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 Non-Consolidated Financial Results
for the Year Ended January 31, 2018
(Based on Japanese GAAP)
March 16, 2018 Company name: Morozoff Limited
Stock exchange listing: Tokyo
Stock code: 2217 URL http://www.morozoff.co.jp/
Representative: Representative Director and President Shinji Yamaguchi
Inquiries: Senior Managing Director Yoshinori Yamaoka TEL 078-822-5000
Scheduled date of ordinary general meeting of shareholders: April 25, 2018 Scheduled date to file Securities Report: April 26, 2018 Scheduled date to commence dividend payments: April 26, 2018 Preparation of supplementary material on financial results: No
Holding of financial results meeting: No
(Amounts less than one million yen are rounded down) 1. Non-consolidated financial results for the year ended January 31, 2018 (from February 1, 2017 to January 31, 2018)
(1) Non-consolidated operating results Percentages indicate year-on-year changes
Net sales Operating profit Ordinary profit Profit
Millions of yen % Millions of yen % Millions of yen % Millions of yen % Year ended January 31, 2018 29,600 1.5 2,405 19.7 2,472 19.6 1,656 35.0 Year ended January 31, 2017 29,167 1.7 2,010 62.8 2,067 54.6 1,226 60.3
Earnings per share Diluted earnings per
share Profit/equity
Ordinary profit/total assets
Operating profit/net sales
Yen Yen % % %
Year ended January 31, 2018 463.04 – 11.0 10.7 8.1
Year ended January 31, 2017 341.03 – 8.9 9.4 6.9
(2) Non-consolidated financial position
Total assets Net assets Equity ratio Net assets per share
Millions of yen Millions of yen % Yen
As of January 31, 2018 23,680 15,686 66.2 4,391.15
As of January 31, 2017 22,546 14,343 63.6 3,991.08
(3) Non-consolidated cash flows
Cash flows from
operating activities
Cash flows from investing activities
Cash flows from financing activities
Cash and cash equivalents at end of period
Millions of yen Millions of yen Millions of yen Millions of yen
Year ended January 31, 2018 1,992 (1,572) (374) 1,629
Year ended January 31, 2017 2,121 (1,146) (531) 1,583
2. Cash dividends
Annual dividends per share Total cash
dividends (Total)
Dividend payout ratio (Non-consolidated)
Ratio of dividends to net assets (Non-consolidated)
1st quarter-end 2nd quarter-end 3rd quarter-end Fiscal year-end Total
Yen Yen Yen Yen Yen Millions of yen % %
Year ended January 31, 2017 – 0.00 – 7.00 7.00 251 20.5 1.8
3. Forecast of non-consolidated financial results for the year ending January 31, 2019 (from February 1, 2018 to January 31, 2019)
Percentages indicate year-on-year changes
Net sales Operating profit Ordinary profit Profit Earnings per share
Millions of yen % Millions of yen % Millions of yen % Millions of yen % Yen Six months ending
July 31, 2018 14,020 (0.9) 1,130 (9.6) 1,160 (11.7) 750 (15.8) 209.65 Full year 29,400 (0.7) 2,320 (3.6) 2,350 (5.0) 1,500 (9.4) 419.30
4. Notes
(1) 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: No
Changes in accounting estimates: No
Restatement of prior period financial statements: No
(2) Number of issued shares (common shares)
Total number of issued shares at the end of the period (including treasury shares)
As of January 31, 2018 3,669,226 shares As of January 31, 2017 3,669,226 shares
Number of treasury shares at the end of the period
As of January 31, 2018 96,859 shares As of January 31, 2017 75,433 shares
Average number of shares during the period
Non-consolidated financial statements
Non-consolidated balance sheets
(Thousands of yen)
As of January 31, 2017 As of January 31, 2018
Assets
Current assets
Cash and deposits 1,583,583 2,619,296
Notes receivable - trade – 4,860
Accounts receivable - trade 5,398,815 5,549,613
Securities 2,100,410 1,500,790
Merchandise and finished goods 2,241,577 2,106,530
Work in process 305,411 279,603
Raw materials and supplies 394,285 413,188
Prepaid expenses 30,667 29,441
Deferred tax assets 139,668 134,979
Short-term loans receivable 587 10,000
Accounts receivable - other 15,968 14,844
Other 36,064 32,264
Allowance for doubtful accounts (21,400) (22,000)
Total current assets 12,225,639 12,673,411
Non-current assets
Property, plant and equipment
Buildings 6,429,621 7,064,408
Accumulated depreciation (4,258,531) (4,416,422)
Buildings, net 2,171,090 2,647,985
Structures 471,257 474,390
Accumulated depreciation (391,853) (400,462)
Structures, net 79,403 73,928
Machinery and equipment 6,105,914 6,284,897
Accumulated depreciation (5,135,238) (5,331,613)
Machinery and equipment, net 970,675 953,284
Vehicles 26,713 32,928
Accumulated depreciation (25,436) (25,503)
Vehicles, net 1,276 7,425
Tools, furniture and fixtures 2,870,495 2,845,147
Accumulated depreciation (2,445,846) (2,431,357)
Tools, furniture and fixtures, net 424,649 413,789
Land 3,234,338 3,234,338
Construction in progress 30,812 162,778
Total property, plant and equipment 6,912,246 7,493,529
Intangible assets
Telephone subscription right 33,489 33,490
Trademark right 483 383
Right of using facilities 1,555 1,327
Software 89,403 113,710
(Thousands of yen)
As of January 31, 2017 As of January 31, 2018
Investments and other assets
Investment securities 2,399,336 2,435,496
Shares of subsidiaries and associates 114,729 114,729
Investments in capital 49,646 49,646
Lease and guarantee deposits 532,123 558,733
Life insurance funds 162,717 181,042
Long-term prepaid expenses 25,535 18,186
Other – 6,850
Total investments and other assets 3,284,090 3,364,685
Total non-current assets 10,321,269 11,007,127
Total assets 22,546,909 23,680,538
Liabilities
Current liabilities
Notes payable - trade 89,806 –
Electronically recorded obligations - operating 1,873,222 1,733,368
Accounts payable - trade 1,079,736 1,217,041
Short-term loans payable 1,850,000 1,850,000
Accounts payable - other 72,117 48,274
Accrued expenses 918,938 925,084
Income taxes payable 575,640 533,764
Accrued consumption taxes 484,481 474,550
Deposits received 36,479 33,957
Provision for bonuses 239,950 240,530
Notes payable - facilities 55,017 26,640
Electronically recorded obligations-facilities 36,579 136,009
Total current liabilities 7,311,969 7,219,221
Non-current liabilities
Deferred tax liabilities 212,412 293,614
Deferred tax liabilities for land revaluation 202,735 202,735
Provision for retirement benefits 365,467 158,452
Provision for environmental measures 7,236 4,286
Asset retirement obligations 76,663 89,044
Other 27,308 26,390
Total non-current liabilities 891,823 774,523
(Thousands of yen)
As of January 31, 2017 As of January 31, 2018
Net assets
Shareholders' equity
Capital stock 3,737,467 3,737,467
Capital surplus
Legal capital surplus 3,918,352 3,918,352
Other capital surplus 3,144 3,227
Total capital surpluses 3,921,497 3,921,580
Retained earnings
Legal retained earnings 614,883 614,883
Other retained earnings
Reserve for advanced depreciation of non-current
assets 156,611 156,611
Reserve for special depreciation 11,147 –
General reserve 2,300,000 2,300,000
Retained earnings brought forward 2,784,385 4,200,439
Total retained earnings 5,867,028 7,271,935
Treasury shares (244,931) (369,904)
Total shareholders' equity 13,281,061 14,561,078
Valuation and translation adjustments
Valuation difference on available-for-sale securities 771,915 835,575
Revaluation reserve for land 290,138 290,138
Total valuation and translation adjustments 1,062,054 1,125,714
Total net assets 14,343,116 15,686,793
Non-consolidated statements of income
(Thousands of yen)
Fiscal year ended January 31, 2017
Fiscal year ended January 31, 2018
Net sales 29,167,273 29,600,498
Cost of sales
Beginning finished goods 2,093,019 2,241,577
Cost of products manufactured 14,425,261 14,111,943
Purchase of finished goods 972,336 943,753
Transfer from other account 19,261 20,718
Total 17,509,879 17,317,993
Transfer to other account 148,247 128,377
Ending finished goods 2,241,577 2,106,530
Total cost of sales 15,120,054 15,083,085
Gross profit 14,047,219 14,517,413
Selling, general and administrative expenses 12,037,066 12,111,645
Operating profit 2,010,152 2,405,768
Non-operating income
Interest income 204 60
Interest on securities 2,032 573
Dividend income 35,156 38,124
Purchase quantity based dividend 32,170 23,570
Electrical sales income 11,673 12,161
Miscellaneous income 24,853 29,239
Total non-operating income 106,091 103,731
Non-operating expenses
Interest expenses 31,498 27,832
Office cancellation expenses 7,094 –
Electricali sales expense 7,845 6,876
Miscellaneous loss 2,315 2,191
Total non-operating expenses 48,754 36,901
Ordinary profit 2,067,489 2,472,598
Extraordinary income
Gain on sales of non-current assets 6 –
Gain on sales of investment securities 6,686 78,272
Total extraordinary income 6,693 78,272
Extraordinary losses
Loss on sales and retirement of non-current assets 28,542 18,026
Impairment loss 62,002 16,266
Total extraordinary losses 90,544 34,293
Profit before income taxes 1,983,637 2,516,578
Income taxes - current 738,077 801,322
Income taxes - deferred 18,847 58,783
Total income taxes 756,924 860,105
Non-consolidated statements of changes in equity
Fiscal year ended January 31, 2017
(Thousands of yen)
Shareholders' equity
Capital stock
Capital surplus Retained earnings
Legal
capital
surplus
Other
capital
surplus
Total capital
surplus
Legal
retained
earnings
Other retained earnings
Total
retained
earnings Reserve for
advanced
depreciation
of
non-current
assets
Reserve for special
depreciation
General
reserve
Retained
earnings
brought
forward
Balance at beginning of
current period
3,737,467 3,918,352 3,076 3,921,429 614,883 152,911 21,712 2,300,000 1,695,522 4,785,030
Changes of items
during period
Purchase of
treasury shares
Disposal of
treasury shares 67 67
Dividends of
surplus (144,715) (144,715)
Profit 1,226,713 1,226,713
Provision of
reserve for
advanced
depreciation of
non-current
assets
3,699 (3,699) –
Provision of reserve for
special
depreciation
227 (227) –
Reversal of
reserve for
special
depreciation
(10,791) 10,791 –
Net changes of
items other than
shareholders' equity
Total changes of
items during period – – 67 67 – 3,699 (10,564) – 1,088,862 1,081,997
Balance at end of
Shareholders' equity Valuation and translation adjustments
Total net
assets Treasury
shares
Total
shareholders'
equity
Valuation difference on
available-for-sale
securities
Revaluation
reserve for
land
Total
valuation and
translation
adjustments
Balance at
beginning of
current period
(143,557) 12,300,369 500,421 279,266 779,688 13,080,057
Changes of items
during period
Purchase of
treasury shares (101,586) (101,586) (101,586)
Disposal of
treasury shares 212 280 280
Dividends of
surplus (144,715) (144,715)
Profit 1,226,713 1,226,713
Provision of
reserve for advanced
depreciation of
non-current
assets
– –
Provision of
reserve for
special
depreciation
– –
Reversal of
reserve for special
depreciation
– –
Net changes of
items other than
shareholders'
equity
271,494 10,872 282,366 282,366
Total changes of
items during period (101,373) 980,691 271,494 10,872 282,366 1,263,058
Balance at end of
Fiscal year ended January 31, 2018
(Thousands of yen)
Shareholders' equity
Capital
stock
Capital surplus Retained earnings
Legal capital
surplus
Other capital
surplus
Total capital
surplus
Legal retained
earnings
Other retained earnings
Total retained
earnings Reserve for
advanced
depreciation
of non-current
assets
Reserve for
special
depreciation
General
reserve
Retained
earnings
brought forward
Balance at
beginning of
current period
3,737,467 3,918,352 3,144 3,921,497 614,883 156,611 11,147 2,300,000 2,784,385 5,867,028
Changes of items
during period
Purchase of
treasury shares
Disposal of
treasury shares 83 83
Dividends of
surplus (251,565) (251,565)
Profit 1,656,472 1,656,472
Provision of
reserve for
advanced
depreciation of non-current
assets
Provision of
reserve for
special
depreciation
Reversal of
reserve for
special
depreciation
(11,147) 11,147 –
Net changes of items other than
shareholders'
equity
Total changes of
items during period – – 83 83 – – (11,147) – 1,416,054 1,404,906
Balance at end of
Shareholders' equity Valuation and translation adjustments
Total net
assets Treasury
shares
Total
shareholders'
equity
Valuation difference on
available-for-sale
securities
Revaluation
reserve for
land
Total
valuation and
translation
adjustments
Balance at
beginning of
current period
(244,931) 13,281,061 771,915 290,138 1,062,054 14,343,116
Changes of items
during period
Purchase of
treasury shares (125,116) (125,116) (125,116)
Disposal of
treasury shares 143 226 226
Dividends of
surplus (251,565) (251,565)
Profit 1,656,472 1,656,472
Provision of
reserve for advanced
depreciation of
non-current
assets
– –
Provision of
reserve for
special
depreciation
– –
Reversal of
reserve for special
depreciation
– –
Net changes of
items other than
shareholders'
equity
63,659 – 63,659 63,659
Total changes of
items during period (124,972) 1,280,017 63,659 – 63,659 1,343,677
Balance at end of
Non-consolidated statements of cash flows
(Thousands of yen)
Fiscal year ended January 31, 2017
Fiscal year ended January 31, 2018
Cash flows from operating activities
Profit before income taxes 1,983,637 2,516,578
Depreciation 686,338 670,762
Impairment loss 62,002 16,266
Increase (decrease) in provision for bonuses 15,630 580
Increase (decrease) in provision for retirement benefits (4,899) (207,014) Increase (decrease) in allowance for doubtful accounts (1,100) 600
Interest expenses 31,498 27,832
Interest and dividend income (37,393) (38,759)
Loss (gain) on sales of investment securities (6,686) (78,272) Loss (gain) on sales and retirement of non-current assets 28,535 18,026 Decrease (increase) in notes and accounts receivable - trade 288,625 (155,657)
Decrease (increase) in inventories (139,048) 141,951
Increase (decrease) in notes and accounts payable - trade (197,528) (92,355) Increase (decrease) in accrued consumption taxes (8,393) (9,930)
Other, net (141,421) 53,909
Subtotal 2,559,797 2,864,518
Interest and dividend income received 38,501 43,562
Interest expenses paid (30,094) (27,768)
Income taxes paid (446,884) (887,915)
Net cash provided by (used in) operating activities 2,121,319 1,992,396
Cash flows from investing activities
Payments into time deposits (490,000) (990,000)
Proceeds from withdrawal of time deposits 490,000 –
Purchase of securities (4,405,394) (3,302,765)
Proceeds from sales and redemption of securities 3,999,919 3,900,511 Purchase of property, plant and equipment and intangible
assets (636,749) (1,252,013)
Proceeds from sales of property, plant and equipment and
intangible assets 607 100
Payments for asset retirement obligations (7,960) –
Purchase of investment securities (5,217) (5,336)
Proceeds from sales and redemption of investment securities 44,723 138,541 Purchase of shares of subsidiaries and associates (114,729) –
Payments of loans receivable (300) (9,951)
Collection of loans receivable 1,311 587
Payments for lease and guarantee deposits (48,183) (33,303)
Proceeds from collection of lease and guarantee deposits 43,811 6,694
Purchase of long-term prepaid expenses (231) (150)
Other payments (18,301) (25,124)
Net cash provided by (used in) investing activities (1,146,694) (1,572,210)
Cash flows from financing activities
Repayments of long-term loans payable (283,800) –
