d561d5cd-1a5e-4445-b680-a66981e2fc1e.pdf Financial Results for the Second Quarter ended September 30, 2015

(Consolidated financial results have been prepared in accordance with accounting principles generally accepted in Japan)

November 13, 2015

Company name:

HANWA Co.,Ltd. Listed stock exchange: Tokyo

Stock exchange code: 8078

(URL http://www.hanwa.co.jp)

Representative: Enquiries:

Hironari Furukawa President

Atsuhiro Moriguchi Director, Senior Managing Executive Officer

TEL 81 - 3 - 3544 - 2000

The date of issue of audited financial statements: November 13, 2015 The date of payout of dividend: December 8, 2015

(Rounded down to millions of yen)

１．Consolidated financial results for the second quarter ended September 30, 2015

  1. Consolidated operating results （％ of change from the same period of previous year）


    Net sales

    Operating income

    Ordinary income

    Net income attributable to owners of the parent

    For the second quarter

    (Millions of yen)

    (％)

    (Millions of yen)

    (％)

    (Millions of yen)

    (％)

    (Millions of yen)

    (％)

    ended September 30, 2015

    788,216

    (8.5)

    8,170

    (9.4)

    6,953

    1.3

    6,053

    52.0

    ended September 30, 2014

    861,116

    8.9

    9,019

    28.4

    6,861

    1.6

    3,981

    5.0

    Note: Comprehensive income For the second quarter ended September 30, 2015

    For the second quarter ended September 30, 2014


    Net income per share

    Net income per share(diluted)

    For the second quarter

    ended September 30, 2015

    ended September 30, 2014

    (yen)

    29.22

    19.21

    (yen)

    －

    －

  2. Consolidated financial position

1,393

7,388

million yen million yen

(81.1) ％

(42.2) ％


Total assets

Net assets

Shareholders' equity ratio

Shareholders' equity per share


September 30, 2015

March 31, 2015

(Millions of yen)

632,783

651,456

(Millions of yen)

142,649

142,749

(％)

22.3

21.7

(yen)

681.84

682.46

Note: Shareholders' equity As of September 30, 2015

As of March 31, 2015

141,284 million yen

141,415 million yen


２．Cash dividends


Cash dividends per share

（effective date）

First quarter

Second quarter

Third quarter

Year-end

Annual


Year ended March 31, 2015

(yen)

－

(yen)

7.50

(yen)

－

(yen)

7.50

(yen)

15.00

Year ending March 31, 2016

（estimated）

－

8.00

－

8.00

16.00

Net sales

Operating income

Ordinary income

Net income attributable

to owners of the parent

Net income per share

Annual

(Millions of yen) (％)

1,650,000 (5.0)

(Millions of yen) (％)

20,000 4.7

(Millions of yen) (％)

180,000 26.2

(Millions of yen) (％)

12,000 32.1

(yen)

57.91

３．Forecast of consolidated financial results for fiscal year ending March 31, 2016 （％ of change from previous year）


* The above forecasts reflect assumptions and prospects based on the information currently available.They are subject to a number of risks and uncertainties that could cause actual results to differ materially from this information.


Financial Results for the Second Quarter ended September 30, 2015

《Consolidated Balance Sheets》

(Rounded down to millions of yen)

Millions of yen

March 31, 2015

September 30, 2015

Increase(Decrease)

Assets

Current assets;

Cash and deposits

24,542

25,055

513

Trade notes and accounts receivable

321,642

296,503

(25,139)

Securities

2,610

2,572

(38)

Inventories

133,055

119,361

(13,694)

Others

29,442

41,408

11,966

Allowance for doubtful receivables

(915)

(328)

587

Total current assets

510,377

484,573

(25,804)


Fixed assets;

Property and equipment;

Land

31,676

35,391

3,715

Others

29,270

33,634

4,364

Total property and equipment

60,946

69,026

8,080

Intangible assets

2,019

2,142

123

Investments and other assets;

Investment securities

58,293

51,748

(6,545)

Others

20,114

25,754

5,640

Allowance for doubtful receivables

(295)

(461)

(166)

Total investments and other assets

78,112

77,041

(1,071)

Total fixed assets

141,078

148,209

7,131

Total assets

651,456

632,783

(18,673)


Liabilities;

Current liabilities;

Trade notes and accounts payable

180,155

164,629

(15,526)

Short-term loans payable

82,155

73,978

(8,177)

Commercial paper

27,000

17,000

(10,000)

Current portion of bonds payable

10,000

57

(9,943)

Income taxes payable

1,231

5,493

4,262

Accrued bonuses

2,051

2,214

163

Reseved for operating losses for affiliate companies

―

512

512

Others

39,602

49,257

9,655

Total current liabilities

342,196

308,199

(33,997)


Long-term liabilities;

Bonds payable

30,000

40,108

10,108

Long-term loans payable

122,352

129,264

6,912

Retirement benefits liabilities

412

495

83

Others

13,745

12,066

(1,679)

Total long-term liabilities

166,510

181,934

15,424

Total liabilities

508,706

490,133

(18,573)


Net assets;

Shareholders' equity;

Common stock

45,651

45,651

―

Capital surplus

4

4

―

Retained earnings

82,110

87,074

4,964

Treasury stock

(1,445)

(1,448)

(3)

Total shareholders' equity

126,320

131,281

4,961

Accumulated other comprehensive income

Net unrealized holding gains on securities

11,621

7,584

(4,037)

Deferred hedge profit and loss

1,526

12

(1,514)

Land revaluation difference

3,250

2,868

(382)

Foreign currency translation adjustments

2,356

2,870

514

Remeasurements of defined benefit plans

(3,660)

(3,333)

327

Total accumulated other comprehensive income

15,094

10,002

(5,092)

Minority interests

1,334

1,365

31

Total net assets

142,749

142,649

(100)

Total liabilities and net assets

651,456

632,783

(18,673)


Financial Results for the Second Quarter ended September 30, 2015

《Consolidated Statements of Income and Comprehensive Income》

(Rounded down to millions of yen)

Millions of yen

Second quarter

ended September 30,

2014

Second quarter

ended September 30,

2015


Increase(Decrease)

Net sales

861,116

788,216

(72,900)

Cost of sales

833,746

760,785

(72,961)

Gross profit

27,369

27,431

62

Selling, general and administrative expenses

18,350


19,260

910

Operating income

9,019

8,170

(849)


Other income;

Interest income

436

407

(29)

Dividend income

365

633

268

Revenue from investment in affiliates

54

―

(54)

Reversal of allowance for doubtful account

―

624

624

Others

444

671

227

Total other income

1,301

2,337

1,036

Other expenses;

Interest expenses

1,419

1,336

(83)

Loss on investment in affiliates

―

1,328

1,328

Foreign exchange loss

1,270

157

(1,113)

Others

770

732

(38)

Total other expenses

3,460

3,555

95

Ordinary income

6,861

6,953

92


Extraordinary income

Gain on sale of property and equipment

―

524

524

Gain on sales of investment securities

―

481

481

Amortization of consolidation negative goodwill

―

1,101

1,101

Total extraordinary income

―

2,108

2,108

Extraordinary loss;

Loss on devaluation of investments securities

―

200

200

Total extraordinary loss

―

200

200

Income before income taxes

6,861

8,861

2,000

Income taxes

2,852


2,805

(47)

Net income

4,009

6,055

2,046

Net income attributable to

Net income attributable to owners of the parent

3,981

6,053

2,072

Net income(loss) attributable to minority interests

27

1

(26)

Other Comprehensive Income

Net unrealized holding gains on securities

2,012

(4,037)

(6,049)

Deferred hedge profit and loss

1,516

(1,514)

(3,030)

Foreign currency translation adjustments

(560)

306

866

Remeasurements of defined benefit plans

410

326

(84)

Share of other comprehensive income of affiliates

―

255

255

Total other comprehensive Income

3,379

(4,662)

(8,041)

Comprehensive Income

7,388

1,393

(5,995)

Comprehensive income attributable to

Comprehensive income attributable to owners of the parent

7,424

1,342

(6,082)

Comprehensive income attributable to minority interests

(35)

50

85


Financial Results for the Second Quarter ended September 30, 2015

《Consolidated Statements of Cash Flows》

(Rounded down to millions of yen)

Millions of yen

Second quarter ended September 30, 2014

Second quarter ended September 30, 2015


Increase (Decrease)

Cash flows from operating activities:

Income before income taxes

6,861

8,861

2,000

Depreciation and amortization

1,978

2,141

163

Amortization of goodwill

93

115

22

Increase(decrease) in allowance for doubtful receivables

207

(626)

(833)

Increase(decrease) in retirement benefits

(2,663)

354

354

Interest and dividend income

(802)

(1,041)

(239)

Interest expense

1,419

1,336

(83)

Foreign exchange loss(gain)

(887)

185

1,072

Equity in earnings of affiliated companies (gain)

(54)

1,328

1,382

Gain on sale of property and equipment

―

(524)

(524)

Amortization of consolidation negative goodwill

―

(1,101)

(1,101)

Loss on devaluation of investments securities

―

200

200

(Increase)decrease in trade receivables

(12,058)

30,713

42,771

(Increase)decrease in inventories

(21,646)

19,807

41,453

Increase(decrease) in trade notes and accounts payable

2,441

(24,427)

(26,868)

(Increase)decrease in deposits received

10,538

13,065

2,527

Increase(decrease) in advanced payment

(9,620)

(12,395)

(2,775)

Other, net

3,378

(5,469)

(8,847)

Sub total

(20,813)

32,040

52,853

Interest and dividends received

693

909

216

Interest paid

(1,345)

(1,270)

75

Income taxes paid

(3,214)

(2,365)

849

Net cash provided by (used in) operating activities

(24,679)

29,313

53,992


Cash flows from investing activities:

Payment for time deposits

(6)

(139)

(133)

Proceeds from refund of time deposits

6

187

181

Proceeds from redemption of securities

2,000

―

(2,000)

Payment for purchase of property and equipment

(1,510)

(4,335)

(2,825)

Proceeds from sale of property and equipment

49

1,990

1,941

Payment for purchase of investment securities

(6,307)

(2,725)

3,582

Proceeds from sale and redemption of investment securities

3,070

633

(2,437)

Net increase(decrease) from purchase of consolidated subsidiaries

―

(2,165)

(2,165)

(Increase)decrease in short - term loans receivable, net

(52)

(104)

(52)

Increase in long - term loans receivable

(0)

(6,635)

(6,635)

Collection of long-term loans receivable

12

13

1

Other, net

702

884

182

Net cash used in investing activities

(2,036)

(12,395)

(10,359)


Cash flows from financing activities:

Increase(decrease) in short-term loans, net

28,104

(4,516)

(32,620)

Increase(decrease) in commercial paper, net

15,000

(10,000)

(25,000)

Proceeds from long-term debt

5,200

6,220

6,220

Repayments of long-term debt

(15,123)

(7,624)

7,499

Proceeds from issuance of bonds

9,950

9,950

―

Payment for redemption of bonds

(10,000)

(10,028)

(28)

Payment for cash dividends

(1,243)

(1,552)

(309)

Cash dividends paid to minority interest in consolidated subsidiaries

(46)

(34)

12

Other, net

105

(167)

(272)

Net cash provided by (used in) financing activities

31,946

(17,754)

(49,700)


Effect of exchange rate changes on cash and cash equivalents

(124)


71

195

Net increase(decrease) in cash and cash equivalents

5,106

(765)

(5,871)

Cash and cash equivalents at beginning of year

15,919

24,515

8,596

Cash and cash equivalents from newly consolidated subsidiaries

533

884

351

Cash and cash equivalents at end of period

21,559

24,634

3,075

distributed by