<Translation>

August 3, 2016

Consolidated Financial Results
for the First Quarter Ended June 30, 2016
<under Japanese GAAP>
Company Name:
Listing:
Securities code:
URL:
Representative:
Inquiries:

Yushin Precision Equipment Co., Ltd.
First Section of the Tokyo Stock Exchange6482
http://www.yushin.com
Mayumi Kotani, President and Representative Director
Masahito Fukui, Accounting Manager
Tel: +81-75-933-9168 (from overseas)
Scheduled date to submit quarterly report:
August 12, 2016
Scheduled date to commence dividend payments:
Preparation of supplementary materials on financial results: None
Holding of financial results briefing:
None(Amounts less than one million yen are omitted, unless otherwise noted)

1. Consolidated Business Results for the First Quarter Ended June 30, 2016
(from April 1, 2016 to June 30, 2016)(1) Consolidated operating results (Cumulative)(Percentages indicate year-on-year changes)
Net income
attributable toOperating income
Ordinary income
shareholders of theparent company

Net sales
Three months ended

Millions of yen% Millions of yen% Millions of yen% Millions of yen%

June 30, 2016

4,184 (14.9)

644

5.4

468 (28.9)

330 (27.8)

June 30, 2015

4,917

611

72.3

658

457

37.3

72.1

Note: Comprehensive income
Three months ended June 30, 2016: (70) million yen [(112.3) %]Three months ended June 30, 2015: 576 million yen [ 310.6 %]Net income per share
Three months ended
June 30, 2016
June 30, 2015

Diluted net income
per share

Yen

Yen

18.89
26.16

-

(2) Consolidated financial position
Total assets

Net assets

Equity ratio

Millions of yen

Millions of yen%

As of June 30, 2016

28,801

24,24983.7

As of March 31, 2016

29,40924,715

83.3

Reference: Equity capital (Net assets less non-controlling interests)
As of June 30, 2016: 24,099 million yen
As of March 31, 2016: 24,509 million yen

87.1

Yushin Precision Equipment Co., Ltd. (6482)

2. Cash Dividends
Annual dividends per share
1Q
FY2016FY2017FY2017 (Forecast)

2Q

3Q

Total

4Q

Yen

Yen

Yen

Yen

Yen

-

15.00

-

21.00

36.00

15.00

-

21.00

36.00

Note: Revisions to projected dividends most recently announced: None

3. Consolidated Earnings Forecasts for the FY2017 (from April 1, 2016 to March 31, 2017)

OperatingincomeNet salesFirst six months ending
September 30, 2016

FY2017(Percentages indicate year-on-year changes)
Net income
attributable toNet
Ordinary income
shareholders ofincomethe parent
per sharecompany

Millions ofyen%Millions ofyen%Millions of
yen

%

9,300

(6.3)

1,500

(0.2)

1,330

(7.9)

20,000

(5.4)

3,200

3.7

3,000

2.7

Millions of
yen

%

Yen

860 (15.2)

49.18

1,980

3.7

113.22

Note: Revisions to projected results most recently announced: Yes* Notes(1) Changes in significant subsidiaries during the period (Changes in specified subsidiaries accompanying
changes in scope of consolidation): None
(2) Adoption of the special accounting methods: Yes
Note: Please refer to “2. Other Information (Notes), (2) Adoption of special accounting methods for
preparation of quarterly financial statements” on page 2 of [Attached Material] for further information.
(3) Changes in accounting policies, changes in accounting estimates, and restatement
1) Changes in accounting policies due to revisions to accounting standards and other regulations:
2) Changes in accounting policies due to other reasons:3) Changes in accounting estimates:
4) Restatement:

Yes
None
None
None

(4) Number of issued shares (Common stock)1) Number of issued shares at the end of the period (including shares of treasury stock)
As of June 30, 2016
17,819,033 shares
As of March 31, 2016
17,819,033 shares
2) Number of shares of treasury stock at the end of the period
As of June 30, 2016
331,312 shares
As of March 31, 2016
331,208 shares
3) Average number of outstanding shares during the period
Three months ended June 30, 2016 17,487,793 shares
Three months ended June 30, 2015 17,488,105 shares* Information regarding the implementation of quarterly review proceduresThis quarterly financial information included in this summary is out of scope of quarterly review
procedure under the Financial Instruments and Exchange Act. Quarterly review procedure under the
Financial Instruments and Exchange Act has not been completed at the date of submission of this summary.

Yushin Precision Equipment Co., Ltd. (6482)* Cautionary statement with respect to forward-looking statements and other special remarks
The forecasts above are based on the information currently available. A number of factors could cause
actual results to differ materially from expectations. For more information about these assumptions andnotes regarding the use of earnings forecasts, please refer to “1. Qualitative Information on Quarterly
Consolidated Financial Performance, (3) Explanation on the forecast information including consolidated
earnings forecast and others” on page 2 of [Attached Material].

* Disclaimer
This English version is not an official translation of the original Japanese document. In cases where any
differences occur between the English version and the original Japanese version, the Japanese version shallprevail. Yushin Precision Equipment Co., Ltd. shall accept no responsibility or liability for damages orloss caused by any error, inaccuracy, misunderstanding or misspelling with regard to this translation. Thistranslation may be used only for reference purposes. Yushin Precision Equipment Co., Ltd. maintains theright to claim compensation from violators for any damage or loss it may suffer from the violation of these
conditions.

Yushin Precision Equipment Co., Ltd. (6482)[Attached Material]

INDEX

1. Qualitative Information on Quarterly Consolidated Financial Performance ······································ 2(1) Explanation on the business results ················································································· 2(2) Explanation on the financial condition·············································································· 2(3) Explanation on the forecast information including consolidated earnings forecast and others ············· 2
2. Other Information (Notes) ······························································································· 2(1) Changes in significant consolidated subsidiaries ·································································· 2(2) Adoption of special accounting methods for preparation of quarterly financial statements ················· 2(3) Changes in accounting principles, accounting estimates and retrospective restatement ····················· 3
3. Quarterly Consolidated Financial Statements ········································································· 4(1) Quarterly consolidated balance sheets ·············································································· 4(2) Quarterly consolidated statements of income and consolidated statements of comprehensive income ··· 6
Quarterly consolidated statements of income ······································································ 6
Quarterly consolidated statements of comprehensive income ··················································· 7(3) Notes related to quarterly consolidated financial statements ···················································· 8< Notes related to going concern assumption > ····································································· 8< Notes in the event of significant changes in shareholders’ equity > ··········································· 8< Segment information > ······························································································· 8
4. Supplemental Information ······························································································· 9(1) Orders, backlog and sales ····························································································· 9(2) Overseas sales ·········································································································· 91Yushin Precision Equipment Co., Ltd. (6482)

1. Qualitative Information on Quarterly Consolidated Financial Performance(1) Explanation on the business results
As for the world economy during the first quarter ended June 30, 2016, US economy had remained
strong but further monetary policies were at a standstill. The economy in China, emerging countries in Asiaand countries with natural resources seemed to be in stagnation and slowing down. Looking at Europe,
Brexit won a vote in a referendum in UK, and the result brought turmoil in financial market and increased
unclear prospects in a future European economy. Due to those situations, the world economy had been
unstable in the period.
In these circumstances, Yushin Group has strived to expand operation in a new business area, todevelop new products and to obtain new world-class customers. Then, solid bookings are expected in thetrend of the entire group. However, due to a decrease of sales in custom-ordered equipment, consolidated
net sales decreased by 14.9% year on year to 4,184 million yen. But, its profitability of the business was
improved and operating income increased by 5.4% year on year to 644 million yen. As the Company had torecognize foreign exchange losses due to a sharp appreciation of Japanese Yen after the referendum in UK,
ordinary income decreased by 28.9% year on year to 468 million yen and net income attributable to theparent company decreased by 27.8% year on year to 330 million yen.
(2) Explanation on the financial condition<Assets>
Total assets decreased by 608 million yen from the end of the previous fiscal year to 28,801 million yen.
This was mainly due to decrease of “Notes and accounts receivable - trade” by 911 million yen.
<Liabilities>
Total liabilities decreased by 142 million yen from the end of the previous fiscal year to 4,551 million
yen. This was mainly due to decrease of 330 million yen in “Income taxes payable”.
<Net assets>
Net assets decreased by 466 million yen from the end of the previous fiscal year to 24,249 million yen.
(3) Explanation on the forecast information including consolidated earnings forecast and others
After reviewing our business forecast based on the future industry trend, we have revised our forecast
for the fiscal year ending March 31, 2017, which was announced on May 10, 2016. For more detailed
information, please refer “Revisions to the Forecast for the Earnings” announced on August 3, 2016.

2. Other Information (Notes)(1) Changes in significant consolidated subsidiaries
None(2) Adoption of special accounting methods for preparation of quarterly financial statements
The effective tax rate on income before income tax for the consolidated fiscal year after the applicationof tax effect accounting is reasonably estimated, and this estimated rate is applied to net income for thequarterly period under review.
Income taxes–deferred are included in income taxes in the consolidated statements of income.

2

Yushin Precision Equipment Co., Ltd. (6482)(3) Changes in accounting principles, accounting estimates and retrospective restatement(Application of guidance on “Recoverability of Deferred Tax Assets”)
The company has applied “Guidance on Recoverability of Deferred Tax Assets” (Accounting Standards
Board of Japan [ASBJ] Guidance No.26, March 28, 2016; hereafter “Guidance on Recoverability”) fromthe beginning of the current fiscal year and revised a part of the accounting procedure for recoverability ofdeferred tax assets.
The Company has applied “Guidance on Recoverability” in accordance with the provisions ontransitional implementation indicated in Article 49(4) of “Guidance on Recoverability.” The differences
between the amount of Deferred tax assets and Deferred tax liabilities in applying Article 49(3)① through③ of “Guidance on Recoverability” at the beginning of the current fiscal year, and the amount of Deferred
tax and Deferred tax liabilities at the end of the previous fiscal year have been added to Retained earnings
and Accumulated other comprehensive income at the beginning of the current fiscal year.
As the result, at the beginning of the current fiscal year, Deferred tax assets (“Investments and otherassets”) increased by 20,367 thousand yen and Retained earnings increased by 20,367 thousand yen.

3

Yushin Precision Equipment Co., Ltd. (6482)

3. Quarterly Consolidated Financial Statements(1) Quarterly consolidated balance sheets(Thousands of yen)
As of March 31, 2016

As of June 30, 2016

Cash and deposits

5,341,166

5,559,928

Notes and accounts receivable - trade

6,026,195

5,114,780

Merchandise and finished goods

762,329

843,036

Work in process

625,413844,0082,286,051

2,165,875

Deferred tax assets

625,342579,275

Other

320,955

338,840

Allowance for doubtful accounts(30,483)(29,387)

15,956,972

15,416,358

Buildings and structures

1,855,686

1,769,468

Land

5,779,928

5,753,763

Other

4,801,374

4,817,332

12,436,989

12,340,563

369,502428,478

Investment securities

185,438

159,242

Net defined benefit asset

266,874

267,210

Other

193,840

189,363

(14)

(14)

646,137

615,801

Total non-current assets

13,452,630

13,384,843

Total assets

29,409,602

28,801,201<ASSETS>
Current assets

Raw materials and supplies

Total current assets
Non-current assets
Property, plant and equipment

Total property, plant and equipment
Intangible assets
Investments and other assets

Allowance for doubtful accounts
Total investments and other assets

4

Yushin Precision Equipment Co., Ltd. (6482)(Thousands of yen)
As of March 31, 2016

As of June 30, 2016

2,169,103

2,332,103

Accounts payable - other776,774

631,734

Income taxes payable

548,986

218,891

Advances received

278,867

341,315

Provision for bonuses

236,000

127,000

Provision for directors’ bonuses

29,9607,350

Provision for product warranties

148,441

125,124

Other

204,559

522,197

4,392,694

4,305,716

Provision for directors’ retirement benefits

66,78066,780Net defined benefit liability

44,04342,924

Deferred tax liabilities

123,350

75,360Other

67,06560,774

301,239

245,838

4,693,933

4,551,555

Capital stock

1,985,666

1,985,666

Capital surplus

2,023,903

2,023,903

Retained earnings

20,502,208

20,485,610

Treasury stock(352,731)(352,917)

24,159,047

24,142,263

Valuation difference on available-for-sale securities

33,92015,692Foreign currency translation adjustment

266,643(108,320)

Remeasurements of defined benefit plans

50,24550,230350,808(42,397)

205,812

149,780

Total net assets

24,715,668

24,249,646

Total liabilities and net assets

29,409,602

28,801,201<LIABILITIES>Current liabilities
Notes and accounts payable - trade

Total current liabilities
Non-current liabilities

Total non-current liabilities
Total liabilities<NET ASSETS>
Shareholders' equity

Total shareholders’ equity
Accumulated other comprehensive income

Total accumulated other comprehensive income
Non-controlling interests

5

Yushin Precision Equipment Co., Ltd. (6482)(2) Quarterly consolidated statements of income and consolidated statements of comprehensive
incomeQuarterly consolidated statements of income(Thousands of yen)Three months ended
June 30, 2016

Three months ended
June 30, 2015
Net sales

4,917,805

4,184,845

Cost of sales

2,924,793

2,313,541

Gross profit

1,993,011

1,871,304

Selling, general and administrative expenses

1,381,966

1,226,991

611,044644,312Interest income

4,432

1,806

Dividends income

2,383

2,346

Purchase discounts

3,571

2,927

Foreign exchange gains

15,652-

Subsidy income

12,208

11,672

Other

9,487

3,405

Total non-operating income

47,73622,157220

249

Foreign exchange losses-

198,075

Other

0

0

220

198,324

658,560

468,145-823

Gain on sales of investment securities

1,104

-

Total extraordinary income

1,104

823

Loss on sales and retirement of non-current assets

0252

Total extraordinary losses

0252

Income before income taxes

659,665468,715

Income taxes

181,814132,227

Net income

477,851

336,488

Net income attributable to non-controlling interests
Net income attributable to shareholders of the parent
company

20,4476,209

457,403330,279

Operating income
Non-operating income

Non-operating expenses
Sales discounts

Total non-operating expenses
Ordinary income
Extraordinary income
Gain on sales of non-current assets

Extraordinary loss

6

Yushin Precision Equipment Co., Ltd. (6482)

Quarterly consolidated statements of comprehensive income
Three months ended
June 30, 2015

(Thousands of yen)Three months ended
June 30, 2016

477,851

336,488

Valuation difference on available-for-sale securities

27,869(18,227)

Foreign currency translation adjustments

71,937(389,059)

Remeasurements of defined benefit plans, net of tax(1,111)(15)

Total other comprehensive income

98,694(407,301)

Comprehensive income

576,545(70,812)558,917(62,926)

17,628(7,886)

Net income
Other comprehensive income(Breakdown)Comprehensive income attributable to shareholders of theparent company
Comprehensive income attributable to non-controllinginterests

7

Yushin Precision Equipment Co., Ltd. (6482)(3) Notes related to consolidated financial statements< Notes related to going concern assumption >None< Notes in the event of significant changes in shareholders’ equity >None< Segment information >FY2016 1Q (from April 1, 2015 to June 30, 2015)
Information related to sales and profit or loss for each reportable segment(Thousands of yen)
Reportable segment
Total

Adjustment*1

Amounts shown onquarterly consolidated
statements of income
*2

Japan

U.S.A.

Asia

Europe2,534,399

769,299

1,397,752

216,353

4,917,805-

4,917,805

990,540

3,063

75,664410

1,069,679(1,069,679)-

3,524,940

772,363

1,473,416

216,763

5,987,484(1,069,679)

4,917,805

262,754

51,145288,50912,563614,972(3,927)611,044

Net sales
Sales to customers
Inter-segment sales
or transfers
Total
Segment profit*Notes 1:The (3,927) thousand yen adjustment to segment profit includes eliminations for inter-segment transactions of 3,841
thousand yen and inventory adjustments of (7,768) thousand yen.
*Notes 2: Segment profit is adjusted to be consistent with operating income shown on the quarterly consolidated statements ofincome.

FY2017 1Q (from April 1, 2016 to June 30, 2016)
Information related to sales and profit or loss for each reportable segment(Thousands of yen)
Reportable segment
Total

Adjustment*1

Amounts shown onquarterly consolidated
statements of income
*2

Japan

U.S.A.

Asia

Europe2,072,051

893,380

1,109,646

109,766

4,184,845-

4,184,845

970,616

3,674

51,757-

1,026,048(1,026,048)-

3,042,668

897,054

1,161,403

109,766

5,210,893(1,026,048)

4,184,845

254,430

140,058

120,565

12,037

527,091

117,221644,312Net sales
Sales to customers
Inter-segment sales
or transfers
Total
Segment profit*Notes 1:The 117,221 thousand yen adjustment to segment profit includes eliminations for inter-segment transactions of 37,543
thousand yen and inventory adjustments of 79,678 thousand yen.
*Notes 2: Segment profit is adjusted to be consistent with operating income shown on the quarterly consolidated statements ofincome.

8

Yushin Precision Equipment Co., Ltd. (6482)

4. Supplemental Information(1) Orders, backlog and sales
a. Orders
1) Order received
Products(Thousands of yen)
FY2016 1Q

Take-out robots

ChangeFY2017 1Q(%)

3,610,470

3,184,336

88.2

Custom-ordered equipment

748,769

1,007,214

134.5

Parts and maintenance service

746,595

752,837100.8

5,105,836

4,944,388

96.8

Total

(Thousands of yen)

2) Backlog of orders
Products

As of June 30, 2015

ChangeAs of June 30, 2016(%)

Take-out robots

2,591,702

2,014,271

77.7

Custom-ordered equipment

2,245,546

1,319,728

58.8

Parts and maintenance service

217,388

206,95095.2

5,054,637

3,540,950

70.1

Total

(Thousands of yen)b. Net sales
Products

FY2016 1Q

Take-out robots

ChangeFY2017 1Q(%)

3,523,785

3,091,216

87.7

Custom-ordered equipment

666,045352,660

52.9

Parts and maintenance service

727,973

740,968

101.8

4,917,805

4,184,845

85.1

Total

(2) Overseas Sales
FY2016 1Q (from April 1, 2015 to June 30, 2015)
North America
I

Overseas sales

755,867(Thousands of yen)
Asia

Europe2,535,385

Other areas

297,334

Total

101,450

II Consolidated net sales
III Ratio of overseas sales toconsolidated net sales (%)

4,917,805
15.4

51.6

6.0

2.1

North America
Overseas sales

864,216

Asia

Europe1,567,354

Other areas

166,959

67,375

II Consolidated net sales
III Ratio of overseas sales toconsolidated net sales (%)

75.0(Thousands of yen)

FY2017 1Q (from April 1, 2016 to June 30, 2016)

I3,690,037

Total
2,665,906
4,184,845

20.7

37.5

9

4.0

1.6

63.7