Translation
Notice: This document is an excerpt translation of the original Japanese document and is only for reference purposes. In the event of any
discrepancy between this translated document and the original Japanese document, the latter shall prevail.

Summary of Consolidated Financial Results
for the Six Months Ended September 30, 2014
(Based on Japanese GAAP)
November 6, 2014
Company name:Inabata & Co., Ltd.
Stock exchange listing: Tokyo
Stock code:
Representative:

8098
URL URL http://www.inabata.co.jp
Director, President
Katsutaro Inabata

Inquiries:
Director, Executive Officer
Scheduled date to file Quarterly Securities Report:

Kenichi Yokota
November 13, 2014

Scheduled date to commence dividend payments:
Preparation of supplementary material on quarterly financial results:

December 1, 2014
No

Holding of quarterly financial results meeting:

Yes

TEL

03-3639-6421(for institutional investors and analysts)(Amounts less than one million yen are rounded down)
1. Consolidated financial results for the six months ended September 30, 2014 (from April 1, 2014 to September 30, 2014)(1) Consolidated financial results (cumulative)

Percentages indicate year-on-year changes
Net sales

Six months ended September 30, 2014
Six months ended September 30, 2013

Millions of yen
277,707277,370

Operating income% Millions of yen
0.1
5,124
–
5,712

Net income per share% Millions of yen(10.3)
6,907
–
6,573

Net income% Millions of yen
5.1
5,086
–
4,562

%
11.5
–

Diluted net income per share

Yen
80.60
72.10

Six months ended September 30, 2014
Six months ended September 30, 2013

Ordinary income

Yen––(2) Consolidated financial position
Total assets

Net assets

Millions of yen
303,504
305,037As of September 30, 2014
As of March 31, 2014

Equity ratio

Millions of yen
116,666
115,881

%
38.2
37.7

2. Cash dividends
Annual dividends per share

Year ended March 31, 2014
Year ending March 31, 2015

1st quarter-end

2nd quarter-end

3rd quarter-end

Fiscal year-end

Yen
––Yen
11.00
15.00

Yen–

Yen
19.00

Yen
30.00

–

15.00

30.00

Year ending March 31, 2015 (Forecast)Total

3. Forecast of consolidated financial results for the year ending March 31, 2015 (from April 1, 2014 to March 31, 2015)
Net sales
Full year

Millions of yen570,000

Percentages indicate year-on-year changes
Net income
Operating income
Ordinary income
Net income
per share% Millions of yen% Millions of yen% Millions of yen%
Yen
1.6
10,500(4.0)
12,5000.4
8,200(5.4)
130.361

4. Notes(1) Changes in significant subsidiaries during the six months ended September 30, 2014(changes in specified subsidiaries resulting in the change in scope of consolidation):No(2) Application of special accounting methods for preparing quarterly consolidated financial statements:

No(3) Changes in accounting policies, changes in accounting estimates, and restatement of prior period financial statements
Changes in accounting policies due to revisions to accounting standards and other regulations:
Changes in accounting policies due to other reasons:

Yes
No

Changes in accounting estimates:
Restatement of prior period financial statements:

NoNo(4) Number of issued shares (common shares)
Total number of issued shares at the end of the period (including treasury shares)
As of September 30, 2014

63,499,227 shares As of March 31, 2014

65,159,227 shares

Number of treasury shares at the end of the period
As of September 30, 2014

826,278 shares As of March 31, 2014

1,886,225 shares

Average number of shares during the period (cumulative from the beginning of the fiscal year)
Six months ended September 30, 2014

63,101,543 shares Six months ended September 30, 2013

263,271,639 shares

Quarterly consolidated financial statements
Consolidated balance sheets(Millions of yen)
As of March 31, 2014

As of September 30, 2014

AssetsCurrent assets
Cash and deposits
Notes and accounts receivable - trade23,262
144,006

19,692
147,263

Merchandise and finished goods
Work in process38,125
332

39,771355

Raw materials and supplies
Other

3,310
6,823

3,553
10,269Allowance for doubtful accounts(1,202)(1,137)

Total current assets

214,659

219,767

Property, plant and equipment
Intangible assets

11,656
3,690

12,1293,476

Investments and other assets
Investment securities

69,78562,540Net defined benefit asset
Other

2,023
4,694

2,218
4,856

Non-current assets

Allowance for doubtful accounts(1,471)(1,485)

Total investments and other assets

75,031

68,131

Total non-current assets

90,37883,736305,037

303,504

Notes and accounts payable - trade
Short-term loans payable

84,00863,13487,23456,596

Income taxes payable
Provision for bonuses

1,890
1,171

1,588
1,266

Provision for loss on business liquidation
Other

40
4,831

–
5,427

155,076

152,112

13,44816,444

28
42

31
–

Provision for loss on guarantees
Net defined benefit liability

18
1,277

18
1,286

Other

19,263

16,943

Total non-current liabilities

34,08034,725

189,156

186,838

Total assets
Liabilities
Current liabilities

Total current liabilities
Non-current liabilities
Long-term loans payable
Provision for directors' retirement benefits
Provision for loss on business liquidation

Total liabilities

3

(Millions of yen)
As of March 31, 2014

As of September 30, 2014

Net assets
Shareholders' equity
Capital stock

9,364

9,364

Capital surplus
Retained earnings

7,708
64,272

7,708
67,037

Treasury shares

(932)

(475)

80,413

83,634

Valuation difference on available-for-sale securities
Deferred gains or losses on hedges

33,862(20)

29,259(77)

Foreign currency translation adjustment
Remeasurements of defined benefit plans

1,609(854)3,888(798)

Total accumulated other comprehensive income

34,59632,271

871

759

Total shareholders' equity
Accumulated other comprehensive income

Minority interests
Total net assets
Total liabilities and net assets

4115,881

116,666

305,037

303,504

Consolidated statements of income (cumulative) and consolidated statements of comprehensive income(cumulative)
Consolidated statements of income (cumulative)(Millions of yen)Six months ended
September 30, 2013

Six months ended
September 30, 2014

Net sales

277,370

277,707

Cost of sales

258,425

258,854

Gross profit

18,94518,853

Selling, general and administrative expenses

13,232

13,729Operating income

5,712

5,124

Interest income
Dividend income

146
459

136
1,325

Foreign exchange gains
Share of profit of entities accounted for using equity method

149
274

26
257

Miscellaneous income

350

598

1,379

2,343

Interest expenses
Miscellaneous loss

458
60

450
110

Total non-operating expenses

519

560

6,573

6,907

–

247

133

–

110

–

Non-operating income

Total non-operating income
Non-operating expenses

Ordinary income
Extraordinary income
Gain on sales of investment securities
Gain on reversal of loss on valuation of stocks of subsidiaries
and affiliates
Insurance income

243

247

Income before income taxes and minority interests

Total extraordinary income

6,817

7,155

Income taxes - current

1,839

2,060

Income taxes - deferred

324

(57)

Total income taxes

2,164

2,003

Income before minority interests

4,652

5,151

Minority interests in income
Net income

590

65

4,562

5,086

Consolidated statements of comprehensive income (cumulative)(Millions of yen)Six months ended
September 30, 2013
Income before minority interests

Six months ended
September 30, 2014

4,652

5,151

Valuation difference on available-for-sale securities
Deferred gains or losses on hedges(3,716)(7)(4,680)(57)

Foreign currency translation adjustment
Remeasurements of defined benefit plans, net of tax

878
–

2,302
56

Share of other comprehensive income of entities accounted
for using equity method

293

75

(2,552)(2,304)

2,100

2,847

1,997
103

2,761
85

Other comprehensive income

Total other comprehensive income
Comprehensive income
Comprehensive income attributable toComprehensive income attributable to owners of parent
Comprehensive income attributable to minority interests

6Consolidated statements of cash flows(Millions of yen)Six months ended
September 30, 2013

Six months ended
September 30, 2014

Cash flows from operating activities
Income before income taxes and minority interests

6,817

7,155

Depreciation
Increase (decrease) in allowance for doubtful accounts

1,071
(65)

1,049
(108)

Interest and dividend income
Interest expenses

(606)
458

(1,461)450

Share of (profit) loss of entities accounted for using equity
method(274)(257)

8(83)

Loss (gain) on sales of non-current assets
Loss (gain) on sales of investment securities

(12)
–

–
(247)

Insurance income
Gain on reversal of loss on valuation of stocks of subsidiaries

(110)

–

Increase (decrease) in provision for loss on businessliquidation

and affiliates
Decrease (increase) in notes and accounts receivable - trade

(133)

–

(4,755)

1,352

Decrease (increase) in inventories
Decrease (increase) in other current assets(3,564)(741)(65)(2,784)

Decrease (increase) in other non-current assets
Increase (decrease) in notes and accounts payable - trade21(1,187)

(184)
525

(996)
18

327
125

(4,049)5,791Interest and dividend income received

629

1,658

Interest expenses paid

(472)

(440)

Proceeds from insurance income
Income taxes paid

110
(1,694)–(2,402)

Net cash provided by (used in) operating activities(5,476)

4,607

Payments into time deposits(2,002)(582)

Proceeds from withdrawal of time deposits
Purchase of property, plant and equipment

141(1,738)561(929)

Proceeds from sales of property, plant and equipment
Purchase of intangible assets

57(220)43(80)

Purchase of investment securities
Proceeds from sales of investment securities

(11)
3(30)
607

Purchase of shares of subsidiaries
Proceeds from liquidation of subsidiaries

(296)
613

(342)
–Net decrease (increase) in short-term loans receivable
Payments of long-term loans receivable

(29)
(2)

(38)
(9)

Collection of long-term loans receivable
Other, net

309
2107
(31)

(3,173)(724)

Increase (decrease) in other current liabilities
Other, net
Subtotal

Cash flows from investing activities

Net cash provided by (used in) investing activities

7(Millions of yen)Six months ended
September 30, 2013

Six months ended
September 30, 2014

Cash flows from financing activities
Net increase (decrease) in short-term loans payable

2,225(7,498)Proceeds from long-term loans payable
Repayments of long-term loans payable

2,000(45)4,015(2,976)

Purchase of treasury shares
Cash dividends paid

(0)
(825)

(604)
(1,206)

Cash dividends paid to minority shareholders
Other, net(66)
(56)

(196)
(54)

3,231(8,521)

Net cash provided by (used in) financing activities
Effect of exchange rate change on cash and cash equivalents

390

518

Net increase (decrease) in cash and cash equivalents(5,028)(4,120)Cash and cash equivalents at beginning of period

18,985

18,402

Increase in cash and cash equivalents from newly consolidated
subsidiary–

210

Increase (decrease) in cash and cash equivalents resulting fromchange in fiscal year-end of certain subsidiaries

1,143–Cash and cash equivalents at end of period

15,10014,4928