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, 2018
(Based on Japanese GAAP)
November 6, 2018
Company name:
YAMAZEN CORPORATION
Stock exchange listing: Tokyo
Stock code:
Representative:

8051
URL http://www.yamazen.co.jp/President, CEO & COO
Yuji NAGAO

Inquiries:
Manager, IR & PR Dept.
Scheduled date to file Quarterly Securities Report:

Yoshihiro OZAKI
November 7, 2018

Scheduled date to commence dividend payments:
Preparation of supplementary material on quarterly financial results:

December 5, 2018
Yes

Holding of quarterly financial results meeting:

Yes

TEL

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, 2018 (from April 1, 2018 to September 30, 2018)(1) Consolidated operating results (cumulative)
Net sales
Six months ended September 30, 2018Six months ended September 30, 2017

Millions of yen
262,263
239,139

Percentages indicate year-on-year changes
Profit attributable toOperating profit
Ordinary profit
owners of parent% Millions of yen% Millions of yen% Millions of yen
%
9.7
8,531
28.4
8,555
30.5
5,703
28.0
14.8
6,647
29.5
6,554
28.4
4,454
31.8

Earnings per share

Diluted earnings per share

Yen
60.29
47.02

Six months ended September 30, 2018
Six months ended September 30, 2017

Yen––(2) Consolidated financial position
Total assets
As of September 30, 2018
As of March 31, 2018

Net assets

Millions of yen
240,868
245,795

Equity ratio

Millions of yen
89,79084,665

Net assets per share%
37.1
34.3

Yen
945.70891.87

2. Cash dividends
Annual dividends per share

Year ended March 31, 2018Year ending March 31, 2019

1st quarter-end

2nd quarter-end

3rd quarter-end

Fiscal year-end

Yen––Yen
13.00
15.00

Yen–

Yen
19.50

Yen
32.50

–

17.50

32.50

Year ending March 31, 2019 (Forecast)Total

3. Forecast of consolidated financial results for the year ending March 31, 2019 (from April 1, 2018 to March 31, 2019)
Percentages indicate year-on-year changes
Profit attributable toNet sales
Operating profit
Ordinary profit
Earnings per shareowners of parent
Millions of yen% Millions of yen% Millions of yen% Millions of yen%
Yen
Full year
520,000
4.4
17,00010.5
17,00012.2
11,0007.8
116.281

4. Notes(1) Changes in significant subsidiaries during the six months ended September 30, 2018(changes in specified subsidiaries resulting in the change in scope of consolidation):No(2) Application of special accounting methods for preparing quarterly consolidated financial statements:

No(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:
Changes in accounting policies due to other reasons:

No
No

Changes in accounting estimates:
Restatement of prior period financial statements:

NoNo(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, 2018

95,305,435 shares As of March 31, 2018

95,305,435 shares

Number of treasury shares at the end of the period
As of September 30, 2018707,583 shares As of March 31, 2018707,545 shares

Average number of shares during the period (cumulative from the beginning of the fiscal year)
Six months ended September 30, 2018

94,597,885 shares Six months ended September 30, 2017294,748,486 shares

Quarterly consolidated financial statements
Consolidated balance sheets
As of March 31, 2018
AssetsCurrent assets
Cash and deposits
Notes and accounts receivable - trade
Electronically 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, netTools, furniture and fixtures, netLand
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
Net defined benefit asset
Deferred tax assets
Other
Allowance for doubtful accounts
Total investments and other assets
Total non-current assets
Total assets

3(Millions of yen)
As of September 30, 2018

49,682
104,176

44,416
102,566

10,806

13,914

11,55432,386
6,052(555)
214,104

11,554
31,6295,279(517)
208,845

2,269
99
476
3,283
4,557
43
10,729
2,071

2,556
113
682
3,431
4,352
5
11,141
2,240

15,621

14,965

94

94

1,039
385
1,926
(177)
18,88931,691
245,795

1,290
404
2,062
(176)
18,641
32,023
240,868

As of March 31, 2018
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
Net defined benefit liability
Other
Total non-current liabilities
Total liabilities
Net assets
Shareholders' equity
Capital stock
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, 201888,55443,702
442
3,168
2,913
33
13,550152,364

76,03348,085
446
2,884
3,056
32
11,726142,265

5,079
2,448
248
989
8,765
161,130

4,882
2,609
278
1,043
8,813
151,078

7,909
7,561
64,092(751)
78,812

7,909
7,561
67,954(751)
82,6736,217

6,858(86)1,130(1,705)
5,556
296
84,665
245,795

1
1,497(1,569)6,787
328
89,790240,868

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, 2017
September 30, 2018
Net sales
239,139262,263
Cost of sales
208,770
228,085
Gross profit
30,36934,177
Selling, general and administrative expenses
23,72125,645
Operating profit
6,647
8,531
Non-operating income
Interest income813
867
Dividend income
126
130
Other
68
126
Total non-operating income
1,007
1,124
Non-operating expenses
Interest expenses
1,043
1,070
Other
56
30
Total non-operating expenses
1,100
1,101
Ordinary profit
6,554
8,555
Extraordinary income
Gain on sales of non-current assets
24
Gain on sales of investment securities
0–
Total extraordinary income
24Extraordinary losses
Loss on sales of non-current assets
0–Loss on retirement of non-current assets
11
Total extraordinary losses
11
Profit before income taxes
6,555
8,558
Income taxes - current
2,258
3,077
Income taxes - deferred(176)(233)
Total income taxes
2,082
2,844
Profit4,472
5,714
Profit attributable to non-controlling interests
1811
Profit attributable to owners of parent
4,454
5,703

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 incomeComprehensive income attributable toComprehensive income attributable to owners ofparent
Comprehensive income attributable tonon-controlling interests

6

Six months ended
September 30, 2017
4,472

(Millions of yen)Six months ended
September 30, 2018
5,714

1,240(87)
484
199
1,836
6,309

644
87
378
135
1,245
6,960

6,289

6,928

1932

Consolidated statements of cash flows(Millions of yen)Six months ended
September 30, 2018

Six months ended
September 30, 2017
Cash flows from operating activities
Profit before income taxes
Depreciation
Amortization of goodwillRetirement benefit expenses
Increase (decrease) in allowance for doubtful
accounts
Increase (decrease) in other provision
Increase (decrease) in net defined benefit liability
Interest and dividend income
Interest expenses
Foreign exchange losses (gains)
Loss (gain) on sales of investment securities
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 notes and accounts receivable- trade
Decrease (increase) in inventories
Increase (decrease) in notes and accounts payable trade
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
Payments of loans receivableCollection 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 dividend income received
Net cash provided by (used in) investing activities

76,555
828
–
286

8,558
861
44196

(73)

(39)

360
(603)
(939)
1,043
8(0)

112(261)
(997)
1,070
(42)
–

1

1(2)

(4)

(423)

(1,017)(4,881)

1,438(1,019)(8,854)

1,420
2,560
(2,879)
(318)

(742)
323
(3,676)(3,353)(4)4(500)
–
(106)

(54)
54(500)500(23)2525(74)
10(23)
10(16)
13(126)40(448)(590)

310933(169)

996
329

(Millions of yen)Six months ended
September 30, 2018

Six months ended
September 30, 2017
Cash flows from financing activities
Repayments of lease obligations
Cash dividends paid
Interest expenses paid
Purchase of treasury shares
Net cash provided by (used in) financing activities
Effect of exchange rate change on cash and cash
equivalents
Net increase (decrease) in cash and cash equivalents
Cash and cash equivalents at beginning of period
Increase in cash and cash equivalents from newly
consolidated subsidiary
Cash and cash equivalents at end of period8(131)(1,547)(1,043)(733)(3,456)(217)(1,844)(1,069)(0)(3,132)341

217(3,603)56,359(5,939)60,675–486

52,75555,222