fiscal year end.
Cash flows from operating activities
Operating activities provided net cash of ¥2,113 million. This mainly reflected the difference between cash provided
from profit before income taxes, depreciation, increase in accounts payable – trade and decrease in inventories on
the one hand, and cash used for increase in notes and accounts receivable – trade and income taxes paid on theother. Compared with the same period in the previous fiscal year, when operating activities used net cash of ¥2,460
million, cash from operating activities increased by ¥4,573 million.
Cash flows from investing activities
Investing activities used net cash of ¥2,631 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 ¥2,029 million, cash used by investing activities
increased by ¥601 million.
Cash flows from financing activities
Financing activities used net cash of ¥2,118 million. This mainly reflected a decrease in short-term loans payable, as
well as cash dividends paid and the purchase of treasury shares. Compared with the same period in the previous
fiscal year, when financing activities provided net cash of ¥5,385 million, cash from financing activities decreased by¥7,504 million.

(3) Qualitative information on consolidated earnings projections
For details about the Group’s earnings projections, please refer to the press release issued on February 10, 2021,“Revisions to Earnings Projections and Dividend Forecast.”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 3Q(As of December 31, 2020)

AssetsCurrent assets
Cash and deposits

11,652

8,773

Notes and accounts receivable – trade

19,936

26,592Merchandise and finished goods

23,13520,902Work in process

423

526

Raw materials and supplies

8,062

9,290

Others

5,257

4,118

(68)

(63)

68,39870,140Allowance for doubtful accounts
Total current assets
Non-current assets
Property, plant and equipment
Buildings and structures

11,238

12,116

Accumulated depreciation(5,450)(5,707)

Buildings and structures, net

5,788

6,408

Machinery, equipment and vehicles

9,237

11,281

Accumulated depreciation(7,589)(8,140)Machinery, equipment and vehicles, net

1,647

3,140

Land

8,938

8,752

Leased assets

1,826

1,766

Accumulated depreciation

(771)

(833)

Leased assets, net

1,054

932

Construction in progress

1,124

506

Others

1,414

1,458

(1,089)(1,173)324

284

18,87820,026

Others579

547

Total intangible assets

579

547

Investment securities

4,406

4,664

Deferred tax assets

665

248

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

Investments and other assets

Others

1,597

1,603

Allowance for doubtful accounts

(18)

(37)

Total investments and other assets

6,651

6,479

Total non-current assets

26,11027,053

Total assets

94,50997,193

4

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

End-FY3/21 3Q(As of December 31, 2020)

Liabilities
Current liabilities
Accounts payable – trade

7,898

8,780

Short-term loans payable

7,023

6,052

Current portion of long-term loans payable

1,268

1,533

Lease obligations

365

368

Income taxes payable

1,398

814

Provision for bonuses

918

467

Others

5,297

5,574

Total current liabilities

24,16823,591

6,040

6,164

Lease obligations

733

581

Provision for directors’ retirement benefits

670

678

Provision for executive officers’ retirement
benefits

11

16

Non-current liabilities
Long-term loans payable

Net defined benefit liability

2,301

2,234

Deferred tax liabilities

923

Others

47

36

9,813

9,735

33,98233,326

3,559

3,559

Total non-current liabilities
Total liabilities
Net assets
Shareholders’ equity
Common stock
Capital surplus

4,008

4,008

Retained earnings

56,06959,826

Treasury shares(3,010)(3,319)Total shareholders’ equity

60,62664,074

Valuation difference on available-for-salesecurities

423

551

Deferred gains or losses on hedges

(164)

(146)

Foreign currency translation adjustment

990

526

(1,447)(1,241)

(197)

(310)

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

103

60,52763,867

94,50997,193

(2) Quarterly consolidated statements of income and comprehensive income[Quarterly consolidated statements of income](millions of yen)
FY3/20 3Q(April 1, 2019 –December 31, 2019)

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

Net sales

157,405

171,385

Cost of sales

140,397

153,067

Gross profit

17,00818,318Selling, general, and administrative expenses

11,776

12,030Operating profit

5,232

6,287

Interest income

124Dividend income

2524Gain on sales of investment securities

27

1

Share of profit of entities accounted for using
equity method

143

159

Purchase discounts

88Foreign exchange gains

17-

Others105

45

Total non-operating income

341

243

54

53

Non-operating income

Non-operating expenses
Interest expenses
Foreign exchange losses-

57

Others34

49

Total non-operating expenses

89

159

5,484

6,371

Gain on sales of land-347

Total extraordinary income-

347

Impairment loss

115-

Total extraordinary losses

Ordinary profit
Extraordinary income

Extraordinary losses

115-

Profit before income taxes

5,369

6,719

Income taxes – current

1,512

1,750

Income taxes – deferred

103

284

Total income taxes

1,615

2,034

Profit

3,753

4,685

13

8

3,740

4,676

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

6

[Quarterly consolidated statements of comprehensive income](millions of yen)
FY3/20 3Q(April 1, 2019 –December 31, 2019)
ProfitFY3/21 3Q(April 1, 2020 –December 31, 2020)

3,753

4,685

Valuation difference on available-for-salesecurities

(33)

127

Deferred gains or losses on hedges

(299)

20

Foreign currency translation adjustment

(60)

(428)

Remeasurements of defined benefit plans

11

206

(16)

(43)

Other comprehensive income

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

(397)

(116)

3,355

4,568

3,338

4,563

16

4

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)
FY3/20 3Q(April 1, 2019 –December 31,
2019)

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

Cash flows from operating activities
Profit before income taxes

5,369

6,719

Depreciation

1,160

1,545

115

-

8

14

(339)

(450)

Increase (decrease) in net defined benefit liability

14

225

Increase (decrease) in provision for directors’ retirement benefits

(4)

10

Increase (decrease) in provision for executive officers’ retirement
benefits(16)

4

Interest and dividend income

(37)

(28)

Interest expenses

54

53

(143)

(159)

Decrease (increase) in notes and accounts receivable – trade(6,065)(6,778)Decrease (increase) in inventories(2,105)785

Increase (decrease) in accounts payable – trade

387

1,003

Others685

1,418

Subtotal

(918)

4,362

Interest and dividend income received

47

77

Interest paid

(53)

(53)

Income taxes paid

(1,536)(2,272)

Net cash provided by (used in) operating activities(2,460)2,113(1,997)(2,948)

Impairment loss
Increase (decrease) in allowance for doubtful accounts
Increase (decrease) in provision for bonuses

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

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

2445

Purchase of intangible assets

(90)

(121)

Purchase of investment securities

(10)

(10)

Proceeds from sales of investment securities

30

4

Others36(1)(2,029)(2,631)

Net cash provided by (used in) investing activities8

(millions of yen)
FY3/20 3Q(April 1, 2019 –December 31,
2019)

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

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

2,105

(996)

Proceeds from long-term loans payable

5,000

1,500

Repayments of long-term loans payable(591)(1,101)

Cash dividends paid

(842)

(919)

(0)

(309)

Others

(285)

(292)

Net cash provided by (used in) financing activities

5,385(2,118)24(242)

Purchase of treasury shares

Effect of exchange rate change on cash and cash equivalents
Net increase (decrease) in cash and cash equivalents

920(2,878)Cash and cash equivalents at beginning of period

7,816

11,652

Cash and cash equivalents at end of period

8,736

8,773

9

(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 3Q (April 1, 2019 – December 31, 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

93,59363,812

157,405-

157,405

-

55

55

(55)

-

Total

93,59363,867

157,460(55)

157,405

Segment profit

3,890

1,341

5,232

-

5,232

(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 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.

10