May 9, 2019

Brief Financial Report for the Year Ended March 31, 2019
[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 25, 2019

Date scheduled to submit asset securities report: June 26, 2019
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.jp
Tel. :

045-731-1211

Date scheduled to start dividend payment:

Toru NagashimaJune 26, 2019

Yes

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

1. Consolidated performance for the year ended March 31, 2019 (April 1, 2018 to March 31, 2019)(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%

68,29867,876

0.6
5.6

9,312
10,220-8.9-1.610,321
10,987-6.1-3.9

7,421
8,126-8.7
1.5

FY3/19FY3/18(Note)

Operating income

Comprehensive income

FY3/195,182 million yen (-43.0%)

Net income pershare-diluted

Net income per share
FY3/19FY3/18

FY3/189,089 million yen (39.0%)

Net income totreasury shares

Ordinary income
to total assets

Operating income
to net sales

Yen

Yen%%%

207.22226.91

-8.5
9.9

10.2
11.4

13.6
15.1

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

FY3/19838 million yen

FY3/18755 million yen(2) Consolidated financial position
Total assets

Net assets

Equity capital ratio

Net assets per share

Millions of yen

Millions of yen％

Yen

FY3/19FY3/18102,155
99,14090,50087,154

87.3
86.5

2,489.00
2,394.31(Reference) Shareholders’ equity

FY3/19 89,142 million yen

FY3/1885,751 million yen(3) Consolidated cash flows
Net cash flows fromoperating activities
FY3/19FY3/18Net 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

10,9159,853-7,370-5,892-1,917-1,835

27,646
26,403

2. Dividends
Annual dividends

FY3/18
FY3/19FY3/20 (forecast)End of firstquarter
Yen

End of secondquarter
Yen

End of thirdquarter
Yen-

17.00
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

%%

28.00
22.50
22.50

45.00
45.00
45.00

1,670
1,670

19.8
21.7
26.0

2.0
1.8(Note)
1. The term-end dividend for the fiscal year ending March 31, 2018 includes a commemorative dividend of 5.00 yen.
2. From the previous consolidated fiscal year, we had introduced a new performance-linked stock compensation plan, and the total dividend includes thedividend paid to the trust account.

- 1 -3. Consolidated performance forecast for the year ending March 31, 2020 (April 1, 2019 to March 31, 2020)(Percentage changes from previous period, and changes from the previous first half term for the same term)

Net salesFirst half (total sum)
AnnualOperating income

Net income attributable toowners of PIOLAX Inc.

Ordinary income

Net income
per share

Millions of yen%

Millions of yen%

Millions of yen%

Millions of yen%

Yen

32,60066,000-5.8-3.4

3,800
8,000-28.0
-14.1

4,300
9,000

-25.9
-12.8

3,000
6,200

-30.8
-16.5

83.76
173.11- 2 -PIOLAX Inc. (5988) Brief Financial Report for the year ended March 31, 2019

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

FY 2017(As of March 31, 2018)

FY 2018(As of March 31, 2019)

AssetsCurrent assets
Cash and cash equivalents

27,84830,484

Notes and accounts receivable-trade

14,425

13,096

1,913

2,071

Marketable securities

1,699

1,958

Goods and finished products

4,534

4,823

Material in progress

1,565

1,693

Raw materials and inventory goods

1,837

1,953

Other current assets

1,650

1,602-32-40

55,441

57,644

17,162

17,517-9,010-9,538

Electronically recorded monetaryclaims-operating

Allowance for bad loans
Total current assets
Fixed assets
Tangible fixed assets
Buildings and structures
Accumulated depreciation
Buildings and structures (net)

8,151

7,978

Machinery equipment, and vehicles

27,90728,231-20,222-20,987

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

7,684

7,243

27,83028,276-25,604-26,209

2,225

2,066

5,183

5,567

72

75

Accumulated depreciation-36-39Lease asset (net)36

35

Lease asset

Construction in progress

1,058

1,955

Total tangible fixed assets

24,33924,847

Other

1,375

1,782

Total intangible fixed assets1,375

1,782

Investment securities

16,10016,476

Deferred income taxes

342356

1,540

1,048

Intangible fixed assets

Investments and other assets

Other assets
Allowance for bad loans
Total investments and other assets
Total fixed assets
Total assets- 3 --0-0

17,984

17,881

43,69944,511

99,140102,155PIOLAX Inc. (5988) Brief Financial Report for the year ended March 31, 2019
(Millions of yen)

FY 2017(As of March 31, 2018)

FY 2018(As of March 31, 2019)

Liabilities
Current liabilities

3,566

Accounts payable-trade

3,128

Lease obligation

108

Accrued income taxes

978985

Accrued bonuses to employees

868

879

Accrued bonuses to directors

62

Reserve for environmental measures

10

Other current liabilities

3,724

3,885

Total current liabilities

9,156

8,890

Long-term liabilities
Lease obligation
Deferred tax liabilities

31

23

1,860

1,793

Provision for directors’ stock benefit

2958

Net defined benefit liability

225

234

Asset removal liabilities

1856

Other long-term liabilities

664

598

2,829

2,764

11,985

11,654

Common stock

2,960

2,960

Capital surplus

2,888

2,888

Retained earnings

79,98285,590Treasury stock-3,029-3,029Total shareholders’ equity

82,802

88,410

1,902

1,233

Total long-term fixed liabilities
Total liabilities
Total equity
EquityAccumulated other comprehensive income
Valuation difference on available-for-sale-8

4

1,376-216

Remeasurements of defined benefit plans

-321

-289

Total accumulated other comprehensive income

2,948

731

Non-controlling interests

1,402

1,358

Total equity

87,15490,50099,140102,155

Deferred gains or losses on hedges
Foreign currency translation adjustments

Total liabilities and equity- 4 -PIOLAX Inc. (5988) Brief Financial Report for the year ended March 31, 2019(2) Consolidated statements of income and Consolidated comprehensive income(Consolidated statements of income)(Millions of yen)

FY 2017(April 1, 2017 to March 31, 2018)

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

Net sales

67,876

68,298

Cost of sales

47,054

48,156Gross profit

20,822

20,141

Selling, general and administrative expenses

10,601

10,828Operating income

10,220

9,312

83131

Non-operating income
Interest income
Dividend income

66

74

Equity method investment gain755

838

Other
Total non-operating income

124

121

1,029

1,167

80

Non-operating expenses
Interest expense
Loss on disposal of property and equipment2449

Foreign exchange loss

143

86

Leases

76

Other

79

15

262

158

10,987

10,321

Impairment loss

46

152

Loss on welfare pension fund dissolution

215-

Total extraordinary loss

261

152

Total non-operating expenses
Ordinary income
Extraordinary loss

10,725

10,169Corporate taxes

3,108

2,551

Income taxes-deferred-606

125

Total corporate taxes2,501

2,677

Current net income

8,224

7,492

Net income attributable to non-controlling interests

9770

Net income attributable to owners of PIOLAX Inc.

8,126

7,421

Net income before taxes and other adjustments- 5 -