Feb. 8, 2018

Brief Financial Report for the Third Quarter Ending March 2018
[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: February 9, 2018
Date scheduled to start dividend payment: Preparation of supplementary materials for quarterly financial results:
Information meeting for quarterly financial results to be held: NoNo(Amounts are rounded to the nearest million yen)

1. Consolidated performance for the third quarter ending March 31, 2018 (April 1, 2017 to December 31, 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%

50,61347,466

6.6
-0.3

8,005
7,702

3.9
10.7

8,736
8,357

4.5
8.2

6,345
6,049

4.9
10.1

FY3/18 3Q
FY3/17 3Q

Note: Comprehensive income

FY3/18 3Q 7,066 million yen (433.9%), FY 3/17 3Q 1,323 million yen (-70.6%)

Quarter net income pershare
FY3/18 3Q
FY3/17 3Q

Quarter net income pershare-diluted

YenYen177.17168.91-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 3Q
FY3/17(Reference) Equity capital:

Net assets

Equity capital ratio

Millions of yen

Millions of yen%

97,45892,66885,16379,42486.0
84.4

FY3/18 3Q 83,833 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 year

Yen

Yen

Yen

Yen

Yen-40.00
17.00

-

60.00

100.00

-

17.00

34.00

Note: Changes in the latest forecasts released: No
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.
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 sales

Annual(Percentage changes from the same period of the previous year)
Net income attributable toNet income
owners of PIOLAX Inc.
per share

Operating income

Ordinary income

Millions of yen%

Millions of yen%

Millions of yen%

Millions of yen%

Yen

67,000

4.2

10,000-3.7

11,000-3.8

7,400

-7.5

206.62

Note: Changes in the latest forecasts released: Yes

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

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

Previous consolidated FY

Current third quarter(March 31, 2017)(December 31, 2017)

AssetsCurrent assets

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

25,444
14,573
2,062
1,599
4,396

Allowance for bad loans

1,359
1,701
2,240-13

1,552
1,847
2,468-36

Total current assets

50,66453,909

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

8,200
7,535
2,243
5,154
39
1,149

24,552

24,322

Cash 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)
Construction in progress
Total tangible fixed assets
Intangible fixed assets
Goodwill20

Other

961

1,386

Total intangible fixed assets

963

1,386

Allowance for bad loans

14,967
1,521-0

16,2801,560-0

Total investments and other assets

16,488

17,84042,00343,54992,66897,458Investments and other assets
Investment account securities
Other

Total fixed assets
Total assets

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

(Millions of Yen)

Previous consolidated FY

Current third quarter(March 31, 2017)(December 31, 2017)

Liabilities
Current liabilities

Other

3,434
423
1,269
851
3,724

3,511
523
433
3,933

Total current liabilities

9,702

8,403

149

22204

18
3,373

18
3,646

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

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

3,541

3,892

13,244

12,295

Treasury stock

2,960
2,697
73,182-2,8382,960
2,888
78,201-3,029Total shareholders’ equity

76,00381,021Remeasurements of defined benefit plans

1,701
839-3632,1081,019-315

Total accumulated other comprehensive income

2,177

2,811

Total long-term 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

1,329

Total equity

79,42485,16392,66897,458

Total liabilities and equity

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

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

Previous third quarter

Current third quarter(April 1, 2016 to December 31, 2016)(April 1, 2017 to December 31, 2017)

Net sales
Cost of sales

47,46632,54850,61334,906Gross profit

14,91815,707

Selling, general and administrative expenses

7,215

7,702

Operating income

7,702

8,005

Other

48
59
600
125

59
65
719
103

Total non-operating income

833

948

17114

828
107

Non-operating income
Interest income
Dividend income
Equity method investment gain

Non-operating expenses
Interest expense
Loss on valuation of derivatives

Other15524

Total non-operating expenses

178

216

8,357

8,736

Impairment loss-

46

Total extraordinary loss-

46

Quarterly net income before taxes and other adjustments

8,357

8,690

Corporate taxes

2,241

2,269

Net income before non-controlling interests

6,115

6,420

Net income attributable to non-controlling interests

6574

Net income attributable to owners of PIOLAX Inc.

6,049

6,345

Foreign exchange loss
Loss on disposal of property and equipment
Cost of lease revenueOrdinary income

19448

Extraordinary loss