Consolidated Quarterly Financial Results
for the Three Months Ended June 30, 2017 [Japanese GAAP]
August 10, 2017
Stock Exchange Listing: Tokyo
URL: http://www.hokuetsu-kishu.jp

Company:
Hokuetsu Kishu Paper Co., Ltd.
Stock Code:
3865
Representative: Sekio Kishimoto, President & CEO
Contact:
Tomonari Maruyama, General Manager, Accounting Department
Scheduled date of submission of quarterly report:
August 14, 2017–
Scheduled date of commencement of dividend payments:
Supplementary documents for quarterly results:
NoneNone
Quarterly results briefing:

TEL: +81-3-3245-4500(Figures rounded down to the nearest million yen)

1. Consolidated Business Results for the Three Months Ended June 30, 2017
(April 1, 2017 through June 30, 2017)(1) Consolidated results of operations
Net sales

Three months ended
June 30, 2017
Three months ended
June 30, 2016
(Note) Comprehensive income:(% change from the previous corresponding period)
Net income attributable
Operating income
Ordinary income
to owners of parentcompany
Million yen%
Million yen%
Million yen%

Million yen%

67,196

1.6

3,786

5.9

4,733

109.3

3,827

74.5

66,148

15.3

3,576

176.4

2,261

(17.2)

2,193

20.9

Three months ended June 30, 2017: 3,613 million yen (91.3%)
Three months ended June 30, 2016: 1,889 million yen (-36.3%)
Diluted earnings
Basic earnings per shareper share
YenYenThree months ended
June 30, 2017
Three months ended
June 30, 2016

20.30

20.15

11.64

11.37

(2) Consolidated financial position

As of June 30, 2017
As of March 31, 2017
(Reference) Equity:

Total assets
Net assets
Equity ratio
Million yen
Million yen%
364,366
183,83350.2
362,205
181,034
49.8
As of June 30, 2017:
183,041 million yenAs of March 31, 2017:180,294 million yen

2. Dividends
End of 1Q
Yen

Annual dividend per share
End of 2Q
End of 3Q
Yen
Yen

Fiscal year ended–
6.00
March 31, 2017
Fiscal year ending–March 31, 2018
Fiscal year ending
6.00
March 31, 2018 (forecast)(Note) Revisions to dividend forecasts published most recently: None

Year-endTotal
Yen

Yen–

6.00

12.00

–

6.00

12.00

3. Forecast of Consolidated Financial Results for the Fiscal Year Ending March 31, 2018
(April 1, 2017 through March 31, 2018)(% change from the previous corresponding period)
Net sales

Operating income

Million yen% Million yen%
First six months
136,000
2.84,000 (35.4)
Full year
280,000
6.7
12,000(7.0)(Note) Revisions to business forecasts published most recently: None-1-

Net income attributableBasic
to owners of parent earnings percompany
share% Million yen%
Yen
27.7
3,500
6.8
18.55
13.8
11,0006.0
58.26

Ordinary income
Million yen
5,500
16,000* Notes(1) Changes in significant subsidiaries during the three months ended June 30, 2017 (changes in specified subsidiaries accompanying changes
in the scope of consolidation): None
(2) Application of accounting procedures specific to preparation of the consolidated quarterly financial statements: None
(3) Changes in accounting policies, accounting estimates and restatement of prior period financial statements(i) Changes in accounting policies due to revision of accounting standards: None(ii) Changes in accounting policies other than (i): None(iii) Changes in accounting estimates: None(iv) Restatement of prior period financial statements: None
(4) Shares outstanding (common stock)(i) Number of shares outstanding at the end of period (treasury stock included):
As of June 30, 2017
209,263,814 shares
As of March 31, 2017(ii) Number of treasury stock at the end of period:
As of June 30, 2017
20,351,531 shares
As of March 31, 2017(iii) Average number of shares during period:
Three months ended June 30, 2017 188,581,784 shares
Three months ended June 30, 2016

209,263,814 shares
20,794,944 shares
188,409,085 shares* The quarterly business result report is exempt from the quarterly review procedure based on the Financial
Instruments and Exchange Act.
* Explanation regarding appropriate use of business forecasts and other special instructions
The forward-looking statements such as forecasts of financial results contained in this material are based on information available to theCompany at the time of the publication of this document and certain assumptions that the Company considers to be reasonable, and may differ
materially from the actual results due to various factors. Refer to “1. Qualitative Information on Consolidated Operating Results, etc. for theFirst Quarter; (3) Qualitative Information Concerning Consolidated Earnings Forecasts” on page 3 of the accompanying materials for mattersrelated to results forecasts.

* This document is an excerpt translation of the original in Japanese and is for reference purposes only. In case ofany discrepancy between this document and the original in Japanese, the latter shall take precedence.

-2-1. Qualitative Information on Consolidated Operating Results, etc. for the First Quarter(1) Qualitative Information Concerning Consolidated Operating Results
During the three months under review, net sales amounted to 67,196 million yen (up 1.6% year on year) and operating income increased
to 3,786 million yen (up 5.9% year on year), due primarily to higher sales and improved earnings at overseas subsidiaries. Ordinary income
rose to 4,733 million yen (up 109.3% year on year) and net income attributable to owners of parent company came to 3,827 million yen(up 74.5% year on year).

(2) Qualitative Information Concerning Consolidated Financial Position
Total assets increased 2,161 million yen from the end of the previous fiscal year, to 364,366 million yen. Major factors included increases
in merchandise and finished goods of 3,187 million yen and investment securities of 1,720 million yen, chiefly reflecting rising shareprices, as well as a fall in property, plant and equipment of 2,626 million yen due to depreciation.
Total liabilities declined 636 million yen from the end of the previous fiscal year, to 180,533 million yen. This was attributable mainly todecreases in provisions of 1,450 million yen and interest-bearing debt of 346 million yen, as well as an increase in notes and accounts
payable – trade of 1,208 million yen.
Net assets rose 2,798 million yen from the end of the previous fiscal year, to 183,833 million yen, chiefly reflecting an increase in retained
earnings of 2,696 million yen due mainly to net income attributable to owners of parent company.

(3) Qualitative Information Concerning Consolidated Earnings Forecasts
The full-year consolidated earnings forecasts announced on May 12, 2017 remain unchanged.

-3-2. Consolidated Quarterly Financial Statements and Key Notes(1) Quarterly Consolidated Balance Sheet(Million yen)
(Assets)
Current assets
Cash and deposits
Notes and accounts receivable - trade
Electronically recorded monetary claimsMerchandise and finished goods
Work in process
Raw materials and supplies
Other
Allowance for doubtful accounts
Total current assets
Non-current assets
Property, plant and equipment
Buildings and structures
Accumulated depreciation
Buildings and structures, net
Machinery, vehicles, tools, furniture and fixtures
Accumulated depreciation
Machinery, vehicles, tools, furniture and fixtures, net

As of March 31, 2017

As of June 30, 201719,49464,1503,858
20,5101,976
22,402
7,254(48)

19,252
61,765
4,345
23,697
2,684
23,874
7,236(48)

139,598

142,808

80,360(47,394)

80,664(47,874)

32,96632,789410,774(328,827)

412,125(332,094)

81,94680,030

Other, net

29,46828,934

Total property, plant and equipment

144,381

141,754

3,172

3,020

68,906
8,606(2,460)70,6268,616(2,459)Intangible assets
Investments and other assets
Investments in securities
OtherAllowance for doubtful accounts
Total investments and other assets
Total non-current assets
Total assets-4-75,052

76,783

222,606

221,558

362,205

364,366

(Million yen)
As of March 31, 2017

As of June 30, 201720,1497,737
26,823
11,0001,334
3,109
13,40921,358
7,458
27,90011,000653
1,733
13,83883,564

83,94230,00048,540840
13,6562,056
2,511

30,00047,181766
13,693
2,039
2,909

97,60596,591

Total liabilities

181,170

180,533

Net assets
Shareholders’ equity
Capital stock
Capital surplus
Retained earnings
Treasury stock

42,02045,39690,752
10,160)(42,020
45,53493,448(9,987)

168,010

171,015

10,534

11,630

(56)
1,595
210

(23)
227
191

12,284

12,026

140
600

146
644

181,034183,833

362,205

364,366(Liabilities)
Current liabilities
Notes and accounts payable - trade
Electronically recorded obligations
Short-term loans payable
Commercial papers
Income taxes payable
Provision
Other
Total current liabilities
Non-current liabilities
Bonds payable
Long-term debt, less current maturities
Provision
Liability for defined benefit
Asset retirement obligations
Other
Total non-current liabilities

Total shareholders’ equity
Accumulated other comprehensive income
Unrealized holding gains on available-for-sale securities, netof taxes
Unrealized losses on hedging derivatives, net of taxes
Foreign currency translation adjustment
Accumulated adjustments for retirement benefit, net of taxes
Total accumulated other comprehensive income
Subscription rights to shares
Non-controlling interests
Total net assets
Total liabilities and net assets-5-(2) Quarterly Consolidated Statements of Income and Quarterly Consolidated Statements of Comprehensive Income
Quarterly Consolidated Statements of Income(First three-month period)(Million yen)
For the three-month ended June30, 2016

For the three-month ended June30, 2017

Net sales
Cost of sales

66,14852,512

67,19653,010Gross profit

13,63614,186

Selling, general and administrative expenses

10,05910,399Operating income

3,576

3,786

Non-operating income
Interest income
Dividends income
Equity in income of affiliates
Foreign currency exchange gains
OthersTotal non-operating income

13488
371
–
271
1,145

15472
165
313
253
1,220

Non-operating expenses
Interest expenses
Foreign currency exchange loss
OthersTotal non-operating expenses

164
1,927
368
2,460

156–
117
273

Ordinary income

2,261

4,733

40–
5199
46
20
266

191
–
218110–Total extraordinary losses

193

191

Income before income taxes

2,073

4,807

Income taxes - current
Income taxes - deferred

239
(355)

539
387

Extraordinary income
Gain on sales of property, plant and equipment
Gain on sales of investment in securities
Insurance income
Total extraordinary income
Extraordinary losses
Loss on sales and retirement of property, plant and equipment
Loss on reduction of property, plant and equipment
Other

Total income taxes

(116)

926

Net income

2,189

3,881

Net income (loss) attributable to non-controlling interests
Net income attributable to owners of parent company-6-(4)

53

2,193

3,827

Quarterly Consolidated Statements of Comprehensive Income(First three-month period)(Million yen)
For the three-month ended June30, 2016
Net income
Other comprehensive income
Unrealized holding gains (loss) on available-for-sale securities,
net of taxes
Unrealized gains (loss) on hedging derivatives, net of taxes
Foreign currency translation adjustment
Adjustments for retirement benefit, net of taxes
Share of other comprehensive income of associates accounted
for using equity method
Total other comprehensive income
Comprehensive incomeComprehensive income attributable to owners of parentcompany
Comprehensive income attributable to non-controlling interests-7-

For the three-month ended June30, 2017

2,189

3,881(660)

860

(229)
589
(22)

33(1,378)
(19)

22

235

(300)

(268)

1,889

3,613

1,925

3,568

(36)

44

(3) Notes to Quarterly Consolidated Financial Statements(Notes to Going Concern Assumption)
Not applicable.
(Notes on Any Significant Change in the Value of Shareholders’ Equity)
Not applicable.

-8-