FLASH REPORT
Nov. 7, 2016
Company name (official) : KYB Corporation
Stock listing

URL http://www.kyb.co.jp/english/: Tokyo Stock Exchange (First Section)

Code number: 7242

Address of head office: World Trade Center Bldg., 4-1, Hamamatsu-cho 2-chome, Minato-ku, Tokyo 105-6111, Japan

Telephone: +81 3- 3435- 3541

For further information, please contact : Osamu Kunihara, Deputy General Manager, Finance & Accounting Div.
The following statements are an English-translation of the original Japanese-language document for your convenience.
In the case that there is any discrepancy between the Japanese and English versions, the Japanese version is assumed to be correct.
(All amounts are rounded to the nearest million yen, unless otherwise noted.)

1. Consolidated financial results for the six months ended September 30,2016( from April 1, 2016 to September 30, 2016 )(1) Consolidated operating results(Percentages indicate the change of the same period of the previous year)

Net sales
Six months ended

Millions of yen

September 30,2016

172,929

September 30,2015

179,852

Six months ended%

Operating profit

Profit before tax

Profit for the period

Millions of yen

Millions of yen

Millions of yen

%

6,873

(3.8)

－

(179)

－
－

Profit attributable toowners of the parent

Comprehensive
income for the period

Millions of yen

Millions of yen

September 30,2016

5,615

September 30,2015(3,127)%－－%(1,807)(6,445)

%

6,802
(556)

－
－

%

5,834
(2,875)

Basic earnings
per share

Diluted earnings
per share

Yen

Yen

－
－

－
－

－
－

21.98
(12.24)(2) Consolidated financial position

As of
September 30,2016
March 31,2016

Total assets

Total equity

Equity attributable toowners of the parent

Millions of yen

Millions of yen

Millions of yen

352,840
359,002150,930
153,381

146,259
148,278

Ratio of equity
Equity attributable toattributable toowners of the parent
owners of theper share
parent to total asset
%
Yen

41.5
41.3

572.50580.402. Cash dividends
Annual cash dividends per share
End of firstquarter

End of second
quarter

End of third
quarterYear-end

Total

Yen

Yen

Yen

Yen

Yen
Previous fiscal year

-

5.00

Current fiscal year

-

5.00

Current fiscal year (forecast)

-

6.00

11.00

-

6.00

11.00

3. Forecast for the current fiscal year (April 1, 2016 to March 31, 2017)(Percentages indicate the change of the same period of the previous year)

Operating profit

Net sales
Millions of yen
Current fiscal year

348,000%(2.1)

Profit before tax

Profitattributable toowners of the parent

Millions of yen%

Millions of yen%

Millions of yen

15,400255.9

14,800423.8

11,0001%－

Basic earnings
per share

Yen

43.06

Consolidated Statements of Financial Position
KYB Corporation and its Consolidated Subsidiaries(Unit: Millions of yen)
As of March 31, 2016

As of September 30, 2016

AssetsCurrent assets:
Cash and cash equivalents

25,29628,475Trade and other receivables

87,99986,571Inventories

48,291

46,080954

807

Other current assets

3,793

2,854

Total current assets

166,333

164,787

158,609

152,707318

318

Intangible assets

4,424

4,882

Investments accounted for using the equity method

3,833

3,446

Other non-current financial assets

18,99920,378

622

507

5,865

5,814

192,669

188,053

359,002352,840

Other current financial assets

Non-current assets:
Property, plant and equipment
Goodwill

Other non-current assets
Deferred tax assets
Total non-current assets
Total assets2

(Unit: Millions of yen)
As of March 31, 2016

As of September 30, 2016

Liabilities and equity
Current liabilities:
Trade and other payables

66,21164,658Borrowings

50,492

53,173

Income tax payables

1,413

1,462

Other current financial liabilities

18,416

18,787

Provisions

5,313

5,087

Other current liabilities

978

99

Total current liabilities

142,822

143,266

Borrowings

38,34835,279Liability for retirement benefits

13,893

13,994

Other non-current financial liabilities

2,592

2,442

Provisions

1,994

2,013

777

274

Deferred tax liabilities

5,194

4,641

Total non-current liabilities

62,79958,643

205,621

201,909

Share capital

27,64827,648

Capital surplus

29,414

29,414Retained earnings

86,39391,584

Treasury shares

(579)

(580)

Other components of equity

5,402(1,807)148,278

146,259

5,103

4,671

Total equity

153,381

150,930

Total liabilities and equity

359,002352,840

Non-current liabilities:

Other non-current liabilities

Total liabilities
EquityEquity attributable to owners of the parent:

Total equity attributable to owners of the parent
Non-controlling interests3Consolidated Statements of Income
KYB Corporation and its Consolidated Subsidiaries(Unit: Millions of yen)
For the six months
ended September 30, 2015
（Apr. 1 through Sep. 30, 2015)

For the six months
ended September 30, 2016
（Apr. 1 through Sep. 30, 2016)

Net sales

179,852

172,929

Cost of sales

144,021

138,351

Gross profit

35,831

34,578Selling, general and administrative expenses

27,746

26,728Equity in earnings (losses) of affiliates

(423)

546

Other income

1,069

843

Other expenses

8,910

2,367

Operating Profit (loss)

(179)

6,873

Finance income

358

445

Finance costs

735

515

Profit (loss) before tax

(556)

6,802

Income tax expense

2,319

968

Profit (loss) for the period(2,875)

5,834(3,127)

5,615

Non-controlling interests

251

219

Profit (loss) for the period(2,875)

5,834(12.24)

21.98

Profit attributable to:
Owners of the parent

Earnings per share
Basic earnings per share (in yen)4Consolidated Statements of Comprehensive Income
KYB Corporation and its Consolidated Subsidiaries(Unit: Millions of yen)（
Profit (loss) for the period

For the six months
ended September 30, 2015
Apr. 1 through Sep. 30, 2015)（

For the six months
ended September 30, 2016
Apr. 1 through Sep. 30, 2016)(2,875)

5,834(1,875)276

Remeasurements of defined benefit plans

(217)

10

Share of other comprehensive income of investments
accounted for using the equity method

(239)

(487)

(2,331)(201)(1,379)(7,380)140(61)(1,239)(7,441)

Total other comprehensive income(3,570)(7,641)

Comprehensive income for the period(6,445)(1,807)(6,389)(1,616)

(56)

(191)

(6,445)(1,807)

Other comprehensive income:Items that will not be reclassified to profit or loss:
Net change in financial assets measured at fair value throughother comprehensive income

Total
Items that may be reclassified to profit or loss:
Exchange differences on translation of foreign operations
Effective portion of the change in the fair value of cash
flow hedges
Total

Comprehensive income for the period attributable to:
Owners of the parent
Non-controlling interests
Comprehensive income for the period

5Consolidated Statements of Changes in Equity
KYB Corporation and its Consolidated Subsidiaries(Unit: Millions of yen)
Share capital
Balance at April 1, 2015

Capital surplus

Retained earnings

27,64829,544

－
－
－

－
－
－

－
－
－
－
－

－

97,931

Treasury shares(573)

Comprehensive income for the period:
Loss for the period
Other comprehensive income
Total comprehensive income for the period(3,127)－(3,127)－－－

Transactions with owners:
Contributions by and distributions to owners
in their capacity as owners:
Acquisition of treasury shares
Disposal of treasury shares
Dividends of surplus
Transfer to retained earnings
Total contributions by and distributions to owners
in their capacity as owners

0

－
－

－
－

(2)
0

(215)

－
－

(2,003)

(1)

(130)

－
－
－

－
－
－

(129)

(5,130)(1)

29,41492,802(575)

0(1,788)Changes in equity interest of subsidiaries:

－
－
－
－

Acquisition of non-controlling interests
Dividends of surplus
Total changes in equity interest of subsidiaries
Total transactions with owners
Balance at September 30, 2015

27,648

6

(130)

－

(Unit: Millions of yen)
Other components of equity

Net change infinancial assets
Remeasurements
measured at fairof definedvalue throughbenefit plansother comprehensive income
Balance at April 1, 2015

8,697

Exchangedifferenceson translationof foreign
operations

－

5,963

Effective
portion of
the net change inthe fair value ofcash flow hedges

97

Comprehensive
income for theyear attributableto ownersof the parent

Total
other
componentsof equity

14,757

169,307

Noncontrollinginterests

Total
equity5,949

175,256

Comprehensive income for the period:

－

－

－

－

－

(3,127)251(2,875)

Other comprehensive income(1,875)(215)(1,322)149(3,263)(3,263)(307)(3,570)Total comprehensive income for the period(1,875)(215)(1,322)149(3,263)(6,389)(56)(6,445)

－
－
－
－
－

－
－
－

－
－
－
－
－

－
－
－
－
－

－
－
－

－
－
－

－
－
－

－
－
－

(1,322)149(3,048)(8,309)(898)(9,207)

4,641

246

11,709160,998

5,051

166,050

Loss for the period

Transactions with owners:
Contributions by and distributions to owners
in their capacity as owners:
Acquisition of treasury shares
Disposal of treasury shares
Dividends of surplus
Transfer to retained earnings
Total contributions by and distributions to owners
in their capacity as owners

215
215

215

－

215

(1,790)

－
－
－
－
－

(130)

(573)

－

(269)

(269)

(130)

(842)

(971)

(2)
0
(1,788)(2)
0(1,788)(703)－(1,790)Changes in equity interest of subsidiaries:
Acquisition of non-controlling interests
Dividends of surplus
Total changes in equity interest of subsidiaries－－－

Total transactions with owners(1,875)

Balance at September 30, 2015

6,822

－
－
－
－
－

7

(Unit: Millions of yen)
Share capital
Balance at April 1, 2016

Capital surplus

Retained earnings
86,393

Treasury shares

27,64829,414

(579)

－
－
－

－
－
－

－
－
－
－
－
－

－
－
－
－
－
－

－
－
－

－
－
－

5,191

(1)

27,64829,414

91,584(580)

Comprehensive income for the period:
Profit for the period
Other comprehensive income
Total comprehensive income for the period

5,615

－
－
－

－

(1)

5,615

－

Transactions with owners:
Contributions by and distributions to owners
in their capacity as owners:
Acquisition of treasury shares
Dividends of surplus
Change of scope of equity method
Changes due to business combination
Transfer to retained earnings
Total contributions by and distributions to owners
in their capacity as owners

(23)

－
－
－
－

(425)

(1)

－
－

－
－

(1,533)
1,175(45)

Changes in equity interest of subsidiaries:
Dividends of surplus
Total changes in equity interest of subsidiaries
Total transactions with owners
Balance at September 30, 2016

8

(Unit: Millions of yen)
Other components of equity

Net change infinancial assets
Remeasurements
measured at fairof definedvalue throughbenefit plansother comprehensive income

Exchangedifferenceson translationof foreign
operations

Effective
portion of
the net change inthe fair value ofcash flow hedges

Comprehensive
income for theyear attributableto ownersof the parent

Total
other
componentsof equity

Noncontrollinginterests

Total
equity4,967－Profit for the period

－

－

－

－

－

5,615

219

5,834

Other comprehensive income

276

9(7,458)(60)(7,232)(7,232)(410)(7,641)

Total comprehensive income for the period276

9(7,458)(60)(7,232)(1,616)(191)(1,807)

Changes due to business combination

－
－
－
－

－
－
－
－

32

(9)

Total contributions by and distributions to owners
in their capacity as owners

32

(9)

－
－
－
－
－
－

－
－
－
－

Transfer to retained earnings

－
－
－
－
－
－

Total changes in equity interest of subsidiaries

－
－

－
－

Total transactions with owners

308

Balance at September 30, 2016

5,276

－
－
－
－

Balance at April 1, 2016

275

160

5,402

148,278

5,103

153,381Comprehensive income for the period:

Transactions with owners:
Contributions by and distributions to owners
in their capacity as owners:
Acquisition of treasury shares
Dividends of surplus
Change of scope of equity method(1)(1,533)
1,175
(45)

－
－
－
－
－
－

(1)
(1,533)
1,175
(45)

23

－

23

(403)

－

－
－

－
－

－
－

(241)

(241)

(7,458)(60)(7,209)(2,019)(432)(2,451)(7,183)101(1,807)

146,259

4,671

150,930(403)

Changes in equity interest of subsidiaries:
Dividends of surplus

9

(241)

(241)

Consolidated Statements of Cash FlowsKYB Corporation and its Consolidated Subsidiaries（

For the six months
ended September 30, 2015
Apr. 1 through Sep. 30, 2015)（(Unit: Millions of yen)
For the six months
ended September 30, 2016
Apr. 1 through Sep. 30, 2016)

Cash flows from operating activities:
Profit (loss) before tax

(556)

6,802

Depreciation and amortization

8,603

7,751

108

1

Impairment loss
Increase (decrease) in assets and liabilities for retirement benefits

802

164

Increase (decrease) in provision for product warranties

(784)

(659)

Finance income

(358)

(445)

Finance costs

735

515

Equity in earnings (losses) of affiliates

423

(546)

9,132

(2,702)

175

(876)

Increase (decrease) in trade and other payables(6,873)

1,890

Loss associated with the Anti-Trust law

7,801

Reversal of foreign currency transaction adjustment

(82)

－
－

Other

215

2,778

Subtotal

19,342

14,673

Interest received

78

43

Dividends received

551

619

(Increase) decrease in trade and other receivables(Increase) decrease in inventories

Interest paid
Income taxes paid
Refund of income taxes
Net cash from operating activities

(641)

(531)

(2,387)(1,316)44－

16,986

13,488

(353)

(137)

Cash flows from investing activities:
Payment into time deposits
Proceeds from withdrawal of time deposits
Payment for purchases of property, plant and equipment
Proceeds from sale of property, plant and equipment
Payment for purchases of other financial assets

201

189

(11,980)(8,897)

47

8

(698)

(1)

－

Proceeds from sale of other financial assets
Other
Net cash flows from investing activities

10

31

(483)

(419)

(13,268)(9,225)（For the six months
ended September 30, 2015
Apr. 1 through Sep. 30, 2015)（(Unit: Millions of yen)
For the six months
ended September 30, 2016
Apr. 1 through Sep. 30, 2016)

Cash flows from financing activities:
Net increase (decrease) in short-term borrowings

1,370

6,475

Repayments of lease obligations

(315)

(235)

Proceeds from long-term borrowings

2,650

5,716

Repayment of long-term borrowings(6,222)(9,644)(2)(1)

Payments for purchase of treasury shares

0－(1,788)(1,533)

Dividends paid to non-controlling interests

(269)

(241)

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

(675)

－

Net cash flows from financing activities(5,251)537

Effects of changes in foreign exchange rates(416)(1,626)

Net increase (decrease) in cash and cash equivalents(1,949)3,174

Cash and cash equivalents at beginning of period

30,51025,296－

5

28,56228,475

Proceeds from sales of treasury shares
Dividends paid

Increase (decrease) in cash and cash equivalents resulting
from merger with unconsolidated subsidiaries
Cash and cash equivalents at end of period11Segment InformationKYB Corporation and its Consolidated Subsidiaries

For the six months ended September 30, 2015
(Unit: Millions of yen)
Reportable segment
Automotive
Hydrauliccomponents components

Subtotal

Other(Note 1)

Adjustment
Consolidated(Note 2)Total

Net sales:
122,568

45,074

167,642

12,210179,852

－

123

1,449

1,571

899

2,470

(2,470)－122,691

46,522

169,213

13,109182,322(2,470)179,852

Segment profits

7,210

408

7,618

413

54

11

(423)

(7,240)(305)(7,545)(295)(7,841)

－
－

8,085

(434)

－

8,032

Equity in earnings (losses) of affiliates

(464)

114

(350)

118

(233)

54

Outside customer
Intersegment and transfers
Total

Other income and expenses (net)Operating profits (losses)(423)

179,852(423)(7,841)(179)

Finance income and costs (net)(377)

Profit before tax(556)

Notes: 1. “Other” includes “Special-purpose Vehicles”, "Aircraft Components" and “System Products andElectronic Equipment” that are not included in the two of reportable segment.
2. ¥54 million of adjustment of segment profits are the elimination of intersegment transactions.

For the six months ended September 30, 2016
(Unit: Millions of yen)
Reportable segment
Automotive
Hydrauliccomponents components

Subtotal

Other(Note 1)

Adjustment
Consolidated(Note 2)Total

Net sales:
Outside customer
Intersegment and transfers
Total
Segment profits

115,164

45,162

160,326

12,603

172,929－

172,929

312

1,143

1,455

884

2,338

(2,338)－

115,476

46,306

161,781

13,486

175,267(2,338)172,929

62

78

7,850

6,174

1,536

7,710

358

188

546

－

7,772

Equity in earnings of affiliates
Other income and expenses (net)

(908)

(494)

(1,403)(121)

Operating profits (losses)

5,624

1,230

6,853

(59)

(1,524)－－(1,524)

6,795

78

6,873

546

546

Finance income and costs (net)(70)

Profit before tax

6,802

Notes: 1. “Other” includes “Special-purpose Vehicles”, "Aircraft Components" and “System Products andElectronic Equipment” that are not included in the two of reportable segment.
2. ¥78 million of adjustment of segment profits are the elimination of intersegment transactions.

*With regard to the changes of reportable segment
Since the first quarter of this fiscal year, we reconsidered the business segment of "Aircraft components" which had been includedin "Hydraulic components" and isolated it as "Aircraft components division" for the reinforcement and expansion of the management foundation.
With regard to the "Aircraft components division", we considered the quantitative criteria of reportable segment, it has been includedin "Other" and disclosed.
With regard to the information for the six months of previous fiscal year, we disclose the information in which we take into account the change above.

12