Nov. 7, 2013

Brief Financial Report for the Second Quarter Ending March 2014
[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
Accounting Group Leader

Management & Planning Dept.

Shinichi Gohara(Phone045-731-1211)

Estimated submission date of quarterly report: November 8, 2013
Date scheduled to start dividend payment:

December 2, 2013

Preparation of supplementary materials for quarterly financial results:
Information meeting for quarterly financial results to be held:

NoYes (for corporate investors and investment analysts)(Amounts are rounded to the nearest million yen.)

1. Consolidated performance for the first quarter ending March 31, 2014 (April 1, 2013 to September 30, 2013)(1) Consolidated business results (Total sum)

(Percentage changes from the same period the previous year.)Net sales

Ordinary income

Quarter net income

Millions of yen%

Millions of yen%

Millions of yen%

Millions of yen%

26,34025,243

4.3
15.8

3,420
3,151

8.5
72.4

3,857
3,501

10.2
68.1

2,792
2,279

22.5
64.7FY3/14 2Q
FY3/13 2Q

Note:

Operating income

Comprehensive income

FY3/14 2Q

4,684 million yen (120.3%), FY 3/13 2Q

Quarter net income per
share
FY3/14 2Q
FY3/13 2Q

2,126 million yen (66.4%)

Quarter net income pershare-diluted

Yen

Yen

224.47183.23-(2) Consolidate financial position
Total assets

Net assets
Millions of yen%

70,22164,10959,09654,34582.8
84.0

FY3/14 2Q
FY3/13(Reference) Equity capital:

FY3/14 2Q

Equity capital ratio

Millions of yen

58,151 million yen, FY 3/1353,822 million yen

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

Term end

Full year

YenYenYen

YenYen-

17.50
22.50

-

27.50

45.00

-

22.50

45.00

FY3/13
FY3/14
FY3/143 (Forecast)

Note: Changes in the latest forecasts released: Yes

3. Forecast consolidated performance for the year ending March 31, 2014 (April 1, 2013 to March 31, 2014)
Net sales
Annual(Percentage changes from the same period of the previous year)
Net income
Net income
per share

Operating income

Ordinary income

Millions of yen%

Millions of yen%

Millions of yen%

Millions of yen%

Yen

52,500

8.3

6,200

19.5

6,900

19.4

4,600

22.4

369.82

Note: Changes in the latest forecasts released: Yes-1-PIOLAX Inc. (5988) Brief Financial Report for the Second Quarter Ending March 2014

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

Previous consolidated FY

Current second quarter(March 31, 2013)(September 30, 2013)

AssetsCurrent assets
Cash and cash equivalents

14,881

15,933

Notes and accounts receivable-trade

10,626

12,507187

187

Goods and Finished products

3,264

3,086

Material in progress

1,245

1,393

Raw materials and inventory goods

1,341

1,396

Other

2,077

2,318

Marketable securities

Allowance for bad loans
Total current assets

-38

-43

33,58436,780

Fixed assets
Tangible fixed assets
Buildings and structures (net)

4,398

4,743

Machinery equipment and vehicles (net)

5,438

6,499

Tools, furniture and fixture (net)

1,369

1,736

Land

4,722

4,827

80

75

Construction in progress

1,497

1,643

Total tangible fixed assets

17,507

19,525

Lease asset (net)

Intangible fixed assets
Goodwill09

Other608

725

Total intangible fixed assets

609

734

Investment account securities

11,281

12,002

Other

1,126

1,177

Investments and other assets-0-0

12,40813,180Total fixed assets

30,52433,441

Total assets

64,10970,221

Allowance for bad loans
Total investments and other assets-2-PIOLAX Inc. (5988) Brief Financial Report for the Second Quarter Ending March 2014

(Millions of Yen)

Previous consolidated FY

Current second quarter(March 31, 2013)(September 30, 2013)

Liabilities
Current liabilities
Accounts payable-trade

2,127

Short-term borrowings

625

2,669
642

Accrued income taxes

882

1,263

Allowance for bonus

730

743

Allowance reserve

7473

Other

2,829

3,092

Total current liabilities

7,271

8,484

Allowance reserve

113

165

Asset removal liabilities

18

18

Other

2,360

2,456

Total long-term liabilities

2,492

2,641

9,763

11,125

Common stock

2,960

2,960

Capital surplus

2,696

2,696

Retained earnings

49,325

51,776Long-term liabilities

Total liabilities
Total equity
EquityTreasury stock
Total shareholders’ equity-710-710

54,27356,723863

1,005

Accumulated other comprehensive income
Unrealized gain on available-for-sale securities
Foreign currency translation adjustments
Total accumulated other comprehensive income-1,314422-451

1,427

523

944

Total equity

54,34559,096

Total liabilities and equity

64,10970,221

Minority interests in consolidated subsidiaries-3-PIOLAX Inc. (5988) Brief Financial Report for the Second Quarter Ending March 2014

(2) Consolidated Statements of Income[FY2014 second quarter](Millions of Yen)

Previous second quarter

Current second quarter(April 1, 2012 to September 30, 2012)(April 1, 2013 to September 30, 2013)

Net sales

25,243

26,340

Cost of sales

18,48319,009Gross profit

6,759

7,331

Selling, general and administrative expenses

3,607

3,910

Operating income

3,151

3,420

Interest income

1315

Dividend income

1315

Equity method investment gain

294309Non-operating income

Other83

122

Total non-operating income

404

463

Non-operating expenses
Interest expense

112

Loss on disposal of property and equipment

86

Foreign exchange loss

22-

Cost of lease revenue

45

Other

711

Total non-operating expenses
Ordinary income
Extraordinary income
Compensation received

5426

3,501

3,857-

334-

334

Quarterly net income before taxes and other adjustments

3,501

4,192

Corporate taxes

1,187

1,380

Quarterly net income before minority interests

2,314

2,811

Total extraordinary income

Minority interests in income
Quarterly net income

-4-

35

19

2,279

2,792