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 June 30, 2018
(Based on Japanese GAAP)
August 9, 2018
Company name:
Optorun Co., Ltd.
Stock exchange listing: Tokyo
Stock code:
Representative:

6235
President

URL

http://www.optorun.co.jp/Ihei Hayashi

Inquiries:
CFO,Director Senior Managing Officer
Scheduled date to file Quarterly Securities Report:

Toshinori Takahashi
August 9, 2018

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

Holding of quarterly financial results meeting:

Yes

TEL

049-239-3381(for institutional investors and analysts)(Amounts less than one million yen are rounded down)
1. Consolidated financial results for the six months ended June 30, 2018 (from January 1, 2018 to June 30, 2018)(1) Consolidated operating results (cumulative)
Net sales
Six months ended June 30, 2018
Six months ended June 30, 2017

Millions of yen
21,811–

Percentages indicate year-on-year changes
Profit attributable toOperating profit
Ordinary profit
owners of parent% Millions of yen% Millions of yen% Millions of yen%–5,425–
5,719–
3,972––––––––

Earnings per share

Diluted earnings per share

Yen
96.43
–

Six months ended June 30, 2018
Six months ended June 30, 2017

Yen
89.75
–

(2) Consolidated financial position
Total assets
As of June 30, 2018
As of December 31, 2017

Net assets

Millions of yen
56,99856,425Equity ratio

Millions of yen
24,67722,606

%
43.3
40.0

2. Cash dividends
Annual dividends per share

Year ended December 31, 2017
Year ending December 31, 2018

1st quarter-end

2nd quarter-end

3rd quarter-end

Fiscal year-end

Yen––

Yen
0.00
0.00

Yen–

Yen
40.00

Yen
40.00

–

42.00

42.00

Year ending December 31, 2018 (Forecast)Total

3. Forecast of consolidated financial results for the year ending December 31, 2018 (from January 1, 2018 to December 31, 2018)
Percentages indicate year-on-year changes
Profit attributable toNet salesOperating profit
Ordinary profit
Earnings per shareowners of parent
Millions of yen% Millions of yen% Millions of yen% Millions of yen%
Yen
Full year
43,800
31.2
8,100
10.5
8,200
15.6
5,700
18.4
139.3414. Notes(1) Changes in significant subsidiaries during the six months ended June 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:

NoNo

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 June 30, 2018

44,358,000 shares As of December 31, 2017

44,358,000 shares

Number of treasury shares at the end of the period
As of June 30, 2018

3,000,000 shares As of December 31, 2017

3,450,000 shares

Average number of shares during the period (cumulative from the beginning of the fiscal year)
Six months ended June 30, 201841,196,099 shares Six months ended June 30, 2017

2– shares

Quarterly consolidated financial statements
Consolidated balance sheets(Thousands of yen)
As of December 31, 2017

As of June 30, 2018

AssetsCurrent assets
Cash and deposits
Notes and accounts receivable - trade

19,893,800
3,380,450

11,022,722
8,088,135

Work in process
Raw materials and supplies

20,228,921
4,878,864

25,770,609
4,241,971

Deferred tax assets
Other963,357
3,091,683

1,396,133
2,189,194

Allowance for doubtful accounts(181,290)(392,110)

52,255,788

52,316,657

Property, plant and equipment
Intangible assets

2,862,834
81,1022,824,586
73,626

Investments and other assets
Investment securities

215,829

92,400Investments in capital
Deferred tax assets

725,374
36,945

1,368,494
58,541

Total current assets
Non-current assets

Other
Total investments and other assets
Total non-current assets

247,854

264,496

1,226,004

1,783,932

4,169,940

4,682,145

56,425,729

56,998,802

7,303,432
8,970,637

4,928,120
5,162,885

209,742
13,031

190,992
12,254

1,757,632
11,327,160

1,389,173
16,774,474

Provision for bonuses
Provision for directors' bonuses

435,049
164,924

436,538–

Provision for product warranties
Other

68,558
1,788,161

95,612
1,106,557

Total assets
Liabilities
Current liabilities
Notes and accounts payable - trade
Short-term loans payable
Current portion of long-term loans payable
Lease obligations
Income taxes payable
Advances received

Total current liabilities

32,038,328

30,096,608

Non-current liabilities
Long-term loans payable

397,856

302,360

Lease obligations
Deferred tax liabilities

35,000977,848

29,262
1,507,489

Provision for directors' retirement benefits
Net defined benefit liability

235,337
125,119

246,207130,365

9,475

9,050

Other
Total non-current liabilities
Total liabilities

3

1,780,637

2,224,735

33,818,966

32,321,343

(Thousands of yen)
As of December 31, 2017

As of June 30, 2018

Net assets
Shareholders' equity
Capital stock400,000

400,000

Capital surplus
Retained earnings

9,052,807
12,871,295

9,162,730
15,207,695

Treasury shares(226,755)(197,178)

22,097,346

24,573,247

Valuation difference on available-for-sale securities
Deferred gains or losses on hedges

5,451(86,078)

4,552–

Foreign currency translation adjustment

580,148

90,697

Total accumulated other comprehensive income

499,521

95,250Total shareholders' equity
Accumulated other comprehensive income

Non-controlling interests
Total net assets
Total liabilities and net assets

49,8958,960

22,606,763

24,677,458

56,425,729

56,998,802

Consolidated statements of income (cumulative) and consolidated statements of comprehensive income(cumulative)
Consolidated statements of income (cumulative)(Thousands of yen)Six months ended
June 30, 2018
Net sales
Cost of sales

21,811,220
12,825,643

Gross profit

8,985,577

Selling, general and administrative expenses

3,559,636

Operating profit

5,425,940

Non-operating income
Interest income
Rent income

20,38255,313Foreign exchange gains
Other298,009
2,344

Total non-operating income

376,049

Non-operating expenses
Interest expenses

18,783

Share of loss of entities accounted for using equity method
Other63,623
402

Total non-operating expenses

82,809Ordinary profit

5,719,180

Profit before income taxes

5,719,180

Income taxes

1,747,159

Profit3,972,021

Loss attributable to non-controlling interests(699)

Profit attributable to owners of parent

3,972,720

5

Consolidated statements of comprehensive income (cumulative)(Thousands of yen)Six months ended
June 30, 2018
ProfitOther comprehensive income

3,972,021

Valuation difference on available-for-sale securities
Deferred gains or losses on hedges(898)
86,078Foreign currency translation adjustment
Share of other comprehensive income of entities accounted(470,380)(19,070)

for using equity method
Total other comprehensive income(404,271)

Comprehensive income

3,567,749

Comprehensive income attributable toComprehensive income attributable to owners of parent

3,568,684

Comprehensive income attributable to non-controllinginterests

(934)

6

Consolidated statements of cash flows(Thousands of yen)Six months ended
June 30, 2018
Cash flows from operating activities
Profit before income taxes

5,719,180

Depreciation
Increase (decrease) in allowance for doubtful accounts

121,482
210,820

Increase (decrease) in provision for bonuses
Increase (decrease) in provision for directors' bonuses

10,605(164,924)

Increase (decrease) in net defined benefit liability
Increase (decrease) in provision for directors' retirement

5,246
10,870benefits
Interest income(20,382)

Interest expenses
Foreign exchange losses (gains)

18,783
166,985

Share of (profit) loss of entities accounted for using equity
method63,623

Decrease (increase) in notes and accounts receivable - trade
Decrease (increase) in inventories(5,063,365)(5,327,545)

Increase (decrease) in notes and accounts payable - trade
Increase (decrease) in advances received(1,920,349)
5,517,055

Decrease (increase) in consumption taxes refund receivable
Other, net

1,144,244(833,527)

Subtotal(341,197)

Interest income received
Interest expenses paid

20,382(20,144)

Income taxes paid

(1,963,326)

Net cash provided by (used in) operating activities(2,304,285)

Cash flows from investing activities
Purchase of property, plant and equipment
Purchase of intangible assets(186,346)(6,889)Payments for investments in capital
Payments of loans receivable(681,560)(51,928)

Net cash provided by (used in) investing activities(926,724)

Cash flows from financing activities
Net increase (decrease) in short-term loans payable(3,800,000)

Repayments of long-term loans payable
Repayments of lease obligations(114,246)(6,515)

Proceeds from exercise of share options
Cash dividends paid

139,500(1,632,572)

Net cash provided by (used in) financing activities(5,413,833)

Effect of exchange rate change on cash and cash equivalents(226,233)

Net increase (decrease) in cash and cash equivalents(8,871,077)

Cash and cash equivalents at beginning of period

19,893,800

Cash and cash equivalents at end of period

11,022,722

7