FLASH REPORT
February. 5, 2018
Company name (official) : KYB Corporation

URL https://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 : Hiroshi Yamada, 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, 2017
( from April 1, 2017 to December 31, 2017 )(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, 2017
December 31, 2016

Nine months ended%

288,301

10.5

261,009(1.8)

Operating profit

Profit before taxes

Profit for the period

Millions of yen

Millions of yen

Millions of yen%

16,68424.4

13,416

636.6

Profit attributable toowners of the parent

Comprehensive
income for the period

Millions of yen

Millions of yen

December 31, 2017

11,915

December 31, 2016

9,605

%

－

16,53926.5

12,427

13,079

866.6

9,966

24.7

Diluted earnings
per share

Yen

Yen

－

－

－
－

466.41

66.9

12,288%

Basic earnings
per share%

20,51224.1%

375.95*We carried out 1-for-10 reverse stock split on the effective date of October 1, 2017. Therefore basic earnings per share is calculated
assuming that the reverse stock was carried out at the beginning of the previous consolidated fiscal year.

(2) Consolidated financial position

As ofDecember 31, 2017
March 31, 2017

Total assets

Total equity

Equity attributable toowners of the parent

Millions of yen

Millions of yen

Millions of yen

412,155
381,326

186,514
169,771

180,527
164,299

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

43.8
43.1

7,067.14
6,431.51*We carried out 1-for-10 reverse stock split on the effective date of October 1, 2017. Therefore equity attributable to owners of
the parent per share is calculated assuming that the reverse stock was carried out at the beginning of the previous consolidated fiscal year.

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

End of second
quarter

End of third
quarterYear-end

－
－

Yen

Yen

－
－

Yen

Yen

5.00

7.00

12.00

65.00

－

Yen
Previous fiscal year
Current fiscal year

7.00

Current fiscal year (forecast)Total*We carried out 1-for-10 reverse stock split on the effective date of October 1, 2017.
As for cash dividends per share of fiscal year 2017, we disclose the amount after we take the reverse stock split into consideration.
And we disclose total annual cash dividends per share as "-". Without taking reverse stock split into consideration,
cash dividends per share at year-end will be 6.50 yen and total annual cash dividends per share will be 13.50 yen.

3. Forecasts for the current fiscal year (April 1, 2017 to March 31, 2018)(Percentages indicate the change of the same period of the previous year)

Net sales

Current fiscal year

Operating profit

Profit before taxes

Profit for the period

Profitattributable toowners of the parent

Basic earnings
per share

Millions of yen%

Millions of yen%

Millions of yen%

Millions of yen%

Millions of yen%

Yen

390,000

9.8

21,50011.7

21,00011.4

16,5009.4

15,8008.6

618.51*As for basic earnings per share of full year, we calculate it taking the reverse stock split into consideration.

1

Consolidated Statements of Financial Position
KYB Corporation and its Consolidated Subsidiaries(Unit: Millions of yen)
As of March 31, 2017

As of December 31, 2017

AssetsCurrent assets:
Cash and cash equivalents

33,98837,618Trade and other receivables

92,653

104,514

Inventories

49,64056,215

Other current financial assets

1,039

1,018

Other current assets

3,641

3,846

Total current assets

180,962203,212

158,990

162,961283

290

Intangible assets

5,850

6,494

Investments accounted for using the equity method

5,438

4,148

Other non-current financial assets

23,16928,365

500

602

6,132

6,082

200,364

208,943

381,326

412,155

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, 2017

As of December 31, 2017

Liabilities and equity
Current liabilities:
Trade and other payables

72,13780,847

Borrowings

50,98358,167

Income tax payables

1,536

1,757

Other current financial liabilities

18,274

18,333

Provisions

3,754

7,533

Other current liabilities

1,001

64

Total current liabilities

147,684

166,700

Borrowings

39,96233,532

Liabilities for retirement benefits

11,58912,047

Other non-current financial liabilities

2,405

2,381

Provisions

2,127

2,144

56

50

Deferred tax liabilities

7,732

8,785

Total non-current liabilities

63,871

58,940211,555

225,641

Share capital

27,64827,648

Capital surplus

29,414

29,414Retained earnings

100,995

109,399

Treasury shares

(587)

(592)

Other components of equity

6,829

14,658164,299

180,527

5,472

5,987

Total equity

169,771

186,514

Total liabilities and equity

381,326

412,155

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, 2016
Apr. 1 through Dec. 31, 2016)（

For the nine months
ended December 31, 2017
Apr. 1 through Dec. 31, 2017)

Net sales

261,009288,301

Cost of sales

209,069

229,831

Gross profit

51,941

58,469Selling, general and administrative expenses

39,79442,748751(35)

Other income

1,347

2,302

Other expenses

829

1,303

Operating profit

13,416

16,684

Finance income

427

611

Finance costs

764

756

Profit before taxes

13,07916,539

Income tax expenses

3,113

4,112

Profit for the period

9,966

12,427

9,605

11,915

362

513

9,966

12,427375.95466.41Equity in earnings (losses) of affiliates

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

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 for the period

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

For the nine months
ended December 31, 2017
Apr. 1 through Dec. 31, 2017)

9,966

12,427

2,890

3,773

Remeasurements of defined benefit plans

(4)

(5)

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

(19)

1

2,868

3,768

32

4,368

(18)

(67)

(559)

15

(546)

4,317

Total other comprehensive income

2,322

8,085

Comprehensive income for the period

12,28820,512

11,85519,740433

772

12,28820,512Other 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 of cash
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, 2016

Capital surplus

Retained earnings

27,64829,414

－
－
－

－
－
－

－
－
－
－
－
－

－
－
－
－
－
－

－
－
－

－
－
－

Balance at December 31, 2016

27,648

Balance at April 1, 201786,393

Treasury shares(579)

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)

－
－

－
－

(1,732)(5)

29,414

94,265(584)

27,64829,414

100,995

(587)

－
－
－

－
－
－

－
－
－
－
－
－

－
－
－
－
－
－

－
－
－

－
－
－

(3,510)(5)

27,64829,414

109,399(592)(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

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

11,915

－
－
－

－

(5)

11,915－

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

(3)

－
－
－
－

(3,510)

(5)

－
－

－
－

(3,576)－

69

Changes in equity interest of subsidiaries:
Dividends of surplus
Total changes in equity interest of subsidiaries
Total transactions with owners
Balance at December 31, 20176

(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

－
－
－
－
－
－

Total changes in equity interest of subsidiaries

－
－

－
－

Total transactions with owners

32

21

－
－
－

－
－
－

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
Changes of scope of equity method(5)(2,810)
1,175
(45)

53

－

53

(1,685)

－
－

－
－

53

－
－
－
－
－
－

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

－

(1,685)

Changes in equity interest of subsidiaries:
Dividends of surplus

(267)

(267)

(267)

(267)

(1,685)(267)(1,952)

Balance at December 31, 2016

7,889

－

(318)

134

7,706

158,449

5,269

163,718

Balance at April 1, 2017

8,274

－

(1,521)

77

6,829

164,299

5,472

169,771

12,427

Comprehensive income for the period:

－

－

－

－

－

11,915

513

Other comprehensive income

3,773

(2)

4,120

(65)

7,825

7,825

259

8,085

Total comprehensive income for the period

3,773

(2)

4,120

(65)

7,825

19,740772

20,512

－
－
－
－

－
－
－
－

－
－
－
－
－
－

－
－
－
－
－
－

－
－
－
－

－
－
－
2,598

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
Changes due to business combination
Transfer to retained earnings

02

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

02

Total changes in equity interest of subsidiaries

－
－

－
－

Total transactions with owners

0

2

(5)
(3,576)

－

69

3

－

3

(3,512)

－
－
－

－
－

－
－

3

12

14,658

－
－
－
－
－
－

(5)
(3,576)－69－(3,512)

Changes in equity interest of subsidiaries:
Dividends of surplus

Balance at December 31, 201712,047

－

7

(257)

(257)

(257)

(257)

(3,512)(257)(3,769)180,527

5,987

186,514

Consolidated Statements of Cash FlowsKYB Corporation and its Consolidated Subsidiaries

For the nine months
ended December 31, 2016
Apr. 1 through Dec. 31, 2016)（(Unit: Millions of yen)
For the nine months
ended December 31, 2017
Apr. 1 through Dec. 31, 2017)（

Cash flows from operating activities:
Profit before taxes

13,07916,539Depreciation and amortization

11,795

12,596

1

426

24

420

(1,448)545

Finance income

(427)

(611)

Finance costs

764

756

Equity in (earnings) losses of affiliates
Loss on sales of investments accounted for using the equity
method(Increase) decrease in trade and other receivables

(751)

－

35
367

(3,199)(9,024)(Increase) decrease in inventories(1,505)(4,443)

Increase (decrease) in trade and other payables

5,609

6,201

Other

426

(956)

Subtotal

24,36822,852

Interest received

58

96

Dividends received

865

1,349

Interest paid

(740)

(782)

Income taxes paid

(3,462)(4,038)Net cash from operating activities

21,09019,476

Payment into time deposits

(206)

(99)

Proceeds from withdrawal of time deposits

255

136

(13,455)(9,233)

Proceeds from sales of property, plant and equipment

17

77

Payment for purchases of other financial assets

(1)

(9)

Proceeds from sale of other financial assets

31

8Proceeds from sale of investments accounted for using theequity method

－

286

Other

(1,032)(1,564)

Net cash flows from investing activities(14,391)(10,397)

Impairment losses
Increase (decrease) in assets and liabilities for retirement
benefits
Increase (decrease) in provisions for product warranties

Cash flows from investing activities:

Payment for purchases of property, plant and equipment8（For the nine months
ended December 31, 2016
Apr. 1 through Dec. 31, 2016)（(Unit: Millions of yen)
For the nine months
ended December 31, 2017
Apr. 1 through Dec. 31, 2017)

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

8,147

2,743

Repayments of lease obligations

(332)

(417)

Proceeds from long-term borrowings

8,475

5,172

Repayment of long-term borrowings(13,938)(10,192)(5)(5)

Payments for purchase of treasury shares
Dividends paid

(2,810)(3,576)

Dividends paid to non-controlling interests

(267)

(257)

Net cash flows from financing activities(730)(6,532)

Effect of changes in foreign exchange rates

110

1,041

Net increase (decrease) in cash and cash equivalents

6,079

3,587

Cash and cash equivalents at beginning of period

25,29633,988542

31,38037,618

Increase (decrease) in cash and cash equivalents resulting
from merger with unconsolidated subsidiaries
Cash and cash equivalents at end of period9Segment InformationKYB Corporation and its Consolidated Subsidiaries

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

171,351

69,617240,967

20,042

261,009

－

453

1,762

2,216

236

2,452

(2,452)－

171,804

71,379243,183

20,278263,461(2,452)

261,009714

12,06581

12,147

7,508

3,843

11,351Equity in earnings of affiliates

520

231

751

－

Other income and expenses (net)

968

(390)

579

(61)

518

－
－

8,997

3,684

12,681

653

13,33581

Operating profit

751

Finance income and costs (net)261,009751
518
13,416(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.

For the nine months ended December 31, 2017
(Unit: Millions of yen)
Reportable segment
Automotive
Hydrauliccomponents components

Subtotal

Others(Note 1)

Adjustment
Consolidated(Note 2)Total

Net sales:
179,81189,706

269,517

18,784

288,301

－

568

1,013

1,581

290

1,870

(1,870)－180,379

90,719271,098

19,073

290,171(1,870)288,301

Segment profit

6,878

8,101

14,979

463

278

184

(35)

Other income and expenses (net)

1,437

(326)

1,111

(113)

999

－
－

15,721(220)－

15,443Equity in earnings (losses) of affiliates
Operating profit

8,096

7,960

16,056351

16,406278

Outside customers
Intersegment sales and transfers
Total

(35)

Finance income and costs (net)288,301(35)
999
16,684(145)

Profit before taxes

16,539Notes: 1. “Others” includes “Special-purpose Vehicles”, "Aircraft Components" and “System Products andElectronic Equipment” that are not included in the two of reportable segment.
2. ¥278 million of adjustment of segment profit is the elimination of intersegment transactions.

*With regard to the changes of reportable segment
In the first quarter of this fiscal year, due to the change in the management method of some domestic affiliated companies,
we reexamined the "Electronic Equipment" business, etc which had been included in "Hydraulic components" and "Others".
And we disclose part of it into "Automotive components" and "Hydraulic components".
Financial information for the previous fiscal year has been revised to reflect this change.

10