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 Six Months Ended September 30, 2018
(Based on Japanese GAAP)
November 9, 2018
Company name:
JEOL Ltd.
Stock exchange listing: Tokyo
Stock code:
Representative:

6951
URL https://www.jeol.co.jp
President and Representative Director

Gon-emon Kurihara

Inquiries:
Director and Executive OfficerScheduled date to file Quarterly Securities Report:

Izumi Oi
November 9, 2018

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

December 7, 2018
Yes

Holding of quarterly financial results meeting:Yes

TEL+81 42-543-1111(for institutional investors and analysts)(Amounts less than one million yen are rounded down)
1. Consolidated financial results for the six months ended September 30, 2018 (from April 1, 2018 to September 30, 2018)(1) Consolidated operating results (cumulative)
Net salesSix months ended September 30, 2018
Six months ended September 30, 2017

Millions of yen
46,722
40,699Percentages indicate year-on-year changes
Profit attributable toOperating profit
Ordinary profit
owners of parent% Millions of yen% Millions of yen% Millions of yen
%
14.8
979
–
1,777
–
1,381
–(8.4)(1,311)–(963)–(731)–

Earnings per share

Diluted earnings per share

Yen
28.59
(15.15)Six months ended September 30, 2018
Six months ended September 30, 2017

Yen––(2) Consolidated financial position
Total assets
As of September 30, 2018
As of March 31, 2018

Net assets

Millions of yen
114,376
114,629

Equity ratio

Millions of yen
38,44637,387

Net assets per share%
33.6
32.6

Yen
795.77773.84

2. Cash dividends
Annual dividends per share

Year ended March 31, 2018Year ending March 31, 2019

1st quarter-end

2nd quarter-end

3rd quarter-end

Fiscal year-end

Yen––Yen
3.50
4.50

Yen–

Yen
4.50

Yen
8.00

–

9.00

–

Year ending March 31, 2019 (Forecast)Total

3. Forecast of consolidated financial results for the year ending March 31, 2019 (from April 1, 2018 to March 31, 2019)
Percentages indicate year-on-year changes
Profit attributable toNet sales
Operating profit
Ordinary profit
Earnings per shareowners of parent
Millions of yen% Millions of yen% Millions of yen% Millions of yen%
Yen
Full year
110,000
5.2
5,200
32.4
5,500
26.1
4,000 (11.7)
82.79

1

4. Notes(1) Changes in significant subsidiaries during the six months ended September 30, 2018(changes in specified subsidiaries resulting in the change in scope of consolidation):No(2) Application of special accounting methods for preparing quarterly consolidated financial statements:

No(3) 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:
Changes in accounting policies due to other reasons:

NoNo

Changes in accounting estimates:
Restatement of prior period financial statements:

NoNo(4) Number of issued shares (common shares)
Total number of issued shares at the end of the period (including treasury shares)
As of September 30, 2018

48,857,800 shares As of March 31, 2018

48,857,800 shares

Number of treasury shares at the end of the period
As of September 30, 2018543,924 shares As of March 31, 2018543,725 shares

Average number of shares during the period (cumulative from the beginning of the fiscal year)
Six months ended September 30, 2018

48,313,913 shares Six months ended September 30, 2017248,314,729 shares

Quarterly consolidated financial statements
Consolidated balance sheets(Millions of yen)
As of March 31, 2018

As of September 30, 2018

AssetsCurrent assets
Cash and deposits
Notes and accounts receivable - trade

9,939
30,3409,381
23,676Merchandise and finished goods
Work in process

11,622
27,945

13,52633,326

Raw materials and supplies
Other

1,784
2,631

2,101
2,736

Allowance for doubtful accounts
Total current assets

(484)

(497)

83,77984,252

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

6,053

5,922

Machinery, equipment and vehicles, net
Tools, furniture and fixtures, net

1,171
3,928

1,016
3,476

Land
Leased assets, net

1,806
479

1,830
373

Construction in progress

158127

13,597

12,746

Goodwill
Other

2,126
501

1,941
461

Total intangible assets

2,628

2,403

Investments and other assets
Investment securities

Total property, plant and equipment
Intangible assets

9,276

9,514

Other
Allowance for doubtful accounts

5,304
(7)

5,425
(7)

Total investments and other assets

14,573

14,93230,79930,08350

41

114,629

114,376

Total non-current assets
Deferred assets
Total assets3

(Millions of yen)
As of March 31, 2018

As of September 30, 2018

Liabilities
Current liabilities
Notes and accounts payable - trade22,842

21,503

Short-term loans payable
Current portion of bonds

9,615
576

10,244
513

Income taxes payable
Provision for bonuses

773
1,274

570
1,300

Other

17,921

20,880Total current liabilities

53,00455,012

5,160
8,048

4,935
5,209

151
–

32
28

9,906
332

9,762
319

Non-current liabilities
Bonds payable
Long-term loans payable
Provision for directors' retirement benefits
Provision for Management Board Incentive Plan Trust
Net defined benefit liability
Asset retirement obligations
Other

638

630

24,237

20,917

77,24275,930Capital stock
Capital surplus

10,037
9,386

10,037
9,914

Retained earnings
Treasury shares

17,832(538)

18,779
(1,067)

Total shareholders' equity

36,717

37,664

Total non-current liabilities
Total liabilities
Net assets
Shareholders' equity

Accumulated other comprehensive incomeValuation difference on available-for-sale securities

3,736

3,634

Deferred gains or losses on hedges
Foreign currency translation adjustment

3(1,382)(33)(1,288)Remeasurements of defined benefit plans(1,687)(1,529)Total accumulated other comprehensive income
Total net assets
Total liabilities and net assets

4669

782

37,38738,446

114,629

114,376

Consolidated statements of income (cumulative) and consolidated statements of comprehensive income(cumulative)
Consolidated statements of income (cumulative)(Millions of yen)Six months ended

Six months ended

September 30, 2017

September 30, 2018

Net sales
Cost of sales

40,69925,99546,722
28,376Gross profit

14,703

18,346

Selling, general and administrative expenses
Research and development expenses

2,689

3,399

Other13,326

13,968

Total selling, general and administrative expenses

16,015

17,367(1,311)

979

Operating profit (loss)
Non-operating income
Interest income

1113

Dividend income
Revenue from acceptance of development services

60
33

69
144

Foreign exchange gains
Share of profit of entities accounted for using equity method

196
129

306
263

Other

106

143

Total non-operating income

539

941

Interest expenses
Loss on sales of accounts receivable

113
475
4

Other

72

62

Non-operating expenses

Total non-operating expenses

191

143(963)

1,777

Gain on sales of non-current assets
Gain on sales of shares of subsidiaries and associates

224
291

47
–

Total extraordinary income

516

47

Ordinary profit (loss)
Extraordinary income

Extraordinary losses
Loss on sales of non-current assets

2–

Loss on retirement of non-current assets
Settlement package

566

51
–

Total extraordinary losses

74

51

Profit (loss) before income taxes

(521)

1,774

Income taxes - current

273

470

Income taxes - deferred

(63)

(77)

Total income taxes

210

392

Profit (loss)

(731)

1,381

Profit (loss) attributable to owners of parent(731)

1,381

5

Consolidated statements of comprehensive income (cumulative)(Millions of yen)

Profit (loss)
Other comprehensive income

Six months ended

Six months ended

September 30, 2017

September 30, 2018
(731)

1,381

Valuation difference on available-for-sale securities
Deferred gains or losses on hedges

384
(5)

(101)
(37)

Foreign currency translation adjustment
Remeasurements of defined benefit plans, net of tax

355
78

198
157

Share of other comprehensive income of entities accounted
for using equity method

11(103)

Total other comprehensive income

824

113

92

1,49492

1,494––Comprehensive income
Comprehensive income attributable toComprehensive income attributable to owners of parent
Comprehensive income attributable to non-controllinginterests

6Consolidated statements of cash flows(Millions of yen)

Cash flows from operating activities
Profit (loss) before income taxes

Six months ended

Six months ended

September 30, 2017

September 30, 2018
(521)

1,774

1,293
184

1,320
184

Increase (decrease) in provision for bonuses
Increase (decrease) in net defined benefit liability409
22311

Increase (decrease) in provision for directors' retirement
benefits(24)(118)

Increase (decrease) Provision For Management Board
Incentive Plan Trust–

28

Loss (gain) on sales and retirement of non-current assets
Loss (gain) on sales of shares of subsidiaries and associates

(217)
(291)

3–

Interest and dividend income
Interest expenses

(71)
113

(83)
75

Loss on sales of notes and accounts receivable-trade
Decrease (increase) in notes and accounts receivable - trade

45,673

46,905Decrease (increase) in inventories
Increase (decrease) in notes and accounts payable - trade(5,796)35(7,195)(1,495)

Other, net920

2,508

Subtotal

1,715

3,949

Depreciation
Amortization of goodwill

Interest and dividend income received
Interest expenses paid
Loss on sales of notes and accounts receivable-trade-paid

80

87

(115)
(4)

(78)
(4)

Income taxes (paid) refund

(306)

(724)

Net cash provided by (used in) operating activities

1,369

3,229

Purchase of property, plant and equipment
Proceeds from sales of property, plant and equipment

(977)
633

(685)
57

Purchase of intangible assets
Proceeds from sales of shares of subsidiaries and associates

(43)
946

(2)–

Other, net

223

(23)

Net cash provided by (used in) investing activities

782(653)

Net increase (decrease) in short-term loans payable
Proceeds from long-term loans payable(2,291)
800

(69)
–

Repayments of long-term loans payable
Proceeds from issuance of bonds(2,380)397(2,140)
–

(338)
(338)

(288)
(434)

Cash flows from investing activities

Cash flows from financing activities

Redemption of bonds
Cash dividends paid
Other, net
Net cash provided by (used in) financing activities
Effect of exchange rate change on cash and cash equivalents

(235)

(194)

(4,385)(3,127)

401

115

Net increase (decrease) in cash and cash equivalents(1,831)(436)

Cash and cash equivalents at beginning of period
Increase in cash and cash equivalents from newly consolidated

9,420

9,813

721

–

8,310

9,377

subsidiary
Cash and cash equivalents at end of period7