Translation
Notice: This document is an excerpt translation of the original Japanese document and is only for reference purposes. In the event of any
discrepancy between this translated document and the original Japanese document, the latter shall prevail.

Summary of Consolidated Financial Results
for the Year Ended March 31, 2016
(Based on Japanese GAAP)May 13, 2016
Company name:

CREO CO., LTD.

Stock exchange listing: Tokyo
Stock code:
9698
Representative:
Inquiries:

URL

http://www.creo.co.jp

President and Representative Director
Executive Officer, Financial Director

Yuji Anan
Takashi AmedaScheduled date of ordinary general meeting of shareholders:
Scheduled date to file Securities Report:

June 14, 2016
June 27, 2016

Scheduled date to commence dividend payments:
Preparation of supplementary material on financial results:

June 15, 2016
No

Holding of financial results meeting:

Yes

TEL

03-6866-0331(May 17, 2016)(Amounts less than one million yen are rounded down)

1. Consolidated financial results for the year ended March 31, 2016 (from April 1, 2015 to March 31, 2016)(1) Consolidated operating results
Percentages indicate year-on-year changes
Profit attributable toNet sales
Operating income
Ordinary income
owners of parent
Millions of yen% Millions of yen% Millions of yen% Millions of yen%
Year ended March 31, 2016
10,305(9.8)
348(2.6)
368(3.3)
413
93.8
Year ended March 31, 2015
11,425
0.3
357
37.6
380
38.7
213 384.5

Earnings per share

Profit attributable toOrdinary
owners ofincome/total assets
parent/equity
Yen%%–
8.4
5.2
–
4.6
5.5

Diluted earnings pershare

Yen
47.79
24.66

Year ended March 31, 2016
Year ended March 31, 2015

Operatingincome/net sales%
3.43.1(2) Consolidated financial position
Total assets
As of March 31, 2016
As of March 31, 2015

Net assets

Equity ratio

Millions of yen
7,091
7,159

Millions of yen
5,165
4,799

Cash flows fromoperating activities
Millions of yen
499
772

Cash flows frominvesting activities
Millions of yen
(341)
(322)

Net assets per share%
72.2
66.5

Yen
591.66549.99(3) Consolidated cash flows

Year ended March 31, 2016
Year ended March 31, 2015

Cash flows from
Cash and cash equivalents
at end of period
financing activities
Millions of yen
Millions of yen(112)
3,599(44)3,553

2. Cash dividends
Annual dividends per share
1st quarter-end 2nd quarter-end 3rd quarter-end Fiscal year-end

Year ended March 31, 2015
Year ended March 31, 2016
Year ending March 31, 2017
(Forecast)of dividends
Total cash
Dividend payout Ratio
to net assets
dividends (Total) ratio (Consolidated) (Consolidated)

Total

Yen

Yen

Yen

Yen

Yen

Millions of yen

%%

––

0.00
0.00

–
–

5.00
15.00

5.00
15.00

43
129

20.3
31.4

0.9
2.6

–

0.00

–

12.00

12.00

140.0

3. Forecast of consolidated financial results for the year ending March 31, 2017 (from April 1, 2016 to March 31, 2017)
Net sales
Millions of yen
Six months ending
September 30, 2016
Full year

Percentages indicate year-on-year changes
Profit attributable toOperating income
Ordinary income
owners of parent% Millions of yen% Millions of yen% Millions of yen
%

5,000

5.5

20(77.1)30(71.0)10(96.0)

11,500

11.6

370

6.9

380

3.1

260

(37.1)

4. Notes(1) Changes in significant subsidiaries during the year ended March 31, 2016(changes in specified subsidiaries resulting in the change in scope of consolidation):No(2) Changes in accounting policies, changes in accounting estimates, and restatement of prior period financial statements
Changes in accounting policies due to revisions to accounting standards and other regulations:
Yes
Changes in accounting policies due to other reasons:
Changes in accounting estimates:

No
No

Restatement of prior period financial statements:

No(3) Number of issued shares (common shares)
Total number of issued shares at the end of the period (including treasury shares)
As of March 31, 2016

9,237,319 shares As of March 31, 2015

9,237,319 shares

586,055 shares As of March 31, 2015

581,646 shares

Number of treasury shares at the end of the period
As of March 31, 2016
Average number of shares during the period
Year ended March 31, 2016

8,654,483 shares Year ended March 31, 2015

2

8,656,835 shares

Consolidated financial statements
Consolidated balance sheets(Millions of yen)
As of March 31, 2015

As of March 31, 2016

AssetsCurrent assets
Cash and deposits
Notes and accounts receivable - trade

3,553
2,149

3,599
2,176

Merchandise and finished goods
Work in process24204

19167

Other

186

193

6,118

6,155

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

237

233

Accumulated depreciation and impairment loss

(87)

(102)

Buildings and structures, net

150

130

158

167

(108)

(123)

49

43

Tools, furniture and fixtures
Accumulated depreciation and impairment loss
Tools, furniture and fixtures, net
Leased assets

3

14

Accumulated depreciation

(1)

(1)

Leased assets, net

2

120

0

202

186

Intangible assets
Goodwill–

26

Patent right
Software

2378

2392

Software in progress
Other

103
3112

Total intangible assets

488

435

Land
Total property, plant and equipment

Investments and other assets
Investment securities

119

99

Other
Allowance for doubtful accounts

231
(0)

213
(0)

Total investments and other assets

350

313

Total non-current assets
Total assets

3

1,041

935

7,159

7,091

(Millions of yen)
As of March 31, 2015

As of March 31, 2016

Liabilities
Current liabilities
Accounts payable - trade

433

462

Accounts payable - other
Income taxes payable

566
43284
80

Provision for bonuses
Provision for directors' bonuses

461
–429
2Provision for sales returns
Other

79653

–
525

Total current liabilities

2,237

1,784

Non-current liabilities
Accrued directors' retirement benefits2626

Net defined benefit liability
Asset retirement obligations

–53

32
50

Other

42

31

Total non-current liabilities

122

141

2,360

1,925

Capital stock
Capital surplus

3,149743

3,149743

Retained earnings
Treasury shares

1,013
(178)

1,384
(180)

Total shareholders' equity

4,728

5,095

Accumulated other comprehensive income
Valuation difference on available-for-sale securities

3221Total accumulated other comprehensive income

32

2139

47

4,799

5,165

7,159

7,091

Total liabilities
Net assets
Shareholders' equity

Non-controlling interests
Total net assets
Total liabilities and net assets

4Consolidated statements of income and consolidated statements of comprehensive income
Consolidated statements of income(Millions of yen)
Fiscal year ended
March 31, 2015

Fiscal year ended
March 31, 2016

Net sales
Cost of sales

11,425
8,792

10,305
8,267

Gross profit

2,632

2,038

83
154
771
28
90
240
906

857615
1966
189
732

Selling, general and administrative expenses
Promotion expenses
Advertising expenses
Salaries, allowances and bonuses
Retirement benefit expenses
Provision for bonuses
Directors' compensations
Other

2,275

1,690

Operating income

Total selling, general and administrative expenses

357

348

Non-operating income
Interest income
Dividend income
Insurance fee
Subsidy income
Gain on investments in partnershipprofit
Other

022–
124
3

12–
15––
4

Total non-operating income2523

Non-operating expenses
Interest expenses
Foreign exchange losses
Loss on cancellation of leases
Impairment loss
Other010–00––
30

Total non-operating expenses

23Ordinary income

380

368

Extraordinary income
Gain on transfer of business
Gain on sales of investment securities
Gain on sales of shares of subsidiaries

86–––
1
204

86

205

–
10145
10–
31
0

Total extraordinary income
Extraordinary losses
Loss on retirement of non-current assets
Settlement package
appraisal loss software
Other

157

31

Profit before income taxes

Total extraordinary losses

310542

Income taxes - current
Income taxes - deferred

90
3122
2

Total income taxes

93

125

Profit217417

33213413

Profit attributable to non-controlling interests
Profit attributable to owners of parent

5Consolidated statements of comprehensive income(Millions of yen)

ProfitOther comprehensive income

Fiscal year ended

Fiscal year ended

March 31, 2015

March 31, 2016
217

417

Valuation difference on available-for-sale securities

25(10)

Total other comprehensive income25(10)

Comprehensive income

242

406

Comprehensive income attributable toComprehensive income attributable to owners of parent

238

403

33

Comprehensive income attributable to non-controllinginterests

6Consolidated statements of changes in equity
Fiscal year ended March 31, 2015
(Millions of yen)
Shareholders' equity
Capital stock
Balance at beginning of current
periodCapital surplus

3,149

Retained earnings

743

Total shareholders'equityTreasury shares

843

(178)

4,558

Changes of items during period
Dividends of surplus

(43)

(43)

Profit attributable to ownersof parent

213

213

Purchase of treasury shares

(0)

(0)

Net changes of items otherthan shareholders' equity
Total changes of items during
periodBalance at end of current period

––

170

(0)

169

3,149743

1,013

(178)

4,728

Accumulated other comprehensive income

Balance at beginning of current
periodValuation difference on
available-for-salesecurities

Total accumulated
other comprehensive
income77

Non-controllinginterests

Total net assets

36

4,602

Changes of items during period
Dividends of surplus(43)

Profit attributable to ownersof parent

213

Purchase of treasury shares(0)

Net changes of items otherthan shareholders' equity

2525

328

Total changes of items during
period2525

3197

Balance at end of current period

3232

39

4,799

7Fiscal year ended March 31, 2016
(Millions of yen)
Shareholders' equity
Capital stock
Balance at beginning of current
periodCapital surplus

3,149

Retained earnings

743

Total shareholders'equity

Treasury shares

1,013

(178)

4,728

Changes of items during period
Dividends of surplus

(43)

(43)

Profit attributable to ownersof parent413

413

Purchase of treasury shares

(1)

(1)

Net changes of items otherthan shareholders' equity
Total changes of items during
periodBalance at end of current period

––370

(1)

368

3,149

743

1,384

(180)

5,096Accumulated other comprehensive income

Balance at beginning of current
periodValuation difference on
available-for-salesecurities

Total accumulated
other comprehensive
income3232

Non-controllinginterests

Total net assets

39

4,799

Changes of items during period
Dividends of surplus(43)

Profit attributable to ownersof parent

413

Purchase of treasury shares(1)

Net changes of items otherthan shareholders' equity

(10)

(10)

8(2)

Total changes of items during
period

(10)

(10)

8366

Balance at end of current period

2121475,165

8Consolidated statements of cash flows(Millions of yen)

Cash flows from operating activities
Profit before income taxes

Fiscal year ended

Fiscal year ended

March 31, 2015

March 31, 2016
310542

Depreciation
Amortization of goodwill

478
2242
2

Increase (decrease) in allowance for doubtful accounts
Increase (decrease) in provision for bonuses

031

(1)
2

Increase (decrease) in provision for directors' bonuses
Increase (decrease) in provision for sales returns

–(10)

2
–

Increase (decrease) in provision for retirement benefits
Interest and dividend income–
(2)

3(4)

Interest expenses
Loss on retirement of property, plant and equipment

0000

Gain on transfer of business
Loss (gain) on valuation of investment securities

(86)
––
(1)

–0(204)–appraisal loss software
Settlement package

145
1031–

Decrease (increase) in notes and accounts receivable - trade
Decrease (increase) in inventories

(107)
(33)

(37)
25

Increase (decrease) in notes and accounts payable - trade
Increase (decrease) in accounts payable - other(38)
69

65
(8)

Increase (decrease) in accrued consumption taxes
Decrease (increase) in claims provable in bankruptcy, claims

156(102)

Loss (gain) on sales of shares of subsidiaries
Loss (gain) on sales of property, plant and equipment

provable in rehabilitation
Other, net(0)

0(21)

23

Subtotal

905

581

Interest and dividend income received
Interest expenses paid

2(0)

4(0)

Income taxes paid

(136)

(85)

Net cash provided by (used in) operating activities

772

499

9

(Millions of yen)

Cash flows from investing activities
Purchase of property, plant and equipment

Fiscal year ended

Fiscal year ended

March 31, 2015

March 31, 2016(58)(14)–(346)

1(303)––0(0)Proceeds from sales of investment securities
Payments for guarantee deposits

–
(77)

5(1)

Proceeds from collection of guarantee deposits
Proceeds from transfer of business

62
110

0–

Payments for sales of shares of subsidiaries resulting inchange in scope of consolidation–(3)

Purchase of shares of subsidiaries resulting in change in scopeof consolidation

–

(53)

Payments of short-term loans receivableCollection of short-term loans receivable

–
–

(30)
56

Proceeds from sales of property, plant and equipmentPurchase of intangible assets
Proceeds from sales of intangible assets
Purchase of investment securities

Other, net

(12)

0

Net cash provided by (used in) investing activities

(322)

(341)

––

(29)
(35)

Cash dividends paid
Purchase of treasury shares

(42)
(0)

(43)
(1)

Dividends paid to non-controlling interests
Repayments of lease obligations

(0)
(0)

(0)
(0)

Cash flows from financing activities
Decrease in short-term loans payable
Repayments of long-term loans payable

(44)

(112)

Net increase (decrease) in cash and cash equivalents

Net cash provided by (used in) financing activities

405

45

Cash and cash equivalents at beginning of period

3,148

3,553

Cash and cash equivalents at end of period

3,553

3,599

10