Summary of Consolidated Financial Statements
for the First Quarter of the Term Ending March 2018 (Japan GAAP)
August 3, 2017
Name of Listed Company: TSUMURA & CO.

Exchange: Tokyo Stock Exchange

Code:

URL:

4540

Representative:
Contact:

http://www.tsumura.co.jp

Position: President & Representative Director
Position: Head of Corporate Communications Dept.
Telephone: 81-3-6361-7100

Name: Terukazu Kato
Name: Noboru Suzuki

Scheduled date of submission: August 4, 2017
Scheduled date of dividend payment commencement: Preparation of supplementary materials for the quarterly financial statements: No.
Holding of the quarterly results briefing: No.
(Figures are rounded down to the nearest one million yen.)

1. Consolidated business results for the first quarter of the term ending March 2018(from April 1, 2017 to June 30, 2017)(1) Financial results (year to date)(Figures in percentages denote the year-on-year change.)
Net sales

Profit attributable toowners of parent

Ordinary profit

Million yen%

Million yen%

Million yen%

Million yen%

29,068

1.3

4,441

-1.1

4,579

9.9

3,194

8.2

28,692

7.2

4,489

-6,2

4,168

-18.8

2,952

-5.9Three month period ended
June 30, 2017
Three month period ended
June 30, 2016
(Note) Comprehensive income

Operating profit

Three month period ended June 30, 2017: 3,312 million yen (－%)
Three month period ended June 30, 2016: -316 million yen (－%)

Profit per share

Fully diluted profit per share
Yen

Three month period ended
June 30, 2017
Three month period ended
June 30, 2016

Yen

46.45

－41.87－(2) Consolidated financial conditions
Total assets
Million yen

As of June 30, 2017
As of March 31, 2017
(Reference) Shareholders’ equity:

Shareholders’equity ratio

Net assets
Million yen%

255,385
158,508
222,008
157,397
As of June 30, 2017: 155,911 million yen

61.0
69.7
As of March 31, 2017: 154,783million yen

2. Dividends
Dividend per share
End of firstquarterEnd of secondquarter
Yen

End of thirdquarterYen

F Y 3/2017
32.00－
F Y 3/2018－
FY 3/2018 (Projection)
32.00(Note) Revisions to dividends projection published most recently: No

End of fiscal year
Yen

Total

Yen

Yen－

32.00

64.00

－

32.00

64.00

3. Projections of consolidated business results for the term ending March 2018 (From April 1, 2017 to March 31, 2018)(Figures in percentage show the rate of increase or decrease from the previous fiscal year for full-year
and from the second quarter of the previous fiscal year for second quarter (aggregate).)Net sales

Operating profit

Profitattributable to ownersof parent

Ordinary profit

Profit per share

Million yen%

Million yen%

Million yen%

Million yen%

Yen

58,600

4.0

8,200

4.2

8,400

14.0

6,100

14.9

88.69

Full-year
120,700
5.0
17,600 10.1
18,10010.4(Note) Revisions to business results projection published most recently: No12,700

1.7

184.64

Second quarter(aggregate)

Notes(1) Important changes of subsidiaries during the term(change of specified subsidiaries that lead to a change in the scope of consolidation): No(2) Application of special accounting practices in consolidated quarterly financial statements preparation: Yes(3) Changes in accounting principles and procedures and the method for indication, etc.
1) Changes associated with the revision of accounting principles, etc.:
No2) Change other than 1):
No3) Accounting estimate change:
No4) Retrospective restatement:No(4) Number of shares issued (common stock)1) Number of shares issued at the end of the term(including treasury stock) (shares)
2) Number of treasury stock at the end of the term(shares)
3) Average number of shares during the term (shares)

FY 3/2018 1Q

70,771,662

FY 3/201770,771,662

FY 3/2018 1Q

1,989,282

FY 3/2017

1,989,282

FY 3/2018 1Q

68,782,380

FY 3/2017 1Q

70,524,031* This Summary of Consolidated Quarterly Financial Statements does not require the quarterly audit procedure.

* Explanation about the proper use of financial projections and other important notes(Note about forward-looking information)
In these materials, earnings forecasts and other statements about the future are forward-looking statements based on theinformation currently available and certain assumptions that the Company regards as reasonable. Accordingly, the Company
cannot make promises to achieve such forecasts. Actual financial results may differ materially from these forecasts depending
on a number of important factors.

1. Quarterly Consolidated Financial Statements(i) Quarterly consolidated balance sheet(Unit: million yen)
As ofMarch 31, 2017
AssetsCurrent assets
Cash and deposits
Notes and accounts receivable-trade
Merchandise and finished goods
Work in process
Raw materials and supplies
Other
Allowance for doubtful accounts
Total current assets
Non-current assets
Property, plant and equipment
Buildings and structures
Other
Accumulated depreciation
Total property, plant and equipment
Intangible assets
Investment and other assets
Investment securities
Net defined benefit asset
Other
Allowance for doubtful accounts
Total investment and other assets
Total non-current assets
Total assets
Liabilities
Current liabilitiesNotes and accounts payable - trade
Short-term loans payable
Income taxes payable
Provision for sales returns
Other
Total current liabilities
Non-current liabilities
Bonds payable
Long-term loans payable
Net defined benefit liability
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
Revaluation reserve for landForeign 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 ofJune 30, 2017

29,931
40,347
8,122
14,547
29,467
12,266(4)
134,679

62,54240,346
8,262
14,206
27,843
12,893(4)
166,09064,42971,301(71,044)
64,686266

64,17873,492(72,161)
65,508317

17,530
1,058
3,786
(0)
22,37687,329222,008

18,633
1,246
3,588
(0)
23,46889,295
255,385

6,696
12,5811,901
13
10,691
31,883

6,453
25,3141,775
415,65149,198－24,37684
8,267
32,72764,611

30,000
9,376
86
8,216
47,67896,877

19,4871,940
129,937(5,393)145,972

19,4871,940
130,931(5,393)
146,966

3,845
925
2,673
1,470
(102)
8,811
2,613
157,397
222,008

4,613
948
2,673
764
(55)
8,944
2,597
158,508
255,385

(ii) Quarterly Consolidated Statements of Income and Quarterly Consolidated Statements of Comprehensive Income
Quarterly consolidated statement of income / For the First Quarter Consolidated Accumulative Term
(Unit: million yen)

Net sales
Cost of sales
Gross profit
Selling, general and administrative expenses
Operating profit
Non-operating income
Interest income
Dividend income
Share of profit of entities accounted for using equity method
Foreign exchange gains
Other
Total non-operating income
Non-operating expenses
Interest expenses
Bond issuance cost
Share of loss of entities accounted for using equity method
Foreign exchange losses
Other
Total non-operating expenses
Ordinary profit
Extraordinary income
Gain on sales of non-current assets
Total extraordinary incomeExtraordinary losses
Loss on sales of non-current assets
Loss on retirement of non-current assets
Loss on disaster
Total extraordinary losses
Profit before income taxes
Income taxes
ProfitProfit attributable to non-controlling interests
Profit attributable to owners of parent

Three month period ended
June 30, 2016
(From April 1, 2016
to June 30, 2016)

Three month period ended
June 30, 2017
(From April 1, 2017
to June 30, 2017)

28,692
12,272
16,41911,9304,489

29,06812,366
16,701
12,259
4,441

15
187－－
129
333

14184
18
14
95
326

38－
18592
4653
4,168

39
143－
－
5
188
4,579－
－

22－
34
7
4,161
1,135
3,025
73
2,952

515－
20
4,561
1,288
3,272
77
3,194

Quarterly Consolidated Statements of Comprehensive Income / For the First Quarter Consolidated Accumulative Term
(Unit: million yen)

ProfitOther comprehensive incomeValuation difference on available-for-sale securities
Deferred gains or losses on hedges
Foreign currency translation adjustment
Remeasurements of defined benefit plans
Share of other comprehensive income (loss) of entities
accounted for using equity method
Total other comprehensive income
Comprehensive income
Comprehensive income attributable toOwners of parent
Non-controlling interests

Three month period ended
June 30, 2016
(From April 1, 2016
to June 30, 2016)
3,025

Three month period ended
June 30, 2017
(From April 1, 2017
to June 30, 2017)
3,272

(249)
(1,840)(1,271)51

768
23(784)
47

(32)

(14)

(3,342)
(316)

39
3,312

(189)
(127)

3,328
(16)

(iii) Quarterly Consolidated Statement of Cash Flows

Cash flows from operating activities
Profit before income taxes
Depreciation
Increase (decrease) in allowance for doubtful accounts
Interest and dividend income
Interest expenses
Bond issuance cost
Share of (profit) loss of entities accounted for using equity
methodLoss (gain) on sales and retirement of property,
plant and equipment
Decrease (increase) in notes and accounts receivable - trade
Decrease (increase) in inventories
Increase (decrease) in notes and accounts payable - trade
Decrease (increase) in net defined benefit asset
Increase (decrease) in net defined benefit liability
Other
SubtotalInterest and dividend income received
Interest expenses paid
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 intangible assets
Purchase of short-term and long-term investment securities
Payments of loans receivableCollection of loans receivable
Payments into time deposits
Proceeds from withdrawal of time deposits
OtherNet cash provided by (used in) investing activities
Cash flows from financing activities
Decrease in short-term loans payable
Proceeds from issuance of bonds
Cash dividends paid
OtherNet 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 in cash and cash equivalents from newly consolidated
subsidiary
Cash and cash equivalents at end of period

Three month period ended
June 30, 2016
(From April 1, 2016
to June 30, 2016)(Unit: million yen)Three month period ended
June 30, 2017
(From April 1, 2017
to June 30, 2017)

4,161
1,284
(2)(203)
38
－

4,561
1,503
(0)
(198)
39
143

18(18)

318

607
(378)
(420)
(71)
(20)
2,982
7,998
222
(37)
(2,662)
5,520

(31)
1,379
(120)
(93)
(24)
2,915
10,074197(32)(1,607)
8,631(4,103)
－
(8)
(2)
(0)
1(9)
12
(11)
(4,122)(1,134)
3(64)
(2)
(1)
0
(8)
－
(11)
(1,219)－－(2,187)(8)(2,195)(151)(948)
25,128(2,267)29,856(2,143)(10)
25,436(245)
32,60329,901

290－

24,47062,504(iv)Notes to the Consolidated Quarterly Financial Statements(Notes on premise of a going concern)
No relevant items.
(Notes on case of extreme change in shareholder's equity amount)
No relevant items.
(Transfer of important subsidiaries during the quarter under review)No relevant items.
Though not a transfer of a specified subsidiary, Tsumura China Inc. has been consolidated due to the completionof investment in the company during the first quarter of the fiscal year under review.
(Application of specific accounting treatment to the preparation of quarterly financial statements)(Deferment of cost variance)
Cost variance caused by seasonal changes in operation rates, etc. is expected to be eliminated for the most partby the end of the cost accounting period, which is, therefore, deferred as “current liabilities (other).”