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 Three Months Ended June 30, 2018
(Based on Japanese GAAP)
July 31, 2018
Company name:DOSHISHA CORPORATION
Stock exchange listing: Tokyo
Stock code:
Representative:

Inquiries:

7483
URL http://www.doshisha.co.jp
President and Chief Operating Officer
Masayuki Nomura
Executive Officer
Director In Charge Of Financial &Takahiro Matsumoto

Accounting, Foreign Trade Operation,
Investigation, Business Management

Scheduled date to file Quarterly Securities Report:
Scheduled date to commence dividend payments:

August 10, 2018–

Preparation of supplementary material on quarterly financial results:
Holding of quarterly financial results meeting:

No
No

TEL

06-6121-5669(Amounts less than one million yen are rounded down)
1. Consolidated financial results for the three months ended June 30, 2018 (from April 1, 2018 to June 30, 2018)(1) Consolidated operating results (cumulative)
Percentages indicate year-on-year changes
Profit attributable to
Net sales
Operating profit
Ordinary profit
owners of parent
Millions of yen% Millions of yen% Millions of yen% Millions of yen%
Three months ended June 30, 2018
24,998
(1.3)
1,985
(9.5)
2,064
(7.4)
1,337 (12.1)
Three months ended June 30, 201725,331
(1.7)
2,194
12.2
2,230
17.0
1,521
21.1
Note: Comprehensive income

Three months ended June 30, 2018
Three months ended June 30, 2017

¥1,779 million [(8.4)%]¥1,943 million [–%]

Earnings per share

Diluted earnings per share

Yen
36.09
42.82

Three months ended June 30, 2018
Three months ended June 30, 2017

Yen
36.02
42.60

(2) Consolidated financial position
Total assets
Millions of yen
89,56886,985

As of June 30, 2018
As of March 31, 2018
Reference: Equity

Net assets

As of June 30, 2018:
As of March 31, 2018:

Equity ratio

Millions of yen
68,327
66,594

Net assets per share
%
75.1
75.5

Yen
1,804.47
1,778.84¥67,253 million¥65,687 million

2. Cash dividends
Annual dividends per share

Year ended March 31, 2018Year ending March 31, 2019

1st quarter-end

2nd quarter-end

3rd quarter-end

Fiscal year-end

Yen
–
–

Yen
25.00

Yen
–

Yen
25.00

Yen
50.00

25.00

–

25.00

50.00

Year ending March 31, 2019 (Forecast)
Note: Revision of cash dividend forecast most recently announced: No

1

Total

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

52,500

4.1

3,900

3.5

3,900

0.5

2,700

2.0

73.12

110,000

6.2

8,400

8.1

8,500

6.2

5,800

5.6

157.07

Note: Revision of consolidated financial results forecast most recently announced: No
4. Notes(1) Changes in significant subsidiaries during the three months ended June 30, 2018(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, 2018

37,375,636 shares As of March 31, 2018

37,375,636 shares

Number of treasury shares at the end of the period
As of June 30, 2018

105,408 shares As of March 31, 2018448,808 shares

Average number of shares during the period (cumulative from the beginning of the fiscal year)
Three months ended June 30, 2018

37,060,178 shares Three months ended June 30, 201735,544,403 shares* Quarterly financial results reports are exempt from quarterly review conducted by certified public accountants or an audit corporation.
* Proper use of forecasts of financial results, and other special matters
Caution concerning forward-looking statements
The forward-looking statements, including the earnings forecasts shown in this document, are based on information currently available to theCompany and on certain assumptions deemed to be reasonable by the Company. As such, they do not constitute guarantees by the Company offuture performance. Actual performance and other results may differ materially due to various factors.

2

Quarterly consolidated financial statements
Consolidated balance sheets(Millions of yen)
As of March 31, 2018

As of June 30, 2018

AssetsCurrent assets
Cash and deposits
Notes and accounts receivable - trade

35,986
15,82834,575
17,937

Electronically recorded monetary claims - operating
Merchandise and finished goods

3,226
8,368

2,850
10,846

Short-term loans receivable
Other

273
1,016

249
1,290

Allowance for doubtful accounts
Total current assets

(5)

(5)

64,69467,743

Non-current assets
Property, plant and equipment
Buildings and structures

12,896

12,775

Accumulated depreciation(4,145)(4,144)

Buildings and structures, net

8,751

8,630

Land

9,174

9,174

Other
Accumulated depreciation

2,585(1,596)

2,585(1,614)

Other, net
Total property, plant and equipment
Intangible assets
Investments and other assets
Investment securities
Long-term loans receivable
Other

989

971

18,914

18,775

127

127

1,776

1,711

36
1,449

3
1,219

Allowance for doubtful accounts

(13)

(13)

Total investments and other assets

3,249

2,921

22,291

21,82486,98589,568

6,259
1,534

8,313
582

34
26

15
16

Provision for loss on removal of fixed assets
Other

–
3,238

73
3,013

Total current liabilities

11,09312,014Non-current liabilities
Long-term loans payable

Total non-current assets
Total assets
Liabilities
Current liabilities
Accounts payable - trade
Income taxes payable
Provision for directors' bonuses
Provision for bonuses

8,000

8,000

Net defined benefit liability
Asset retirement obligations

582
58

587
9

Provision for environmental measures
Other

55
600

48
580

9,297

9,226

20,391

21,240Total non-current liabilities
Total liabilities

3

(Millions of yen)
As of March 31, 2018

As of June 30, 2018

Net assets
Shareholders' equity
Capital stock

4,993

4,993

Capital surplus
Retained earnings

6,226
55,4586,270
55,872

Treasury shares

(913)

(214)

65,763

66,921

Valuation difference on available-for-sale securities
Deferred gains or losses on hedges

380
(320)

328
125

Foreign currency translation adjustment
Remeasurements of defined benefit plans

(11)
(124)

(5)
(116)

Total accumulated other comprehensive income

(76)

331

94
812

6
1,067

66,594

68,327

86,98589,568

Total shareholders' equity
Accumulated other comprehensive income

Share acquisition rights
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)(Millions of yen)

Net sales
Cost of sales

Three months ended

Three months ended

June 30, 2017

June 30, 201825,331
18,212

24,99817,721Gross profit

7,118

7,276

Selling, general and administrative expenses

4,924

5,290

Operating profit

2,194

1,985

Interest income
Dividend income

0
12

1
56

Foreign exchange gains
Other

2
34

0
28

Total non-operating income

5086Non-operating expenses
Interest expenses

11Commission fee
Other

7
5

4
2

Non-operating income

Total non-operating expenses

14

7

2,230

2,064

Gain on reversal of share acquisition rights

3–

Total extraordinary income

3–

Provision for loss on removal of fixed assets
Impairment loss

–
–

73
33

Provision for environmental measures

3–

Ordinary profit
Extraordinary income

Extraordinary losses

Total extraordinary losses

3

107

2,230

1,957

Income taxes - current

632

536

Income taxes - deferred

22

54Profit before income taxes

Total income taxes
ProfitProfit attributable to non-controlling interests
Profit attributable to owners of parent

5

654

590

1,575

1,366

53

28

1,521

1,337

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

ProfitOther comprehensive income

Three months ended

Three months ended

June 30, 2017

June 30, 2018
1,575

1,366

Valuation difference on available-for-sale securities
Deferred gains or losses on hedges

133
195

(52)
446

Foreign currency translation adjustment
Remeasurements of defined benefit plans, net of tax

29
9

11
8

Total other comprehensive income

367

413

1,943

1,779

1,889

1,746

53

33

Comprehensive income
Comprehensive income attributable toComprehensive income attributable to owners of parent
Comprehensive income attributable to non-controllinginterests

6

Consolidated statements of cash flows(Millions of yen)

Cash flows from operating activities
Profit before income taxes

Three months ended

Three months ended

June 30, 2017

June 30, 2018
2,230

1,957

Depreciation
Increase (decrease) in provision for directors' bonuses

102
(45)

152
(19)

Increase (decrease) in provision for bonuses
Increase (decrease) in allowance for doubtful accounts

(26)
(5)

(9)
0

Increase (decrease) in net defined benefit liability
Increase (decrease) in provision for environmental measures

22
3

16
–

Increase (decrease) in provision for loss on removal of fixed
assets

–

73

–
(12)

33
(57)

Interest expenses
Decrease (increase) in notes and accounts receivable - trade1(1,142)

1(1,723)

Decrease (increase) in inventories
Increase (decrease) in notes and accounts payable - trade(2,036)
1,259(2,463)
2,045

Increase (decrease) in accrued consumption taxes
Decrease (increase) in other current assets

(215)
(81)

56
(77)

Increase (decrease) in other current liabilities
Other, net

(166)
5

39
(1)

Subtotal

(106)

22

12
(0)

57
(1)

Income taxes paid

(1,063)(1,426)

Net cash provided by (used in) operating activities(1,157)(1,348)Purchase of property, plant and equipment
Purchase of investment securities

(9)
(4)

(39)
(5)

Payments of loans receivableCollection of loans receivable

(33)
3

(9)
67

Other payments
Other proceeds

(12)
0

(9)
0

Net cash provided by (used in) investing activities

Impairment loss
Interest and dividend income

Interest and dividend income received
Interest expenses paid

Cash flows from investing activities

(54)

3

Cash flows from financing activities
Proceeds from exercise of share options

145

655

Repayments of lease obligations
Repayments of installment payables

(22)
(9)

(28)
(9)

Cash dividends paid
Proceeds from share issuance to non-controlling shareholders

(867)
–

(901)
220

Net cash provided by (used in) financing activities

(753)

(63)

Effect of exchange rate change on cash and cash equivalents

29

(2)

Net increase (decrease) in cash and cash equivalents(1,936)(1,411)

Cash and cash equivalents at beginning of period

32,20735,986

Cash and cash equivalents at end of period

30,271

34,5757