Consolidated Business Results for theFirst Half of Fiscal 2012
November 2, 2012
Bando Chemical Industries, Ltd.
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First Half Financial Summary for theFiscal Year Ending March 31, 20121

（1） Settlement of Accounts
There was a downward trend in domestic automotive demand, but
Asian and American demand grew and sales of automotive powertransmission products increased. There was a slight decrease inindustrial belt sales as economic uncertainties impacted capital
expenditures.
In industrial products, demand grew for steep-incline conveyor
belts in Japan, and sales of conveyor belts overseas also increased.
The slumping European economy impacted printer production, andsales of multimedia parts declined.
While domestic sales were generally flat, overseas sales
increased (to 40.8% of consolidated net sales, up 1.0 point).
2

（2） Performance Summary
Unit： Yen millions

FY2011First half

FY2012First halfYear on year
Change% change

Net sales

42,88943,718+829+1.9%Operating income

2,274

2,511+237+10.5%

Ordinary income

2,274

2,769+495+21.8%

515

1,752+1,236+240.2%

Overseas’ sales

17,04917,823+773+4.5%

Rate of sales overseas

39.8%

40.8%

+1.0 pts－Asia （Thailand, China, etc.）

13,23013,787+557+4.2%

Other （USA, Europe, etc.）

3,819

4,035+216+5.7%

Net profit

Exchange rates （term average）

US$=¥81.8

US$=¥79.8
3

（3）Quarterly Progression of Net Sales and Operating Income
Yen millions

Yen millions

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

25,00022,124
21,033

20,58021,072

20,923

21,9653,000
22,61822,002
20,864

21,7162,500

20,000

2,000
1,650

15,000
1,385

1,282

1,203

1,184
10,000

1,303

1,208

1,500

1,014
835

1,000

1,070

5,000

500

00
'10/1Q'10/2Q'10/3Q'10/4Q'11/1Q'11/2Q'11/3Q'11/4Q'12/1Q'12/2Q4

（4） Results by Business Segment
Unit: Yen millions
FY2011First half

FY2012First halfYear on year
Change% change

42,88943,718+829+1.9%

Power Transmission

26,69928,003+1,304+4.9%

Multimedia Parts

4,645

4,064-581-12.5%

Industrial Products

8,328

8,727+398+4.8%

Plastics Products

2,439

2,405-34-1.4%Other

1,196753-443- 37.0%Net sales
Sales by business segment※ Before eliminations
5（5） Non-Operating Income and Extraordinary Income
Unit: Yen millions

FY2011First halfYear on year

FY2012First half

Change2,274

2,511+237

Non-operating income

554

624+70Non-operating expense554

367-186

2,274

2,769+495

34+1

1,249

205

-1,044512

816+303515

1,752+1,236

Operating income

Ordinary income
Extraordinary income
Extraordinary loss
Income taxes and minority interests
Net income※ Prior term extraordinary loss was mainly on sale of company housing and loss on former factory site.
6（6） Balance Sheet Fluctuations
Unit: Yen millions

Major fluctuations
Accounts receivable+¥500 mil.
Inventories -¥400 mil.

40,521

Current
assets40,730

Otherliabilities
25,072Major fluctuations
25,619Accts. payable -¥500 mil.
Accrued taxes +¥400 mil.
Accrued exp. +¥100 mil.

Debt
14,042

14,595

Other payables -¥400 mil.
Debt -¥600 mil.

Tangible fixed assets-¥400 mil.
Intangible assets
39,137-¥300 mil.
Investment securities

Fixedassets
38,355

Net assets
39,970Shareholders’ equity
39,442

Valuation and translation
adjustments -¥300 mil.

-¥200 mil.
FY2011, first half
79,659FY2012, first half FY2012, first half

79,085+¥900 mil.

79,085FY2011, first half
79,6597

（7）Transition of Cash Flow
Yen millions

6,000＋4,715

5,000
4,000

Operating activities
Investing activities
Free cash flow

＋3,534＋3,377＋3,241

3,000
2,000
1,000＋2,039＋2,962＋1,251＋757＋494

0-1,000

FY08 first half

-1,337-2,000-3,000

FY09 first half

FY10 first half

FY11 first half

FY12 first half－ 2,022-1,753-2,283-2,747-2,779-4,0008

(8) Financial Indicators

FY2008FY2009FY2010FY2011FY2012First half

ROE (※1)

-0.6%

3.2%

8.5%

3.7%

4.5%

ROA (※2)

-0.3%

1.6%

4.0%

1.8%

2.2%

Capital ratio

48.7%

50.2%

47.9%

48.4%

49.5%

Debt to equity
ratio

47.3%

40.2%

44.5%

37.9%

35.9%

¥12.2 billion ¥7.1 billion ¥2.7 billion¥3.5 billion¥2.9 billion

Net interestbearing debt

※1 ROE、ROA are based on net profit※2 ROE、ROA are based on first half net profit
9

FY2012 Full Year Forecast

10(1) Points Related to the Full Year Forecast Surrounding environment
 Domestic
 There is a modest recovery in the context of earthquake reconstruction, but tax
subsidies for eco cars have been discontinued
 Concerns over further strengthening of the yen Overseas
 Prolonged economic downturn in Europe Economic slowdowns in China and India, which have been the driving force behind
economic growth Current conservative purchases of Japanese products in China may continue
 Brisk demand in emerging economies, such as in the ASEAN countries of Thailand,
Indonesia and Vietnam

Based on the environment outlined above, we are separately issuing a revised fullyear forecast.

 We will continue to work to improve our profitability, through measures such asincreased productivity, thorough expense reductions and by reducing raw materials
procurement costs.
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(2) FY2012 Full Year Forecast
Unit： Yen millions
FY2011FY2012

ResultRevisedForecast

Year on year
Change% change

86,37285,000-1,372-1.6%

Power Transmission

53,59153,600+8+0.0%Multimedia Parts

9,020

7,900-1,120-12.4%

Industrial Products

17,656

17,600-56-0.3%

Plastics Products

4,923

4,800

-123-2.5%

Other

1,796

1,600

-196

-10.9%

Operating income

4,570

5,000+429+9.4%

Ordinary income

4,391

5,000+608+13.8%Net profit

1,440

3,200+1,759+122.2%

US$= ¥79.5

US$= ¥78(forecast)

Net sales
Sales by business segment

Exchange rate （term average）

12

(3) Transition of Capital Investment and Depreciation
Yen millions
7,000

6,500

Capital investment
Depreciation

6,000

5,651
4,907

5,000

4,804

4,700

4,258
4,000

3,0002,443

2,428 2,305

2,157
1,760

2,000
1,243
1,0000
FY10 1st half

FY2010

FY11 1st half

FY2011

FY12 1st half

FY12 forecast13(4) Shareholder Return (Dividends)
12Year end dividend
Midterm dividend

1086\2\4\4\4(forecast)\4\4\43/2011

3/20123/2013 forecast\34\52\30

3/20093/201014

(5) Treasury Stock, Dividends, Net Profit
5,000

Yen millions
Purchase of treasury stock

4,000

Total dividends+4,000Consolidated net profit+3,3333,000
2,000764+1,440599602787775

3/200903/20113/20123/2013 forecast

Shares purchased－－

2,350,000

1,970,000

1,800,000

Shares retired

1,000,000－

700,000

3,500,000+1,234
1,000
702

493
753
（forecast）

0-255-1,00015