October 25, 213 Summary of Consolidated Financial Results for the First-Half of Fiscal Year Ending March 31, 214 [Japan Standards] (Consolidated) Company name: MAX Co., Ltd. Stock listing: Tokyo Stock Exchange Securities code: 6454 URL: http://www.max-ltd.co.jp Representative: Hachiro Kawamura, President and CEO TEL: +81-3-3669-816 Inquiries: Yasushi Asami, Managing Executive Officer Date of filing of quarterly report: November 8, 213 Date of commencement of dividend payment - The supplementary explanation document for the first quarter of accounts is created. The briefing for the first quarter of accounts is held. (for investment analysts and fund managers) Yes Yes (Millions of yen rounded down) 1. Consolidated Operating Results for the First-Half of Fiscal Year Ending March 31, 214 (April 1, 213 to September 3, 213) (1) Consolidated Operating Results (Total) (% figures represent year-on-year increase or decrease) Net sales Operating income Ordinary income Net income Millions of yen % Millions of yen % Millions of yen % Millions of yen % First-Half of Fiscal year ending March 214 3,659 11.4 2,187 7.8 2,253 15.3 1,428 86.7 First-Half of Fiscal year ended March 213 27,527 (.7) 2,28 (6.6) 1,954 (5.1) 764 (37.3) (Note) Comprehensive income First-Half of Fiscal year ending March 2,65 million yen (284.9%) 31, 214: First-Half of Fiscal year ended March 536 million yen (-31.7%) 31, 213: First-Half of Fiscal year ending March 214 First-Half of Fiscal year ended March 213 (2) Consolidated Financial Position Net Income per Share Yen Net Income per share after dilution 28.86-15.17 - Yen Total Assets Net Assets Equity ratio Net Assets per Share Millions of yen Millions of yen % Yen As of September 3, 213 8,658 62,54 77.4 1,265.8 As of March 31, 213 83,839 63,784 75.7 1,259.41 (Reference) Shareholders equity: As of September 3, 213: 62,45 million yen As of March 31, 213: 63,48 million yen 2. Dividends Dividends per Share End of Q1 End of Q2 End of Q3 End of Q4 Annual Yen Yen Yen Yen Yen Fiscal year ended March 213 - - - 36. 36. Fiscal year ending March 214 - - Fiscal year ending March 214 (Forecast) (Note) Revision of forecasts on the dividends: No - 36. 36.
3. Forecasts of Consolidated Operating Results for the Fiscal Year Ending March 31, 214 (April 1, 213 to March 31, 214) (% figures represent year-on-year increase or decrease) Net Income Net Sales Operating Income Ordinary Income Net Income per Share Millions of yen % Millions of yen % Millions of yen % Millions of yen % Yen Full year 6, 4.2 4,8 19.2 5, 7.3 3,1 24.5 61.5 (Note) Revision of forecasts on the consolidated operation results: No * Notes (1) Changes in material subsidiaries during the consolidation of this quarter (changes in specific subsidiaries affecting the scope of consolidation): No New: - (Company name: ) Excluded: - (Company name: ) (2)Application of special accounting procedures in the creation of quarterly consolidated financial statements: Yes (3) Changes in Accounting Principles, Changes in Accounting Estimates and Restatements 1) Changes due to revisions to accounting standards, etc.: No 2) Changes other than 1): No 3) Changes in accounting estimate: No 4) Restatement of revisions: No (4) Number of outstanding shares (common stocks) 1) Number of shares outstanding at term-end (including treasury stocks) As of September 3, 213 5,5,626 shares As of March 31, 213: 5,5,626 shares 2) Number of treasury stock at term-end As of September 3, 213: 1,198,833 shares As of March 31, 213: 95,941 shares 3) Number of average stock during term (Quarter accumulation) Six months ended September 3, 213: 49,486,487 shares Six months ended September 3, 212: 5,41,365 shares *Display concerning execution condition of the quarterly review procedure. This quarterly summary of consolidated financial results is excluded from the quarterly review procedure based on the Financial Instruments and Exchange Act, and at the time of indication of the summary of financial results for this quarter, the review procedure of quarterly consolidated financial statements based on the Financial Instruments and Exchange Act has not ended. *Explanation and other special notes regarding the appropriate use of the earnings forecast Statements on the future of our business in these materials, including the earnings forecast, are based on information available at this moment and certain preconditions which we judge as rational and appropriate. Therefore, the actual operating results and other achievements may differ significantly from such statements due to various future important factors. For the preconditions of our earnings forecast and matters to be noticed when using the forecast, please refer to page 8 of the appendix, "1. Qualitative Information Regarding the Financial Results for this Quarter, (3) Explanations Relating to Future Forecasting Information including Consolidated Performance Forecasts.
Table of Contents of the appendix 1. Qualitative Information Regarding the Financial Results for this Quarter...2 (1) Explanations Relating to Operating Results...2 (2) Explanations Relating to the Financial Position...7 (3) Explanations Relating to Future Forecasting Information including Consolidated Performance Forecasts...8 2. Items Regarding Summary Information (Notes)...9 (1) Changes in material subsidiaries during the consolidated accumulation of this quarter...9 (2) Application of special accounting procedures in the creation of quarterly consolidated financial statements...9 (3) Changes in Accounting Principles, Changes in Accounting Estimates and Restatements...9 3. Consolidated Financial Statements in the First-Half...1 (1) Consolidated Balance Sheets in the First-Half...1 (2) Consolidated Statements of Income in the First-Half...12 (3) Consolidated Statement of Cash Flows...14 (4) Notes Relating to the Consolidated Quarterly Financial Statements...16 (Notes Relating to the Assumption of a Going Concern)...16 (Notes When There Have Been Significant Changes in the Amount of Shareholders Equity)...16 (Segment Information)...16 1
[Qualitative Information and Financial Statements] 1. Qualitative Information Regarding the Financial Results for this Quarter (1) Explanations Relating to Operating Results 1) Business results for all companies for the consolidated period under review (H1 consolidated cumulative period: April 1 to September 3, 213) Cumulative H1 in FY 214 Cumulative H1 in FY 213 (Units: Millions of yen, %) Comparison with same quarter of previous fiscal year Increase (decrease) Rate of increase (decrease) Net sales 3,659 27,527 3,132 11.4 Operating income 2,187 2,28 158 7.8 Ordinary income 2,253 1,954 298 15.3 Net income 1,428 764 663 86.7 Yen Net income per share 28.86 15.17 13.69 Operating margin 7.1 7.4 (.3) points During the consolidated cumulative period under review (fiscal year ending March 31, 214, H1), the Japanese economy showed signs of steady recovery, due to economic measures by the national government and fiscal easing by the Bank of Japan. Housing starts increased, as homeowners rushed to start projects before a consumption-tax hike scheduled for April 214. Internationally, however, the global economy remained difficult to forecast, amid lingering uncertainty over fiscal and monetary policy in the United States, continuing debt problems in Europe and a slowdown in growth in emerging economies. Against these mixed conditions, the Max Group moved proactively to enhance customer and enterprise value solving customer problems and issues. Proclaiming a management policy of strengthening relations with, knowing, and obtaining the backing of customers, the Group resolutely pursued implementation of customer-relationship management (CRM). Across all companies and organizations, the Group implemented the sangen principle of focusing on real locations, real goods and real conditions. Revenues increased in the industrial-equipment segment. In the domestic industrial equipment operations, this result was supported by firm domestic housing starts, which boosted sales of air nailers and other construction tools; in North America, housing starts staged a modest recovery, driving growing sales of the Company s unique line of rebar-tying tools. Income also rose in the office-equipment segment, as a recovery in production of photocopiers by OEM customers paced rising shipments in auto-stapler operations. In the HCR-equipment segment, net sales softened slightly. Kawamura Cycle Co., Ltd., a consolidated subsidiary, enjoyed firm sales of new products such as walkers, but these were more than offset by a further decline in orders for wheel chairs from nursing care facilities. Net sales strengthened 11.4% over the same quarter of the previous fiscal year to 3,659 million. Operating income increased 7.8% from the same quarter of the previous fiscal year to 2,187 million. Ordinary income strengthened 15.3% over the same quarter of the previous fiscal year to 2,253 million, helped by a decline in foreign-exchange loss in that period. Net income jumped 86.7% from the same quarter of the previous fiscal year to 1,428 million. Further, in the previous year consolidated first-half a loss of 664 million in unrealized valuation losses in investment securities was booked as an extraordinary loss. Yen Yen - 2
Quarterly Net Sales Trend and Changes Year-on-Year 1 million yen 25 18.9 15.9 2 19.3 12.4 Year-on-year change(%) 11.9 12.2 96.9 96.4 111.2 111.5 % 1 15 131.2 146. 149.3 153.2 133.7 141.5 143.9 156.5 148.7 157.8 1 5 Net sales(1 million yen) Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 FY12 FY13 FY14 Quarterly Earnings Trend 3 1 million yen Operating income(1 million yen) Ordinary income(1 million yen) Quarterly net income(1 million yen) Operating Margin % 25 2 7.3 8.3 6.5 6.9 7.2 7.5 6. 7.2 6.5 7.7 1 15 1 5 9.5 9.9 12.1 5.7 1.6 9.7 1.4 6.4 1.6 13.5 12.3 9.6 8.6 1.6 12.5 1.8 8.6 5.7 14.4 11.2 7.9 9.3 9.7 12.1 1.9 6.3 11.5 7.9 5 1.9-1.2 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2-5 -5 FY12 FY13 FY14 3
2) Results by business sector for the consolidated cumulative period under review Office Equipment Cumulative H1 in FY 214 Cumulative H1 in FY 213 (Units: Millions of yen, %) Comparison with same quarter of previous fiscal year Increase (decrease) Rate of increase (decrease) Net sales 11,17 1,63 1,44 1.4 Operating income 2,58 1,879 178 9.5 Operating margin 18.5 18.7 (.2) points Business results for the office-equipment segment were as follows: Net sales 11,17 million (an increase of 1.4% against the same period of the previous fiscal year), operating income 2,58 million (an increase of 9.5% against the same period of the previous fiscal year), and operating margin 18.5%. A gradual recovery in the photocopier market paced a firming trend in orders for auto-staplers and strong sales of new products such as stationery products, bolstering revenues and income. In domestic office operations, although the sales of time recorder which were introduced in the previous term stabilized, sales of new stationery products including hole puncher that combines dust bar, an industry first, and stapler using paper staples using paper-based consumables contributed to sales resulting in sales equaling those in the same time in the previous year for the business overall. In overseas office operations, the Company carried out marketing activities specific to each country and region, centering on the principal area of staplers. For example, specifications were improved and the palette of color variations was broadened. In the South Asian markets, store displays were enhanced, targeting key bulk retailers in each country, expanding sales and lifting income. In auto-stapler operations, the Company supplied auto-staplers and consumables (staples) to virtually all photocopier manufacturers, both in Japan and overseas. The impact of the European debt crisis has bottomed out and the shipment volume has shown a recovery trend since the third quarter of the previous year. In the first half under review, a firm trend in sales of equipment and consumables secured an increase in revenue. Office Equipment Segment Sales and Operating Margin Trend 1 million yen 12 13.5 95.4 1 113.3 98. 1.9 9.3 89.1 12.7 19.9 11.9 % 12 1 8 Net sales (1 million yen) Year-on-year change(%) 8 6 5.5 54.9 57.6 56.6 5.9 49.6 51.4 58.1 56. 55. 6 4 4 2 2.9 23. 16.6 19.9 19.9 17.5 15.6 18.5 18.9 18.2 2 Operating margin(%) Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 FY12 FY13 FY14 4
Industrial Equipment Cumulative H1 in FY 214 Cumulative H1 in FY 213 (Units: Millions of yen, %) Comparison with same quarter of previous fiscal year Increase (decrease) Rate of increase (decrease) Net sales 17,822 15,689 2,133 13.6 Operating income 274 81 193 238.2 Operating margin 1.5.5 1. point Results in the industrial-equipment segment were: Net sales 17,822 million (an increase of 13.6% over the same period of the previous fiscal year), operating income 274 million (an increase of 238.2% against the same period of the previous fiscal year), and operating margin 1.5%. Paced by a modest recovery in housing starts in the domestic and North American markets, revenues in the industrial equipment and residential-environment operations advanced. However, the cost of overseas produced products due to the weakened yen. Operating income improved slightly over the same period of the previous fiscal year. In domestic industrial-equipment operations, last-minute demand driven by a coming hike in the consumption tax provided the background for steady purchases of new product offerings. Tools for wooden construction including the Company s major product line, high-pressure nailers, compressors and battery-powered tools as well as tools for concrete structures including rebar-tying tools showed strength resulting in increased revenues. In overseas construction-equipment operations, in North America, supported by favorable housing starts as a result of making advances in sales expansion activities including establishing new dealers and bulk deliveries to large projects, the sales of rebar-tying tools and air nailers grew resulting in increased revenues of the overall operations as a whole. In the residential-environment operations, while the sales of floor heaters declined with public construction such as nursery facilities and convalescence facilities having run its course, a gradual recovery in condominium starts supported firm sales of heating, drying and ventilations systems for bathrooms and ventilations systems, the Company s major product line, resulted in increased revenues. Industrial Equipment Segment Sales and Operating Margin Trend 1 million yen % 18 16 14 15.5 19.4 18. 15.3 13.5 1.4 1.7 13.1 113.5 113.7 14 12 1 12 Net sales (1 million yen) Year-on-year change(%) 8 1 8 8 71.2 82.8 83.6 86.9 73.7 83.1 84.2 89.5 83.7 94.4 6 4 6 4 2.7.9.3 1.1 1.3 2.2 1. 1.1.2 3.1 2 2 Operating margin(%) -2 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2-4 FY12 5 FY13 FY14
HCR Equipment Cumulative H1 in FY 214 Cumulative H1 in FY 213 (Units: Millions of yen, %) Comparison with same quarter of previous fiscal year Increase (decrease) Rate of increase (decrease) Net sales 1,729 1,774 (45) (2.6) Operating income (145) 68 (213) - Operating margin (8.4) 3.8 (12.2) points Results in the HCR segment s results were: Net sales 1,729 million (a decrease of 2.6% over the same period of the previous fiscal year) and operating income - 145 million. Sales of products supporting mobility for seniors, such as new wheel chair and walker products and bicycles designed for seniors, contributed positively to sales. However, increased costs caused by the weakened yen resulted in an operating loss. At Kawamura Cycle Co., Ltd., sales of walkers, a new product line, were solid. However, sales in the company s mainstay line of aluminum standard wheel chairs faltered, delivering a slight retreat in revenues. The Home Care & Rehabilitation (HCR) Sales Group sells equipment to support independent living for the elderly. As a means for mobility enabling the seniors to enjoy getting about, the Company is promoting Cool cle-s, a unique bicycle with four wheels to resist falling over to the senior bicycle market including medical institutions. HCR Equipment Segment Sales and Operating Margin Trend 1 million yen 16 14 91.6 97.1 14.1 95.3 16.4 13.4 % 1.1 94.7 12 1 12 1 8 6 9.4 Net sales (1 million yen) 9.6 8.2 7.9 9. 8.7 9.9 Year-on-year change(%) 8.7 9. 8.2 8.2 8 6 4 4 2 1.1 3.7 5. Operating margin(%) 5.8 3.6 1.8 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 6 2.7 4.8 7.3 9.6 FY12 FY13 FY14 2-2
(2) Explanations Relating to the Financial Position 1) Analysis of the Consolidated Balance Sheet Consolidated cumulative period under review (April 1 to September 3, 213 (H1)) Previous consolidated fiscal year (year ended March 31, 213) (Unit: Millions of yen, %) Comparison with position at end of previous consolidated fiscal year Amount of increase (decrease) Rate of increase (decrease) Total assets 8,658 83,839 (3,18) (3.8) Net assets 62,54 63,784 (1,279) (2.) Equity ratio 77.4 75.7 1.7 points Assets decreased 3,18 million in comparison with the position at end of the previous consolidated fiscal year, to 8,658 million. Current assets decreased 5,627 million, due to factors such as a decline of 5,443 million in cash and deposits. Non-current assets grew by 2,446 million, lifted by rises of 2,692 million in investments securities. Liabilities lightened 1,91 million in comparison with the position at end of the previous consolidated fiscal year, to 18,153 million. Current liabilities declined 2,119 million, as notes and accounts payable-trade fell 342 million, short-term loans payable declined 61 million, and income taxes payable decreased by 3 million. Non-current liabilities raised 217 million, as provision for retirement benefits increased 354 million. Net assets decreased 1,279 million in comparison with the position at end of the previous consolidated fiscal year, to 62,54 million. Shareholders equity declined by 1,75 million, as quarterly net income of 1,428 million was more than offset by payment of 1,814 million and purchase of treasury stock of 1,318 million (net assets decrease) in dividends. 2) Analysis of Consolidated Cash Flow The balance of cash and cash equivalents ( funds ) at the end of H1 of the consolidated cumulative fiscal period decreased 5,21 million in comparison with the previous consolidated fiscal year, to 1,872 million. Factors in the status of each type of cash flow in the consolidated cumulative period under review were as follows. (Net cash provided by (used in) operating activities) Funds provided by operating activities in the consolidated cumulative period under review amounted to 1,429 million. Key increases came from quarterly net profit before taxes and adjustments 2,299 million, depreciation and amortization 899 million and increase in notes and accounts receivable-trade 49 million. Key decreases consisted of decrease in notes and accounts payable-trade 53 million and income taxes paid 1,16 million. (Net cash provided by (used in) investment activities) Funds used in investment activities in the consolidated cumulative period under review were 2,893 million. A rough breakdown of this expenditure yields expenditures for purchase of short-term and long term investment securities of 4,623 million and purchase of property, plant and equipment of 737 million, partially offset by proceeds from sales and redemption of short-term and long term investment securities of 2,371 million and proceeds from withdrawal of time deposits of 652 million. (Net cash provided by (used in) financing activities) Funds used in financing activities in the consolidated cumulative period under review equaled 3,784 million. The key component was purchase of treasury stock, amounting to 1,319 million, and cash dividends paid, amounting to 1,89 million. 7
(3) Explanations Relating to Future Forecasting Information including Consolidated Performance Forecasts While the environment surrounding the group continues to be uncertain including stagnations in the European markets associated with the continued debt crisis and slowing in the growth of the emerging countries, and increased prices of raw materials with the weakening yen, supported by the firm construction markets both domestically and in North America and steady recovery in auto-stapler operations, the Company s business performance continues to be strong. Under these conditions, the directors have not revised their forecast for consolidated business results for FY 214, published April 26, 213. Dividends The Company s dividend policy is to maintain a minimum payout ratio of 4%, aiming for 2.5% of net assets dividend ratio, on a consolidated basis. The directors believe that the unclear prospects for the business environment and exchange-rate trends may adversely affect the business results of the Company. However, revenues from operations continue to be firm. In comprehensive consideration of the Company s financial condition, the Company plans to distribute a full-year dividend of 36 per share, equal to the dividend of the previous fiscal year. Payout ratio and dividends to net assets ratio Dividends per share 12 8 4 % ~ 2.9 161.3 ~ 7.5 2.9 3. 111.1 Minimum payout ratio (4%) 77.8 72.8 57.3 3. Target ratio of dividends to net assets (2.5%) 2.9 % 2.8 FY9 FY8 FY1 FY9 FY11 FY1 FY12 FY11 FY13 FY12 FY14 FY13 (Plan) 12 12 11 11 1 9 8 7 6 5 4 3 2 1 Yen 5 45 4 35 3 25 2 15 1 5 36 36 36 36 36 36 FY8 FY9 FY9 FY1 FY1 FY11 FY11 FY12 FY13 FY12 FY14 FY13 (Plan) 8
2. Items Regarding Summary Information (Notes) (1) Changes in material subsidiaries during the consolidated accumulation of this quarter None. (2) Application of special accounting procedures in the creation of quarterly consolidated financial statements (Calculation of tax expenses) Tax expenses are calculated by forming a reasonable estimate of the effective tax rate after application of tax-effect accounting to net income before taxes and adjustments for the consolidated fiscal year, including the consolidated cumulative quarter under review, and multiplying this estimated effective tax rate by the quarterly net income before taxes and adjustments. (3) Changes in Accounting Principles, Changes in Accounting Estimates and Restatements None. 9
3. Consolidated Financial Statements in the First-Half (1) Consolidated Balance Sheets in the First-Half FY 213 (As of March 31, 213) (Millions of yen) Cumulative H1 in FY 214 (As of September 3, 213) ASSETS Current assets Cash and deposits 16,315 1,872 Notes and accounts receivable-trade 13,74 13,376 Short-term investment securities 3,982 4,25 Merchandise and finished goods 4,647 4,645 Work in process 74 7 Raw materials 2,481 2,525 Other 1,914 1,832 Allowance for doubtful accounts (3) (3) Total current assets 43,783 38,155 Non-current assets Property, plant and equipment 18,514 18,496 Intangible assets 221 247 Investments and other assets Investment securities 16,732 19,425 Other 4,598 4,343 Allowance for doubtful accounts (11) (11) Total investments and other assets 21,319 23,758 Total non-current assets 4,56 42,52 Total assets 83,839 8,658 1
(Millions of yen) FY 213 (As of March 31, 213) Cumulative H1 in FY 214 (As of September 3, 213) LIABILITIES Current liabilities Notes and accounts payable-trade 4,12 3,76 Short-term loans payable 2,451 1,85 Income taxes payable 1,78 777 Provision for bonuses 1,354 1,183 Provision for directors' bonuses 64 18 Provision for product-quality assurance 144 143 Other 3,454 2,797 Total current liabilities 12,649 1,53 Non-current liabilities Long-term loans payable 1 15 Provision for retirement benefits 5,968 6,323 Provision for directors' retirement benefits 288 12 Asset retirement obligation 26 26 Negative goodwill 45 41 Other 975 979 Total non-current liabilities 7,45 7,623 Total liabilities 2,55 18,153 NET ASSETS Shareholders equity Capital stock 12,367 12,367 Capital surplus 1,517 1,517 Retained earnings 42,697 42,31 Treasury stock (96) (1,415) Total shareholders equity 65,486 63,781 Other comprehensive incomes Valuation difference on available-for-sale securities 226 773 Revaluation reserve for land (2,228) (2,228) Foreign currency translation adjustment (4) 8 Total of other comprehensive income (2,6) (1,375) Minority interests 34 98 Total net assets 63,784 62,54 Total liabilities and net assets 83,839 8,658 11
(2) Consolidated Statements of Income in the First-Half (Millions of yen) Cumulative H1 in FY 213 (Ended September 3, 212) Cumulative H1 in FY 214 (Ended September 3, 213) Net sales 27,527 3,659 Cost of Sales 16,771 19,87 Gross Profit 1,755 11,572 Selling, general and administrative expenses Salaries 2,72 2,789 Provision for bonuses 654 777 Provision for directors' bonuses 26 18 Retirement benefit expenses 68 735 Provision for directors' retirement benefits 3 23 Packing and delivery expenses 795 895 Promotion expenses 53 68 Depreciation 327 32 Provision of allowance for doubtful accounts Other 2,96 3,142 Total selling, general and administrative expenses 8,727 9,385 Operating income 2,28 2,187 Non-operating income Interest income 83 46 Dividends income 55 55 Amortization of negative goodwill 8 3 Gain on valuation of derivatives 31 - Other 5 45 Total non-operating income 229 151 Non-operating expenses Interest expenses 23 2 Taxes and dues 8 12 Foreign exchange losses 236 3 Other 35 49 Total non-operating expenses 33 86 Ordinary income 1,954 2,253 Extraordinary income Gain on sales of investment securities - 26 Gain on negative goodwill - 43 Gain on product-quality assurance 9 - Total extraordinary income 9 7 Extraordinary loss Impairment loss - 1 Loss on abandonment of noncurrent assets 29 13 Loss on valuation of investment securities 664 - Total extraordinary loss 694 23 Income before income taxes 1,35 2,299 Income taxes 557 865 Income before minority interest 792 1,434 Minority interests in income 27 6 Net income (loss) 764 1,428 12
(Consolidated comprehensive statement of income in the First-Half) Cumulative H1 in FY 213 (Ended September 3, 212) (Millions of yen) Cumulative H1 in FY 214 (Ended September 3, 213) Income before minority interest 792 1,434 Other comprehensive incomes Valuation difference on available-for-sale securities (59) 546 Foreign currency translation adjustment (196) 84 Total of other comprehensive income (255) 631 Comprehensive income 536 2,65 (Breakdown) Comprehensive income relating to shareholders of parental company 52 2,59 Comprehensive income relating to minority shareholders 15 6 13
(3) Consolidated Statement of Cash Flows (Millions of yen) Cumulative H1 in FY 213 (Ended September 3, 212) Cumulative H1 in FY 214 (Ended September 3, 213) Net cash provided by (used in) operating activities Net profit before tax and adjustments 1,35 2,299 Depreciation and amortization 841 899 Impairment loss - 1 Amortization of negative goodwill (8) (3) Increase (decrease) in allowance for doubtful accounts (3) () Loss (gain) on sales of short-term and long term investment securities - (26) Gain on negative goodwill - (43) Increase (decrease) in provision for bonuses (196) (171) Increase (decrease) in provision for directors' bonuses (23) (46) Increase (decrease) in product-quality assurance (12) Increase (decrease) in provision for retirement benefits and directors' retirement benefits 31 167 Interest and dividends income (139) (12) Interest expenses 23 2 Loss (gain) on valuation of derivatives (31) - Foreign exchange losses (gains) (1) (2) Loss on abandonment of noncurrent assets 29 13 Loss (gain) on valuation of investment securities 664 - Decrease (increase) in notes and accounts receivable-trade 948 49 Decrease (increase) in inventories 8 3 Increase (decrease) in notes and accounts payable-trade (239) (53) Increase (decrease) in accrued consumption taxes 1 (147) Decrease (increase) in other assets (128) 196 Increase (decrease) in other liabilities (229) (573) Subtotal 3,75 2,58 Interest and dividends income received 177 12 Interest expenses paid (23) (2) Income taxes (paid) refund (839) (1,16) Net cash provided by (used in) operating activities 2,39 1,429 Net cash provided by (used in) investment activities Purchase of short-term and long term investment securities (2,161) (4,623) Proceeds from sales and redemption of short-term and long term investment securities 3,3 2,371 Purchase of property, plant and equipment (627) (737) Proceeds from sales of property, plant and equipment - Purchase of intangible assets (62) (57) Proceeds from sales of intangible assets - Purchase of investments in subsidiaries - (167) Payments of loans receivable (17) (42) Collection of loans receivable 76 11 Payments into time deposits (56) (4) Proceeds from withdrawal of time deposits 55 652 Net cash provided by (used in) investment activities 56 (2,893) 14
(Millions of yen) Cumulative H1 in FY 213 (Ended September 3, 212) Cumulative H1 in FY 214 (Ended September 3, 213) Net cash provided by (used in) financing activities Decrease in short-term loans payable (72) (551) Proceeds from long-term loans payable - 5 Repayment of long-term loans payable - (5) Purchase of treasury stock (2) (1,319) Cash dividends paid (1,812) (1,89) Cash dividends paid to minority shareholders (21) (1) Repayments of lease obligations (17) (13) Net cash provided by (used in) financing activities (2,16) (3,784) Effect of exchange rate change on cash and cash equivalents (17) 46 Net increase (decrease) in cash and cash equivalents 772 (5,21) Balance of cash and cash equivalents, beginning of the period 14,387 16,73 Balance of cash and cash equivalents, end of the period 15,16 1,872 15
(4) Notes Relating to the Consolidated Quarterly Financial Statements (Notes Relating to the Assumption of a Going Concern) None. (Notes When There Have Been Significant Changes in the Amount of Shareholders Equity) The Company purchased treasury shares pursuant to a resolution of the board of directors meeting held May 13, 213. By this purchase, treasury shares increased 1,316 million during the consolidated first quarter to bring the balance as of end of the consolidated quarter under review to 1,415 million. (Segment Information) First-half in the fiscal year ended March 31, 213 (From April 1, 212 to September 3, 212) 1) Information on the amount of sales, profit and losses for reported segments Net Sales Net sales to outside customers Internal sales between segments, or exchange Report segment Office Equipment Industrial Equipment HCR Equipment (Millions of yen) Total 1,63 15,689 1,774 27,527 - - - - Total 1,63 15,689 1,774 27,527 Segment profit or segment loss 1,879 81 68 2,28 (Note) The segment profit listed here matches the operating income reported in the Consolidated Statements of Income in the First-Half. 2) Difference between the total amount of income (loss) of reporting segments and the amount appropriated in the quarterly consolidated balance sheet, as well as key details of said difference (items related to adjustment of differences) No items apply. 16
First-half in the fiscal year ending March 31, 214 (From April 1, 213 to September 3, 213) 1) Information on the amount of sales, profit and losses for reported segments Net Sales Net sales to outside customers Internal sales between segments, or exchange Report segment Office Equipment Industrial Equipment HCR Equipment (Millions of yen) Total 11,17 17,822 1,729 3,659 - - - - Total 11,17 17,822 1,729 3,659 Segment profit or segment loss 2,58 274 (145) 2,187 2) Difference between the total amount of income (loss) of reporting segments and the amount appropriated in the quarterly consolidated balance sheet, as well as key details of said difference (items related to adjustment of differences) No items apply. 17