Translation tice: 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. Company name: Summary of Consolidated Financial Results for the Six Months Ended September 30, 2015 (Based on Japanese GAAP) FUJIKURA KASEI CO., LTD. Stock exchange listing: Tokyo Stock code: 4620 URL http://www.fkkasei.co.jp Representative: President Daisuke Kato Inquiries: Senior Vice President and Division Director of Administrative Headquarters Yoshizo Shimoda TEL 03-3436-1101 Scheduled date to file Quarterly Securities Report: vember 10, 2015 Scheduled date to commence dividend payments: December 2, 2015 Preparation of supplementary material on quarterly financial results: Holding of quarterly financial results meeting: Yes (for analysts) vember 10, 2015 (Amounts are rounded off to the nearest million yen) 1. Consolidated financial results for the six months ended September 30, 2015 (from April 1, 2015 to September 30, 2015) (1) Consolidated operating results (cumulative) Percentages indicate year-on-year changes Net sales Operating income Ordinary income Profit attributable to owners of parent Millions of yen % Millions of yen % Millions of yen % Millions of yen % September 30, 2015 37,006 6.6 1,414 16.6 1,417 13.0 736 8.0 September 30, 2014 34,715 (3.9) 1,212 (2.0) 1,255 (15.5) 681 (27.5) Earnings per share Diluted earnings per share Yen Yen September 30, 2015 22.51 September 30, 2014 20.84 (2) Consolidated financial position Total assets Net assets Equity ratio Millions of yen Millions of yen % As of September 30, 2015 53,014 32,336 55.0 As of March 31, 2015 52,905 31,930 54.3 2. Cash dividends Annual dividends per share 1st quarter-end 2nd quarter-end 3rd quarter-end Fiscal year-end Total Yen Yen Yen Yen Yen Year ended March 31, 2015 7.00 7.00 14.00 Year ending March 31, 2016 7.00 Year ending March 31, 2016 (Forecast) 7.00 14.00 3. Forecast of consolidated financial results for the year ending March 31, 2016 (from April 1, 2015 to March 31, 2016) Percentages indicate year-on-year changes Profit attributable to Net sales Operating income Ordinary income Earnings per share owners of parent Millions of yen % Millions of yen % Millions of yen % Millions of yen % Yen Full year 72,000 3.5 2,800 26.8 2,900 12.3 1,600 28.1 48.96 1
4. tes (1) Changes in significant subsidiaries during the six months ended September 30, 2015 (changes in specified subsidiaries resulting in the change in scope of consolidation): (2) Application of special accounting methods for preparing quarterly consolidated financial statements: (3) 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: Yes Changes in accounting policies due to other reasons: Changes in accounting estimates: Restatement of prior period financial statements: (4) Number of issued shares (common shares) Total number of issued shares at the end of the period (including treasury shares) As of September 30, 2015 32,716,878 shares As of March 31, 2015 32,716,878 shares Number of treasury shares at the end of the period As of September 30, 2015 38,168 shares As of March 31, 2015 38,168 shares Average number of shares during the period (cumulative from the beginning of the fiscal year) September 30, 2015 32,678,710 shares September 30, 2014 32,678,710 shares 2
Quarterly consolidated financial statements Consolidated balance sheets Assets Current assets As of March 31, 2015 As of September 30, 2015 Cash and deposits 10,622,810 10,941,411 tes and accounts receivable - trade 14,155,550 13,924,036 Merchandise and finished goods 3,877,880 3,618,453 Work in process 112,716 108,968 Raw materials and supplies 2,163,249 2,223,906 Deferred tax assets 458,727 466,377 Other 1,247,550 1,705,568 Allowance for doubtful accounts (123,677) (159,777) Total current assets 32,514,805 32,828,942 n-current assets Property, plant and equipment Buildings and structures 10,134,847 10,369,099 Accumulated depreciation (5,142,593) (5,330,108) Buildings and structures, net 4,992,254 5,038,991 Machinery, equipment and vehicles 12,565,269 12,900,746 Accumulated depreciation (9,602,852) (9,920,086) Machinery, equipment and vehicles, net 2,962,417 2,980,660 Tools, furniture and fixtures 3,918,282 4,045,521 Accumulated depreciation (3,230,805) (3,324,942) Tools, furniture and fixtures, net 687,477 720,579 Land 4,472,253 4,487,887 Leased assets 215,084 313,106 Accumulated depreciation (119,322) (146,698) Leased assets, net 95,762 166,408 Construction in progress 135,881 63,435 Total property, plant and equipment 13,346,044 13,457,960 Intangible assets Software 792,880 715,607 Goodwill 121,268 82,032 Other 1,408,079 1,350,168 Total intangible assets 2,322,227 2,147,807 Investments and other assets Investment securities 2,379,718 2,184,715 Long-term loans receivable 57,175 43,299 Deferred tax assets 300,315 319,202 Other 2,017,361 2,071,350 Allowance for doubtful accounts (32,818) (38,956) Total investments and other assets 4,721,751 4,579,610 Total non-current assets 20,390,022 20,185,377 Total assets 52,904,827 53,014,319 3
As of March 31, 2015 As of September 30, 2015 Liabilities Current liabilities tes and accounts payable - trade 8,240,981 7,885,473 Short-term loans payable 4,018,469 4,480,967 Current portion of bonds 500,000 500,000 Income taxes payable 144,693 248,300 Accrued expenses 983,043 938,858 Provision for bonuses 724,305 587,113 Lease obligations 42,601 54,040 Other 1,121,079 959,268 Total current liabilities 15,775,171 15,654,019 n-current liabilities Bonds payable 1,500,000 1,250,000 Deferred tax liabilities 25,943 34,290 Net defined benefit liability 2,686,740 2,707,954 Long-term accounts payable - other 279,818 279,716 Lease obligations 85,147 130,035 Other 621,791 622,426 Total non-current liabilities 5,199,439 5,024,421 Total liabilities 20,974,610 20,678,440 Net assets Shareholders' equity Capital stock 5,352,121 5,352,121 Capital surplus 5,040,199 5,040,199 Retained earnings 16,193,004 16,699,855 Treasury shares (24,969) (24,969) Total shareholders' equity 26,560,355 27,067,206 Accumulated other comprehensive income Valuation difference on available-for-sale securities 539,343 391,805 Foreign currency translation adjustment 2,568,890 2,667,787 Remeasurements of defined benefit plans (954,757) (949,497) Total accumulated other comprehensive income 2,153,476 2,110,095 n-controlling interests 3,216,386 3,158,578 Total net assets 31,930,217 32,335,879 Total liabilities and net assets 52,904,827 53,014,319 4
Consolidated statements of income (cumulative) and consolidated statements of comprehensive income (cumulative) Consolidated statements of income (cumulative) September 30, 2014 September 30, 2015 Net sales 34,715,401 37,006,194 Cost of sales 26,636,841 28,279,516 Gross profit 8,078,560 8,726,678 Selling, general and administrative expenses 6,866,385 7,312,976 Operating income 1,212,175 1,413,702 n-operating income Interest income 8,011 19,221 Dividend income 35,025 46,971 Rent income on non-current assets 28,635 27,396 Other 86,984 132,156 Total non-operating income 158,655 225,744 n-operating expenses Interest expenses 34,494 30,484 Foreign exchange losses 45,017 128,234 Other 36,602 63,291 Total non-operating expenses 116,113 222,009 Ordinary income 1,254,717 1,417,437 Income before income taxes and minority interests 1,254,717 1,417,437 Income taxes - current 261,849 501,156 Income taxes - deferred 151,524 54,264 Total income taxes 413,373 555,420 Profit 841,344 862,017 Profit attributable to non-controlling interests 160,432 126,416 Profit attributable to owners of parent 680,912 735,601 5
Consolidated statements of comprehensive income (cumulative) September 30, 2014 September 30, 2015 Profit 841,344 862,017 Other comprehensive income Valuation difference on available-for-sale securities 57,821 (148,161) Foreign currency translation adjustment (380,124) 139,499 Remeasurements of defined benefit plans, net of tax 36,984 5,260 Share of other comprehensive income of entities accounted for using equity method 19,092 (14,442) Total other comprehensive income (266,227) (17,844) Comprehensive income 575,117 844,173 Comprehensive income attributable to Comprehensive income attributable to owners of parent 503,849 692,221 Comprehensive income attributable to non-controlling interests 71,268 151,952 6
Consolidated statements of cash flows September 30, 2014 September 30, 2015 Cash flows from operating activities Income before income taxes and minority interests 1,254,717 1,417,437 Depreciation 875,226 889,847 Amortization of goodwill 18,337 24,226 Increase (decrease) in net defined benefit liability 85,521 30,291 Increase (decrease) in provision for bonuses (39,557) (138,163) Increase (decrease) in allowance for doubtful accounts 22,865 40,695 Interest and dividend income (43,036) (66,192) Interest expenses 34,494 30,484 Decrease (increase) in notes and accounts receivable - trade (628,777) 318,350 Decrease (increase) in inventories 94,731 264,610 Decrease (increase) in other current assets (145,144) (501,500) Increase (decrease) in notes and accounts payable - trade (344,353) (420,391) Increase (decrease) in other current liabilities 4,473 (195,514) Other, net (15,428) (226,269) Subtotal 1,174,069 1,467,911 Interest and dividend income received 48,971 66,192 Interest expenses paid (35,745) (34,351) Income taxes paid (667,223) (391,164) Income taxes refund 70,268 103,838 Net cash provided by (used in) operating activities 590,340 1,212,426 Cash flows from investing activities Payments into time deposits (441,478) (716,058) Proceeds from withdrawal of time deposits 741,420 907,193 Purchase of property, plant and equipment (465,480) (716,106) Purchase of intangible assets (43,643) (36,561) Purchase of investment securities (3,101) (24,176) Purchase of shares of subsidiaries resulting in change in scope of consolidation (133,230) Other, net (219,469) 22,898 Net cash provided by (used in) investing activities (564,981) (562,810) Cash flows from financing activities Net increase (decrease) in short-term loans payable 48,244 464,435 Repayments of long-term loans payable (42,765) (46,095) Redemption of bonds (250,000) (250,000) Repayments of lease obligations (24,526) (28,440) Cash dividends paid (228,751) (228,751) Dividends paid to non-controlling interests (43,650) (29,833) Net cash provided by (used in) financing activities (541,448) (118,684) Effect of exchange rate change on cash and cash equivalents (105,292) 41,994 Net increase (decrease) in cash and cash equivalents (621,381) 572,926 Cash and cash equivalents at beginning of period 8,833,585 9,484,255 Cash and cash equivalents at end of period 8,212,204 10,057,181 7