Translation
Notice: This document is an excerpt translation of the original Japanese document and is only for reference purposes. In the event of any
discrepancy between this translated document and the original Japanese document, the latter shall prevail.

Summary of Consolidated Financial Results
for the Six Months Ended June 30, 2019
(Based on Japanese GAAP)
August 7, 2019
Company name:
Optorun Co., Ltd.
Stock exchange listing: Tokyo
Stock code:
Representative:

6235
URL http://www.optorun.co.jp/
Representative Director and President
Ihei Hayashi

Inquiries:
CFO,Director and Senior Managing OfficerScheduled date to file Quarterly Securities Report:

Toshinori Takahashi
August 7, 2019

Scheduled date to commence dividend payments:
Preparation of supplementary material on quarterly financial results:–Yes

Holding of quarterly financial results meeting:

Yes

TEL

03-6635-9487(for institutional investors and analysts)(Amounts less than one million yen are rounded down)
1. Consolidated financial results for the six months ended June 30, 2019 (from January 1, 2019 to June 30, 2019)(1) Consolidated operating results (cumulative)
Net sales
Six months ended June 30, 2019
Six months ended June 30, 2018

Millions of yen
26,677
21,811

Percentages indicate year-on-year changes
Profit attributable toOperating profit
Ordinary profit
owners of parent% Millions of yen% Millions of yen% Millions of yen%
22.3
7,396
36.3
7,262
27.0
5,994
50.9
–
5,425
–
5,719
–
3,972
–

Earnings per share

Diluted earnings per shareYen
143.5296.43

Six months ended June 30, 2019
Six months ended June 30, 2018

Yen
136.4889.75(2) Consolidated financial position
Total assets
As of June 30, 2019
As of December 31, 2018

Net assets

Millions of yen
55,79855,644Equity ratio

Millions of yen
31,49928,062

%
56.5
50.4

2. Cash dividends
Annual dividends per share

Year ended December 31, 2018Year ending December 31, 2019

1st quarter-end

2nd quarter-end

3rd quarter-end

Fiscal year-end

Yen––

Yen
0.00
0.00

Yen–

Yen
55.00

Yen
55.00

–

60.00

60.00

Year ending December 31, 2019 (Forecast)Total

3. Forecast of consolidated financial results for the year ending December 31, 2019 (from January 1, 2019 to December 31, 2019)
Percentages indicate year-on-year changes
Profit attributable toNet sales
Operating profit
Ordinary profit
Earnings per shareowners of parent
Millions of yen% Millions of yen% Millions of yen% Millions of yen%
Yen
Full year
46,0002.8
11,3005.7
11,300
2.8
8,400
8.4
202.491

4. Notes(1) Changes in significant subsidiaries during the six months ended June 30, 2019(changes in specified subsidiaries resulting in the change in scope of consolidation):No(2) Application of special accounting methods for preparing quarterly consolidated financial statements:

No(3) Changes in accounting policies, changes in accounting estimates, and restatement of prior period financial statements
Changes in accounting policies due to revisions to accounting standards and other regulations:
Changes in accounting policies due to other reasons:

No
No

Changes in accounting estimates:
Restatement of prior period financial statements:

NoNo(4) Number of issued shares (common shares)
Total number of issued shares at the end of the period (including treasury shares)
As of June 30, 2019

44,358,000 shares As of December 31, 2018

44,358,000 shares

Number of treasury shares at the end of the period
As of June 30, 20192,314,031 shares As of December 31, 20182,874,031 shares

Average number of shares during the period (cumulative from the beginning of the fiscal year)
Six months ended June 30, 2019

41,770,875 shares Six months ended June 30, 2018

241,196,099 shares

Quarterly consolidated financial statements
Consolidated balance sheets(Thousands of yen)
As of December 31, 2018

As of June 30, 2019

AssetsCurrent assets
Cash and deposits
Notes and accounts receivable - trade

15,740,508
6,837,100

26,089,081
5,665,858

Work in process
Raw materials and supplies

20,148,171
4,339,278

13,442,175
2,338,217

Other
Allowance for doubtful accounts

1,497,420(420,067)

906,145(483,798)

Total current assets

48,142,411

47,957,680

Non-current assets
Property, plant and equipment

2,843,130

2,717,186

Intangible assets
Investments and other assets

65,55252,805Investment securities
Investments in capital

803,1932,224,446

697,718
3,475,927

Deferred tax assets
Other

1,273,191
292,177

626,070
270,647

Total investments and other assets

4,593,008

5,070,363

Total non-current assets

7,501,691

7,840,356

55,644,102

55,798,036

1,652,570

3,463,787

553,361
190,992

400,509
149,360

Lease obligations
Income taxes payable

12,213
1,143,493

22,2181,161,397

Advances received
Provision for bonuses

20,108,899
440,585

15,658,809
345,904

104,926
649,249–
562,248

Total assets
Liabilities
Current liabilities
Notes and accounts payable - trade
Short-term loans payable
Current portion of long-term loans payable

Provision for directors' bonusesProvision for product warranties
Other

1,066,249

922,852

Total current liabilities

25,922,541

22,687,087

206,864
26,948153,000
55,634

1,010,931
257,274

786,971–

138,453
18,389142,197473,559

Non-current liabilities
Long-term loans payable
Lease obligations
Deferred tax liabilities
Provision for directors' retirement benefits
Net defined benefit liability
Other
Total non-current liabilities
Total liabilities

3

1,658,861

1,611,363

27,581,403

24,298,450

(Thousands of yen)
As of December 31, 2018

As of June 30, 2019

Net assets
Shareholders' equity
Capital stock

400,000

400,000

Capital surplus
Retained earnings

9,193,505
18,980,845

9,396,463
22,694,128

Treasury shares(188,971)(152,150)

28,385,379

32,338,440

Valuation difference on available-for-sale securities
Foreign currency translation adjustment

4,539(338,123)

4,783(843,638)

Total accumulated other comprehensive income(333,584)(838,854)

10,903–28,062,699

31,499,586

55,644,102

55,798,036

Total shareholders' equity
Accumulated other comprehensive income

Non-controlling interests
Total net assets
Total liabilities and net assets

4Consolidated statements of income (cumulative) and consolidated statements of comprehensive income(cumulative)
Consolidated statements of income (cumulative)(Thousands of yen)Six months ended

Six months ended

June 30, 2018

June 30, 2019

Net sales
Cost of sales

21,811,220
12,825,643

26,677,423
15,712,410

Gross profit

8,985,577

10,965,013

Selling, general and administrative expenses

3,559,636

3,568,697

Operating profit

5,425,940

7,396,315

Interest income
Rent income

20,38255,31331,12754,370

Foreign exchange gains
Other

298,009
2,344

–
5,536

Total non-operating income

376,049

91,034

18,783

7,129–
63,623

61,915
155,640402

92

Non-operating income

Non-operating expenses
Interest expenses
Foreign exchange losses
Share of loss of entities accounted for using equity method
Other
Total non-operating expenses

82,809224,777

5,719,180

7,262,573–

355,100–

355,100

Profit before income taxes

5,719,180

7,617,673

Income taxes

1,747,159

1,623,144

Profit3,972,021

5,994,529

(699)

(371)

3,972,720

5,994,900

Ordinary profit
Extraordinary income
Gain on change in equity
Total extraordinary income

Loss attributable to non-controlling interests
Profit attributable to owners of parent5

Consolidated statements of comprehensive income (cumulative)(Thousands of yen)

ProfitOther comprehensive income
Valuation difference on available-for-sale securities
Deferred gains or losses on hedges
Foreign currency translation adjustment
Share of other comprehensive income of entities accounted
for using equity method
Total other comprehensive income

Six months ended

Six months ended

June 30, 2018

June 30, 20193,972,021

5,994,529(898)
86,078244–(470,380)(444,810)(19,070)(60,704)(404,271)(505,269)

Comprehensive income

3,567,749

5,489,259

Comprehensive income attributable toComprehensive income attributable to owners of parent

3,568,684

5,489,151

(934)

107

Comprehensive income attributable to non-controllinginterests

6

Consolidated statements of cash flows(Thousands of yen)

Cash flows from operating activities
Profit before income taxes

Six months ended

Six months ended

June 30, 2018

June 30, 2019

5,719,180

7,617,673Depreciation
Increase (decrease) in allowance for doubtful accounts

121,482
210,820132,077
63,730

Increase (decrease) in provision for bonuses
Increase (decrease) in provision for directors' bonuses

10,605(164,924)(94,392)(104,926)

Increase (decrease) in provision for product warranties
Increase (decrease) in net defined benefit liability

27,054
5,246(87,001)
3,743

Increase (decrease) in provision for directors' retirement
benefits

10,870(257,274)Interest income
Interest expenses(20,382)
18,783(31,127)
7,129

Foreign exchange losses (gains)Share of loss (profit) of entities accounted for using equity

166,985

364,401

63,623

155,640–(355,100)

Decrease (increase) in notes and accounts receivable - trade
Decrease (increase) in inventories(5,063,365)(5,327,545)

833,536
8,481,708

Increase (decrease) in notes and accounts payable - trade
Increase (decrease) in advances received(1,920,349)
5,517,055

2,091,021(4,410,822)

Decrease (increase) in consumption taxes refund receivable
Other, net

1,144,244(860,581)

355,380
589,446

Subtotal(341,197)

15,354,845

Interest income received
Interest expenses paid

20,382(20,144)

31,127(7,129)methodLoss (gain) on change in equity

Income taxes paid

(1,963,326)(1,146,553)

Net cash provided by (used in) operating activities(2,304,285)

14,232,291

Purchase of property, plant and equipment
Purchase of intangible assets(186,346)(6,889)(69,493)(3,838)

Payments for investments in capital
Payments of loans receivable(681,560)(51,928)(1,006,435)–

Net cash provided by (used in) investing activities(926,724)(1,079,766)

Cash flows from financing activities
Net increase (decrease) in short-term loans payable

Cash flows from investing activities(3,800,000)(156,150)

Repayments of long-term loans payable
Purchase of treasury shares(114,246)–(95,496)(77)

Repayments of lease obligations
Proceeds from exercise of share options(6,515)
139,500(12,303)
161,820(1,632,572)(2,275,831)–(11,902)

Net cash provided by (used in) financing activities(5,413,833)(2,389,941)

Effect of exchange rate change on cash and cash equivalents(226,233)(414,009)

Net increase (decrease) in cash and cash equivalents(8,871,077)

10,348,573

Cash and cash equivalents at beginning of period

19,893,800

15,740,508

Cash and cash equivalents at end of period

11,022,722

26,089,081

Cash dividends paid
Payments from changes in ownership interests in subsidiaries
that do not result in change in scope of consolidation

7