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, 2017
(Based on Japanese GAAP)
October 31, 2017
Company name:
CREO CO., LTD.
Stock exchange listing: Tokyo
Stock code:
Representative:

9698
URL http://www.creo.co.jp
President and Representative Director

Junichi Kakizaki

Inquiries:
Managing Director, Financial DirectorScheduled date to file Quarterly Securities Report:

Takashi Ameda
November 13, 2017

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

Holding of quarterly financial results meeting:

Yes

TEL

03-5783-3560(for analysts, institutional investors and general investors)(Amounts less than one million yen are rounded down)
1. Consolidated financial results for the six months ended September 30, 2017 (from April 1, 2017 to September 30, 2017)(1) Consolidated operating results (cumulative)
Net salesSix months ended September 30, 2017
Six months ended September 30, 2016

Millions of yen
5,582
5,379

Percentages indicate year-on-year changes
Profit attributable toOperating profit
Ordinary profit
owners of parent% Millions of yen% Millions of yen% Millions of yen%
3.8
29 (35.6)
58 (20.8)
20 (48.7)
13.5
46 (46.9)
73 (28.7)
40 (83.8)

Earnings per share

Diluted earnings per share
Yen
2.51
4.70

Six months ended September 30, 2017
Six months ended September 30, 2016

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

Net assets

Millions of yen
7,102
7,255

Equity ratio

Millions of yen
5,029
5,160%
70.4
70.7

2. Cash dividends
Annual dividends per share

Year ended March 31, 2017
Year ending March 31, 2018

1st quarter-end

2nd quarter-end

3rd quarter-end

Fiscal year-end

Yen––

Yen
0.00
0.00

Yen–

Yen
13.00

Yen
13.00

–

14.00

14.00

Year ending March 31, 2018 (Forecast)Total

3. Forecast of consolidated financial results for the year ending March 31, 2018 (from April 1, 2017 to March 31, 2018)
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%
Full year
12,500
8.1
400
34.8
410
22.9
280
3.91

4. Notes(1) Changes in significant subsidiaries during the six months ended September 30, 2017(changes in specified subsidiaries resulting in the change in scope of consolidation):Yes(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, 2017

8,650,369 shares As of March 31, 2017

8,650,369 shares

350,927 shares As of March 31, 2017257,720 shares

Number of treasury shares at the end of the period
As of September 30, 2017

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

8,318,983 shares Six months ended September 30, 2016

28,650,880 shares

Quarterly consolidated financial statements
Consolidated balance sheets(Millions of yen)
As of March 31, 2017
AssetsCurrent assets
Cash and deposits
Notes and accounts receivable - trade
Merchandise and finished goods
Work in process
OtherTotal current assets
Non-current assets
Property, plant and equipment
Intangible assets
Goodwill
Other
Total intangible assets
Investments and other assets
Other
Allowance for doubtful accounts
Total investments and other assets
Total non-current assets
Total assets

As of September 30, 2017

3,328
2,234
2
145
278

3,471
1,816
5399
266

5,990

5,959

352

333

132
468

113
414

600

527

335
(23)

304
(23)

312

281

1,265

1,142

7,255

7,102

Liabilities
Current liabilities
Accounts payable - trade
Income taxes payable
Provision for bonuses
Provision for directors' bonuses
Other531
65
395
4944

461
62
469–
937

Total current liabilities

1,941

1,930

26–
59
68

26
059
56

154

142

Total liabilities

2,095

2,073

Net assets
Shareholders' equity
Capital stock
Capital surplus
Retained earnings
Treasury shares

3,149
562
1,521(106)

3,149
562
1,433
(148)

Non-current liabilities
Directors' retirement benefits payable
Net defined benefit liability
Asset retirement obligations
Other
Total non-current liabilities

5,127

4,996

Accumulated other comprehensive income
Valuation difference on available-for-sale securities

Total shareholders' equity

10

Total accumulated other comprehensive income

10

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

331

32

5,160

5,029

7,255

7,102

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, 2016

September 30, 2017

Net sales
Cost of sales

5,379
4,349

5,582
4,504

Gross profit

1,030

1,077

Selling, general and administrative expenses

983

1,047

Operating profit

4629

Interest income
Dividend income

0110

Subsidy income
Other1511208

Total non-operating income

293000

Other

11

Total non-operating expenses

11

Ordinary profit

7358

Extraordinary income
Gain on sales of investment securities

–2–

202

Non-operating income

Non-operating expenses
Interest expenses

Total extraordinary income
Extraordinary losses
Other02

Profit before income taxes

Total extraordinary losses

7358

Income taxes - current
Income taxes - deferred

29033
0

Total income taxes2934

Profit43

23

Profit attributable to non-controlling interests

32

Profit attributable to owners of parent

40

204

Consolidated statements of comprehensive income (cumulative)(Millions of yen)

ProfitOther comprehensive income

Six months ended

Six months ended

September 30, 2016

September 30, 2017
43

23

Valuation difference on available-for-sale securities

(0)

(1)

Total other comprehensive income

(0)

(1)

Comprehensive income

43

22

Comprehensive income attributable toComprehensive income attributable to owners of parent

40

20

31

Comprehensive income attributable to non-controllinginterests

5Consolidated statements of cash flows(Millions of yen)

Cash flows from operating activities
Profit before income taxes

Six months ended

Six months ended

September 30, 2016

September 30, 2017
7358

130
19136
19

Increase (decrease) in allowance for doubtful accounts
Increase (decrease) in provision for bonuses

04–74

Increase (decrease) in provision for directors' bonuses
Interest and dividend income–(1)

(4)
(1)

Interest expenses
Loss on retirement of property, plant and equipment

000–

Loss (gain) on sales of investment securitiesDecrease (increase) in notes and accounts receivable - trade–535

(2)
418

Decrease (increase) in inventories
Increase (decrease) in notes and accounts payable - trade

(108)
(40)

(256)
(70)

Increase (decrease) in accounts payable - other
Other, net(145)
17(158)168

Subtotal

485

385Interest and dividend income received
Interest expenses paid

1(0)

1(0)

Income taxes paid

(44)

(52)

Net cash provided by (used in) operating activities

442

333

Purchase of property, plant and equipment
Purchase of intangible assets

(15)
(221)

(4)
(60)Payments for guarantee deposits
Proceeds from sales of investment securities

(79)
–

(16)
5

Proceeds from collection of guarantee deposits
Payments of loans receivable

0(50)

43
–

Proceeds from purchase of shares of subsidiaries resulting inchange in scope of consolidation

38–

Depreciation
Amortization of goodwill

Cash flows from investing activities

Other, net
Net cash provided by (used in) investing activities

0(0)

(328)

(33)

(0)
(129)

(42)
(108)

(1)
(1)

(1)
(4)

(133)

(156)

Cash flows from financing activities
Purchase of treasury shares
Cash dividends paid
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

(19)

143

Cash and cash equivalents at beginning of period

3,599

3,328

Cash and cash equivalents at end of period

3,580

3,471

6