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 Year Ended December 31, 2019[Japanese GAAP]
February 14, 2020
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, 2020
Scheduled date of commencing dividend payments:
March 27, 2020
Scheduled date of filing annual securities report:
March 26, 2020
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, 2019 (January 1, 2019 to December 31, 2019)(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, 2019
167,237
3.2
6,225
21.8
7,319
5.9
4,114
(12.3)
December 31, 2018
162,0563.0
5,112(40.4)
6,910(38.6)
4,692(44.0)(Note) Comprehensive income:Fiscal year ended December 31, 2019: ¥ 5,339 million [ 605.7%]
Fiscal year ended December 31, 2018: ¥756 million [ (92.4) %]Basic earnings
Diluted earnings
Rate of return on Ordinary income to Operating income toper shareper share
equitytotal assets ratio
net sales ratio
Yen
Yen%
%
%
Fiscal year endedDecember 31, 2019
70.46
5.5
5.0
3.7
December 31, 2018
80.36
6.3
4.7
3.2
(Note) Equity in earnings of affiliates:
Fiscal year ended December 31, 2019:¥741 million
Fiscal year ended December 31, 2018:¥ 1,572 million(2) Consolidated Financial Position
Total assets
Net assets
Equity ratio
Net assets per share
Million yen
Million yen%
Yen
As ofDecember 31, 2019
148,292
81,43951.7
1,313.31
December 31, 2018
145,495
77,39751.1
1,272.41(Note) Equity:
As of December 31, 2019:¥76,696 million
As of December 31, 2018:¥74,307 million(Note)"Partial Amendments to Accounting Standard for Tax Effect Accounting"(Accounting Standards Board of Japan(ASBJ)
Statement No.28, February 16, 2018) have been applied from the beginning of the first quarter of the current fiscal year.
Consolidated financial position for the year ended December 31, 2018 was reclassified retrospectively in accordance with thisaccounting standard.
(3) Consolidated Cash Flows
Cash and cash
Cash flows from
Cash flows from
Cash flows fromequivalents at the end
operating activities
investing activities
financing activitiesof period
Million yen
Million yen
Million yen
Million yen
Fiscal year ended
December 31, 2019
9,819
(5,106)(3,821)
9,361
December 31, 2018
5,239
(7,279)(122)
6,788
2. Dividends
Dividends
Annual dividends
PayoutTotal
to net
ratio
1st
2nd
3rd
dividends (consolidated) assets
Year-end
Total
quarter-end quarter-end quarter-end(consolidated)
Fiscal year ended
December 31, 2018
December 31, 2019
Fiscal year ending
December 31, 2020(Forecast)

Yen

YenYenYen

Yen

Million yen%%

-

15.00
15.00

-

15.00
15.00

30.00
30.00

1,751
1,751

37.3
42.6

2.3
2.3

-

15.00

-

15.00

30.00

30.2

3. Consolidated Financial Results Forecast for the Fiscal Year Ending December 31, 2020 (January 1, 2020 to December 31, 2020)(% 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, 2020
Full year% Million yen

83,600171,000

0.5
2.2

3,100
7,500

% Million yen

1.6
20.5

% Million yen

3,600
8,800(3.2)
20.2

2,300
5,800

%Yen

(3.6)
40.9

39.38
99.32

* 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:

Yes
NoNoNo(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, 2019:
62,601,161 shares
December 31, 2018:
62,601,161 shares2) Total number of treasury shares at the end of the period:
December 31, 2019:
December 31, 2018:

4,202,237 shares
4,201,943 shares

3) Average number of shares during the period:
Fiscal Year ended December 31, 2019:
Fiscal Year ended December 31, 2018:

58,399,069 shares
58,399,431 shares(Reference) Summary of Non-consolidated Financial Results
1. Non-consolidated Financial Results for the Fiscal Year Ended December 31, 2019 (January 1, 2019 to December 31, 2019)(1) Non-consolidated Operating Results(% indicates changes from the previous corresponding period.)
Net sales
Fiscal year ended
December 31, 2019
December 31, 2018

Operating income

Ordinary income

Net income

Million yen%

Million yen%

Million yen%

Million yen%

65,521
67,865(3.5)
1.3

1,134
1,597(29.0)(41.7)

3,326
3,880

(14.3)(23.1)

2,696
3,087(12.7)(34.7)

Basic earnings
per share
Fiscal year ended
December 31, 2019
December 31, 2018

Diluted earnings
per share
Yen

Yen

46.17
52.88

-(2) Non-consolidated Financial Position
Total assets

Net assets

Equity ratio

Net assets per share

Yen
As ofDecember 31, 201995,13657,20660.1
979.58December 31, 2018
96,071
55,63357.9
952.64(Note) Equity:
As of December 31, 2019: ¥ 57,206 million
As of December 31, 2018: ¥ 55,633 million(Note)"Partial Amendments to Accounting Standard for Tax Effect Accounting"(Accounting Standards Board of Japan(ASBJ)
Statement No.28, February 16, 2018) have been applied from the beginning of the first quarter of the current fiscal year.
Financial position for the year ended December 31, 2018 was reclassified retrospectively in accordance with this accountingstandard.
Million yen

Million yen%*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, 2020 and will be uploaded on the Company's website.

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

As of December 31,2019

7,194
46,506
9,759
1,219
9,180
2,378(453)
75,785

10,12245,828
11,4801,178
9,024
1,943(513)
79,064

17,298
10,778
8,795
703
912
443
38,931

17,43910,455
8,831
445
1,683
2,317
41,173

590
590

738
344
1,083

26,504
1,491
272
2,182(262)30,187
69,709145,495

25,31157
167
339
1,628(533)
26,97069,227148,292

(Million yen)
As of December 31,2018
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
Retirement benefit liability
Asset retirement obligations
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
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

As of December 31,201917,98913,814
9,059
1,357
225
3,182
179
553
2,870
49,233

17,632
13,008
6,010
2,159
249
3,639
566
527
2,521
46,317

7,332
348
3,888
4,968
72
2,254
18,86468,097

8,059
505
4,503
4,769
70
2,627
20,53566,852

7,472
5,672
68,430(4,047)
77,528

7,472
5,672
70,396(4,047)79,4942,713
4(4,549)(1,389)(3,220)3,090
77,397
145,495

3,329
0(5,050)(1,078)(2,798)
4,743
81,439148,292

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
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
Impairment loss
Loss on retirement of property, plant and equipment
Loss on valuation of investment securities
Expense on restructuring of organization
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

For the fiscal year
ended December 31,2018

For the fiscal year
ended December 31,2019

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

167,237
131,50735,73029,504
6,225

58
311
204
1,572
330
2,476

78
330
194
741
349
1,693

266
239
172
678
6,910

305
109
186
600
7,319

185
100
285

211
100
311

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

190
39
2
216
448
7,181
2,039
387
2,427
4,754
639
4,114

Consolidated Statements of Comprehensive Income(Million yen)

Net income
Other comprehensive income
Valuation difference on available-for-sale securities
Deferred gains or losses on hedgesForeign 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

For the fiscal year
ended December 31,2018

For the fiscal year
ended December 31,2019

4,970

4,754

(2,136)0(1,595)
63

647
(307)
287(545)(42)(4,213)
756

584
5,339

559
196

4,680
658Consolidated Statements of Changes in Net Assets
For the fiscal year ended December 31,2018(Million yen)
Shareholders' equity

65,638

Total
shareholders'equity(4,046)74,737

Dividends of surplus(1,810)(1,810)Net income attributable to owners of parent

4,692

Capital stock
Balance at beginning of current period

7,472

Capitalsurplus

Retainedearnings

5,672

TreasurysharesChanges of items during the period

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

(0)

(90)

Total changes of items during period
Balance at end of current period

4,692
(0)

(90)

--

2,791

(0)

2,790

7,472

5,672

68,430(4,047)

77,528

Accumulated other comprehensive income
TotalValuation
Foreign currency Remeasurements accumulateddifference on Deferred gains ortranslation of defined benefit
otheravailable-for-sale losses on hedges
adjustment
planscomprehensive
securities
incomeBalance at beginning of current period

4,957

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

NonTotal net
controlling
assetsinterests
3,116

78,766Changes of items during the period
Dividends of surplus
Net income attributable to owners ofparentPurchase 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(1,810)
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

For the fiscal year ended December 31,2019(Million yen)
Shareholders' equity

68,430Total
shareholders'equity(4,047)
77,528Dividends of surplus(1,751)(1,751)

Net income attributable to owners of parent

4,114

4,114

Capital stock
Balance at beginning of current period

7,472

CapitalsurplusRetainedearnings

5,672

TreasurysharesChanges of items during the period

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

(0)
(396)

Total changes of items during period
Balance at end of current period

(0)
(396)

--

1,966

(0)

1,966

7,472

5,672

70,396(4,047)79,494

Accumulated other comprehensive income
TotalValuation
Foreign currency Remeasurements accumulateddifference on Deferred gains ortranslation of defined benefit
otheravailable-for-sale losses on hedges
adjustment
planscomprehensive
securities
incomeBalance at beginning of current period

2,713

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

NonTotal net
controlling
assetsinterests
3,090

77,397

Changes of items during the period
Dividends of surplus
Net income 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(1,751)
4,114
(0)
(396)
615

(4)

(500)

311

421

1,653

2,075

615

(4)

(500)

311

421

1,653

4,041

3,329

0

(5,050)(1,078)(2,798)

4,743

81,439

Consolidated Statements of Cash Flows(Million yen)
For the fiscal year
ended December 31,2018Cash flows from operating activities
Income before income taxes
Depreciation and amortzation
Impairment loss
Amortization of goodwill
Increase (decrease) in allowance for doubtful accounts
Increase (decrease) in retirement 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
Expense on restructuring of organizationDecrease (increase) in notes and accounts receivable - trade
Decrease (increase) in inventories
Increase (decrease) in notes and accounts payable - trade
including 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

For the fiscal year
ended December 31,2019

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

7,181
4,340
190
108
267
179
(25)
(408)
305
(741)
39(211)2(100)
216
1,611
(469)

2,793

(1,884)

(738)
7,223
765
(263)
238
100
(2,824)
5,239

71
10,675707(305)
100(1,358)
9,819(6,266)57(189)1(602)
56(335)(7,279)(5,095)21(130)480(54)44(373)(5,106)

(Million yen)
For the fiscal year
ended December 31,2018
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
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
Increase (decrease) in cash and cash equivalents resulting fromchange of scope of consolidation
Cash and cash equivalents at end of period

For the fiscal year
ended December 31,2019

3,727
2,601
(4,152)(1,810)
(223)
(264)
(122)
(400)
(2,562)
9,351(3,137)
3,097(1,521)(1,751)(167)(340)(3,821)
254
1,146
6,788

-

1,426

6,788

9,361