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 Year Ended March 31, 2017
(Based on Japanese GAAP)May 12, 2017
Company name:

CREO CO., LTD.

Stock exchange listing: Tokyo
Stock code:
9698
Representative:
Inquiries:

URL

http://www.creo.co.jp

President and Representative Director
Managing Director, Financial Director

Junichi Kakizaki
Takashi AmedaScheduled date of ordinary general meeting of shareholders:
Scheduled date to file Securities Report:

June 21, 2017
June 28, 2017

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

June 22, 2017
No

Holding of financial results meeting:

Yes

TEL

03-5783-3560(May 15, 2017)(Amounts less than one million yen are rounded down)

1. Consolidated financial results for the year ended March 31, 2017 (from April 1, 2016 to March 31, 2017)(1) Consolidated operating results
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%
Year ended March 31, 2017
11,55912.2
296(14.8)
333(9.5)
267(35.4)
Year ended March 31, 2016
10,305(9.8)
348(2.6)
368(3.3)
413
93.8

Earnings per share

Profit attributable toOrdinary profit/total Operating profit/net
owners ofassets
sales
parent/equity
Yen
%%%
–
5.2
4.7
2.6
–
8.4
5.2
3.4

Diluted earnings pershare

Yen
31.11
47.79

Year ended March 31, 2017Year ended March 31, 2016
(2) Consolidated financial position

Total assets
As of March 31, 2017
As of March 31, 2016

Net assets

Equity ratio

Millions of yen
7,255
7,091

Millions of yen
5,160
5,165

Cash flows fromoperating activities
Millions of yen
502
499

Cash flows frominvesting activities
Millions of yen
(529)
(341)

Net assets per share%
70.7
72.2

Yen
611.12591.66(3) Consolidated cash flows

Year ended March 31, 2017
Year ended March 31, 2016

Cash flows from
Cash and cash equivalents
at end of period
financing activities
Millions of yen
Millions of yen(243)
3,328
(112)
3,599

2. Cash dividends
Annual dividends per share
1st quarter-end 2nd quarter-end 3rd quarter-end Fiscal year-end

Year ended March 31, 2016
Year ended March 31, 2017
Year ending March 31, 2018
(Forecast)of dividends
Total cash
Dividend payout Ratio
to net assets
dividends (Total) ratio (Consolidated) (Consolidated)

Total

Yen

Yen

Yen

Yen

Yen

Millions of yen

%%

––

0.00
–––

15.00
13.00

15.00
13.00

129
109

31.4
41.8

2.6
2.1

–––

14.00

14.00

142.0

3. Forecast of consolidated financial results for the year ending March 31, 2018 (from April 1, 2017 to March 31, 2018)
Net sales
Millions of yen
Six months ending
September 30, 2017
Full year

Percentages indicate year-on-year changes
Profit attributable toOperating profit
Ordinary profit
owners of parent% Millions of yen% Millions of yen% Millions of yen
%

5,660

5.2

10–20–

12,500

8.1

400

34.8

410

22.9

4. Notes(1) Changes in significant subsidiaries during the year ended March 31, 2017(changes in specified subsidiaries resulting in the change in scope of consolidation):(20) (98.3)
280

3.9

Yes

(2) 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
Yes

Restatement of prior period financial statements:

No(3) Number of issued shares (common shares)
Total number of issued shares at the end of the period (including treasury shares)
As of March 31, 2017

8,650,369 shares As of March 31, 2016

9,237,319 shares

257,720 shares As of March 31, 2016

586,055 shares

Number of treasury shares at the end of the period
As of March 31, 2017
Average number of shares during the period
Year ended March 31, 2017

8,590,397 shares Year ended March 31, 2016

2

8,654,483 shares

Consolidated financial statements
Consolidated balance sheets(Millions of yen)
As of March 31, 2016

As of March 31, 2017

AssetsCurrent assets
Cash and deposits
Notes and accounts receivable - trade

3,599
2,176

3,328
2,234

Merchandise and finished goodsWork in process

19167

2145

Other

193278

6,155

5,990

Total current assets
Non-current assets
Property, plant and equipment
Buildings and structures

233

303

Accumulated depreciation and impairment loss

(102)

(70)

Buildings and structures, net

130

233

167

180

(123)

(113)

43

66

Tools, furniture and fixtures
Accumulated depreciation and impairment loss
Tools, furniture and fixtures, net
Leased assets

1446

Accumulated depreciation

(1)

(12)

Leased assets, net

12

34

0

18

186

352

Intangible assets
Goodwill

26132

Patent rightSoftware

2392

1428

Software in progressOther11236
2

Total intangible assets

435

600

Land
Total property, plant and equipment

Investments and other assets
Investment securities

99

9

Other
Allowance for doubtful accounts

213(0)

326(23)

Total investments and other assets

313

312

935

1,265

7,091

7,255

Total non-current assets
Total assets3

(Millions of yen)
As of March 31, 2016

As of March 31, 2017

Liabilities
Current liabilities
Accounts payable - trade

462

531

Accounts payable - other
Income taxes payable

284
80

291
65

Provision for bonuses
Provision for directors' bonuses

4292395
4

Other

525

653

1,784

1,941

Accrued directors' retirement benefits
Net defined benefit liability

26
32

26–

Asset retirement obligations
Other

50
3159
68

Total non-current liabilities

141

154

1,925

2,095

Shareholders' equity
Capital stock

3,149

3,149

Capital surplus
Retained earnings

743
1,384

562
1,521

Treasury shares

(180)

(106)

Total shareholders' equity

5,096

5,127

Valuation difference on available-for-sale securities

21

1

Total accumulated other comprehensive income

211

Total current liabilities
Non-current liabilities

Total liabilities
Net assets

Accumulated other comprehensive income

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

447

31

5,165

5,160

7,091

7,255

Consolidated statements of income and consolidated statements of comprehensive income
Consolidated statements of income(Millions of yen)
Fiscal year ended
March 31, 2016

Fiscal year ended
March 31, 2017

Net sales

10,305

11,559

Cost of sales

8,267

9,272

Gross profit

2,038

2,287

Promotion expenses
Advertising expenses

857

559

Salaries, allowances and bonuses
Retirement benefit expenses

615
19674
22

Provision for bonuses
Directors' compensations

66
189

55241

Other

732

931

1,690

1,990

348

296

Non-operating income
Interest income

11

Dividend income
Insurance fee

2–32

Subsidy income
Other

154

20
12

Total non-operating income

23

39

00

Other

32

Total non-operating expenses

33368

333

–
1

28
36Selling, general and administrative expenses

Total selling, general and administrative expenses
Operating profit

Non-operating expenses
Interest expenses

Ordinary profit
Extraordinary income
Gain on abolishment of retirement benefit plan
Gain on sales of investment securities
Gain on sales of shares of subsidiaries

204–

Total extraordinary income

205

65

Loss on retirement of non-current assets
appraisal loss software

031

0–

Office transfer expenses
Other–
025
1

Extraordinary losses

3127

Profit before income taxes

Total extraordinary losses

542

371

Income taxes - current

12292

Income taxes - deferred2

5

Total income taxes

125

97

Profit

417

273

36413

267

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

5Consolidated statements of comprehensive income(Millions of yen)

ProfitOther comprehensive income

Fiscal year ended

Fiscal year ended

March 31, 2016

March 31, 2017
417

273

Valuation difference on available-for-sale securities

(10)

(20)

Total other comprehensive income

(10)

(20)

Comprehensive income

406

253

Comprehensive income attributable toComprehensive income attributable to owners of parent

403

246

36

Comprehensive income attributable to non-controllinginterests

6

Consolidated statements of changes in equity
Fiscal year ended March 31, 2016
(Millions of yen)
Shareholders' equity
Capital stock
Balance at beginning of current
periodCapital surplus

3,149

Retained earnings

743

Total shareholders'equityTreasury shares

1,013

(178)

4,728

Changes of items during period
Dividends of surplus

(43)

(43)

Profit attributable to ownersof parent

413

413

Purchase of treasury shares

(1)

(1)

Retirement of treasury shares–

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

Net changes of items otherthan shareholders' equity
Total changes of items during
periodBalance at end of current period

––370

(1)

368

3,149

743

1,384(180)5,096

Accumulated other comprehensive income

Balance at beginning of current
periodValuation difference on
available-for-salesecurities

Total accumulated
other comprehensive
income32

32

Non-controllinginterests

Total net assets

39

4,799

Changes of items during period
Dividends of surplus(43)

Profit attributable to ownersof parent

413

Purchase of treasury shares(1)

Retirement of treasury shares–

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

Net changes of items otherthan shareholders' equity

(10)

(10)

8(2)

Total changes of items during
period

(10)

(10)

8366

Balance at end of current period

2121

47

5,165

7Fiscal year ended March 31, 2017
(Millions of yen)
Shareholders' equity
Capital stock
Balance at beginning of current
periodCapital surplus

3,149

Retained earnings

743

1,384

Total shareholders'equity

Treasury shares
(180)

5,096

Changes of items during period
Dividends of surplus

(129)

(129)

Profit attributable to ownersof parent

267

267

Purchase of treasury shares
Retirement of treasury shares(182)

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

1(108)

(108)

182

–1

Net changes of items otherthan shareholders' equity
Total changes of items during
periodBalance at end of current period

3,149(181)

137

74

30562

1,521(106)

5,127

Accumulated other comprehensive income

Balance at beginning of current
periodValuation difference on
available-for-salesecurities

Total accumulated
other comprehensive
income2121

Non-controllinginterests

Total net assets

47

5,165

Changes of items during period
Dividends of surplus(129)

Profit attributable to ownersof parent267

Purchase of treasury shares(108)

Retirement of treasury shares–Change in ownership interestof parent due to transactions
with non-controlling interests

1

Net changes of items otherthan shareholders' equity

(20)

(20)

(15)

(36)

Total changes of items during
period

(20)

(20)

(15)

(5)

Balance at end of current period

1

131

5,160

8

Consolidated statements of cash flows(Millions of yen)

Cash flows from operating activities
Profit before income taxes
Depreciation
Amortization of goodwill
Increase (decrease) in allowance for doubtful accounts
Increase (decrease) in provision for bonuses
Increase (decrease) in provision for directors' bonuses
Increase (decrease) in provision for retirement benefits
Interest and dividend income
Interest expenses
Loss on retirement of property, plant and equipment
Loss (gain) on sales and valuation of investment securities
Loss (gain) on sales of shares of subsidiaries
appraisal loss software
Decrease (increase) in notes and accounts receivable - trade
Decrease (increase) in inventories
Increase (decrease) in notes and accounts payable - trade
Increase (decrease) in accounts payable - other
Increase (decrease) in accrued consumption taxes
Decrease (increase) in claims provable in bankruptcy, claims
provable in rehabilitation
Other, net
SubtotalInterest and dividend income received
Interest expenses paid
Income taxes paid
Net cash provided by (used in) operating activities
Cash flows from investing activities
Purchase of property, plant and equipment
Proceeds from sales of property, plant and equipment
Purchase of intangible assets
Proceeds from sales of intangible assets
Purchase of investment securities
Proceeds from sales of investment securities
Payments for guarantee deposits
Proceeds from collection of guarantee deposits
Purchase of shares of subsidiaries
Purchase of shares of subsidiaries resulting in change in scopeof consolidation
Payments for sales of shares of subsidiaries resulting inchange in scope of consolidation
Proceeds from purchase of shares of subsidiaries resulting inchange in scope of consolidation
Payments of short-term loans receivableCollection of short-term loans receivable
Proceeds from maturity of insurance funds
Payments for asset retirement obligations
Other, net
Net cash provided by (used in) investing activities

9

Fiscal year ended

Fiscal year ended

March 31, 2016

March 31, 2017
542
242
2(1)
223(4)00(1)(204)
31(37)
25
65(8)
(102)

371
274
38(5)
(33)
2(96)
(4)
00(36)––
56
41
53(85)
44

0–

23
581
4(0)
(85)
499

(56)
564
4(0)
(66)
502

(14)
1(303)0(0)5(1)
0–(189)–(295)––
97(136)61(19)

(53)

–(3)

––

38(30)
56––
0(341)(50)
05(43)
0(529)

(Millions of yen)

Cash flows from financing activities
Decrease in short-term loans payable
Repayments of long-term loans payable
Cash dividends paid
Purchase of treasury shares
Dividends paid to non-controlling interests
Repayments of lease obligations
Net cash provided by (used in) financing activities
Net increase (decrease) in cash and cash equivalents
Cash and cash equivalents at beginning of period
Cash and cash equivalents at end of period

Fiscal year ended

Fiscal year ended

March 31, 2016

March 31, 2017
(29)
(35)
(43)
(1)
(0)
(0)
(112)
45
3,553
3,599

10––
(129)
(108)
(1)
(3)
(243)
(270)
3,599
3,328