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 Nine Months Ended September 30, 2018
(Based on Japanese GAAP)
November 8, 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
November 8, 2018

Scheduled date to commence dividend payments:
Preparation of supplementary material on quarterly financial results:–No

Holding of quarterly financial results meeting:

NoTEL

03-6635-9487(Amounts less than one million yen are rounded down)
1. Consolidated financial results for the nine months ended September 30, 2018 (from January 1, 2018 to September 30, 2018)(1) Consolidated operating results (cumulative)
Net sales
Nine months ended September 30, 2018
Nine months ended September 30, 2017Millions of yen
38,04021,298Percentages indicate year-on-year changes
Profit attributable toOperating profit
Ordinary profit
owners of parent% Millions of yen% Millions of yen% Millions of yen%
78.6
10,416
89.7
10,913
95.1
7,952 117.6
–
5,492
–
5,593
–
3,655
–

Earnings per share

Diluted earnings per share

Yen
192.80102.59Nine months ended September 30, 2018
Nine months ended September 30, 2017

Yen
180.65–(2) Consolidated financial position
Total assets
As of September 30, 2018
As of December 31, 2017

Net assets

Millions of yen60,841
56,425Equity ratio

Millions of yen
28,53422,606

%
46.9
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

50.00

50.00

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 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
43,80031.2
10,70046.0
11,200
57.8
7,200
49.5
174.541

4. Notes(1) Changes in significant subsidiaries during the nine 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:

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 September 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 September 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)
Nine months ended September 30, 201841,250,659 shares Nine months ended September 30, 2017

235,628,000 shares

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

As of September 30, 2018

AssetsCurrent assets
Cash and deposits
Notes and accounts receivable - trade

19,893,800
3,380,450

18,064,608
9,032,668Work in process
Raw materials and supplies

20,228,921
4,878,864

21,869,435
3,811,292

Deferred tax assets
Other963,357
3,091,683

1,411,588
1,669,118

Allowance for doubtful accounts(181,290)(266,107)

52,255,788

55,592,604

Property, plant and equipment
Intangible assets

2,862,834
81,1022,930,412
76,381

Investments and other assets
Investment securities

215,829

448,477

Investments in capital
Deferred tax assets

725,374
36,945

1,428,588
88,497

Total current assets
Non-current assets

Other
Total investments and other assets
Total non-current assets

247,854

276,844

1,226,004

2,242,407

4,169,940

5,249,202

56,425,729

60,841,807

7,303,432
8,970,637

3,402,211
5,166,874

209,742
13,031

190,992
12,6791,757,632
11,327,160

1,349,910
17,743,486

Provision for bonuses
Provision for directors' bonuses

435,049
164,924

678,388–

Provision for product warranties
Other

68,558
1,788,161

88,621
1,269,620

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

29,902,785

Non-current liabilities
Long-term loans payable

397,856

254,612

Lease obligations
Deferred tax liabilities

35,000977,848

30,037
1,718,014

Provision for directors' retirement benefits
Net defined benefit liability

235,337
125,119

251,670
134,381

9,475

15,742

Other
Total non-current liabilities
Total liabilities

3

1,780,637

2,404,457

33,818,966

32,307,243

(Thousands of yen)
As of December 31, 2017

As of September 30, 2018

Net assets
Shareholders' equity
Capital stock

400,000

400,000

Capital surplus
Retained earnings

9,052,807
12,871,295

9,162,730
19,187,948

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

22,097,346

28,553,500

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

5,451(86,078)

4,124–

Foreign currency translation adjustment

580,148(31,874)

Total accumulated other comprehensive income

499,521(27,749)

Total shareholders' equity
Accumulated other comprehensive income

Non-controlling interestsTotal net assets
Total liabilities and net assets

49,895

8,813

22,606,763

28,534,564

56,425,729

60,841,807

Consolidated statements of income (cumulative) and consolidated statements of comprehensive income(cumulative)
Consolidated statements of income (cumulative)(Thousands of yen)
Nine months ended

Nine months ended

September 30, 2017

September 30, 2018

Net sales
Cost of sales

21,298,170
12,057,594

38,040,219
22,433,344

Gross profit

9,240,576

15,606,875

Selling, general and administrative expenses

3,748,327

5,190,302

Operating profit

5,492,248

10,416,573

Interest income
Rent income

18,41954,50632,617
83,646

Foreign exchange gains
Other

106,269
23,783

497,484
46,491

Total non-operating income

202,979

660,240

43,25026,85658,65532

135,910211

Non-operating income

Non-operating expenses
Interest expenses
Share of loss of entities accounted for using equity method
Other
Total non-operating expenses

101,938

162,978

5,593,288

10,913,835

Gain on change in equity
Gain on sales of non-current assets

15,755
15,389––Total extraordinary income

31,145–

Profit before income taxes

5,624,434

10,913,835

Income taxes

1,970,350

2,961,947

Profit3,654,083

7,951,888(1,066)(1,085)

3,655,149

7,952,973

Ordinary profit
Extraordinary income

Loss attributable to non-controlling interests
Profit attributable to owners of parent

5Consolidated statements of comprehensive income (cumulative)(Thousands of yen)

ProfitOther comprehensive income

Nine months ended

Nine months ended

September 30, 2017

September 30, 2018

3,654,083

7,951,888

Valuation difference on available-for-sale securities
Deferred gains or losses on hedges(191)(209,019)(1,326)
86,078Foreign currency translation adjustment
Share of other comprehensive income of entities accounted

121,539(588,855)

4,661(23,167)

for using equity method(83,010)(527,270)

Comprehensive income

Total other comprehensive income

3,571,073

7,424,617

Comprehensive income attributable toComprehensive income attributable to owners of parent

3,572,209

7,425,699(1,136)(1,082)Comprehensive income attributable to non-controllinginterests

6