Feb. 6, 2019

Brief Financial Report for the Third Quarter Ending March 2019
[Based on Japanese Accounting Standards] (Consolidated)
Listed Company:
Code No.:PIOLAX Inc.

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 7, 2019
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, 2019 (April 1, 2018 to December 31, 2018)(1) Consolidated business results (Total sum)

(Percentage changes from the same period of the previous year.)Net sales

Net income attributable toowners of PIOLAX Inc.

Ordinary income

Millions of yen%

Millions of yen%

Millions of yen%

Millions of yen%

52,11250,613

3.0
6.6

7,734
8,005

-3.4
3.9

8,572
8,736

-1.9
4.5

6,487
6,345

2.2
4.9

FY3/19 3Q
FY3/18 3QNote:

Operating income

Comprehensive income

FY3/19 3Q 5,189 million yen (-26.6%), FY 3/18 3Q 7,066 million yen (433.9%)

Quarter net income per
share
FY3/19 3Q
FY3/18 3Q

Quarter net income pershare-diluted

YenYen181.13177.17-(2) Consolidate financial position
Total assets

Net assets

Equity capital ratio

Millions of yen

Millions of yen%

101,800
99,14090,53087,154

87.6
86.5

FY3/19 3Q
FY3/18(Reference) Equity capital: FY3/19 3Q 89,133 million yen, FY 3/1885,751 million yen

2. Cash dividendsAnnual dividends
End of first quarterEnd of second quarterEnd of third quarter

Term end

Full year

YenYenYenYenYen-

17.00
22.50

-

28.00

45.00

-

22.50

45.00

FY3/18
FY3/19FY3/19 (Forecast)

Note: Changes in the latest forecasts released: No
Note: The term-end dividend for the fiscal year ending March 31, 2018 includes a commemorative dividend of 5.00 yen.

3. Forecast consolidated performance for the year ending March 31, 2019 (April 1, 2018 to March 31, 2019)
Net sales
Annual(Percentage changes from the same period of the previous year)
Net income attributable toNet income
Ordinary income
owners of PIOLAX Inc.
per share

Operating income

Millions of yen%

Millions of yen%

Millions of yen%

Millions of yen%

Yen

67,000-1.3

9,500-7.0

10,800-1.7

7,200-11.4

201.03

Note: Changes in the latest forecasts released: No- 1 -PIOLAX Inc. (5988) Brief Financial Report for the Third Quarter Ending March 2019

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

Previous consolidated FY(March 31, 2018)

Current Third quarter(December 31, 2018)

AssetsCurrent assets

Allowance for bad loans

27,84814,425
1,913
1,699
4,534
1,565
1,837
1,650
-32

28,011
14,578
2,273
1,957
4,920
1,691
2,061
1,741
-31

Total current assets

55,441

57,205Construction in progress

8,151
7,684
2,225
5,183
36
1,058

7,935
7,308
2,169
5,586
34
2,001

Total tangible fixed assets

24,33925,036

Other

1,375

1,666

Total intangible fixed assets

1,375

1,666

Allowance for bad loans

16,1001,883-0

16,2781,612-0

Total investments and other assets

17,984

17,891

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)

Intangible fixed assets

Investments and other assets
Investment account securities
Other

Total fixed assets
Total assets- 2 -43,69944,594

99,140101,800PIOLAX Inc. (5988) Brief Financial Report for the Third Quarter Ending March 2019

(Millions of Yen)

Previous consolidated FY(March 31, 2018)

Current third quarter(December 31, 2018)

Liabilities
Current liabilities

Other

3,566
978
876
3,734

3,395
591
443
4,037

Total current liabilities

9,156

8,468

29
225
18
2,556

57
303
56
2,384

Accounts payable-trade
Accrued income taxes
Allowance reserve

Long-term liabilities
Allowance reserve
Net defined benefit liability
Asset removal liabilities
Other

2,829

2,801

11,985

11,270Treasury stock

2,9602,888
79,982-3,029

2,960
2,888
84,656-3,029Total shareholders’ equity

82,80287,476

Remeasurements of defined benefit plans

1,902-8
1,376-321

1,199
5732-279

Total accumulated other comprehensive income

2,948

1,657

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
Deferred gains or losses on hedges
Foreign currency translation adjustments

Non-controlling interests

1,402

1,396Total equity

87,15490,53099,140101,800

Total liabilities and equity- 3 -PIOLAX Inc. (5988) Brief Financial Report for the Third Quarter Ending March 2019(2) Consolidated Statements of Income[FY2019 Third quarter](Millions of Yen)

Previous Third quarter(April 1, 2017 to December 31, 2017)

Current Third quarter(April 1, 2018 to December 31, 2018)

Cost of sales

50,61334,906

52,11236,423Gross profit

15,707

15,688Selling, general and administrative expenses

7,702

7,953

Operating income

8,005

7,734

Other5965
719
103

9274697102Total non-operating income

948

967

828107
19448079
33
411Net sales,

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

Non-operating expenses
Interest expense
Loss on valuation of derivatives
Foreign exchange loss
Loss on disposal of property and equipment
Cost of lease revenue
Other
Total non-operating expenses
Ordinary income

216

129

8,736

8,572

46

152

Extraordinary loss
Impairment loss

46

152

Quarterly net income before taxes and other adjustments

8,690

8,420

Corporate taxes

2,269

1,886

Net income before non-controlling interests

6,420

6,534

Total extraordinary loss

Net income attributable to non-controlling interests

7447

Net income attributable to owners of PIOLAX Inc.

6,345

6,487

- 4 -