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, 2017
(Based on Japanese GAAP)May 9, 2017
Company name:TOSHO CO., LTD.

Stock exchange listing: Tokyo, Nagoya
Stock code:
8920
URL
Representative:
Inquiries:

http://www.to-sho.net

President & COO
Managing Director & CFO

Yuichiro Kutsuna
Naoya Kuwazoe

Scheduled date of ordinary general meeting of shareholders:
Scheduled date to file Securities Report:

June 16, 2017
June 27, 2017

Scheduled date to commence dividend payments:
Preparation of supplementary material on financial results:

June 19, 2017
No

Holding of financial results meeting:

Yes

TEL

0566-79-3111(for institutional investors and analysts)(Amounts less than one million yen are rounded down)

1. Consolidated financial results for the year ended March 31, 2017 (from April 1, 2016 to March 31, 2017)(1) Consolidated operating results
Percentages indicate year-on-year changes
Profit attributable to
Net sales
Operating profit
Ordinary profit
owners of parent
Millions of yen% Millions of yen% Millions of yen% Millions of yen%
Year ended March 31, 2017
21,350
11.1
5,982
9.8
6,025
12.0
3,726
18.1
Year ended March 31, 2016
19,224
13.8
5,449
26.6
5,380
28.0
3,156
24.5
Profit attributable toOrdinary profit/total Operating profit/net
owners ofassetssales
parent/equity
Yen
%
%
%
–
18.0
13.0
28.0
–
17.9
13.6
28.3

Diluted earnings per
share

Earnings per shareYen
194.54164.79Year ended March 31, 2017
Year ended March 31, 2016
(2) Consolidated financial position

Total assets
As of March 31, 2017
As of March 31, 2016

Net assets

Equity ratio

Millions of yen
49,621
43,110Millions of yen
23,53619,999Cash flows fromoperating activities
Millions of yen
4,856
5,815

Cash flows frominvesting activities
Millions of yen(5,069)(4,642)

Net assets per share
%
45.0
44.1

Yen
1,165.55
993.03(3) Consolidated cash flows

Year ended March 31, 2017
Year ended March 31, 2016

Cash flows from
Cash and cash equivalents
at end of period
financing activities
Millions of yen
Millions of yen
2,180
10,9701,444
9,003

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

Year ended March 31, 2016
Year ended March 31, 2017
Year ending March 31, 2018
(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

%

%

–
–

10.00
11.00

–
–

11.00
12.00

21.00
23.00

402
440

12.7
11.8

2.3
2.1

–

12.00

–

12.00

24.00

1

11.5

3. Forecast of consolidated financial results for the year ending March 31, 2018 (from April 1, 2017 to March 31, 2018)
Net sales
Millions of yen
Six months ending
September 30, 2017
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

11,550

10.2

3,100

2.7

3,100

2.0

1,840

2.2

96.06

23,800

11.5

6,500

8.7

6,500

7.9

4,000

7.3

208.83

4. Notes(1) Changes in significant subsidiaries during the year ended March 31, 2017(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, 201719,157,500 shares As of March 31, 2016

19,157,500 shares

Number of treasury shares at the end of the period
As of March 31, 2017

3,951 shares As of March 31, 2016

3,852 shares

Average number of shares during the period
Year ended March 31, 201719,153,590 shares Year ended March 31, 2016

2

19,153,731 shares

Consolidated financial statements
Consolidated balance sheets(Thousands of yen)
As of March 31, 2016

As of March 31, 2017

AssetsCurrent assets
Cash and deposits
Accounts receivable - trade

10,389,815
108,358

12,488,767
154,671

Operating accounts receivable
Merchandise

164,801
5,182

171,960
3,866

Supplies
Deferred tax assets

48,770133,59062,42486,820Other
Allowance for doubtful accounts

263,490(1,000)369,139(40)

11,113,009

13,337,609

33,201,262(12,867,161)

36,753,146(14,105,798)

Buildings and structures, net

20,334,100

22,647,347

Machinery, equipment and vehicles
Accumulated depreciation

977,348(543,769)

1,110,132(623,773)

Total current assets
Non-current assets
Property, plant and equipment
Buildings and structures
Accumulated depreciation

Machinery, equipment and vehicles, net

433,579

486,359

944,116(757,811)

1,063,811(854,666)

186,305

209,145

4,317,244
2,136,000

5,385,137
2,845,157

Accumulated depreciation(246,161)(394,386)

Tools, furniture and fixtures
Accumulated depreciation
Tools, furniture and fixtures, net
Land
Leased assets
Leased assets, net

1,889,839

2,450,770

Construction in progress

2,086,139

2,162,221

Total property, plant and equipment

29,247,208

33,340,981

Intangible assets
Leased assets

3,153

1,051

Other

54,96354,997

Total intangible assets

58,11656,048

Lease and guarantee deposits
Deferred tax assets

1,812,335
303,209

1,928,114
366,991

Long-term loans receivable
Other

141,440
433,127

126,201
469,726

Allowance for doubtful accounts(12,570)(11,870)

Investments and other assets

Total investments and other assets

2,677,544

2,879,164

31,982,868

36,276,194

Deferred assets
Share issuance cost

1,044

–

Bond issuance cost

13,206

8,033

Total deferred assets

14,251

8,033

43,110,129

49,621,837

Total non-current assets

Total assets3

(Thousands of yen)
As of March 31, 2016

As of March 31, 2017

Liabilities
Current liabilities
Accounts payable - trade

716

354

Current portion of bonds
Short-term loans payable

501,200–

321,200
410,000

Current portion of long-term loans payable
Lease obligations

3,147,248
106,961

3,467,384
160,482

Accounts payable - other
Income taxes payable

1,034,658
1,645,351

1,000,566
1,085,588

Other

987,989

938,0427,424,126

7,383,618

Bonds payable
Long-term loans payable

1,061,800
11,007,754

740,600
13,723,100

Lease obligations
Deferred tax liabilities

1,828,739
20,8572,331,786–

Provision for directors' retirement benefits
Net defined benefit liability

998,850–

1,031,070
15,492

Asset retirement obligations
Other432,429
336,526

620,036
239,568

Total non-current liabilities

15,686,957

18,701,652

23,111,083

26,085,271

Shareholders' equity
Capital stock

1,580,817

1,580,817

Capital surplus
Retained earnings

1,875,494
15,568,519

1,875,494
18,873,357

Total current liabilities
Non-current liabilities

Total liabilities
Net assets

Treasury shares
Total shareholders' equity
Non-controlling interests
Total net assets
Total liabilities and net assets

4(4,645)(5,110)19,020,186

22,324,559

978,859

1,212,006

19,999,045

23,536,566

43,110,129

49,621,837

Consolidated statements of income and consolidated statements of comprehensive income
Consolidated statements of income(Thousands of yen)
Fiscal year ended
March 31, 2016

Fiscal year ended
March 31, 2017

Net sales

19,224,494

21,350,090

Cost of sales

12,146,525

13,216,588

Gross profit

7,077,969

8,133,501

Promotion expenses
Sales commission

122,333
254,803

216,599
323,216

Directors' compensations
Provision for directors' retirement benefits

375,71160,050410,698
32,600

Salaries and bonuses
Retirement benefit expenses

268,980–

376,324
1,943

Taxes and dues
Depreciation

144,365
27,620218,791
35,305

Other374,762535,657

1,628,627

2,151,137

5,449,342

5,982,364

Non-operating income
Interest income

4,843

4,788

Commission fee
Rent income

148,020
10,183

174,123
15,768

Subsidy income
Other

3,659
6,535

35,301
20,229173,242

250,210Non-operating expenses
Interest expenses

187,845

173,867

arrangement fee-NOE
Other

4,500
49,88011,212
21,715

Total non-operating expenses

242,226

206,795

5,380,358

6,025,780

–

554

–

554

–

135

Loss on retirement of non-current assets

1,275

2,473

Total extraordinary losses

1,275

2,609

Profit before income taxes

5,379,082

6,023,725

Income taxes - current
Income taxes - deferred

2,164,801(160,743)

2,093,915(37,869)

Total income taxes

2,004,057

2,056,045

Profit3,375,024

3,967,680

Selling, general and administrative expenses

Total selling, general and administrative expenses
Operating profit

Total non-operating income

Ordinary profit
Extraordinary income
Gain on sales of non-current assets
Total extraordinary income
Extraordinary losses
Loss on sales of non-current assets

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

5

218,586

241,463

3,156,438

3,726,217

Consolidated statements of comprehensive income(Thousands of yen)
Fiscal year ended

Fiscal year ended

March 31, 2016

March 31, 2017

Profit3,375,024

3,967,680

Comprehensive income

3,375,024

3,967,680

3,156,438

3,726,217

218,586

241,463

Comprehensive income attributable toComprehensive income attributable to owners of parent
Comprehensive income attributable to non-controllinginterests

6

Consolidated statements of changes in equity
Fiscal year ended March 31, 2016
(Thousands of yen)
Shareholders' equity

Balance at beginning ofcurrent period

Capital stock

Capital surplus

1,580,817

1,875,494

Retainedearnings
12,795,156

Treasury shares

Total
shareholders'equityNon-controllinginterests

Total net assets(3,822)

16,247,646

768,673

17,016,320

Changes of items during
periodDividends of surplus(383,075)(383,075)(383,075)

Profit attributable toowners of parent

3,156,438

3,156,438

3,156,438

(823)

(823)

Purchase of treasury
shares(823)

Net changes of items
other than shareholders'equityTotal changes of items
during period
Balance at end of current
period–210,186

210,186––

2,773,362(823)

2,772,539

210,186

2,982,725

1,580,817

1,875,494

15,568,519(4,645)19,020,186

978,859

19,999,045

Fiscal year ended March 31, 2017
(Thousands of yen)
Shareholders' equity

Balance at beginning ofcurrent period

Capital stock

Capital surplus

1,580,817

1,875,494

Retainedearnings
15,568,519

Treasury shares

Total
shareholders'equityNon-controllinginterests

Total net assets(4,645)19,020,186

978,859

19,999,045

Changes of items during
periodDividends of surplus(421,379)(421,379)(421,379)

Profit attributable toowners of parent

3,726,217

3,726,217

3,726,217

(464)

(464)

Purchase of treasury
shares(464)

Net changes of items
other than shareholders'equityTotal changes of items
during period
Balance at end of current
period–233,147

233,147––

3,304,837(464)

3,304,373

233,147

3,537,520

1,580,817

1,875,494

18,873,357(5,110)22,324,559

1,212,006

23,536,566

7

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, 2016

March 31, 2017

5,379,082

6,023,725

Depreciation
Increase (decrease) in allowance for doubtful accounts

1,522,556
240

1,596,410(1,660)

Increase (decrease) in provision for directors' retirement
benefits

55,93032,220

Increase (decrease) in net defined benefit liability
Interest and dividend income–(4,843)

15,492(4,788)Interest expenses
Amortization of bond issuance cost

187,845
8,814

173,867
5,173

2,382
–

1,044
(419)

Loss on retirement of non-current assets
Decrease (increase) in notes and accounts receivable - trade

1,275(49,194)

2,473(53,471)

Decrease (increase) in inventories
Increase (decrease) in notes and accounts payable - trade(3,354)(310)(12,337)(361)

Decrease/increase in consumption taxes receivable/payable
Decrease (increase) in other assets(105,933)(45,159)(224,108)(24,686)

Amortization of share issuance cost
Loss (gain) on sales of property, plant and equipment

Increase (decrease) in other liabilities
SubtotalInterest and dividend income received

224,744

196,050

7,174,076

7,724,624

1,458

1,706

Interest expenses paid
Income taxes paid

(188,868)(1,171,228)(174,078)(2,695,864)

Net cash provided by (used in) operating activities

5,815,437

4,856,387

Cash flows from investing activities
Payments into time deposits
Purchase of property, plant and equipment
Proceeds from sales of property, plant and equipment
Purchase of memberships
Payments for guarantee deposits
Other, net(631,072)(132,092)(3,880,457)–(4,780,231)
5,810(2,250)(101,881)(4,292)(178,871)(27,211)

19,715(4,642,872)(5,069,962)

Increase (decrease) in short-term loans payable
Proceeds from long-term loans payable–
6,100,000

410,000
6,630,000

Repayments of long-term loans payable
Redemption of bonds(3,128,728)(701,200)(3,594,518)(501,200)

Purchase of treasury shares
Cash dividends paid

(823)
(382,907)(464)(421,137)

Dividends paid to non-controlling interests
Payments for installment payables - property and equipment(8,400)(331,098)(8,316)(193,820)

Repayments of lease obligations(102,089)(140,109)

Net cash provided by (used in) financing activities

Net cash provided by (used in) investing activities
Cash flows from financing activities

1,444,753

2,180,434

Net increase (decrease) in cash and cash equivalents

2,617,318

1,966,859

Cash and cash equivalents at beginning of period

6,386,176

9,003,494

Cash and cash equivalents at end of period

9,003,494

10,970,3548