FLASH REPORT
Feb. 8, 2017
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, General Manager, Finance Dept.
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 Japanese and English versions, 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 nine months ended December 31,2016( from April 1, 2016 to December 31, 2016 )(1) Consolidated operating results(Percentages indicate the change of the same period of the previous year)

Net sales
Nine months ended

Millions of yen

December 31,2016

261,009

December 31,2015

265,807

Nine months ended%

Operating profit

Profit before taxes

Profit for the period

Millions of yen

Millions of yen

Millions of yen%

13,416

(1.8)

－

－

Profit attributable toowners of the parent

Comprehensive
income for the period

Millions of yen

Millions of yen

December 31,2016

9,605

December 31,2015(1,822)%－－

13,079

636.6

1,821

%

12,288(4,755)

%

9,966

866.6

－

1,353

%

(1,431)

Basic earnings
per share

Diluted earnings
per share

Yen

Yen

－
－

－
－

－
－

37.60
(7.13)(2) Consolidated financial position

As ofDecember 31,2016
March 31,2016

Total assets

Total equity

Millions of yen

Millions of yen

375,611359,002

163,718
153,381

Ratio of equity
Equity attributable toEquity attributable toattributable toowners of the parent
owners of the parent owners of the parent
per share
to total assets
Millions of yen%
Yen

158,449
148,27842.2
41.3

620.24580.402. 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. Forecasts 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

353,000%(0.7)

Profit before taxes

Profitattributable toowners of the parent

Millions of yen%

Millions of yen%

Millions of yen

18,500327.6

17,900533.6

13,5001%－

Basic earnings
per share

Yen

52.84

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

As of December 31, 2016

AssetsCurrent assets:
Cash and cash equivalents

25,296

31,380Trade and other receivables

87,99991,112Inventories

48,29149,894954

985

Other current assets

3,793

2,977

Total current assets

166,333

176,348

158,609

159,505318

318

Intangible assets

4,424

5,291

Investments accounted for using the equity method

3,833

4,956

Other non-current financial assets

18,99922,769

622

586

5,865

5,838

192,669

199,263

359,002375,611

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 December 31, 2016

Liabilities and equity
Current liabilities:
Trade and other payables

66,211

71,774

Borrowings

50,49254,725

Income tax payables

1,413

1,278

Other current financial liabilities

18,416

15,594

Provisions

5,313

6,844

Other current liabilities

978

72

Total current liabilities

142,822150,287

Borrowings

38,34836,877

Liabilities for retirement benefit

13,893

13,922Other non-current financial liabilities

2,592

2,561

Provisions

1,994

2,021

777

152

Deferred tax liabilities

5,194

6,074

Total non-current liabilities

62,79961,606205,621

211,893

Share capital

27,64827,648

Capital surplus

29,414

29,414Retained earnings

86,393

94,265

Treasury shares

(579)

(584)

Other components of equity

5,402

7,706

148,278

158,449

5,103

5,269

Total equity

153,381

163,718

Total liabilities and equity

359,002375,611

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 nine months
ended December 31, 2015
（Apr. 1 through Dec. 31, 2015)

For the nine months
ended December 31, 2016
（Apr. 1 through Dec. 31, 2016)

Net sales

265,807

261,009

Cost of sales

213,650

206,069

Gross profit

52,15851,941

Selling, general and administrative expenses

41,372

39,794Equity in earnings (losses) of affiliates

(276)

751

Other income

1,768

1,347

Other expenses

10,457829

Operating Profit (loss)

1,821

13,416

Finance income

525

427

Finance costs

993

764

Profit (loss) before taxes

1,353

13,079

Income tax expenses

2,784

3,113

Profit (loss) for the period(1,431)

9,966(1,822)

9,605

Non-controlling interests

391

362

Profit (loss) for the period(1,431)9,966(7.13)

37.60

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 nine months
ended December 31, 2015
Apr. 1 through Dec. 31, 2015)（

For the nine months
ended December 31, 2016
Apr. 1 through Dec. 31, 2016)(1,431)

9,966

(213)

2,890

Remeasurements of defined benefit plans

(409)

(4)

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

(630)

(19)

(1,252)2,868(2,192)

32

120

(18)

－

(559)

(2,071)(546)

Total other comprehensive income(3,324)2,322

Comprehensive income for the period(4,755)

12,288(4,881)

11,855126433(4,755)

12,288Other comprehensive income:Items that will not be reclassified to profit or loss:
Net changes 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 net changes in the fair value ofcash flow hedges
Share of other comprehensive income of investments
accounted for using the equity method
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(1,822)－(1,822)－－－

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

－
－

－
－

(4)
0

875

－
－

(2,191)

(4)

(130)

－
－
－

－
－
－

(129)

(4,013)(4)

29,414

93,918(577)

0(3,066)

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 December 31, 2015

27,648

6

(130)

－

(Unit: Millions of yen)
Other components of equity

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

Balance at April 1, 2015

8,697

－

Exchanges
differenceson translationof foreign
operations

Effective
portion of
the net changes in
the fair value ofcash flow hedges

5,963

97

Comprehensive
income for theyear attributableto ownersof the parent

Total
other
componentsof equity

14,757

Noncontrollinginterests

169,307

Total
equity5,949

175,256.

Comprehensive income for the period:

－

－

－

－

－

(1,822)391(1,431)Other comprehensive income

(213)

(405)

(2,563)123(3,058)(3,058)(265)(3,324)

Total comprehensive income for the period

(213)

(405)

(2,563)123(3,058)(4,881)126(4,755)

－
－
－

－
－
－

－
－
－
－
－

－
－
－
－
－

－
－
－

－
－
－

－
－
－

－
－
－

(2,563)123(3,933)

3,400

220

10,824

161,227

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(1,279)405

Total contributions by and distributions to owners
in their capacity as owners(1,279)

405

－
－
－

－
－
－
－
－

(4)
0
(3,066)

(875)

－

(875)

(3,070)

－
－
－
－
－

(4)
0
(3,066)－(3,070)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 December 31, 2015

(1,493)
7,204

7

(130)

(573)

(703)

－

(269)

(269)

(130)

(842)

(971)

(8,080)(716)(8,796)

5,233

166,460

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

Capital surplus

Retained earnings
86,393

Treasury shares

27,64829,414

(579)

－
－
－

－
－
－

－
－
－
－
－
－

－
－
－
－
－
－

－
－
－

－
－
－

7,872

(5)

27,64829,414

94,265(584)

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

9,605

－
－
－

－

(5)

9,605

－

Transactions with owners:
Contributions by and distributions to owners
in their capacity as owners:
Acquisition of treasury shares
Dividends of surplus
Changes 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

(53)

－
－
－
－

(1,732)

(5)

－
－

－
－

(2,810)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 December 31, 2016

8

(Unit: Millions of yen)
Other components of equity

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

Balance at April 1, 2016

4,967

Exchangedifferenceson translationof foreign
operations－

Effective
portion of
the net changes in
the fair value ofcash flow hedges

275

160

Comprehensive
income for theyear attributableto ownersof the parent

Total
other
componentsof equity

Noncontrollinginterests

Total
equity5,402

148,278

5,103

153,381

9,966

Comprehensive income for the period:

－

－

－

－

－

9,605

362

Other comprehensive income

2,890

(21)

(592)

(26)

2,251

2,251

71

2,322

Total comprehensive income for the period

2,890

(21)

(592)

(26)

2,251

11,855433

12,288Changes due to business combination

－
－
－
－

－
－
－
－

32

21

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

32

21

－
－
－
－
－
－

－
－
－
－

Transfer to retained earnings

－
－
－
－
－
－

－
－

－
－
－
－

－
－

Profit 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(5)(2,810)
1,175
(45)

53

－

53

(1,685)

－
－

－
－

－
－

(592)

(26)

2,304

(318)

134

7,706

－
－
－
－
－
－

(5)
(2,810)
1,175
(45)

－

(1,685)

Changes in equity interest of subsidiaries:
Dividends of surplus
Total changes in equity interest of subsidiaries
Total transactions with owners
Balance at December 31, 2016

2,922
7,889

9

(267)

(267)

(267)

(267)

10,171

166

10,336

158,449

5,269

163,718

Consolidated Statements of Cash FlowsKYB Corporation and its Consolidated Subsidiaries（

For the nine months
ended December 31, 2015
Apr. 1 through Dec. 31, 2015)（(Unit: Millions of yen)
For the nine months
ended December 31, 2016
Apr. 1 through Dec. 31, 2016)

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

1,353

13,079Depreciation and amortization

12,935

11,795488

1Impairment losses
Increase (decrease) in assets and liabilities for retirement benefit

1,068

24

Increase (decrease) in provisions for product warranties(749)(1,448)Finance income

(525)

(427)

Finance costs

993

764

Equity in earnings (losses) of affiliates

276

(751)

(Increase) decrease in trade and other receivables

8,826(3,199)(Increase) decrease in inventories(3,472)(1,505)

Increase (decrease) in trade and other payables(3,489)5,609

Loss associated with the Anti-Trust law

7,986

Reversal of foreign currency transaction adjustment

(82)

－
－

Other

562

426

Subtotal

26,17024,368Interest received

88

58

Dividends received

771

865

Interest paid
Income taxes paid

(997)

(740)

(3,705)(3,462)

Payment of Loss associated with the Anti-Trust law(7,986)－－

Net cash from operating activities

14,38521,090

Payment into time deposits

(433)

(206)

Proceeds from withdrawal of time deposits

517

255

(15,804)(13,455)

57

17

Payment for purchases of other financial assets

(701)

(1)

Proceeds from sales of other financial assets

2,768

31

Other

(929)

(1,032)(14,524)(14,391)

Refund of income taxes

44

Cash flows from investing activities:

Payment for purchases of property, plant and equipment
Proceeds from sales of property, plant and equipment

Net cash flows from investing activities10（For the nine months
ended December 31, 2015
Apr. 1 through Dec. 31, 2015)（(Unit: Millions of yen)
For the nine months
ended December 31, 2016
Apr. 1 through Dec. 31, 2016)

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

8,519

8,147

Repayments of lease obligations

(421)

(332)

Proceeds from long-term borrowings

9,468

8,475

Repayment of long-term borrowings(12,061)(13,938)(4)(5)

Payments for purchase of treasury shares

0－(3,066)(2,810)

Dividends paid to non-controlling interests

(269)

(267)

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

(672)

－

Net cash flows from financing activities

1,495

(730)

Effect of changes in foreign exchange rates

(853)

110

Net increase (decrease) in cash and cash equivalents

502

6,079

30,51025,296－

5

31,012

31,380

Proceeds from sales of treasury shares
Dividends paid

Cash and cash equivalents at beginning of period
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 nine months ended December 31, 2015
(Unit: Millions of yen)
Reportable segment
Automotive
Hydrauliccomponents components

Subtotal

Others(Note 1)

Adjustment
Consolidated(Note 2)Total

Net sales:
181,183

66,195247,379

18,429265,807

－

129

2,242

2,371

1,207

3,578

(3,578)－181,31268,437249,749

19,636269,385(3,578)265,807

Segment profit

10,257(47)

10,210681(105)

10,786

(303)

27

(276)

－

10,891Equity in earnings (losses) of affiliates
Other income and expenses (net)(7,831)(686)(8,516)(172)

Operating profit (loss)

2,124

(706)

1,418

508

Outside customers
Intersegment sales and transfers
Total

265,807(8,689)－－(8,689)

1,926

(105)

1,821

(276)

(276)

Finance income and costs (net)(468)

Profit before taxes

1,353

Notes: 1. “Others” includes “Special-purpose Vehicles”, "Aircraft Components" and “System Products andElectronic Equipment” that are not included in the two of reportable segment.
2. ¥105 million of adjustment of segment losses is the elimination of intersegment transactions.

For the nine months ended December 31, 2016
(Unit: Millions of yen)
Reportable segment
Automotive
Hydrauliccomponents components

Subtotal

Others(Note 1)

Adjustment
Consolidated(Note 2)Total

Net sales:
Outside customers
Intersegment sales and transfers
Total
Segment profit

171,358

69,610240,967

20,042

261,009

－

453

1,762

2,216

1,263

3,479

(3,479)－171,811

71,372

243,183

21,305

264,488(3,479)261,009650

81

12,147

13,416

7,596

3,819

11,415

520

231

751

－

12,065Equity in earnings of affiliates
Other income and expenses (net)

963

(391)

572

(54)

518

－
－

9,079

3,659

12,738596

13,33581

Operating profit (loss)

261,009

751

751
518

Finance income and costs (net)(337)

Profit before taxes

13,079Notes: 1. “Others” includes “Special-purpose Vehicles”, "Aircraft Components" and “System Products andElectronic Equipment” that are not included in the two of reportable segment.
2. ¥81 million of adjustment of segment profit is 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 nine months of previous fiscal year, we disclose the information in which we take into accountthe change above.

12