July 6, 2020

Brief Financial Report for the Year Ended March 31, 2020
[Based on Japanese Accounting Standards] (Consolidated)
Listed Company Name:PIOLAX Inc.

Listing Exchanges:

Code No.:

5988

URL:

Representative:

President Yukihiko Shimazu

Contact:

General Manager, Management & Planning Department

Date scheduled for general meeting of shareholders:June 24, 2020

Date scheduled to submit asset securities report: August 6, 2020
Preparation of supplementary materials for quarterly financial results:
Information meeting for financial results to be held:

Tokyo Stock Exchange (First Section)

https://www.piolax.co.jpTel. :045-731-1211

Date scheduled to start dividend payment:

Toru NagashimaJune 25, 2020

NoNo (For institutional investor and investment analyst)(Amounts are rounded to the nearest million yen.)

1. Consolidated performance for the year ended March 31, 2020 (April 1, 2019 to March 31, 2020)(1) Consolidated business results(Percentage changes from previous period.)

Net sales

Net income attributable toowners of PIOLAX Inc.

Ordinary income

Millions of yen%

Millions of yen%

Millions of yen%

Millions of yen%

62,48068,298

-8.5
0.6

6,753
9,312-27.5-8.97,396
10,321-28.3-6.1

5,231
7,421-29.5-8.7

FY3/20FY3/19(Note)

Operating income

Comprehensive income

FY3/204,567 million yen (-11.9%)

Net income pershare-diluted

Net income per share
FY3/20FY3/19FY3/195,182 million yen (-43.0%)

Net income totreasury shares

Ordinary income
to total assets

Operating income
to net sales

YenYen%%%147.32207.22

-5.8
8.5

7.3
10.2

10.8
13.6

(Reference) Investment profit (loss) arising from equity method

FY3/20589 million yen

FY3/19838 million yen(2) Consolidated financial position
Total assets

Net assets

Equity capital ratio

Net assets per share

Millions of yen

Millions of yen％

Yen

FY3/20FY3/19101,755
102,155

91,46090,50088.6
87.3

2,581.43
2,489.00(Reference) Shareholders’ equity

FY3/20 90,115 million yen

FY3/1989,142 million yen(3) Consolidated cash flows
Net cash flows fromoperating activities
FY3/20FY3/19Net cash flows frominvesting activities

Net cash flows fromfinancing activities

Cash and cash equivalents
at ending of the term

Millions of yen

Millions of yen

Millions of yen

Millions of yen

8,583
10,915-6,192-7,370-3,673-1,917

26,246
27,646

2. Dividends
Annual dividends

FY3/19FY3/20FY3/21 (forecast)End of firstquarter
Yen

End of secondquarter
Yen

End of thirdquarter
Yen-

22.50
22.50
-

-

Term end

Full year

Total dividend
amount(annual)

Payout ratio(consolidated)

Dividend on
net assets(consolidated)

Yen

Yen

Millions of yen%%

22.50
22.50
-

45.00
45.00
0.00

1,670
1,649

21.7
30.6
0.0

1.8
1.8(Note)
1. We had introduced a stock compensation plan for directors, and the total dividend includes the dividend paid to the trust account.
2. The dividend for the fiscal year ended March 31, 2021 is undecided at the present stage. We will announce the dividend forecast as soon as it becomes
possible to disclose it.

- 1 -PIOLAX Inc. (5988) Brief Financial Report for the year ended March 31, 2020

4. Consolidated financial statement(1) Consolidated balance sheet(Millions of yen)

FY 2018(As of March 31, 2019)

FY 2019(As of March 31, 2020)

AssetsCurrent assets
Cash and cash equivalents

30,484

31,424

Notes and accounts receivable-trade

13,096

12,346

2,071

1,785

Marketable securities

1,958

2,154

Goods and finished products

4,823

4,832

Material in progress

1,693

1,705

Raw materials and inventory goods

1,953

1,796

Electronically recorded monetaryclaims-operating

Income taxes receivable
Other current assets
Allowance for bad loans
Total current assets

-218

1,602

1,740

-40

-35

57,64457,968Fixed assets
Tangible fixed assets
Buildings and structures
Accumulated depreciation

17,51718,319-9,538-10,121

Buildings and structures (net)

7,978

8,197

Machinery equipment, and vehicles

28,231

29,783-20,987-22,444

Accumulated depreciation
Machinery equipment and vehicles (net)
Tools, furniture and fixture
Accumulated depreciation
Tools, furniture and fixture (net)Land
Lease asset
Accumulated depreciation

7,243

7,339

28,27629,236-26,209-27,116

2,066

2,119

5,567

5,565

75

185

-39

-77

35

107

Construction in progress

1,955

1,162

Total tangible fixed assets

24,847

24,492

Other

1,782

1,869

Total intangible fixed assets

1,782

1,869

Investment securities

16,476

16,161

Deferred income taxes

356

344

1,048

919

-0-0

17,881

17,425

Lease asset (net)

Intangible fixed assets

Investments and other assets

Other assets
Allowance for bad loans
Total investments and other assets
Total fixed assets
Total assets- 2 -44,511

43,787102,155

101,755PIOLAX Inc. (5988) Brief Financial Report for the year ended March 31, 2020
(Millions of yen)

FY 2018(As of March 31, 2019)

FY 2019(As of March 31, 2020)

Liabilities
Current liabilities

3,128

Accounts payable-trade

3,037

872

Accrued income taxes

985

289

Accrued bonuses to employees

879

861

Accrued bonuses to directors

2-

Reserve for environmental measures

0-

Other current liabilities

3,885

3,619

Total current liabilities

8,890

7,879

Lease obligation

Long-term liabilities
Lease obligation
Deferred tax liabilities

23

128

1,793

1,899

Provision for directors’ stock benefit

58

57

Net defined benefit liability

234

265

Asset removal liabilities

56

57

Other long-term liabilities

598

7

2,764

2,415

11,65410,295

Common stock

2,960

2,960

Capital surplus

2,888

2,888

Retained earnings

85,59089,206

Treasury stock-3,029-5,003

Total shareholders’ equity

88,41090,052

1,233

649

Total long-term fixed liabilities
Total liabilities
Total equity
EquityAccumulated other comprehensive income
Valuation difference on available-for-sale

42

Foreign currency translation adjustments

-216

-316

Remeasurements of defined benefit plans

-289

-273

Total accumulated other comprehensive income

731

62

1,358

1,345

Deferred gains or losses on hedges

Non-controlling interests
Total equity
Total liabilities and equity- 3 -90,50091,460102,155

101,755PIOLAX Inc. (5988) Brief Financial Report for the year ended March 31, 2020

(2) Consolidated statements of income and Consolidated comprehensive income(Consolidated statements of income)(Millions of yen)

FY 2018(April 1, 2018 to March 31, 2019)

FY 2019(April 1, 2019 to March 31, 2020)

Net sales

68,29862,480

Cost of sales

48,15645,490Gross profit

20,141

16,989Selling, general and administrative expenses

10,828

10,235

Operating income

9,312

6,753

131211Non-operating income
Interest income
Dividend income

7463

Equity method investment gain

838

589

Other
Total non-operating income

121

184

1,167

1,048

08

Non-operating expenses
Interest expense-0

Loss on disposal of property and equipment

49

75

Foreign exchange loss

86

184

Leases66

Loss on insurance cancellation-

19

Loss on sales of investment securities

Office transfer expenses
Other-

38

15

72

158

406

10,321

7,396

Impairment loss

152

327

Total extraordinary loss

152

327

10,169

7,068

Total non-operating expenses
Ordinary income
Extraordinary lossNet income before taxes and other adjustments

2,551

1,436

Income taxes-deferred

125335

Total corporate taxes

2,677

1,772

Current net income

7,492

5,296

Net income attributable to non-controlling interests

7064

Net income attributable to owners of PIOLAX Inc.

7,421

5,231

Corporate taxes- 4 -