Consolidated Quarterly Financial Results
for the Nine Months Ended December 31, 2018 [Japanese GAAP]
February 12, 2019
Stock Exchange Listing: Tokyo
URL: http://www.hokuetsucorp.com

Company:
Hokuetsu Corporation
Stock Code:
3865
Representative: Sekio Kishimoto, President & CEO
Contact:
Tomonari Maruyama, General Manager, Accounting Department
Scheduled date of filing quarterly report:
February 13, 2019
Scheduled date of commencement of dividend payments:–Supplementary documents for quarterly results:
None
Quarterly results briefing:
None

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

1. Consolidated Business Results for the Nine Months Ended December 31, 2018
(April 1, 2018 through December 31, 2018)(1) Consolidated results of operations
Net sales

Operating income(% change from the previous corresponding period)
Net income attributable toOrdinary income
owners of parent company
Million yen%
Million yen%

Million yen%
Million yen%
Nine months ended
206,1212.7
4,307(47.2)
6,150(43.0)
December 31, 2018
Nine months ended
200,667
2.2
8,151
(8.1)
10,79510.0
December 31, 2017
(Note) Comprehensive income:Nine months ended December 31, 2018: -1,305 million yen (–%)
Nine months ended December 31, 2017: 10,785 million yen (89.4%)
Basic earnings per share Diluted earnings per share
Yen
Yen
Nine months ended
19.34
18.94
December 31, 2018
Nine months ended
36.94
36.08
December 31, 2017

3,654

(47.6)

6,975

0.3(2) Consolidated financial position
Total assets
Net assets
Equity ratio
Million yen
Million yen%
As of December 31, 2018371,160
188,284
50.5
As of March 31, 2018
366,447
191,977
52.2(Reference) Equity:
As of December 31, 2018:
187,504 million yen
As of March 31, 2018:
191,154 million yen

2. Dividends
End of 1Q

End of 2Q

Annual dividend per share
End of 3Q
YenYenYen
Fiscal year ended–
6.00
March 31, 2018
Fiscal year ending–
6.00
March 31, 2019
Fiscal year ending
March 31, 2019 (forecast)(Note) Revisions to dividend forecasts published most recently: None–

Year-end

Total
Yen

Yen

6.00

12.00

6.00

12.00

–

3. Forecast of Consolidated Financial Results for the Fiscal Year Ending March 31, 2019
(April 1, 2018 through March 31, 2019)(% change from the previous corresponding period)
Net sales

Operating income

Net income attributable to Basic earnings
owners of parent company
per share%
Million yen%
Yen(6.5)
8,500(17.7)
44.98

Ordinary income

Million yen%
Million yen%
Million yen
Full year
275,000
2.2
10,000(12.4)
13,000(Note) Revisions to business forecasts published most recently: None-1-* Notes(1) Changes in significant subsidiaries during the nine months ended December 31, 2018 (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: Yes(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 (treasury stock included):
As of December 31, 2018
209,263,814 shares(ii) Number of treasury stock:
As of December 31, 2018
20,239,700 shares(iii) Average number of shares during period:
Nine months ended December 31, 2018 188,997,630 shares

As of March 31, 2018

209,263,814 shares

As of March 31, 2018

20,298,290 shares

Nine months ended December 31, 2017 188,817,769 shares* Consolidated Quarterly Financial Results are exempted from quarterly review performed by a certified public
accountant or an audit corporation.
* Explanation regarding appropriate use of business forecasts and other special instructions(Caution regarding forward-looking statements)
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 for the NineMonth Period; (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 for the Nine-Month Period(1) Qualitative Information Concerning Consolidated Operating Results
During the current nine months, due primarily to a steep rise in raw fuel prices despite increased revenues as a result ofstrong sales at overseas subsidiaries, net sales amounted to 206,121 million yen (up 2.7% year on year) but operating income
decreased to 4,307 million yen (down 47.2% year on year). Ordinary income fell to 6,150 million yen (down 43.0% year onyear) and net income attributable to owners of parent company came to 3,654 million yen (down 47.6% year on year).
(2) Qualitative Information Concerning Consolidated Financial Position
Total assets increased 4,712 million yen from the end of the previous fiscal year, to 371,160 million yen. Major factors
included increases in cash and deposits of 1,414 million yen, notes and accounts receivable - trade of 2,603 million yen, andraw materials and supplies of 2,706 million yen, offsetting a decrease in property, plant and equipment of 2,385 million yen
due mainly to depreciation.
Total liabilities rose 8,404 million yen from the end of the previous fiscal year, to 182,875 million yen. This was primarily
due to an increase in interest-bearing debt of 9,091 million yen.
Net assets declined 3,692 million yen from the end of the previous fiscal year, to 188,284 million yen. This was chieflyattributable to decreases in unrealized holding gains on available-for-sale securities, net of taxes, of 3,409 million yen, andforeign currency translation adjustment of 1,297 million yen, offsetting an increase in retained earnings of 1,283 million yen
mainly due to income attributable to owners of parent company.
(3) Qualitative Information Concerning Consolidated Earnings Forecasts
The full-year consolidated earnings forecasts announced on May 14, 2018 remain unchanged.

-3-2. Consolidated Quarterly Financial Statements and Key Notes(1) Quarterly Consolidated Balance Sheet(Million yen)
As of March 31, 2018
(Assets)
Current assets
Cash and deposits
Notes and accounts receivable - trade
Electronically recorded monetary claims
Merchandise 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 December 31, 2018

14,31569,178
5,954
23,5002,030
23,6596,033(82)

15,73071,782
6,751
22,842
1,880
26,3656,730(67)144,590152,017

82,098(49,456)

83,746(50,395)

32,64133,350418,924(342,140)

426,535(351,392)

76,78375,143

Other, net

30,54729,093

Total property, plant and equipment

139,972

137,587

3,091

3,039

71,7259,505(2,437)71,501
9,449(2,435)Intangible assets
Investments and other assets
Investments in securities
Other
Allowance for doubtful accounts
Total investments and other assets
Total non-current assets
Total assets-4-78,793

78,516

221,857

219,143

366,447

371,160

(Million yen)
As of March 31, 2018
(Liabilities)
Current liabilities
Notes and accounts payable - trade
Electronically recorded obligations
Short-term debt
Commercial papers
Current portion of bonds
Income taxes payable
Provision
Other

As of December 31, 2018

21,8407,118
21,941
11,00010,0001,801
3,277
13,852

21,656
7,022
22,90315,00010,0001,517
2,217
15,812

90,832

96,13020,00045,064977
11,7722,950
2,873

20,00049,170
1,595
12,071
2,697
1,210

83,63886,745

Total liabilities

174,470

182,875

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

42,02045,524
98,814(9,976)42,02045,293100,097(9,946)

176,383

177,465

Accumulated other comprehensive income
Unrealized holding gains on securities, net of taxes
Unrealized losses on hedging derivatives, net of taxes
Foreign currency translation adjustment
Remeasurements of retirement benefit, net of taxes

11,360(21)
3,064
367

7,951
5
1,767
314

Total accumulated other comprehensive income

14,77010,038121701

106674

191,977

188,284

366,447

371,160

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

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(Nine-month period)(Million yen)
For the nine-month ended
December 31, 2017

For the nine-month ended
December 31, 2018

Net sales
Cost of sales

200,667
161,833

206,121
171,157

Gross profit

38,83334,964

Selling, general and administrative expenses

30,68130,656

Operating income

8,151

4,307

Non-operating income
Interest income
Dividends income
Equity in income of affiliates
Other
Total non-operating income

55
933
1,238
1,733
3,961

58
923
771
1,851
3,604

Non-operating expenses
Interest expenses
Environmental expenses
Other
Total non-operating expenses

490
434
392
1,317

596
679
485
1,761

Ordinary income

10,795

6,150

259
46–
30–
138
1475

222
0256–
87
50
1617

2,378–
161
35
540955534834––Extraordinary income
Gain on sales of property, plant and equipment
Gain on sales of investment in securities
Gain on change in equity of affiliates
Gain on liquidation of subsidiaries and associates
Gain on transfer of businessInsurance income
Other
Total extraordinary income
Extraordinary losses
Loss on sales and retirement of property, plant and equipment
Impairment lossLoss on disaster
Loss on reduction of property, plant and equipment
Loss on sales of shares of subsidiaries and associates
Other
Total extraordinary losses

2,630

1,343

Income before income taxes

8,640

5,424

Income taxes - current
Income taxes - deferred

1,501
26

2,512(565)

Total income taxes

1,527

1,946

Net income

7,112

3,478

137(176)

6,975

3,654

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

Quarterly Consolidated Statements of Comprehensive Income(Nine-month period)(Million yen)
For the nine-month ended
December 31, 2017
Net income
Other comprehensive income
Unrealized holding gains (loss) on securities, net of taxes
Unrealized gains (loss) on hedging derivatives, net of taxes
Foreign currency translation adjustment
Remeasurements of retirement benefit, net of taxes
Share of other comprehensive income of associates accounted
for using equity method
Total other comprehensive income
Comprehensive income
Comprehensive income attributable to owners of parent
company
Comprehensive income attributable to non-controlling interests-7-

For the nine-month ended
December 31, 2018

7,1123,478

1,960
38
758
(53)

(2,938)26(1,349)
(89)

969

(433)

3,673

(4,784)

10,785(1,305)

10,637(1,077)

148

(228)

(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.
(Changes in Accounting Policies)
Overseas consolidated subsidiaries that have adopted IFRSs commenced the application of IFRS 15: Revenue from Contracts withCustomers in the first quarter of the current fiscal year. The impact of the application of these accounting standards on the Company’s
consolidated quarterly financial statements is immaterial.
(Additional Information)
The Company commenced the application of the Partial Amendments to Accounting Standard for Tax Effect Accounting (ASBJ Statement
No. 28, February 16, 2018) in the first quarter of the current fiscal year; accordingly, the amount of deferred tax assets is presented under“investments and other assets,” and the amount of deferred tax liabilities is presented under “non-current liabilities.”-8-