Consolidated Business Results for theFirst Half of Fiscal 2011
November 4, 2011

Bando Chemical Industries, Ltd.
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First Half Financial Summary for theFiscal Year Ending March 31, 20121

（1）Settlement of Accounts
 Although automotive production fell below previous year same-term levels dueto the effects of the Great East Japan Earthquake, demand growth continued inemerging economies, and there was a slight recovery after the fall in production
following the earthquake. Same-term sales increased slightly.
 Overall cost reduction activities continued, but profits declined due to factors
such as increased raw materials costs and high yen exchange rates.
 Net profit declined significantly due to the sale and disposal of unwanted factory
assets and the sale of a dormitory during the term.
 Capital investment accelerated, focused on Asia, particularly in India and China.

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（2）Performance Summary
Unit： Yen millions

FY2010First half

FY2011First halfYear on year
Change% change

Net sales

42,70542,889+184+0.4%

Operating income

3,036

2,274-761-25.1%

Ordinary income

3,078

2,274-804-26.1%

Net profit

2,275515-1,760-77.4%

Overseas’ sales

16,784

17,079+265+1.6%

Rate of sales overseas

39.3%

39.8%

+0.5pts－Asia （Thailand, China, etc.）

13,053

13,230

+176

+1.4%

Other （USA, Europe, etc.）

3,731

3,819

+88+2.4%

Exchange rates (term average)

US$=¥91.0

US$=¥81.8
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（3）Quarterly Progression ofNet Sales and Operating Income
Yen millions

Yen millions

3,000

25,00022,124
18,686 19,130

20,00019,74020,58021,03321,072 20,923

21,9652,500

16,0362,000

15,0001,650
10,000
1,093

1,385
826

5,000

1,1841,070

1,203835

1,000673

500

0-5,000

1,500- 143

Consolidated net sales (left scale)
Consolidated operating income (right scale)

0-500-10,000
09/1Q

09/2Q

09/3Q

09/4Q

10/1Q

10/2Q

10/3Q

10/4Q

11/1Q

11/2Q
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（4）Results by Business Segment
Unit: Yen millions
FY2010First half

FY2011First halfYear on year
Change% change

42,70542,889

+184

+0.4%

Power transmission products

25,716

26,699+983+3.8%

Multimedia parts

5,617

4,645-972-17.3%

Industrial products

8,517

8,328-188-2.2%

Plastics products2,366

2,439+72+3.1%

Other

1,367

1,196-182-12.5%Net sales
Sales by business segment※Before eliminations
5（5）Non-Operating Income (Expense) andExtraordinary Income (Loss)
Unit: Yen millions

FY2010First halfYear on year

FY2011First half

Change3,036

2,274-761

Non-operating income

577

554-23Non-operating expense

534

554

+19

3,078

2,274-804

Extraordinary income

733-70Extraordinary loss

115

1,249+1,133

Income taxes andminority interests

760

512-2482,275

515-1,760

Operating income

Ordinary income

Net income6（6）Balance Sheet Fluctuations
Unit: Yen millions

Major fluctuations
Cash -¥5.1 bil.
Accounts receivable 42,409+¥1.4 bil.
Inventories +¥700 mil.

Currentassets
38,809Otherliabilities
24,486
Bank loans
15,109Major fluctuations
24,708Accts. payable +¥300 mil.
Accrued taxes -¥500 mil.
Accrued exp. +¥300 mil.

17,653

Bank loans -¥2.5 bil.

Tangible fixed assets-¥100 mil.
Intangible assets

40,495-¥400 mil.

Fixedassets
40,268

Net assets
40,480Shareholders’ equity
40,542+¥100 mil.
Valuation and translation
adjustments -¥200 mil.

First half
FY2010First half FY2011 First half FY2011First half
FY20107

（7）Transition of Cash Flow
Yen millions

6,000＋4,715

5,0004,000

Operating activities
Investing activities
Free cash flow

＋3,696＋3,377＋3,241＋2,962

3,000
2,000＋2,039

1,000＋494
0-1,000

FY07-181
first half

FY08 first half

FY09 first half
-1,337-2,000-3,000-4,000＋757-2,747

FY10 first half

FY11 first half

-1,753-2,022-2,779-3,877-5,000
8(8) Financial Indicators
FY2007

FY2008FY2009FY2010FY2011First half

ROE (※1)

12.3%

-0.6%

3.2%

8.5%

(※2) 1.3%

ROA (※1)

5.8%

-0.3%

1.6%

4.0%

(※2) 0.6%

Capital to asset
ratio

48.5%

48.7%

50.2%

47.9%

49.5%

Debt to equity
ratio

42.1%

47.3%

40.2%

44.5%

38.2%

Net interestbearing debt

¥14.3 bil.

¥12.2 bil.

¥7.1 bil.

¥2.7 bil.

¥5.4 bil.

※1 ROE、ROA are based on net profit※2 ROE, ROA are based on first half net profit
9FY2011 Full Year Forecast

10(1) Points Related to the Full Year Forecast

There will be a gradual recovery from the effects of the Great
East Japan Earthquake, amid a harsh economic environment
due to the historic appreciation of the yen and high raw
materials costs.
Growth trends in emerging economies, particularly in Asia, willcontinue, but the pace of the growth will slow.
Our subsidiary in Thailand was undamaged by the flooding inthat country, but some of our customers have been forced todecrease or halt production due to the impact of the floods.
Our full year forecast announced September 29, 2011 remains
unchanged, however we will issue timely revisions to that
forecast if necessary.
11(2) FY2011 Full-Year Forecast
Unit： Yen millions

Net sales

FY2010FY2011ResultForecast

Year on year
Change% change

84,81187,000+2,188+2.6%

Power transmission products

52,48354,000+1,516+2.9%

Multimedia parts

10,6369,500-1,136-10.7%

Industrial products

15,747

17,300+1,552+9.9%

Plastics products

4,837

4,600-237

-4.9%

Other

2,113

2,400+286+13.6%

Operating income

5,056

5,400+343

6.8%

Ordinary income

4,967

5,300+332

6.7%

Net profit

3,3332,500-833-25.0%

Sales by business segment

Exchange rate （term average）

US$= ¥87.3

US$=¥80.0
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(3)Transition of Capital Investment
and Depreciation
Yen millions

7,000
Capital investment

6,200

Depreciation

6,000

5,411
4,907

5,000

4,900

4,258
4,000

3,000

2,664

2,791
2,443

2,428 2,332

2,000
1,388

1,243

1,0000
FY09 1st half

FY2009

FY10 1st half

FY2010

FY11 1st half

FY11 forecast13(4) Shareholder Return (Dividends)
14Special dividendYear end dividend
Midterm dividend

12\5108\66\5\4\2\4\4\43/2006

3/2007\5\5\3\30

3/2005\4\4\43/2011

3/2012
forecast\342\43/2008

3/20093/201014

(5) Treasury Stock, Dividends, Net Profit
Yen millions

6,000
Purchase of treasury stock+5,2895,000

Total dividends+4,0864,000+3,713

Consolidate net profit+3,985+3,3333,000+2,500

2,000

1,321
1,213

1,000
728

1,326

160

452

1,012

1,003

0702

+1,234 764

600

602

787

776

3/2012
forecast-255-1,000Sharesretired

3/20053/20063/20073/20083/20093/20103/20112,800,000

2,600,000－－

1,000,000－

700,000
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