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, 2021
(Based on Japanese GAAP)May 12, 2021
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
Kazuya Gobara

TEL0829-55-2112

June 24, 2021

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

June 25, 2021
June 25, 2021

Preparation of supplementary material on financial results:
Holding of financial results meeting:

YesYes(for institutional investors and analysts)(Amounts less than one million yen are rounded down)
1. Consolidated financial results for the year ended March 31, 2021 (from April 1, 2020 to March 31, 2021)(1) Consolidated operating results
Net salesYear ended March 31, 2021
Year ended March 31, 2020

Operating profit

Millions of yen
48,532
44,485%9.1
7.9Millions of yen
3,560
1,785

Earnings per share

Diluted earnings pershare

Profit attributable toOrdinary profit/total Operating profit/net
owners ofassets
sales
parent/equity
Yen%%
%
–
13.4
9.0
7.3
–
4.8
4.9
4.0

Yen
140.86
46.72

Year ended March 31, 2021
Year ended March 31, 2020

%
99.4
57.2

Percentages indicate year-on-year changes
Profit attributable toOrdinary profit
owners of parent
Millions of yen% Millions of yen%
3,85290.6
2,321 201.5
2,021
51.7
770
11.0

(2) Consolidated financial position
Total assets
As of March 31, 2021
As of March 31, 2020

Net assets

Equity ratio

Millions of yen
46,17239,826

Millions of yen
19,823
17,165

Cash flows fromoperating activities
Millions of yen
6,290
5,880

Cash flows frominvesting activities
Millions of yen(2,903)(882)

Net assets per share%
40.2
40.4

Yen
1,126.85
976.92(3) Consolidated cash flows

Year ended March 31, 2021
Year ended March 31, 2020

Cash flows from
Cash and cash equivalents
at end of periodfinancing activities
Millions of yen
Millions of yen(3,098)
5,976(3,842)5,646

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

Year ended March 31, 2020
Year ended March 31, 2021
Year ending March 31, 2022
(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%%––––––

20.00
24.00

20.00
24.00

329
395

42.8
17.0

2.02.1–––

20.00

20.00

1

16.6

3. Forecast of consolidated financial results for the year ending March 31, 2022 (from April 1, 2021 to March 31, 2022)
Net sales
Millions of yen
Six months ending
September 30, 2021
Full year

Percentages indicate year-on-year changes
Profit attributable toOperating profit
Ordinary profit
Earnings per shareowners of parent% Millions of yen% Millions of yen% Millions of yen%Yen

28,400

–

2,500

–

2,590

–

1,540

–

93.43

49,300

–

2,800

–

3,250

–

1,980

–

120.13

4. Notes(1) Changes in significant subsidiaries during the year ended March 31, 2021
(changes in specified subsidiaries resulting in the change in scope of consolidation):Yes(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:No
Changes in accounting policies due to other reasons:
Changes in accounting estimates:

NoNo

Restatement of prior period financial statements:

No(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, 2021

16,490,000 shares As of March 31, 2020

16,490,000 shares

Number of treasury shares at the end of the period
As of March 31, 2021

8,036 shares As of March 31, 2020

7,565 shares

Average number of shares during the period
Year ended March 31, 2021

16,482,192 shares Year ended March 31, 2020

216,482,642 shares

Consolidated financial statements
Consolidated balance sheets(Thousands of yen)
As of March 31, 2020

As of March 31, 2021

AssetsCurrent assets
Cash and deposits
Notes and accounts receivable - trade

6,281,773
12,026,983

6,578,216
12,109,578

Electronically recorded monetary claims - operating
Merchandise and finished goods

205,033
4,736,826

193,471
5,738,228

Work in process
Raw materials and supplies

898,244
1,909,521

974,157
2,692,483

805,987(782)

1,581,451(1,419)26,863,588

29,866,167

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

6,491,682(4,242,095)

Buildings and structures, net

1,599,957

2,249,587

Machinery, equipment and vehicles
Accumulated depreciation

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

10,680,649(9,027,414)

1,658,474

1,653,235

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

3,695,427(3,301,525)

204,793393,902751,700
171,051

747,126
220,935(112,427)(189,071)

Other
Allowance for doubtful accounts
Total current assets
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, net
Land
Leased assets
Accumulated depreciation
Leased assets, net

58,624

31,864

615,721941,243

Accumulated depreciation(199,579)(308,152)

Right of use asset, net

416,141

633,091

Construction in progress

605,950

2,757,520

5,295,642

8,466,327

743,703654,626

617,280
387,735

522,206
337,098

Right of use asset

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

1,748,718

1,513,932

Investments and other assets
Investment securities

5,410,488

5,726,924

Deferred tax assets
Retirement benefit asset

165,360
37,816200,456
47,572

Other
Allowance for doubtful accounts

438,662(134,063)

488,830(137,706)

Total investments and other assets
Total non-current assets
Total assets

3

5,918,264

6,326,077

12,962,625

16,306,337

39,826,214

46,172,505

(Thousands of yen)
As of March 31, 2020

As of March 31, 2021

Liabilities
Current liabilities
Notes and accounts payable - trade

4,254,840

6,010,216

Electronically recorded obligations - operating
Short-term borrowings

1,474,871
9,904,672

3,561,917
7,264,594

Lease obligations
Accounts payable - other90,093
3,055,290

66,072
4,044,370

Income taxes payable
Provision for bonuses

375,122416,497855,369
618,865

Provision for bonuses for directors (and other officers)
Provision for sales rebates

2,073
421,000

77,200362,212

Provision for sales returns
Reserve related to voluntary recall

637,032–

654,039
9,936

Other

239,791

587,437

20,871,286

24,112,233

Lease obligations
Deferred tax liabilities

132,543
579,823

154,791
825,557

Retirement benefit liability
Provision for retirement benefits for directors (and other480,759

658,017532,767

534,885

9,870

10,05753,56253,441

Total current liabilities
Non-current liabilities

officers)
Asset retirement obligations
Other
Total non-current liabilities

1,789,328

2,236,751

22,660,614

26,348,984

Share capital
Capital surplus

3,698,680
4,797,107

3,698,680
4,797,189

Retained earnings
Treasury shares

6,464,170(6,007)

8,424,609(6,905)

Total shareholders' equity

14,953,950

16,913,573

1,654,685

2,356,143

Foreign currency translation adjustment
Remeasurements of defined benefit plans(433,882)(72,660)(606,476)(90,573)

Total accumulated other comprehensive income

1,148,142

1,659,093

Non-controlling interests

1,063,506

1,250,852

Total net assets

17,165,599

19,823,520

39,826,214

46,172,505

Total liabilities
Net assets
Shareholders' equity

Accumulated other comprehensive income
Valuation difference on available-for-sale securities

Total liabilities and net assets

4Consolidated statements of income and consolidated statements of comprehensive income
Consolidated statements of income(Thousands of yen)
Fiscal year ended
March 31, 2020

Fiscal year ended
March 31, 2021Net sales

44,485,939

48,532,198

Cost of sales

31,391,482

32,958,857

Gross profit

13,094,457

15,573,340

Reversal of provision for sales returns

630,794

637,032

Provision for sales returns

637,032

654,039

13,088,219

15,556,334

Transportation expenses
Advertising expenses

2,263,416
1,665,787

2,276,291
2,069,064

Promotion expenses
Travel and transportation expenses

1,259,143
410,188

1,033,975
228,761

Provision of allowance for doubtful accounts
Salaries and allowances

2,105
1,911,039

2,839
1,973,347

Bonuses
Provision for bonuses

99,979250,205

170,189
357,813

Provision for bonuses for directors (and other officers)
Retirement benefit expenses

2,073
163,301

77,200163,285

Provision for retirement benefits for directors (and otherofficers)

48,04454,786

Depreciation
Other

264,883
2,962,365

254,0093,334,150

Total selling, general and administrative expenses

11,302,535

11,995,715

1,785,683

3,560,619

Interest income
Dividend income

87,583
115,876

101,752
111,852

Rental income from real estateTechnical advisory fee income

36,81867,09339,13365,920Foreign exchange gains
Other

13,991
99,72016,030138,288

Total non-operating income

421,083

472,978

Non-operating expenses
Interest expenses

60,90537,760

Sales discounts
Other

86,21938,05595,96847,140Total non-operating expenses

185,180

180,869

2,021,586

3,852,727

Gross profit - net
Selling, general and administrative expenses

Operating profit
Non-operating income

Ordinary profit

5

(Thousands of yen)

Extraordinary income
Gain on sale of non-current assets
Gain on sale of investment securities

Fiscal year ended

Fiscal year ended

March 31, 2020

March 31, 2021
11,433

854

–

4,125

11,433

4,980

Loss on sale and retirement of non-current assets
Loss on valuation of investment securities

30,973
2,758

20,141
5,314

Loss on sale of investment securities
Loss on valuation of shares of subsidiaries and associates

1,714
9,726

0
4,062

Impairment losses
Retirement benefits for directors (and other officers)

38,000––3,594Provision of allowance for investment loss
Product voluntary recall related costs

2,267
––
64,765

–
604

9,936
–

86,044

107,815

1,946,975

3,749,892

793,494

1,228,592

Total extraordinary income
Extraordinary losses

Provision for voluntary recall
Other
Total extraordinary losses
Profit before income taxes
Income taxes - current
Income taxes - deferred

119,460(107,596)

Total income taxes

912,954

1,120,995

Profit

1,034,020

2,628,897

Profit attributable to non-controlling interests

263,944

307,198

Profit attributable to owners of parent

770,075

2,321,698

6Consolidated statements of comprehensive income(Thousands of yen)

ProfitOther comprehensive income

Fiscal year ended

Fiscal year ended

March 31, 2020

March 31, 20211,034,020

2,628,897

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

701,458(268,528)

Remeasurements of defined benefit plans, net of tax(29,873)(24,308)

Total other comprehensive income(320,824)

408,621Comprehensive income

713,195

3,037,518

Comprehensive income attributable toComprehensive income attributable to owners of parent

407,438

2,805,710

305,756

231,807

Comprehensive income attributable to non-controllinginterests

7Consolidated statements of changes in equity
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' equity
Total 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

17,165,599

8

Fiscal year ended March 31, 2021
(Thousands of yen)
Shareholders' equity
Share capital
Balance at beginning of period

Capital surplus

3,698,680

Retained earnings

4,797,107

Total shareholders'equityTreasury shares

6,464,170(6,007)

14,953,950

Changes during period
Dividends of surplus(329,648)(329,648)

Profit attributable to ownersof parent

2,321,698

2,321,698

Purchase of treasury shares
Disposal of treasury shares81

Net increase (decrease) in
surplus by change ofconsolidated scope(957)

(957)

60

141

(31,610)(31,610)

Change in scope of
consolidation - foreign
currency translation
adjustment
Net changes in items otherthan shareholders' equity
Total changes during period
Balance at end of period–

81

1,960,438(897)

1,959,623

3,698,680

4,797,189

8,424,609(6,905)

16,913,573

Accumulated other comprehensive income

Balance at beginning of period

Valuationdifference on
available-for-salesecurities

Foreign currencytranslation
adjustment

Remeasurementsof defined benefit
plans

Total accumulated
othercomprehensive
income1,654,685(433,882)(72,660)

1,148,142

Non-controllinginterests

Total net assets

1,063,506

17,165,599

Changes during period
Dividends of surplus(329,648)

Profit attributable to ownersof parent

2,321,698

Purchase of treasury shares(957)

Disposal of treasury shares

141

Net increase (decrease) in
surplus by change ofconsolidated scope(31,610)

Change in scope ofconsolidation - foreign
currency translation
adjustment

27,737

27,737

27,737

Net changes in items otherthan shareholders' equity

701,458(200,331)(17,912)483,214

187,346

670,560

Total changes during period

701,458(172,593)(17,912)510,951

187,346

2,657,921

Balance at end of period

2,356,143(606,476)(90,573)

1,659,093

1,250,852

19,823,520

9

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, 2020

March 31, 2021

1,946,975

3,749,892

Depreciation
Impairment losses

949,379
38,000833,287–

Amortization of goodwill
Increase (decrease) in retirement benefit liability

58,27463,02056,423
213,832

Increase (decrease) in allowance for doubtful accounts
Increase (decrease) in other provisions(8,918)
10,334

7,749
258,171

Increase (decrease) in allowance for investment loss
Interest and dividend income(44,990)(203,460)–(213,605)

Interest expenses
Foreign exchange losses (gains)

60,905
9,938

37,760(23,997)

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

2,758
9,726

5,314
4,062

Loss (gain) on sale of investment securities
Loss (gain) on sale and retirement of property, plant and

1,714(4,124)

19,54019,287–(2,917)–
430,861

3,594(261,516)

2,458,530(451,387)(1,993,755)
3,898,599

Increase (decrease) in accounts payable - other
Decrease (increase) in accounts receivable - other

27,423427,624

1,140,477(265,576)

Increase (decrease) in accrued consumption taxes
Other, net

352,791
288,015(329,862)(453,364)

6,447,058

6,679,732

203,460(60,846)

213,605(38,503)–

2,917

equipment
Insurance claim income
Retirement benefits for directors (and other officers)
Decrease (increase) in trade receivables
Decrease (increase) in inventories
Increase (decrease) in trade payables

SubtotalInterest and dividends received
Interest paid
Proceeds from insurance income
Payments of retirement benefits for directors (and otherofficers)
Income taxes refund (paid)–(3,594)(709,195)(563,219)

Net cash provided by (used in) operating activities

5,880,476

6,290,938

Cash flows from investing activities
Net decrease (increase) in time deposits(9,284)33,847Purchase of property, plant and equipment
Payments for retirement of property, plant and equipment(694,805)(28,404)(2,885,274)(142)

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

13,000(95,718)

3,033(8,964)Purchase of investment securities
Proceeds from sale of investment securities(2,560)2,265(2,660)
7,708

Purchase of shares of subsidiaries
Purchase of investments in non consolidated subsidiary(49,914)––(20,422)

Other, net(17,431)(30,169)

Net cash provided by (used in) investing activities(882,853)(2,903,044)10

(Thousands of yen)

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

Fiscal year ended

Fiscal year ended

March 31, 2020

March 31, 2021

(3,229,376)(2,626,561)

Repayments of lease obligations
Purchase of treasury shares(74,266)(640)(90,470)(957)

Proceeds from disposal of treasury shares
Dividends paid

16(428,556)

141(329,648)

Dividends paid to non-controlling interests(109,924)(51,082)

Net cash provided by (used in) financing activities(3,842,747)(3,098,578)

Effect of exchange rate change on cash and cash equivalents

34,330(176,188)

Net increase (decrease) in cash and cash equivalents

1,189,207

113,127

Cash and cash equivalents at beginning of period
Increase in cash and cash equivalents resulting from inclusion of

4,457,369

5,646,576–

217,1625,646,576

5,976,866

subsidiaries in consolidation
Cash and cash equivalents at end of period11