Translation
Notice: This document is an excerpt translation of the original Japanese document and is only for reference purposes. In the event of any
discrepancy between this translated document and the original Japanese document, the latter shall prevail.

Summary of Consolidated Financial Results
for the Six Months Ended September 30, 2019
(Based on Japanese GAAP)
November 12, 2019
Company name:

YAMAZEN CORPORATION

Stock exchange listing: Tokyo
Stock code:
8051
Representative:
Inquiries:

URL

https://www.yamazen.co.jp/

President, CEO & COO
Manager, IR & PR Dept.

Yuji NAGAO
Hayato HIRATA

TEL

Scheduled date to file Quarterly Securities Report:
Scheduled date to commence dividend payments:

November 13, 2019
December 5, 2019

Preparation of supplementary material on quarterly financial results:
Holding of quarterly financial results meeting:

Yes
Yes

06-6534-3095(for analysts)(Amounts less than one million yen are rounded down)

1. Consolidated financial results for the six months ended September 30, 2019 (from April 1, 2019 to September 30, 2019)(1) Consolidated operating results (cumulative)
Percentages indicate year-on-year changes
Profit attributable toNet sales
Operating profit
Ordinary profit
owners of parent
Millions of yen% Millions of yen% Millions of yen% Millions of yen%Six months ended September 30, 2019242,862(7.4)
6,290 (26.3)
6,209 (27.4)
4,036 (29.2)
Six months ended September 30, 2018262,263
9.7
8,531
28.4
8,555
30.5
5,703
28.0
Earnings per share

Diluted earnings per share

Yen
42.69
60.29

Six months ended September 30, 2019
Six months ended September 30, 2018

Yen––(2) Consolidated financial position
Total assets

Net assetsMillions of yen
243,386
245,595

As of September 30, 2019
As of March 31, 2019

Equity ratio

Millions of yen
94,826
93,113

Net assets per share
%
38.8
37.8

Yen
1,000.59
980.692. Cash dividends
Annual dividends per share

Year ended March 31, 2019Year ending March 31, 2020

1st quarter-end

2nd quarter-end

3rd quarter-end

Fiscal year-end

Yen––Yen
15.00
16.00

Yen–

Yen
21.00

Yen
36.00

–

17.50

33.50

Year ending March 31, 2020 (Forecast)Total

3. Forecast of consolidated financial results for the year ending March 31, 2020 (from April 1, 2019 to March 31, 2020)

Net sales

Full year

Millions of yen
500,000

Percentages indicate year-on-year changes
Profit attributable toOperating profit
Ordinary profit
Earnings per shareowners of parent% Millions of yen% Millions of yen% Millions of yen
%
Yen
(5.0)
14,000 (22.2)
14,000 (21.6)
9,500 (22.0)
100.471

4. Notes(1) Changes in significant subsidiaries during the six months ended September 30, 2019(changes in specified subsidiaries resulting in the change in scope of consolidation):(2) Application of special accounting methods for preparing quarterly consolidated financial statements:

NoNo(3) Changes in accounting policies, changes in accounting estimates, and restatement of prior period financial statements
Changes in accounting policies due to revisions to accounting standards and other regulations:
Yes
Changes in accounting policies due to other reasons:
Changes in accounting estimates:

No
No

Restatement of prior period financial statements:

No(4) Number of issued shares (common shares)
Total number of issued shares at the end of the period (including treasury shares)
As of September 30, 201995,305,435 shares As of March 31, 201995,305,435 shares

Number of treasury shares at the end of the period
As of September 30, 2019887,603 shares As of March 31, 2019707,603 shares

Average number of shares during the period (cumulative from the beginning of the fiscal year)
Six months ended September 30, 2019

94,558,075 shares Six months ended September 30, 2018294,597,885 shares

Quarterly consolidated financial statements
Consolidated balance sheets
As of March 31, 2019
AssetsCurrent assets
Cash and deposits
Notes and accounts receivable - tradeElectronically recorded monetary claims operating
Securities
Merchandise and finished goods
Other
Allowance for doubtful accounts
Total current assets
Non-current assets
Property, plant and equipment
Buildings and structures, net
Machinery, equipment and vehicles, net
Tools, furniture and fixtures, net
Land
Leased assets, net
Other, net
Total property, plant and equipment
Intangible assets
Investments and other assets
Investment securities
Claims provable in bankruptcy, claims
provable in rehabilitation and other
Retirement benefit asset
Deferred tax assets
Other
Allowance for doubtful accountsTotal investments and other assets
Total non-current assets
Total assets

3(Millions of yen)
As of September 30, 2019

52,984
99,63349,50997,722

14,88914,152

12,401
31,197
4,671(635)
215,144

11,87429,475
3,580(630)
205,684

2,453
106
734
3,594
4,125
45
11,059
3,695

2,414
97
704
3,581
3,912
4,042
14,752
5,760

12,131

13,453

102

100

1,121
414
2,111
(185)
15,69530,451
245,595

1,304
358
2,154
(182)
17,18837,701
243,386

As of March 31, 2019
Liabilities
Current liabilities
Notes and accounts payable - trade
Electronically recorded obligations - operating
Lease obligations
Income taxes payable
Provision for bonuses
Provision for voluntary recall of goods
Other
Total current liabilities
Non-current liabilities
Lease obligations
Deferred tax liabilities
Retirement benefit liability
Other
Total non-current liabilities
Total liabilities
Net assets
Shareholders' equity
Share capital
Capital surplus
Retained earnings
Treasury shares
Total shareholders' equity
Accumulated other comprehensive income
Valuation difference on available-for-salesecurities
Deferred gains or losses on hedges
Foreign currency translation adjustment
Remeasurements of defined benefit plans
Total accumulated other comprehensive income
Non-controlling interests
Total net assets
Total liabilities and net assets

4(Millions of yen)
As of September 30, 2019

73,38455,364
448
3,032
3,117
32
9,081
144,462

67,22655,728
405
1,928
2,805
32
8,953
137,079

4,670
2,002
284
1,062
8,019
152,482

4,484
2,185
315
4,493
11,479148,559

7,909
7,561
73,016(751)
87,735

7,909
7,561
75,066(917)
89,6205,4815,733

(35)
1,295
(1,707)
5,034
342
93,113
245,595(15)
639(1,503)
4,853
353
94,826
243,386

Consolidated statements of income (cumulative) and consolidated statements of comprehensive income(cumulative)
Consolidated statements of income (cumulative)(Millions of yen)Six months ended
Six months ended
September 30, 2018
September 30, 2019
Net sales
262,263
242,862
Cost of sales
228,085
210,416Gross profit
34,17732,445
Selling, general and administrative expenses
25,645
26,154
Operating profit
8,531
6,290
Non-operating incomeInterest income
867824
Dividend income
130140
Other
126
101
Total non-operating income
1,124
1,066
Non-operating expenses
Interest expenses
1,070
1,047
Other
30
100
Total non-operating expenses
1,101
1,148
Ordinary profit
8,555
6,209
Extraordinary income
Gain on sales of non-current assets
40
Total extraordinary income
40
Extraordinary losses
Loss on sales of non-current assets–
0Loss on retirement of non-current assets
10
Loss on valuation of golf club membership–18
Impairment loss–
113
Total extraordinary losses
1132Profit before income taxes
8,558
6,077
Income taxes - current
3,077
1,997
Income taxes - deferred(233)22
Total income taxes
2,844
2,020
Profit5,714
4,057
Profit attributable to non-controlling interests
1120
Profit attributable to owners of parent
5,703
4,036

5

Consolidated statements of comprehensive income (cumulative)

ProfitOther comprehensive income
Valuation difference on available-for-sale securities
Deferred gains or losses on hedges
Foreign currency translation adjustment
Remeasurements of defined benefit plans, net of tax
Total other comprehensive income
Comprehensive income
Comprehensive income attributable toComprehensive income attributable to owners ofparent
Comprehensive income attributable tonon-controlling interests

6

Six months ended
September 30, 2018
5,714

(Millions of yen)Six months ended
September 30, 2019
4,057

644
87
378
135
1,245
6,960

251
20(666)203(191)
3,866

6,928

3,855

32

10

Consolidated statements of cash flows(Millions of yen)Six months ended
September 30, 2019

Six months ended
September 30, 2018
Cash flows from operating activities
Profit before income taxesDepreciation
Retirement benefit expenses
Impairment loss
Increase (decrease) in allowance for doubtful
accounts
Increase (decrease) in other provisions
Increase (decrease) in retirement benefit liability
Interest and dividend income
Interest expenses
Foreign exchange losses (gains)
Loss on retirement of property, plant and equipment
and intangible assets
Loss (gain) on sales of property, plant and equipment
and intangible assets
Decrease (increase) in trade receivables
Decrease (increase) in inventories
Increase (decrease) in trade payables
Other, net
Subtotal
Income taxes paid
Net cash provided by (used in) operating activities
Cash flows from investing activities
Payments into time deposits
Proceeds from withdrawal of time deposits
Purchase of securities
Proceeds from redemption of securities
Purchase of investment securities
Proceeds from sales and redemption of investment
securities
Loan advances
Collection of loans receivable
Payments of other investmentsCollection of other investments
Purchase of property, plant and equipment andintangible assets
Proceeds from sales of property, plant and equipment
and intangible assets
Interest and dividends received
Net cash provided by (used in) investing activities

78,558
861
196
–

6,077
1,114
300
113(39)

0112
(261)
(997)
1,070(42)

(288)
(159)
(965)
1,047
10

10(4)

(0)

(1,017)1,438(8,854)(697)
323(3,676)(3,353)

2,351
1,438
(5,534)(161)
5,347(3,080)2,267(54)54(500)
500
(23)

(24)
54–
500
(962)

25

25(16)
13(126)40(1)11(80)
13(590)(2,096)

10

0

996
329

964
(1,595)

Six months ended
September 30, 2018
Cash flows from financing activities
Repayments of lease obligations
Dividends paid
Interest paid
Purchase of treasury shares
Other, net
Net cash provided by (used in) financing activities
Effect of exchange rate change on cash and cashequivalents
Net increase (decrease) in cash and cash equivalents
Cash and cash equivalents at beginning of period
Increase in cash and cash equivalents resulting from
inclusion of subsidiaries in consolidation
Cash and cash equivalents at end of period8(Millions of yen)Six months ended
September 30, 2019(217)
(1,844)(1,069)(0)–(3,132)(501)(1,986)(1,047)(166)(37)(3,738)

217

(414)

(5,939)60,675(3,482)
63,789486–

55,22260,307