FY3/14 1Q
Q Consolidated Financial Statements[J-GAAP]
August 9, 2013
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
Yoshiaki Matuda, President and Representative Director
Representative:
Inquiries:
Yoshitaka Tashiro, Director in Charge of IR
TEL: +81-3-5381
5381-0728
Filing date of quarterly report:
August 9, 2013
Date to start dividends distribution:－
Supplementary quarterly materials prepared:No
Quarterly results information meeting held:
No(Figures are rounded down to the nearest million yen)

1. FY3/14 1Q consolidated
solidated results (April 1, 201
2013 – June 30, 2013)(1) Consolidated results
Operating income
Net sales(millions of yen)(%) (millions of yen)

(Percentages
ercentages are year-on-year changes)

Ordinary income(%) (millions of yen)

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

FY3/14 1Q

43,133

3.2

1,407

35.5

1,385

22.6

871

19.7

FY3/13 1Q

41,783

-10.2

1,038

-52.4

1,130

-49.2

727

-46.4

(Note) Comprehensive income:

FY3/1
FY3/14 1Q: ¥1,891 million (83.9%)

Net income per share

FY3/13 1Q: ¥1,028 million (-31.9%)(

Diluted net income per share
(yen)

(yen)

FY3/14 1Q

32.21

－

FY3/13 1Q

26.39

－

(2) Consolidated financial position
Total assets

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

63,92045,97471.9

44,46070.4

End-FY3/14 1Q
End-FY3/13

63,136(Reference) Shareholders’ equity:

Shareholders’ equity ratio

End
End-FY3/14 1Q: ¥45,970 million

End-FY3/13: ¥44,457 million

2. Dividends
1Q
(yen)

FY3/13－

FY3/14－

Annual Dividends
3Q

2Q
(yen)

FY3/14 (Projections)

4Q

(yen)

Annual
(yen)

(yen)

12.00

－

12.00

24.00

12.00

－

12.00

24.00

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

3. Consolidated earnings projections for FY3/1
FY3/14 (April 1, 2013 – March 31, 2014)(Percentages
ercentages are year-on-year
year
changes)

Operating income

Net sales(millions of yen)(%) (millions of yen)

Ordinary income(%) (millions of yen)

Net income
per share

Net income
(%)

(yen)

FY3/14 1H

86,000

5.9

3,000

65.9

3,150

57.0

(%) (millions of yen)

2,020

51.6

74.78

FY3/14

175,000

4.6

6,200

11.3

6,500

6.8

4,140

3.3

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

* 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 1Q

28,908,581 shares End-FY3/13

28,908,581 shares

End-FY3/14 1Q

1,897,079 shares End-FY3/13

1,851,230 shares

FY3/14 1Q

27,052,829 shares FY3/13 1Q

27,576,525 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 three months of the fiscal year ending March 31, 2014, the Japanese economy showed some signs ofimprovement, such as a recovery in equity markets and an upturn in export margins due to the weaker yen, against
the backdrop of expectations about the government's economic policies aimed at ending deflation. However,conditions remained difficult due to factors such as weak consumer spending and the growing risk of an economic
slowdown overseas.
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 some signs of a recovery in production at key customers in thesemiconductor and electronics parts sectors, but sales of gold and silver products declined compared with thesame period a year earlier. 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 materials handled by the Group was flat year on year amid littlechange in production activity in the division's target sectors. This factor and lower prices for silver recovered fromphotosensitive materials led to a decline in sales year on year in the division.
As a result, net sales for the precious metals business segment totaled ¥32,263 million (up 5.5% year on year),and operating income was ¥1,234 million (up 43.9% 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 amid deflationary conditions, and a rise in raw material prices caused mainly by
the weaker yen. Against this backdrop, sales volume for seafood products such as surimi fish paste declined,leading to a drop in seafood sales year on year. Sales of livestock products increased year on year, with anincrease in sales volume for eggs offsetting weak sales volume for meat. Sales of vegetables and other agricultural
products declined year on year due to a drop in sales volume.
As a result, net sales for the food business segment were ¥10,884 million (down 3.0% year on year), andoperating income was ¥172 million (down 4.6% year on year).
As a result of the above, for the first three months of the fiscal year ending March 31, 2014, consolidated net
sales were ¥43,133 million (up 3.2% year on year), operating income was ¥1,407 million (up 35.5% year on year),ordinary income was ¥1,385 million (up 22.6% year on year), and net income was ¥871 million (up 19.7% 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 three months were ¥63,920 million, an increase of ¥784 million from theprevious fiscal year end. This mainly reflected increases in inventories, outweighing a decline in cash and deposits.
Liabilities
Total liabilities as of the end of the first three months were ¥17,945 million, a decrease of ¥729 million from theprevious fiscal year end. This was mainly because of decreases in accrued income taxes.
Net assets
Net assets as of the end of the first three months were ¥45,974 million, an increase of ¥1,513 million from theprevious fiscal year end. This primarily reflected an increase in profits generated during the three months underreview.

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 ¥6,895 million, a decrease of ¥1,687 million from the previous fiscal year end.
Cash flows from operating activities
Operating activities used net cash of ¥1,517 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, the decreasein notes and accounts receivable－trade and the increase in inventories on the other. Compared with the same
period in the previous fiscal year, when operating activities used net cash of ¥1,763 million, net cash used inoperating activities increased by ¥246 million.
Cash flows from investing activities
Investing activities used net cash of ¥254 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 ¥1,120 million, net cash used ininvesting activities decreased by ¥865 million.
Cash flows from financing activities
Financing activities used net cash of ¥148 million. This was mainly due to dividend payment. Compared with thesame period in the previous fiscal year, when financing activities used net cash of ¥821 million, net cash used infinancing activities decreased by ¥672 million.

(3) Qualitative information on consolidated earnings projections
The earnings projections announced on May 13, 2013 are unchanged at the time of release of this document.

2. 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 1Q(As of June 30, 2013)

AssetsCurrent assets
Cash and deposits

8,587

6,895

Notes and accounts receivable – trade

18,813

18,631

Merchandise and finished goods

8,596

10,810

174

209

5,729

5,735

595

218

Other accounts receivable

1,132

1,046

Others

1,750

2,339

-43

-41

45,33645,844Work 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

5,935

Accumulated depreciation-3,512-3,594

Buildings and structures, net

2,296

2,341

Machinery and delivery equipment

4,929

5,005

-3,983-4,055

945

950

7,629

7,698

425

439

Accumulated depreciation

-306

-321

Leased assets, net

118

118

Construction in progress

2,248

2,287

Accumulated depreciation
Machinery and delivery equipment, net
Land
Leased assets

Others940

983

Accumulated depreciation

-622

-652

Others, net

317

331

13,557

13,726

Others329

273

Total intangible fixed assets

329

273

Investment securities

2,588

2,735

Deferred tax assets

Total property, plant and equipment
Intangible fixed assets

Investments and other assets

177

166

Others

1,424

1,451

Allowance for doubtful accounts

-277

-277

Total investments and other assets

3,913

4,076

Total fixed assets

17,80018,075

Total assets

63,13663,9204

(millions of yen)
End-FY3/13(As of March 31, 2013)

FY3/14 1Q(As of June 30, 2013)

Liabilities
Current liabilities
Notes and accounts payable – trade

7,885

8,247

Short-term loans payable

721

1,190

Current portion of long-term loans payable

714

666

Lease obligations

54

52

Accrued income taxes

1,315

422

Reserve for bonuses

615

352

Other accounts payable

1,169

1,068

Others

2,867

2,797

Total current liabilities

15,343

14,797

Fixed liabilities
Long-term loans payable

2,467

2,292

Lease obligations

64

66

Reserve for retirement benefits

230

208

Reserve for directors’ retirement benefits

539

550

Others

30

30

3,331

3,148

18,675

17,945

3,559

3,559

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

4,008

4,008

Retained earnings

38,76639,312

Treasury stock-2,027-2,082

Total shareholders’ equity

44,30644,798Valuation difference on available-for-salesecurities

192

217

Deferred gains or losses on hedges

-22

521

Foreign currency translation adjustments

-19

433

Total accumulated other comprehensive income

Accumulated other comprehensive income

151

1,172

Minority interests2

3

Total net assets

44,46045,974

63,13663,920Total liabilities and net assets5(2) Quarterly consolidated statements of income and comprehensive income[Quarterly consolidated statements of income](millions of yen)
FY3/13 1Q(April 1, 2012 –June 30, 2012)

FY3/14 1Q(April 1, 2013 –June 30, 2013)

Net sales

41,783

43,133

Cost of sales

37,65938,729Gross profit

4,123

4,403

Selling, general, and administrative expenses

3,085

2,996

Operating income

1,038

1,407

Interest income

00Dividends income

8

7

175

39

Purchase discounts

7

5House rent income

15

15

Others17

9Total non-operating income

223

77

Non-operating income

Equity in earnings of affiliates

Non-operating expenses
Interest expenses

18

11

Foreign exchange losses

79

59

Cost of lease revenue

19

19

Others15

9Total non-operating expenses

132

99

Ordinary income

1,130

1,385

Income before income taxes

1,130

1,385

Income taxes – current

266

298

Income taxes – deferred

135

217

Total income taxes

402

515

Income before minority interests

727

870

Minority interests in loss－

-1

Net income

727

871

6

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

FY3/14 1Q(April 1, 2013 –June 30, 2013)
727

870

-35

24

Deferred gains or losses on hedges

67

543

Foreign currency translation adjustments

231

383

Share of other comprehensive income ofaffiliates accounted for using equity method

37

69

Total other comprehensive income

300

1,021

1,028

1,891

Comprehensive income attributable to ownersof the parent

1,028

1,892

Comprehensive income attributable to minority
interests－-1

Other comprehensive income
Valuation difference on available-for-salesecurities

Comprehensive income
Comprehensive income attributable to7(3) Quarterly consolidated statements of cash flows(millions of yen)
FY3/13 1Q(April 1, 2012 –June 30, 2012)

FY3/14 1Q(April 1, 2013 –June 30, 2013)

Cash flows from operating activities
Income before income taxes
Depreciation and other amortization
Change in allowance for doubtful accounts (‘-’ means decrease)

1,130

1,385

272

270

80

-1

-259

-262

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

-2

-23

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

1011Interest and dividends income-8-8Change in allowance for bonuses (‘-’ means decrease)

Interest expense18

11Equity in earnings or losses of affiliates (‘-’ means earnings)

-175

-39

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

-391

232

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

-106

65

Change in inventories (‘-’ means increase)-128-2,052

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

-509

209

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

216

-100

Others-570-66

Subtotal

-424

-368

67

8

Interest and dividends received
Interest paid

-18

-11

Income taxes paid

-1,388-1,145

Cash flows from operating activities-1,763-1,517-1,094-213

6－Purchase of intangible fixed assets

-38

-28

Purchase of investment securities-1-1Cash flows from investing activities
Purchase of property, plant and equipment
Proceeds from sale of property, plant and equipment

Others8-10-1,120-254

Net change in short-term loans payable (‘-’ means decrease)

-167

469

Repayment of long-term loans payable

-174

-223

Purchase of treasury stock

-130

-54

Dividends paid

-331

-324

Others-17-15

Cash flows from financing activities

Cash flows from investing activities
Cash flows from financing activities

-821

-148

Effect of exchange rate change on cash and cash equivalents

123

233

Change in cash and cash equivalents (‘-’ means decrease)-3,582-1,687

Cash and cash equivalents at beginning of period

9,948

8,582

Cash and cash equivalents at end of period

6,366

6,895

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 1Q (April 1, 2013 – June 30, 2013)
There is nothing to report.

(Segment Information, etc.)
I. FY3/13 1Q (April 1, 2012 – June 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
Total
Segment income

30,578

11,20541,783―

41,783

1

13

15

-15

―

30,579

11,21941,798-15

41,783

857

180

1,038

―

1,038

(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 1Q (April 1, 2013 – June 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

32,262

10,87043,133―

43,133

1

13

14

-14

―

Total

32,263

10,884

43,147-14

43,133

Segment income

1,234

172

1,407

―

1,407

(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