February 7, 2017

Summary of Consolidated Financial Results
For the Third Quarter of Fiscal Year Ending March 31, 2017 [Japan GAAP] ("Q3/FY2016")
Company: Asunaro Aoki Construction Co., Ltd.
Stock exchange listing: Tokyo Stock Exchange (First Section)
Stock code: 1865
URL: https://www.aaconst.co.jp/
Representative: Yasunobu Ueno, Representative Director and President
Contact: Haruyuki Kunitake, Managing Officer and Chief of Administration H.q.
Contact: 03-5419-1011, Koho@aaconst.co.jp
Date of filing of quarterly securities report:
February 8, 2017
Date of commencement of dividend payment:
Supplementary explanatory documents:
NoEarnings presentation:
No(Yen in millions, rounded down, figures in parentheses indicate negative amounts or percentages)
1. Financial results for the third quarter of the fiscal year ending March 2017 (April 1, 2016 – December 31, 2016)(1) Consolidated result of operations (year-to-date)(Percentage figures represent year on year changes)
Profit attributable toNet sales
Operating income
Ordinary income
owners of parent
Million yen%
Million yen% Million yen%
Million yen%
(1.5)
3Q / FY 2016
99,5106,094
42.56,095
40.7
3,848
14.8
3Q / FY 2015
100,981
12.6
4,276
68.7
4,331
71.5
3,352
96.3
Note: Comprehensive income:
3Q / FY 2016 : 4,028 million yen 14.4% , 3Q / FY 2015 : 3,522 million yen 103.7%
Earnings per share
Earnings per share(diluted)
Yen
Yen
3Q / FY 2016
68.58
－3Q / FY 2015
59.75－
(2) Consolidated financial Position
Total assets
Million yen
100,658
97,291

As of December 31,2016
As of March 31,2015(Reference) Shareholders' equity
As of December 31, 2016: 61,370 million yen

Net assets
Million yen
61,39758,380Equity ratio%
61.0
60.0

As of March 31, 2016: 58,357 million yen

2. Dividends
End of1Q

End of2Q
Yen
0.00
0.00

Dividend per share
End of3Q
Yen－

Yen
FY 3/2016－
FY 3/2017－
FY 3/2017 (Est.)－
Note: Change in the estimation of divided from the latest announcement: NoEnd ofFY

Annual

Yen
18.00

Yen
18.00

18.00

18.00

3. Consolidated forecast for the fiscal year ending March 31, 2017 (April 1, 2016 – March 31, 2017)(Percentage figures represent year on year changes)
Profit attributable toNet earnings
Net sales
Operating income
Ordinary income
owners of parent
per share
Million yen%
Million yen%
Million yen%
Million yen%
Yen
Full year
140,000
0.5
7,000
19.4
7,000
18.6
4,200
8.9
74.84
Note: Change in the forecast from the latest announcement: Yes

*Notes(1) Changes in significant subsidiaries (Changes of specific subsidiaries that accompanies scope change ofconsolidation): No(2) Use of accounting methods specifically for the preparation of the quarterly consolidated financial statements: No(3) Changes in accounting principles and estimates, and retrospective restatement(a) Changes due to revision of accounting standards: No(b) Changes other than (a): No(c) Changes in accounting estimates: No(d) Retrospective restatement: No(4) Number of shares outstanding (common stock)(a) Shares outstanding (including treasury shares)
As of December 31, 2016: 59,100,000
As of March 31, 2016: 59,100,000(b) Treasury shares
As of December 31, 2016: 2,983,946
As of March 31, 2016: 2,983,756(c) Average number of shares (quarterly consolidated cumulative period)
Period ended December 31, 2016: 56,116,178
Period ended December 31, 2015: 56,116,521* Auditing of financial statements is not conducted to this summary of financial results.
* Cautionary statement regarding forecasts and special notes(Note on forward looking statements)
Forward-looking statements in these materials are based on the information available to management at the time thisreport was prepared. Actual results may differ significantly from these statements for number of reasons.

(Reference) Non-consolidated forecast for the fiscal year ending March 31, 2017 (April 1, 2016 – March 31, 2017)(Percentage figures represent year on year changes)
Profit attributable toNet earnings
Net sales
Operating income
Ordinary income
owners of parent
per share
Million yen%
Million yen%
Million yen%
Million yen%
Yen
Full year
80,000
1.6
4,100
34.8
5,200
29.3
3,400
12.1
60.59
Note: Change in the forecast from the latest announcement: Yes

Index for Supplementary Information
1.

Quarterly Consolidated Financial Statements……………………………………………………………………

2(1) Quarterly consolidated balance sheet……………………………………………………………………………..

2(2) Quarterly consolidated statements of income and consolidated statements of comprehensive income…..

3

Quarterly consolidated statements of income…………………………………………………………………….

3

Quarterly consolidated statements of comprehensive income………………………………………………….

4(Reference) Non-consolidated Financial Statements

62.

3.

(1)

Quarterly Non-consolidated balance sheet..............................................................................................

6(2)Quarterly Non-consolidated statements of income and comprehensive income......................................

7Orders received and net sales.....................................................................................................................

711.

Quarterly Consolidated Financial Statements(1)

Quarterly consolidated balance sheet(Million yen)
Fiscal year ended March
2016(As of March 31, 2016)

Third quarter ended
December 2016
(As of December 31, 2016)

26,10630,201

51,08945,266

1,320

678

94

157

1,862
1,850

2,850
7,574

Deferred tax assets
Other

1,044
1,953

618
1,512

Allowance for doubtful accounts

(299)

(342)

85,02288,517

830

804

719

703

751

976

4,368
95

4,356
77

139

144

6,904

7,063

186

206

3,591

3,759

8858

7762

359
1,192282
1,028

ASSETS
Current assets
Cash and deposits
Notes receivable, accounts receivablefrom completed construction contracts
and other
Real estate for sale
Costs on uncompleted construction
contracts
Costs on real estate businessAccounts receivable

Total current assets
Noncurrent assets
Tangible Assets
Buildings and structures, net
Machinery, vehicles, tools, furnitureand fixtures, netVessels, net
Land
Lease assets, net
Construction in progress
Total Tangible assets
Intangible assets
Investments and other assets
Investment securities
Long-term loans receivable
Long-term accounts receivable
Deferred tax assets
OtherAllowance for doubtful accounts

(832)

(969)

Total investments and other assets

5,178

4,871

Total noncurrent assets
Total assets

2

12,26912,141

97,291

100,658(Million yen)
Fiscal year ended March
2016(As of March 31, 2016)

Third quarter ended
December 2016
(As of December 31, 2016)

18,583

17,030

1,291

1,051

5,520

7,596

552

569-3

LIABILITIESCurrent liabilities
Accounts payable for construction
contracts
Income taxes payable
Advances received on uncompleted
construction contracts
Provision for warranties for completed
construction
Provision for loss on construction
contracts
Provision for bonuses

1,604

676

Other

2,298

3,147

Total current liabilities

29,85030,074215

215

Noncurrent liabilities
Deferred tax liabilities for land
revaluation
Provision for special repairs of vessels
Retirement allowances
Other
Total noncurrent liabilities
Total liabilities

75

83

8,262
507

8,451
435

9,060

9,186

38,91039,261

NET ASSETS
Shareholders’ equity
Capital stock

5,000

5,000

Capital surplus
Retained earnings

23,766
31,45423,76634,292

Treasury shares(1,921)(1,921)

Total shareholders’ equity

58,29961,137491

608

4848(482)

(424)

57

232

Accumulated other comprehensive income
Valuation differences onavailable-for-sales securities
Revaluation reserve for landRemeasurements of retirement
allowance plans
Total accumulated other comprehensive
incomeNon-controlling interests
Total net assets
Total liabilities and net assets

323

27

58,38061,397

97,291

100,658

(2) Quarterly consolidated statements of income and consolidated statements of comprehensive income
Quarterly consolidated statements of income
For the third quarter of fiscal year ending March 31.2017 (April 1, 2016 – December 31, 2016)(Million yen)
Third quarter ended December Third quarter ended December
2015 (April 1, 20152016 (April 1, 2016December 31, 2015)
December 31, 2016)
Net sales
Net sales of completed construction
contracts
Sales on real estate businessTotal net sales
Cost of sales
Cost of sales of completed construction
contracts
Cost of sales on real estate businessTotal cost of sales
Gross profit
Gross profit on completed construction
contracts
Gross profit-real estate business

98,89998,5662,082943

100,98199,510

89,18586,2491,771

751

90,95787,0009,713

12.317310

191

10,024

12,509Selling, general and administrative expenses

5,747

6,415

Operating income

4,276

6,094

Non-operating income
Interest income

10

Dividend income
Other

68
79

38
23

Total non-operating income

149

62

Interest expense
Other

86
660
1

Total non-operating expenses

93

61

4,331

6,095

Gain on sales of non-current assets
Reversal of provision for loss on litigation

710-

Other0-Total extraordinary income

18-

Loss on litigation-6

Impairment loss

426-10Total gross profit

Non-operating expenses

Ordinary income (loss)
Extraordinary income

Extraordinary losses

Other
Total extraordinary losses

427

6

Income before income taxes

3,922

6,089

Income taxes-current

863

1,776

Income taxes-deferred(293)459

Total income taxes
Net earnings
Profit (loss) attributable to non-controllinginterests
Profit (loss) attributable to owners of parent

4570

2,235

3,352

3,853

(0)

5

3,352

3,848

Quarterly consolidated statements of comprehensive income
For the third quarter of fiscal year ending March 31.2017 (April 1, 2016 – December 31, 2016)(Million yen)
Third quarter ended December Third quarter ended December
2015 (April 1, 20152016 (April 1, 2016December 31, 2015)
December 31, 2016)
Quarterly net earnings
Other comprehensive income
Valuation difference on available-for-salesecurities
Remeasurements of retirement allowanceplans
Total other comprehensive income

3,351

3,853(19)

117

189

58169

175

Comprehensive income

3,522

4,028

3,522

4,023

(0)

5(This splits into…)
Comprehensive income attributable toowners of parent
Comprehensive income attributable tonon-controlling interests

52.

Quarterly non-consolidated Financial Statements(1)

Quarterly non-consolidated balance sheet(Million yen)
Fiscal year ended March
2016(As of March 31, 2016)

Third quarter ended
December 2016
(As of December 31, 2016)

14,10415,30729,43031,803

617

116

34

94

1,862
2,555

2,850
5,245

(163)

(245)

48,442

55,172

Tangible Assets
Intangible assets

3,346
118

3,272
126

Investments and other assets
Investment securities

ASSETS
Current assets
Cash and deposits
Notes receivable, accounts receivablefrom completed construction contracts
and otherReal estate for sale
Costs on uncompleted construction
contracts
Costs on real estate business
Other
Allowance for doubtful accounts
Total current assets
Noncurrent assets

11,741

11,874

Other
Allowance for doubtful accounts

1,904(698)

1,536
(798)

Total investments and other assets

12,947

12,612

Total noncurrent assets
Total assets
LIABILITIESCurrent liabilities
Accounts payable for construction
contracts
Income taxes payable
Advances received on uncompleted
construction contracts
Other
Total current liabilities

16,412

16,01164,854

71,184

8,431

8,984

561846

3,563

5,834

1,952

2,500

14,50818,165

4571
177

4,749
176

Noncurrent liabilities
Retirement allowances
Other
Total noncurrent liabilities
Total liabilities

4,748

4,926

19,25723,091

NET ASSETS
Shareholders’ equity
Capital stock

5,000

5,000

Capital surplus
Retained earnings

23,766
18,271

23,766
20,676

Treasury shares(1,921)(1,921)

Total shareholders’ equity

45,11647,521

479

571

479

571

45,59648,09264,854

71,184

Valuation and translation adjustments
Valuation differences onavailable-for-sales securities
Total valuation and translation
adjustments
Total net assets
Total liabilities and net assets

6

(2) Quarterly Non-consolidated statements of income and comprehensive income
For the third quarter of fiscal year ending March 31.2017 (April 1, 2016 – December 31, 2016)(Million yen)
Third quarter ended December Third quarter ended December
2015 (April 1, 20152016 (April 1, 2016December 31, 2015)
December 31, 2016)
Net sales
Net sales of completed construction
contracts
Sales on real estate businessTotal net sales
Cost of sales
Cost of sales of completed construction
contractsCost of sales on real estate businessTotal cost of sales
Gross profit
Gross profit on completed construction
contracts
Gross profit-real estate business

55,624

57,792

2,106

958

57,73158,75150,82050,7231,761

700

52,581

51,423

4,804

7,069

345

258

5,150

7,327

Selling, general and administrative expenses

2,955

3,523

Operating income

2,194

3,804

Non-operating income
Interest income

20

Dividend income
Other996
49

1,169
18

1,048

1,189

Interest expense
Other49
6350

Total non-operating expenses

5636

3,186

4,957

32

63,1534,951

215

1,536

2,938

3,414

Total gross profit

Total non-operating income
Non-operating expenses

Ordinary income (loss)
Extraordinary losses
Income before income taxes
Total income taxes
Quarterly net earnings

73.

Orders received and net sales(1) Consolidated(Million yen, %)3Q / FY 2015

3Q / FY 2016

(Apr 1, 2015 - Dec 31, 2015)(Apr 1, 2016 - Dec 31, 2016)

AmountShareAmountShare

Architecture

40,10232.9

34,44030.5

Ordersconstruction
Civil engineering

79,783

65.4

77,57368.7

received

Total construction

119,88598.3

112,014

99.2

Real estate

2,082

1.7

943

0.8

Total

121,967

100.0

112,958

100.0

Architecture

28,13827.8

33,051

33.3

Civil engineering

70,76070.1

65,515

65.8

Total construction

98,89997.998,566

99.1

Real estate

2,082

2.1

943

0.9

Total

100,981100.0

99,510100.0

Net sales(2) Non-consolidated(Million yen, %)3Q / FY 2015

3Q / FY 2016

(Apr 1, 2015 - Dec 31, 2015)
AmountArchitecture
construction

Share(Apr 1, 2016 - Dec 31, 2016)
AmountShare

Public15,072

8,709

Private23,45923,666

Subtotal

38,53152.0

32,375

Civil

Public24,111

18,383engineering

Private9,444

13,722

Subtotal
Total
received construction
Orders33,55645.2

32,106

Public39,18327,092

Private32,90337,389Total

73,08797.2

64,481

Public--Private

2,106

958

49.5

49.0

98.5

Real estate
Total

2,106

2.8

958

1.5

Public39,18352.8

27,092

41.4

Private35,01047.2

38,34858.6

74,194100.0

65,440100.0Architecture

26,80446.5

31,28953.3

Civil engineering

28,82049.9

26,50245.1

Net sales Total construction

55,62496.4

57,792

98.4Real estate

2,106

3.6

958

1.6

Total

57,731

100.0

58,751

100.0

Total

Disclaimer: All financial information has been prepared in accordance with generally accepted
accounting principles in Japan. This document is a partial English translation of the Japanese
Financial Statements which were filed with Stock Exchanges in Japan on February 7, 2017.
The Company provides this translation for your reference and convenience only without any
warranty as to its accuracy. In case of any discrepancy between the translation and theJapanese original, the latter shall prevail8