FLASH REPORTAug 5, 2016
Company name (official) : KYB Corporation

URL http://www.kyb.co.jp/english/

Stock listing: 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 result for the three months ended June.30,2016( from April 1, 2016 to June 30, 2016 )(1) Consolidated operating results(Percentages indicate the change of the same period of the previous year)

Net sales
Three months ended

Millions of yen%

Operating profit

Profit before tax

Profit for the period

Millions of yen

Millions of yen

Millions of yen

%

%

%

June.30,2016

87,776

(3.4)

3,909

(22.9)

3,991(23.7)

3,826

18.3

June.30,2015

90,853

－

5,072

－

5,233

－

3,234

－

Three months ended

Profit attributable toowners of the parent

Comprehensive
income for the period

Millions of yen

Millions of yen%

Basic earnings
per share

Diluted earnings
per share

Yen

Yen

%

June.30,2016

3,709

19.3

(4,228)

－

14.52

－

June.30,2015

3,108

－

5,466

－

12.17

－

(2) Consolidated financial position

As ofJune.30,2016
March.31,2016

Total assets

Total equity

Millions of yen

Millions of yen

356,926
359,002148,509
153,381

Ratio of equity
Equity attributable toEquity attributable toatributable toowners of the parent
owners of the parent
owners of theper share
parent to total asset
Millions of yen%
Yen

143,920
148,27840.3
41.3

563.35580.402. 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-

Fiscal year-

Fiscal year (forecast)

5.00

-

6.00

11.00

5.00

-

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

Current fiscal year

Profitattributable toowners of the parent

Basic earnings
per share

Millions of yen%

Millions of yen%

Millions of yen%

Yen

174,000

(3.3)

6,300

－

6,000

－

4,400

－

17.22

346,000(2.6)

13,800218.9

12,900

356.6

9,200

－

36.01

Millions of yen
First half

Profit before tax%

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

As of June 30, 2016

AssetsCurrent assets:
Cash and cash equivalents

25,29632,024

Trade and other receivables

87,99988,140Inventories

48,29147,134954

766

Other current assets

3,793

3,367

Total current assets

166,333

171,431

158,609152,242318

318

Intangible assets

4,424

4,700

Investments accounted for using the equity method

3,833

3,436

Other non-current financial assets

18,99918,381

622

615

5,865

5,803

192,669

185,494

359,002356,926

Other current financial assets

Non-current assets:
Property, plant and equipment
Goodwill

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

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

As of June 30, 2016

Liabilities and equity
Current liabilities:
Trade and other payables

66,21166,809Borrowings

50,492

57,744

Income tax payables

1,413

1,014

Other current financial liabilities

18,416

18,241

Provisions

5,313

6,950

Other current liabilities

978

67

Total current liabilities

142,822150,825

Borrowings

38,34834,718

Liabilitiy for retirement benefits

13,893

13,962Other non-current financial liabilities

2,592

2,457

Provisions

1,994

2,020

777

411

Deferred tax liabilities

5,194

4,023

Total non-current liabilities

62,79957,592

205,621

208,416

Share capital

27,64827,648

Capital surplus

29,414

29,414Retained earnings

86,39389,707

Treasury shares

(579)

(579)

Other components of equity

5,402(2,269)148,278

143,920

5,103

4,589

Total equity

153,381

148,509

Total liabilities and equity

359,002356,926

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 interests

Consolidated Statements of Income
KYB Corporation and its Consolidated Subsidiaries(Unit: Millions of yen)
For the three months
ended June 30, 2015
（Apr. 1 through Jun. 30, 2015)

For the three months
ended June 30, 2016
（Apr. 1 through Jun. 30, 2016)

Net sales

90,85387,776

Cost of sales

72,103

69,845Gross profit

18,75017,931

Selling, general and administrative expenses

14,45913,105Equity in earnings of affiliates

69

399

Other income

922

441

Other expenses

210

1,757

Operating profit

5,072

3,909

Finance income

509

357

Finance costs

348

275

Profit before tax

5,233

3,991

Income tax expense

1,999

165

Profit for the period

3,234

3,826

3,108

3,709

126

117

3,234

3,826

12.17

14.52

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

Earnings per share
Basic earnings per share (in yen)Consolidated Statements of Comprehensive Income
KYB Corporation and its Consolidated Subsidiaries(Unit: Millions of yen)
For the three months
ended June 30, 2015
（Apr. 1 through Jun. 30, 2015)

For the three months
ended June 30, 2016
（Apr. 1 through Jun. 30, 2016)

3,234

3,826

1,050

(1,278)Remeasurements of defined benefit plans

(419)

11

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

(163)

(155)

Total

468

(1,422)

1,738(6,614)

26

(18)

1,764

(6,632)

Total other comprehensive income

2,232(8,054)Comprehensive income for the period

5,466(4,228)5,299(3,955)

167

(273)

5,466

(4,228)

Profit for the period

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

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

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

Treasury shares

27,64829,544

97,931(573)

Profit for the period

－

－

3,108

－

Other comprehensive income

－

－

－

－

Total comprehensive income for the prriod

－

－

3,108

－

Acquisition of treasury shares

－

－

－

(1)

Dividends of surplus－－(1,788)－Transfer to retained earnings

－

－

(407)

－

Total contributions by and distributions to owners
in their capacity as owners－－(2,195)(1)

Acquisition of non-controlling interests

－

(130)

－

－

Dividends of surplus

－

－

－

－

Total changes in equity interest of subsidiaries

－

(130)

－

－

Total transactions with owners

－

(130)

913

(1)

27,64829,414

98,844(574)

Comprehensive income for the period:

Transactions with owners:
Contributions by and distributions to owners
in their capacity as owners:

Changes in equity interest of subsidiaries:

Balance at June 30, 2015

(Unit: Millions of yen)
Other components of equity
Net change infinancial assets
Remeasurement
measured at fairsvalue throughof definedotherbenefit planscomprehensive income
Balance at April 1, 2015

8,697

－

Exchangedifferenceson translationof foreign
operations

5,963

Effective
portion of
the change inthe fair value ofcash flow hedges

97

Comprehensive
income for theyear attributableto ownersof the parent

Total
other
componentsof equity

Noncontrollinginterests

Total
equity14,757

169,307

5,949

175,256

Comprehensive income for the period:
－

－

－

－

－

3,108

126

3,234

Other comprehensive income

1,050

(407)

1,511

37

2,191

2,191

41

2,232

Total comprehensive income for the period

1,050

(407)

1,511

37

2,191

5,299

167

5,466

Acquisition of treasury shares

－

－

－

－

－

(1)

－

(1)

Dividends of surplus

－

－

－

－

－

(1,788)－(1,788)Transfer to retained earnings

－

407

－

－

407

－

－

－

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

－

407

－

－

407

(1,789)－(1,789)Acquisition of non-controlling interests

－

－

－

－

－

(130)

(573)

(703)

Dividends of surplus

－

－

－

－

－

－

(176)

(176)

Total changes in equity interest of subsidiaries

－

－

－

－

－

(130)

(749)

(878)

1,050

－

1,511

37

2,598

3,380

(582)

2,799

9,747

－

7,474

134

17,355

172,688

5,367

178,055

Profit for the period

Transactions with owners:
Contributions by and distributions to owners
in their capacity as owners:

Changes in equity interest of subsidiaries:

Total transactions with owners
Balance at June 30, 2015

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

Capital surplus

Retained earnings

Treasury shares

27,64829,41486,393(579)

Profit for the period

－

－

3,709

－

Other comprehensive income

－

－

－

－

Total comprehensive income for the period

－

－

3,709

－

Acquisition of treasury shares

－

－

－

(0)

Dividends of surplus－－(1,533)－

Change of scope of equity method

－

－

1,175

－

Changes due to business combination

－

－

(45)

－

Transfer to retained earnings

－

－

8

－

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

－

－

(395)

(0)

Dividends of surplus

－

－

－

－

Total changes in equity interest of subsidiaries

－

－

－

－

Total transactions with owners

－

－

3,314

(0)

27,64829,41489,707(579)

Comprehensive income for the period:

Transactions with owners:
Contributions by and distributions to owners
in their capacity as owners:

Changes in equity interest of subsidiaries:

Balance at June 30, 2016

(Unit: Millions of yen)
Other components of equity
Net change infinancial assets
Remeasurement
measured at fairsvalue throughof definedotherbenefit planscomprehensive income
Balance at April 1, 2016

4,967

－

Exchangedifferenceson translationof foreign
operations

275

Effective
portion of
the change inthe fair value ofcash flow hedges

160

Comprehensive
income for theyear attributableto ownersof the parent

Total
other
componentsof equity

5,402

148,278

Noncontrollinginterests

Total
equity5,103

153,381Comprehensive income for the period:
－

－

－

－

－

3,709

117

3,826

Other comprehensive income(1,278)8(6,370)(24)(7,664)(7,664)(390)(8,054)

Total comprehensive income for the period(1,278)8(6,370)(24)(7,664)(3,955)(273)(4,228)Acquisition of treasury shares

－

－

－

－

－

(0)

－

(0)

Dividends of surplus

－

－

－

－

－

(1,533)－(1,533)

Change of scope of equity method

－

－

－

－

－

1,175

－

1,175

Changes due to business combination

－

－

－

－

－

(45)

－

(45)

Transfer to retained earnings

－

(8)

－

－

(8)

－

－

－

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

－

(8)

－

－

(8)

(402)

－

(402)

Dividends of surplus

－

－

－

－

－

－

(241)

(241)

Total changes in equity interest of subsidiaries

－

－

－

－

－

－

(241)

(241)

(1,278)－(6,370)(24)(7,672)(4,358)(514)(4,872)

3,689－(6,095)136(2,269)143,920

4,589

148,509

Profit for the period

Transactions with owners:
Contributions by and distributions to owners
in their capacity as owners:

Changes in equity interest of subsidiaries:

Total transactions with owners
Balance at June 30, 2016

Consolidated Statements of Cash FlowsKYB Corporation and its Consolidated Subsidiaries

For the three months
ended June 30, 2015
（Apr. 1 through Jun. 30, 2015)(Unit: Millions of yen)
For the three months
ended June 30, 2016
（Apr. 1 through Jun. 30, 2016)

Profit before tax

5,233

3,991

Depreciation and amortization

4,246

3,905

Increase (decrease) in assets and liabilities for retirement benefits

174

66

Increase (decrease) in provision for product warranties

(70)

(222)

Finance income

(509)

(357)

Finance costs

348

275

Equity in earnings of affiliates

(69)

(399)

(Increase) decrease in trade and other receivables

4,783(4,014)(Increase) decrease in inventories(1,008)(1,557)

Increase (decrease) in trade and other payables(2,696)

3,687

Other

2,182

3,458

Subtotal

12,614

8,833

Interest received

55

24

Dividends received

510

599

Interest paid

(377)

(252)

Income taxes paid

(1,829)(572)

Net cash from operating activities

10,973

8,632

Payment into time deposits

(101)

(87)

Proceeds from withdrawal of time deposits

191

180

(6,590)(4,510)

56

23

(593)

(0)

－

32

(207)

(464)

(7,244)(4,827)

Cash flows from operating activities:

Cash flows from investing activities:

Payment for purchases of property, plant and equipment
Proceeds from sale of property, plant and equipment
Payment for purchases of other financial assets
Proceeds from sale of other financial assets
Other
Net cash flows from investing activities

For the three months
ended June 30, 2015
（Apr. 1 through Jun. 30, 2015)(Unit: Millions of yen)
For the three months
ended June 30, 2016
（Apr. 1 through Jun. 30, 2016)(2,599)

9,834

Repayments of lease obligations

(129)

(123)

Proceeds from long-term borrowings

2,149

1,201

Repayment of long-term borrowings(3,828)(4,687)(1)(0)(1,788)(1,533)

Dividends paid to non-controlling interests

(176)

(241)

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

(671)

－

(7,043)

4,451

550

(1,533)

Net increase (decrease) in cash and cash equivalents(2,764)

6,723

Cash and cash equivalents at beginning of period

30,51025,296－

5

27,74732,024

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

Payments for purchase of treasury shares
Dividends paid

Net cash flows from financing activities
Effects of changes in foreign exchange rates

Increase (decrease) in cash and cash equivalents resulting
from merger with unconsolidated subsidiaries
Cash and cash equivalents at end of period

Segment InformationKYB Corporation and its Consolidated Subsidiaries

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

Subtotal

Other(Note 1)

Total

Adjustment(Note 2)

Consolidated

Net sales:
61,317

23,64884,965

5,888

90,853－90,853

69

715

784

394

1,178

(1,178)－61,38524,36385,748

6,283

92,031(1,178)90,853

3,146

1,031

4,176

81

4,257

34

4,291

Equity in earnings of affiliates

62

6

69

－

69

－

69

Other income and expenses (net)

514

210

724

(13)

712

－

712

3,722

1,247

4,969

68

5,038

34

5,072

Outside customer
Intersegment and transfers
Total
Segment profits (losses)

Operating profit
Finance income and costs (net)162

Profit before tax

5,233

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. ¥34 million of adjustment of segment profits are the elimination of intersegment transactions.

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

Subtotal

Other(Note 1)

Total

Adjustment(Note 2)

Consolidated

Net sales:
59,536

22,11681,652

6,124

87,776－

87,776

8

112

120

314

434

(434)

－

59,54422,22881,772

6,439

88,211(434)

87,776

4,248

584

4,832

20

4,851

(25)

4,826

290

109

399

－

399

－

399

Other income and expenses (net)(1,385)54(1,332)15(1,316)－(1,316)

Operating profit

3,153

747

3,900

35

3,934

(25)

3,909

Outside customer
Intersegment and transfers
Total
Segment profits (losses)
Equity in earnings of affiliates

Finance income and costs (net)Profit before tax
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. ¥25 million of adjustment of segment losses are the elimination of intersegment transactions.

*With regard to the changes of reportable segment
Since this fiscal year, we reconsidered the business segment of "Aircraft components" which was included in "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 of previous fiscal year, we disclose the information which was taken into account the change above.

82
3,991