October 31, 2017

Consolidated Financial Results(Japanese Accounting Standards)
for the 2nd Quarter of FY 2017
Company name:
Stock exchange listing:Stock code:
URL:
Representative:
Contact:

UNITED, Inc.
Tokyo Stock Exchange2497

http://united.jp/

Tomonori Hayakawa, CEO
Takahiro Fukushima, General Manager, Corporate Administration Division
Tel. +81-3-6821-0000
Scheduled date for filing of quarterly securities report:
October 31, 2017
Scheduled date of commencement of dividend payment:
December 11, 2017
Supplementary documents for quarterly results:
YES
Quarterly results briefing:(For securities analysts and institutional investors)
YES(Amounts of less than one million yen are rounded down)

1.Consolidated Financial Results for the 2nd Quarter of FY 2017 (April 1, 2017 - September 30, 2017)(Percentages show year-on-year changes)(1) Consolidated Results of Operations (Accounting Total)
Profit attributable toNet sales
Operating income
Ordinary income
owners of parent
Mil.¥
％
Mil.¥
％
Mil.¥
％
Mil.¥
％
2nd Quarter of FY 2017
6,899
6.5
950
1,611.5
944
807.1
566
―
2nd Quarter of FY 2016
6,47627.455
△95.0
104
△91.6
△60―(Note)Comprehensive income:
681million yen ( － %) for the 2nd Quarter of FY 2017△376 million yen ( － %) for the 2nd Quarter of FY 2016
Earnings
Diluted earnings
per shareper share
YenYen24.62
24.53
2nd Quarter of FY 2017―△2.63
2nd Quarter of FY 2016
(2) Consolidated Financial Position
Total assets

Net assets

Mil.¥
2nd Quarter of FY 201712,704(As of September 30,2017)
Fiscal Year 2016
12,116(As of March 31,2017)(Reference) Capital: September 30, 2017: 9,988 million yen

Equity ratio

Mil.¥％

10,092

78.6

9,551

78.4

March 31, 2017: 9,504 million yen

2.Dividend Per Share
Record date

End of 1st End of 2nd End of 3rdquarter
quarterquarter
Yen
Yen
Yen
―
0.00
――
5.00

End ofperiod
Yen
8.00

Annualdividend
Yen
8.00

Fiscal Year 2016
Fiscal Year 2017
Fiscal Year 2017―――
(expected)
Note: Revisions of the forecasts of consolidated results since the latest announcement: Yes
3.Consolidated Earnings Forecast for Fiscal Year Ending March 2018 (April 1,2017 to March 31,2018)
The consolidated earnings forecast for this period has not been included due to difficulties conducting reasonablecalculations of the earnings forecast.

*Notes(1) Changes of important subsidiaries during the period(Changes of specific subsidiaries in accordance with changes in the scope of consolidation):None(2) Application of particular accounts procedures to the preparation of quarterly consolidated financial statement:None(3) Changes in accounting policies and changes or restatement of accounting estimates(i) Changes in accounting policies caused by revision of accounting standard:(ii) Changes in accounting policies other than (i):(iii) Changes in accounting estimates:(iv) Restatement:None
None
None
None

(4) Number of shares outstanding (common stock):(i) Number of shares outstanding at end of period (including treasury stock)
As of September 30, 2017:
As of March 31, 2017:

23,670,945 shares
23,670,945 shares(ii) Number of treasury stock at end of period
As of September 30, 2017:
As of March 31, 2017:673,745 shares
673,695 shares(iii) Average number of shares outstanding during the term
2nd Quarter of FY 2017:
2nd Quarter of FY 2016:

22,997,212 shares
23,005,661 shares*Status of a quarterly review- These Consolidated Financial Results are not subject to quarterly review procedures based on the Financial Instruments and Exchange Act.

*Explanations and other special notes concerning the appropriate use of business performance forecasts- The forward-looking statements such as result forecasts included in this document are based on the information available to
the Company at the time of the announcement and on certain assumptions considered reasonable, and the Company makes norepresentations as to their achievability. Actual results may differ materially from the forecast depending on a range of factors.
- We will hold a quarterly results briefing for institutional investors and analysts on November 1, 2017.
For material that are distributed in this briefing, it will be posted on our website.

UNITED Consolidated Financial Statements(1)UNITED Consolidated Balance Sheets
for the 2st Quarter of FY 2017

Items of an account

FY2016(As of March 31,2017)
AmountAssets
Current assets
Cash and deposits
Notes and accounts receivable - trade
Operational investment securities
Inventories
OtherAllowance for doubtful accounts
Total current assets
Non-current assets
Property, plant and equipment
Intangible assets
Goodwill
Other
Total intangible assets
Investments and other assets
Total non-current assets
Total assets
Liabilities
Current liabilities
Accounts payable - trade
Short-term loans payable
Current portion of long-term loans payable
Income taxes payable
Provision for point card certificates
Other
Total current liabilities
Non-current liabilities
Long-term loans payable
Other
Total non-current liabilities
Total liabilities
Net assets
Shareholders' equity
Capital stock
Capital surplus
Retained earnings
Treasury shares
Total shareholders' equity
Accumulated other comprehensive income
Valuation difference on available-for-sale securities
Foreign currency translation adjustment
Total accumulated other comprehensive income
Subscription rights to shares
Non-controlling interests
Total net assets
Total liabilities and net assets(Unit:Thousands of Yen)
2nd Quarter of FY2017(As of September30,2017)
Amount

4,962,339
2,070,220
2,288,072
50,718739,298(20,995)
10,089,654

5,813,721
1,799,369
2,996,046
48,580138,282(5,154)
10,790,846

176,930

171,423

1,226,215
202,588
1,428,803
421,294
2,027,028
12,116,683

1,082,182
225,085
1,307,268
435,404
1,914,096
12,704,942

1,382,867
100,000
4,200
363,862
59,457641,085
2,551,472

1,249,371
100,000
4,200
354,286
64,953
829,153
2,601,965

10,8502,589
13,4392,564,912

8,750
2,155
10,9052,612,871

2,922,037
3,072,538
3,994,009(964,319)
9,024,265

2,922,037
3,072,538
4,376,271(964,441)
9,406,405

456,769
23,504
480,274
46,774457
9,551,771
12,116,683

558,101
24,182582,283
90,176
13,20510,092,071
12,704,942

(2)UNITED Consolidated Statements of Income
for the 2st Quarter of FY 2017

Items of an accountNet sales
Cost of sales
Gross profit
Selling, general and administrative expenses
Operating income
Non-operating income
Interest and dividend income
Share of profit of entities accounted for using equity method
Other
Total non-operating income
Non-operating expenses
Interest expenses
Share of loss of entities accounted for using equity method
Foreign exchange losses
Other
Total non-operating expenses
Ordinary income
Extraordinary income
Gain on reversal of subscription rights to shares
Other
Total extraordinary income
Extraordinary losses
Loss on retirement of non-current assets
Loss on valuation of investment securities
Office transfer expenses
Impairment loss
Provision of allowance for doubtful accounts
Total extraordinary losses
Income before income taxes
Income taxes - current
Income taxes - deferred
Total income taxes
Profit (loss)
Profit (loss) attributable to non-controlling interests
Profit (loss) attributable to owners of parent

2nd Quarter of FY2016(April 1,2016
to September 30,2016)
Amount(Unit:Thousands of Yen)
2nd Quarter of FY2017(April 1,2017
to September 30,2017)
Amount6,476,364
5,270,287
1,206,076
1,150,553
55,5236,899,081
4,497,160
2,401,921
1,451,630
950,291

666
52,031
6,534
59,232

156
2,446
2,602

708
7,735
2,174
10,619104,136

839
805
5,627
1,012
8,284
944,609

18
18

3,100
0
3,100

645
29,99913,126
6,768
18,077
68,61735,537
66,13644,243110,379(74,842)(14,440)(60,402)

3,006
4,200
7,207
940,502336,219
24,837361,056
579,445
13,205566,240

(3)UNITED Consolidated Statements of Comprehensive Income
for the 2st Quarter of FY 2017

Items of an account

Profit (loss)
Other comprehensive income
Valuation difference on available-for-sale securities
Foreign currency translation adjustment
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-controlling interests

2nd Quarter of FY2016(April 1,2016
to September 30,2016)
Amount(Unit:Thousands of Yen)
2nd Quarter of FY2017(April 1,2017
to September 30,2017)
Amount(74,842)

579,445(287,406)(6,087)(8,062)(301,556)(376,399)

101,331677
102,009681,455(361,997)(14,402)668,249
13,205

(4)UNITED Consolidated Statements of Cash Flows

Items of an accountCash flows from operating activities
Profit before income taxes
Depreciation
Amortization of goodwill
Share-based compensation expenses
Increase (decrease) in allowance for doubtful accounts
Increase (decrease) in provision for point card certificatesInterest and dividend income
Interest expenses
Share of (profit) loss of entities accounted for using equity method
Loss (gain) on valuation of investment securities
Decrease (increase) in notes and accounts receivable - trade
Decrease (increase) in investment securities for sale
Increase (decrease) in notes and accounts payable - trade
Other, net
SubtotalInterest and dividend income received
Interest expenses paid
Income taxes paid
Net cash provided by (used in) operating activities
Cash flows from investing activities
Proceeds from withdrawal of time deposits
Purchase of property, plant and equipment
Purchase of intangible assetsPurchase of shares of subsidiaries resulting in change in scope of consolidation
Other, net
Net cash provided by (used in) investing activities
Cash flows from financing activities
Cash dividends paid
Other, net
Net cash provided by (used in) financing activities
Effect of exchange rate change on cash and cash equivalents
Net increase (decrease) in cash and cash equivalents
Cash and cash equivalents at beginning of period
Cash and cash equivalents at end of period

2nd Quarter of FY2016(April 1,2016
to September 30,2016)
Amount(Unit:Thousands of Yen)
2nd Quarter of FY2017(April 1,2017
to September 30,2017)
Amount35,53742,53070,079
9,392
11,814
19,201(666)
708(52,031)
29,999(121,710)
103,250(198,071)
85,42735,4631,377(713)(347,040)(310,912)

940,50251,177144,032
46,501(15,841)
5,496
(156)
839
805
4,200
270,851(575,495)(133,497)
688,328
1,427,745
156(965)(288,251)
1,138,685

2,800,000(31,115)(43,171)(758,728)(55,363)
1,911,621(11,455)(59,658)(31,092)(102,206)(114,147)(2,172)(116,320)(11,757)
1,472,629
2,191,691
3,664,320(182,966)(2,221)(185,187)
91
851,382
4,962,339
5,813,721