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 December 31, 2018
(Based on Japanese GAAP)
February 13, 2019
Company name:

EBARA JITSUGYO CO., LTD.

Stock exchange listing: Tokyo
Stock code:
6328

URL

https://www.ejk.co.jp/Representative:

Chairman & President
HISASHI SUZUKI
Senior Corporate Officer, Head of Corporate
Inquiries:
SHUJI OHNO
Planning & Strategy Office
Scheduled date of ordinary general meeting of shareholders:March 27, 2019
Scheduled date to file Securities Report:
Scheduled date to commence dividend payments:

March 27, 2019
March 28, 2019

Preparation of supplementary material on financial results:
Holding of financial results meeting:

Yes
Yes

TEL

03-5565-2885(for the press and analysts)(Amounts less than one million yen are rounded down)
1. Consolidated financial results for the year ended December 31, 2018 (from January 1, 2018 to December 31, 2018)(1) Consolidated operating results
Net salesYear ended December 31, 2018Year ended December 31, 2017

Operating profit

Millions of yen
29,295
26,110% Millions of yen
12.2
2,139(6.0)
1,717

Earnings per share

Diluted earnings pershare

Profit attributable toOrdinary profit/total Operating profit/net
owners ofassets
sales
parent/equity
Yen%%%
–
12.7
8.6
7.3
–
11.6
7.5
6.6

Yen
241.09201.74

Year ended December 31, 2018Year ended December 31, 2017

%24.6
33.1

Percentages indicate year-on-year changes
Profit attributable toOrdinary profit
owners of parentMillions of yen% Millions of yen%
2,252
21.8
1,600
18.3
1,848
30.1
1,353
31.4

(2) Consolidated financial position
Total assets
As of December 31, 2018
As of December 31, 2017

Net assets

Equity ratio

Millions of yen
26,66225,990Millions of yen
12,52012,769Cash flows fromoperating activities
Millions of yen
2,946
1,285

Cash flows frominvesting activities
Millions of yen
8676

Net assets per share%
47.0
49.1

Yen
1,899.35
1,903.88(3) Consolidated cash flows

Year ended December 31, 2018Year ended December 31, 2017

Cash flows fromCash and cash equivalents
at end of period
financing activities
Millions of yen
Millions of yen
(628)
6,165
(302)
3,760

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

Year ended December 31, 2017
Year ended December 31, 2018Year ending December 31, 2019
(Forecast)of dividends
Total cash
Dividend payout Ratio
to net assets
dividends (Total) ratio (Consolidated) (Consolidated)

Total

Yen

YenYenYen

YenMillions of yen%%

––

22.50
25.00

––

27.50
35.0050.00
60.00

335395

24.8
24.9

2.9
3.2

–

30.00

–

30.00

60.00

124.0

3. Forecast of consolidated financial results for the year ending December 31, 2019 (from January 1, 2019 to December 31, 2019)
Net sales
Millions of yen
Six months ending
June 30, 2019
Full year

Percentages indicate year-on-year changes
Profit attributable toOperating profit
Ordinary profit
Earnings per shareowners of parent% Millions of yen% Millions of yen% Millions of yen%Yen

15,300(4.9)

1,640(6.2)

1,700(5.6)

1,210(4.3)

183.5529,000(1.0)

2,180

1.9

2,310

2.6

1,650

3.1

250.304. Notes(1) Changes in significant subsidiaries during the year ended December 31, 2018(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:No
Changes in accounting policies due to other reasons:
Changes in accounting estimates:

NoNo

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 December 31, 2018

6,715,000 shares As of December 31, 2017

6,715,000 shares

122,867 shares As of December 31, 2017

7,741 shares

Number of treasury shares at the end of the period
As of December 31, 2018
Average number of shares during the period
Year ended December 31, 2018

6,638,487 shares Year ended December 31, 2017

26,707,292 shares

Consolidated financial statements
Consolidated balance sheets(Millions of yen)
As of December 31, 2017

As of December 31, 2018

AssetsCurrent assets
Cash and deposits
Notes and accounts receivable - trade

3,930
9,573

6,170
10,486

Securities
Merchandise and finished goods

100739–779

Work in process
Costs on uncompleted construction contracts

201
673

217
592

Raw materials and supplies
Deferred tax assets

210
63

212
84

Other
Allowance for doubtful accounts

644
(1)

96
(1)

16,135

18,6383,011(1,588)3,170(1,675)

Buildings and structures, net

1,422

1,494

Machinery, equipment and vehicles
Accumulated depreciation

125(79)147(94)4653

569(459)612(500)

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

Machinery, equipment and vehicles, net
Tools, furniture and fixtures
Accumulated depreciation
Tools, furniture and fixtures, net
Land
OtherAccumulated depreciation
Other, net

109

111

1,420
72

1,360
3(5)

(3)

66

0

3,066

3,020

Intangible assets
Investments and other assets

3778

Investment securities
Insurance funds

4,827
1,145

3,160933

Real estate for investment, net
Deferred tax assets

634
4692
6

Other
Allowance for doubtful accounts

248(108)

240
(107)

Total investments and other assets

6,752

4,925

Total property, plant and equipment

Total non-current assets
Total assets

3

9,855

8,024

25,99026,662

(Millions of yen)
As of December 31, 2017

As of December 31, 2018

Liabilities
Current liabilities
Notes and accounts payable - trade

8,040

9,454

Short-term loans payable
Income taxes payable

1,090
397

1,090
443

Accrued consumption taxes
Advances received

15
1,619

152
1,391

2619

115
628

Total current liabilities

11,784

13,276

Non-current liabilities
Deferred tax liabilities

Provision for loss on construction contracts
Other

1,058

495

Provision for directors' retirement benefits
Net defined benefit liability

187
120

158
139

Other

70

72

Total non-current liabilities

1,436

866

13,22114,142

Capital stock
Capital surplus

1,001
831

1,001
831

Retained earnings
Treasury shares

8,661
(12)

9,912
(291)

Total shareholders' equity

10,481

11,454

2,396

1,138

Total liabilities
Net assets
Shareholders' equity

Accumulated other comprehensive income
Valuation difference on available-for-sale securities
Remeasurements of defined benefit plans

(108)

(72)

Total accumulated other comprehensive income

2,288

1,066

12,76912,52025,99026,662

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
December 31, 2017

Fiscal year ended
December 31, 2018

Net sales
Net sales of finished goods and construction sales
Net sales of goods

19,5656,545

22,955
6,340

Total net sales

26,11029,295

13,682

16,547

Cost of sales
Cost of finished goods sold and construction sales
Cost of goods sold

5,194

5,190

Total cost of sales

18,876

21,738Gross profit-finished goods and construction sales
Gross profit - merchandise

5,883
1,351

6,408
1,149

Total gross profit

7,234

7,557

Selling, general and administrative expenses

5,516

5,417

Operating profit

1,717

2,139

Interest income
Dividend income

273

179

Rent of real estate for investment
Insurance income

88093
12

Insurance premiums refunded cancellation
Other–29

718

Total non-operating income

194

211

Gross profit

Non-operating income

Non-operating expenses
Interest expenses

68Rent expenses on real estates
Foreign exchange losses

39
1242
6

Loss on insurance cancellation
Other2
135
562

99

Ordinary profit

Total non-operating expenses

1,848

2,252

Profit before income taxes

1,848

2,252

538

699

Income taxes - current
Income taxes - deferred

(42)

(47)

Total income taxes

495

651

Profit

1,353

1,600

Profit attributable to owners of parent

1,3531,600

5Consolidated statements of comprehensive income(Millions of yen)

ProfitOther comprehensive income

Fiscal year ended

Fiscal year ended

December 31, 2017

December 31, 2018

1,353

1,600

Valuation difference on available-for-sale securities
Remeasurements of defined benefit plans, net of tax

1,085
8(1,258)
36

Total other comprehensive income

1,094(1,221)

2,447

378

2,447

378–

–

Comprehensive income
Comprehensive income attributable toComprehensive income attributable to owners of parent
Comprehensive income attributable to non-controllinginterests6Consolidated statements of changes in equity
Fiscal year ended December 31, 2017
(Millions of yen)
Shareholders' equity
Capital stock
Balance at beginning of current
periodCapital surplus

1,001

Retained earnings

831

Total shareholders'equityTreasury shares

7,609

(12)

9,430

Changes of items during period
Dividends of surplus

(301)

(301)

Profit attributable to owners ofparent

1,353

1,353

Purchase of treasury shares

(0)

(0)

Net changes of items otherthan shareholders' equity
Total changes of items during
periodBalance at end of current period––1,051

(0)

1,051

1,001

831

8,661

(12)

10,481

Accumulated other comprehensive income

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

Remeasurements ofdefined benefit plans

Total accumulated
other comprehensive
income

1,311

(117)

1,193

Total net assets

10,624

Changes of items during period
Dividends of surplus(301)

Profit attributable to owners ofparent

1,353

Purchase of treasury shares(0)

Net changes of items otherthan shareholders' equity

1,085

8

1,094

1,094

Total changes of items duringperiod

1,085

8

1,094

2,145

Balance at end of current period

2,396

(108)

2,288

12,7697Fiscal year ended December 31, 2018
(Millions of yen)
Shareholders' equity
Capital stock
Balance at beginning of current
periodCapital surplus

1,001

Retained earnings

831

Treasury shares

8,661

(12)

Total shareholders'equity
10,481

Changes of items during period
Dividends of surplus

(349)

(349)

Profit attributable to owners ofparent

1,600

1,600

Purchase of treasury shares

(278)

(278)

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

1,251(278)

972

1,001

831

9,912(291)

11,454

Accumulated other comprehensive income

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

Remeasurements ofdefined benefit plans

Total accumulated
other comprehensive
income2,396(108)2,288

Total net assets

12,769Changes of items during period
Dividends of surplus(349)

Profit attributable to owners ofparent

1,600

Purchase of treasury shares(278)

Net changes of items otherthan shareholders' equity(1,258)36(1,221)(1,221)

Total changes of items during
period(1,258)36(1,221)(249)

Balance at end of current period

1,138(72)

1,066

12,5208Consolidated statements of cash flows(Millions of yen)

Cash flows from operating activities
Profit before income taxes

Fiscal year ended

Fiscal year ended

December 31, 2017

December 31, 2018

1,848

2,252

Depreciation
Increase (decrease) in allowance for doubtful accounts

213
(0)

184(0)

Increase (decrease) in provision for loss on construction
contracts

(12)

112

5771Increase (decrease) in net defined benefit liability
Increase (decrease) in provision for directors' retirement
benefits
Interest and dividend income

–(28)

(76)

(80)

Interest expenses
Insurance income

6(0)

8(12)

Loss (gain) on cancellation of insurance contract
Decrease (increase) in notes and accounts receivable - trade

2199

27(913)

Decrease (increase) in inventories
Increase (decrease) in notes and accounts payable - trade

(121)
(631)

23
1,413

Increase (decrease) in advances received
Decrease/increase in consumption taxes receivable/payable

512(209)

(227)
155

Other, net

(252)

518

Subtotal

1,537

3,505

Interest and dividend income received

74

78

Proceeds from insurance income
Interest expenses paid

0(6)

12(8)

Income taxes paid

(319)

(642)

Net cash provided by (used in) operating activities

1,285

2,946

315
(191)

166(180)

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

11(5)

–
(50)

Purchase of investment securities
Proceeds from sales of investment securities(42)
3(248)–

Proceeds from redemption of investment securities
Proceeds from cancellation of insurance funds–51202
224

Collection of loans receivable
Other, net

24(88)

0(27)Net cash provided by (used in) investing activities

7686

Cash flows from investing activities
Net decrease (increase) in forced deposits
Purchase of property, plant and equipment

9

(Millions of yen)
Fiscal year ended

Fiscal year ended

December 31, 2017

December 31, 2018

Cash flows from financing activities
Cash dividends paid

(301)

(349)

Purchase of treasury shares
Other, net

(0)
(0)

(278)
(0)

(302)

(628)

Net increase (decrease) in cash and cash equivalents

Net cash provided by (used in) financing activities

1,060

2,404

Cash and cash equivalents at beginning of period

2,700

3,760

Cash and cash equivalents at end of period

3,760

6,165

10