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 Year Ended March 31, 2014
(Based on Japanese GAAP)May 8, 2014
Company name:Inabata & Co., Ltd.

Stock exchange listing: Tokyo
Stock code:
8098
Representative:
Inquiries:

URL

URL http://www.inabata.co.jp

Director, President
Director, Executive Officer

Katsutaro Inabata
Kenichi Yokota

Scheduled date of ordinary general meeting of shareholders:
Scheduled date to file Securities Report:

June 25, 2014
June 26, 2014

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

June 4, 2014
No

Holding of 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 year ended March 31, 2014 (from April 1, 2013 to March 31, 2014)(1) Consolidated financial results
Percentages indicate year-on-year changes
Net salesYear ended March 31, 2014
Year ended March 31, 2013

Millions of yen
561,173
479,942

Operating income%
16.9–

Millions of yen
10,936
7,765

Ordinary income

%
40.8
–

Millions of yen
12,454
9,603%
29.7–

Net income
Millions of yen
8,669
6,630

Diluted net income
Ordinary
Net income/equity
per share
income/total assets
Yen
Yen%
%
137.01–
8.1
4.3
104.29–7.6
3.6

Net income per share
Year ended March 31, 2014
Year ended March 31, 2013

%
30.7
–

Operatingincome/net sales%
1.9
1.6(2) Consolidated financial positionTotal assets
As of March 31, 2014
As of March 31, 2013

Net assets

Equity ratio

Millions of yen
305,037
276,938

Millions of yen
115,881
98,665

Cash flows fromoperating activities
Millions of yen(764)
19,400Cash flows frominvesting activities
Millions of yen(5,467)277

Net assets per share%
37.7
35.3

Yen
1,817.68
1,547.09(3) Consolidated cash flows

Year ended March 31, 2014
Year ended March 31, 2013

Cash and cash equivalents
Cash flows fromat end of period
financing activities
Millions of yen
Millions of yen
3,638
18,402(12,880)
18,985

2. Cash dividends
Ratio ofDividend
Total cash
topayout ratio dividends
dividends (Total) (Consolidated)
net assets(Consolidated)

Annual dividends per share
1st quarter-end 2nd quarter-end 3rd quarter-end Fiscal year-end

Total

Yen

Yen

Yen

Yen

Yen

Millions of yen%%

Year ended March 31, 2013
Year ended March 31, 2014

––

10.00
11.00

––

13.00
19.00

23.00
30.00

1,460
1,904

22.1
21.9

1.7
1.8

Year ending March 31, 2015 (Forecast)

–

15.00

–

15.00

30.00

125.3

3. Forecast of consolidated financial results for the year ending March 31, 2015 (from April 1, 2014 to March 31, 2015)
Net sales
Millions of yen
Six months ending
September 30, 2014
Full year

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

280,000

1.5

5,200(8.4)

6,200(5.1)

3,700(18.4)

58.48

570,000

1.6

11,0000.6

12,5000.4

7,500(13.5)

118.54

4. Notes(1) Changes in significant subsidiaries during the year ended March 31, 2014(changes in specified subsidiaries resulting in the change in scope of consolidation):Yes(2) 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:
Yes
Changes in accounting policies due to other reasons:
Changes in accounting estimates:

Yes
Yes

Restatement of prior period financial statements after error corrections:No(3) Number of issued shares (common shares)
Total number of issued shares at the end of the period (including treasury shares)
As of March 31, 2014

65,159,227 shares As of March 31, 2013

65,159,227 shares

Number of treasury shares at the end of the period
As of March 31, 2014

1,886,225 shares As of March 31, 2013

1,887,522 shares

63,271,936 shares Year ended March 31, 2013

63,576,451 shares

Average number of shares during the period
Year ended March 31, 20142

Consolidated financial statements
Consolidated balance sheets(Millions of yen)
As of March 31, 2013

As of March 31, 2014

AssetsCurrent assets
Cash and deposits
Notes and accounts receivable – trade

19,258
137,571

23,262
144,006

Merchandise and finished goods
Work in process

31,418705

38,125332

Raw materials and supplies
Deferred tax assets

2,616
709

3,310
1,058

Other
Allowance for doubtful accounts

5,695
(666)

5,764
(1,202)

197,308

214,659

11,613(7,956)

12,551(8,670)

Buildings and structures, net

3,657

3,881

Machinery, equipment and vehicles

12,602

15,546

Accumulated depreciation(9,518)(10,845)

Machinery, equipment and vehicles, net

3,084

4,700

2,014

2,087

90134

2,773
(1,930)2,775(1,922)

Total current assets
Non–current assets
Property, plant and equipment
Buildings and structures
Accumulated depreciation

Land
Construction in progress
Other
Accumulated depreciation
Other, net

843

852

9,690

11,656

Intangible assets

4,220

3,690

Investments and other assets
Investment securities

Total property, plant and equipment

60,27869,785

Long–term loans receivable
Net defined benefit asset

1,541
–

1,574
2,023

Deferred tax assets
Other

308
4,626

420
2,700

Allowance for doubtful accounts(1,036)(1,471)

Total investments and other assets

65,71875,031

Total non–current assets
Total assets

379,629

90,378276,938

305,037(Millions of yen)
As of March 31, 2013

As of March 31, 2014

Liabilities
Current liabilities
Notes and accounts payable – trade85,78984,008

Short–term loans payable
Income taxes payable

57,341
1,429

63,134
1,890

Accrued expenses
Provision for bonuses

1,275
908

1,083
1,171

Provision for loss on business liquidation
Other305
3,413

40
3,747

150,463

155,076

Long–term loans payable

10,73013,448Deferred tax liabilities
Provision for retirement benefits

14,700638

17,608–Provision for directors' retirement benefits
Provision for loss on business liquidation

2234

28
42

Provision for loss on guarantees
Net defined benefit liability

18–

18
1,277

Total current liabilities
Non–current liabilities

Other

1,664

1,654

Total non–current liabilities

27,80834,080178,272

189,156

Capital stock
Capital surplus

9,364
7,708

9,364
7,708

Retained earnings
Treasury shares

55,876(934)

64,272(932)

Total shareholders' equity

72,01580,413

Valuation difference on available–for–sale securities

28,69233,862

Deferred gains or losses on hedges
Foreign currency translation adjustment30(2,850)

(20)
1,609

Total liabilities
Net assets
Shareholders' equity

Accumulated other comprehensive income

Remeasurements of defined benefit plans
Total accumulated other comprehensive income–(854)

25,871

34,596

Minority interests

778

871

Total net assets

98,665

115,881276,938

305,037

Total liabilities and net assets

4Consolidated statements of income and consolidated statements of comprehensive income
Consolidated statements of income(Millions of yen)
Fiscal year ended

Fiscal year ended

March 31, 2013

March 31, 2014

Net sales

479,942

561,173

Cost of sales

446,939522,662

Gross profit

33,00238,511

Selling, general and administrative expenses

25,237

27,574

Operating income

7,765

10,936

262

323

1,353
83

866
180

568
775

505
835

3,044

2,710

968

938

Non–operating income
Interest income
Dividend income
Foreign exchange gains
Share of profit of entities accounted for using equity method
Miscellaneous income
Total non–operating income
Non–operating expenses
Interest expensesMiscellaneous loss
Total non–operating expenses
Ordinary income

237

254

1,205

1,192

9,603

12,454Extraordinary income
Gain on sales of shares of subsidiaries and associates

–

1,116

130

220–

131–

109

Gain on sales of investment securities
Gain on sale of goodwill

321
291

–
–

Total extraordinary income

742

1,577–

553

Impairment loss
Loss on valuation of investment securities

216–

377
221

Loss on sales of shares of subsidiaries and associates
Provision for loss on business liquidation

110
280

136
–

Loss on valuation of shares of subsidiaries and associates

257–

Gain on sales of non–current assets
Gain on reversal of loss on valuation of stocks of subsidiaries
and affiliates
Insurance income

Extraordinary losses
Loss on liquidation of subsidiaries and associates

865

1,289

Income before income taxes and minority interests

Total extraordinary losses

9,481

12,742

Income taxes – current

2,366

3,354

–
336

174
341

Total income taxes

2,702

3,871

Income before minority interests

6,778

8,871

147

202

6,630

8,669

Income taxes for prior periods
Income taxes – deferred

Minority interests in income
Net income

5Consolidated statements of comprehensive income (cumulative)(Millions of yen)
Fiscal year ended
March 31, 2013
Income before minority interests

Fiscal year ended
March 31, 2014
6,778

8,871

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

12,849
(3)

5,054
(45)

Foreign currency translation adjustment
Share of other comprehensive income of entities accounted

3,240

2,211

285

133

Other comprehensive income

for using equity method
Total other comprehensive income

16,3707,354

23,14916,225Comprehensive income attributable to owners of parent

23,01416,002Comprehensive income attributable to minority interests

135222Comprehensive income
Comprehensive income attributable to6

Consolidated statements of changes in net assets
Fiscal year ended March 31, 2013
(Millions of yen)
Shareholders' equity
Capital stock
Balance at beginning ofcurrent period

Capital surplus

9,364

Retained earnings

7,708

50,908Cumulative effect of changes
in accounting policies

Total shareholders'equity

Treasury shares(495)

67,485(260)

Retained earnings as restated

9,364

7,708

(260)

50,647(495)

67,225

Changes of items during
periodDividends of surplus(1,401)(1,401)

Net income

6,630

6,630

Purchase of treasury shares

(439)

(439)

Disposal of treasury shares–

Change of scope of equity
method–Change in treasury sharesarising from change inequity in entities accounted
for using equity method

00

Net changes of items otherthan shareholders' equity
Total changes of items during
periodBalance at end of current
period

–

–

5,228

(438)

4,790

9,364

7,708

55,876(934)

72,015

Accumulated other comprehensive income

Balance at beginning ofcurrent period

Valuationdifference on
available–for–sale securities

Deferred gains
or losses onhedges15,80933

Foreigncurrencytranslation
adjustment(6,355)

Cumulative effect of changes
in accounting policies
Retained earnings as restatedTotal
accumulated
otherof defined benefit
comprehensive
plansincomeRemeasurements–

260
15,809

33

6,094

9,488

Minority
interests

Total net assets

756

260
–

9,748

77,730–756

77,730Changes of items during
periodDividends of surplus(1,401)

Net income

6,630

Purchase of treasury shares(439)

Disposal of treasury shares–

Change of scope of equity
method–Change in treasury sharesarising from change inequity in entities accounted
for using equity method0

Net changes of items otherthan shareholders' equity

12,882

(3)

3,244

–

16,12321

16,144

Total changes of items during
period12,882

(3)

3,244

–

16,123

21

20,934

Balance at end of current
period28,69230(2,850)–25,871

778

98,665

7

Fiscal year ended March 31, 2014
(Millions of yen)
Shareholders' equity
Capital stock
Balance at beginning ofcurrent period

Capital surplus

9,364

Retained earnings

7,708

Total shareholders'equityTreasury shares

55,876(934)

72,015

Changes of items duringperiod
Dividends of surplus(1,518)Net income

8,669(1,518)8,669

Purchase of treasury shares
Disposal of treasury shares

0Change of scope of equity
method

(0)

(0)

11333

333

Change in treasury sharesarising from change inequity in entities accounted
for using equity method0Effect of changes inaccounting period

0912

912

Net changes of items otherthan shareholders' equity
Total changes of items during
periodBalance at end of current
period–08,39628,398

9,364

7,708

64,272(932)

80,413

Accumulated other comprehensive income

Balance at beginning ofcurrent period

Valuationdifference on
available–for–sale securities

Deferred gains
or losses onhedges28,69230

Foreigncurrencytranslation
adjustment(2,850)Total
accumulated
otherof defined benefit
comprehensive
plansincomeRemeasurements–

25,871

Minority
interests

Total net assets

778

98,665

Changes of items during
periodDividends of surplus(1,518)Net income

8,669Purchase of treasury shares(0)

Disposal of treasury shares

1

Change of scope of equity
method333

Change in treasury sharesarising from change inequity in entities accounted
for using equity method0Effect of changes inaccounting period

912

Net changes of items otherthan shareholders' equity

5,169

(50)

4,459

(854)

8,724

92

8,817

Total changes of items during
period

5,169

(50)

4,459

(854)

8,724

92

17,215

Balance at end of current
period33,862(20)

1,609(854)34,596871

115,8818Consolidated statements of cash flows(Millions of yen)
Fiscal year ended
March 31, 2013

Fiscal year ended
March 31, 2014

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

9,481

12,742

Depreciation
Impairment loss

3,047
216

2,179
377

Increase (decrease) in allowance for doubtful accounts
Interest and dividend income(589)(1,616)630(1,189)968

938(568)(505)

Interest expenses
Share of (profit) loss of entities accounted for using equity
methodIncrease (decrease) in provision for loss on businessliquidation
Loss (gain) on sales of non–current assets

101(214)

(130)

(220)

Loss (gain) on sales of investment securities
Loss (gain) on valuation of investment securities

(321)
––
221

Loss (gain) on sales of shares of subsidiaries and associates
Loss on valuation of shares of subsidiaries and associates

110
257

(980)
–

Gain on reversal of loss on valuation of stocks of subsidiaries
and affiliates

–

(131)

Loss on liquidation of subsidiaries and associates
Insurance income

––

553
(109)

(291)
9,311

–
(1,671)

Decrease (increase) in inventories
Decrease (increase) in other current assets

74
212(3,792)(464)

Decrease (increase) in other non–current assets
Increase (decrease) in notes and accounts payable – trade

519
(324)

(615)
(4,977)

Increase (decrease) in other current liabilities
Other, net

(868)
41

(1,036)99

Subtotal

19,631

1,835Interest and dividend income received

1,647

1,237

Interest expenses paid

(986)

(953)

Proceeds from compensation
Proceeds from insurance income

159
––109

Income taxes paid
Refund of corporate tax(1,744)692(2,993)–Net cash provided by (used in) operating activities

19,400(764)Gain on sales of Goodwill
Decrease (increase) in notes and accounts receivable – trade9

(Millions of yen)
Fiscal year ended
March 31, 2013

Fiscal year ended
March 31, 2014

Cash flows from investing activities
Payments into time deposits(768)(4,788)1,038(1,469)271(3,162)

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

391(312)272(272)

Proceeds from sales of intangible assets
Purchase of investment securities–(77)

142(249)

Proceeds from sales of investment securities
Proceeds from redemption of investment securities

869
100

1,466
–

Purchase of shares of subsidiaries
Proceeds from liquidation of subsidiaries(386)–(774)
616

Payments for sales of shares of subsidiaries resulting inchange in scope of consolidation

(14)

(56)

Decrease (increase) in short–term loans receivable
Payments of long–term loans receivable

(116)
(4)

616
(4)

Collection of long–term loans receivable
Income of sales of goodwill

806
291

437
–

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

Other, net

(69)

17

Net cash provided by (used in) investing activities

277(5,467)

Net increase (decrease) in short–term loans payable
Proceeds from long–term loans payable(9,409)
4,000

3,775
6,500

Repayments of long–term loans payable
Purchase of treasury shares(5,404)(439)(4,884)(0)Cash dividends paid
Cash dividends paid to minority shareholders(1,406)(123)(1,523)
(127)

(97)

(101)

Cash flows from financing activities

Other, net
Net cash provided by (used in) financing activities(12,880)

3,638

Effect of exchange rate change on cash and cash equivalents

1,233867

Net increase (decrease) in cash and cash equivalents

8,031(1,726)

Cash and cash equivalents at beginning of period

10,75618,985

197

––

1,143

18,985

18,402

Increase (decrease) in cash and cash equivalents resulting fromchange of scope of consolidation
Increase (decrease) in cash and cash equivalents resulting fromchange in fiscal year–end of certain subsidiaries
Cash and cash equivalents at end of period10