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 Year Ended March 31, 2018
(Based on Japanese GAAP)May 10, 2018
Company name:

YAMAZEN CORPORATION

Stock exchange listing: Tokyo
Stock code:
8051
Representative:
Inquiries:

URL

http://www.yamazen.co.jp/

President, CEO & COO
Manager, IR & PR Dept.

Yuji NAGAO
Yoshihiro OZAKI

Scheduled date of ordinary general meeting of shareholders:
Scheduled date to file Securities Report:

June 26, 2018
June 27, 2018

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

June 4, 2018
Yes

Holding of financial results meeting:

Yes

TEL

06-6534-3095(for analysts)(Amounts less than one million yen are rounded down)

1. Consolidated financial results for the year ended March 31, 2018 (from April 1, 2017 to March 31, 2018)(1) Consolidated operating results
Percentages indicate year-on-year changes
Profit attributable toNet sales
Operating profit
Ordinary profit
owners of parent
Millions of yen% Millions of yen% Millions of yen% Millions of yen%
Year ended March 31, 2018497,963
11.2
15,38317.3
15,152
17.2
10,205
19.8
Year ended March 31, 2017447,698(0.0)
13,113(1.1)
12,931
(4.2)
8,518
(7.3)
Note: Comprehensive income

Year ended March 31, 2018Year ended March 31, 2017

Earnings per share¥10,991 million [(1.2)%]¥11,127 million [140.6%]
Profit attributable toOrdinary profit/total Operating profit/net
owners ofassetssales
parent/equity
Yen%%%–
12.8
6.5
3.1–
11.9
6.0
2.9

Diluted earnings pershareYen
107.7990.82

Year ended March 31, 2018Year ended March 31, 2017

Reference: Share of profit of entities accounted for using equity method
Year ended March 31, 2018¥– million
Year ended March 31, 2017¥– million(2) Consolidated financial position
Total assets
As of March 31, 2018
As of March 31, 2017
Reference: Equity

Net assets

Millions of yen
246,923
219,598
As of March 31, 2018
As of March 31, 2017

Millions of yen
84,66575,712Equity ratio

Net assets per share%
34.2
34.4

Yen
891.87804.25¥84,368 million¥75,435 million(3) Consolidated cash flows

Year ended March 31, 2018Year ended March 31, 2017

Cash flows fromoperating activities
Millions of yen
8,001
8,248

Cash flows frominvesting activities
Millions of yen
2,223
(213)

1

Cash flows from
Cash and cash equivalents
financing activities
at end of period
Millions of yen
Millions of yen(5,948)60,675(5,324)56,359

2. Cash dividends
Annual dividends per share
1st quarter-end 2nd quarter-end 3rd quarter-end Fiscal year-endof dividends
Total cash
Dividend payout Ratio
to net assets
dividends (Total) ratio (Consolidated) (Consolidated)

TotalYen

YenYenYen

Yen

Millions of yen

%%

––

13.50
13.00

––

16.50
19.50

30.00
32.50

2,813
3,074

33.0
30.2

3.9
3.8

–

15.00

–

17.50

32.50

Year ended March 31, 2017
Year ended March 31, 2018Year ending March 31, 2019
(Forecast)

29.3

Note: Details of year-end dividends for the year ended March 31, 2018
Ordinary dividends 17 yen

Special dividends

2.5 yen

3. Forecast of consolidated financial results for the year ending March 31, 2019 (from April 1, 2018 to March 31, 2019)

Net sales
Millions of yen
Six months ending
September 30, 2018
Full year

Percentages indicate year-on-year changes
Profit attributable toOperating profit
Ordinary profit
Earnings per shareowners of parent% Millions of yen% Millions of yen% Millions of yen%Yen

253,000

5.8

6,700

0.8

6,700

2.2

4,600

3.3

48.63

515,000

3.4

15,5000.8

15,5002.3

10,5002.9

111.004. Notes(1) Changes in significant subsidiaries during the year ended March 31, 2018(changes in specified subsidiaries resulting in the change in scope of consolidation):No(2) 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:No
Changes in accounting policies due to other reasons:
Changes in accounting estimates:

NoNo

Restatement of prior period financial statements:

No(3) Number of issued shares (common shares)
Total number of issued shares at the end of the period (including treasury shares)
As of March 31, 2018

95,305,435 shares As of March 31, 2017

93,840,310 shares

Number of treasury shares at the end of the period
As of March 31, 2018707,545 shares As of March 31, 2017

44,546 shares

Average number of shares during the period
Year ended March 31, 2018

94,678,980 shares Year ended March 31, 20172

93,795,818 sharesReference: Summary of non-consolidated financial results
Non-consolidated financial results for the year ended March 31, 2018 (from April 1, 2017 to March 31, 2018)(1) Non-consolidated operating resultsPercentages indicate year-on-year changes
Net salesYear ended March 31, 2018Year ended March 31, 2017

Operating profit

Millions of yen
451,560
407,445

%
10.8
0.4

Millions of yen
12,065
10,555

Earnings per shareYen
109.2480.36

Year ended March 31, 2018Year ended March 31, 2017

Ordinary profit% Millions of yen
14.3
13,604(0.3)
10,928

Profit% Millions of yen
24.5
10,342(13.7)
7,537%
37.2(19.6)

Diluted earnings
per share
Yen––(2) Non-consolidated financial position
Total assets
As of March 31, 2018
As of March 31, 2017
Reference: Equity

Net assets

Millions of yen
218,113
195,952

Millions of yen
70,23361,504As of March 31, 2018¥70,233 million

As of March 31, 2017¥61,504 million

Equity ratio

Net assets per share%
32.2
31.4

Yen
742.44655.73* Financial results reports are exempt from audit conducted by certified public accountants or an audit corporation.
* Proper use of forecasts of financial results, and other special matters
The forward-looking statements, including earnings forecasts, contained in these materials are based on information currently available to theCompany and on certain assumptions deemed to be reasonable. These statements do not purport that the Company pledges to realize suchstatements. Actual performance and other results may differ materially due to various factors.

3Consolidated financial statements
Consolidated balance sheets
As of March 31, 2017
AssetsCurrent assets
Cash and deposits
Notes and accounts receivable - trade
Electronically recorded monetary claims operating
Securities
Merchandise and finished goods
Deferred tax assets
OtherAllowance for doubtful accounts
Total current assets
Non-current assets
Property, plant and equipment
Buildings and structures
Accumulated depreciation
Buildings and structures, netMachinery, equipment and vehicles
Accumulated depreciation
Machinery, equipment and vehicles, netTools, furniture and fixtures
Accumulated depreciation
Tools, furniture and fixtures, net
Land
Leased assets
Accumulated depreciation
Leased assets, net
Other
Total property, plant and equipment
Intangible assets
Investments and other assets
Investment securities
Claims provable in bankruptcy, claims
provable in rehabilitation and otherNet defined benefit asset
Deferred tax assets
OtherAllowance for doubtful accounts
Total investments and other assets
Total non-current assets
Total assets

4(Millions of yen)
As of March 31, 2018

45,866
98,73049,682
104,176

7,942

10,806

10,55022,864
1,151
3,849(569)
190,386

11,55432,386
1,342
6,052
(555)
215,447

5,309(2,914)
2,394
257
(169)
87
1,534
(1,076)457
3,284
5,338(525)4,813
211,0402,463

5,331(3,062)
2,269
278(179)
99
1,694(1,217)476
3,283
5,506(948)
4,557
43
10,7292,071

14,143

15,621

105

94

37183
1,426(188)
15,70829,212
219,598

1,039
171
1,926
(177)
18,67531,476
246,923

As of March 31, 2017
Liabilities
Current liabilities
Notes and accounts payable - trade
Electronically recorded obligations - operating
Lease obligations
Income taxes payable
Deferred tax liabilities
Provision for bonuses
Provision for voluntary recall of goods
Other
Total current liabilities
Non-current liabilities
Lease obligations
Deferred tax liabilities
Net defined benefit liability
Other
Total non-current liabilities
Total liabilities
Net assets
Shareholders' equityCapital stock
Capital surplus
Retained earnings
Treasury shares
Total shareholders' equity
Accumulated other comprehensive income
Valuation difference on available-for-salesecurities
Deferred gains or losses on hedges
Foreign currency translation adjustment
Remeasurements of defined benefit plans
Total accumulated other comprehensive income
Non-controlling interests
Total net assets
Total liabilities and net assets

5(Millions of yen)
As of March 31, 2018

101,556
19,472
263
2,430
8
2,593
28
8,402
134,755

88,55443,702442
3,168–
2,913
33
13,550152,3645,408
2,420
349
951
9,130
143,885

5,079
3,576
248
989
9,894
162,258

7,909
6,088
56,664(17)
70,645

7,909
7,561
64,092(751)
78,812

5,617

6,217

89
1,090
(2,007)4,789
277
75,712
219,598(86)
1,130(1,705)5,556
296
84,665
246,923

Consolidated statements of income and consolidated statements of comprehensive income
Consolidated statements of income(Millions of yen)
Fiscal year ended
Fiscal year ended
March 31, 2017
March 31, 2018
Net sales
447,698
497,963
Cost of sales
389,792
434,446Gross profit
57,906
63,516
Selling, general and administrative expenses
44,793
48,133Operating profit
13,113
15,383Non-operating income
Interest income
1,487
1,593
Dividend income
209
243
Other
173
129
Total non-operating income
1,870
1,966
Non-operating expenses
Interest expenses
1,983
2,091
Other68
105
Total non-operating expenses
2,052
2,197
Ordinary profit
12,931
15,152Extraordinary income
Gain on sales of non-current assets
72
4Gain on sales of investment securities
43
1,050
Total extraordinary income
116
1,054
Extraordinary losses
Loss on retirement of non-current assets
92
Loss on sales of non-current assets
00
Impairment loss
24
17
Loss on sales of golf club memberships
6–
Other1–
Total extraordinary losses
41
20
Profit before income taxes
13,005
16,186
Income taxes - current
4,023
5,300
Income taxes - deferred
430
645
Total income taxes
4,453
5,945
Profit8,552
10,241
Profit attributable to non-controlling interests
33
35
Profit attributable to owners of parent
8,518
10,205

6Consolidated statements of comprehensive income

ProfitOther comprehensive income
Valuation difference on available-for-sale securities
Deferred gains or losses on hedges
Foreign currency translation adjustment
Remeasurements of defined benefit plans, net of tax
Total other comprehensive income
Comprehensive income
Comprehensive income attributable toComprehensive income attributable to owners ofparent
Comprehensive income attributable tonon-controlling interests

7

Fiscal year ended
March 31, 2017
8,552

(Millions of yen)
Fiscal year ended
March 31, 201810,241

2,119
441
(241)
255
2,575
11,127

599
(175)
24
301
750
10,991

11,094

10,97233

19

Consolidated statements of changes in equity
Fiscal year ended March 31, 2017
(Millions of yen)
Shareholders' equity
Capital stock
Balance at beginning of current
periodCapital surplus

7,909

Retained earnings

6,088

Total shareholders'equityTreasury shares

51,107(17)

65,087

Changes of items during period
Dividends of surplus(1,688)(1,688)Interim dividends fromsurplus(1,266)(1,266)

Profit attributable to ownersof parent

8,518

8,518

Purchase of treasury shares(0)

Increase by merger

(0)

(0)

(6)

(6)

Increase by share exchanges–Net changes of items otherthan shareholders' equity
Total changes of items during
periodBalance at end of current period

–(0)

5,557

(0)

5,557

7,909

6,088

56,664(17)

70,645

Accumulated other comprehensive income
Valuation
Deferred gains
difference onor losses onavailable-for-sa
hedgesle securities
Balance at beginning of current
period

3,497

(351)

Foreigncurrencytranslation
adjustment

Total
accumulated
otherof defined benefit
comprehensive
plansincomeRemeasurements

1,303(2,263)

2,186

Non-controllinginterests

Total net assets

243

67,518Changes of items during period
Dividends of surplus(1,688)Interim dividends fromsurplus(1,266)

Profit attributable to ownersof parent

8,518

Purchase of treasury shares(0)

Increase by merger(6)

Increase by share exchanges–Net changes of items otherthan shareholders' equity

2,119

441

(213)

255

2,603

33

2,636

Total changes of items during
period

2,119

441

(213)

255

2,603

33

8,194

Balance at end of current period

5,617

89

1,090

(2,007)

4,789

277

75,7128Fiscal year ended March 31, 2018
(Millions of yen)
Shareholders' equity
Capital stock
Balance at beginning of current
periodCapital surplus

7,909

Retained earnings

6,088

Total shareholders'equityTreasury shares

56,664(17)

70,645

Changes of items during period
Dividends of surplus(1,547)(1,547)

Interim dividends fromsurplus(1,229)(1,229)Profit attributable to ownersof parent

10,205

10,205Purchase of treasury shares

(733)

(733)

Increase by merger–Increase by share exchanges

1,472

1,472

Net changes of items otherthan shareholders' equity
Total changes of items duringperiod
Balance at end of current period

–

1,472

7,428

(733)

8,166

7,909

7,561

64,092(751)

78,812

Accumulated other comprehensive income
Valuation
Deferred gains
difference onor losses onavailable-for-sa
hedgesle securities
Balance at beginning of current
period5,617

89Foreigncurrencytranslation
adjustment

Total
accumulated
otherof defined benefit
comprehensive
plansincomeRemeasurements

1,090(2,007)

4,789

Non-controllinginterests

Total net assets

277

75,712

Changes of items during period
Dividends of surplus(1,547)

Interim dividends fromsurplus(1,229)Profit attributable to ownersof parent

10,205Purchase of treasury shares(733)

Increase by merger–Increase by share exchanges

1,472

Net changes of items otherthan shareholders' equity

599

(175)

40

301

766

19785

Total changes of items duringperiod

599

(175)

40

301

766

19

8,952

Balance at end of current period

6,217

(86)

1,130

(1,705)

5,556

296

84,6659

Consolidated statements of cash flows(Millions of yen)
Fiscal year ended
March 31, 2018

Fiscal year ended
March 31, 2017
Cash flows from operating activities
Profit before income taxes
Depreciation
Retirement benefit expenses
Impairment loss
Increase (decrease) in allowance for doubtful
accounts
Increase (decrease) in other provision
Increase (decrease) in net defined benefit liability
Decrease (increase) in net defined benefit asset
Contribution to retirement benefit trust
Interest and dividend income
Interest expenses
Foreign exchange losses (gains)
Loss (gain) on sales of investment securities
Loss on retirement of property, plant and equipment
and intangible assets
Loss (gain) on sales of property, plant and equipment
and intangible assets
Decrease (increase) in notes and accounts receivable- tradeDecrease (increase) in inventories
Increase (decrease) in notes and accounts payable trade
Other, net
Subtotal
Income taxes paid
Net cash provided by (used in) operating activities
Cash flows from investing activities
Payments into time deposits
Proceeds from withdrawal of time deposits
Purchase of securities
Purchase of investment securities
Proceeds from sales and redemption of investment
securities
Payments of loans receivableCollection of loans receivable
Payments of other investmentsCollection of other investments
Purchase of property, plant and equipment andintangible assets
Proceeds from sales of property, plant and equipment
and intangible assets
Interest and dividend income received
Net cash provided by (used in) investing activities

10

13,005
1,580
455
24

16,1861,701575
17(15)(25)

3(1,093)(8)(1,700)(1,696)
1,983
(9)
(43)

307
(1,221)(20)–(1,836)2,091(24)(1,050)

9

2(71)

(3)

(5,323)(8,169)(1,270)(9,587)

4,957

11,184596
11,383(3,135)
8,248

2,810
12,939(4,938)8,001(7)
7–(1,151)(7)7(500)(125)

182

2,025(24)30(57)
96(81)
32(66)
21(1,282)

(924)

298

5

1,694(213)

1,837
2,223

(Millions of yen)
Fiscal year ended
March 31, 2018

Fiscal year ended
March 31, 2017
Cash flows from financing activities
Repayments of lease obligations
Cash dividends paid
Interest expenses paid
Payments from changes in ownership interests in
subsidiaries that do not result in change in scope ofconsolidation
Purchase of treasury shares
Net cash provided by (used in) financing activities
Effect of exchange rate change on cash and cash
equivalents
Net increase (decrease) in cash and cash equivalents
Cash and cash equivalents at beginning of period
Increase in cash and cash equivalents resulting frommerger with unconsolidated subsidiaries
Cash and cash equivalents at end of period11(305)(2,954)(1,983)(348)(2,777)(2,088)

(81)

–

(0)
(5,324)(733)(5,948)

(248)

39

2,461
53,325

4,316
56,359571–

56,35960,675