Feb. 8, 2017

Brief Financial Report for the Third Quarter Ending March 2017
[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: February 9, 2017
Date scheduled to start dividend payment:-Preparation of supplementary materials for quarterly financial results:
Information meeting for quarterly financial results to be held:

NoNo(Amounts are rounded to the nearest million yen.)

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

(Percentage changes from the same period of 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%

47,466
47,619

-0.3
7.5

7,702
6,959

10.7
9.6

8,357
7,727

8.2
10.3

6,049
5,494

10.1
12.0

FY3/17 3Q
FY3/16 3Q

Note:

Operating income

Comprehensive income

FY3/17 3Q

1,323 million yen (-70.6%), FY 3/16 3Q

Quarter net income per
share
FY3/17 3Q
FY3/16 3Q

4,500 million yen (-29.1%)

Quarter net income pershare-diluted

Yen

Yen

506.73460.25-(2) Consolidate financial position
Total assets

Net assets
Millions of yen%

85,37986,54474,24173,93385.6
84.0

FY3/17 3Q
FY3/16(Reference) Equity capital:

FY3/17 3Q

Equity capital ratio

Millions of yen

73,088 million yen, FY 3/1672,686 million yen

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

Term end

Full year

YenYenYenYen

Yen-

35.00
40.00

-

45.00

80.00

-

50.00

90.00

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

Note: Changes in the latest forecasts released: Yes

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 income
owners of PIOLAX Inc.
per share

Operating income

Ordinary income

Millions of yen%

Millions of yen%

Millions of yen%

Millions of yen%

Yen

63,000

-2.1

9,600

4.9

10,300

2.3

7,100

1.1

594.72

Note: Changes in the latest forecasts released: Yes-1-PIOLAX Inc. (5988) Brief Financial Report for the Third Quarter Ending March 2017

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

Previous consolidated FY

Current Third quarter(March 31, 2016)(December 31, 2016)

AssetsCurrent assets
Cash and cash equivalents

21,517

20,845

Notes and accounts receivable-trade13,055

13,400Electronically recorded monetary claims-operating

1,228

1,629

187-

Goods and Finished products

4,310

3,772

Material in progress

1,595

1,425

Raw materials and inventory goods

1,768

1,646

Other

2,124

2,387

Marketable securities

Allowance for bad loans
Total current assets

-42

-14

45,74645,091

Fixed assets
Tangible fixed assets
Buildings and structures (net)

7,872

7,135

Machinery equipment and vehicles (net)

7,663

6,562

Tools, furniture and fixture (net)

2,553

2,163

Land

5,179

5,094

6294

Construction in progress

1,1222,154

Total tangible fixed assets

24,45523,204

Lease asset (net)

Intangible fixed assets
Goodwill42

Other

904

868

Total intangible fixed assets

909

871

Investment account securities

14,197

14,748

Other

1,235

1,464

Investments and other assets

Allowance for bad loans
Total investments and other assets
Total fixed assets
Total assets-2--0-0

15,433

16,21240,79740,28886,54485,379

PIOLAX Inc. (5988) Brief Financial Report for the Third Quarter Ending March 2017

(Millions of Yen)

Previous consolidated FY

Current third quarter(March 31, 2016)(December 31, 2016)

Liabilities
Current liabilities
Accounts payable-trade

3,199

Short-term borrowings

881

2,905
378

Accrued income taxes

1,050

705

831

417

Other

3,468

3,482

Total current liabilities

9,430

7,889

Net defined benefit liability

168

175

Asset removal liabilities

18

18

2,993

3,055

Allowance reserve

Long-term liabilities

Other

3,180

3,248

12,611

11,138

Common stock

2,960

2,960

Capital surplus

2,697

2,697

Retained earnings

66,19371,228

Total long-term liabilities
Total liabilities
Total equity
EquityTreasury stock-2,837-2,837

Total shareholders’ equity

69,01474,048

Accumulated other comprehensive income
Unrealized gain on available-for-sale securities

1,615

1,825

Foreign currency translation adjustments

2,465-2,426

Remeasurements of defined benefit plans

-408

-360

Total accumulated other comprehensive income

3,672-960

Non-controlling interests

1,246

1,153

Total equity

73,93374,24186,54485,379Total liabilities and equity-3-PIOLAX Inc. (5988) Brief Financial Report for the Third Quarter Ending March 2017(2) Consolidated Statements of Income[FY2017 Third quarter](Millions of Yen)

Previous Third quarter

Current Third quarter(April 1, 2015 to December 31, 2015)(April 1, 2016 to December 31, 2016)

Net sales,

47,61947,466

Cost of sales

33,43332,548Gross profit

14,186

14,918Selling, general and administrative expenses

7,226

7,215

Operating income

6,959

7,702

Interest income

4248

Dividend income

4859

Equity method investment gain

570

600

Other201

125

Total non-operating income

863

833

Non-operating income

Non-operating expenses
Interest expense
Loss on valuation of derivatives
Loss on disposal of property and equipment
Cost of lease revenue
Other44

17-

114

21

15

75

21

24

95

178

7,727

8,357

Quarterly net income before taxes and other adjustments

7,727

8,357

Corporate taxes

2,180

2,241

Net income before non-controlling interests

5,546

6,115

Total non-operating expenses
Ordinary income

Net income attributable to non-controlling interests

5265

Net income attributable to owners of PIOLAX Inc.

5,494

6,049-4-