Nov. 7, 2016

Brief Financial Report for the Second Quarter Ending March 2017
[Based on Japanese Accounting Standards] (Consolidated)
Listed Company:PIOLAX Inc.

Code No.: 5988 (URL

http://www.piolax.co.jp)

Representative: President

Yukihiko Shimazu

Contact person in charge: General Manager, Management & Planning Department

Toru Nagashima (Tel. 045-731-1211)

Estimated submission date of quarterly report: November 8, 2016
Date scheduled to start dividend payment: December 1, 2016
Preparation of supplementary materials for quarterly financial results: Yes
Information meeting for quarterly financial results to be held: Yes (for corporate investors and investment analysts)(Amounts are rounded to the nearest million yen)

1. Consolidated performance for the second quarter ending March 31, 2017 (April 1, 2016 to September 30, 2016)(1) Consolidated business results (Total sum)

(Percentage changes from the same period the previous year)

Net sales

Operating income

Net income attributable toowners of PIOLAX Inc.

Ordinary income

Millions of yen%

Millions of yen%

Millions of yen%

Millions of yen%

31,514
31,335

0.6
6.5

4,898
4,400

11.3
1.4

5,310
4,839

9.7
1.6

3,800
3,446

10.3
3.2

FY3/17 2Q
FY3/16 2Q

Note: Comprehensive income

FY3/17 2Q-1,117 million yen (-%), FY 3/16 2Q

Quarter net income per
share
FY3/17 2Q
FY3/16 2Q

3,667 million yen (20.4%)

Quarter net income pershare-diluted

Yen

Yen

318.35288.69-(2) Consolidate financial position
Total assets

Equity capital ratio

Millions of yen%

83,44086,544

72,27773,93385.3
84.0

FY3/17 2Q
FY3/16(Reference) Equity capital:Net assets

Millions of yen

FY3/17 2Q 71,162 million yen, FY 3/16 72,686 million yen

2. Cash dividends
Annual dividends
End of first quarterEnd of second quarterEnd of third quarter

Term end

Full year

Yen

Yen

Yen

Yen

Yen

-

35.00
40.00

-

45.00

80.00

-

40.00

80.00

FY3/16
FY3/17
FY3/17 (Forecast)

Note: Changes in the latest forecasts released: No

3. Forecast consolidated performance for the year ending March 31, 2017 (April 1, 2016 to March 31, 2017)
Net sales

Annual(Percentage changes from the same period of the previous year)
Net income attributable toNet incomeper shareowners of PIOLAX Inc.

Operating income

Ordinary income

Millions of yen%

Millions of yen%

Millions of yen%

Millions of yen%

Yen

61,500

-4.4

8,600

-6.0

9,100-9.6

6,200

-11.7

519.33

Note: Changes in the latest forecasts released: No-1-PIOLAX Inc. (5988) Brief Financial Report for the Second Quarter Ending March 2017

3. [Quarterly consolidated financial statement](1) Quarterly consolidated balance sheet(Millions of Yen)

Previous consolidated FY

Current second quarter(March 31, 2016)(September 30, 2016)

AssetsCurrent assets

Allowance for bad loans

21,517
13,055
1,228
187
4,310
1,595
1,768
2,124
-42

21,62912,535
1,376
3,824
1,365
1,529
2,222
-17

Total current assets

45,74644,466

Construction in progress

7,872
7,663
2,553
5,179
62
1,122

7,252
6,704
2,234
5,091
88
1,736

Total tangible fixed assets

24,455

23,106

Other

4904

2
863

Total intangible fixed assets

909

866

Allowance for bad loans

14,1971,235-013,903
1,097-0Total investments and other assets

15,43315,00040,79738,97386,544

83,440Cash and cash equivalents
Notes and accounts receivable-trade
Electronically recorded monetary claims-operating
Marketable securities
Goods and Finished products
Material in progress
Raw materials and inventory goods
OtherFixed assets
Tangible fixed assets
Buildings and structures (net)
Machinery equipment and vehicles (net)
Tools, furniture and fixture (net)Land
Lease asset (net)

Intangible fixed assets
Goodwill

Investments and other assets
Investment account securities
Other

Total fixed assets
Total assets-2-PIOLAX Inc. (5988) Brief Financial Report for the Second Quarter Ending March 2017(Millions of Yen)

Previous consolidated FY

Current second quarter(March 31, 2016)(September 30, 2016)

Liabilities
Current liabilities

Other

3,199
881
1,050
831
3,468

2,913
508
971
821
2,878

Total current liabilities

9,430

8,093

Other

168
18
2,993

163
18
2,886

Total long-term liabilities

3,180

3,068

12,611

11,162

Treasury stock

2,960
2,697
66,193-2,8372,960
2,697
69,456-2,837

Total shareholders’ equity

69,014

72,277

Remeasurements of defined benefit plans

1,615
2,465-408

1,354-2,093-376

Total accumulated other comprehensive income

3,672-1,115

Accounts payable-trade
Short-term borrowings
Accrued income taxes
Allowance reserve

Long-term liabilities
Net defined benefit liability
Asset removal liabilities

Total liabilities
Total equity
EquityCommon stock
Capital surplus
Retained earnings

Accumulated other comprehensive income
Unrealized gain on available-for-sale securities
Foreign currency translation adjustments

Non-controlling interests

1,246

1,115

Total equity

73,93372,27786,544

83,440Total liabilities and equity-3-PIOLAX Inc. (5988) Brief Financial Report for the Second Quarter Ending March 2017(2) Consolidated Statements of Income[FY2017 second quarter](Millions of Yen)

Previous second quarter

Current second quarter(April 1, 2015 to September 30, 2015)(April 1, 2016 to September 30, 2016)

Cost of sales

31,335
22,116

31,514
21,796Gross profit

9,218

9,717

Selling, general and administrative expenses

4,818

4,819

Operating income

4,400

4,898

Other

29
24358
110

32
31368
81

Total non-operating income

523

512

31
1013622

12841
14
320

Net sales

Non-operating income
Interest income
Dividend income
Equity method investment gain

Non-operating expenses
Interest expense
Loss on valuation of derivatives
Foreign exchange loss
Loss on disposal of property and equipment
Cost of lease revenue
Other84

101

Ordinary income

4,839

5,310

Quarterly net income before taxes and other adjustments

4,839

5,310

Corporate taxes

1,371

1,464

Net income before non-controlling interests

3,468

3,845

Total non-operating expenses

Net income attributable to non-controlling interests

2144

Net income attributable to owners of PIOLAX Inc.

3,446

3,800-4-