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, 2018
(Based on Japanese GAAP)May 9, 2018
Company name:

HAMAKYOREX CO., LTD.

Stock exchange listing: Tokyo
Stock code:
9037
Representative:
Inquiries:

URL

http://www.hamakyorex.co.jp

President
Executive officer

Hidenori Osuka
Rikiya Yamada

Scheduled date of ordinary general meeting of shareholders:
Scheduled date to file Securities Report:

June 14, 2018
June 14, 2018

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

June 15, 2018
Yes

Holding of financial results meeting:

Yes

TEL

053-444-0054(Amounts less than one million yen are rounded down)
1. Consolidated financial results for the year ended March 31, 2018 (from April 1, 2017 to March 31, 2018)(1) Consolidated operating results
Percentages indicate year-on-year changes
Profit attributable toNet sales
Operating profitOrdinary profit
owners of parent
Millions of yen% Millions of yen% Millions of yen% Millions of yen%
Year ended March 31, 2018
103,476
4.3
9,029
13.6
9,516
13.0
5,575
10.3
Year ended March 31, 201799,191
4.2
7,948
(2.0)
8,420
1.2
5,053
6.9
Profit attributable toOrdinary profit/total Operating profit/net
owners ofsales
assetsparent/equity
Yen%%%
–
11.3
8.6
8.7
–
11.3
7.8
8.0

Diluted earnings pershare

Earnings per shareYen
293.35265.88Year ended March 31, 2018Year ended March 31, 2017(2) Consolidated financial position

Total assets
As of March 31, 2018
As of March 31, 2017

Net assets

Equity ratio

Millions of yen
112,705
109,725

Millions of yen
58,64153,078Cash flows fromoperating activities
Millions of yen
11,673
11,764

Cash flows frominvesting activities
Millions of yen(4,475)(1,887)

Net assets per share%
45.8
42.6

Yen
2,717.22
2,461.73(3) Consolidated cash flows

Year ended March 31, 2018Year ended March 31, 2017

Cash flows from
Cash and cash equivalents
financing activities
at end of period
Millions of yen
Millions of yen(7,094)
9,012(5,639)8,909

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

Year ended March 31, 2017
Year ended March 31, 2018Year ending March 31, 2019
(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

%%

–
–

20.00
22.50

––

20.00
22.50

40.00
45.00

760
855

15.0
15.3

1.7
1.7

–

26.00

–

26.00

52.00

116.5

3. Forecast of consolidated financial results for the year ending March 31, 2019 (from April 1, 2018 to March 31, 2019)

Net sales

Full year

Millions of yen
108,000

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
4.4
9,600
6.3
10,000
5.1
6,000
7.6
315.704. Notes(1) Changes in significant subsidiaries during the year ended March 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:
Changes in accounting policies due to other reasons:

No
No

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

NoNo(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, 2018

19,012,000 shares As of March 31, 201719,012,000 shares

Number of treasury shares at the end of the period
As of March 31, 2018

6,514 shares As of March 31, 2017

6,382 shares

Average number of shares during the period
Year ended March 31, 2018

19,005,542 shares Year ended March 31, 20172

19,005,634 shares

Consolidated financial statements
Consolidated balance sheets(Millions of yen)
As of March 31, 2017
AssetsCurrent assets
Cash and deposits
Notes and accounts receivable - trade
Merchandise
Supplies
Deferred tax assets
OtherAllowance for doubtful accounts
Total current assets
Non-current assets
Property, plant and equipment
Buildings and structures
Accumulated depreciation
Buildings and structures, net
Machinery and equipment
Accumulated depreciation
Machinery and equipment, net
VehiclesAccumulated depreciation
Vehicles, net

As of March 31, 2018

9,314
12,815
19
97
431
1,019
(30)

9,530
14,362
16
93
496
1,029
(44)

23,66725,48460,999(31,506)

63,432(33,603)

29,492

29,8294,742(2,062)

5,025(2,530)

2,680

2,494

7,595
(7,130)7,440(6,984)465

455

39,614
11,464(4,410)40,53011,375(4,772)

7,053

6,602

4
2,254(1,871)

453
2,312(1,886)

383

426

79,69480,793

Intangible assets
Investments and other assets
Investment securities
Long-term loans receivable
Long-term prepaid expenses
Lease and guarantee deposits
Deferred tax assets
Other
Allowance for doubtful accounts

2,045

2,150

1,420
9134
1,837
510
476
(70)

1,524
23
150
1,623
509
551
(108)

Total investments and other assets

4,318

4,276

Land
Leased assets
Accumulated depreciation
Leased assets, net
Construction in progress
OtherAccumulated depreciation
Other, net
Total property, plant and equipment

Total non-current assets
Total assets

386,058

87,220109,725

112,705

(Millions of yen)
As of March 31, 2017
Liabilities
Current liabilities
Notes and accounts payable - trade
Short-term loans payable
Lease obligations
Income taxes payable
Accrued consumption taxes
Provision for bonuses
Deferred tax liabilities
Provision for directors' bonuses
Reserve for loss on dissolution of employee's pension fund
Other

As of March 31, 2018

6,038
19,221
1,878
1,221
1,337
801
034
6
3,605

6,777
17,294
1,883
1,922804880
034
2
4,602

Total current liabilities

34,14634,201

Non-current liabilities
Long-term loans payable
Lease obligations

9,000
5,656

6,792
5,172

Deferred tax liabilities
Net defined benefit liability
Reserve for loss on dissolution of employee's pension fund
Other

548
5,656
42
1,596

541
5,815
39
1,500

Total non-current liabilities

22,50019,861

Total liabilities

56,64754,063

Net assets
Shareholders' equity
Capital stock
Capital surplus
Retained earnings
Treasury shares

6,547
6,466
33,794
(9)

6,547
6,466
38,562(9)46,79951,566

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

251(264)325(250)

Total accumulated other comprehensive income(12)75Total shareholders' equity

Non-controlling interests

6,291

6,999

Total net assets

53,07858,641

109,725

112,705

Total liabilities and net assets

4Consolidated statements of income and consolidated statements of comprehensive income(Millions of yen)
Fiscal year ended
March 31, 2017

Fiscal year ended
March 31, 2018

Operating revenueOperating cost

99,191
88,839103,476
91,915

Operating gross profit

10,351

11,561

2
546
495
67
23
25
396
844

59
567
527
68
33
23
412
839

2,403

2,531

7,948

9,029

0
29
85
48
122
220
386
150

0
33
91
49
122
177
395
159

1,044

1,031

220
20
263
67

193
25
254
70

572

544

8,420

9,516

39
65

––

105

–

Selling, general and administrative expenses
Provision of allowance for doubtful accounts
Directors' compensations
Salaries and allowances
Provision for bonuses
Provision for directors' bonuses
Retirement benefit expenses
Taxes and dues
Other
Total selling, general and administrative expenses
Operating profit
Non-operating income
Interest income
Dividend income
Rent income
Commission fee
Gain on sales of non-current assets
Subsidy income
Electrical Sales Income
Miscellaneous income
Total non-operating income
Non-operating expenses
Interest expenses
Loss on sales and retirement of non-current assets
Cost of electricity sales
Miscellaneous loss
Total non-operating expenses
Ordinary profit
Extraordinary income
Gain on sales of non-current assets
Gain on sales of investment securities
Total extraordinary income5(Millions of yen)
Fiscal year ended
March 31, 2017
Extraordinary losses
Loss on retirement of non-current assets
Impairment loss
Compensation for damage
Loss on transfer and closing of logistics center
Subsidiary transfer cost

Fiscal year ended
March 31, 2018
47
2651
45
61

60
43–
134
–

232

238

Profit before income taxes

8,293

9,278

Income taxes - current
Income taxes - deferred

2,429
51

2,981(85)

Total income taxes

2,480

2,896

Profit

5,812

6,382

Profit attributable toProfit attributable to owners of parent
Profit attributable to non-controlling interests

5,053
759

5,575807904088
21

Total extraordinary losses

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

131

110

Comprehensive income

Total other comprehensive income

5,943

6,492

Comprehensive income attributable toComprehensive income attributable to owners of parent
Comprehensive income attributable to non-controlling interests

5,161
782

5,663
829

6

Consolidated statements of changes in equity
Fiscal year ended March 31, 2017
(Millions of yen)
Shareholders' equity
Capital stock
Balance at beginning of current periodCapital surplus

6,547

Retained earnings

6,466

Total shareholders'

Treasury shares

29,406equity(9)42,411

Changes of items during period
Dividends of surplus
Profit attributable to owners ofparent

(665)

(665)

5,053

5,053

Purchase of treasury shares

(0)

(0)

Net changes of items other thanshareholders' equity
Total changes of items during period
Balance at end of current period

––

4,388

(0)

4,387

6,547

6,466

33,794(9)

46,799

Accumulated other comprehensive income
Valuation difference
on available-for-salesecuritiesBalance at beginning of current period

Remeasurements ofdefined benefit plans

178(298)

Total accumulated

Non-controllingother comprehensive
incomeinterests

(120)

5,594

Total net assets

47,885

Changes of items during period
Dividends of surplus(665)

Profit attributable to owners ofparent

5,053

Purchase of treasury shares
Net changes of items other thanshareholders' equity

(0)
73

34

107

697

805

Total changes of items during period

7334

107

697

5,193

Balance at end of current period

251(264)

(12)

6,291

53,078

7Fiscal year ended March 31, 2018
(Millions of yen)
Shareholders' equity
Capital stock
Balance at beginning of current period

Capital surplus

6,547

Retained earnings

6,466

Total shareholders'Treasury shares

33,794

equity(9)46,799Changes of items during period
Dividends of surplus
Profit attributable to owners ofparent

(807)

(807)

5,575

5,575

Purchase of treasury shares

(0)

(0)

Net changes of items other thanshareholders' equity
Total changes of items during period
Balance at end of current period

––

4,767

(0)

4,767

6,547

6,466

38,562(9)51,566

Accumulated other comprehensive income
Valuation difference
on available-for-salesecurities
Balance at beginning of current period

Remeasurements ofdefined benefit plans

251

(264)

Total accumulated

Non-controllingother comprehensive
incomeinterests

(12)

6,291

Total net assets

53,078Changes of items during period
Dividends of surplus(807)

Profit attributable to owners ofparent

5,575

Purchase of treasury shares(0)

Net changes of items other thanshareholders' equity

74

1488707796

Total changes of items during period

74

1488707

5,563

Balance at end of current period

325(250)

75

6,999

58,6418

Consolidated statements of cash flows(Millions of yen)
Fiscal year ended
March 31, 2017
Cash flows from operating activities
Profit before income taxes
Depreciation
Increase (decrease) in allowance for doubtful accounts
Increase (decrease) in provision for bonuses
Increase (decrease) in provision for directors' bonuses
Increase (decrease) in net defined benefit liability
Interest and dividend income
Interest expenses
Loss on sales and retirement of noncurrent assets
Decrease (increase) in notes and accounts receivable trade
Increase (decrease) in notes and accounts payable trade
Increase (decrease) in accrued consumption taxes

Fiscal year ended
March 31, 2018
8,293
4,716
(12)
(36)
(5)
19(30)
220
76

9,278
4,944
51
67(0)
121(33)
193
85

388

(1,396)(0)642

1,133(457)

415

–

51
(27)
(193)

–
665
(74)

Subtotal

15,005

14,087

Interest and dividend income received
Interest expenses paid
Compensation for damage paid
Income taxes paid
Income taxes refund30(218)(51)(3,003)133(190)–(2,258)
0

Net cash provided by (used in) operating activities

11,764

11,673(593)
596(2,136)
280
(312)
(1)
88(48)
413
(25)

(746)
601
(3,845)
128
(311)
(2)
–
(110)
343
(34)

(100)

(468)

(46)

(29)

(1,887)(4,475)Decrease (increase) in consumption taxes refund
receivable
Loss on compensation for damage
Increase/decrease in other assets/liabilities
Other, net

Cash flows from investing activities
Payments into time deposits
Proceeds from withdrawal of time deposits
Purchase of property, plant and equipment
Proceeds from sales of property, plant and equipment
Purchase of intangible assets
Purchase of investment securities
Proceeds from sales of investment securities
Payments for lease deposits
Collection of lease deposits
Payments of loans receivable
Purchase of shares of subsidiaries resulting in change inscope of consolidation
Other, net
Net cash provided by (used in) investing activities

9

(Millions of yen)
Fiscal year ended
March 31, 2017

Fiscal year ended
March 31, 2018

Cash flows from financing activities
Net increase (decrease) in short-term loans payable
Proceeds from long-term loans payable
Repayments of long-term loans payable
Net decrease (increase) in treasury shares
Cash dividends paid
Dividends paid to non-controlling interests
Repayments of lease obligations
Other, net

(500)
1,771
(4,280)
(0)
(665)
(112)
(1,846)(5)(1,380)510(3,264)
(0)
(807)
(121)
(2,024)(5)

Net cash provided by (used in) financing activities(5,639)(7,094)––

Net increase (decrease) in cash and cash equivalents

4,238

103

Cash and cash equivalents at beginning of period

4,671

8,909

Cash and cash equivalents at end of period

8,909

9,012

Effect of exchange rate change on cash and cash
equivalents10