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, 2016
(Based on Japanese GAAP)May 10, 2016
Company name:Inabata & Co., Ltd.

Stock exchange listing: Tokyo
Stock code:
8098
Representative:
Inquiries:

URL

http://www.inabata.co.jp

Director, President
Director, Executive Officer

Katsutaro Inabata
Kenichi Yokota

Scheduled date of ordinary general meeting of shareholders:
Scheduled date to file Securities Report:

June 23, 2016
June 24, 2016

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

June 3, 2016
No

Holding of financial results meeting:

Yes

TEL

03-3639-6421(for institutional investors and analysts)(Amounts less than one million yen are rounded down)

1. Consolidated financial results for the year ended March 31, 2016 (from April 1, 2015 to March 31, 2016)(1) Consolidated operating results
Percentages indicate year-on-year changesProfit attributable to
Net sales
Operating income
Ordinary income
owners of parent
Millions of yen% Millions of yen% Millions of yen% Millions of yen%
Year ended March 31, 2016
577,037
0.9
11,371
5.5
12,257
(7.3)
9,510
10.2
Year ended March 31, 2015
572,114
1.9
10,774(1.5)
13,217
6.1
8,630
(0.4)
Profit attributable toOrdinary
owners ofincome/total assets
parent/equity
Yen%%–
7.5
3.9–
7.1
4.2

Diluted earnings pershare

Earnings per shareYen
151.91137.20Year ended March 31, 2016
Year ended March 31, 2015

Operatingincome/net sales%
2.0
1.9(2) Consolidated financial position
Total assets
As of March 31, 2016
As of March 31, 2015

Net assets

Equity ratio

Millions of yen
305,436
326,862

Millions of yen
127,025
128,526

Cash flows fromoperating activities
Millions of yen
11,866
8,354

Cash flows frominvesting activities
Millions of yen(161)(3,044)

Net assets per share%
41.3
39.1

Yen
2,029.70
2,036.31(3) Consolidated cash flows

Year ended March 31, 2016
Year ended March 31, 2015

Cash flows from
Cash and cash equivalents
at end of period
financing activities
Millions of yen
Millions of yen(11,129)
17,088(8,193)
17,394

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

Year ended March 31, 2015
Year ended March 31, 2016
Year ending March 31, 2017
(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

%

%

––

15.00
16.00

––

18.00
20.00

33.00
36.00

2,075
2,252

24.1
23.7

1.7
1.8–18.00–18.00

36.00

124.8

3. Forecast of consolidated financial results for the year ending March 31, 2017 (from April 1, 2016 to March 31, 2017)
Net sales
Millions of yen
Six months ending
September 30, 2016
Full year

Percentages indicate year-on-year changes
Profit attributable toOperating income
Ordinary income
Earnings per shareowners of parent% Millions of yen% Millions of yen% Millions of yen%Yen

294,000

0.4

5,700(3.9)

6,100(9.5)

4,400(8.1)

70.86

590,000

2.2

11,5001.1

12,5002.0

9,000(5.4)

144.93

4. Notes(1) Changes in significant subsidiaries during the year ended March 31, 2016(changes in specified subsidiaries resulting in the change in scope of consolidation):No(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:

NoNo

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, 2016

63,499,227 shares As of March 31, 2015

63,499,227 shares

Number of treasury shares at the end of the period
As of March 31, 2016

1,402,268 shares As of March 31, 2015

801,996 shares

Average number of shares during the period
Year ended March 31, 2016

62,604,763 shares Year ended March 31, 2015

262,905,588 shares

Consolidated financial statements
Consolidated balance sheets(Millions of yen)
As of March 31, 2015

As of March 31, 2016

AssetsCurrent assets
Cash and deposits
Notes and accounts receivable - trade23,572
155,960

21,315145,565

Merchandise and finished goods
Work in process

44,477452

41,472526

Raw materials and supplies
Deferred tax assets

3,213
456

2,824
898

Other
Allowance for doubtful accounts

8,248(1,406)

11,031(1,188)

Total current assets

234,975

222,446

12,854(8,930)12,958(8,965)

Buildings and structures, net

3,924

3,992

Machinery, equipment and vehicles
Accumulated depreciation

17,244(12,650)

14,520(11,668)

Non-current assets
Property, plant and equipment
Buildings and structures
Accumulated depreciation

4,594

2,851

Land
Construction in progress

Machinery, equipment and vehicles, net

2,129
1,127

3,107
466

Other
Accumulated depreciation

2,995(2,121)

2,937(2,088)

Other, net

873

848

12,64911,266

Intangible assets

3,624

3,585

Investments and other assets
Investment securities

Total property, plant and equipment

68,25562,715Long-term loans receivable
Net defined benefit asset

1,531
3,795

1,056
2,502

Deferred tax assets
Other576
2,267

585
1,956

Allowance for doubtful accounts

(814)

(679)

Total investments and other assets

75,612

68,137

Total non-current assets
Total assets

391,886

82,989326,862

305,436(Millions of yen)
As of March 31, 2015

As of March 31, 2016

Liabilities
Current liabilities
Notes and accounts payable - trade91,15883,264

Short-term loans payable
Income taxes payable

54,4601,650

44,384
2,046

Accrued expenses
Provision for bonuses

1,297
1,150

1,227
1,123

Other

4,997

6,101

154,713138,147

24,354
16,63023,993
13,587

33
18

32
18

Net defined benefit liability
Other909
1,675

1,291
1,339

Total non-current liabilities

43,62240,263

198,335

178,410

Shareholders' equity
Capital stock

9,364

9,364

Capital surplus
Retained earnings

7,708
68,837

7,708
75,909Treasury shares(469)(1,177)85,44091,804

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

34,934(78)

31,858(68)

Foreign currency translation adjustment
Remeasurements of defined benefit plans

6,911
463

3,055
(612)

Total accumulated other comprehensive income

42,23034,233Total current liabilities
Non-current liabilities
Long-term loans payable
Deferred tax liabilities
Provision for directors' retirement benefits
Provision for loss on guarantees

Total liabilities
Net assets

Total shareholders' equity
Accumulated other comprehensive income

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

4855

987

128,526

127,025

326,862

305,436

Consolidated statements of income and consolidated statements of comprehensive income
Consolidated statements of income(Millions of yen)
Fiscal year ended
March 31, 2015

Fiscal year ended
March 31, 2016

Net sales

572,114577,037

Cost of sales

533,073

535,973

Gross profit

39,04041,064

Selling, general and administrative expenses

28,266

29,692

Operating income

10,774

11,371

273

280

2,017
81

1,584
–

515
985

600
1,121

3,873

3,587

945

1,275

–
484

873
551

Non-operating income
Interest income
Dividend income
Foreign exchange gains
Share of profit of entities accounted for using equity method
Miscellaneous income
Total non-operating income
Non-operating expenses
Interest expenses
Foreign exchange losses
Miscellaneous loss
Total non-operating expenses

1,430

2,701

13,217

12,257

Gain on sales of investment securities
Gain on sales of non-current assets

293
–

833
331

Total extraordinary income

293

1,165

371

–

371

–

Profit before income taxes

13,13913,422

Income taxes - current
Income taxes - deferred

3,429
945

4,227(553)

Total income taxes

4,375

3,673

Profit

8,764

9,748

Ordinary income
Extraordinary income

Extraordinary losses
Impairment loss
Total extraordinary losses

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

5133

238

8,6309,510

Consolidated statements of comprehensive income(Millions of yen)

ProfitOther comprehensive income

Fiscal year ended

Fiscal year ended

March 31, 2015

March 31, 2016
8,764

9,748

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

946
(58)

(2,959)(13)

Foreign currency translation adjustment
Remeasurements of defined benefit plans, net of tax

5,260
1,318

(3,823)(1,075)

310

(177)

7,778

(8,049)16,542

1,699

16,326

1,512

216

186

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 of parent
Comprehensive income attributable to non-controllinginterests

6Consolidated statements of changes in equity
Fiscal year ended March 31, 2015
(Millions of yen)
Shareholders' equity
Capital stock
Balance at beginning ofcurrent period

Capital surplus

9,364

Retained earnings

7,708

64,272

Total shareholders'equity

Treasury shares(932)

80,413

Changes of items during
periodDividends of surplus(2,142)(2,142)

Profit attributable toowners of parent

8,630

8,630

Purchase of treasury shares
Retirement of treasury
shares(0)

Disposal of treasury shares0(1,060)

Change in treasury sharesarising from change inequity in entities accounted
for using equity method
Change of scope ofconsolidation
Change of scope of equity
method

(604)

(604)

1,060

–

00665858(921)(921)

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

––

(0)

4,564

462

5,026

9,364

7,708

68,837(469)85,440

7

Accumulated other comprehensive income

Balance at beginning ofcurrent period

Valuationdifference on
available-forsale securities

Deferred gains
or losses onhedges

33,862(20)

Foreigncurrencytranslation
adjustment
1,609

Total
accumulated
otherof defined benefit
comprehensive
plansincomeRemeasurements(854)

34,596

Non-controllinginterests

Total net assets

871

115,881

Changes of items during
periodDividends of surplus(2,142)

Profit attributable toowners of parent

8,630

Purchase of treasury shares(604)

Retirement of treasury
shares–Disposal of treasury shares

0Change in treasury sharesarising from change inequity in entities accounted
for using equity method

6

Change of scope ofconsolidation

58

Change of scope of equity
method(921)

Net changes of items otherthan shareholders' equity

1,072

(58)

5,301

1,318

7,634

(15)

7,618

Total changes of items during
period

1,072

(58)

5,301

1,318

7,634

(15)

12,645

Balance at end of current
period34,934

(78)

6,911

463

42,230855

128,526

8Fiscal year ended March 31, 2016
(Millions of yen)
Shareholders' equity
Capital stock
Balance at beginning ofcurrent period

Capital surplus

9,364

Retained earnings

7,708

68,837

Treasury shares(469)

Total shareholders'equity85,440Changes of items during
periodDividends of surplus(2,131)(2,131)

Profit attributable toowners of parent

9,510

9,510

Purchase of treasury shares

(707)

(707)

Retirement of treasury
shares–

Disposal of treasury shares–

Change in treasury sharesarising from change inequity in entities accounted
for using equity method–

Change of scope ofconsolidation

(306)

(306)

Change of scope of equitymethod–

Net changes of items otherthan shareholders' equity–

Total changes of items during
periodBalance at end of current
period

–

–

7,072

(707)

6,364

9,364

7,708

75,909(1,177)91,8049Accumulated other comprehensive income

Balance at beginning ofcurrent period

Valuationdifference on
available-forsale securities

Deferred gains
or losses onhedges34,934(78)

Foreigncurrencytranslation
adjustment
6,911

Total
accumulated
otherof defined benefit
comprehensiveplansincomeRemeasurements

463

42,230Non-controllinginterests

Total net assets855

128,526

Changes of items during
periodDividends of surplus(2,131)

Profit attributable toowners of parent

9,510

Purchase of treasury shares(707)

Retirement of treasury
shares–

Disposal of treasury shares–

Change in treasury sharesarising from change inequity in entities accounted
for using equity method–

Change of scope ofconsolidation(306)

Change of scope of equity
method–Net changes of items otherthan shareholders' equity(3,075)10(3,855)(1,076)(7,997)131(7,865)

Total changes of items during
period(3,075)10(3,855)(1,076)(7,997)131(1,501)

Balance at end of current
period31,858

(68)

3,055

(612)

34,233987

127,025

10Consolidated statements of cash flows(Millions of yen)

Cash flows from operating activities
Profit before income taxes

Fiscal year ended

Fiscal year ended

March 31, 2015

March 31, 2016
13,13913,422

Depreciation
Impairment loss

2,150
371

2,270
–

Increase (decrease) in allowance for doubtful accounts
Interest and dividend income(614)(2,291)(192)(1,864)

945

1,275

(515)

(600)

(84)

–

Interest expensesShare of (profit) loss of entities accounted for using equity
methodIncrease (decrease) in provision for loss on businessliquidation
Loss (gain) on sales of non-current assets–(331)

Loss (gain) on sales of investment securities
Decrease (increase) in notes and accounts receivable - trade(293)(1,050)

(833)
3,616

Decrease (increase) in inventories
Decrease (increase) in other current assets(2,036)(1,536)947(1,139)Decrease (increase) in other non-current assets
Increase (decrease) in notes and accounts payable - trade

3871,129387(4,290)

917
(4)

1,438
795

Subtotal

10,614

14,899Interest and dividend income received
Interest expenses paid

2,487(929)

2,100(1,295)

Income taxes paid

(3,818)(3,839)Net cash provided by (used in) operating activities

8,354

11,866

Payments into time deposits
Proceeds from withdrawal of time deposits(5,821)
5,185(4,310)5,849

Purchase of property, plant and equipment
Proceeds from sales of property, plant and equipment(2,151)61(2,391)
780

Purchase of intangible assets
Purchase of investment securities

(514)
(45)

(676)
(431)

Proceeds from sales of investment securities
Purchase of shares of subsidiaries

754
(400)

1,535
(442)

Decrease (increase) in short-term loans receivable
Payments of long-term loans receivable

(68)
(248)

103
(252)

Collection of long-term loans receivable
Other, net

222
(16)

228
(155)

(3,044)(161)

Increase (decrease) in other current liabilities
Other, net

Cash flows from investing activities

Net cash provided by (used in) investing activities

11

(Millions of yen)

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

Fiscal year ended

Fiscal year ended

March 31, 2015

March 31, 2016

(13,118)(9,731)

Proceeds from long-term loans payable
Repayments of long-term loans payable

12,001(3,982)

3,955(2,370)Purchase of treasury shares
Cash dividends paid

(604)
(2,149)(707)(2,138)

(231)

(54)

–

(20)

Dividends paid to non-controlling interests
Payments from changes in ownership interests in subsidiaries
that do not result in change in scope of consolidation
Proceeds from changes in ownership interests in subsidiaries
that do not result in change in scope of consolidation
Other, net–20(108)(81)

Net cash provided by (used in) financing activities(8,193)(11,129)

Effect of exchange rate change on cash and cash equivalents

1,664(931)

Net increase (decrease) in cash and cash equivalents(1,218)(356)

Cash and cash equivalents at beginning of period

18,402

17,394210

49

17,39417,088

Increase (decrease) in cash and cash equivalents resulting fromchange of scope of consolidation
Cash and cash equivalents at end of period12