Translation

October 30, 2015

Consolidated Financial Results
for the First Six Months of the Fiscal Year Ending March 31, 2016
<under Japanese GAAP>
Company name:
Listing:
Stock code:
URL:
Representative:
Inquiries:

USHIO INC.
First Section of the Tokyo Stock Exchange6925
http://www.ushio.co.jp
Kenji Hamashima, President and Chief Executive Officer
Hideaki Takizawa, General Manager, Accounting & Finance Department
TEL: +81-3-3242-1811 (from overseas)

Scheduled date to file Quarterly Securities Report:
Scheduled date to commence dividend payments:
Preparation of supplementary material on earnings:
Holding of earnings performance review:

November 9, 2015
–Yes
Yes (for analysts)(Millions of yen with fractional amounts discarded, unless otherwise noted)

1.

Consolidated performance for the first six months of the fiscal year ending March 31, 2016
(from April 1, 2015 to September 30, 2015)(1)

Consolidated operating results (cumulative)
Net salesFirst six months ended(Percentages indicate year-on-year changes.)

Operating income

Millions of yen% Millions of yen

Profit attributable toowners of parent

Ordinary income% Millions of yen% Millions of yen%

September 30, 2016

88,616

19.2

6,540

63.1

7,572

47.1

5,466

21.7

September 30, 2015

74,361

(1.8)

4,009

(31.4)

5,148(33.7)

4,492(12.9)(Note)

Comprehensive income
For the first six months ended September 30, 2016: ¥(2,675) million [(77.5)%]
For the first six months ended September 30, 2015: ¥11,909 million [(3.7)%]
Net income per share

Diluted net
income per shareFirst six months ended

Yen

Yen

September 30, 2016

42.14

–

September 30, 2015

34.48

–

(2)

Consolidated financial position
Total assets

As ofNet assets

Equity ratio

Millions of yen

Millions of yen%

September 30, 2015

291,187

215,310

73.1

March 31, 2015

294,542

218,723

73.3(Reference) Equity
As of September 30, 2015:
As of March 31, 2015:¥212,898 million¥215,924 million

2.

Cash dividends
Annual dividends
First quarter-end Second quarter-end Third quarter-end

Fiscal year ended March31, 2015
Fiscal year ending March31, 2016
Fiscal year ending March31, 2016 (Forecast)(Note)

3.

Fiscal year-end

Total

Yen

Yen

Yen

Yen

Yen

–––

24.00

24.00

––

26.00

26.00

–Revisions to the forecasts of cash dividends most recently announced: None

Consolidated earnings forecasts for the fiscal year ending March 31, 2016
(from April 1, 2015 to March 31, 2016)(Percentages indicate year-on-year changes.)
Net sales
Millions ofyen

Fiscalyear
March 31, 2016

ending%180,000 12.9

Operating income

Ordinary income

Profit attributable to Net income perowners of parent
shareMillions ofyen%Millions ofyen%Millions ofyen%

Yen

13,000 25.5

15,0009.4

12,0006.4

92.71(Note) Revisions to the consolidated earnings forecasts most recently announced: None
* Notes(1) Changes in significant subsidiaries during the period (changes in specified subsidiaries resulting in the change in the scope ofconsolidation): None
(2) Application of a specific accounting procedure for preparing quarterly consolidated financial statements: None
(3) Changes in accounting policies, changes in accounting estimates, and restatements
a. Changes in accounting policies due to revisions to accounting standards: Yes
b. Changes in accounting policies due to other reasons: Nonec. Changes in accounting estimates: None
d. Restatements: None
(4) Number of issued shares (common shares)
a. Total number of issued shares at the end of the period (including treasury shares)
As of September 30, 2016
As of March 31, 2015b. Number of shares of treasury shares at the end of the period
As of September 30, 2016
As of March 31, 2015
c. Average number of outstanding shares during the period
As of September 30, 2016
As of September 30, 2015

139,628,721 shares
139,628,721 shares
10,520,097 shares
9,072,215 shares
129,725,112 shares
130,296,176 shares* Indication regarding execution of the quarterly review proceduresThis quarterly earnings report is exempted from the quarterly review procedures in accordance with the Financial Instruments andExchange Act. At the time of disclosure of this quarterly earnings report, the quarterly review procedures for quarterly consolidated
financial statements in accordance with the Financial Instruments and Exchange Act are incomplete.
* Notes on the proper use of earnings forecasts and other special matters
The forward-looking statements, including earnings forecasts, contained in these materials are based on information currently
available to the Company and on certain assumptions deemed to be reasonable. Actual business and other results may differ
substantially due to various factors.

Consolidated Financial Statements(1) Consolidated Balance Sheets(Millions of yen)
As of March 31,2015
AssetsCurrent assets
Cash and deposits
Notes and accounts receivable - trade
Securities
Merchandise and finished goods
Work in process
Raw materials and 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, equipment and vehicles
Accumulated depreciation
Machinery, equipment and vehicles, net
LandConstruction in progress
Other
Accumulated depreciation
Other, net
Total property, plant and equipment
Intangible assets
Goodwill
Other
Total intangible assets
Investments and other assets
Investment securities
Long-term loans receivable
Deferred tax assets
Net defined benefit asset
Other
Allowance for doubtful accounts
Total investments and other assets
Total non-current assets
Total assets–1–

As of September 30, 2015

60,76539,796
13,50328,997
7,888
15,361
6,016
7,740ᇞ1,295
178,774

62,603
38,104
9,969
30,279
9,988
15,331
4,705
7,415
ᇞ1,475
176,922

39,863
ᇞ21,862
18,00023,005
ᇞ18,986
4,019
9,670
1,214
26,379ᇞ19,270
7,108
40,01440,324
ᇞ22,668
17,656
23,644
ᇞ19,391
4,252
10,4041,700
26,644
ᇞ19,817
6,827
40,841

3,477
3,621
7,098

3,036
3,410
6,447

63,250
22
1,071
18
4,412
ᇞ119
68,655
115,767
294,542

61,241
14
945
23
4,873
ᇞ121
66,976114,265
291,187(Millions of yen)
As of March 31,2015
Liabilities
Current liabilities
Notes and accounts payable - trade
Short-term loans payable
Current portion of long-term loans payable
Income taxes payable
Deferred tax liabilities
Provision for bonuses
Provision for product warranties
Provision for loss on order received
Other
Total current liabilities
Non-current liabilities
Long-term loans payable
Deferred tax liabilities
Net defined benefit liability
Provision for directors' retirement benefits
Asset retirement obligations
Other
Total non-current liabilities
Total liabilities
Net assets
Shareholders' equity
Capital stock
Capital surplus
Retained earnings
Treasury shares
Total shareholders' equity
Accumulated other comprehensive income
Valuation difference on available-for-salesecurities
Deferred gains or losses on hedges
Foreign currency translation adjustment
Remeasurements of defined benefit plans
Total accumulated other comprehensive income
Non-controlling interests
Total net assets
Total liabilities and net assets–2–

As of September 30, 2015

17,786
4,272
1,361
1,801
79
2,654
1,755
73
15,10044,886

17,292
6,679
664
1,127
121
2,412
1,838
23
15,922
46,084

8,430
5,792
9,170
545206
6,786
30,93275,818

8,124
6,073
8,456
767
208
6,162
29,79275,877

19,55628,301
143,883
ᇞ12,850
178,891

19,55628,181
146,216
ᇞ15,361
178,592

29,892

28,943012,425
ᇞ5,28537,033
2,798
218,723
294,542－
10,331
ᇞ4,96934,306
2,411
215,310291,187

(2) Consolidated Statements of Income and Consolidated Statements of Comprehensive Income(Consolidated Statements of Income)(Millions of yen)First six months ended
September 30, 2014
Net sales
Cost of sales
Gross profit
Selling, general and administrative expenses
Operating incomeNon-operating income
Interest income
Dividend income
Foreign exchange gains
Realized and unrealized profit on trading securities,
net
Other
Total non-operating income
Non-operating expenses
Interest expenses
Foreign exchange losses
Share of loss of entities accounted for using equity
methodRealized and unrealized loss on trading securities,
net
Other
Total non-operating expenses
Ordinary income
Extraordinary income
Gain on sales of non-current assets
Gain on sales of investment securities
Gain on liquidation of subsidiaries and associates
Gain on bargain purchaseTotal extraordinary income
Extraordinary losses
Loss on retirement of non-current assets
Loss on sales of non-current assets
Impairment loss
Office transfer expenses
Total extraordinary losses
Income before income taxes and minority interests
Income taxes - current
Income taxes - deferred
Total income taxes
ProfitProfit attributable to non-controlling interests
Profit attributable to owners of parent–3–

First six months ended
September 30, 2015

74,361
46,564
27,79723,787
4,009

88,61654,33634,24927,709
6,540

324
549
－

372
589
318

276

－

279
1,429

213
1,4949446125－

259－

202

124
290
5,148

125
462
7,572

52
1,028－
277
1,358

1,077－
37
579
1,694

18
35
481－
535
5,971
1,447
ᇞ91
1,355
4,616
124
4,492

57
0－
40
98
9,168
1,715
1,916
3,631
5,536
69
5,466

(Consolidated Statements of Comprehensive Income)(Millions of yen)First six months ended
September 30, 2014
ProfitOther comprehensive income
Valuation difference on available-for-sale securities
Deferred gains or losses on hedges
Foreign currency translation adjustment
Remeasurements of defined benefit plans, net of tax
Share of other comprehensive income of entities
accounted for using equity method
Total other comprehensive income
Comprehensive income
Comprehensive income attributable toComprehensive income attributable to owners ofparent
Comprehensive income attributable to noncontrolling interests–4–

First six months ended
September 30, 2015

4,616

5,536

1,840
4
5,181
265

ᇞ948
ᇞ0
ᇞ2,226
315

10

7,293
11,909

ᇞ2,8602,675

11,670

2,739

239

ᇞ63

(3) Consolidated Statement of Cash Flows(Millions of yen)First six months ended
September 30, 2014
Cash flows from operating activities
Income before income taxes and minority interests
Depreciation
Impairment loss
Interest and dividend income
Interest expenses
Profit / Loss on sale / revaluation of available-forsale securities
Share of (profit) loss of entities accounted for using
equity method
Loss (gain) on sales of non-current assets
Loss on retirement of non-current assets
Loss (gain) on sales of investment securities
Decrease (increase) in notes and accounts
receivable - trade
Decrease (increase) in inventories
Increase (decrease) in notes and accounts payable trade
Other, netSubtotal
Interest and dividend income received
Interest expenses paid
Income taxes (paid) refund
Net cash provided by (used in) operating activities
Cash flows from investing activities
Payments into time deposits
Proceeds from withdrawal of time deposits
Payments of short-term loans receivableCollection of short-term loans receivable
Purchase of securities
Proceeds from sales and redemption of securities
Purchase of property, plant and equipment
Proceeds from sales of property, plant andequipment
Purchase of intangible assets
Purchase of investment securities
Proceeds from sales and redemption of investment
securities
Purchase of shares of subsidiaries resulting inchange in scope of consolidation
Payments of long-term loans receivableCollection of long-term loans receivable
Payments for transfer of business
Other, net
Net cash provided by (used in) investing activities–5–

First six months ended
September 30, 2015

5,971
2,780
481
ᇞ873
94

9,168
3,147－
ᇞ962
125

ᇞ276

202

25

9

ᇞ16
18
ᇞ1,028

ᇞ1,077
57
－

3,410

2,260

ᇞ1,771

ᇞ3,882

ᇞ1,817

ᇞ1,040

ᇞ932
6,064
924
ᇞ94
ᇞ3,675
3,218

ᇞ406
7,602
1,015
ᇞ132
ᇞ2,586
5,898

ᇞ7,716
7,212
ᇞ57
43
ᇞ318
3,090
ᇞ1,621

ᇞ7,354
8,764
ᇞ112
92
ᇞ2,1942,858
ᇞ2,982

115

1,388

ᇞ169
ᇞ2,026

ᇞ130
ᇞ1,197

1,447

76

ᇞ88

ᇞ375

ᇞ190
ᇞ84
206
13

ᇞ5218
－149
ᇞ806

(Millions of yen)First six months ended
September 30, 2014
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
Payments from changes in ownership interests insubsidiaries that do not result in change in scope ofconsolidation
Purchase of treasury shares
Cash dividends paid
Dividends paid to non-controlling interests
Net cash provided by (used in) financing activities
Effect of exchange rate change on cash and cashequivalents
Net increase (decrease) in cash and cash equivalents
Cash and cash equivalents at beginning of period
Cash and cash equivalents at end of period–6–First six months ended
September 30, 2015

ᇞ191
2,637
ᇞ2,3071,706－
ᇞ1,007－

ᇞ415

ᇞ428
ᇞ3,386
ᇞ28
ᇞ3,704

ᇞ2,511
ᇞ3,132
ᇞ28
ᇞ5,388

1,127

ᇞ679

653
45,34245,996ᇞ975
56,98956,013

(4) Notes regarding the consolidated financial statements(Segment information)
I.
First six months of the fiscal year ended March 31, 2015 (from April 1, 2014 to September 30, 2014)
Information concerning net sales and income/loss by reporting segment(Millions of yen)

Reporting Segment
LightSources

Equipment

TotalOthers(Note 1)

Total

Amount on
consolidated
Adjustment
financial(Note 2)statements(Note 3)

Sales
34,07738,751

72,8291,532

74,361-

74,361

Inter-segment sales or transfer
among segment

41538

454

15469(469)-Total34,49338,79073,283

1,547

74,831(469)

74,361

4,364(464)

3,899

40

3,940

69

4,009

Sales to outside customers

Segment profit (loss)(Notes) 1. The “Others” classification refers to business segments not included in reporting segments, such as machinery forindustrial uses and other businesses.
2. “Adjustment” refers to eliminations of inter-segment transactions.
3. Segment profit (loss) is adjusted with operating income in the quarterly consolidated statements of income.
II.

First six months of the fiscal year ending March 31, 2016 (from April 1, 2015 to September 30, 2015)
Information concerning net sales and income/loss by reporting segment(Millions of yen)

Reporting Segment
Others(Note 1)

Total

Amount onconsolidated
Adjustment
financial(Note 2)statements(Note 3)Light
Sources

Equipment

Total

39,17547,91587,0901,525

88,616-

88,616

Inter-segment sales or transfer
among segment

543

27570

11581(581)-Total

39,71947,942

87,661

1,536

89,197(581)

88,616

Segment profit

5,978

508

6,486

27

6,514

25

6,540

Sales
Sales to outside customers(Notes) 1. The “Others” classification refers to business segments not included in reporting segments, such as machinery forindustrial uses and other businesses.
2. “Adjustment” refers to eliminations of inter-segment transactions.
3. Segment profit is adjusted with operating income in the quarterly consolidated statements of income.

–7–