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 Six Months Ended September 30, 2016
(Based on Japanese GAAP)
October 31, 2016
Company name:TOSHO CO., LTD.
Stock exchange listing: Tokyo, Nagoya
Stock code:
Representative:

8920
URL
President & COO

http://www.to-sho.net/
Yuichiro Kutsuna

Inquiries:
Managing Director & CFO
Scheduled date to file Quarterly Securities Report:

Naoya Kuwazoe
November 4, 2016

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

December 9, 2016
No

Holding of quarterly 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 six months ended September 30, 2016 (from April 1, 2016 to September 30, 2016)(1) Consolidated operating results (cumulative)
Net sales
Six months ended September 30, 2016
Six months ended September 30, 2015

Millions of yen
10,4809,438

Percentages indicate year-on-year changes
Profit attributable toOperating income
Ordinary income
owners of parent% Millions of yen% Millions of yen% Millions of yen%
11.0
3,019
14.2
3,040
17.0
1,800
17.8
–
2,642
–
2,597
–
1,528
–

Earnings per share

Diluted earnings per share

Yen
94.02
79.80

Six months ended September 30, 2016
Six months ended September 30, 2015

Yen––(2) Consolidated financial position
Total assets
As of September 30, 2016As of March 31, 2016

Net assets

Millions of yen
44,707
43,110Equity ratio

Millions of yen
21,691
19,999Net assets per share%
46.1
44.1

Yen
1,076.04
993.03

2. Cash dividends
Annual dividends per share

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

1st quarter-end

2nd quarter-end

3rd quarter-end

Fiscal year-end

Yen––

Yen
10.00
11.00

Yen–

Yen
11.00

Yen
21.00

–

11.00

22.00

Year ending March 31, 2017 (Forecast)Total

3. Forecast of consolidated financial results for the year ending March 31, 2017 (from April 1, 2016 to March 31, 2017)
Percentages indicate year-on-year changes
Profit attributable toNet sales
Operating income
Ordinary income
Earnings per shareowners of parent
Millions of yen% Millions of yen% Millions of yen% Millions of yen%
Yen
Full year
20,700
7.7
5,760
5.7
5,720
6.3
3,330
5.5
173.851

4. Notes(1) Changes in significant subsidiaries during the six months ended September 30, 2016(changes in specified subsidiaries resulting in the change in scope of consolidation):No(2) Application of special accounting methods for preparing quarterly consolidated financial statements:

No(3) 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:
Changes in accounting policies due to other reasons:

Yes
No

Changes in accounting estimates:
Restatement of prior period financial statements:

NoNo(4) Number of issued shares (common shares)
Total number of issued shares at the end of the period (including treasury shares)
As of September 30, 2016

19,157,500 shares As of March 31, 201619,157,500 shares

Number of treasury shares at the end of the period
As of September 30, 2016

3,927 shares As of March 31, 2016

3,852 shares

Average number of shares during the period (cumulative from the beginning of the fiscal year)
Six months ended September 30, 2016

19,153,619 shares Six months ended September 30, 2015

219,153,815 shares

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

As of September 30, 2016

AssetsCurrent assets
Cash and deposits
Accounts receivable - trade

10,389,815108,358

10,501,953
116,877

Operating accounts receivable
Merchandise

164,801
5,182

200,397
8,095

Supplies
Deferred tax assets

48,770133,590

55,53075,092

Other
Allowance for doubtful accounts

263,490(1,000)414,696(40)

11,113,009

11,372,603

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

35,467,724(13,471,289)

Buildings and structures, net

20,334,100

21,996,434

Machinery, equipment and vehicles
Accumulated depreciation

977,348(543,769)

1,067,576(581,415)

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

Machinery, equipment and vehicles, net

433,579

486,161

944,116(757,811)

1,017,276(800,566)

186,305

216,710

4,317,244
2,136,000

4,474,735
2,553,583

Accumulated depreciation(246,161)(319,401)

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

1,889,839

2,234,182

Construction in progress

2,086,139

1,136,341

Total property, plant and equipment

29,247,208

30,544,565

Intangible assets
Investments and other assets

58,11656,072

Deferred tax assets
Other

303,2092,386,904

333,044
2,402,917(12,570)(11,870)

Allowance for doubtful accounts
Total investments and other assets

2,677,544

2,724,092

31,982,868

33,324,729

Deferred assets
Share issuance cost

1,044

474

Bond issuance cost

13,206

10,149Total deferred assets

14,251

10,624

43,110,129

44,707,957

Total non-current assets

Total assets3

(Thousands of yen)
As of March 31, 2016

As of September 30, 2016

Liabilities
Current liabilities
Accounts payable - trade716

434

Current portion of bonds
Current portion of long-term loans payable

501,200
3,147,248

451,200
3,114,488

Income taxes payable
Other

1,645,351
2,129,609

1,178,269
1,967,323

Total current liabilities

7,424,126

6,711,714

1,061,800

861,200

11,007,754
1,828,739

11,473,690
2,152,380

Provision for directors' retirement benefits
Asset retirement obligations

998,850
432,429

1,014,550
515,239

Deferred tax liabilities
Other

20,857
336,526

8,888
279,013

15,686,957

16,304,961

23,111,083

23,016,676

Shareholders' equity
Capital stock

1,580,817

1,580,817

Capital surplus
Retained earnings

1,875,494
15,568,519

1,875,494
17,158,810(4,645)(4,987)19,020,186

20,610,134

978,859

1,081,145

19,999,045

21,691,280

43,110,129

44,707,957

Non-current liabilities
Bonds payable
Long-term loans payable
Lease obligations

Total non-current liabilities
Total liabilities
Net assets

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

4Consolidated statements of income (cumulative) and consolidated statements of comprehensive income(cumulative)
Consolidated statements of income (cumulative)(Thousands of yen)Six months ended

Six months ended

September 30, 2015

September 30, 2016

Net sales
Cost of sales

9,438,688
6,009,375

10,480,547
6,442,693

Gross profit

3,429,313

4,037,854

165,810

180,622

146,856
473,990

189,128
649,062

Selling, general and administrative expenses
Directors' compensations
Salaries and bonuses
OtherTotal selling, general and administrative expenses

786,657

1,018,814

2,642,655

3,019,040

Interest income
Dividend income2,620
14

2,471
11

Commission fee
Miscellaneous income

74,063
8,565

98,391
21,943

Total non-operating income

85,263

122,818

Non-operating expenses
Interest expenses

96,257

89,794

Miscellaneous loss

34,00011,642

Operating income
Non-operating income

Total non-operating expenses

130,257

101,436

2,597,661

3,040,421

Gain on sales of non-current assets–

554

Total extraordinary income–

554

Loss on retirement of non-current assets

1,062

1,835

Total extraordinary losses

1,062

1,835

Profit before income taxes

2,596,599

3,039,141

Income taxes - current
Income taxes - deferred

1,041,079(76,007)

1,110,864
16,693965,071

1,127,558

1,631,527

1,911,582

Ordinary income
Extraordinary income

Extraordinary losses

Total income taxes
ProfitProfit attributable to non-controlling interests
Profit attributable to owners of parent

5102,975

110,601

1,528,552

1,800,980

Consolidated statements of comprehensive income (cumulative)(Thousands of yen)Six months ended

Six months ended

September 30, 2015

September 30, 2016

Profit1,631,527

1,911,582

Comprehensive income

1,631,5271,911,582

1,528,552

1,800,980

102,975

110,601

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

6

Consolidated statements of cash flows(Thousands of yen)

Cash flows from operating activities
Profit before income taxes

Six months ended

Six months ended

September 30, 2015

September 30, 2016

2,596,599

3,039,141

Depreciation
Increase (decrease) in allowance for doubtful accounts

739,245532

769,750(1,660)

Increase (decrease) in provision for directors' retirementbenefits

25,81015,700Interest and dividend income
Interest expenses(2,635)96,257(2,482)
89,794

Amortization of bond issuance cost
Amortization of share issuance cost

4,529
1,247

3,057569

Loss (gain) on sales of property, plant and equipment
Loss on retirement of property, plant and equipment–
1,062(554)1,835

Decrease (increase) in notes and accounts receivable - trade
Decrease (increase) in inventories(60,752)257(44,114)(9,672)

Increase (decrease) in notes and accounts payable - trade
Decrease/increase in consumption taxes receivable/payable

8,129(214,398)(282)(264,725)

23,18958,061(74,667)
64,800Decrease (increase) in other assets
Increase (decrease) in other liabilities
Subtotal

3,277,135

3,586,489

Interest and dividend income received
Interest expenses paid

905
(97,661)903(89,993)

Income taxes paid

(569,211)(1,596,837)

Net cash provided by (used in) operating activities

2,611,168

1,900,561(65,072)(1,774,284)(66,092)(1,533,399)

Proceeds from sales of property, plant and equipment
Purchase of memberships–(2,250)

3,032–

Payments for guarantee deposits
Other, net(40,984)(8,552)(67,689)
19,521(1,891,143)(1,644,628)

Cash flows from investing activities
Payments into time deposits
Purchase of property, plant and equipment

Net cash provided by (used in) investing activities
Cash flows from financing activities
Proceeds from long-term loans payable

4,300,000

2,200,000

Repayments of long-term loans payable
Redemption of bonds(1,527,614)(350,600)(1,766,824)(250,600)

Purchase of treasury shares
Cash dividends paid(823)(191,425)(342)(210,538)

Dividends paid to non-controlling interests
Payments for installment payables - property and equipment(8,400)(197,162)(8,316)(108,861)

Repayments of lease obligations
Net cash provided by (used in) financing activities(49,461)(64,406)

1,974,514(209,888)

Net increase (decrease) in cash and cash equivalents

2,694,538

46,045

Cash and cash equivalents at beginning of period

6,386,176

9,003,494

Cash and cash equivalents at end of period

9,080,715

9,049,5407