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, 2017
(Based on Japanese GAAP)May 10, 2017
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 28, 2017
June 29, 2017

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

June 5, 2017
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, 2017 (from April 1, 2016 to March 31, 2017)(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, 2017447,698(0.0)
13,113(1.1)
12,931
(4.2)
8,518
(7.3)
Year ended March 31, 2016
447,774
2.7
13,2581.0
13,503
1.3
9,192
57.1
Note: Comprehensive income

Year ended March 31, 2017
Year ended March 31, 2016

Earnings per share¥11,127 million [140.6%]¥4,624 million [(58.9)%]
Profit attributable toOrdinary profit/total Operating profit/net
owners ofassetssales
parent/equity
Yen%%%–
11.9
6.0
2.9–
13.9
6.6
3.0

Diluted earnings pershareYen
90.82
98.01

Year ended March 31, 2017
Year ended March 31, 2016

Reference: Share of profit of entities accounted for using equity method
Year ended March 31, 2017¥– million
Year ended March 31, 2016¥– million(2) Consolidated financial position
Total assets
As of March 31, 2017
As of March 31, 2016
Reference: Equity

Net assets

Millions of yen
219,598
208,404

Millions of yen
75,712
67,518

As of March 31, 2017¥75,435 million

As of March 31, 2016

¥67,274 million

Equity ratio

Net assets per share%
34.4
32.3

Yen
804.25717.25(3) Consolidated cash flows

Year ended March 31, 2017
Year ended March 31, 2016

Cash flows fromoperating activities
Millions of yen
8,248
10,465

Cash flows frominvesting activities
Millions of yen
(213)
1,534

1

Cash flows from
Cash and cash equivalents
financing activities
at end of period
Millions of yen
Millions of yen(5,324)56,359(4,149)53,325

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

Yen

YenYenYenMillions of yen

%%

––

12.00
13.50

––

18.00
16.50

30.00
30.00

2,813
2,813

30.6
33.0

4.3
3.9

–

13.00

–

17.00

30.00

Year ended March 31, 2016
Year ended March 31, 2017
Year ending March 31, 2018
(Forecast)30.3

Note: Details of interim dividends for the six months ended September 30, 2016
Ordinary dividends 12 yen
Details of year-end dividends for the year ended March 31, 2017

Commemorative dividends 1.5 yen

Ordinary dividends 15 yen

Commemorative dividends 1.5 yen

3. Forecast of consolidated financial results for the year ending March 31, 2018 (from April 1, 2017 to March 31, 2018)

Net sales
Millions of yen
Six months ending
September 30, 2017
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

230,000

10.4

6,200

20.8

6,300

23.4

4,200

24.344.78

480,000

7.2

14,0006.8

14,300

10.6

9,300

9.2

99.15

Note:
For the average number of shares during the period as basis for calculating earnings per share, the total number of issued shares (excludingtreasury shares) as of March 31, 2017 is used.
4. Notes(1) Changes in significant subsidiaries during the year ended March 31, 2017(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:
Yes
Changes in accounting policies due to other reasons:
Changes in accounting estimates:

No
No

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, 2017

93,840,310 shares As of March 31, 2016

93,840,310 shares

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

44,546 shares As of March 31, 2016

44,463 shares

Average number of shares during the period
Year ended March 31, 2017

93,795,818 shares Year ended March 31, 2016

293,795,985 sharesReference: Summary of non-consolidated financial results
Non-consolidated financial results for the year ended March 31, 2017 (from April 1, 2016 to March 31, 2017)(1) Non-consolidated operating results
Percentages indicate year-on-year changes
Net salesYear ended March 31, 2017
Year ended March 31, 2016

Operating profit

Millions of yen
407,445
406,019%
0.4
3.9

Millions of yen
10,555
10,590Earnings per shareYen
80.36
99.94

Year ended March 31, 2017
Year ended March 31, 2016

Ordinary profit% Millions of yen(0.3)
10,928
10.5
12,661

Profit% Millions of yen(13.7)
7,537
9.0
9,374%(19.6)
62.3

Diluted earnings
per share
Yen––(2) Non-consolidated financial position
Total assets
As of March 31, 2017
As of March 31, 2016
Reference: Equity

Net assets

Millions of yen
195,952
183,861

Millions of yen
61,50454,363As of March 31, 2017¥61,504 million

As of March 31, 2016

¥54,363 million

Equity ratio

Net assets per share%31.4
29.6Yen655.73579.59* Financial results reports are not required to be audited.
* 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, 2016Assets
Current assets
Cash and deposits
Notes and accounts receivable - trade
Electronically recorded monetary claims operating
Securities
Merchandise and finished goods
Deferred tax assets
Other
Allowance for doubtful accounts
Total current assets
Non-current assets
Property, plant and equipment
Buildings and structures
Accumulated depreciation
Buildings and structures, net
Machinery, equipment and vehicles
Accumulated depreciation
Machinery, equipment and vehicles, net
Tools, 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
Other
Allowance for doubtful accounts
Total investments and other assets
Total non-current assets
Total assets

4(Millions of yen)
As of March 31, 201740,83396,38145,866
98,730

4,979

7,942

12,50021,701
1,354
5,320(579)
182,490

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

7,003(4,263)2,739
886(771)
114
1,534(1,089)445
3,308
5,346(232)5,113
011,722
2,285

5,309(2,914)
2,394
257
(169)
87
1,534
(1,076)
457
3,284
5,338
(525)
4,813
2
11,0402,463

10,29314,143

110

105

26
131
1,537
(194)
11,90525,913
208,404

37
183
1,426
(188)
15,70829,212
219,598

As of March 31, 2016
Liabilities
Current liabilities
Notes and accounts payable - trade
Electronically recorded obligations - operating
Lease obligations
Income taxes payable
Deferred tax liabilitiesProvision 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' equity
Capital 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, 2017

115,820
–
229
1,227
20
2,623
38
10,274130,234

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

5,554
899
3,055
1,141
10,650140,885

5,408
2,420
349
951
9,130
143,885

7,909
6,088
51,107(17)
65,087

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

3,497

5,617

(351)
1,303
(2,263)2,186
243
67,518208,404

89
1,090(2,007)4,789
277
75,712
219,598

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, 2016
March 31, 2017
Net sales
447,774
447,698
Cost of sales
390,231389,792
Gross profit
57,542
57,906
Selling, general and administrative expenses
44,284
44,793Operating profit
13,258
13,113Non-operating income
Interest income
1,520
1,487
Dividend income
224
209
Other211
173
Total non-operating income
1,955
1,870
Non-operating expenses
Interest expenses
1,626
1,983Other
83
68
Total non-operating expenses
1,710
2,052
Ordinary profit
13,503
12,931
Extraordinary income
Gain on sales of non-current assets
14872
Gain on sales of investment securities
1843
Total extraordinary income
167
116
Extraordinary losses
Loss on retirement of non-current assets
99
Loss on sales of non-current assets
00
Impairment loss–
24
Loss on sales of golf club memberships
06
Other
11
Total extraordinary losses
1141
Profit before income taxes
13,65913,005
Income taxes - current
3,497
4,023
Income taxes - deferred
885
430
Total income taxes
4,382
4,453
Profit9,277
8,552
Profit attributable to non-controlling interests
8433
Profit attributable to owners of parent
9,192
8,518

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 ofparentComprehensive income attributable tonon-controlling interests

7

Fiscal year ended
March 31, 2016
9,277

(Millions of yen)
Fiscal year ended
March 31, 2017
8,552

(1,348)(753)(1,802)(747)(4,652)
4,624

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

4,556

11,09468

33

Consolidated statements of changes in equity
Fiscal year ended March 31, 2016
(Millions of yen)
Shareholders' equity
Capital stock
Balance at beginning of current
periodCapital surplus

7,909

Retained earnings

6,081

Total shareholders'equity

Treasury shares

44,165(16)

58,139Changes of items during period
Dividends of surplus(1,125)(1,125)Interim dividends fromsurplus(1,125)(1,125)

Profit attributable to ownersof parent

9,192

9,192

Purchase of treasury shares

(0)

(0)

Increase by merger–

Change in ownership interestof parent due to transactions
with non-controlling interests

66

Net changes of items otherthan shareholders' equity
Total changes of items during
periodBalance at end of current period

–

6

6,941

(0)

6,948

7,909

6,088

51,107(17)

65,087

Accumulated other comprehensive income
Valuation
Deferred gainsdifference onor losses onavailable-for-sa
hedgesle securities
Balance at beginning of current
period4,846

401

Foreigncurrencytranslation
adjustment

Remeasurementsof defined
benefit plans

3,090(1,515)

Total
accumulated
othercomprehensive
income6,823

Non-controllinginterests

Total net assets

185

65,148Changes of items during period
Dividends of surplus(1,125)Interim dividends fromsurplus(1,125)

Profit attributable to ownersof parent

9,192

Purchase of treasury shares(0)

Increase by merger–

Change in ownership interestof parent due to transactionswith non-controlling interests

00(9)

(3)

Net changes of items otherthan shareholders' equity(1,348)(753)(1,786)(747)(4,636)68(4,568)

Total changes of items during
period(1,348)(753)(1,786)(747)(4,636)58

2,370

Balance at end of current period

3,497

(351)

1,303

(2,263)

2,186

243

67,5188

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'equity

Treasury 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)

Change in ownership interestof parent due to transactions
with non-controlling interests–

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 incomeValuation
Deferred gains
difference onor losses onavailable-for-sa
hedgesle securities
Balance at beginning of current
period

3,497

(351)

Foreigncurrencytranslation
adjustment

Remeasurementsof defined
benefit plans

1,303(2,263)

Total
accumulated
othercomprehensive
income2,186

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)

Change in ownership interestof parent due to transactions
with non-controlling interests–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

75,7129

Consolidated statements of cash flows(Millions of yen)
Fiscal year ended
March 31, 2017

Fiscal year ended
March 31, 2016
Cash flows from operating activities
Profit before income taxes
DepreciationRetirement 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 investment securities
Proceeds from sales 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

13,6591,208
472–

13,005
1,580
455
24(11)(15)(60)(1,052)8–(1,744)
1,626
(33)
(18)

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

9

9(148)

(71)

(191)

(5,323)(838)(1,270)

3,141

4,957

(895)
15,131(4,666)
10,465596
11,383(3,135)8,248(7)11(36)
24(15)
24(215)18(7)7(1,151)182(24)30(57)
96(703)(1,282)

685

298

1,747
1,534

1,694(213)(Millions of yen)
Fiscal year ended
March 31, 2017

Fiscal year ended
March 31, 2016
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
Other, net
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 period

11

(237)
(2,251)(1,657)(305)(2,954)(1,983)

(3)

(81)

(0)
(4,149)(0)(5,324)(1,323)

(248)

6,526
46,7992,461
53,325–571

53,32556,359