Translation

January 31, 2019

Consolidated Financial Results
for the First Nine Months of the Fiscal Year Ending March 31, 2019
<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/en
Kenji Hamashima, President and Chief Executive Officer
Hideaki Takizawa, General Manager, Accounting & Finance Department
TEL: +81-3-5657-1000 (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:

February 14, 2019
–Yes
Yes (for analysts)(Millions of yen with fractional amounts discarded, unless otherwise noted)

1.

Consolidated performance for the first nine months of the fiscal year ending March 31, 2019(from April 1, 2018 to December 31, 2018)(1)

Consolidated operating results (cumulative)
Net sales(Percentages indicate year-on-year changes.)

Operating income

First nine months ended Millions of yen% Millions of yen

Profit attributable toowners of parent

Ordinary income% Millions of yen% Millions of yen%

December 31, 2018

122,394(5.7)

6,912(19.5)

9,494(12.3)

5,675(33.3)

December 31, 2017

129,797

3.8

8,586

49.8

10,820

34.1

8,504

39.7

(Note)

Comprehensive income
For the first nine months ended December 31, 2018: ¥ 4,063 million [(76.1)%]
For the first nine months ended December 31, 2017: ¥16,990 million [75.5%]
Net income per share

Diluted net
income per shareFirst nine months ended

Yen

Yen

December 31, 2018

44.43

–

December 31, 2017

66.56

–

(2)

Consolidated financial position
Total assets

As ofNet assets

Equity ratio

Millions of yen

Millions of yen%

December 31, 2018

307,767

216,277

70.2

March 31, 2018

305,303

215,306

70.4(Reference) Equity
As of December 31, 2018:
As of March 31, 2018:¥ 216,060 million¥ 215,077 million

2.

Cash dividends
Annual dividends
First quarter-end

Second quarter-end

Third quarter-end

Yen

Yen

Yen

Yen

Yen

–––26.00

26.00

–––
50.00

50.00

Fiscal year ended
March 31, 2018
Fiscal year ending
March 31, 2019
Fiscal year ending
March 31, 2019
(Forecast)(Note)

3.

Fiscal year-end

Total

Revisions to the forecasts of cash dividends most recently announced: YesConsolidated earnings forecasts for the fiscal year ending March 31, 2019(from April 1, 2018 to March 31, 2019)(Percentages indicate year-on-year changes.)
Net sales

Fiscal year ending
March 31, 2019

Millions ofyen%

165,000(4.9)

Operating income

Ordinary income

Profit attributable toowners of parent

Millions ofyen

Millionsof yen%

Millions ofyen%

Yen

10,500 (12.9)

11,5004.5

90.24%

8,500 (16.3)

Net income pershare(Note) Revisions to the consolidated earnings forecasts most recently announced: Yes* 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: Noneb. Changes in accounting policies due to other reasons: Nonec. Changes in accounting estimates: Noned. 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 December 31, 2018
139,628,721 shares
As of March 31, 2018
139,628,721 sharesb. Number of shares of treasury shares at the end of the period
As of December 31, 2018
11,928,279 shares
As of March 31, 2018
11,866,293 sharesc. Average number of outstanding shares during the period
As of December 31, 2018
127,732,394 shares
As of December 31, 2017
127,762,946 shares(Note) The Company’s shares held in trust introduced with respect to its stock remuneration plan for directors as treasury shareswithin shareholders’ equity are included in the number of treasury shares.
* This Consolidated Financial Review is not subject to audit procedures by Certified Public Accountants or audit firm.
* 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.
*To obtain Financial Presentation
The Financial Presentation will be posted on the website of USHIO INC. on January 31, 2019.

Consolidated Financial Statements(1) Consolidated Balance Sheets(Millions of yen)
As of March 31, 2018
AssetsCurrent assets
Cash and deposits
Notes and accounts receivable - trade
Securities
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, netMachinery, equipment and vehicles
Accumulated depreciation
Machinery, equipment and vehicles,net
Land
Construction 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
OtherAllowance for doubtful accounts
Total investments and other assets
Total non-current assets
Total assets–1–

As of December 31, 2018

74,72542,255
4,851
25,717
13,624
14,92010,436△1,590184,940

73,42337,781
5,683
27,614
18,827
18,118
11,319△1,408191,359

42,045△23,845
18,19922,823△18,764

44,243△24,828
19,41524,516△19,760

4,058

4,755

8,534
2,439
31,869△23,524
8,345
41,5788,571
1,130
33,515△25,018
8,497
42,370

2,358
3,952
6,311

1,581
2,886
4,468

63,819
170
1,883
3,780
2,922
△103
72,473
120,362
305,303

61,039
613
1,947
3,839
2,693
△565
69,568116,407
307,767(Millions of yen)
As of March 31, 2018Liabilities
Current liabilities
Notes and accounts payable - trade
Short-term loans payable
Current portion of long-term loans payable
Income taxes payable
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
Provision for directors' retirement benefits
Provision for directors' stock payments
Net defined benefit liability
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
incomeNon-controlling interests
Total net assets
Total liabilities and net assets–2–

As of December 31, 2018

21,414
6,950
1,884
873
2,185
2,194
48
18,622
54,174

20,397
10,426
7,328
2,134
1,096
2,261
32
19,81263,490

17,989
8,975
335
189
2,918
237
5,176
35,822
89,997

11,744
7,637
319
224
3,069
243
4,759
27,99991,48919,556
27,771
163,217△17,212
193,332

19,556
27,771
165,893△17,305
195,916

24,247

20,595△15984△3,471△14
2,749△3,185

21,744

20,144229
215,306
305,303217
216,277
307,767(2) Consolidated Statements of Income and Consolidated Statements of Comprehensive Income(Consolidated Statements of Income)(Millions of yen)
Nine months ended
December 31, 2017
Net sales
Cost of sales
Gross profit
Selling, general and administrative expenses
Operating profit
Non-operating income
Interest income
Dividend income
Foreign exchange gains
Realized and unrealized profit on trading
securities,net
Gain on specified money in trust
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
Loss on specified money in trust
Other
Total non-operating expenses
Ordinary profit
Extraordinary income
Gain on sales of non-current assets
Gain on sales of investment securitiesGain on transfer of benefit obligation relating toemployees' pension fundGain on step acquisitions
Total extraordinary income
Extraordinary losses
Loss on retirement of non-current assets
Loss on sales of non-current assets
Impairment loss
Loss on disaster
Loss on sales of investment securities
Loss on valuation of investment securities
Loss on sales of shares of subsidiaries and associates
Special retirement expenses
Loss on revision of retirement benefit plan
Business structure improvement expenses
Other
Total extraordinary losses
Profit before income taxes
Income taxes - current
Income taxes - deferred
Total income taxes
ProfitLoss attributable to non-controlling interests
Profit attributable to owners of parent–3–

Nine months ended
December 31, 2018

129,797
82,87946,91838,332
8,586

122,394
78,081
44,31237,399
6,912

910
1,405
－

1,281
1,453
309

497

－

136
191
3,140－
260
3,305

365
460

379
－

1125－
－
68
906
10,820

229
9
79
723
9,494

168
1,009

84
1,733

6,024

－

28
7,232

－
1,818

237
0
135
－
49
126
176
348
－
－
－
1,074
16,9782,395
6,276
8,6728,305
△198
8,504

56
8－
20－－－－
40
1,776
207
2,110
9,202
3,777
△249
3,527
5,674
△15,675

(Consolidated Statements of Comprehensive Income)(Millions of yen)
Nine months ended
December 31, 2017
ProfitOther comprehensive income
Valuation difference on available-for-salesecurities
Deferred gains or losses on hedges
Foreign currency translation adjustment
Remeasurements of defined benefit plans, netof tax
Share of other comprehensive income ofentities accounted for using equity method
Total other comprehensive income
Comprehensive income
Comprehensive income attributable toComprehensive income attributable to ownersof parent
Comprehensive income attributable to noncontrolling interests–4–

Nine months ended
December 31, 2018

8,305

5,674

1,568

△3,651

0
4,078

1
1,753

3,036

285

1

1

8,685
16,990△1,610
4,063

17,173

4,075

△182

△11(3) Notes regarding the consolidated financial statements(Segment information)
I.
First nine months of the fiscal year ended March 31, 2018 (from April 1, 2017 to December 31, 2017)
Information concerning net sales and income/loss by reporting segment(Millions of yen)

Reporting Segment
Others(Note 1)

Total

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

Equipment

Total

Sales to outside customers

54,77072,883

127,654

2,143

129,797－

129,797

Inter-segment sales or transfer
among segment

1,384

43

1,427

22

1,450(1,450)－Total

56,15572,926129,081

2,166

131,247(1,450)129,797

Segment profit

7,975

415

8,391

119

8,511

75

8,586

Sales(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.
II.

First nine months of the fiscal year ending March 31, 2019 (from April 1, 2018 to December 31, 2018)
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)

LightSources

Equipment

Total

51,63968,632120,272

2,121

122,394－122,394

Inter-segment sales or transfer
among segment

408

55

463

26490(490)－Total

52,047

68,688120,735

2,148

122,884(490)

122,394

6,714(278)

6,436

71

6,507

404

6,912

Sales
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.

–5–