(Reference Translation)

May 10, 2018

Summary of Consolidated Financial Results
for the Fiscal Year Ended March 31, 2018
<under Japanese GAAP>
Company name:
Listing:
Securities code:
URL:
Representative:
Inquiries:

MIKUNI CORPORATIONFirst Section of Tokyo Stock Exchange7247
http://www.mikuni.co.jp/
Hisataka Ikuta, President, CEO & COO
Hisashi Shibata, General Manager Accounting Dept. Corporate Division
TEL: +81-3-6895-0038

Scheduled date of Ordinary General Meeting of Shareholders:
Scheduled date to commence dividend payments:
Scheduled date to file the Annual Securities Report:
Preparation of supplementary material on financial results:
Holding of financial results presentation meeting:June 27, 2018
June 28, 2018
June 27, 2018
Yes
Yes (for institutional investors and analysts)(Millions of yen with fractional amounts discarded, unless otherwise noted)

1.

Consolidated financial results for the fiscal year ended March 31, 2018(from April 1, 2017 to March 31, 2018)(1) Consolidated operating results(Percentages indicate year-on-year changes. Figures in parentheses are negative figures.)
Net sales

Operating income

Net income attributable toowners of parent

Ordinary income

Fiscal year ended

Millions of yen%

Millions of yen%

Millions of yen

March 31, 2018

103,772

9.5

4,117

19.2

4,070

17.3

2,547

(5.1)

March 31, 2017

94,787

(3.2)

3,453

11.6

3,469

13.9

2,685

111.5

Note: Comprehensive income

Fiscal year ended March 31, 2018:
Fiscal year ended March 31, 2017:

Basic earnings
per share

Diluted earnings
per share

3,616 million yen
2,966 million yen

Return on equity% Millions of yen%[21.9 %][– %]Ratio of ordinary
Ratio of operating
income to total
income to net sales
assetsFiscal year ended

yen

yen

%

%

%

March 31, 2018

75.77

–

8.3

4.5

4.0

March 31, 2017

79.87

–

9.6

4.0

3.6

Reference: Share of income (loss) of entities accounted for using equity method
Fiscal year ended March 31, 2018: 24 million yen
Fiscal year ended March 31, 2017: 32 million yen

(2) Consolidated financial position
Total assets
As of

Net assets

Equity ratio

Net assets per share

Millions of yen

Millions of yen%

yen

March 31, 2018

90,15033,19535.8

959.95

March 31, 201789,18130,05832.8

868.69Reference:

EquityAs of March 31, 2018:
As of March 31, 2017:32,285 million yen
29,207 million yen(3) Consolidated cash flows
Cash flows fromoperating activities

Cash flows frominvesting activities

Cash flows fromfinancing activities

Cash and cash
equivalents at end of
periodFiscal year ended

Millions of yen

Millions of yen

Millions of yen

Millions of yen

March 31, 2018

9,423

(3,812)(5,624)4,979

March 31, 2017

5,185

(5,270)

426

4,945

2.

Dividends
Annual dividends

Fiscal year ended
March 31, 2017
Fiscal year ended
March 31, 2018
Fiscal year ending
March 31, 2019
(Forecast)3.

Total dividends(Total)Dividend
payout ratio(Consolidated)

Ratio ofdividends to
net assets(Consolidated)

yen Millions of yen

%

%

First
quarterend

Secondquarterend

Third
quarterend

Fiscalyearend

yen

yen

yen

yen

–

5.00

–

7.00

12.00

406

15.0

1.4

–

5.00

–

10.00

15.00

507

19.8

1.6

–

5.00

–

10.00

15.00

Total

19.8

Consolidated earnings forecasts for the fiscal year ending March 31, 2019(from April 1, 2018 to March 31, 2019)(Percentages indicate year-on-year changes. Figures in parentheses are negative figures.)
Net sales

Operating income

Ordinary income

Net income
attributable toowners of parent

Millions ofyenMillions ofyenMillions ofyen%Millions ofyen%

Six months ending
September 30, 201857,000

15.7

1,500

(9.7)

1,400 (16.9)

Fiscal year ending
March 31, 2019116,200

12.0

4,300

4.4

4,100

%

0.7

Basic earnings
per share%yen

800 (20.7)

23.79

2,550

0.1

75.82

* Notes(1) Changes in significant subsidiaries during the fiscal year under review (changes in specified subsidiaries
resulting in changes in the scope of consolidation): None
(2) Changes in accounting policies, changes in accounting estimates, and restatement of prior period financial
statements after error corrections
a. Changes in accounting policies due to revisions to accounting standards and other regulations: Noneb. Changes in accounting policies due to other reasons: Nonec. Changes in accounting estimates: None
d. Restatement of prior period financial statements after error corrections: None
(3) Number of issued shares (common shares)
a. Total number of issued shares at the end of the period (including treasury shares)
As of March 31, 2018
As of March 31, 2017b.

Number of treasury shares at the end of the period
As of March 31, 2018
As of March 31, 2017c.

34,049,423 shares
34,049,423 shares

417,473 shares
427,492 shares

Average number of shares during the period
Fiscal year ended March 31, 2018
Fiscal year ended March 31, 201733,629,260 shares
33,622,381 shares(Note) The Company’s shares held by the “Management Board Incentive Plan (BIP) Trust” are included in the number oftreasury shares at the end of the period (233,500 shares as of March 31, 2018 and 244,500 shares as of March 31,2017).
In addition, the Company’s shares held by the “Management Board Incentive Plan (BIP) Trust” are included intreasury shares, which are deducted in calculating the average number of shares during the period. (236,715 sharesin the fiscal year ended March 31, 2018 and 244,500 shares in the fiscal year ended March 31, 2017)

(Reference)

Summary of non-consolidated financial results

Non-consolidated financial results for the fiscal year ended March 31, 2018(from April 1, 2017 to March 31, 2018)(1) Non-consolidated operating results(Percentages indicate year-on-year changes)
Net sales

Operating income

Ordinary income

Net income

Fiscal year ended

Millions of yen%

Millions of yen%

Millions of yen%

Millions of yen%

March 31, 2018

68,9334.3

301(17.3)

2,002

4.0

1,772

(16.9)March 31, 2017

66,076(4.3)

364(21.2)

1,925

56.1

2,131

255.2

Basic earnings
per share

Diluted earnings
per share

Fiscal year ended

yen

yen

March 31, 2018

52.70

–

March 31, 2017

63.39

–

(2) Non-consolidated financial position
Total assets
As of

Net assets

Equity ratio

Net assets per share

Millions of yen

Millions of yen%

yen

March 31, 2018

64,91823,13135.6

687.77

March 31, 201764,19921,16933.0

629.62

Reference:

EquityAs of March 31, 2018:
As of March 31, 2017:23,131 million yen
21,169 million yen* Financial results reports are exempt from audit conducted by certified public accountants or an audit
corporation.
* Disclaimer regarding forward-looking statements
The forward-looking statements, including earnings forecasts, contained in these materials are based on
information currently available to the Company at the time of the release of these materials. Actual results
may differ from the forecasts due to various factors.

[Attached Material]
Index

1. Overview of Operating Results and Others ............................................................................................ 2(1) Overview of operating results for the fiscal year ............................................................................. 2(2) Overview of financial position for the fiscal year ............................................................................ 4(3) Basic policy for distributing incomes, and dividends for the fiscal year under review andnext fiscal year ................................................................................................................................. 4
2. Status of the Corporate Group ................................................................................................................ 6
3. Basic concept regarding selection of accounting standards ................................................................... 6
4. Consolidated financial statements and significant notes thereto ............................................................ 7(1) Consolidated balance sheet .............................................................................................................. 7(2) Consolidated statement of income and consolidated statement of comprehensive income ............. 9(3) Consolidated statement of changes in equity ................................................................................. 11(4) Consolidated statement of cash flows ............................................................................................ 13(5) Notes to consolidated financial statements .................................................................................... 15(Notes on premise of going concern) ............................................................................................. 15(Significant matters forming the basis of preparing the consolidated financial statements).......... 15(Segment information) ................................................................................................................... 16(Per share information) .................................................................................................................. 18(Significant subsequent events) ..................................................................................................... 18

-1-

1.

Overview of Operating Results and Others(1) Overview of operating results for the fiscal year
In the current fiscal year (from April 1, 2017 to March 31, 2018), as for the Japanese economy, consumer
spending and capital investment remained steady, and a gradual economic recovery continued. In regard
to overseas, there was a stable economic recovery in the United States, and a moderate recovery trend
continued in Europe. The Chinese economy continued to pick up and economic recoveries continued inemerging countries, so the global economy overall made a moderate recovery.
In this business environment, partly due to motorcycle demand starting to bottom out in emerging
markets, the Group’s net sales amounted to 103,772 million yen (up 9.5% year-on-year). Due to factors
such as an increase in sales of products for motorcycles and increased production efficiency, operating
margin improved, and operating income amounted to 4,117 million yen (up 19.2% year-on-year). Partly
due to the receipt of dividend income from affiliates, ordinary income stood at 4,070 million yen (up17.3% year-on-year). Partly because extraordinary income that arose in the previous fiscal year did notarise in the current fiscal year, net income attributable to owners of parent amounted to 2,547 million yen(down 5.1% year-on-year).
Operating results by segment are as follows:(i)<Automobile-related Products Business>
Sales in this business, which centers on the manufacture and sale of fuel injection systems forautomobiles, motorcycles, and general purpose engines and engine-related functional components,
increased compared with the previous fiscal year. In regard to products for automobiles, revenue
increased partly as the result of robust sales in Japan, ASEAN, and India. As for products formotorcycles, motorcycle demand started to bottom out in emerging markets, and sales of products
for outboard motors continued to be robust. As a result, net sales in this business amounted to
67,460 million yen (up 14.3% year-on-year), and operating income was 3,640 million yen (up47.8% year-on-year).

(ii) <Household Appliances Device Products Business>
Sales in this business, which centers on the manufacture and sale of control systems for gas
appliances and water appliances, increased from the previous fiscal year. Although housing starts inJapan remained flat, sales of gas control valves for hot-water heaters were robust in the Chinese
market. Meanwhile, the pace of production efficiency improvements in Japan slowed temporarily.
As a result, net sales in this business amounted to 7,966 million yen (up 10.4% year-on-year), andoperating income was 246 million yen (down 40.3% year-on-year).
(iii) <Aircraft Component Import and Sales Business>
Sales of aircraft components declined from the previous fiscal year. While the aircraft industry is afield in while long-term growth is expected, the current fiscal year was a period in which massproduced models were being replaced with newly developed products, so a drop in the productionof flagship models had an effect on results. This business was also affected by the rapid
strengthening of the yen in the fourth quarter since its sales in Japan are mainly on a U.S. dollar
basis. As a result, net sales in this business amounted to 20,948 million yen (down 1.5% year-onyear), and operating income was 193 million yen (down 31.6% year-on-year).
(iv) <Other Businesses>
Sales in this segment, which handles the sale of turf-maintenance equipment, etc. and the
manufacture and sale of vehicle heaters, welfare and care devices and other products, increasedslightly from the previous year. As for turf-maintenance equipment, etc., sales increased due toreplacement demand for golf carts and so on. As for vehicle heaters, sales decreased due to asaturation in demand for diesel heavy vehicles, to which emission regulations have been applied. In
regard to welfare and care devices, etc., sales increased due to steady expansion of the customer
base. As a result, net sales in this business amounted to 7,397 million yen (up 1.5% year-on-year).
Meanwhile, partly due to the drop in sales of vehicle heaters, operating income amounted to 38
million yen (down 87.1% year-on-year).

-2-

[Comparison table of Operating results by segment]
Fiscal year ended
March 31, 2017
Operating
Net sales
incomeFiscal year ended
March 31, 2018
Operating
Net sales
incomeAutomobile-related
59,011
2,462
67,4603,640
Products BusinessHousehold Appliances
7,213
412
7,966
246
Device Products BusinessAircraft Component Import
21,272282
20,948193
and Sales Business
Other Businesses
7,290
295
7,397
38
Total
94,787
3,453
103,772
4,117
Reference: exchange rate
1 USD = 108.78 yen
1 USD = 112.16 yen(Note) Amounts less than one million yen are discarded.

(Millions of yen)
Change inoperating income

Change innet sales
AmountRatio

Amount

Ratio

8,448

14.3%

1,177

47.8%

753

10.4%

(166)

(40.3)%(324)(1.5)%(89)(31.6)%

106
8,984

1.5%
9.5%

(257)
664

(87.1)%
19.2%[Reference] Performance trends for each quarter from the fiscal year ended March 31, 2016 to fiscal year ended
March 31, 2018
Fiscal year ended
March 31, 2016
First
quarter
Net sales
15,044
Automobile-related
Products Business
Operating income
598
Household Appliances Net sales
1,639
Device Products
Operating income
27
Business
Aircraft Component
Net sales
6,282
Import and Sales
Operating income
216
Business

Other Businesses
Total

Secondquarter

Third
quarter(Millions of yen)
Fiscal year ended
March 31, 2018

Fiscal year ended
March 31, 2017
FourthquarterFirst
quarter

Secondquarter

Third
quarter

FourthquarterFirst
quarter

Secondquarter

Third
quarter

Fourthquarter

15,116 14,643 15,260 13,945 13,829 14,798 16,438 15,711 15,822 17,428
386
330 1,222
756
321
476
908
918
575 1,147
1,945 1,919 1,924 1,557 1,777 1,882 1,995 1,701 1,974 2,187

18,497
999
2,103

48

60

150

(39)

152

79

219

15

94

102

34

5,507

5,445

5,752

5,681

5,345

4,928

5,317

5,306

5,062

5,314

5,264

89

47

(39)

0

(52)

225

108

56

33

88

14

1,981 1,639 1,724 2,048 1,709 1,773 1,718 2,088 1,906 1,764 1,574
2,151
(6)
(112)
(19)
94
33
102
69
90
(11)
(21)
(49)
120
Net sales
24,947 24,208 23,732 24,986 22,893 22,727 23,328 25,839 24,625 24,624 26,505 28,017
Operating income
836
412
418 1,427
751
523
850 1,328
978682 1,288
1,168
Net sales

Operating income(Notes) 1. The figures inside parentheses in the row presenting operating income indicate the amount of operating loss.
2. Amounts less than one million yen are discarded.

Future outlook
The business environment surrounding the Group is exposed to the influence of not only macroeconomic andpolitical trends in Japan and overseas, but also changes in regulatory structures such as environmental
regulations. Responding to these changes in the business environment, the Group aims to be a sustainable andhighly profitable company underpinned by our manufacturing expertise.
Although there is a sense of uncertainty due to factors such as the political situation in countries, the Group is
expecting the global economy to continue on a moderate recovery. Accordingly, we will continue ourresearch and development with a close eye on the increasingly stricter environmental regulations and strategic
investment while striving to make improvements in production efficiency. Based on the current information,
our consolidated earnings forecasts for the next fiscal year (ending March 31, 2019) are as follows:
Consolidated earnings forecasts for the fiscal year ending March 31, 2019(from April 1, 2018 to March 31, 2019)(Millions of yen)
Net income
Basic earnings
Operating
Net sales
Ordinary income attributable toper share
incomeowners of parent(Yen)
Current Forecast
116,200
4,300
4,100
2,550
75.82
Results for the previous fiscal year
103,772
4,117
4,070
2,547
75.77
(Note) The forward-looking statements, including earnings forecasts, contained in these materials are based on information
currently available to the Company and certain assumptions deemed reasonable. Actual results may differ significantly
from the forecasts due to various factors.

-3-(2) Overview of financial position for the fiscal year
a. Assets, liabilities and net assets(Assets)
Total assets at the end of the fiscal year under review amounted to 90,150 million yen, an increase of 969
million yen from the previous fiscal year-end.
Current assets amounted to 41,292 million yen, a decrease of 238 million yen from the previous fiscal
year-end. This was mainly due to a decrease of 938 million yen in cash and deposits.
Non-current assets amounted to 48,858 million yen, an increase of 1,208 million yen from the previous
fiscal year-end. This was mainly due to an increase of 1,087 million yen in property, plant and equipment
resulting from capital investment.
(Liabilities)
Total liabilities at the end of the fiscal year under review amounted to 56,955 million yen, a decrease of
2,167 million yen from the previous fiscal year-end.
Current liabilities amounted to 35,273 million yen, a decrease of 4,498 million yen from the previous
fiscal year-end. This was mainly due to the fact that although notes and accounts payable-trade increased
by 1,621 million yen, short-term loans payable decreased by 4,826 million yen and current portion of
long-term loans payable decreased by 2,179 million yen.
Non-current liabilities amounted to 21,682 million yen, an increase of 2,330 million yen from theprevious fiscal year-end. This was mainly due to an increase of 2,146 million yen in long-term loans
payable.
(Net assets)
Net assets amounted to 33,195 million yen, an increase of 3,137 million yen from the previous fiscal yearend. This was mainly due to the fact that net income attributable to owners of parent of 2,547 million yen
was recorded, and the fact that valuation difference on available-for-sale securities increased by 606
million yen.
b. Cash flows
Cash and cash equivalents (hereinafter, “cash”) for the fiscal year under review increased by 34 million
yen from the previous fiscal year-end, to 4,979 million yen.
The respective cash flow positions for the fiscal year under review are as follows:(Cash flows from operating activities)
Net cash provided by operating activities in the fiscal year under review was 9,423 million yen (5,185
million yen was provided in the previous fiscal year). This was mainly due to the presence of positive
factors based on income before income taxes of 4,353 million yen, depreciation of 4,387 million yen, anddecrease in inventories of 388 million yen.
(Cash flows from investing activities)
Net cash used in investing activities in the fiscal year under review amounted to 3,812 million yen (5,270
million yen was used in the previous fiscal year). This was mainly due to 5,516 million yen in thepurchase of fixed assets.
(Cash flows from financing activities)
Net cash used in financing activities in the fiscal year under review totaled 5,624 million yen (426 million
yen was provided in the previous fiscal year). This was mainly payment with regard to a decrease in loans
payable of 4,687 million yen.
(3) Basic policy for distributing incomes, and dividends for the fiscal year under review and next fiscal
year
The Company, taking into consideration the operating results of the fiscal year and future businessdevelopment, has a basic policy regarding dividends from surplus, etc. of carrying out result-based
distributions in a stable manner based on a medium- to long-term perspective.
Stable dividends and future business development, etc. were comprehensively examined, and as a result,a plan is in place to submit a proposal at the 96th Ordinary General Meeting of Shareholders, which isscheduled to be held on June 27, 2018, increasing the year-end dividend for the fiscal year by 3 yen fromthe forecast of 7 yen that has already been announced, to a regular dividend of 10 yen per share ofcommon shares of the Company.

-4-Regarding projected dividends for the next fiscal year (ending March 31, 2019), the Company expects,
based on earnings forecasts and current forecasts of the financial position, to pay a regular interim
dividend of 5 yen per share of common shares, and a regular year-end dividend of 10 yen per share,
giving projected annual dividends of 15 yen per share.
(Note)

The forecasts for the next fiscal year contained in these materials are forward-looking statements including risks
and uncertainties. Therefore, the actual results may differ from the forecasts stated herein due to changes ofvarious factors.

-5-

2.

Status of the Corporate GroupThe Group (the Company and its affiliates) consists of the Company (MIKUNI CORPORATION), 21
subsidiaries, and five associates. The Group is engaged in manufacturing and sales of fuel injectionrelated products, carburetors, heaters, pumps, gas control devices, etc., the import and sales of aircraftcomponents, and real estate leasing and other services.
Business organization chart
Reportable segments are the Automobile-related Products Business, the Household Appliances Device
Products Business, and the Aircraft Component Import and Sales Business. The business organization
chart of the Group as of March 31, 2018 (showing the Company and its main affiliates) is shown below.

Overseas

Domestic
Manufacturing and sales company(Entity accounted for using
equity method)
Mikuni Aim Corporation
Pierburg Mikuni Pump
Technology Corporation(Entity accounted for using equity
method)(Consolidated subsidiaries)
Mikuni American Corporation
Mikuni Europe GmbH
Mikuni Taiwan Corporation(Consolidated subsidiary)Corbin Properties Incorporated

Finished goods/
merchandise

3.

External customers

Mikuni R. K. Corporation
Pierburg Mikuni Pump Technology(Shanghai) Corporation

Services company
Other Businesses

Other Businesses(Consolidated subsidiary)
Mikuni Life & Auto Co.,Ltd.

Automobile-related Products Business

Manufacturing and sales company

Sales Business(Consolidated subsidiary)
Asahi Air Supply Inc.

Mikuni (Thailand) Co., Ltd.
Mikuni (Shanghai) Co., Ltd.
Tianjin Mikuni Co., Ltd.
Mikuni (Chengdu) Machinery &Electronics Co., Ltd.
Mikuni (Zhejiang) Co., Ltd.
Mikuni Mexicana S.A.de C.V.
PT. Mikuni Indonesia
Mikuni India Private Limited

Sales companies

MIKUNICORPORATION(the Company)

Household Appliances Device
Products Business, Aircraft Component Import andAircraft Component
Import and Sales Business

External customers

Sales company(Consolidated subsidiaries)

Automobile-related Products BusinessHousehold Appliances Device
Products Business

Automobile-related
Products Business(Consolidated subsidiary)
Mikuni Partec Corporation

Automobile-related Products Business, Household Appliances Device Products Business and Aircraft Component Import andSales Business

Manufacturing and sales companies

Manufacturing and sales companies

Components

Services

Basic concept regarding selection of accounting standards
The Group has prepared the consolidated financial statements in accordance with Japanese GAAP, andthere is no immediate plan to change its accounting standards. Concerning the policy for the applicationof IFRS, the Group will respond to this issue appropriately while giving consideration to various
circumstances in Japan and overseas.

-6-

4.

Consolidated financial statements and significant notes thereto(1) Consolidated balance sheet(Millions of yen)
As of March 31, 2017

As of March 31, 2018

5,999
18,5085,060
19,742

1,309

1,786

6,841
3,863
1,532
818
2,726
(67)
41,531

6,105
4,137
1,593
881
2,072
(87)
41,29231,011(20,775)
10,23644,755(34,649)
10,10618,127(15,975)
2,151
11,8882,078
36,46031,779(21,587)
10,191
46,247(35,394)
10,853
18,273(16,175)
2,097
11,9182,486
37,548

207
775
983

142
858
1,001

6,550
16
1,092
2,752
(205)
10,20547,65089,181

7,328
27
779
2,336
(162)
10,30948,85890,150AssetsCurrent assets
Cash and deposits
Notes and accounts receivable - trade
Electronically recorded monetary claims operating
Merchandise and finished goods
Work in process
Raw materials and supplies
Deferred tax assets
Other
Allowance for doubtful accounts
Total current assets
Non-current assets
Property, plant and equipment
Buildings and structures
Accumulated depreciation
Buildings and structures, net
Machinery, equipment and vehicles
Accumulated depreciation
Machinery, equipment and vehicles, net
Tools, furniture and fixtures
Accumulated depreciation
Tools, furniture and fixtures, net
LandConstruction in progress
Total property, plant and equipment
Intangible assets
Goodwill
Other
Total intangible assets
Investments and other assets
Investment securities
Long-term loans receivable
Deferred tax assets
Other
Allowance for doubtful accounts
Total investments and other assets
Total non-current assets
Total assets-7-

(Millions of yen)
As of March 31, 2017

As of March 31, 2018

11,812
13,819
7,014
475
1,743
440
2,265
1,391
204
602
39,771

13,434
8,993
4,835
286
1,998
445
2,792
1,619
190
677
35,273

10,430
361
875
2,258

12,576
303
1,487
2,258

27

44

3,591
1,806
19,351
59,123

3,523
1,486
21,682
56,9552,215
1,937
16,382(186)
20,3482,215
1,937
18,617(181)
22,588

2,813

3,419

1
5,273
1,261
(489)
8,858
850
30,05889,181

(14)
5,273
1,445
(427)
9,696
910
33,19590,150Liabilities
Current liabilities
Notes and accounts payable - trade
Short-term loans payable
Current portion of long-term loans payable
Lease obligations
Accounts payable - other
Income taxes payable
Accrued expenses
Provision for bonuses
Provision for product warranties
Other
Total current liabilities
Non-current liabilities
Long-term loans payable
Lease obligations
Deferred tax liabilities
Deferred tax liabilities for land revaluation
Provision for management board incentive plantrust
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
Revaluation reserve for land
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-8-(2) Consolidated statement of income and consolidated statement of comprehensive income
Consolidated statement of income(Millions of yen)
Fiscal year ended
March 31, 2017
Net sales
Cost of sales
Gross profit
Selling, general and administrative expenses
Operating profit
Non-operating income
Interest income
Dividend income
Rent income
Share of profit of entities accounted for using equity
methodOther
Total non-operating income
Non-operating expenses
Interest expenses
Rent expenses
Foreign exchange losses
Other
Total non-operating expenses
Ordinary profit
Extraordinary income
Gain on sales of non-current assets
Gain on sales of investment securities
Gain on sales of shares of subsidiaries and associates
Gain on liquidation of subsidiaries and associates
Gain on abolishment of retirement benefit plan
Compensation income
Insurance income
Other
Total extraordinary income
Extraordinary losses
Loss on sales and retirement of non-current assets
Loss on valuation of investment securities
Impairment loss
Loss on fire
Other
Total extraordinary losses
Profit before income taxes
Income taxes - current
Income taxes - deferred
Total income taxes
ProfitProfit attributable to non-controlling interests
Profit attributable to owners of parent-9-

Fiscal year ended
March 31, 2018

94,78780,59014,196
10,743
3,453

103,772
87,887
15,884
11,766
4,117

68
99
216

60
212
209

32

24

216
633

160
667

359
96
24
136
617
3,469

353
95
133
132
715
4,070

133
–
–
–
171
619
–
0
924

3
239
41
66
–
–
56
–
407

75
27
9
–
11
123
4,270
1,050
378
1,428
2,841
156
2,685

49
–
16
55
2
124
4,353
1,139
568
1,708
2,644
96
2,547

Consolidated statement of comprehensive income(Millions of yen)
Fiscal year ended
March 31, 2017
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
Share of other comprehensive income of entities
accounted for using equity method
Total other comprehensive income
Comprehensive income
Comprehensive income attributable toComprehensive income attributable to owners ofparentComprehensive income attributable to noncontrolling interests- 10 -

Fiscal year ended
March 31, 2018

2,841

2,644

1,006
2
(1,071)
205

606
(15)
270
62

(18)

48

124
2,966

972
3,616

2,943

3,492

22

124

(3) Consolidated statement of changes in equity
Fiscal year ended March 31, 2017
(Millions of yen)
Shareholders’ equity
Capital stock

Capital surplus

2,215

1,700

Balance at beginning of current
periodRetained earnings

Treasury shares

14,204(186)

Total shareholders’equity17,934

Changes of items during period
Dividends of surplus

(508)

(508)

Profit attributable to owners ofparent

2,685

2,685

Purchase of treasury shares

(0)

(0)

Disposal of treasury shares–

Capital increase of
consolidated subsidiaries

(51)

(51)

Change in ownership interestof parent due to transactions
with non-controlling interests

289

289

Change of scope of equity
method–Net changes of items otherthan shareholders’ equity
Total changes of items during
periodBalance at end of current period

–

237

2,177

(0)

2,414

2,215

1,937

16,382(186)

20,348

Accumulated other comprehensive income
Valuationdifference
on availablefor-salesecurities
Balance at beginning ofcurrent period

1,806

Deferred
gains orlosses onhedges

Revaluation
reserve forland

Foreigncurrencytranslation
adjustment

(1)

5,273

2,217

Remeasurements ofdefined benefit
plans
(695)

Total
accumulated
othercomprehensive income

Noncontrollinginterests

Total net
assets

8,600

1,416

27,950Changes of items during
periodDividends of surplus(508)

Profit attributable to ownersof parent

2,685

Purchase of treasury shares(0)

Disposal of treasury shares–

Capital increase of
consolidated subsidiaries(51)

Change in ownershipinterest of parent due totransactions with noncontrolling interests

289

Change of scope of equity
method–Net changes of items otherthan shareholders’ equity

1,006

2

–

(956)

205

258

(565)

(307)

Total changes of items during
period

1,006

2

–

(956)

205

258

(565)

2,107

Balance at end of current
period

2,813

1

5,273

1,261

(489)

8,858

850

30,058- 11 -

Fiscal year ended March 31, 2018
(Millions of yen)
Shareholders’ equity
Capital stock
Balance at beginning of current
periodCapital surplus

Retained earnings

Treasury shares

1,937

16,382

(186)

2,215

Total shareholders’ equity
20,348Changes of items during period
Dividends of surplus

(406)

(406)

Profit attributable to ownersof parent

2,547

2,547

Purchase of treasury shares

(0)

(0)

Disposal of treasury shares

5

5Capital increase of
consolidated subsidiaries–

Change in ownershipinterest of parent due totransactions with noncontrolling interests–

Change of scope of equity
method93

93

Net changes of items otherthan shareholders’ equity–

Total changes of items during
periodBalance at end of current period

–

–

2,234

5

2,240

2,215

1,937

18,617(181)

22,588

Accumulated other comprehensive income
Valuationdifference on
available-forsale securities
Balance at beginning of current
period2,813

Deferred
gains orlosses onhedges

Revaluation
reserve forland

Foreigncurrencytranslation
adjustment

Remeasurements ofdefinedbenefit plans

Total
accumulated othercomprehensive income

Noncontrollinginterests

Total net
assets

1

5,273

1,261

(489)

8,858

850

30,058Changes of items during period
Dividends of surplus(406)

Profit attributable to owners ofparent2,547

Purchase of treasury shares(0)

Disposal of treasury shares

5

Capital increase of
consolidated subsidiaries–

Change in ownership interestof parent due to transactions
with non-controlling interests–

Change of scope of equity
method93

Net changes of items otherthan shareholders’ equity

606

(15)

–

184

62

837

59

897

Total changes of items during
period

606

(15)

–

184

62

837

59

3,137

Balance at end of current period

3,419

(14)

5,273

1,445

(427)

9,696

910

33,195- 12 -

(4) Consolidated statement of cash flows(Millions of yen)
Fiscal year ended
March 31, 2017
Cash flows from operating activities
Profit before income taxes
Depreciation
Amortization of goodwill
Impairment loss
Compensation income
Interest and dividend income
Interest expenses
Loss (gain) on sales and retirement of non-current
assetsShare of loss (profit) of entities accounted for using
equity method
Increase (decrease) in net defined benefit liability
Increase (decrease) in provision for productwarranties
Increase (decrease) in provision for bonuses
Increase (decrease) in allowance for doubtful
accounts
Decrease (increase) in notes and accounts receivable- tradeDecrease (increase) in inventories
Decrease (increase) in accounts receivable - other
Increase (decrease) in notes and accounts payable trade
Increase (decrease) in accounts payable - other
Other, net
SubtotalInterest and dividend income received
Interest expenses paid
Extra retirement payments
Income taxes paid
Net cash provided by (used in) operating activities
Cash flows from investing activities
Decrease (increase) in time deposits
Purchase of property, plant and equipment
Proceeds from sales of property, plant andequipment
Purchase of intangible assets
Purchase of investment securities
Proceeds from sales of investment securities
Purchase of shares of subsidiaries and associates
Proceeds from sales of shares of subsidiaries andassociates
Proceeds from liquidation of subsidiaries andassociates
Payments of loans receivableCollection of loans receivable
Other, net
Net cash provided by (used in) investing activities- 13 -

Fiscal year ended
March 31, 2018

4,270
4,238
67
9
(619)
(167)
359

4,353
4,387
65
16
–
(272)
353

(58)

45

(32)

(24)

(1,903)

25

(673)

(17)

100

228

(14)

(24)

(1,252)(1,412)(1,088)
239

388
363

1,049

1,502

1,460
222
6,207
163
(346)
(17)
(822)
5,185

(296)
1,067
10,749226(342)–(1,209)
9,423

(122)
(5,609)1,017(5,258)

820

291

(224)
(7)
–
(45)

(257)
(7)
346
(10)

–

57

–

80

(57)
24
(49)
(5,270)

(50)
14
(37)
(3,812)

(Millions of yen)
Fiscal year ended
March 31, 2017
Cash flows from financing activities
Increase (decrease) in short-term loans payable
Proceeds from long-term loans payable
Repayments of long-term loans payable
Payments from changes in ownership interests in
subsidiaries that do not result in change in scope of
consolidation
Purchase of treasury shares
Cash dividends paid
Dividends paid to non-controlling interests
Other, net
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
Cash and cash equivalents at end of period- 14 -

Fiscal year ended
March 31, 2018

(1,081)
7,367(4,486)(4,732)
7,248(7,203)

(341)

–

(0)
(504)
(63)
(462)
426

(0)
(405)
(54)
(476)
(5,624)

(139)

47

202
4,743
4,945

34
4,945
4,979

(5) Notes to consolidated financial statements(Notes on premise of going concern)
Not applicable.
(Significant matters forming the basis of preparing the consolidated financial statements)
Disclosure omitted because there have been no significant changes from the items stated in the recent
Annual Securities Report (filed on June 28, 2017).

- 15 -

(Segment information)[Segment information]
1. Outline of reportable segments
The reportable segments of the Group are components of the Group that have separate financial
information available and are periodically examined to enable the Board of Directors to makedecisions on the allocation of management resources and evaluate the results of businessperformance.
The Company establishes comprehensive domestic and overseas strategies for each product andservice, and undertakes business activities in cooperation with group companies.
The Group accordingly consists of segments by product and service, with three reportable segments:
Automobile Products-related Business, Household Appliances Device Products Business, andAircraft Component Import and Sales Business.
The Automobile Products-related Business mainly manufactures and sells fuel injection systems forautomobiles, motorcycles, and general purpose engines and engine-related functional components.
The Household Appliances Device Products Business mainly manufactures and sells control systems
for gas appliances and water appliances. The Aircraft Component Import and Sales Business mainly
imports and sells aircraft components.

2. Calculation method for the amounts of net sales, income/loss, assets and other items by reportablesegment
The accounting method for reportable segments is generally the same as the method described in“Significant matters forming the basis of preparing the consolidated financial statements.”
Segment profit (loss) of reportable segments is provided on an operating income (loss) basis.

- 16 -

3. Information regarding the amounts of net sales, income/loss, assets and other items by reportablesegment
Fiscal year ended March 31, 2017 (April 1, 2016 to March 31, 2017)(Millions of yen)
Reportable segment
HouseholdAircraft
Automobile
Appliances Component
ProductsDevice
Import andrelatedProducts
Sales

Total

Other
Businesses(Note)

Total

Amounts
reported in the
Adjustments consolidated
financialstatements

Net sales
To external customers
59,011
7,213
21,27287,497
7,290
94,787–
94,787
Inter-segment sales or
–
–
–
–
–
–
–
–
transfers
Total
59,011
7,213
21,27287,497
7,290
94,787–
94,787
Segment profit (loss)
2,462
412
282
3,157
295
3,453
–
3,453
Segment assets
67,403
6,376
10,077
83,857
5,324
89,181–
89,181Other items
Depreciation
3,842
230
63
4,137
101
4,238
–
4,238
Amortization of goodwill and
–
–
39
39
27
67
–
67
negative goodwill
Investments in entities
accounted for using equity
216
280
–
496
–
496
–
496
methodIncrease in property, plantand equipment and intangible
5,367
374
27
5,768
103
5,872
–
5,872
assets(Note) The “Other Businesses” category refers to a business segment not included in reportable segments including suchbusinesses as sales of turf-maintenance equipment, etc. and manufacturing and sales of vehicle heaters and welfare andcare devices, etc.
Fiscal year ended March 31, 2018 (April 1, 2017 to March 31, 2018)(Millions of yen)
Reportable segment
HouseholdAircraft
Automobile
Appliances Component
ProductsDevice
Import andrelatedProducts
Sales

Total

Other
Businesses(Note)

Total

Amounts
reported in the
Adjustments consolidated
financialstatements

Net sales
To external customers
67,460
7,966
20,94896,375
7,397 103,772–
103,772
Inter-segment sales or
–
–
–
–
–
–
–
–
transfers
Total
67,460
7,966
20,94896,375
7,397 103,772–
103,772
Segment profit (loss)
3,640
246
193
4,079
38
4,117
–
4,117
Segment assets
69,118
6,698
9,087
84,904
5,246
90,150–90,150
Other items
Depreciation
3,935
282
77
4,296
91
4,387
–
4,387
Amortization of goodwill and
–
–
37
37
27
65
–
65
negative goodwill
Investments in entities
accounted for using equity
934
324
–
1,259
–
1,259
–
1,259
methodIncrease in property, plant
5,162
460
31
5,654
200
5,855
–
5,855
and equipment and intangible
assets(Note) The “Other Businesses” category refers to a business segment not included in reportable segments including suchbusinesses as sales of turf-maintenance equipment, etc. and manufacturing and sales of vehicle heaters and welfare andcare devices, etc.

- 17 -

(Per share information)
Fiscal year ended March 31, 2017(from April 1, 2016
to March 31, 2017)

Fiscal year ended March 31, 2018(from April 1, 2017
to March 31, 2018)

Net assets per share

868.69 yen

959.95 yen

Basic earnings per share

79.87 yen

75.77 yen

Item

(Notes) 1.
2.

Diluted earnings per share is not presented since no potential shares exist.
The shares of the Company that remain in trust and are recorded as treasury shares in shareholders’ equity areincluded in treasury shares that are excluded from the recording of the average number of shares during theperiod in calculating the amount of basic earnings per share, and are included in the number of treasury
shares that are excluded from the total number of issued shares at the end of the period in calculating net
assets per share.
Number of treasury shares at end of period deducted in calculating net assets per share
Fiscal year ended March 31, 2017244,500 sharesFiscal year ended March 31, 2018
233,500 shares
Average number of treasury shares during period deducted in calculating the basic earnings per share
Fiscal year ended March 31, 2017244,500 sharesFiscal year ended March 31, 2018236,715 shares

The basis of the calculation of basic earnings per share is as follows:
Fiscal year ended March 31, 2017
Item(from April 1, 2016
to March 31, 2017)
Net income attributable to owners of parent
2,685(million yen)Amounts not attributable to common–shareholders (million yen)
Net income attributable to owners of parent
2,685
available to common shares (million yen)
Average number of shares during the period
33,622,381(shares)3.

(Significant subsequent events)
Not applicable.

- 18 -

Fiscal year ended March 31, 2018(from April 1, 2017
to March 31, 2018)
2,547
–
2,547
33,629,260