Translation
Notice: This document is an excerpt translation of the original Japanese document and is only for reference purposes. In the event of any
discrepancy between this translated document and the original Japanese document, the latter shall prevail.

Summary of Consolidated Financial Results
for the Year Ended March 31, 2020
(Based on Japanese GAAP)May 21, 2020
Company name:

Fumakilla Limited

Stock exchange listing: Tokyo
Stock code:
4998
Representative:
Inquiries:

URL

https://www.fumakilla.co.jp

President
Director, General Manager, Administrative

Division
Scheduled date of ordinary general meeting of shareholders:Kazuaki Oshimo
Takanori Sasaki

TEL0829-55-2112

June 26, 2020

Scheduled date to file Securities Report:
Scheduled date to commence dividend payments:

June 29, 2020
June 29, 2020

Preparation of supplementary material on financial results:
Holding of financial results meeting:Yes
No(Amounts less than one million yen are rounded down)
1. Consolidated financial results for the year ended March 31, 2020 (from April 1, 2019 to March 31, 2020)(1) Consolidated operating results
Net salesYear ended March 31, 2020
Year ended March 31, 2019

Millions of yen44,485
41,243

Earnings per share

Percentages indicate year-on-year changes
Profit attributable toOperating profit
Ordinary profit
owners of parent% Millions of yen% Millions of yen% Millions of yen
%
7.9
1,785
57.2
2,021
51.7
770
11.0
(13.6)
1,136 (55.1)
1,332(50.4)
693(60.0)
Profit attributable toOrdinary profit/total Operating profit/net
owners ofassets
sales
parent/equity
Yen%%%
–
4.8
4.9
4.0
–
4.2
3.1
2.8

Diluted earnings pershare

Yen
46.72
42.09

Year ended March 31, 2020
Year ended March 31, 2019(2) Consolidated financial position

Total assets
As of March 31, 2020
As of March 31, 2019

Net assets

Equity ratio

Millions of yen
39,82642,180Millions of yen
17,16517,028Cash flows fromoperating activities
Millions of yen
5,880(1,322)

Cash flows frominvesting activities
Millions of yen(882)(1,765)

Net assets per share%
40.4
38.3

Yen
976.92980.45(3) Consolidated cash flows

Year ended March 31, 2020
Year ended March 31, 2019

Cash flows from
Cash and cash equivalents
at end of period
financing activities
Millions of yen
Millions of yen(3,842)
5,646
1,234
4,457

2. Cash dividends
Annual dividends per share
1st quarter-end 2nd quarter-end 3rd quarter-end Fiscal year-end

Year ended March 31, 2019Year ended March 31, 2020
Year ending March 31, 2021
(Forecast)of dividends
Total cash
Dividend payout Ratio
to net assets
dividends (Total) ratio (Consolidated) (Consolidated)

Total

Yen

Yen

Yen

Yen

Yen

Millions of yen%%––––––

26.00
20.00

26.00
20.00

428
329

61.8
42.8

2.6
2.0

––––

–

1–3. Notes(1) Changes in significant subsidiaries during the year ended March 31, 2020(changes in specified subsidiaries resulting in the change in scope of consolidation):No(2) Changes in accounting policies, changes in accounting estimates, and restatement of prior period financial statements
Changes in accounting policies due to revisions to accounting standards and other regulations:
Changes in accounting policies due to other reasons:

Yes
No

Changes in accounting estimates:
Restatement of prior period financial statements:

NoNo(3) Number of issued shares (common shares)
Total number of issued shares at the end of the period (including treasury shares)
As of March 31, 2020

16,490,000 shares As of March 31, 201916,490,000 shares

Number of treasury shares at the end of the period
As of March 31, 2020

7,565 shares As of March 31, 2019

7,061 shares

Average number of shares during the period
Year ended March 31, 2020

16,482,642 shares Year ended March 31, 2019

216,483,239 shares

Consolidated financial statements
Consolidated balance sheets(Thousands of yen)
As of March 31, 2019

As of March 31, 2020

AssetsCurrent assets
Cash and deposits
Notes and accounts receivable - trade

5,087,032
12,463,230

6,281,773
12,026,983

Electronically recorded monetary claims - operating
Merchandise and finished goods

133,383
6,893,484

205,033
4,736,826

Work in process
Raw materials and supplies

1,051,239
2,016,164

898,244
1,909,521

Other
Allowance for doubtful accounts

1,201,437(1,404)805,987(782)

Total current assets

28,844,567

26,863,588

5,760,774(4,058,010)

5,783,963(4,184,006)

Buildings and structures, net

1,702,764

1,599,957

Machinery, equipment and vehicles
Accumulated depreciation

10,239,816(8,397,821)

10,536,796(8,878,321)

1,841,995

1,658,474

3,314,541(3,059,081)

3,385,981(3,181,188)

255,459

204,793785,086
120,324

751,700
171,051

Accumulated depreciation(93,337)(112,427)

Leased assets, net

26,98758,624–

615,721

Accumulated depreciation–(199,579)

Right of use asset, net–

416,141

Construction in progress

205,732

605,950

4,818,025

5,295,642

799,597743,703677,200
579,157

617,280
387,735

Non-current assets
Property, plant and equipment
Buildings and structures
Accumulated depreciation

Machinery, equipment and vehicles, net
Tools, furniture and fixtures
Accumulated depreciation
Tools, furniture and fixtures, netLand
Leased assets

Right of use asset

Total property, plant and equipment
Intangible assets
Goodwill
Trademark right
Other
Total intangible assets

2,055,956

1,748,718

Investments and other assets
Investment securities

6,040,345

5,410,488

Deferred tax assets
Retirement benefit asset

111,342
89,888165,360
37,816

Other
Allowance for investment loss

408,260(44,990)438,662–

Allowance for doubtful accounts(142,629)(134,063)

Total investments and other assets

6,462,217

5,918,264

13,336,198

12,962,625

42,180,766

39,826,214

Total non-current assets
Total assets3

(Thousands of yen)
As of March 31, 2019

As of March 31, 2020

Liabilities
Current liabilities
Notes and accounts payable - trade

3,944,914

4,254,840

Electronically recorded obligations - operating
Short-term borrowings

2,221,516
13,135,785

1,474,871
9,904,672

Lease obligations
Accounts payable - other9,3172,403,847

90,093
3,055,290

Income taxes payable
Provision for bonuses

172,430
415,264

375,122416,497

Provision for bonuses for directors (and other officers)
Provision for sales rebates–
438,7412,073
421,000

Provision for sales returns
Other651,095
185,701

637,032
239,791

Total current liabilities

23,578,614

20,871,286

17,670132,543

Deferred tax liabilities
Retirement benefit liability

603,525
402,685

579,823
480,759

Provision for retirement benefits for directors (and otherofficers)

488,771532,767

Asset retirement obligations
Other

9,687
51,4729,870
53,562

Total non-current liabilities

1,573,812

1,789,328

25,152,427

22,660,614

Shareholders' equity
Share capital

3,698,680

3,698,680

Capital surplus
Retained earnings

4,797,103
6,159,494

4,797,107
6,464,170(5,379)(6,007)

14,649,898

14,953,950

2,059,882(508,004)

1,654,685(433,882)

Non-current liabilities
Lease obligations

Total liabilities
Net assets

Treasury shares
Total shareholders' equity
Accumulated other comprehensive income
Valuation difference on available-for-sale securities
Foreign currency translation adjustment
Remeasurements of defined benefit plans
Total accumulated other comprehensive income
Non-controlling interests
Total net assets
Total liabilities and net assets

4(41,098)(72,660)

1,510,779

1,148,142

867,661

1,063,506

17,028,338

17,165,599

42,180,766

39,826,214

Consolidated statements of income and consolidated statements of comprehensive income
Consolidated statements of income(Thousands of yen)
Fiscal year ended
March 31, 2019

Fiscal year ended
March 31, 2020

Net sales

41,243,165

44,485,939

Cost of sales

29,128,148

31,391,482

Gross profit

12,115,016

13,094,457

Reversal of provision for sales returns

650,715

630,794

Provision for sales returns

630,794

637,032

12,134,937

13,088,219

2,135,155
2,117,672

2,263,416
1,665,787

761,659
461,565

1,259,143
410,188

2,087
1,896,006

2,105
1,911,039

Bonuses
Provision for bonuses

83,043242,323

99,979250,205

Provision for bonuses for directors (and other officers)
Retirement benefit expenses–
155,690

2,073
163,301

Provision for retirement benefits for directors (and otherofficers)

50,74648,044

Depreciation
Other

230,335
2,862,604

264,883
2,962,365

Total selling, general and administrative expenses

10,998,889

11,302,535

1,136,047

1,785,683

Interest income
Dividend income

34,550105,027

87,583
115,876

Rental income from real estateTechnical advisory fee income

41,221
67,04236,81867,093Foreign exchange gains
Other–
100,807

13,991
99,720Total non-operating income

348,649

421,083

Gross profit - net
Selling, general and administrative expenses
Transportation expenses
Advertising expensesPromotion expenses
Travel and transportation expenses
Provision of allowance for doubtful accounts
Salaries and allowances

Operating profit
Non-operating income

Non-operating expenses
Interest expenses

39,45260,905

Sales discounts
Foreign exchange losses

82,407
13,94386,219–Other

16,41038,055

Total non-operating expenses
Ordinary profit

5152,213

185,180

1,332,482

2,021,586

(Thousands of yen)

Extraordinary income
Gain on sales of non-current assets

Fiscal year ended

Fiscal year ended

March 31, 2019

March 31, 2020
3,201

11,433Gain on sales of investment securities
Insurance claim income

9,477
28,170––Total extraordinary income

40,85011,43364

30,973

Loss on valuation of investment securities
Loss on sales of investment securities

––

2,758
1,714

Loss on valuation of shares of subsidiaries and associates
Impairment loss

––

9,726
38,000Retirement benefits for directors (and other officers)
Expenses related to advanced repayment of loans

28,40029,777––

Provision of allowance for investment loss
Other4,671
–

2,267
604

Total extraordinary losses

62,91386,044

1,310,419

1,946,975

490,398

793,494

Extraordinary losses
Loss on sales and retirement of non-current assets

Profit before income taxes
Income taxes - current
Income taxes - deferred(69,488)

119,460

Total income taxes

420,909

912,954

Profit889,509

1,034,020

Profit attributable to non-controlling interests

195,753

263,944

Profit attributable to owners of parent

693,756

770,075

6Consolidated statements of comprehensive income(Thousands of yen)

ProfitOther comprehensive income

Fiscal year ended

Fiscal year ended

March 31, 2019

March 31, 2020

889,509

1,034,020

Valuation difference on available-for-sale securities
Foreign currency translation adjustment(500,980)(503,643)(405,197)
114,246

Remeasurements of defined benefit plans, net of tax

30,148(29,873)(974,476)(320,824)

Comprehensive income

Total other comprehensive income(84,966)

713,195

Comprehensive income attributable toComprehensive income attributable to owners of parent(244,232)

407,438

159,266

305,756

Comprehensive income attributable to non-controllinginterests

7Consolidated statements of changes in equity
Fiscal year ended March 31, 2019(Thousands of yen)
Shareholders' equity
Share capital
Balance at beginning of period

Capital surplus

3,698,680

Retained earnings

4,815,309

Total shareholders'equity

Treasury shares

5,894,312(4,162)

14,404,138

Changes during period
Dividends of surplus(428,574)(428,574)

Profit attributable to ownersof parent

693,756

693,756

Purchase of treasury shares(1,217)

Change in ownership interestof parent due to transactions
with non-controlling interests(18,205)(1,217)(18,205)

Net changes in items otherthan shareholders' equity
Total changes during periodBalance at end of period–(18,205)

265,182(1,217)245,759

3,698,680

4,797,103

6,159,494(5,379)14,649,898

Accumulated other comprehensive income

Balance at beginning of period

Valuationdifference on
available-for-salesecurities

Foreign currencytranslation
adjustment

Remeasurementsof defined benefit
plans

Total accumulated
othercomprehensive
income2,560,863(47,134)(64,960)

2,448,768

Non-controllinginterests

Total net assets

811,100

17,664,008

Changes during period
Dividends of surplus(428,574)

Profit attributable to ownersof parent693,756

Purchase of treasury shares(1,217)

Change in ownership interestof parent due to transactions
with non-controlling interests(18,205)

Net changes in items otherthan shareholders' equity(500,980)(460,870)

23,861(937,989)

56,560(881,429)

Total changes during period(500,980)(460,870)

23,861(937,989)

56,560(635,669)

Balance at end of period

2,059,882(508,004)(41,098)

1,510,779

867,661

17,028,338

8Fiscal year ended March 31, 2020
(Thousands of yen)
Shareholders' equity
Share capital
Balance at beginning of period

Capital surplus

3,698,680

Retained earnings

4,797,103

6,159,494

Cumulative effects of changes
in accounting policies
Restated balance

Total shareholders'equity

Treasury shares(5,379)(36,843)3,698,680

4,797,103

6,122,651

14,649,898(36,843)(5,379)14,613,054

Changes during period
Dividends of surplus(428,556)(428,556)

Profit attributable to ownersof parent

770,075

770,075

Purchase of treasury shares
Disposal of treasury shares

4(640)

(640)

1216

Net changes in items otherthan shareholders' equityTotal changes during period
Balance at end of period–

4341,519(627)

340,895

3,698,680

4,797,107

6,464,170(6,007)

14,953,950

Accumulated other comprehensive income

Balance at beginning of period

Valuationdifference on
available-for-salesecurities

Foreign currencytranslation
adjustment

Remeasurementsof defined benefit
plans

Total accumulated
othercomprehensive
income2,059,882(508,004)(41,098)

1,510,779

Non-controllinginterests

Total net assets

867,661

17,028,338

Cumulative effects of changes
in accounting policies
Restated balance(36,843)
2,059,882(508,004)(41,098)

1,510,779

867,661

16,991,495

Changes during period
Dividends of surplus(428,556)

Profit attributable to ownersof parent

770,075

Purchase of treasury shares(640)

Disposal of treasury shares

16

Net changes in items otherthan shareholders' equity(405,197)

74,121(31,561)(362,637)

195,845(166,791)

Total changes during period(405,197)

74,121(31,561)(362,637)

195,845

174,104

Balance at end of period

1,654,685(433,882)(72,660)

1,148,142

1,063,506

17,165,5999Consolidated statements of cash flows(Thousands of yen)

Cash flows from operating activities
Profit before income taxes

Fiscal year ended

Fiscal year ended

March 31, 2019

March 31, 2020

1,310,419

1,946,975

Depreciation
Impairment loss

871,809–949,379
38,000

Amortization of goodwill
Increase (decrease) in retirement benefit liability

58,103
14,511

58,27463,020

Increase (decrease) in allowance for doubtful accounts
Increase (decrease) in other provisions

6,316(218,047)(8,918)
10,334

Increase (decrease) in allowance for investment loss
Interest and dividend income

3,237(139,578)(44,990)(203,460)Interest expenses
Foreign exchange losses (gains)

39,452(20,150)

60,905
9,938

Loss (gain) on valuation of investment securities
Loss on valuation of shares of subsidiaries and associates

–
–

2,758
9,726

Loss (gain) on sales of investment securities
Loss (gain) on sales and retirement of property, plant and(9,477)1,714

equipment
Retirement benefits for directors (and other officers)(3,136)

19,54028,400–

Expenses related to advanced repayment of loans
Decrease (increase) in trade receivables

29,777(464,627)–
430,861

Insurance claim income
Decrease (increase) in inventories(28,170)(420,224)–
2,458,530(1,010,967)(575,959)(451,387)
27,423

Other, net(213,901)

1,068,431

Subtotal(742,214)

6,447,058

Interest and dividends received

139,578

203,460

Proceeds from insurance income
Interest paid

28,170(44,201)–(60,846)

Payments of retirement benefits for directors (and otherofficers)(28,400)–

Payments related to advanced repayment of loans
Income taxes (paid) refund(29,777)(645,492)–(709,195)

Net cash provided by (used in) operating activities(1,322,336)

5,880,476

Increase (decrease) in trade payables
Increase (decrease) in accounts payable - otherCash flows from investing activities
Net decrease (increase) in time deposits(9,995)(9,284)Purchase of property, plant and equipment
Payments for retirement of property, plant and equipment(972,141)–(694,805)(28,404)

Proceeds from sales of property, plant and equipment
Purchase of intangible assets

5,228(112,737)

13,000(95,718)(2,475)30,985(2,560)2,265(693,535)(10,912)(49,914)(17,431)(1,765,582)(882,853)

Purchase of investment securities
Proceeds from sales of investment securities
Purchase of shares of subsidiaries
Other, net
Net cash provided by (used in) investing activities

10(Thousands of yen)

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

Fiscal year ended

Fiscal year ended

March 31, 2019

March 31, 2020

3,055,726(3,229,376)(1,250,000)(21,498)–(74,266)

Purchase of treasury shares
Proceeds from disposal of treasury shares(1,217)–(640)
16

Dividends paid
Dividends paid to non-controlling interests(428,574)(97,476)(428,556)(109,924)

Payments from changes in ownership interests in subsidiaries
that do not result in change in scope of consolidation(22,347)–

Net cash provided by (used in) financing activities

1,234,611(3,842,747)

Effect of exchange rate change on cash and cash equivalents(127,855)

34,330Net increase (decrease) in cash and cash equivalents(1,981,163)

1,189,207

Cash and cash equivalents at beginning of period

6,438,532

4,457,369

Cash and cash equivalents at end of period

4,457,369

5,646,576

Repayments of long-term borrowings
Repayments of lease obligations

11