May 12, 2014

Brief Financial Report for the Year Ended March 31, 2014
[Based on Japanese Accounting Standards] (Consolidated)
Listed Company Name:PIOLAX Inc.

Listing Exchanges: Tokyo Stock Exchange (First Section)

Code No.:

5988

URL:

Representative:

President Yukihiko Shimazu

Contact:

Accounting Group Leader Management & Planning Dept. Shinichi Gohara

Date scheduled for general meeting of shareholders: June 25, 2014

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

045-731-1211

Date scheduled to start dividend payment: June 26, 2014

Date scheduled to submit asset securities report: June 26, 2014
Preparation of supplementary materials for quarterly financial results: None
Information meeting for financial results to be held: Yes (For institutional investor and investment analyst)(Amounts are rounded to the nearest million yen.)

1. Consolidated performance for the year ended March 31, 2014 (April 1, 2013 to March 31, 2014)(1) Consolidated business results(Percentage changes from previous period.)

Net sales

Ordinary income

Net income

Millions of yen%

Millions of yen%

Millions of yen%

Millions of yen%

54,712
48,476

12.9
4.2

7,566
5,189

45.8
10.4

8,441
5,776

46.111.5

5,722
3,757

52.3
10.4

FY3/14
FY3/13(Note)

Operating income

Comprehensive income

FY3/148,873 million yen (55.4%)

Net income pershare-diluted

Net income per share

FY3/14
FY3/13

FY3/135,710 million yen (90.8%)

Net income totreasury shares

Ordinary income
to total assets

Operating income
to net sales

YenYen%%%460.06302.05

-9.9
7.3

12.1
9.4

13.8
10.7(Reference) Investment profit (loss) arising from equity method

FY3/14609 million yen

FY3/13478 million yen(2) Consolidated financial position
Total assets

Equity capital ratio

Net assets per share

Millions of yen％

Yen

75,86564,10962,73754,34581.2
84.0

4,955.31
4,327.01

FY3/14
FY3/13(Reference) Shareholders’ equity

Net assets

Millions of yen

FY3/14

61,637 million yen

FY3/1353,822 million yen(3) Consolidated cash flows
Net cash flows fromoperating activities

Net cash flows frominvesting activities

Net cash flows fromfinancing activities

Cash and cash equivalents
at ending of the term

Millions of yen

Millions of yen

Millions of yen

Millions of yen

8,014
7,220-6,992-4,150-293-258

15,81815,049FY3/14
FY3/13

2. Dividends
Annual dividends(Record date)
FY3/13
FY3/14
FY3/15 (forecast)End of firstquarter
Yen

End of secondquarter
Yen

End of thirdquarter
Yen-

17.50
22.50
22.50

-(Note) Breakdown of the term-end dividends (FY3/13)

Ordinary dividend

Term end

Full year

Total dividend
amount(annual)

Payout ratio(consolidated)

Dividend on
net assets(consolidated)

Yen

Yen

Millions of yen%%

27.50
22.50
22.50

45.00
45.00
45.00

577
577

14.99.812.2

1.1
1.0

17.50 Yen

Commemorative dividend

10.00 Yen

3. Consolidated performance forecast for the year ending March 31, 2015 (April 1, 2014 to March 31, 2015)(Percentage changes from previous period, and changes from the previous first half term for the same term)

Net salesFirst half (total sum)
AnnualOperating income

Ordinary income

Net income
per share

Net income

Millions of yen%

Millions of yen%

Millions of yen%

Millions of yen%

Yen

27,70056,600

5.2
3.4

3,300
6,900

-3.5-8.8

3,600
7,500

-6.7
-11.2

2,300
4,600

-17.6-19.6

184.91369.82-1-PIOLAX Inc. (5988) Brief Financial Report for the year ended March 31, 2014

4. Consolidated financial statement(1) Consolidated balance sheet(Millions of yen)

FY 2012(As of March 31, 2013)

FY 2013(As of March 31, 2014)

AssetsCurrent assets
Cash and cash equivalents

14,881

16,767

Notes and accounts receivable-trade

10,626

13,763

187

187

Goods and finished products

3,264

3,933

Material in progress

1,245

1,574

Raw materials and inventory goods

1,341

1,521

Marketable securities

Deferred income taxes

708773

Other current assets

1,368

1,427

-38

-48

33,58439,90011,196

12,307

Accumulated depreciation-6,797-7,288

Buildings and structures (net)

4,398

5,019

Machinery equipment, and vehicles

18,78922,381-13,350-14,808

5,438

7,572

Allowance for bad loans
Total current assets
Fixed assets
Tangible fixed assets
Buildings and structures

Accumulated depreciation
Machinery equipment and vehicles (net)
Tools, furniture and fixture
Accumulated depreciation
Tools, furniture and fixture (net)Land
Lease asset

24,592

26,376-23,222-24,487

1,3691,888

4,722

5,159

113

91

-32-21

Accumulated depreciation

8070

Construction in progress

1,497

1,768

Total tangible fixed assets

17,507

21,478*2*2

Lease asset (net)

Intangible fixed assets
Goodwill

0

90-

Other

608

904

Total intangible fixed assets

609

913

Lease asset

Investments and other assets*1

Investment securities
Deferred income taxes
Other assets
Allowance for bad loans
Total investments and other assets
Total fixed assets
Total assets-2-11,281*1

12,278

4946

1,076

1,248

-0-0

12,408

13,57330,524

35,96564,10975,865PIOLAX Inc. (5988) Brief Financial Report for the year ended March 31, 2014
(Millions of yen)

FY 2012(As of March 31, 2013)

FY 2013(As of March 31, 2014)

Liabilities
Current liabilities
Accounts payable-trade

2,127

3,467

Short-term borrowings

625

778

Lease obligation

148

Accrued income taxes

882

1,847

Accrued bonuses to employees

730

775

Accrued bonuses to directors

14

Reserve for environmental measures

7331

Other current liabilities

2,815

3,373

Total current liabilities

7,27110,286

Long-term liabilities

3123

1,886

2,259

113

-

Net defined benefit liability-109

Asset removal liabilities

1818

Other long-term liabilities

442

430

Lease obligation
Deferred tax liabilities
Accrued retirement allowances

2,492

2,842

9,763

13,128

Common stock

2,960

2,960

Capital surplus

2,696

2,696

Retained earnings

49,32554,426-710-710

54,27359,373863

1,084-1,314

1,427

Total long-term fixed liabilities
Total liabilities
Total equity
EquityTreasury stock
Total shareholders’ equityAccumulated other comprehensive income
Valuation difference on available-for-salesecurities
Foreign currency translation adjustments
Remeasurements of defined benefit plans
Total accumulated other comprehensive income

Minority interests in consolidated subsidiaries
Total equity
Total liabilities and equity-3---248

-451

2,263

523

1,099

54,34562,737

64,10975,865PIOLAX Inc. (5988) Brief Financial Report for the year ended March 31, 2014
(Millions of yen)

(2) Consolidated statements of income and Consolidated comprehensive income(Consolidated statements of income)
FY 2012(April 1, 2012 to March 31, 2013)

FY 2013(April 1, 2013 to March 31, 2014)

48,476

Net sales*2 *3

Cost of sales

36,04454,712*2 *3

12,432Gross profit*1

Selling, general and administrative expenses
Operating income

7,243

39,004
15,707

*1

8,141

5,189

7,566

2350

Non-operating income
Interest income
Dividend income

2630

Equity method investment gain

478

609

Other

130

273

Total non-operating income

659

963

Interest expense

1935

Loss on valuation of derivative

7-

Loss on disposal of property and equipment

1714Leases

810

Other

18

29

Non-operating expenses

Total non-operating expenses
Ordinary income

71

89

5,776

8,441

Extraordinary income*4Compensation income-

Total extraordinary income

-334

334

Provision of reserve for environmental measures

73-

Total special losses

73-

Net income before taxes and other adjustments

5,703

8,775

Corporate taxes

Specials losses

1,765

2,809

Income taxes-deferred

134

184

Total corporate taxes

1,899

2,993

Net income before minority interests in income or loss ofminority shareholders adjustments

3,803

5,782

Minority interests in income of minority shareholders
Current net income-4-

4659

3,757

5,722