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, 2017
(Based on Japanese GAAP)May 11, 2017
Company name:Inabata&Co.,Ltd.

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

URL

http://www.inabata.co.jp

Director,President
Director, Managing Executive Officer

Katsutaro Inabata
Kenichi Yokota

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

June 23, 2017
June 26, 2017

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

June 2, 2017
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, 2017 (from April 1, 2016 to March 31, 2017)(1) Consolidated operating results
Percentages indicate year-on-year changesProfit attributable to
Net sales
Operating profit
Ordinary profit
owners of parent
Millions of yen% Millions of yen% Millions of yen% Millions of yen%
Year ended March 31, 2017586,630
1.7
12,616
11.0
13,672
11.5
9,687
1.9
Year ended March 31, 2016
577,037
0.9
11,371
5.5
12,257
(7.3)
9,510
10.2
Profit attributable toOrdinary profit/total Operating profit/net
owners ofassets
sales
parent/equity
Yen
%%%–
7.1
4.2
2.2
–
7.5
3.9
2.0

Diluted earnings pershare

Earnings per shareYen
156.25151.91

Year ended March 31, 2017
Year ended March 31, 2016
(2) Consolidated financial position

Total assets
As of March 31, 2017
As of March 31, 2016

Net assets

Equity ratio

Millions of yen
340,147
305,436

Millions of yen
147,629
127,025

Cash flows fromoperating activities
Millions of yen
1,840
11,866

Cash flows frominvesting activities
Millions of yen
4,504
(161)

Net assets per share%
43.0
41.3

Yen
2,378.31
2,029.70(3) Consolidated cash flows

Year ended March 31, 2017
Year ended March 31, 2016

Cash flows from
Cash and cash equivalents
at end of period
financing activities
Millions of yen
Millions of yen(481)
22,935(11,129)
17,088

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

Year ended March 31, 2016
Year ended March 31, 2017
Year ending March 31, 2018
(Forecast)of dividends
Total cash
Dividend payout Ratio
to net assets
dividends (Total) ratio (Consolidated) (Consolidated)

Total

Yen

Yen

Yen

Yen

Yen

Millions of yen

%%

––

16.00
18.00

––

20.00
22.00

36.00
40.00

2,252
2,478

23.7
25.6

1.8
1.8

–20.00–20.00

40.00

124.6

3. Forecast of consolidated financial results for the year ending March 31, 2018 (from April 1, 2017 to March 31, 2018)
Net sales
Millions of yen
Six months ending
September 30, 2017
Full year

Percentages indicate year-on-year changes
Profit attributable toOperating profit
Ordinary profit
Earnings per shareowners of parent% Millions of yen% Millions of yen% Millions of yen%Yen

310,000

7.3

6,000

5.6

6,300

(1.8)

4,800

2.6

78.05

630,000

7.4

12,500(0.9)

13,000(4.9)

10,0003.2

162.61

4. Notes(1) Changes in significant subsidiaries during the year ended March 31, 2017(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:No
Changes in accounting policies due to other reasons:
Changes in accounting estimates:

NoNo

Restatement of prior period financial statements:

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, 2017

63,499,227 shares As of March 31, 2016

63,499,227 shares

Number of treasury shares at the end of the period
As of March 31, 2017

2,002,305 shares As of March 31, 2016

1,402,268 shares

62,004,644 shares Year ended March 31, 2016

62,604,763 shares

Average number of shares during the period
Year ended March 31, 20172

Consolidated financial statements
Consolidated balance sheets(Millions of yen)
As of March 31, 2016

As of March 31, 2017

AssetsCurrent assets
Cash and deposits
Notes and accounts receivable - trade21,315145,565

27,365
157,375

Merchandise and finished goods
Work in process

41,472526

43,293579

Raw materials and supplies
Deferred tax assets

2,824
898

3,020
734

Other
Allowance for doubtful accounts

11,031(1,188)

7,344(1,271)

Total current assets

222,446

238,441

12,958(8,965)

13,572(8,938)

Buildings and structures, net

3,992

4,634

Machinery, equipment and vehicles
Accumulated depreciation

14,520(11,668)

14,615(11,723)

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

2,851

2,891

Land
Construction in progress

Machinery, equipment and vehicles, net

3,107
466

2,878
50

Other
Accumulated depreciation

2,937(2,088)

3,010(2,084)

Other, net

848

925

11,266

11,381Intangible assets

3,585

3,473

Investments and other assets
Investment securities

Total property, plant and equipment

62,715

81,106Long-term loans receivable
Net defined benefit asset

1,056
2,502

659
2,721

Deferred tax assets
Other585
1,956

675
2,679

Allowance for doubtful accounts

(679)

(991)

Total investments and other assets

68,13786,85082,989101,705

305,436

340,147

Total non-current assets
Total assets3

(Millions of yen)
As of March 31, 2016

As of March 31, 2017

Liabilities
Current liabilities
Notes and accounts payable - trade83,26487,777

Short-term loans payable
Income taxes payable

44,3842,046

51,8003,251

Accrued expenses
Provision for bonuses

1,227
1,123

1,044
1,123

Other

6,101

5,519

138,147

150,517

23,993
13,587

19,275
19,724

32
–33
114

18
1,291

318
1,191

Total current liabilities
Non-current liabilities
Long-term loans payable
Deferred tax liabilities
Provision for directors' retirement benefits
Allowance for investment loss
Provision for loss on guarantees
Net defined benefit liability
Other

1,339

1,341

Total non-current liabilities

40,263

41,999178,410

192,517

Capital stock
Capital surplus

9,364
7,708

9,364
7,708

Retained earnings
Treasury shares

75,909(1,177)

83,205(2,069)Total shareholders' equity

91,804

98,209Total liabilities
Net assets
Shareholders' equity

Accumulated other comprehensive income
Valuation difference on available-for-sale securities

31,85845,641

Deferred gains or losses on hedges
Foreign currency translation adjustment

(68)
3,055

(18)
2,701

Remeasurements of defined benefit plans

(612)

(275)

34,23348,048987

1,371

127,025

147,629

305,436

340,147

Total accumulated other comprehensive income
Non-controlling interests
Total net assets
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
March 31, 2016

Fiscal year ended
March 31, 2017

Net sales

577,037

586,630

Cost of sales

535,973

543,889

Gross profit

41,06442,740

Selling, general and administrative expenses

29,69230,123Operating profit

11,371

12,616280

242

Dividend income
Foreign exchange gains

1,584
–

1,309
56

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

600
1,121

401
791

Total non-operating income

3,587

2,801

1,275

1,294

873
551

–
451

Non-operating income
Interest income

Non-operating expenses
Interest expenses
Foreign exchange lossesMiscellaneous loss
Total non-operating expenses
Ordinary profit

2,701

1,745

12,257

13,672

833
–

4,457
296

Extraordinary income
Gain on sales of investment securities
Gain on reversal of loss on valuation of investment securities
Gain on sales of non-current assets

331

109

1,165

4,862

Loss on valuation of investment securities
Impairment loss

–
–

1,701
714

Provision for loss on guarantees
Loss on sales of non-current assets

––

300
131

Provision of allowance for investment loss–

110

Total extraordinary losses

–

2,958

Profit before income taxes

13,422

15,576

Income taxes - current

4,227

5,431

Total extraordinary income
Extraordinary losses

Income taxes - deferred(553)0Total income taxes

3,673

5,431

Profit9,748

10,144

Profit attributable to non-controlling interests
Profit attributable to owners of parent

5238

456

9,510

9,687

Consolidated statements of comprehensive income(Millions of yen)

ProfitOther comprehensive income

Fiscal year ended

Fiscal year ended

March 31, 2016

March 31, 2017
9,748

10,144

Valuation difference on available-for-sale securities
Deferred gains or losses on hedges(2,959)(13)

13,67076

Foreign currency translation adjustment
Remeasurements of defined benefit plans, net of tax(3,823)(1,075)

(359)
336

(177)

105

(8,049)13,8291,699

23,974

1,512

23,479186

495

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 non-controllinginterests

6

Consolidated statements of changes in equity
Fiscal year ended March 31, 2016
(Millions of yen)
Shareholders' equity
Capital stock
Balance at beginning ofcurrent period

Capital surplus

9,364

Retained earnings

7,708

Treasury shares

68,837

Total shareholders'equity(469)

85,440Changes of items during
periodDividends of surplus(2,131)(2,131)

Profit attributable toowners of parent

9,510

9,510

Purchase of treasury shares(707)

Change of scope ofconsolidation

(707)

(306)

(306)

Net changes of items otherthan shareholders' equity–

Total changes of items during
periodBalance at end of current
period––7,072

(707)

6,364

9,364

7,708

75,909(1,177)91,804

Accumulated other comprehensive income

Balance at beginning ofcurrent period

Valuationdifference on
available-forsale securities

Deferred gains
or losses onhedges34,934(78)

Foreigncurrencytranslation
adjustment
6,911

Remeasurementsof defined
benefit plans

463

Total
accumulated
othercomprehensive
income42,230Non-controllinginterests

Total net assets

855

128,526

Changes of items during
periodDividends of surplus(2,131)

Profit attributable toowners of parent

9,510

Purchase of treasury shares(707)

Change of scope ofconsolidation(306)

Net changes of items otherthan shareholders' equity(3,075)10(3,855)(1,076)(7,997)131(7,865)

Total changes of items during
period(3,075)10(3,855)(1,076)(7,997)131(1,501)

Balance at end of current
period31,858

(68)

3,055

(612)

34,233987

127,025

7

Fiscal year ended March 31, 2017
(Millions of yen)
Shareholders' equity
Capital stock
Balance at beginning ofcurrent period

Capital surplus

9,364

Retained earnings

7,708

Treasury shares

75,909Total shareholders'equity(1,177)91,804

Changes of items during
periodDividends of surplus(2,359)(2,359)Profit attributable toowners of parent

9,687

9,687

Purchase of treasury shares(891)

Change of scope of
consolidation

(891)

(31)

(31)

Net changes of items otherthan shareholders' equity–

Total changes of items during
periodBalance at end of current
period

–

–

7,296

(891)

6,404

9,364

7,708

83,205(2,069)98,209

Accumulated other comprehensive income

Balance at beginning ofcurrent period

Valuationdifference on
available-forsale securities

Deferred gains
or losses onhedges

31,858(68)

Foreigncurrencytranslation
adjustment
3,055

Remeasurementsof defined
benefit plans

(612)

Total
accumulated
othercomprehensive
income34,233

Non-controllinginterests

Total net assets

987

127,025

Changes of items during
periodDividends of surplus(2,359)Profit attributable toowners of parent

9,687

Purchase of treasury shares(891)

Change of scope ofconsolidation(31)

Net changes of items otherthan shareholders' equity

13,78249(353)336

13,815384

14,199Total changes of items during
period13,78249(353)336

13,815384

20,604

Balance at end of current
period45,641(18)

2,701(275)48,048

1,371

147,6298

Consolidated statements of cash flows(Millions of yen)

Cash flows from operating activities
Profit before income taxes

Fiscal year ended

Fiscal year ended

March 31, 2016

March 31, 201713,422

15,576

Depreciation
Impairment loss

2,270–

2,066
714

Increase (decrease) in allowance for doubtful accounts
Interest and dividend income(192)(1,864)415(1,551)

Interest expenses
Share of (profit) loss of entities accounted for using equity

1,275

1,294(600)

(401)

–

110

Increase (decrease) in provision for loss on guarantees
Loss (gain) on sales of non-current assets–(331)

300
22

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

(833)
–

(4,457)
1,701

Gain on reversal of loss on valuation of investment securities
Decrease (increase) in notes and accounts receivable - trade

–
3,616

(296)
(12,175)

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

947(1,139)(2,321)
1,089

Decrease (increase) in other non-current assets
Increase (decrease) in notes and accounts payable - trade387(4,290)

(712)
4,451

Increase (decrease) in other current liabilities
Other, net

1,438
795

(311)
203

Subtotal

14,8995,717Interest and dividend income received
Interest expenses paid

2,100
(1,295)

1,771(1,291)

Income taxes paid

(3,839)(4,357)

Net cash provided by (used in) operating activities

11,866

1,840

Payments into time deposits
Proceeds from withdrawal of time deposits(4,310)5,849(3,904)
3,898

Purchase of property, plant and equipment
Proceeds from sales of property, plant and equipment(2,391)780(1,817)
1,975

Purchase of intangible assets
Purchase of investment securities

(676)
(431)

(614)
(603)

Proceeds from sales of investment securities
Purchase of shares of subsidiaries

1,535
(442)

5,150
(502)

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

103
(252)

311
(196)

Collection of long-term loans receivable
Other, net

228
(155)

852
(44)

Net cash provided by (used in) investing activities

(161)

4,504

methodIncrease (decrease) in allowance for investment loss

Cash flows from investing activities

9(Millions of yen)

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

Fiscal year ended

Fiscal year ended

March 31, 2016

March 31, 2017
(9,731)

2,850

Proceeds from long-term loans payable
Repayments of long-term loans payable

3,955(2,370)3,786(3,678)Purchase of treasury shares
Cash dividends paid

(707)
(2,138)(891)(2,366)

(54)

(109)

(20)

–20–

(81)

(71)

Net cash provided by (used in) financing activities(11,129)(481)

Effect of exchange rate change on cash and cash equivalents

(931)

(199)

Dividends paid to non-controlling interests
Payments from changes in ownership interests in subsidiaries
that do not result in change in scope of consolidation
Proceeds from changes in ownership interests in subsidiaries
that do not result in change in scope of consolidation
Other, net

Net increase (decrease) in cash and cash equivalents

(356)

5,664

Cash and cash equivalents at beginning of period

17,39417,08849

183

17,08822,935

Increase (decrease) in cash and cash equivalents resulting fromchange of scope of consolidation
Cash and cash equivalents at end of period10