Aug. 7, 2017

Brief Financial Report for the First Quarter Ending March 2018
[Based on Japanese Accounting Standards] (Consolidated)
Listed Company: PIOLAX Inc.
Code No.:

5988

Representative:(URL

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

President

Contact person in charge:

Yukihiko Shimazu
General Manager, Management & Planning Department

Toru Nagashima (Tel. 045-731-1211)

Estimated submission date of quarterly report: August 8, 2017
Date scheduled to start dividend payment:-Preparation of supplementary materials for quarterly financial results:
Information meeting for quarterly financial results to be held:

NoneNone(Amounts are rounded to the nearest million yen)

1. Consolidated performance for the first quarter ending March 31, 2018 (April 1, 2017 to June 30, 2017)(1) Consolidated business results (Total sum)

(Percentage changes from the same period the previous year)

Net sales

Net income attributable toowners of PIOLAX Inc.

Ordinary income

Millions of yen%

Millions of yen%

Millions of yen%

Millions of yen%

16,495
15,609

5.7
1.8

2,625
2,458

6.8
19.0

2,805
2,677

4.8
16.9

2,080
1,926

8.0
20.6

FY3/18 1Q
FY3/17 1Q

Note:Operating income

Comprehensive income

FY3/18 1Q

1,377 million yen (-%), FY 3/17 1Q

Quarter net income per
share
FY3/18 1Q
FY3/17 1Q-155 million yen (-%)

Quarter net income pershare-diluted

YenYen

58.09
53.80

-The Company implemented a stock split of 3 shares for each 1 share of common stock with an effective date of April 1, 2017. Quarter net income per share
was calculated based on the assumption that the aforementioned stock split had been made at the beginning of the previous consolidated fiscal year.

(2) Consolidate financial positionTotal assets

FY3/18 1Q

Equity capital ratio

Millions of yen%

92,80392,66880,122
79,42484.9
84.4

FY3/18 1Q
FY3/17(Reference) Equity capital:

Net assets

Millions of yen

78,829 million yen, FY 3/1778,180 million yen

2. Cash dividends
Annual dividends
End of first quarter

FY3/17
FY3/18End of second quarterEnd of third quarter

Term end

Full year

Yen

Yen

Yen

Yen

Yen

-

40.00

-60.00100.00

17.00

-

17.00

34.00

FY3/18 (Forecast)

Note: Changes in the latest forecasts released: None
The Company implemented a stock split of 3 shares for each 1 share of common stock with an effective date of April 1, 2017. Dividend per share for the fiscal
year ended March 31, 2017 is the actual dividend amount declared prior to this stock split.

-1-3. Forecast consolidated performance for the year ending March 31, 2018 (April 1, 2017 to March 31, 2018)(Percentage changes from previous period, and changes from the previous first half term for the same term)

Net salesFirst half (total sum)
AnnualOperating income

Net income attributableto owners of PIOLAXInc.

Ordinary incomeNet incomeper share

Millions of yen%

Millions of yen%

Millions of yen%

Millions of yen%

Yen

31,50063,200-0.0-1.7

4,700
9,500-4.1-8.5

5,100
10,200-4.0-10.8

3,500
6,900-7.9-13.8

97.72
192.66

Note: Changes in the latest forecasts released: None
* Notes(1) Changes in significant subsidiaries during the consolidated quarter term (changes in the specified subsidiaries resulting from thescope of consolidation): None
New XXX (Company name), Excluding XXX (Company name)(2) Application of special accounting process for the preparation of quarterly consolidated financial statements: Yes
Note: This refers to whether or not the application of special accounting processes pertaining to the preparation of quarterly
consolidated financial statements.
(3) Changes in accounting policies, accounting estimates and restatement of corrections
1) Changes in accounting policies due to amendments of accounting standards, etc.: None
2) Changes in accounting policies due to reasons stated in 1): None
3) Changes in accounting estimates: None
4) Restatement of corrections: None
(4) Number of shares issued (Common stock)1) Number of shares issued at end of period(Including treasury shares)
2) Number of treasury shares at the end of theperiod
3) Average number of shares for the period(Full first quarter)

FY3/18 1Q

39,254,100 shares

FY3/1739,254,100 shares

FY3/18 1Q

3,439,279 shares

FY3/173,439,242 shares

FY3/18 1Q

35,814,849 shares

FY3/17 1Q

35,815,026 shares(Note) The Company implemented a stock split of 3 shares for each 1 share of common stock with an effective date of April 1, 2017. The number ofshares issued (common stock) was calculated based on the assumption that the aforementioned stock split had been made at the beginning of theprevious consolidated fiscal year.

*The brief financial report for the quarter is excluded from the quarterly review.
*Explanation about the proper use of earnings forecasts and other special remarks (Notes regarding any forward-looking statements,etc.)
This document contains certain forward-looking statements pertaining to future developments in our company's business, etc. They arebased on the information we acquired and the currently available assumptions; thus, there are many factors that could cause future
results to differ from these statements. Please refer to page 2 of Appendix "(3) Explanation about future financial forecasts including
consolidated earnings forecasts," for the risks related to forward-looking statements including earnings forecasts and estimates ofbusiness developments.

-2-PIOLAX Inc. (5988) Brief Financial Report for the First Quarter Ending March 2018

2. Quarterly consolidated financial statement(1) Quarterly consolidated balance sheet(Millions of Yen)

Previous consolidated FY

Current first quarter(March 31, 2017)(June 30, 2017)

AssetsCurrent assets
Cash and cash equivalents

25,47425,920Notes and accounts receivable-trade14,172

13,674

Electronically recorded monetary claims-operating

1,610

1,679

Goods and Finished products

4,119

4,166

Material in progress

1,359

1,411

Raw materials and inventory goods

1,701

1,664

Other

2,240

2,397

Allowance for bad loans
Total current assets

-13

-21

50,66450,892

Fixed assets
Tangible fixed assets
Buildings and structures (net)

8,212

8,012

Machinery equipment and vehicles (net)

7,864

7,586

Tools, furniture and fixture (net)

2,272

2,244

Land

5,143

5,149

38

38

Construction in progress

1,020

1,195

Total tangible fixed assets

24,552

24,226

Lease asset (net)

Intangible fixed assets
Goodwill

2

1

Other

961

985

Total intangible fixed assets

963

986

Investment account securities

14,967

15,138

Other

1,521

1,558

Investments and other assets-0-0

16,488

16,696

Total fixed assets

42,003

41,910Total assets

92,66892,803

Allowance for bad loans
Total investments and other assets-3-PIOLAX Inc. (5988) Brief Financial Report for the First Quarter Ending March 2018

(Millions of Yen)

Previous consolidated FY

Current first quarter(March 31, 2017)(June 30, 2017)

Liabilities
Current liabilities
Accounts payable-trade

3,434

Short-term borrowings

423

3,178
407

Accrued income taxes

1,269

677

851

427

Other

3,724

4,299

Total current liabilities

9,702

8,990

Net defined benefit liability

149

161

Asset removal liabilities

1818

3,373

3,510

Allowance reserve

Long-term liabilities

Other

3,541

3,690

13,244

12,681

Common stock

2,960

2,960

Capital surplus

2,697

2,697

Retained earnings

73,18274,546

Total long-term liabilities
Total liabilities
Total equity
EquityTreasury stock-2,838-2,838

Total shareholders’ equity

76,00377,367

1,701

1,686

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

839

123

Remeasurements of defined benefit plans-363-348

Total accumulated other comprehensive income

2,177

1,462

1,243

1,293

Total equity

79,42480,122

Total liabilities and equity

92,66892,803

Minority interests in consolidated subsidiaries-4-PIOLAX Inc. (5988) Brief Financial Report for the First Quarter Ending March 2018

(2) Quarterly Consolidated Statements of (Comprehensive) Income(Quarterly Consolidated Statements of Income)[FY2018 first quarter](Millions of Yen)

Previous first quarter

Current first quarter(April 1, 2016 to June 30, 2016)(April 1, 2017 to June 30, 2017)

Net sales

15,60916,495

Cost of sales

10,736

11,343Gross profit

4,872

5,152

Selling, general and administrative expenses

2,413

2,527

Operating income

2,458

2,625

Interest income

1416

Dividend income

3031

Equity method investment gain

179

248

Other

76

40

Total non-operating income

301

337

Non-operating income

Non-operating expenses
Interest expense

63

Loss on valuation of derivatives-50

Foreign exchange loss

70

84

Loss on disposal of property and equipment

08

Cost of lease revenue

1

1

Other

2

9

Total non-operating expenses

82

157

Ordinary income

2,677

2,805

Quarterly net income before taxes and other adjustments

2,677

2,805

Corporate taxes
Net income before non-controlling interests

727

694

1,950

2,111

Net income attributable to non-controlling interests

2330Net income attributable to owners of PIOLAX Inc.

1,926

2,080-5-