Nov. 8, 2018

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

5988

Representative:(URL

http://www.piolax.co.jp)

President

Contact person in charge:

Yukihiko Shimazu
General Manager, Management & Planning Department

Toru Nagashima(Tel. 045-731-1211)

Estimated submission date of quarterly report: November 9, 2018
Date scheduled to start dividend payment:

December 3, 2018

Preparation of supplementary materials for quarterly financial results:
Information meeting for quarterly financial results to be held:

Yes

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, 2019 (April 1, 2018 to September 30, 2018)(1) Consolidated business results (Total sum)

(Percentage changes from the same period 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%

34,59633,197

4.2
5.3

5,281
5,170

2.1
5.5

5,799
5,538

4.7
4.34,333
4,003

8.3
5.3

FY3/19 2Q
FY3/18 2Q

Note:

Operating income

Comprehensive income

FY3/19 2Q

2,746 million yen (29.4%), FY 3/18 2Q

Quarter net income per
share
FY3/19 2Q
FY3/18 2Q

3,892 million yen (-%)

Quarter net income pershare-diluted

Yen

Yen

121.01111.78-(2) Consolidate financial position
Total assets

FY3/19 2Q

Equity capital ratio

Millions of yen%

100,460
99,14088,89587,15487.1
86.5

FY3/19 2Q
FY3/18(Reference) Equity capital:

Net assets

Millions of yen

87,542 million yen, FY 3/18

85,751 million yen

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

Term end

Full year

Yen

YenYenYenYen-

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 salesAnnual(Percentage changes from the same period of the previous year)
Net income attributable toNet income
per shareowners of PIOLAX Inc.

Operating income

Ordinary 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 Second Quarter Ending March 2019

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

Previous consolidated FY

Current second quarter(March 31, 2018)(September 30, 2018)

AssetsCurrent assets
Cash and cash equivalents

27,84828,370Notes and accounts receivable-trade

14,425

14,759

Electronically recorded monetary claims-operating

1,913

2,156

Marketable securities

1,699

1,760

Goods and Finished products

4,534

4,759

Material in progress

1,565

1,643

Raw materials and inventory goods

1,837

1,857

Other

1,650

1,722

Allowance for bad loans
Total current assets-32-3055,441

56,998Fixed assets
Tangible fixed assets
Buildings and structures (net)

8,151

7,649

Machinery equipment and vehicles (net)

7,684

7,299

Tools, furniture and fixture (net)

2,225

2,239

Land

5,183

5,148

36

34

Construction in progress

1,058

1,399

Total tangible fixed assets

24,33923,771

Other

1,375

1,531

Total intangible fixed assets

1,375

1,531

Investment account securities

16,10016,590

Other

1,883

1,567

Lease asset (net)

Intangible fixed assets

Investments and other assets

Allowance for bad loans
Total investments and other assets
Total fixed assets
Total assets- 2 --0-0

17,984

18,157

43,69943,461

99,140100,460

PIOLAX Inc. (5988) Brief Financial Report for the Second Quarter Ending March 2019

(Millions of Yen)

Previous consolidated FY

Current second quarter(March 31, 2018)(September 30, 2018)

Liabilities
Current liabilities
Accounts payable-trade

3,566

3,295

Accrued income taxes

978952

Allowance reserve

876

890

Other

3,734

3,562

Total current liabilities

9,156

8,701

Long-term liabilities
Allowance reserve

2950

Net defined benefit liability

225

289

Asset removal liabilities
Other1856

2,5562,466

2,829

2,863

11,985

11,564

Common stock

2,960

2,960

Capital surplus

2,888

2,888

Retained earnings

79,982

83,311

Total long-term liabilities
Total liabilities
Total equity
EquityTreasury stock-3,029-3,029Total shareholders’ equity

82,802

86,131

1,902

1,684

-8-13

Accumulated other comprehensive income
Unrealized gain on available-for-sale securities
Deferred gains or losses on hedges
Foreign currency translation adjustments

1,376

33

Remeasurements of defined benefit plans

-321

-293

Total accumulated other comprehensive income

2,948

1,410

Non-controlling interests

1,402

1,353

Total equity

87,15488,89599,140100,460

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

Previous second quarter

Current second quarter(April 1, 2017 to September 30, 2017)(April 1, 2018 to September 30, 2018)

Net sales

33,197

34,596

Cost of sales

22,96723,941Gross profit

10,23010,655

Selling, general and administrative expenses

5,060

5,374

Operating income

5,170

5,281

Interest income

3155

Dividend income

3238

Equity method investment gain435

476

Non-operating income

Other

70

54

Total non-operating income

569

624

Non-operating expenses
Interest expense

7-

Loss on valuation of derivatives

51

50

Foreign exchange loss

100

26

Loss on disposal of property and equipment

1215

Cost of lease revenue

32

Other

26

10

201

105

5,538

5,799

Impairment loss

46152

Total extraordinary loss

46152

Quarterly net income before taxes and other adjustments

5,492

5,647

Corporate taxes1,437

1,276

Net income before non-controlling interests

4,054

4,370

Total non-operating expenses
Ordinary income
Extraordinary loss

Net income attributable to non-controlling interests

5136

Net income attributable to owners of PIOLAX Inc.

4,003

4,333

- 4 -