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, 2019
(Based on Japanese GAAP)May 13, 2019
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 27, 2019

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

June 28, 2019
June 28, 2019

Preparation of supplementary material on financial results:
Holding of financial results meeting:NoYes(for institutional investors and analysts)(Amounts less than one million yen are rounded down)
1. Consolidated financial results for the year ended March 31, 2019 (from April 1, 2018 to March 31, 2019)(1) Consolidated operating results
Net salesYear ended March 31, 2019Year ended March 31, 2018

Millions of yen
41,24347,740Earnings 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%(13.6)
1,136 (55.1)
1,332(50.4)
693(60.0)
12.7
2,527
11.0
2,688
11.7
1,735
25.0
Profit attributable toOrdinary profit/total Operating profit/net
owners ofassets
sales
parent/equity
Yen%%%–
4.2
3.1
2.8
–
13.4
6.8
5.3

Diluted earnings pershare

Yen
42.09
123.10Year ended March 31, 2019Year ended March 31, 2018
(2) Consolidated financial position

Total assets
As of March 31, 2019
As of March 31, 2018

Net assets

Equity ratio

Millions of yen
42,18043,985

Millions of yen
17,02817,664

Cash flows fromoperating activities
Millions of yen(1,322)
1,444

Cash flows frominvesting activities
Millions of yen(1,765)(1,084)

Net assets per share%
38.3
38.3

Yen
980.45
1,022.40(3) Consolidated cash flows

Year ended March 31, 2019Year ended March 31, 2018

Cash flows from
Cash and cash equivalents
at end of period
financing activities
Millions of yen
Millions of yen
1,234
4,457
4,116
6,438

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

Year ended March 31, 2018Year ended March 31, 2019Year ending March 31, 2020
(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
26.00

26.00
26.00

428
428

21.1
61.8

3.1
2.6–––

26.00

26.00

143.3

3. Forecast of consolidated financial results for the year ending March 31, 2020 (from April 1, 2019 to March 31, 2020)
Net sales
Millions of yen
Six months ending
September 30, 2019
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

24,100

9.4

920

774.7

870

662.9

360

549.4

21.84

43,700

6.0

1,850

62.8

1,910

43.3

990

42.7

60.06

4. Notes(1) Changes in significant subsidiaries during the year ended March 31, 2019(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:
Yes
Changes in accounting policies due to other reasons:
Changes in accounting estimates:

No
No

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, 201916,490,000 shares As of March 31, 201816,490,000 shares

Number of treasury shares at the end of the period
As of March 31, 2019

7,061 shares As of March 31, 2018

6,382 shares

Average number of shares during the period
Year ended March 31, 201916,483,239 shares Year ended March 31, 20182

14,097,544 shares

Consolidated financial statements
Consolidated balance sheets(Thousands of yen)
As of March 31, 2018

As of March 31, 2019

AssetsCurrent assets
Cash and deposits
Notes and accounts receivable - trade

7,074,816
12,112,711

5,087,032
12,463,230

Electronically recorded monetary claims - operating
Merchandise and finished goods

259,592
6,691,863

133,383
6,893,484

Work in process
Raw materials and supplies

925,916
2,082,243

1,051,239
2,016,164

Other
Allowance for doubtful accounts

1,178,906(1,311)

1,201,437(1,404)

Total current assets

30,324,738

28,844,567

5,737,922(3,971,512)

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

Buildings and structures, net

1,766,410

1,702,764

Machinery, equipment and vehicles
Accumulated depreciation

10,072,584(8,143,341)

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

1,929,243

1,841,995

3,241,202(2,987,841)

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

253,360

255,459

787,355
191,390785,086
120,324(159,158)(93,337)

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

32,232

26,987Construction in progress

155,643

205,732

4,924,245

4,818,025

901,646

799,597

790,470
512,887

677,200
579,157

Total intangible assets

2,205,005

2,055,956

Investments and other assets
Investment securities

6,077,465

6,040,345

Deferred tax assets
Retirement benefit asset

98,735
108,553

111,342
89,888

Other
Allowance for investment loss

429,699(41,752)

408,260(44,990)

Allowance for doubtful accounts(141,530)(142,629)

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

Total investments and other assetsTotal non-current assets
Total assets

3

6,531,170

6,462,217

13,660,420

13,336,198

43,985,159

42,180,766

(Thousands of yen)
As of March 31, 2018

As of March 31, 2019

Liabilities
Current liabilities
Notes and accounts payable - trade

4,863,771

3,944,914

Electronically recorded obligations - operating
Short-term loans payable

2,422,715
10,103,522

2,221,516
13,135,785

Current portion of long-term loans payable
Lease obligations

1,250,000
16,503–
9,317

Accounts payable - other
Income taxes payable

3,418,228
398,465

2,403,847
172,430

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

573,546
68,000415,264–Provision for sales rebates
Provision for sales returns

373,213670,301

438,741
651,095

Other

253,763

185,701

24,412,031

23,578,614

Lease obligations
Deferred tax liabilities

8,842
870,630

17,670603,525

Retirement benefit liability
Provision for retirement benefits for directors (and other

423,094

402,685

545,510

488,771

Total current liabilities
Non-current liabilities

officers)
Asset retirement obligationsOther
Total non-current liabilities

9,508

9,687

51,53351,472

1,909,119

1,573,812

26,321,151

25,152,427

Capital stock
Capital surplus

3,698,680
4,815,309

3,698,680
4,797,103

Retained earnings
Treasury shares

5,894,312(4,162)

6,159,494(5,379)Total shareholders' equity

14,404,138

14,649,898

2,560,863

2,059,882(47,134)(64,960)(508,004)(41,098)

2,448,768

1,510,779

811,100

867,661

17,664,008

17,028,338

43,985,159

42,180,766

Total liabilities
Net assets
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Consolidated statements of income and consolidated statements of comprehensive income
Consolidated statements of income(Thousands of yen)
Fiscal year ended
March 31, 2018

Fiscal year ended
March 31, 2019

Net sales

47,740,096

41,243,165

Cost of sales

31,688,756

29,128,148

Gross profit

16,051,340

12,115,016

Reversal of provision for sales returns

578,441

650,715

Provision for sales returns

668,605

630,794

15,961,175

12,134,937

Transportation expenses
Advertising expenses

2,091,605
3,109,896

2,135,155
2,117,672

Promotion expenses
Traveling and transportation expenses

2,090,289
421,778

761,659
461,565

Provision of allowance for doubtful accounts
Salaries and allowances

9,074
1,838,213

2,087
1,896,006

Bonuses
Provision for bonuses

98,682365,01083,043242,323

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

68,000130,359–155,690

Provision for retirement benefits for directors (and otherofficers)

52,82650,746

Depreciation
Other

241,022
2,917,275

230,335
2,862,604

Total selling, general and administrative expenses

13,434,035

10,998,889

2,527,140

1,136,047

Interest income
Dividend income

31,474
92,682

34,550105,027

Real estate rent
Technical advisory fee

39,83564,762

41,221
67,042

Other

111,429

100,807

Total non-operating income

340,185

348,649

Interest expenses
Sales discounts

59,99599,53039,45282,407

Foreign exchange losses
Other

9,572
9,529

13,943
16,410178,626

152,2132,688,698

1,332,482

Gross profit - net
Selling, general and administrative expenses

Operating profit
Non-operating income

Non-operating expenses

Total non-operating expenses
Ordinary profit

5

(Thousands of yen)

Extraordinary income
Gain on sales of non-current assets

Fiscal year ended

Fiscal year ended

March 31, 2018

March 31, 2019
4,790

3,201

Gain on sales of investment securities
Insurance income–8,361

9,477
28,170Total extraordinary income

13,15140,850694

64

Loss on valuation of shares of subsidiaries and associates
Retirement benefits for directors (and other officers)

25,772––
28,400

Expenses related to advanced repayment of loans
Loss on disaster–
28,76029,777–

Provision of allowance for investment loss

41,752

4,671

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

96,97962,913

Profit before income taxes

Total extraordinary losses

2,604,870

1,310,419

Income taxes - current
Income taxes - deferred

897,493(146,706)

490,398(69,488)

Total income taxes

750,787

420,9091,854,083

889,509

118,731

195,753

1,735,351

693,756

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

6

Consolidated statements of comprehensive income(Thousands of yen)

ProfitOther comprehensive income

Fiscal year ended

Fiscal year ended

March 31, 2018

March 31, 2019

1,854,083

889,509

Valuation difference on available-for-sale securities
Foreign currency translation adjustment

1,038,179
28,800(500,980)(503,643)

Remeasurements of defined benefit plans, net of tax(13,980)

30,1481,053,000(974,476)

Comprehensive income

Total other comprehensive income

2,907,083(84,966)

Comprehensive income attributable toComprehensive income attributable to owners of parent

2,821,222(244,232)

85,860159,266

Comprehensive income attributable to non-controllinginterests

7

Consolidated statements of changes in equity
Fiscal year ended March 31, 2018
(Thousands of yen)
Shareholders' equity
Capital stock
Balance at beginning of current
periodCapital surplus

3,698,680

Retained earnings

1,034,223

Total shareholders'equity

Treasury shares

4,464,774(1,573,052)

7,624,625Changes of items during period
Dividends of surplus(305,814)(305,814)

Profit attributable to ownersof parent

1,735,351

1,735,351

Purchase of treasury shares
Disposal of treasury shares

3,483,660

Change in ownership interestof parent due to transactions
with non-controlling interests

297,425(7,160)(7,160)1,576,050

5,059,710
297,425

Net changes of items otherthan shareholders' equity
Total changes of items during
periodBalance at end of current period–

3,781,085

1,429,537

1,568,890

6,779,513

3,698,680

4,815,3095,894,312(4,162)

14,404,138

Accumulated other comprehensive income

Balance at beginning of current
periodValuationdifference on
available-for-salesecurities

Foreign currencytranslation
adjustment

Remeasurementsof defined benefit
plans

Total accumulated
othercomprehensive
income1,522,683(132,497)(52,025)

1,338,160

Non-controllinginterests

Total net assets

768,364

9,731,150

Changes of items during period
Dividends of surplus(305,814)

Profit attributable to ownersof parent

1,735,351

Purchase of treasury shares(7,160)

Disposal of treasury shares

5,059,710

Change in ownership interestof parent due to transactions
with non-controlling interests

297,425

Net changes of items otherthan shareholders' equity

1,038,179

85,363(12,935)

1,110,608

42,736

1,153,345

Total changes of items during
period

1,038,179

85,363(12,935)

1,110,608

42,736

7,932,858

Balance at end of current period

2,560,863(47,134)(64,960)

2,448,768

811,100

17,664,008

8

Fiscal year ended March 31, 2019
(Thousands of yen)
Shareholders' equity
Capital stock
Balance at beginning of current
periodCapital surplus

3,698,680

Retained earnings

4,815,309

Total shareholders'equity

Treasury shares

5,894,312(4,162)

14,404,138

Changes of items 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 of items otherthan shareholders' equity
Total changes of items during
periodBalance at end of current 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 current
periodValuationdifference 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 of items during period
Dividends of surplus(428,574)

Profit attributable to ownersof parent

693,756

Purchase of treasury shares(1,217)

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

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

23,861(937,989)

56,560(881,429)

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

23,861(937,989)

56,560(635,669)

Balance at end of current period

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

1,510,779

867,661

17,028,338

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, 2018

March 31, 2019

2,604,870

1,310,419

Depreciation
Amortization of goodwill

856,658
61,078871,809
58,103

Increase (decrease) in retirement benefit liability
Increase (decrease) in allowance for doubtful accounts

102,348
13,44914,511
6,316

Increase (decrease) in other provision
Increase (decrease) in allowance for investment loss

472,799
41,752(218,047)
3,237Interest and dividend income
Interest expenses(124,157)
59,995(139,578)
39,452Foreign exchange losses (gains)
Loss on valuation of shares of subsidiaries and associates

9,572
25,772(20,150)–

Loss (gain) on sales of investment securities
Loss (gain) on sales and retirement of property, plant and–(9,477)(4,095)(3,136)–28,400–(1,958,603)

29,777(464,627)

28,760(8,361)–(28,170)

Decrease (increase) in inventories
Increase (decrease) in notes and accounts payable - trade(400,157)
307,539(420,224)(1,010,967)

Increase (decrease) in accounts payable - other
Other, net

2,558
108,604(575,959)(213,901)

2,200,384(742,214)Interest and dividend income received
Proceeds from insurance income

124,157
8,361

139,578
28,170Interest expenses paid
Payments for retirement benefits for directors (and other(57,409)(44,201)–(28,400)–(29,777)

equipment
Retirement benefits for directors (and other officers)
Expenses related to advanced repayment of loans
Decrease (increase) in notes and accounts receivable - trade
Loss on disaster
Insurance income

Subtotalofficers)
Payments related to advanced repayment of loans
Income taxes (paid) refund(831,304)(645,492)

Net cash provided by (used in) operating activities

1,444,189(1,322,336)

155,478(1,180,431)(9,995)(972,141)

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

5,032(3,910)5,228(112,737)

Purchase of investment securities
Proceeds from sales of investment securities(2,383)–(2,475)30,985Purchase of shares of subsidiaries
Other, net(58,625)–(693,535)(10,912)(1,084,840)(1,765,582)

Cash flows from investing activities
Net decrease (increase) in time deposits
Purchase of property, plant and equipment

Net cash provided by (used in) investing activities

10(Thousands of yen)

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

Fiscal year ended

Fiscal year ended

March 31, 2018

March 31, 2019

(564,937)

3,055,726

Repayments of long-term loans payable
Repayments of lease obligations(312,742)(25,884)(1,250,000)(21,498)

Purchase of treasury shares
Proceeds from disposal of treasury shares(7,170)5,054,905(1,217)–Proceeds from share issuance to non-controlling shareholders
Cash dividends paid

470,753(305,814)–(428,574)

Dividends paid to non-controlling interests
Payments from changes in ownership interests in subsidiaries(87,388)(97,476)(105,111)(22,347)

4,116,610

1,234,611

that do not result in change in scope of consolidation
Net cash provided by (used in) financing activities
Effect of exchange rate change on cash and cash equivalents

9,689(127,855)

Net increase (decrease) in cash and cash equivalents

4,485,649(1,981,163)

Cash and cash equivalents at beginning of period

1,952,883

6,438,532

Cash and cash equivalents at end of period

6,438,532

4,457,369

11