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, 2015
(Based on Japanese GAAP)May 8, 2015
Company name:Inabata & Co., Ltd.

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

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 24, 2015
June 25, 2015

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

June 3, 2015
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, 2015 (from April 1, 2014 to March 31, 2015)(1) Consolidated financial results
Percentages indicate year-on-year changesNet sales
Year ended March 31, 2015
Year ended March 31, 2014

Millions of yen
572,114561,173

Operating income
%
1.9
16.9

Millions of yen
10,774
10,936

Diluted net income
per share
Yen
Yen
137.20–137.01–

Net income per share
Year ended March 31, 2015
Year ended March 31, 2014

Ordinary income% Millions of yen(1.5)
13,21740.8
12,454%
6.1
29.7

Net income
Millions of yen
8,630
8,669

Ordinary
income/total assets
%%
7.1
4.2
8.1
4.3

Net income/equity%
(0.4)
30.7

Operatingincome/net sales%
1.9
1.9(2) Consolidated financial position
Total assets
As of March 31, 2015
As of March 31, 2014

Net assets

Equity ratio

Millions of yen
326,862305,037

Millions of yen
128,526
115,881

Cash flows fromoperating activities
Millions of yen
8,354
(764)

Cash flows frominvesting activities
Millions of yen(3,044)(5,467)

Net assets per share%
39.1
37.7

Yen
2,036.31
1,817.68(3) Consolidated cash flows

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

Cash flows from
Cash and cash equivalents
at end of period
financing activities
Millions of yen
Millions of yen(8,193)
17,394
3,638
18,402

2. Cash dividends
Ratio ofDividend
Total cash
dividends topayout ratio
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, 2014
Year ended March 31, 2015

––

11.00
15.00

–
–

19.00
18.00

30.00
33.00

1,904
2,075

21.9
24.1

1.8
1.7

Year ending March 31, 2016 (Forecast)–16.00

–

17.00

33.00

124.3

3. Forecast of consolidated financial results for the year ending March 31, 2016 (from April 1, 2015 to March 31, 2016)
Net sales
Millions of yen
Six months ending
September 30, 2015
Full year

Percentages indicate year-on-year changes
Profit attributable toNet income
Operating income
Ordinary income
owners of parent
per share% Millions of yen% Millions of yen% Millions of yen%
Yen

300,000

8.0

5,600

9.3

6,300

(8.8)

4,200

(17.4)

66.99

610,000

6.6

11,5006.7

12,800

(3.2)

8,500

(1.5)

135.57

4. Notes(1) Changes in significant subsidiaries during the year ended March 31, 2015(changes in specified subsidiaries resulting in the change in scope of consolidation):No(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:

No
No

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, 2015

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 March 31, 2015

801,996 shares As of March 31, 2014

1,886,225 shares

62,905,588 shares Year ended March 31, 2014

63,271,936 shares

Average number of shares during the period
Year ended March 31, 20152

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

As of March 31, 2015

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

23,572
155,960

Merchandise and finished goods
Work in process

38,125332

44,477452

Raw materials and supplies
Deferred tax assets

3,310
1,058

3,213
456

Other
Allowance for doubtful accounts

5,764(1,202)

8,248(1,406)

Total current assets

214,659

234,975

12,551(8,670)12,854(8,930)

Buildings and structures, net

3,881

3,924

Machinery, equipment and vehicles
Accumulated depreciation

15,546(10,845)

17,244(12,650)

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

4,700

4,594

Land
Construction in progress

Machinery, equipment and vehicles, net

2,087
134

2,129
1,127

Other
Accumulated depreciation

2,775(1,922)

2,995(2,121)Other, net

852

873

11,656

12,649Intangible assets

3,690

3,624

Investments and other assets
Investment securities

Total property, plant and equipment

69,78568,255Long-term loans receivable
Net defined benefit asset

1,574
2,023

1,531
3,795

Deferred tax assets
Other

420
2,700

576
2,267

Allowance for doubtful accounts(1,471)(814)

Total investments and other assets

75,031

75,612

Total non-current assets
Total assets

390,378

91,886305,037

326,862(Millions of yen)
As of March 31, 2014

As of March 31, 2015

Liabilities
Current liabilities
Notes and accounts payable - trade

84,00891,158

Short-term loans payable
Income taxes payable

63,134
1,890

54,4601,650

Accrued expenses
Provision for bonuses

1,083
1,171

1,297
1,150

Provision for loss on business liquidation
Other40
3,747–
4,997

Total current liabilities

155,076

154,713

Non-current liabilities
Long-term loans payable

13,44824,354

Deferred tax liabilities
Provision for directors' retirement benefits

17,60828

16,63033

Provision for loss on business liquidation
Provision for loss on guarantees

42
18

–18

1,277
1,654

909
1,675

Net defined benefit liability
Other
Total non-current liabilities

34,08043,622

189,156

198,335

Shareholders' equity
Capital stock

9,364

9,364

Capital surplus
Retained earnings

7,708
64,272

7,708
68,837

Total liabilities
Net assets

Treasury shares

(932)

(469)

80,41385,440Valuation difference on available-for-sale securities
Deferred gains or losses on hedges

33,862(20)

34,934(78)

Foreign currency translation adjustment
Remeasurements of defined benefit plans

1,609
(854)

6,911
463

Total accumulated other comprehensive income

34,59642,230Total shareholders' equity
Accumulated other comprehensive income

Minority interests
Total net assets
Total liabilities and net assets

4871

855

115,881

128,526

305,037

326,862

Consolidated statements of income and consolidated statements of comprehensive income
Consolidated statements of income(Millions of yen)
Fiscal year ended
March 31, 2014

Fiscal year ended
March 31, 2015

Net sales

561,173

572,114

Cost of sales

522,662533,073

Gross profit

38,511

39,040

Selling, general and administrative expenses

27,57428,266

Operating income

10,936

10,774323

273

Dividend income
Foreign exchange gains

866
180

2,017
81

Share of profit of entities accounted for using equity method
Miscellaneous income

505
835

515
985

2,710

3,873

938

945

Non-operating income
Interest income

Total non-operating income
Non-operating expenses
Interest expensesMiscellaneous loss
Total non-operating expenses
Ordinary income
Extraordinary income
Gain on sales of investment securities
Gain on sales of shares of subsidiaries and associates
Gain on sales of non-current assets
Gain on reversal of loss on valuation of stocks of subsidiaries
and affiliates
Insurance income

254

484

1,192

1,430

12,454

13,217–

293

1,116
220––

131–

109–

1,577

293

Impairment loss
Loss on liquidation of subsidiaries and associates

377
553

371
–

Loss on valuation of investment securities
Loss on sales of shares of subsidiaries and associates

221
136

–
–

Total extraordinary income
Extraordinary losses

1,289

371

Income before income taxes and minority interests

Total extraordinary losses

12,742

13,139

Income taxes - current
Income taxes for prior periods

3,354
174

3,429
–

Income taxes - deferred

341

945

Total income taxes

3,871

4,375

Income before minority interests

8,871

8,764

202

133

8,669

8,630

Minority interests in income
Net income

5Consolidated statements of comprehensive income(Millions of yen)

Income before minority interests
Other comprehensive income

Fiscal year ended

Fiscal year ended

March 31, 2014

March 31, 2015
8,871

8,764

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

5,054
(45)

946
(58)

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

2,211
–

5,260
1,318

133

310

7,354

7,778

16,225

16,542

16,002
222

16,326
216

Share of other comprehensive income of entities accounted
for using equity method
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 changes in net assets
Fiscal year ended March 31, 2014
(Millions of yen)
Shareholders' equity
Capital stock
Balance at beginning ofcurrent period
Changes of items during
periodCapital surplus

9,364

Retained earnings

7,708

Total shareholders'equity

Treasury shares

55,876(934)

72,015

Dividends of surplus(1,518)(1,518)Net income

8,669

8,669

Purchase of treasury shares

(0)

(0)

Retirement of treasury
shares–Disposal of treasury shares

0Change in treasury sharesarising from change inequity in entities accounted
for using equity method
Change of scope ofconsolidation
Change of scope of equity
methodEffect of changes inaccounting period
Net changes of items otherthan shareholders' equity
Total changes of items during
periodBalance at end of current
period

1100–
333

333

912

912

–

0

8,396

2

8,398

9,364

7,708

64,272(932)

80,413

Accumulated other comprehensive income

Balance at beginning ofcurrent period
Changes of items during
periodValuationdifference on
available-forsale securities

Deferred gains
or losses onhedges28,69230

Foreigncurrencytranslation
adjustment(2,850)Remeasurementsof defined benefit
plans

Total
accumulated
othercomprehensive
income–25,871

Minority
interests

Total net assets

778

98,665

Dividends of surplus(1,518)Net income

8,669

Purchase of treasury shares(0)

Retirement of treasury
shares–

Disposal of treasury shares

1

Change in treasury sharesarising from change inequity in entities accounted
for using equity method
Change of scope ofconsolidation
Change of scope of equity
methodEffect of changes inaccounting period
Net changes of items otherthan shareholders' equity
Total changes of items during
periodBalance at end of current
period

0–
333
912
5,169

(50)

4,459(854)

8,724

92

8,817

5,169

(50)

4,459(854)

8,724

92

17,21533,862(20)

1,609(854)34,596871

115,8817

Fiscal year ended March 31, 2015
(Millions of yen)
Shareholders' equity
Capital stock
Balance at beginning ofcurrent period
Changes of items during
periodCapital surplus

9,364

Retained earnings

7,708

64,272

Dividends of surplus(2,142)

Net income

8,630

(932)

(0)

Disposal of treasury shares

0Change in treasury sharesarising from change inequity in entities accounted
for using equity method
Change of scope ofconsolidation
Change of scope of equity
methodEffect of changes inaccounting period
Net changes of items otherthan shareholders' equity
Total changes of items during
periodBalance at end of current
period80,413(2,142)
8,630

Purchase of treasury shares
Retirement of treasury
sharesTotal shareholders'equityTreasury shares(1,060)

(604)

(604)

1,060

–00665858(921)

(921)
–––

(0)

4,564

462

5,026

9,364

7,708

68,837(469)

85,440

Accumulated other comprehensive income

Balance at beginning ofcurrent period
Changes of items during
periodValuationdifference on
available-forsale securities

Deferred gains
or losses onhedges

33,862(20)

Foreigncurrencytranslation
adjustment
1,609

Remeasurementsof defined benefit
plans

Total
accumulated
othercomprehensiveincome(854)

34,596

Minority
interests

871

Total net assets

115,881

Dividends of surplus(2,142)

Net income

8,630

Purchase of treasury shares(604)

Retirement of treasury
shares–

Disposal of treasury shares

0Change in treasury sharesarising from change inequity in entities accounted
for using equity method
Change of scope ofconsolidation
Change of scope of equity
methodEffect of changes inaccounting period
Net changes of items otherthan shareholders' equity
Total changes of items during
periodBalance at end of current
period

658
(921)
–
1,072

(58)

5,301

1,318

7,634

(15)

7,618

1,072

(58)

5,301

1,318

7,634

(15)

12,64534,934

(78)

6,911

463

42,230855

128,526

8Consolidated statements of cash flows(Millions of yen)

Cash flows from operating activities
Income before income taxes and minority interests
Depreciation
Impairment loss
Increase (decrease) in allowance for doubtful accounts
Interest and dividend income
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
Loss (gain) on sales of investment securities
Loss (gain) on valuation of investment securities
Loss (gain) on sales of shares of subsidiaries and associates
Gain on reversal of loss on valuation of stocks of subsidiaries
and affiliates
Loss on liquidation of subsidiaries and associates
Insurance income
Decrease (increase) in notes and accounts receivable - trade
Decrease (increase) in inventories
Decrease (increase) in other current assets
Decrease (increase) in other non-current assets
Increase (decrease) in notes and accounts payable - trade
Increase (decrease) in other current liabilities
Other, net

Fiscal year ended

Fiscal year ended

March 31, 2014

March 31, 201512,742
2,179
377
630
(1,189)938

13,139
2,150
371
(614)
(2,291)
945

(505)

(515)

(214)

(84)

(220)
–221(980)–(293)
––

(131)

–

553
(109)
(1,671)(3,792)(464)(615)(4,977)(1,036)99––(1,050)(2,036)(1,536)
387
1,129
917
(4)

Subtotal

1,835

10,614

Interest and dividend income received
Interest expenses paid
Proceeds from insurance income
Income taxes paid

1,237
(953)
109
(2,993)

2,487
(929)
–
(3,818)

(764)

8,354

(4,788)271(3,162)272(272)142(249)
1,466
(774)
616

(5,821)
5,185(2,151)61(514)
–
(45)
754
(400)
–

(56)

–

616
(4)
437
17(68)(248)
222(16)(5,467)(3,044)

Net cash provided by (used in) operating activities
Cash flows from investing activities
Payments into time deposits
Proceeds from withdrawal of time deposits
Purchase of property, plant and equipment
Proceeds from sales of property, plant and equipment
Purchase of intangible assets
Proceeds from sales of intangible assets
Purchase of investment securities
Proceeds from sales of investment securities
Purchase of shares of subsidiaries
Proceeds from liquidation of subsidiaries
Payments for sales of shares of subsidiaries resulting inchange in scope of consolidation
Decrease (increase) in short-term loans receivable
Payments of long-term loans receivableCollection of long-term loans receivable
Other, net
Net cash provided by (used in) investing activities

9

(Millions of yen)
Fiscal year ended

Fiscal year ended

March 31, 2014

March 31, 2015

Cash flows from financing activities
Net increase (decrease) in short-term loans payableProceeds from long-term loans payable
Repayments of long-term loans payable
Purchase of treasury shares
Cash dividends paid
Cash dividends paid to minority shareholders
Other, net

3,775
6,500
(4,884)(0)(1,523)
(127)
(101)

(13,118)
12,001(3,982)(604)(2,149)
(231)
(108)

Net cash provided by (used in) financing activities

3,638(8,193)

Effect of exchange rate change on cash and cash equivalents

867

1,664

Net increase (decrease) in cash and cash equivalents(1,726)(1,218)Cash and cash equivalents at beginning of period
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

18,985

18,402–210

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

18,402

17,39410