FLASH REPORT
May. 9, 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 fiscal year ended March 31, 2017
( from April 1, 2016 to March 31, 2017 )(1) Consolidated operating results(Percentages indicate the year-on-year changes)

Net salesYear ended

Millions of yen

Profit before taxes

Operating profit%

Millions of yen%

Millions of yen%

Profit for the year
Millions of yen

March 31, 2017355,316(0.0)

19,247344.8

18,852567.3

15,078March 31, 2016

355,320

(4.1)

4,327

(70.1)

2,825(81.0)(2,622)

Year ended

Profit attributable toowners of the parent

Comprehensive
income for the year

Millions of yen

Millions of yen

March 31, 2017

14,544

March 31, 2016

(3,161)%－－

Ratio of profit toequity attributable toowners of the parent
Year ended%

18,345(17,832)－－

Basic earnings
per share

Diluted earnings
per share

Yen

Yen

(12.37)
Ratio of operating
profit to sales%%

March 31, 2017

9.3

5.1

5.4

March 31, 2016

(2.0)

0.8

1.2

－
－

－
－

56.93

Ratio of profit
before income taxes
to total assets%%

Reference: Share of profit (loss) in investments accounted for using the equity method:
Fiscal year ended March 31, 2017:¥1,016million

Fiscal year ended March 31, 2016: (¥1,292million)(2) Consolidated financial position
Ratio of equity
attributable toowners of the parent
to total assets

Equity attributable toowners of the parent
per share%

Yen

Total assets

Total equity

Equity attributable toownersof the parent

Millions of yen

Millions of yen

Millions of yen

March 31, 2017

381,326

169,771

164,29943.1

643.15

March 31, 2016

359,002

153,381148,27841.3

580.40As of(3) Consolidated cash flows

Year ended

Cash flows fromoperating activities

Cash flows frominvesting activities

Cash flows fromfinancing activities

Cash andcash equivalents
at the end of year

Millions of yen

Millions of yen

Millions of yen

Millions of yen

March 31, 201731,153(21,337)(969)

33,988March 31, 2016

19,958(20,320)(3,395)25,2961

2. Cash dividends
Annual cash dividends per share

Year ended
March 31, 2016
March 31, 2017
March 31, 2018

Total cash
dividends(Annual)Payout ratio(Consolidated)

End offirst quarterEnd ofsecondquarter

End ofthird quarter

Year-end

Total

Yen

Yen

Yen

Yen

Yen

Millions of yen

6.00

11.00

2,810

－

7.00

12.00

3,066

21.1

－
－
－

－
－
－

5.00
5.00
6.00

－

65.00

Ratio ofdividends
to equity
attributable toowners of theparent(consolidated)

%

%

1.8
2.0

34.3

*We are going to carry 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 12.50 yen.

3. Forecasts for the fiscal year ending March 31, 2018 ( April 1, 2017 to March 31, 2018 )(Percentages indicate the year-on-year changes)

Net sales

Operating profit

Profit before taxes

Profitattributable toowners of the parent

Basic earnings
per share

Millions of yen%

Millions of yen%

Millions of yen%

Millions of yen%

Yen

First half

176,000

1.8

7,100

3.3

6,600

(3.0)

4,000

(28.8)

15.66

Full year

355,000(0.1)

15,600(18.9)

14,600(22.6)

9,300(36.1)

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

2

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

As of March 31, 2017

AssetsCurrent assets:
Cash and cash equivalents

25,29633,988Trade and other receivables

87,99992,653Inventories

48,29149,640954

1,039

Other current assets

3,793

3,641

Total current assets

166,333

180,962

158,609

158,990318

283

Intangible assets

4,424

5,850

Investments accounted for using the equity method

3,833

5,438

Other non-current financial assets

18,99923,169

622

500

5,865

6,132

192,669

200,364

359,002381,326

Other current financial assets

Non-current assets:
Property, plant and equipment
Goodwill

Other non-current assets
Deferred tax assets
Total non-current assets
Total assets3

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

As of March 31, 2017

Liabilities and equity
Current liabilities:
Trade and other payables

66,211

72,137

Borrowings

50,49250,983

Income tax payables

1,413

1,536

Other current financial liabilities

18,416

18,274

Provisions

5,313

3,754

Other current liabilities

978

1,001

Total current liabilities

142,822

147,684

Borrowings

38,34839,962

Liabilities for retirement benefits

13,893

11,589Other non-current financial liabilities

2,592

2,405

Provisions

1,994

2,127

777

56

Deferred tax liabilities

5,194

7,732

Total non-current liabilities

62,79963,871

205,621211,555

Share capital

27,64827,648

Capital surplus

29,414

29,414Retained earnings

86,393

100,995

Treasury shares

(579)

(587)

Other components of equity

5,402

6,829

148,278

164,299

5,103

5,472

Total equity

153,381

169,771

Total liabilities and equity

359,002381,326

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 interests4Consolidated Statements of Income
KYB Corporation and its Consolidated Subsidiaries(Unit: Millions of yen)
For the fiscal year
ended March 31, 2016
Apr. 1, 2015 through Mar. 31, 2016)（

For the fiscal year
ended March 31, 2017
Apr. 1, 2016 through Mar. 31, 2017)（

Net sales

355,320355,316

Cost of sales

283,247

282,886

Gross profit

72,07372,430

Selling, general and administrative expenses

54,48553,806Equity in earnings (losses) of affiliates(1,292)

1,016

Other income

2,671

2,036

Other expenses

14,6402,430Operating profit

4,327

19,247

Finance income

561

593

Finance costs

2,062

988

Profit before taxes

2,825

18,852

Income tax expenses

5,447

3,774

Profit (loss) for the year

(2,622)

15,078(3,161)

14,544Non-controlling interests

539

533

Profit (loss) for the year

(2,622)

15,078(12.37)

56.93

Profit attributable to:
Owners of the parent

Earnings per share
Basic earnings per share (in yen)5Consolidated Statements of Comprehensive Income
KYB Corporation and its Consolidated Subsidiaries(Unit: Millions of yen)（

For the fiscal year
ended March 31, 2016
Apr. 1, 2015 through Mar. 31, 2016)

Profit (loss) for the year（

For the fiscal year
ended March 31, 2017
Apr. 1, 2016 through Mar. 31, 2017)(2,622)

15,078(2,415)

3,342(6,660)

1,705

(465)

17

(9,540)5,064(5,729)(1,509)

58

(85)

－

(203)

(5,670)(1,797)

Total other comprehensive income(15,210)

3,267

Comprehensive income for the year

(17,832)

18,345(17,828)

17,708Other comprehensive income:Items that will not be reclassified to profit or loss:
Net changes in financial assets measured at fair value throughother comprehensive income
Remeasurements of defined benefit plans
Share of other comprehensive income of investments
accounted for using the equity method
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 year attributable to:
Owners of the parent
Non-controlling interests
Comprehensive income for the year

6

(4)

636

(17,832)

18,345

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 year:
Loss for the year
Other comprehensive income
Total comprehensive income for the year

(3,161)－(3,161)－－－

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

－
－

－
－

(6)
0

(5,311)－－(8,377)

(6)

(130)

－
－
－

－
－
－

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

(130)

－
(129)

(11,539)(6)

Balance at March 31, 2016

27,64829,41486,393(579)

Balance at April 1, 2016

27,64829,41486,393

(579)

－
－
－

－
－
－

－
－
－
－
－
－
－

－
－
－
－
－
－
－

－
－
－

－
－
－

14,602(8)

27,64829,414

100,995(587)

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

14,544－

14,544－－－

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
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

－
－

(8)

1,737

－
－
－
－
－

57

(8)

－
－

－
－

(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 March 31, 20177

(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

Exchangedifferenceson 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 year:

－

－

－

－

－

(3,161)539(2,622)Other comprehensive income(2,415)(6,627)(5,688)63(14,667)(14,667)(543)(15,210)

Total comprehensive income for the year

(2,415)(6,627)(5,688)63(14,667)(17,828)(4)(17,832)

－
－
－

－
－
－

－
－
－
－
－

－
－
－
－
－

－
－
－

－
－
－

－
－
－

－
－
－

(5,688)63(9,355)

275

160

5,402

Loss for the year

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(1,315)

6,627

Total contributions by and distributions to owners
in their capacity as owners(1,315)

6,627

－
－
－

－
－
－
－
－

5,311

－

5,311

(3,072)

－
－
－
－
－

(130)

(573)

－

(269)

(269)

(130)

(842)

(971)

(21,029)(846)(21,875)

148,278

5,103

153,381(6)
0(3,066)(6)
0(3,066)(703)－(3,072)

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 March 31, 2016

(3,730)4,967

8

Balance at April 1, 2016

4,967

－

275

160

5,402

148,278

5,103

153,381

15,078Comprehensive income for the year:

－

－

－

－

－

14,544

533

Other comprehensive income

3,342

1,702

(1,796)

(83)

3,164

3,164

103

3,267

Total comprehensive income for the year

3,342

1,702

(1,796)

(83)

3,164

17,708636

18,345

－
－
－
－
－

－
－
－
－
－

(35)

(1,702)

Total contributions by and distributions to owners
in their capacity as owners(35)(1,702)

－
－
－
－
－
－
－

－
－
－
－
－

Transfer to retained earnings

－
－
－
－
－
－
－

－
－

－
－
－
－

－
－

Profit for the year

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
Change of scope of equity method
Changes due to business combination(8)－(2,810)1,175(45)(1,737)－(1,737)(1,687)

－
－

－
－

－
－

(1,796)

(83)

1,427

(1,521)

77

6,829

－
－
－
－
－
－
－

(8)

－

(2,810)
1,175
(45)

－

(1,687)

Changes in equity interest of subsidiaries:
Dividends of surplus
Total changes in equity interest of subsidiaries
Total transactions with owners
Balance at March 31, 2017

3,307
8,274

9

(267)

(267)

(267)

(267)

16,021369

16,390164,299

5,472

169,771

Consolidated Statements of Cash FlowsKYB Corporation and its Consolidated Subsidiaries

For the fiscal year
ended March 31, 2016
Apr. 1, 2015 through Mar. 31, 2016)（(Unit: Millions of yen)
For the fiscal year
ended March 31, 2017
Apr. 1, 2016 through Mar. 31, 2017)（

Cash flows from operating activities:
Profit before taxes

2,825

18,852

Depreciation and amortization

17,075

15,922

Impairment losses

4,049

147

(70)

149

(1,772)(1,495)

(561)

(593)

Increase (decrease) in assets and liabilities for retirement benefits
Increase (decrease) in provisions for product warranties
Finance income
Finance costs

1,215

988

Equity in earnings (losses) of affiliates

1,292(1,016)(Increase) decrease in trade and other receivables

6,010(5,052)(Increase) decrease in inventories(3,574)(1,889)

Increase (decrease) in trade and other payables(3,645)

6,640

Loss associated with the Anti-Trust law

8,152

700

Reversal of foreign currency transaction adjustment

(64)

－

Other

1,928

2,209

Subtotal

32,86035,562

Interest received

109

94

Dividends received

782

1,072

Interest paid

(1,283)(1,003)

Income taxes paid

(4,450)(3,815)34－

Payments of loss associated with the Anti-Trust law(8,095)(757)

Net cash from operating activities

19,95831,153

Payment into time deposits

(332)

(237)

Proceeds from withdrawal of time deposits

665

255

(21,967)(19,734)350

31

Refund of income taxes

Cash flows from investing activities:

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

(702)

(1)

Proceeds from sale of other financial assets

2,942

178

Other

(1,275)(1,830)Net cash flows from investing activities(20,320)(21,337)10

(Unit: Millions of yen)
For the fiscal year
ended March 31, 2017
Apr. 1, 2016 through Mar. 31, 2017)

For the fiscal year
ended March 31, 2016
Apr. 1, 2015 through Mar. 31, 2016)（（

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

2,839

5,207

Repayments of lease obligations

(615)

(456)

Proceeds from long-term borrowings

14,54815,294

Repayment of long-term borrowings(16,164)(17,928)

Payments for purchase of treasury shares

(6)

(8)

Proceeds from sales 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

(663)

－

Net cash flows from financing activities(3,395)(969)

Effect of changes in foreign exchange rates(1,458)(160)

Net increase (decrease) in cash and cash equivalents(5,215)

8,687

Cash and cash equivalents at beginning of year

30,51025,296－

525,29633,988Dividends paid

Increase (decrease) in cash and cash equivalents resulting
from merger with unconsolidated subsidiaries
Cash and cash equivalents at end of year11

Segment InformationKYB Corporation and its Consolidated Subsidiaries

For the fiscal year ended March 31, 2016
(Unit: Millions of yen)
Reportable segment
Automotive
Hydrauliccomponents components

Subtotal

Others(Note 1)

Adjustment
Consolidated(Note 2)Total

Net sales:
240,903

88,024

328,926

26,394355,320

－

136

2,944

3,080

1,824

4,904

(4,904)－

241,039

90,968332,006

28,218360,224(4,904)355,320

Segment profit (Note 3)

15,484444

15,928

1,631

17,55930

Equity in earnings (losses) of affiliates(1,320)28(1,292)Other income and expenses (net)(8,944)(3,311)

Operating profit (loss)

5,220(2,839)Outside customers
Intersegment sales and transfers
Total

－

(1,292)(12,255)286(11,969)

－
－

2,381

1,917

4,297

30

Finance income and costs (net)355,320

17,588(1,292)(11,969)
4,327(1,502)

Profit before taxes

2,825

Depreciation and amortization
Impairment loss
Increases of non current-assets (Note 4)

10,224

6,012

16,236

463

3,478

3,941

15,0704,518

19,588845

17,081

(5)

108

4,050

(1)

1,712

21,300－17,075
4,049
21,300Notes: 1. “Others” includes “Special-purpose Vehicles”, "Aircraft Components" and “System Products andElectronic Equipment” that are not included in the two of reportable segment.
2. ¥30 million of adjustment of segment profit is the elimination of intersegment transactions.
3. Segment profit is calculated by deducting cost of sales and selling, general and administrative expenses from sales.
4. Non current-assets don't include investments accounted for using the equity method , other non-current financial assets and deferred tax assets.

For the fiscal year ended March 31, 2017
(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 (Note 3)

231,036

96,316327,352

27,964355,316

－

577

2,336

2,913

1,812

4,725

(4,725)－

231,61398,652

330,265

29,776360,041(4,725)355,316834

18,55371

18,624

11,135

6,583

17,719Equity in earnings of affiliates

639

377

1,016

－

Other income and expenses (net)

(324)

(123)

(447)

53

(394)

－
－

11,451

6,837

18,288887

19,17571

Operating profit (loss)

1,016

355,316

1,016
(394)
19,247

Finance income and costs (net)(395)

Profit before taxes
Depreciation and amortization
Impairment loss
Increases of non current-assets (Note 4)

18,852
9,938

5,206

15,144784

15,928

(6)

37

116

30

147

－

15,92280
14,733

3,804

18,537

2,037

20,575

4

20,578147

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. ¥71 million of adjustment of segment profit is the elimination of intersegment transactions.
3. Segment profit is calculated by deducting cost of sales and selling, general and administrative expenses from sales.
4. Non current-assets don't include investments accounted for using the equity method , other non-current financial assets and deferred tax assets.

*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 previous fiscal year, we disclose the information in which we take into account the change above.

12