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 11, 2016
Company name:

Fumakilla Limited

Stock exchange listing: Tokyo
Stock code:
4998
Representative:
Inquiries:

URL

http://www.fumakilla.co.jp

President
Director, General Manager, Administrative

Division
Scheduled date of ordinary general meeting of shareholders:Kazuaki Oshimo
Takanori Sasaki

TEL0829-55-2112

June 29, 2016

Scheduled date to file Securities Report:
Scheduled date to commence dividend payments:
Preparation of supplementary material on financial results:
Holding of financial results meeting:June 30, 2016
June 30, 2016
Yes
Yes

(for institutional investors and analysts)(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
Net salesYear ended March 31, 2016
Year ended March 31, 2015

Operating income

Millions of yen
36,28833,308%8.9
16.9

Millions of yen
1,865
1,447

Earnings per share

Diluted earnings pershare

Profit attributable toOrdinary
owners ofincome/total assets
parent/equity
Yen%
%
–
13.5
6.4
–
11.6
5.6

Yen
40.68
30.60

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

%
28.9
120.9

Percentages indicate year-on-year changes
Profit attributable toOrdinary income
owners of parent
Millions of yen% Millions of yen%
1,973
26.3
1,131
32.8
1,562 155.1
852 229.9
Operatingincome/net sales%
5.1
4.3(2) Consolidated financial position
Total assets
As of March 31, 2016
As of March 31, 2015

Net assets

Equity ratio

Millions of yen
31,62629,809Millions of yen
10,245
10,226

Cash flows fromoperating activities
Millions of yen
(292)
2,162

Cash flows frominvesting activities
Millions of yen
(875)
(646)

Net assets per share%
26.6
27.9

Yen
302.27298.73(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
1,402
2,527(970)2,524

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%%––––––

8.00
10.00

8.00
10.00

222278

26.1
24.6

3.0
3.3

–––

10.00

10.00

125.5

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
Earnings per shareowners of parent% Millions of yen% Millions of yen% Millions of yen%Yen

21,2001.3

1,500(10.3)

1,550

(8.4)

890

(10.8)

32.01

37,800

4.2

1,840

(1.4)

2,020

2.4

1,090(3.6)

39.20

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

32,980,000 shares As of March 31, 2015

32,980,000 shares

Number of treasury shares at the end of the period
As of March 31, 2016

5,174,709 shares As of March 31, 2015

5,170,951 shares

27,807,105 shares Year ended March 31, 2015

27,841,619 shares

Average number of shares during the period
Year ended March 31, 20162

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

As of March 31, 2016

AssetsCurrent assets
Cash and deposits
Notes and accounts receivable - trade3,147,437
8,274,500

3,196,933
9,454,463

Electronically recorded monetary claims - operating
Merchandise and finished goods

4,260
3,370,927

37,8504,164,456

Work in process
Raw materials and supplies

640,724
1,402,765

882,458
1,542,656

609,582
860,912617,831
1,126,455

Deferred tax assets
Other
Allowance for doubtful accounts(1,052)(1,177)18,310,059

21,021,928

5,761,785

5,554,859

Accumulated depreciation(3,652,086)(3,706,919)

Buildings and structures, net

2,109,698

1,847,940

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

Machinery, equipment and vehicles

8,874,985

8,766,990

Accumulated depreciation(7,635,063)(7,563,259)

Machinery, equipment and vehicles, net

1,239,922

1,203,731

3,008,267

3,079,493(2,838,661)(2,928,995)

169,606

150,498Land

705,978

696,090

Leased assets
Accumulated depreciation

223,596(85,272)

196,802(101,406)

138,324

95,396

Tools, furniture and fixtures
Accumulated depreciation
Tools, furniture and fixtures, net

Leased assets, net
Construction in progress

64,014

138,9214,427,545

4,132,578

1,315,573
1,218,017

1,040,129
956,979

668,190

556,4073,201,781

2,553,516

3,525,650
99,0673,536,974
108,776

Net defined benefit asset
Other

34,309411,588

47,572404,742

Allowance for doubtful accounts(200,407)(179,320)

Total property, plant and equipment
Intangible assets
Goodwill
Trademark right
Other
Total intangible assets
Investments and other assets
Investment securities
Deferred tax assets

Total investments and other assets
Total non-current assets
Total assets

3

3,870,208

3,918,745

11,499,535

10,604,840

29,809,595

31,626,769

(Thousands of yen)
As of March 31, 2015

As of March 31, 2016

Liabilities
Current liabilities
Notes and accounts payable - trade

3,265,844

3,651,135

1,869,190
6,344,533

1,675,745
8,412,504

301,283
42,500373,823
37,231

2,551,319
214,746

2,505,107
257,071

Provision for bonuses
Provision for directors' bonuses

427,166
20,500470,781
34,300

Provision for sales rebates
Provision for sales returns

98,532499,845

77,094468,473

Other

127,225

94,572

15,762,688

18,057,843

Long-term loans payable
Lease obligations

1,940,052
88,685

1,567,374
51,213

Deferred tax liabilities
Net defined benefit liability

979,780
289,728875,017282,660

Provision for directors' retirement benefits
Asset retirement obligations

444,683
8,988

469,652
9,158

Other

68,182

68,370Electronically recorded obligations - operating
Short-term loans payable
Current portion of long-term loans payable
Lease obligations
Accounts payable - other
Income taxes payable

Total current liabilities
Non-current liabilities

Total non-current liabilities

3,820,100

3,323,447

19,582,789

21,381,291

Capital stock
Capital surplus

3,698,680
2,105,774

3,698,680
2,105,908

Retained earnings
Treasury shares

2,446,171(1,568,006)

3,354,975(1,570,329)

Total shareholders' equity

6,682,619

7,589,234

859,055

830,818

786,357(20,739)

34,678(50,044)1,624,673

815,453

Non-controlling interests

1,919,512

1,840,791

Total net assets

10,226,805

10,245,478

29,809,595

31,626,769

Total liabilities
Net assets
Shareholders' equity

Accumulated other comprehensive income
Valuation difference on available-for-sale securities
Foreign currency translation adjustment
Remeasurements of defined benefit plans
Total accumulated other comprehensive income

Total liabilities and net assets

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

Fiscal year ended
March 31, 2016

Net sales

33,308,347

36,288,365

Cost of sales

22,491,502

24,877,794

Gross profit

10,816,845

11,410,571

Reversal of provision for sales returns

542,925

498,345

Provision for sales returns

499,845465,200

10,859,925

11,443,716

Transportation expenses
Advertising expenses

1,465,966
1,694,681

1,497,837
1,757,191

Promotion expenses
Traveling and transportation expenses

1,039,749
347,316

1,169,328
346,539

Provision of allowance for doubtful accounts
Salaries and allowances

4,014
1,613,914

1,557
1,576,369

Bonuses
Provision for bonuses

165,305
202,417

91,465285,322

Provision for directors' bonusesRetirement benefit expenses

20,500131,70234,300105,936

Provision for directors' retirement benefits
Depreciation

35,612
271,615

42,980246,854

Other

2,419,577

2,422,671

Total selling, general and administrative expenses

9,412,374

9,578,355

1,447,551

1,865,361

Non-operating income
Interest income

36,99968,867

Dividend income
Real estate rent

67,53937,031

77,18046,360Technical advisory fee
Other61,286
120,483

74,39990,039Total non-operating income

323,341

356,846

89,59874,634

Sales discounts
Foreign exchange losses

68,8999,142

78,741
14,605

Taxes and dues
Other–
41,10358,00422,987

Total non-operating expenses

208,744248,972

1,562,148

1,973,235

Gross profit - net
Selling, general and administrative expenses

Operating income

Non-operating expenses
Interest expenses

Ordinary income5(Thousands of yen)

Extraordinary income
Gain on sales of non-current assets

Fiscal year ended

Fiscal year ended

March 31, 2015

March 31, 2016
11,35012,785Gain on bargain purchase

6,596

–

Total extraordinary income

17,947

12,785

1,281

2,299

Extraordinary losses
Loss on sales and retirement of non-current assets

1,281

2,299

Profit before income taxes

Total extraordinary losses

1,578,813

1,983,722

Income taxes - current
Income taxes - deferred

596,167
1,398

635,472(25,320)

Total income taxes

597,565

610,151

Profit981,247

1,373,570

Profit attributable to non-controlling interests

129,166

242,294

Profit attributable to owners of parent

852,080

1,131,275

6

Consolidated statements of comprehensive income(Thousands of yen)

ProfitOther comprehensive income

Fiscal year ended

Fiscal year ended

March 31, 2015March 31, 2016

981,247

1,373,570

Valuation difference on available-for-sale securities
Foreign currency translation adjustment

511,081657,225(28,236)(948,812)

Remeasurements of defined benefit plans, net of tax

43,007(28,081)

1,211,314(1,005,131)

Comprehensive income

Total other comprehensive income

2,192,562

368,439

Comprehensive income attributable toComprehensive income attributable to owners of parent

1,927,561

322,055

265,000

46,383Comprehensive income attributable to non-controllinginterests

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

3,698,680

Retained earnings

2,105,771

1,606,017

Cumulative effects of changes
in accounting policies
Restated balance

Treasury shares

Total shareholders'equity(1,552,339)

155,192
3,698,680

2,105,771

5,858,129
155,192

1,761,210(1,552,339)

6,013,322

Changes of items during period
Dividends of surplus(167,119)(167,119)

Profit attributable to ownersof parent

852,080

852,080

Purchase of treasury shares
Disposal of treasury shares2(15,939)(15,939)272275

Net changes of items otherthan shareholders' equity–

Total changes of items during
periodBalance at end of current period–

2684,961(15,666)

669,297

3,698,680

2,105,774

2,446,171(1,568,006)

6,682,619

Accumulated other comprehensive income

Balance at beginning of current
periodValuationdifference on
available-for-salesecurities

Foreign currencytranslation
adjustment

Remeasurementsof defined benefit
plans

Total accumulated
othercomprehensive
income347,973270,142(68,923)549,192

Non-controllinginterests

Total net assets

1,693,048

8,100,370

Cumulative effects of changes
in accounting policies
Restated balance

155,192
347,973

270,142(68,923)549,192

1,693,048

8,255,563

Changes of items during period
Dividends of surplus(167,119)

Profit attributable to ownersof parent

852,080

Purchase of treasury shares(15,939)

Disposal of treasury shares275

Net changes of items otherthan shareholders' equity

511,081516,215

48,183

1,075,480

226,464

1,301,944

Total changes of items during
period511,081

516,215

48,183

1,075,480

226,464

1,971,242

Balance at end of current period

859,055

786,357(20,739)

1,624,673

1,919,512

10,226,805

8

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

3,698,680

Retained earnings

2,105,774

Total shareholders'equityTreasury shares

2,446,171(1,568,006)

Cumulative effects of changes
in accounting policies
Restated balance

6,682,619–

3,698,680

2,105,774

2,446,171(1,568,006)

6,682,619

Changes of items during period
Dividends of surplus(222,472)(222,472)

Profit attributable to ownersof parent

1,131,275

1,131,275

Purchase of treasury shares
Disposal of treasury shares

134(2,443)(2,443)

119

253

Net changes of items otherthan shareholders' equity–

Total changes of items during
periodBalance at end of current period–

134

908,803(2,323)906,614

3,698,680

2,105,908

3,354,975(1,570,329)

7,589,234

Accumulated other comprehensive income

Balance at beginning of current
periodValuationdifference on
available-for-salesecurities

Foreign currencytranslation
adjustment

Remeasurementsof defined benefit
plans

Total accumulated
othercomprehensive
income859,055

786,357(20,739)

1,624,673

Non-controllinginterests

Total net assets

1,919,512

10,226,805

Cumulative effects of changes
in accounting policies
Restated balance–
859,055

786,357(20,739)

1,624,673

1,919,512

10,226,805

Changes of items during period
Dividends of surplus(222,472)

Profit attributable to ownersof parent

1,131,275

Purchase of treasury shares(2,443)

Disposal of treasury shares253

Net changes of items otherthan shareholders' equity(28,236)(751,679)(29,304)(809,220)(78,721)(887,941)

Total changes of items during
period(28,236)(751,679)(29,304)(809,220)(78,721)

18,672

Balance at end of current period

830,818

34,678(50,044)815,453

1,840,791

10,245,478

9Consolidated statements of cash flows(Thousands of yen)

Cash flows from operating activities
Profit before income taxes

Fiscal year ended

Fiscal year ended

March 31, 2015

March 31, 2016

1,578,813

1,983,722

Depreciation
Amortization of goodwill

778,81476,922782,073
62,050Gain on bargain purchase
Increase (decrease) in net defined benefit liability(6,596)30,882–
19,430

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

61,857
87,112

11,54756,616

Interest and dividend income
Interest expenses(104,423)
89,599(146,048)
74,634Foreign exchange losses (gains)
Loss (gain) on sales and retirement of property, plant and(27,111)

14,605equipment
Decrease (increase) in notes and accounts receivable - trade(10,099)(10,486)(698,711)(1,513,133)

Decrease (increase) in inventories
Increase (decrease) in notes and accounts payable - trade(325,609)
1,066,395(1,369,317)
305,038

Other, net

236,788(77,140)

Subtotal

2,834,632

193,591

Interest and dividend income received

104,428

146,048

Interest expenses paid
Income taxes (paid) refund(89,258)(687,036)(75,344)(556,137)

(294)

(620)

2,162,471(292,462)

Payments into time deposits
Proceeds from withdrawal of time deposits(151,490)–(151,293)
84,390Purchase of property, plant and equipment
Proceeds from sales of property, plant and equipment(482,369)
11,475(744,082)
14,639Purchase of intangible assets
Purchase of investment securities(4,500)(2,195)(960)(58,200)

Purchase of shares of subsidiaries
Other, net(360)(17,193)–(19,578)

Net cash provided by (used in) investing activities(646,633)(875,084)

Other, net
Net cash provided by (used in) operating activities
Cash flows from investing activities

Cash flows from financing activities
Increase in short-term loans payable

10,128,389

11,156,526

Decrease in short-term loans payable
Proceeds from long-term loans payable(10,803,581)
241,336(9,063,217)–

Repayments of long-term loans payable
Repayments of lease obligations(250,000)(43,240)(301,229)(41,723)

Purchase of treasury shares
Cash dividends paid

(15,942)(167,119)(2,443)(222,472)

Dividends paid to non-controlling interests
Other, net(61,117)278(123,226)
253

Net cash provided by (used in) financing activities(970,997)

1,402,468

Effect of exchange rate change on cash and cash equivalents

82,324(232,214)

Net increase (decrease) in cash and cash equivalents

627,164

2,706

Cash and cash equivalents at beginning of period

1,897,332

2,524,497

Cash and cash equivalents at end of period

2,524,497

2,527,20310