Note:This document is a translation of a part of the original Japanese version and provided for reference purposes only. In the event of any discrepancy
between the Japanese original and this English translation, the Japanese original shall prevail.

Consolidated Financial Results
for the Fiscal Year Ended December 31, 2018 [Japanese GAAP]
February 14, 2019
Company name:
SAKATA INX CORPORATION
Stock exchange listing: Tokyo
Code number:
4633
URL:
http://www.inx.co.jp/
Representative:
Kotaro Morita
Representative Director, President & CEO
Contact:
Daisuke Sugahara
General Manager, Finance & Accounting Div.
Phone:+81-6-6447-5823
Scheduled date of Annual General Meeting of Shareholders:March 26, 2019
Scheduled date of commencing dividend payments:
March 27, 2019
Scheduled date of filing annual securities report:
March 26, 2019
Availability of supplementary briefing material on annual financial results:
Yes
Schedule of annual financial results briefing session:
Yes(Amounts of less than one million yen are rounded down)
1. Consolidated Financial Results for the Fiscal Year Ended December 31, 2018 (January 1, 2018 to December 31, 2018)(1) Consolidated Operating Results(% indicates changes from the previous corresponding period.)
Net income attributable toNet sales
Operating income
Ordinary income
owners of parent
Million yen%
Million yen%
Million yen%
Million yen%
Fiscal year ended
December 31, 2018
162,0563.0
5,112(40.4)
6,910(38.6)
4,692(44.0)
157,302
4.0
8,573(15.3)
11,249
(5.2)
8,383
7.0
December 31, 2017
(Note) Comprehensive income:Fiscal year ended December 31, 2018: ¥756 million [ (92.4) %]Fiscal year ended December 31, 2017: ¥ 9,946 million [ 55.9 %]Basic earnings
per share
Fiscal year ended
December 31, 2018
December 31, 2017
(Note) Equity in earnings of affiliates:

Diluted earnings
per share

Yen

Rate of return onequity

Yen

Ordinary income to Operating income tototal assets ratio
net sales ratio

%

80.36
142.76
Fiscal year ended December 31, 2018:
Fiscal year ended December 31, 2017:

6.3
11.4
¥ 1,572 million¥ 1,783 million

Total assets
Net assets
Million yen
Million yen
As ofDecember 31, 2018
145,857
77,397
December 31, 2017
145,489
78,766(Note) Equity:
As of December 31, 2018: ¥ 74,307 million
As of December 31, 2017: ¥ 75,650 million

Equity ratio%%

4.7
7.9

3.2
5.5

(2) Consolidated Financial Position
Net assets per share%

Yen

50.9
52.0

1,272.41
1,295.39(3) Consolidated Cash Flows
Cash flows fromoperating activities
Fiscal year ended
December 31, 2018
December 31, 2017

Cash flows frominvesting activities

Cash flows fromfinancing activities

Cash and cash
equivalents at the endof period

Million yen

Million yen

Million yen

Million yen

5,239
9,201

(7,279)(2,737)(122)(6,259)

6,788
9,351

2. Dividends
Annual dividends
1st2nd3rdquarter-end quarter-end quarter-end Year-end
Fiscal year ended
December 31, 2017
December 31, 2018
Fiscal year ending
December 31, 2019(Forecast)

TotalDividends
PayoutTotal
to netratio
assetsdividends (consolidated)(consolidated)

Yen

Yen

Yen

Yen

Yen

Million yen%%

-

14.00
15.00

-

16.00
15.00

30.00
30.00

1,751
1,751

21.0
37.3

2.4
2.3

-

15.00

-

15.00

30.00

35.0

3. Consolidated Financial Results Forecast for the Fiscal Year Ending December 31, 2019 (January 1, 2019 to December 31, 2019)(% indicates changes from the previous corresponding period.)
Net income
Basic earnings
Net sales
Operating income Ordinary income
attributable toper shareowners of parent
Million yen

Six months ended June 30, 2019
Full year% Million yen

85,000173,600

7.7
7.1

2,250
6,000

% Million yen(16.1)
17.4

3,000
7,500

% Million yen(15.3)
8.5

2,000
5,000

%Yen

(23.3)
6.5

34.25
85.62

* Notes:(1) Changes in significant subsidiaries during the period under review(changes in specified subsidiaries resulting in changes in scope of consolidation):No(2) Changes in accounting policies, changes in accounting estimates and retrospective restatement
1) Changes in accounting policies due to the revision of accounting standards:
2) Changes in accounting policies other than 1) above:3) Changes in accounting estimates:
4) Retrospective restatement:

No
NoNo
No

(3) Total number of issued shares (common shares)
1) Total number of issued shares at the end of the period (including treasury shares):December 31, 2018:
62,601,161 shares
December 31, 2017:
62,601,161 shares2) Total number of treasury shares at the end of the period:
December 31, 2018:
December 31, 2017:

4,201,943 shares
4,201,482 shares

3) Average number of shares during the period:
Fiscal Year ended December 31, 2018:
Fiscal Year ended December 31, 2017:

58,399,431 shares
58,724,104 shares(Reference) Summary of Non-consolidated Financial Results
1. Non-consolidated Financial Results for the Fiscal Year Ended December 31, 2018 (January 1, 2018 to December 31, 2018)(1) Non-consolidated Operating Results(% indicates changes from the previous corresponding period.)
Net sales
Fiscal year ended
December 31, 2018
December 31, 2017

Operating income

Net income

Million yen%

Million yen%

Million yen%

Million yen%

67,86567,027

1.3
1.6

1,597
2,740(41.7)
3.0

3,880
5,044(23.1)
8.3

3,087
4,730(34.7)
28.4

Basic earnings
per share
Fiscal year ended
December 31, 2018
December 31, 2017

Ordinary income

Diluted earnings
per share
Yen

Yen

52.88
80.55

-(2) Non-consolidated Financial Position
Total assets
Net assets
Million yen
Million yen
As ofDecember 31, 2018
96,342
55,633December 31, 2017
96,96756,423(Note) Equity:
As of December 31, 2018: ¥ 55,633 million
As of December 31, 2017: ¥ 56,423 million

Equity ratio

Net assets per share%

Yen

57.7
58.2

952.64966.16*This consolidated financial results are not subject to audit procedures by Certified Public Accountants or audit firm.
*Explanation of appropriate use of financial forecasts and other special notes
The above financial forecasts are based on the current available information in the Company and certain reasonable assumption
to the Company, and we don't commit to achieve these forecasting numbers. Actual results may differ from these forecasts by avariety of reasons.
*Supplementary information will be disclosed on TDnet on February 14, 2019 and will be uploaded on the Company's website.

Consolidated Financial Statements
Consolidated Balance Sheets(Million yen)
As of December 31,2017
AssetsCurrent assets
Cash and deposits
Notes and accounts receivable - trade
Merchandise and finished goods
Work in process
Raw materials and supplies
Deferred tax assets
OtherAllowance for doubtful accounts
Total current assets
Non-current assets
Property, plant and equipment
Buildings and structures, net
Machinery, equipment and vehicles, net
Land
Leased assets, net
Construction in progress
Other, net
Total property, plant and equipment
Intangible assets
Investments and other assets
Investment securities
Long-term loans receivable
Deferred tax assets
Other
Allowance for doubtful accounts
Total investments and other assets
Total non-current assets
Total assets― 1 ―As of December 31,2018

10,00245,098
9,898
1,096
7,642
613
2,243(395)
76,1997,194
46,506
9,759
1,219
9,180
456
2,378(453)
76,241

16,823
9,472
8,786
619
918
411
37,032851

17,298
10,778
8,795
703
912
443
38,931590

29,207952
212
1,497(463)
31,40569,290145,489

26,504
1,491
178
2,182(262)30,09369,615
145,857(Million yen)
As of December 31,2017
Liabilities
Current liabilities
Notes and accounts payable - trade
Electronically recorded obligations - operating
Short-term loans payable
Current portion of long-term loans payable
Lease obligations
Accrued expenses
Income taxes payable
Provision for bonuses
Other
Total current liabilities
Non-current liabilities
Long-term loans payable
Lease obligations
Deferred tax liabilities
Net defined benefit liability
Asset retirement obligations
OtherTotal 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
Deferred gains or losses on hedges
Foreign currency translation adjustment
Remeasurements of defined benefit plans
Total accumulated other comprehensive income
Non-controlling interests
Total net assets
Total liabilities and net assets― 2 ―As of December 31,2018

29,332
5,343
4,188
213
3,623
993
647
3,625
47,96817,98913,814
9,059
1,357
225
3,182
179
553
2,870
49,233

6,157
328
4,921
5,026
71
2,249
18,754
66,723

7,332
348
4,249
4,968
72
2,254
19,22668,4597,472
5,672
65,638(4,046)74,737

7,472
5,672
68,430(4,047)
77,5284,957
2(2,611)(1,434)912
3,116
78,766
145,489

2,713
4(4,549)(1,389)(3,220)3,090
77,397
145,857

Consolidated Statements of Income and Comprehensive Income
Consolidated Statements of Income(Million yen)

Net sales
Cost of sales
Gross profit
Selling, general and administrative expenses
Operating income
Non-operating income
Interest income
Dividend income
Real estate rent
Equity in earnings of affiliates
Foreign exchange gains
Other
Total non-operating income
Non-operating expenses
Interest expenses
Foreign exchange losses
Other
Total non-operating expenses
Ordinary income
Extraordinary income
Gain on sales of investment securities
Insurance income
Subsidy income
Total extraordinary income
Extraordinary losses
Loss on disaster
Loss on retirement of property, plant and equipment
Loss on valuation of investment securities
Plant transfer expenses
Total extraordinary losses
Income before income taxes
Income taxes - current
Income taxes - deferred
Total income taxes
Net income
Net income attributable to non-controlling interests
Net income attributable to owners of parent― 3 ―For the fiscal year
ended December 31,2017

For the fiscal year
ended December 31,2018

157,302120,371
36,931
28,358
8,573

162,056
128,824
33,232
28,1205,112

68310
1981,783
389
298
3,048

58
311
204
1,572
330
2,476

247
124
371
11,249

266
239
172
678
6,910

1,124
199
100
1,424

185
100
285

174
70
0
71
317
12,356
3,092
374
3,466
8,889
506
8,383

71
71
7,125
1,731
424
2,155
4,970
277
4,692

Consolidated Statements of Comprehensive Income(Million yen)

Net income
Other comprehensive income
Valuation difference on available-for-sale securities
Deferred gains or losses on hedges
Foreign currency translation adjustment
Remeasurements of defined benefit plans, net of tax
Share of other comprehensive income of affiliates
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― 4 ―For the fiscal year
ended December 31,2017

For the fiscal year
ended December 31,2018

8,889

4,970

971
1(246)
156(2,136)0(1,595)
63

174

(545)

1,056
9,946

(4,213)
756

9,489
456

559
196

Consolidated Statements of Changes in Net Assets
For the fiscal year ended December 31,2017(Million yen)
Shareholders' equity
Capital stock
Balance at beginning of current period

Capitalsurplus

7,472

Retainedearnings

5,672

Total
shareholders'equity

Treasuryshares

59,053(643)

71,555

Changes of items during period
Dividends of surplus(1,725)(1,725)

Profit attributable to owners of parent

8,383

8,383

Purchase of treasury shares
Change of scope of consolidation in affiliates
accounted for using equity method
Net changes of items other than shareholders' equity(3,402)(73)

Total changes of items during period
Balance at end of current period(3,402)
(73)

--

6,584

(3,402)

3,182

7,472

5,672

65,638(4,046)74,737

Accumulated other comprehensive income
TotalValuation
Remeasurements
Deferred gains Foreign currency
accumulateddifference onofor losses ontranslation
otheravailable-for-saledefined benefit
hedgesadjustment
comprehensive
securities
plans
incomeBalance at beginning of current period

4,027

(0)

(2,615)(1,604)(193)

NonTotal net
controlling
assetsinterests
2,952

74,313

Changes of items during period
Dividends of surplus
Profit attributable to owners ofparent
Purchase of treasury shares
Change of scope of consolidation in
affiliates accounted for using equity
methodNet changes of items other thanshareholders' equity
Total changes of items during period
Balance at end of current period(1,725)
8,383(3,402)
(73)
929

2

3169

1,106

164

1,270

929

2

3

169

1,106

164

4,452

4,957

2

(2,611)(1,434)

912

3,116

78,766― 5 ―For the fiscal year ended December 31,2018(Million yen)
Shareholders' equity
Capital stock
Balance at beginning of current period

Capitalsurplus7,472

Retainedearnings

5,672

Total
shareholders'equityTreasury
shares65,638(4,046)74,737

Changes of items during period
Dividends of surplus(1,810)

Profit attributable to owners of parent

4,692

Purchase of treasury shares
Change of scope of consolidation in affiliates
accounted for using equity method
Net changes of items other than shareholders' equity

4,692
(0)

(90)

Total changes of items during period
Balance at end of current period(1,810)
(0)
(90)

--

2,791

(0)

2,790

7,472

5,672

68,430(4,047)

77,528

Accumulated other comprehensive income
TotalValuation
Remeasurements
Deferred gains Foreign currency
accumulateddifference onof
or losses ontranslation
otheravailable-for-saledefined benefit
hedgesadjustment
comprehensive
securities
plans
incomeBalance at beginning of current period

4,957

2(2,611)(1,434)912

NonTotal net
controlling
assetsinterests
3,116

78,766

Changes of items during period
Dividends of surplus
Profit attributable to owners ofparentPurchase of treasury shares
Change of scope of consolidation in
affiliates accounted for using equitymethod
Net changes of items other thanshareholders' equity
Total changes of items during period
Balance at end of current period(1,810)
4,692
(0)
(90)
(2,243)2(1,937)

45(4,133)(26)(4,159)(2,243)2(1,937)45(4,133)(26)(1,368)2,713

4(4,549)(1,389)(3,220)3,090

77,397― 6 ―Consolidated Statements of Cash Flows(Million yen)
For the fiscal year
ended December 31,2017
Cash flows from operating activities
Income before income taxes
Depreciation and amortization
Increase (decrease) in allowance for doubtful accounts
Increase (decrease) in net defined benefit liability
Increase (decrease) in provision for bonuses
Interest and dividend income
Interest expenses
Equity in (earnings) losses of affiliates
Loss on retirement of property, plant and equipment
Loss (gain) on sales of investment securities
Loss (gain) on valuation of investment securities
Insurance income
Subsidy income
Loss on disaster
Plant transfer expenses
Decrease (increase) in notes and accounts receivable - trade
Decrease (increase) in inventories
Increase (decrease) in notes and accounts payable - tradeincluding electronically recorded obligations - operating
Other, net
SubtotalInterest and dividend income received
Interest expenses paid
Proceeds from insurance income
Proceeds from subsidy income
Income taxes paid
Net cash provided by (used in) operating activities
Cash flows from investing activities
Purchase of property, plant and equipment
Proceeds from sales of property, plant and equipment
Purchase of investment securities
Proceeds from sales of investment securities
Payments of loans receivableCollection of loans receivable
Other, net
Net cash provided by (used in) investing activities― 7 ―For the fiscal year
ended December 31,2018

12,356
3,702(145)145
15(378)247(1,783)70(1,124)
0(199)(100)
174
71(1,608)(1,563)

7,125
4,036
(114)
202(89)(370)
266(1,572)71(185)(100)(2,161)(1,939)

1,923

2,793

(263)
11,539
728
(249)
30
150
(2,996)9,201(738)7,223
765(263)238
100(2,824)
5,239(3,808)29(223)1,965(48)55(707)(2,737)(6,266)57(189)1(602)
56(335)(7,279)(Million yen)
For the fiscal year
ended December 31,2017
Cash flows from financing activities
Net increase (decrease) in short-term loans payable
Proceeds from long-term loans payable
Repayments of long-term loans payable
Purchase of treasury shares
Cash dividends paid
Dividends paid to non-controlling interests
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

1,737
3,876
(6,188)(3,402)(1,725)(292)(265)(6,259)
(151)
53
9,297
9,351

― 8 ―

For the fiscal year
ended December 31,2018

3,727
2,601
(4,152)(0)(1,810)
(223)
(264)
(122)
(400)
(2,562)
9,351
6,788