Nov. 7, 2017

Brief Financial Report for the Second Quarter Ending March2018 [Based on Japanese Accounting Standards] (Consolidated)
Listed Company: PIOLAX Inc.
Code No.: 5988 (URL http://www.piolax.co.jp)
Representative:President

Yukihiko Shimazu

Contact person in charge: General Manager, Management & Planning Department

Toru Nagashima (Tel. 045-731-1211)

Estimated submission date of quarterly report: November 8, 2017
Date scheduled to start dividend payment: December 1, 2017
Preparation of supplementary materials for quarterly financial results: Yes
Information meeting for quarterly financial results to be held: Yes (for corporate investors and investment analysts)(Amounts are rounded to the nearest million yen)

1. Consolidated performance for the second quarter ending March 31, 2018 (April 1, 2017 to September 30, 2017)(1) Consolidated business results (Total sum)

(Percentage changes from the same period the previous year)

Net sales

Operating income

Net income attributable toowners of PIOLAX Inc.

Ordinary income

Millions of yen%

Millions of yen%

Millions of yen%

Millions of yen%

33,19731,514

5.3
0.6

5,170
4,898

5.5
11.3

5,538
5,3104.3
9.7

4,003
3,800

5.3
10.3

FY3/18 2Q
FY3/17 2Q

Note: Comprehensive income

FY3/18 2Q 3,892 million yen (-%), FY 3/17 2Q -1,117 million yen (-%)

Quarter net income pershare
FY3/18 2Q
FY3/17 2Q

Quarter net income pershare-diluted

YenYen111.78106.12-

Note: The Company implemented a stock split of 3 shares for each 1 share of common stock with an effective date of April 1, 2017.
Quarter net income per share was calculated based on the assumption that the aforementioned stock split had been made at thebeginning of the previous consolidated fiscal year.

(2) Consolidate financial position
Total assets
FY3/18 2Q
FY3/17(Reference) Equity capital:

Net assets

Equity capital ratio

Millions of yen

Millions of yen%

95,624
92,66882,60079,42485.0
84.4

FY3/18 2Q 81,308 million yen, FY 3/17 78,180 million yen

2. Cash dividends
Annual dividends
End of first quarter

FY3/17
FY3/18
FY3/18 (Forecast)End of second quarterEnd of third quarter

Term end

Full yearYen

YenYenYenYen-

40.00
17.00-

60.00

100.00-17.00

34.00

Note: Changes in the latest forecasts released: NoNote: The Company implemented a stock split of 3 shares for each 1 share of common stock with an effective date of April 1, 2017.
Dividend per share for the fiscal year ended March 31, 2017 is the actual dividend amount declared prior to this stock split.

3. Forecast consolidated performance for the year ending March 31, 2018 (April 1, 2017 to March 31, 2018)
Net salesAnnual(Percentage changes from the same period of the previous year)
Net income attributable toNet income
owners of PIOLAX Inc.
per shareOperating income

Ordinary income

Millions of yen%

Millions of yen%

Millions of yen%

Millions of yen%

Yen

63,200

-1.7

9,500

-8.5

10,200

-10.8

6,900

-13.8

192.66

Note: Changes in the latest forecasts released: NoPIOLAX Inc. (5988) Brief Financial Report for the Second Quarter Ending March 2018

2. Quarterly consolidated financial statement(1) Quarterly consolidated balance sheet(Millions of Yen)

Previous consolidated FY

Current second quarter(March 31, 2017)(September 30, 2017)

AssetsCurrent assets

25,474
14,172
1,610
4,119

27,627
14,0251,907
300
4,126

Allowance for bad loans

1,359
1,701
2,240-13

1,403
1,751
2,487-36

Total current assets

50,66453,593

Construction in progress

8,212
7,864
2,272
5,143
38
1,020

8,135
7,574
2,189
5,145
38
955

Total tangible fixed assets

24,552

24,038Cash and cash equivalents
Notes and accounts receivable-trade
Electronically recorded monetary claims-operating
Marketable securities
Goods and Finished products
Material in progress
Raw materials and inventory goods
Other

Fixed assets
Tangible fixed assets
Buildings and structures (net)
Machinery equipment and vehicles (net)
Tools, furniture and fixture (net)Land
Lease asset (net)

Intangible fixed assets
Goodwill

2

1

Other

961

1,241

Total intangible fixed assets

963

1,242

Allowance for bad loans

14,9671,521-015,711
1,037-0Total investments and other assets

16,48816,74942,00342,03092,66895,624

Investments and other assets
Investment account securities
Other

Total fixed assets
Total assets

PIOLAX Inc. (5988) Brief Financial Report for the Second Quarter Ending March 2018

(Millions of Yen)

Previous consolidated FYCurrent second quarter(March 31, 2017)(September 30, 2017)

Liabilities
Current liabilities

Other

3,434
423
1,269
851
3,724

3,240
412
953
851
3,640

Total current liabilities

9,702

9,098

149

14
187

Other

18
3,373

18
3,704

Total long-term liabilities

3,541

3,925

13,244

13,024

Treasury stock

2,960
2,697
73,182-2,8382,960
2,888
76,469-3,029Total shareholders’ equity

76,00379,289Remeasurements of defined benefit plans

1,701
839
-363

1,951
399
-332

Total accumulated other comprehensive income

2,177

2,018

Accounts payable-trade
Short-term borrowings
Accrued income taxes
Allowance reserve

Long-term liabilities
Provision
Net defined benefit liability
Asset removal liabilities

Total liabilities
Total equity
EquityCommon stock
Capital surplus
Retained earnings

Accumulated other comprehensive income
Unrealized gain on available-for-sale securities
Foreign currency translation adjustments

Non-controlling interests

1,243

1,291

Total equity

79,42482,60092,66895,624

Total liabilities and equity

PIOLAX Inc. (5988) Brief Financial Report for the Second Quarter Ending March 2018

(2) Quarterly Consolidated Statements of (Comprehensive) Income(Quarterly Consolidated Statements of Income)[FY2018 second quarter](Millions of Yen)

Previous second quarter

Current second quarter(April 1, 2016 to September 30, 2016)(April 1, 2017 to September 30, 2017)

Cost of sales

31,514
21,79633,19722,967Gross profit

9,717

10,230

Selling, general and administrative expenses

4,819

5,060

Operating income

4,898

5,170

Other

32
31368
8131
32435
70

Total non-operating income

512569Net sales

Non-operating income
Interest incomeDividend income
Equity method investment gain

Non-operating expenses
Interest expense

127

Loss on valuation of derivatives

8Foreign exchange loss

41
1432051
100

Loss on disposal of property and equipment
Cost of lease revenue
Other

123
26

101

201

5,310

5,538

Impairment loss-

46

Total extraordinary loss-

46

Quarterly net income before taxes and other adjustments

5,310

5,492

Corporate taxes

1,464

1,437

Net income before non-controlling interests

3,845

4,054

Total non-operating expenses
Ordinary income
Extraordinary loss

Net income attributable to non-controlling interests

4451

Net income attributable to owners of PIOLAX Inc.

3,800

4,003