Feb. 13, 2014

Brief Financial Report for the Third Quarter Ending March 2014
[Based on Japanese Accounting Standards] (Consolidated)
Listed Company:
Code No.:PIOLAX Inc.

5988 (URL http://www.piolax.co.jp)

Representative: President Yukihiko Shimazu
Contact person in charge:

Accounting Group Leader

Management & Planning Dept.

Estimated submission date of quarterly report: February 12, 2014
Date scheduled to start dividend payment: Preparation of supplementary materials for quarterly financial results:
Information meeting for quarterly financial results to be held: NoShinichi Gohara(Phone 045-731-1211)

No(Amounts are rounded to the nearest million yen.)

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

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

Ordinary income

Quarter net income

Millions of yen%

Millions of yen%

Millions of yen%

Millions of yen%

40,37037,268

8.3
8.2

5,653
4,479

26.2
24.8

6,288
4,966

26.6
24.6

4,495
3,259

37.9
24.0

FY3/14 3Q
FY3/13 3Q

Note:

Operating incomeComprehensive income

FY3/14 3Q 6,247 million yen (86.8%), FY 3/13 3Q 3,344 million yen (78.1%)

Quarter net income
per share

Quarter net income
per share-dilutedYenYen

361.38262.06

FY3/14 3Q
FY3/13 3Q-(2) Consolidate financial position
Total assets

Net assets

Equity capital ratio

Millions of yen

Millions of yen%

71,457
64,10960,37954,34583.1
84.0

FY3/14 3Q
FY3/13(Reference) Equity capital: FY3/14 3Q 59,382 million yen, FY 3/1353,822 million yen

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

Yen
FY3/13
FY3/14End of third quarter

Yen-Term end

Yen

17.50
22.50

-

FY3/14 (Forecast)

Full year

YenYen

27.50

45.00

22.50

45.00

Note: Changes in the latest forecasts released: No

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

AnnualOperating income

Ordinary income

Net income
per share

Net 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: No-1-PIOLAX Inc. (5988) Brief Financial Report for the Third 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)(December 31, 2013)

AssetsCurrent assets

Allowance for bad loans

14,881
10,626
187
3,264
1,245
1,341
2,077
-38

14,705
13,492
187
3,367
1,513
1,515
2,211-44

Total current assets

33,58436,947

Construction in progress

4,398
5,438
1,369
4,722
80
1,497

4,609
6,778
1,792
4,827
70
2,150

Total tangible fixed assets

17,507

20,228Other0608

9749

Total intangible fixed assets

609

758

11,281
1,126-0

12,2601,261-0

Cash and cash equivalents
Notes and accounts receivable-tradeMarketable securities
Goods and Finished products
Material in progress
Raw materials and inventory goods
Other

Fixed 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
OtherAllowance for bad loans

12,40813,522

Total fixed assets

30,52434,510Total assets

64,10971,457

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

(Millions of Yen)

Previous consolidated FY

Current third quarter(March 31, 2013)(December 31, 2013)

Liabilities
Current liabilities

Other2,127
625
882
805
2,829

2,922638
1,151
448
3,271

Total current liabilities

7,271

8,432

Other113
18
2,360

181
18
2,446

Total long-term liabilities

2,492

2,646

9,763

11,078Treasury stock

2,960
2,696
49,325
-710

2,960
2,696
53,199-710

Total shareholders’ equity

54,27358,146863-1,314

1,069
165

-451

1,235

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

Long-term liabilities
Allowance reserve
Asset removal liabilities

Total liabilities
Total equity
EquityCommon stock
Capital surplus
Retained earningsAccumulated other comprehensive income
Unrealized gain on available-for-sale securities
Foreign currency translation adjustments
Total accumulated other comprehensive income

523

997

Total equity

54,34560,379Total liabilities and equity

64,10971,457

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

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

Previous third quarter

Current third quarter(April 1, 2012 to December 31, 2012)(April 1, 2013 to December 31, 2013)

Cost of sales

37,26827,38640,37028,817Gross profit

9,882

11,552

Selling, general and administrative expenses

5,402

5,899

Operating income

4,479

5,653

Other

1825445
96

25
30522
145

Total non-operating income

585

723

1833
1022
67213510714

Net sales

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

Non-operating expenses
Interest expense
Loss on valuation of derivative
Loss on disposal of property and equipment
Foreign exchange loss
Cost of lease revenue
Other
Total non-operating expenses
Ordinary income
Extraordinary income
Compensation received

9988

4,966

6,288-334-

334

Quarterly net income before taxes and other adjustments

4,966

6,622

Corporate taxes

1,661

2,096

Quarterly net income before minority interests

3,304

4,525

Total extraordinary income

Minority interests in income
Quarterly net income

-4-

4530

3,259

4,495