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, 2016
(Based on Japanese GAAP)
November 8, 2016
Company name:Inabata & Co., Ltd.
Stock exchange listing: Tokyo
Stock code:
Representative:

8098
URL http://www.inabata.co.jp
Director, President
Katsutaro Inabata

Inquiries:
Director, Executive Officer
Scheduled date to file Quarterly Securities Report:

Kenichi Yokota
November 11, 2016

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

December 1, 2016
No

Holding of quarterly 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 six months ended September 30, 2016 (from April 1, 2016 to September 30, 2016)(1) Consolidated operating results (cumulative)
Net sales
Six months ended September 30, 2016
Six months ended September 30, 2015

Millions of yen
288,843
292,740

Percentages indicate year-on-year changes
Profit attributable toOperating income
Ordinary income
owners of parent% Millions of yen% Millions of yen% Millions of yen%
(1.3)
5,679
(4.3)
6,416
(4.8)
4,677
(2.3)
5.4
5,932
15.8
6,739(2.4)
4,785
(5.9)

Earnings per share

Diluted earnings per share

Yen
75.32
76.32

Six months ended September 30, 2016
Six months ended September 30, 2015

Yen––(2) Consolidated financial positionTotal assets
As of September 30, 2016
As of March 31, 2016

Net assets

Millions of yen
321,137
305,436

Equity ratio

Millions of yen
135,793
127,025

%
42.0
41.3

2. Cash dividends
Annual dividends per share

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

1st quarter-end

2nd quarter-end

3rd quarter-end

Fiscal year-end

Yen––

Yen
16.00
18.00

Yen–

Yen
20.00

Yen
36.00

–

18.00

36.00

Year ending March 31, 2017 (Forecast)Total

3. Forecast of consolidated financial results for the year ending March 31, 2017 (from April 1, 2016 to March 31, 2017)
Percentages indicate year-on-year changes
Profit attributable toNet sales
Operating income
Ordinary income
Earnings per shareowners of parent
Millions of yen% Millions of yen% Millions of yen% Millions of yen%
Yen
Full year
590,000
2.2
11,5001.1
12,500
2.0
9,000
(5.4)
144.93

14. Notes(1) Changes in significant subsidiaries during the six months ended September 30, 2016(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:

No
No

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, 2016

63,499,227 shares As of March 31, 201663,499,227 shares

Number of treasury shares at the end of the period
As of September 30, 2016

1,402,271 shares As of March 31, 2016

1,402,268 shares

Average number of shares during the period (cumulative from the beginning of the fiscal year)
Six months ended September 30, 2016

62,096,958 shares Six months ended September 30, 2015

262,697,138 shares

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

As of September 30, 2016

AssetsCurrent assets
Cash and deposits
Notes and accounts receivable - trade21,315145,565

19,972
155,745

Merchandise and finished goods
Work in process

41,472526

38,513503

Raw materials and supplies
Other

2,824
11,930

2,806
8,725

Allowance for doubtful accounts(1,188)(1,233)

Total current assets

222,446

225,033

Property, plant and equipment
Intangible assets

11,266
3,585

10,5583,445

Investments and other assets
Investment securities

62,71577,036

Net defined benefit asset
Other

2,502
3,599

2,485
3,673

Non-current assets

Allowance for doubtful accounts(679)(1,095)

Total investments and other assets

68,13782,099Total non-current assets

82,98996,104305,436

321,137

Notes and accounts payable - trade
Short-term loans payable

83,26444,38488,41942,162

Income taxes payable
Provision for bonuses

2,046
1,123

1,806
1,251

Other

7,328

5,896

138,147

139,536

Long-term loans payable
Provision for directors' retirement benefits

23,99332

25,11632

Provision for loss on guarantees
Net defined benefit liability

18
1,291

18
1,340

Other

14,927

19,300Total assets
Liabilities
Current liabilities

Total current liabilities
Non-current liabilities

Total non-current liabilities
Total liabilities

340,263

45,808

178,410

185,344(Millions of yen)
As of March 31, 2016

As of September 30, 2016

Net assets
Shareholders' equity
Capital stock

9,364

9,364

Capital surplus
Retained earnings

7,708
75,9097,708
79,344

Treasury shares(1,177)(1,177)

Total shareholders' equity

91,804

95,240

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

31,858(68)

41,561(110)

Foreign currency translation adjustment
Remeasurements of defined benefit plans

3,055
(612)

(1,373)(588)

Total accumulated other comprehensive income

34,23339,488987

1,064

127,025

135,793

305,436

321,137

Accumulated other comprehensive income

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

4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, 2015

September 30, 2016

Net sales
Cost of sales

292,740
272,089

288,843
268,449

Gross profit

20,651

20,394

Selling, general and administrative expenses

14,71814,714

Operating income

5,932

5,679

152
1,140

128
854

299
483

286
431

2,076

1,700

533

609

589
147

106247

Non-operating income
Interest income
Dividend income
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
Ordinary income

1,269

963

6,739

6,416–682

Extraordinary income
Gain on sales of investment securities–682

Profit before income taxes

Total extraordinary income

6,739

7,099

Income taxes - current

2,365

2,207

Income taxes - deferred(504)(0)

Total income taxes

1,860

2,206

Profit

4,878

4,892

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

593

215

4,785

4,677

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

ProfitOther comprehensive income

Six months ended

Six months ended

September 30, 2015

September 30, 2016

4,878

4,892

Valuation difference on available-for-sale securities
Deferred gains or losses on hedges(4,315)
69

9,673
(42)

Foreign currency translation adjustment
Remeasurements of defined benefit plans, net of tax(1,553)(7)(4,371)23(87)(72)(5,894)

5,211(1,015)

10,104(1,113)

9,932

97

171

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 cash flows(Millions of yen)

Cash flows from operating activities
Profit before income taxes

Six months ended

Six months ended

September 30, 2015

September 30, 2016

6,739

7,099

Depreciation
Increase (decrease) in allowance for doubtful accounts

1,129(90)937574Interest and dividend income
Interest expenses(1,293)
533

(982)
609

Share of (profit) loss of entities accounted for using equity
method

(299)

(286)

Loss (gain) on sales of investment securities
Decrease (increase) in notes and accounts receivable - trade–
1,756(682)(18,591)

Decrease (increase) in inventories
Decrease (increase) in other current assets(1,867)
(133)

(102)
209

Decrease (increase) in other non-current assets
Increase (decrease) in notes and accounts payable - trade218(2,806)

(318)
9,542

Increase (decrease) in other current liabilities
Other, net

(988)
549

(887)
510

Subtotal

3,446(2,368)Interest and dividend income received
Interest expenses paid

1,529
(527)

1,229
(528)

Income taxes paid

(2,535)(2,416)

Net cash provided by (used in) operating activities

1,913(4,083)

Payments into time deposits
Proceeds from withdrawal of time deposits

(239)
2,005

(202)
217

Purchase of property, plant and equipment
Proceeds from sales of property, plant and equipment(1,690)
764

(630)
1,694

Purchase of intangible assets
Purchase of investment securities

(290)
(314)

(266)
(576)

Proceeds from sales of investment securities
Purchase of shares of subsidiaries

46(373)914(400)

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

(116)
(0)

276
(48)Collection of long-term loans receivable
Other, net115
12485
(25)

Net cash provided by (used in) investing activities

(80)

1,437

Cash flows from investing activities

7

(Millions of yen)

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

Six months ended

Six months ended

September 30, 2015

September 30, 2016

(2,996)

3,826

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

1,792(1,754)

2,721(2,231)

Purchase of treasury shares
Cash dividends paid

(0)
(1,132)(0)(1,245)

(34)

(94)

(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

–

(41)

(35)

Net cash provided by (used in) financing activities(4,167)2,940

Effect of exchange rate change on cash and cash equivalents(243)(1,287)

Net increase (decrease) in cash and cash equivalents(2,576)(993)

Cash and cash equivalents at beginning of period

17,39417,08849–

14,867

16,094

Increase (decrease) in cash and cash equivalents resulting fromchange of scope of consolidation
Cash and cash equivalents at end of period8