FLASH REPORT
October. 31, 2017
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 six months ended September 30, 2017
( from April 1, 2017 to September 30, 2017 )(1) Consolidated operating results(Percentages indicate the change of the same period of the previous year)

Net sales
Six months ended

Millions of yen

Operating profit%

Millions of yen%

September 30, 2017

188,892

9.2

11,048September 30, 2016

172,929

(3.8)

6,873

Six months ended

Millions of yen

Millions of yen

7,239

September 30, 2016

5,615

28.9

－

%

13,415(1,807)

Millions of yen

Millions of yen%

10,902－Comprehensive
income for the period

September 30, 2017

Profit for the period

60.8

Profit attributable toowners of the parent%

Profit before taxes
60.3

－

6,802

7,548

%

29.4

5,834

Basic earnings
per share

Diluted earnings
per share

Yen

Yen

－
－

－

－
－

283.39219.80*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 of
September 30, 2017
March 31, 2017

Total assets

Total equity

Equity attributable toowners of the parent

Millions of yen

Millions of yen

Millions of yen

403,650
381,326

181,208
169,771

175,532
164,299

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

43.5
43.1

6,871.35
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
quarter

Yen

Yen

－
－

Yen
Previous fiscal year
Current fiscal year

－
－

5.00
7.00

Current fiscal year (forecast)Year-end

Total

Yen

Yen

7.00

12.00

65.00

－

*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

388,000

9.2

23,00019.5

22,80020.9

16,4008.8

15,7007.9

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

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

As of September 30, 2017

AssetsCurrent assets:
Cash and cash equivalents

33,98837,612

Trade and other receivables

92,653

101,465

Inventories

49,64052,272Other current financial assets

1,039

942

Other current assets

3,641

3,696

Total current assets

180,962

195,988

158,990

162,250283

282

Intangible assets

5,850

6,330

Investments accounted for using the equity method

5,438

5,237

Other non-current financial assets

23,16926,862

500

545

6,132

6,156

200,364

207,661

381,326

403,650

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, 2017

As of September 30, 2017

Liabilities and equity
Current liabilities:
Trade and other payables

72,13776,949Borrowings

50,98354,612

Income tax payables

1,536

1,979

Other current financial liabilities

18,274

21,527

Provisions

3,754

4,974

Other current liabilities

1,001

45

Total current liabilities

147,684

160,086

Borrowings

39,962

36,634

Liabilities for retirement benefits

11,58911,934

Other non-current financial liabilities

2,405

2,382

Provisions

2,127

2,163

56

31

Deferred tax liabilities

7,732

9,212

Total non-current liabilities

63,871

62,356

211,555

222,442

Share capital

27,64827,648

Capital surplus

29,414

29,414Retained earnings

100,995

106,514

Treasury shares

(587)

(589)

Other components of equity

6,829

12,545

164,299

175,532

5,472

5,676

Total equity

169,771

181,208

Total liabilities and equity

381,326

403,650

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

For the six months
ended September 30, 2017
Apr. 1 through Sep. 30, 2017)

Net sales

172,929

188,892

Cost of sales

138,351

150,676

Gross profit

34,57838,216

Selling, general and administrative expenses

26,72828,074Equity in earnings of affiliates

546

81

Other income

843

1,652

Other expenses

2,367

827

Operating profit

6,873

11,048Finance income

445

377

Finance costs

515

523

Profit before taxes

6,802

10,902

Income tax expenses

968

3,354

Profit for the period

5,834

7,548

5,615

7,239

219

308

5,834

7,548

219.80283.39Profit 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)（
Profit for the period

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

For the six months
ended September 30, 2017
Apr. 1 through Sep. 30, 2017)

5,834

7,548

276

2,725

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

10

(1)

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

Remeasurements of defined benefit plans

(487)

1

Total

(201)

2,725

(7,380)

3,290

(61)

(52)

－

(96)

(7,441)

3,142

Total other comprehensive income(7,641)

5,867

Comprehensive income for the period(1,807)

13,415(1,616)

12,955(191)

460(1,807)

13,415

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

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 September 30, 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

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
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

(23)

－
－
－
－

(425)

(1)

－
－

－
－

(425)

(1)

29,414

91,584(580)

27,64829,414

100,995

(587)

－
－
－

－
－
－

－
－
－
－
－
－

－
－
－
－
－
－

－
－
－

－
－
－

(1,720)(2)

27,64829,414

106,514(589)(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

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

7,239

－
－
－

－

(2)

7,239

－

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

(0)

－
－
－
－

(1,720)

(2)

－
－

－
－

(1,788)－69

Changes in equity interest of subsidiaries:
Dividends of surplus
Total changes in equity interest of subsidiaries
Total transactions with owners
Balance at September 30, 2017

(Unit: Millions of yen)
Other components of equity

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

Exchangedifferenceson translationof foreign
operations

Effective
portion of
the net changes in
the 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

32

(9)

－
－
－

Balance at September 30, 2016

5,276

－

－
－
－
(7,183)

Balance at April 1, 2017

8,274

－

(1,521)

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
Changes of scope of equity method(1)(1,533)
1,175
(45)

－
－
－
－
－
－

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

23

－

23

(403)

－

－
－

－
－

23

(403)

(241)

(644)

101

(1,807)

146,259

4,671

150,930

77

6,829

164,299

5,472

169,771

7,548

(403)

Changes in equity interest of subsidiaries:
Dividends of surplus

(241)

(241)

(241)

(241)

Comprehensive income for the period:

－

－

－

－

－

7,239

308

Other comprehensive income

2,725

0

3,039

(49)

5,715

5,715

152

5,867

Total comprehensive income for the period

2,725

0

3,039

(49)

5,715

12,955460

13,415

－
－
－
－

－
－
－
－

－
－
－
－
－
－

－
－
－
－
－
－

－
－
－
－

－
－
－
1,518

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

0(0)

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

0(0)

Total changes in equity interest of subsidiaries

－
－

－
－

Total transactions with owners

0(0)Balance at September 30, 2017

10,999(2)(1,788)

－

69

0

－

0

(1,722)

－
－
－

－
－

－
－

0

28

12,545

－
－
－
－
－
－

(2)
(1,788)－69－(1,722)

Changes in equity interest of subsidiaries:
Dividends of surplus

－

(257)

(257)

(257)

(257)

(1,722)(257)(1,978)

175,532

5,676

181,208

Consolidated Statements of Cash FlowsKYB Corporation and its Consolidated Subsidiaries

For the six months
ended September 30, 2016
Apr. 1 through Sep. 30, 2016)（(Unit: Millions of yen)
For the six months
ended September 30, 2017
Apr. 1 through Sep. 30, 2017)（

Cash flows from operating activities:
Profit before taxes

6,802

10,902

Depreciation and amortization

7,751

8,183

1

425

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

164

327

(659)

422

Finance income

(445)

(377)

Finance costs

515

523

Equity in earnings of affiliates

(546)

(81)

(2,702)(6,557)(Increase) decrease in inventories(876)(1,014)

Increase (decrease) in trade and other payables

1,890

2,836

Other

2,778

183

Subtotal

14,673

15,773

Interest received

43

32

Dividends received

619

555

Interest paid

(531)

(560)

Income taxes paid

(1,316)(2,318)Net cash from operating activities

13,48813,483

Payment into time deposits

(137)

(3)

Proceeds from withdrawal of time deposits

189

112

(8,897)(5,549)Proceeds from sales of property, plant and equipment

8

35

Payment for purchases of other financial assets

(1)

(9)

Proceeds from sale of other financial assets

31

8

(419)

(851)

(9,225)(6,256)(Increase) decrease in trade and other receivables

Cash flows from investing activities:

Payment for purchases of property, plant and equipment

Other
Net cash flows from investing activities（

For the six months
ended September 30, 2016
Apr. 1 through Sep. 30, 2016)（(Unit: Millions of yen)
For the six months
ended September 30, 2017
Apr. 1 through Sep. 30, 2017)

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

6,475

1,621

Repayments of lease obligations

(235)

(308)

Proceeds from long-term borrowings

5,716

3,636

Repayment of long-term borrowings(9,644)(7,307)(1)(2)(1,533)(1,788)Dividends paid to non-controlling interests

(241)

(257)

Net cash flows from financing activities

537(4,405)

Effect of changes in foreign exchange rates(1,626)760

Net increase (decrease) in cash and cash equivalents

3,174

3,582

Cash and cash equivalents at beginning of period

25,29633,988542

28,47537,612

Payments for purchase 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 period

Segment InformationKYB Corporation and its Consolidated Subsidiaries

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

Others(Note 1)

Subtotal

Adjustment
Consolidated(Note 2)Total

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

115,175

45,152

160,326

12,603

172,929

－

312

1,143

1,455

190

1,645

(1,645)－

115,486

46,295

161,781

12,793

174,574(1,645)

172,929

140

7,772

78

7,850

6,107

1,526

7,632

Equity in earnings of affiliates

358

188

546

－

Other income and expenses (net)

(905)

(493)

(1,397)(126)

Operating profit

5,560

1,221

6,781

13

172,929(1,524)－－(1,524)

6,795

78

6,873

546

Finance income and costs (net)

546

(70)

Profit before taxes

6,802

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. ¥78 million of adjustment of segment profit is the elimination of intersegment transactions.

For the six months ended September 30, 2017
(Unit: Millions of yen)
Reportable segment
Automotive
Hydrauliccomponents components

Others(Note 1)

Subtotal

Adjustment
Consolidated(Note 2)Total

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

119,076

57,406

176,482

12,410188,892

－

385

742

1,127

211

1,338

(1,338)－

119,461

58,148

177,610

12,621

190,230(1,338)

188,892

181

9,960

182

10,142

4,614

5,165

9,779

Equity in earnings (losses) of affiliates

(41)

121

81

－

Other income and expenses (net)

957

(40)

916

(91)

826

－
－

5,530

5,246

10,77690

10,866

182

Operating profit

81

Finance income and costs (net)Profit before taxes
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. ¥182 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.

188,892

81826
11,048(146)
10,902