Reference translation Financial Results for the Year Ended May 11, 2018 Company Name: Takasago Thermal Engineering Co., Ltd. Stock Exchange Listing: Tokyo 1st section Code Number: 1969 Company URL: https://www.tte-net.com/ Representative: Contact: Phone: (03) 6369-8215 Scheduled date of ordinary general meeting of shareholders: June 26, 2018 Scheduled date to submit the Securities Report: June 26, 2018 Atsushi Ouchi, Chairman, President and Representative Director Yoshiyuki Hara, Director and Managing Executive Officer, Group General Manager, Corporate Group 1. Consolidated Results for the Year Ended (April 1, 2017 (1) Consolidated Results of Operations Scheduled date to commence dividend payment: June 27, 2018 (Fraction less than one million yen has been omitted) (% indicates changes ) Net sales Operating income Ordinary income Net income attributable to owners of parent (Millions of yen) (Millions of yen) (Millions of yen) (Millions of yen) 289,933 11.4 16,362 32.1 17,461 30.0 11,804 36.2 260,204 3.5 12,383 33.3 13,427 26.7 8,665 30.3 (Note) Comprehensive income: : 14,398 million year on year: 54.2% : 9,339 million year on year: -% Basic earnings per share Diluted earnings per share Rate of return on Ratio of ordinary Ratio of operating equity income to total assets income to net sales (Yen) (Yen) 160.41 159.94 10.3 7.0 5.6 117.83 117.49 8.2 5.8 4.8 (Reference) Equity in earnings (losses) of affiliated companies: : 189 million : 249 million (2) Consolidated Financial Positions Total assets Net assets Equity ratio Net assets per share (Millions of yen) (Millions of yen) (Yen) 265,326 124,484 45.4 1,637.63 234,716 111,574 46.6 1,487.29 (Reference) Shareholders equity: : 120,546 million : 109,382 million (3) Consolidated Cash Flows Cash flows from operating activities Cash flows from investing activities Cash flows from financing activities Cash and cash equivalents at the end of the period (Millions of yen) (Millions of yen) (Millions of yen) (Millions of yen) 6,170 (5,685) 7,107 54,558 23,528 2,329 (6,079) 46,556-1 -
2. Dividends First quarter end Second quarter end Cash dividends per share Third quarter end Year-end Annual Total cash dividends (annual) Payout ratio (consolidated) Ratio of dividends to net assets (consolidated) (Yen) (Yen) (Yen) (Yen) (Yen) (Millions of yen) - 14.00-22.00 36.00 2,657 30.6 2.5-15.00-35.00 50.00 3,693 31.2 3.2 Year ending March 31, 2019 (estimated) - 25.00-25.00 50.00 31.2 (Note) Breakdown of the 22 year-end dividends for the year ended : Ordinary dividends of 16, special dividends of 6 3. Forecasts for the Consolidated Financial Results for the Year Ending March 31, 2019 (April 1, 2018 to March 31, 2019) End of second quarter (% indicates changes corresponding ) Net income attributable to Basic earnings Net sales Operating income Ordinary income owners of parent per share (Millions of yen) (Millions of yen) (Millions of yen) (Millions of yen) (Yen) 140,000 7.9 6,100 (11.4) 6,500 (11.5) 4,200 (7.0) 57.07 Full year 300,000 3.5 16,500 0.8 17,500 0.2 11,800 (0.0) 160.34 (Reference) Orders received (estimated): (End of second quarter) 155,000 million (Full year) 280,000 million *Notes (1) in Important Subsidiary (Change in Specific Subsidiary Accompanying Change in Scope of Consolidation) During the Term: None (2) in Accounting Policies, in Accounting Estimates and Restatements (i) in accounting policies in accordance with the revision of accounting standard, etc.: None (ii) in accounting policies other than (i) above: None (iii) in accounting estimates: None (iv) Restatements: None (3) Number of Issued Shares (Common Stock) (i) Number of issued shares at fiscal year end (including treasury stock) : : 82,765,768 shares 82,765,768 shares (ii) Number of treasury shares at fiscal year end : : 9,155,382 shares 9,220,817 shares (iii) Average number of shares during the period : 73,594,611 shares : 73,539,820 shares (References) Summary of Non-consolidated Financial Results 1. Non-consolidated Financial Results for the Year Ended (April 1, 2017 (1) Non-consolidated Results of Operations (% indicates changes ) Net sales Operating income Ordinary income Net income (Millions of yen) (Millions of yen) (Millions of yen) (Millions of yen) 217,474 8.2 13,570 17.7 15,023 18.3 10,306 19.8 200,945 0.9 11,527 41.8 12,703 38.0 8,606 48.3 Basic earnings per share Diluted earnings per share (Yen) (Yen) 139.53 139.14 116.60 116.26-2 -
(2) Non-consolidated Financial Positions Total assets Net assets Equity ratio Net assets per share (Millions of yen) (Millions of yen) (Yen) 229,223 108,806 47.4 1,469.76 205,496 99,565 48.3 1,345.92 (Reference) Shareholders equity: : 108,578 million : 99,347 million 2. Forecasts for the Non-consolidated Financial Results for the Year Ending March 31, 2019 (April 1, 2018 to March 31, 2019) End of second quarter (% indicates changes corresponding ) Basic earnings Net sales Operating income Ordinary income Net income per share (Millions of yen) (Millions of yen) (Millions of yen) (Millions of yen) (Yen) 106,000 8.7 5,250 (16.1) 6,200 (13.0) 4,300 (6.9) 58.22 Full year 228,000 4.8 13,100 (3.5) 14,600 (2.8) 10,400 0.9 140.81 (Reference) Orders received (estimated): (End of second quarter) 120,000 million (Full year) 205,000 million * These consolidated financial results are outside the scope of audit by certified public accountants or audit corporations *Explanation concerning proper use of the forecasts for the financial results and other special instructions Forward-looking statements, including the financial results forecasts, in this document are based on currently available information held by the Company and on certain premises considered reasonable by the Company. It is not the intention of the Company to undertake the realization of these statements. Actual business results may differ forecasts, depending on various factors. - 3 -
(References) 1. Consolidated Financial Statements (1) Consolidated Balance Sheets (Millions of yen) (as of ) (as of ) ASSETS: Current assets: Cash and time deposits 47,075 55,067 Notes receivable, accounts receivable from completed contracts 107,392 116,665 Electronically recorded monetary claims operating 9,559 12,190 Cost of uncompleted contracts 3,358 4,048 Deferred tax assets 1,744 1,765 Other current assets 5,261 8,246 Less allowance for doubtful accounts (210) (166) Total current assets 174,181 197,817 Fixed assets: Property, plant and equipment at cost Buildings and structures 9,568 8,431 Machinery and vehicles 961 1,677 Tools, furniture and fixtures 3,191 3,507 Land 1,942 3,787 Construction in progress 172 46 Less accumulated depreciation (8,869) (8,293) Total property, plant and equipment 6,966 9,157 Intangible fixed assets: Goodwill - 2,745 Other intangible assets 714 1,671 Total intangible assets 714 4,416 Investments and other assets: Investment securities 41,376 42,017 Long- debt 1,209 1,280 Net defined benefit asset 2,612 3,318 Deferred tax assets 451 444 Guarantee deposits paid 2,681 2,857 Insurance reserve fund 4,791 4,581 Other 1,045 651 Less allowance for doubtful accounts (1,314) (1,217) Total investments and other assets 52,854 53,934 Total fixed assets 60,534 67,509 TOTAL ASSETS 234,716 265,326-4 -
(Millions of yen) (as of ) (as of ) LIABILITIES Current liabilities: Notes payable, accounts payable for construction contracts 57,096 62,068 Electronically recorded obligations - operating - 23,571 Short- debt 5,527 6,123 Accounts payable other 27,824 2,119 Income taxes payable 4,310 1,980 Advances received on uncompleted contracts 5,401 7,673 Deferred tax liabilities - 24 Allowance for bonuses to directors 137 137 Allowance for claim expenses 792 958 Allowance for losses on construction contracts 1,993 2,175 Other current liabilities 12,997 16,067 Total current liabilities 116,080 122,900 Non-current liabilities: Bonds payable - 10,000 Net defined benefit liability 1,316 1,041 Allowance for accrued severance indemnities to directors and corporate auditors 8 5 Long- accounts payable other 64 69 Deferred tax liabilities 5,166 6,271 Other non-current liabilities 505 554 Total non-current liabilities 7,061 17,942 TOTAL LIABILITIES 123,141 140,842 NET ASSETS Shareholders equity: Capital stock 13,134 13,134 Capital surplus 12,854 12,730 Retained earnings 80,767 89,839 Treasury stock (8,850) (8,789) Total shareholders equity 97,906 106,916 Accumulated other comprehensive income: Net unrealized holding gains on securities 11,603 13,230 Foreign currency translation adjustments (191) (360) Remeasurements of defined benefit plans 64 760 Total accumulated other comprehensive income 11,476 13,630 Subscription rights to shares 218 228 Non-controlling interests 1,972 3,708 Total net assets 111,574 124,484 TOTAL LIABILITIES AND NET ASSETS 234,716 265,326-5 -
(2) Consolidated Statements of Income and Comprehensive Income Consolidated Statements of Income (Millions of yen) Net sales 260,204 289,933 Cost of sales 226,122 250,383 Gross profit 34,082 39,550 Selling, general and administrative expenses: Employees salaries and allowances 8,540 9,507 Employees severance and retirement benefits 356 381 Provision for allowance for accrued severance indemnities to directors and corporate auditors 1 1 Stationery expenses 1,474 1,762 Provision of allowance for doubtful accounts 90 (47) Rents 2,316 2,365 Depreciation 412 357 Other 8,506 8,858 Total selling, general and administrative expenses 21,699 23,187 Operating income 12,383 16,362 Non-operating income: Interest income 170 227 Dividends income 599 604 Insurance income 149 142 Equity in earnings of affiliates 249 189 Reversal of provision for loss on guarantees 47 - Rent of real estate 451 483 Other 222 232 Total non-operating income 1,891 1,879 Non-operating expenses: Interest expenses 52 163 Commission fee 21 3 Bond issuance cost - 70 Foreign currency exchange losses 181 60 Provision of allowance for doubtful accounts 294 199 Expenses on rent of real estate 223 222 Other 73 62 Total non-operating expenses 846 781 Ordinary income 13,427 17,461 Extraordinary gains: Gain on sales of fixed assets - 327 Gain on sale of investment securities 1,026 46 Gain on step acquisitions - 152 Gain on repayment of securities to retirement benefit trust 432 - Other 1 - Total extraordinary gains 1,460 526-6 -
(Millions of yen) Extraordinary losses: Loss on retirement of fixed assets 7 6 Impairment loss 909 - Write-down of investment securities 310 753 Other 79 81 Total extraordinary losses 1,306 841 Income before income taxes 13,581 17,146 Income taxes-current 5,631 5,031 Income taxes-deferred (732) (41) Total income taxes 4,898 4,989 Net income 8,683 12,157 Net income attributable to non-controlling interests 18 352 Net income attributable to owners of parent 8,665 11,804-7 -
Consolidated Statements of Comprehensive Income (Millions of yen) Net income 8,683 12,157 Other comprehensive income: Net unrealized holding gains on securities 912 1,622 Foreign currency translation adjustments (510) (163) Remeasurements of defined benefit plans, net of tax 154 742 Share of other comprehensive income of associates accounted for using equity method 98 40 Total other comprehensive income 655 2,241 Comprehensive income 9,339 14,398 Comprehensive income attributable to: Comprehensive income attributable to owners of the parent Comprehensive income (loss) attributable to non-controlling interests 9,463 13,959 (124) 439-8 -
(3) Consolidated Statements of Cash Flows Cash flows from operating activities: (Millions of yen) Income before income taxes 13,581 17,146 Depreciation and amortization 776 730 Impairment loss 909 - Amortization of goodwill 27 101 (decrease) in allowance for doubtful accounts 366 (145) (decrease) in allowance for claim expenses 106 164 (decrease) in allowance for losses on construction contracts (decrease) in provision for loss on guarantees (decrease) in allowance for bonuses to directors (decrease) in provision for directors retirement benefits 268 173 (47) - (1) 0 (0) (2) Decrease (increase) in net defined benefit asset 1,218 298 (decrease) in net defined benefit liability 68 (260) Interest and dividends income (770) (832) Interest expenses 52 163 Foreign currency exchange loss (gain) 12 (26) Bond issuance cost - 70 Loss (gain) on sale of investment securities (1,026) (46) Write-down of investment securities 310 753 Loss (gain) on step acquisitions - (152) Equity in (earnings) losses of affiliates (249) (189) Loss (gain) on sales of fixed assets 3 (327) Loss on retirement of fixed assets 7 6 Decrease (increase) in trade receivable 5,923 (9,429) Decrease (increase) in cost of uncompleted contracts (142) (211) (decrease) in notes and accounts payable trade (decrease) in advances received on uncompleted contracts (1,277) 5,488 2,359 1,909 (decrease) in accrued consumption tax 3,955 (4,028) Decrease (increase) in consumption tax receivable (40) (2,183) Other 244 3,384 Subtotal 26,640 12,555 Interests and dividends income 811 871 Interest paid (54) (141) Income taxes paid (3,925) (7,114) Income taxes refund 55 - Net cash provided by (used in) operating activities 23,528 6,170-9 -
Cash flows from investing activities: (Millions of yen) in time deposits (1,699) (2,616) Decrease in time deposits 3,129 2,672 Purchase of property, plant and equipment (718) (3,303) Proceeds from sales of property, plant and equipment and intangible fixed assets 6 659 Purchase of investment securities (8) (563) Proceeds from sale of investment securities 2,413 244 Purchase of stocks of affiliates (346) (784) Payments of guarantee deposits (219) (220) Proceeds from collection of guarantee deposits 58 239 Purchase of shares of subsidiaries resulting in change in scope of consolidation - (2,238) Payments of loans receivable (576) (0) Payments of insurance reserve fund (171) (133) Proceeds from refund of insurance reserve fund 518 342 Other payments (112) (70) Other proceeds 55 86 Net cash provided by (used in) investing activities 2,329 (5,685) Cash flows from financing activities: Net decrease in bank loans (3,785) (83) Proceeds from long- debt - 128 Repayments of long- debt (36) (73) Repayments of lease debt (78) (74) Proceeds from issuance of bonds - 9,929 Cash dividends paid (2,176) (2,732) Cash dividends paid to non-controlling shareholders (1) (1) Other (0) 14 Net cash used in financing activities (6,079) 7,107 Effect of exchange rate changes on cash and cash equivalents (269) 409 Net increase (decrease) in cash and cash equivalents 19,508 8,001 Cash and cash equivalents at beginning of year 26,342 46,556 in cash and cash equivalents from newly consolidated subsidiary 705 - Cash and cash equivalents at end of year 46,556 54,558-10 -
2. Non-consolidated Financial Statements (1) Non-consolidated Balance Sheets (Millions of yen) (as of ) (as of ) ASSETS Current assets: Cash and time deposits 31,881 41,835 Notes receivable trade 2,574 1,985 Electronically recorded monetary claims operating 8,771 11,289 Accounts receivable from completed contracts 91,678 94,878 Cost of uncompleted contracts 2,294 2,454 Merchandise and finished goods - 23 Raw materials and supplies - 46 Prepaid expenses 133 179 Deferred tax assets 1,279 1,264 Accounts receivables other 1,822 4,832 Advances paid 965 937 Other 452 217 Less allowance for doubtful accounts (105) (111) Total current assets 141,748 159,833 Fixed assets: Property, plant and equipment at cost Buildings 6,720 5,392 Accumulated depreciation (3,952) (2,920) Buildings (net) 2,767 2,472 Structures 322 267 Accumulated depreciation (245) (199) Structures (net) 76 67 Machinery 120 98 Accumulated depreciation (76) (65) Machinery (net) 43 32 Tools, furniture and fixtures 1,968 2,005 Accumulated depreciation (1,091) (1,104) Tools, furniture and fixtures (net) 876 900 Land 742 2,202 Construction in progress 172 39 Total property, plant and equipment 4,678 5,715 Intangible fixed assets Software 357 1,218 Telephone rights 94 94 Other 2 2 Total intangible fixed assets 454 1,315 Investment and other assets Investment securities 35,322 38,065 Stocks of affiliates 12,794 14,648 Investments in capital 2 5 Long- debt 1,516 1,513 Bankruptcy claims and reorganization claims, etc. 355 61 Long- prepaid expenses 105 98 Prepaid pension cost 2,464 2,165 Guarantee deposits paid 2,320 2,230 Insurance reserve fund 4,652 4,431 Other 392 356 Less allowance for doubtful accounts (1,311) (1,217) Total investments and other assets 58,615 62,358 Total fixed assets 63,747 69,389 TOTAL ASSETS 205,496 229,223-11 -
(Millions of yen) (as of ) (as of ) LIABILITIES Current liabilities: Notes payable trade 10,036 10,407 Electronically recorded obligations - operating - 24,075 Accounts payable for construction contracts 38,680 41,873 Short- debt 3,270 3,140 Lease debt 25 26 Accounts payable 27,546 1,429 Accrued expenses 3,600 4,473 Income taxes payable 3,849 1,548 Advances received on uncompleted contracts 4,558 5,996 Deposits received 6,461 8,494 Unearned revenue - 0 Allowance for bonuses to directors 70 79 Allowance for claim expenses 612 664 Allowance for losses on construction contracts 1,869 2,146 Total current liabilities 100,582 104,355 Non-current liabilities: Bonds payable - 10,000 Long- accounts payable other 29 27 Lease debt 189 175 Deferred tax liabilities 5,056 5,786 Other 71 69 Total non-current liabilities 5,348 16,060 TOTAL LIABILITIES 105,930 120,416 NET ASSETS Shareholders equity: Capital stock 13,134 13,134 Capital surplus Capital reserve 12,853 12,853 Total capital surplus 12,853 12,853 Retained earnings Legal reserve 3,283 3,283 Other retained earnings Dividend equalization reserve 656 656 Reserve for employees severance and retirement benefits 940 940 General reserve 42,878 42,878 Retained earnings carried forward 22,812 30,385 Total retained earnings 70,571 78,144 Treasury stock (8,674) (8,615) Total shareholders equity 87,885 95,517 Valuation and translation adjustments: Net unrealized holding gains on securities 11,461 13,061 Total valuation and translation adjustments 11,461 13,061 Subscription rights to shares 218 228 Total net assets 99,565 108,806 TOTAL LIABILITIES AND ASSETS 205,496 229,223-12 -
(2) Non-consolidated Statements of Income (Millions of yen) Net sales 200,945 217,474 Cost of sales 175,219 188,557 Gross profit 25,726 28,917 Selling, general and administrative expenses: Compensation for directors and corporate auditors Provision for allowance for bonuses to directors 458 377 70 79 Employees salaries and allowances 5,028 5,791 Share-based compensation expenses 55 51 Employees severance and retirement benefits 267 298 Legal welfare expenses 836 899 Welfare expenses 335 330 Repairs and maintenance expenses 98 112 Stationary expenses 1,246 1,497 Correspondence and transportation expenses 774 837 Power utilities expenses 103 101 Research study expenses 652 618 Advertising expenses 335 338 Provision of allowance for doubtful accounts 3 2 Entertainment expenses 361 374 Contribution 56 59 Rents 1,738 1,846 Depreciation 192 157 Taxes and dues 641 581 Insurance expenses 276 270 Miscellaneous expenses 665 719 Total selling, general and administrative expenses 14,198 15,347 Operating income 11,527 13,570 Non-operating income: Interest income 13 15 Interest on marketable securities 5 5 Dividends income 1,067 1,362 Insurance income 55 44 Insurance dividends income 146 141 Rent of real estate 451 483 Reversal of provision for loss on guarantees 47 - Other 45 48 Total non-operating income 1,832 2,100-13 -
(Millions of yen) Non-operating expenses: Interest expenses 25 59 Bond issuance cost - 70 Commission fee 21 3 Foreign currency exchange losses 28 21 Provision of allowance for doubtful accounts 294 201 Expenses on rent of real estate 223 222 Other 64 68 Total non-operating expenses 657 647 Ordinary income 12,703 15,023 Extraordinary gains: Gain on sales of fixed assets - 305 Gain on sale of investment securities 1,026 46 Gain on repayment of securities to retirement benefit trust 432 - Other 1 - Total extraordinary gains 1,460 352 Extraordinary losses: Loss on retirement of fixed assets 4 4 Impairment loss 909 - Write-down of investment securities 126 - Valuation loss on stocks of affiliates 184 921 Other 0 47 Total extraordinary losses 1,224 973 Income before income taxes 12,939 14,402 Income taxes-current 5,013 4,132 Income taxes-deferred (680) (36) Total income taxes 4,333 4,096 Net income 8,606 10,306-14 -
3. Other (1) Conditions of Orders Received and Sales (Consolidated) (i) Orders received (Millions of yen; %) Amount Amount Amount of Percentage of Construction business General-purpose systems 168,174 61.5 169,005 58.5 830 0.5 Industrial systems 97,296 35.5 112,845 39.1 15,549 16.0 Subtotal 265,471 97.0 281,851 97.6 16,380 6.2 Equipment manufacturing and sales business 7,845 2.9 6,645 2.3 (1,199) (15.3) Other 148 0.1 149 0.1 0 0.3 Total [overseas] [repairs and maintenance] 273,464 [45,193] [21,954] 100.0 [16.5] [8.0] 288,646 [47,507] [22,710] 100.0 [16.5] [7.9] 15,181 [2,314] [755] 5.6 [5.1] [3.4] (ii) Sales (Millions of yen; %) Amount Amount Amount of Percentage of Construction business General-purpose systems 162,818 62.5 181,341 62.5 18,522 11.4 Industrial systems 88,664 34.1 101,373 35.0 12,709 14.3 Subtotal 251,483 96.6 282,714 97.5 31,231 12.4 Equipment manufacturing and sales business 8,572 3.3 7,068 2.4 (1,504) (17.5) Other 148 0.1 149 0.1 0 0.3 Total [overseas] [repairs and maintenance] 260,204 [33,824] [21,739] 100.0 [13.0] [8.4] 289,933 [47,343] [22,856] 100.0 [16.3] [7.9] 29,728 [13,519] [1,117] 11.4 [40.0] [5.1] (iii) Amount carried forward (Millions of yen; %) (as of ) (as of ) Amount Amount Amount of Percentage of Construction business General-purpose systems 182,014 78.6 169,679 73.7 (12,335) (6.8) Industrial systems 47,885 20.7 59,356 25.8 11,471 24.0 Subtotal 229,899 99.3 229,036 99.5 (863) (0.4) Equipment manufacturing and sales business 1,605 0.7 1,182 0.5 (423) (26.4) Other - - - - - - Total [overseas] [repairs and maintenance] 231,505 [24,687] [3,007] 100.0 [10.7] [1.3] 230,218 [24,851] [2,860] 100.0 [10.8] [1.2] (1,286) [164] [(146)] (0.6) [0.7] [(4.9)] (Note) Transactions made between segments with respect to orders received, sales and amounts carried forward are set off and deleted. - 15 -
(2) Conditions of Orders Received and Sales (Non-consolidated) (i) Orders received (Millions of yen; %) Amount Amount Amount of Percentage of Construction business General-purpose systems 151,076 74.3 150,597 69.7 (478) (0.3) Industrial systems 52,186 25.7 65,535 30.3 13,349 25.6 Total 203,262 100.0 216,133 100.0 12,870 6.3 (ii) Sales (Millions of yen; %) Amount Amount Amount of Percentage of Construction business General-purpose systems 145,724 72.5 163,118 75.0 17,393 11.9 Industrial systems 55,220 27.5 54,355 25.0 (864) (1.6) Total 200,945 100.0 217,474 100.0 16,529 8.2 (iii) Amount carried forward (Millions of yen; %) (as of ) (as of ) Amount Amount Amount of Percentage of Construction business General-purpose systems 181,284 88.3 168,763 82.7 (12,520) (6.9) Industrial systems 24,128 11.7 35,308 17.3 11,179 46.3 Total 205,412 100.0 204,071 100.0 (1,341) (0.7) - 16 -
(3) Review of Operations (Consolidated) (Financial results for the years ended March 31, 2014 to 2018) (Financial forecasts for the year ending March 31, 2019) (Fraction less than one million yen has been omitted) (Millions of yen; %) Item Net sales Gross profit Year Selling, general and administrative expenses March 31, 2014 March 31, 2015 Results March 31, 2016 Forecasts Year ending March 31, 2019 237,389 243,582 251,291 260,204 289,933 300,000 (4.4) 100.0 2.6 100.0 3.2 100.0 3.5 100.0 11.4 100.0 3.5 100.0 27,308 27,800 29,526 34,082 39,550 22.7 11.5 1.8 11.4 6.2 11.8 15.4 13.1 16.0 13.6 19,527 20,073 20,237 21,699 23,187 4.5 8.2 2.8 8.2 0.8 8.1 7.2 8.3 6.9 8.0 7,780 7,727 9,289 12,383 16,362 16,500 Operating income 117.9 3.3 (0.7) 3.2 20.2 3.7 33.3 4.8 32.1 5.6 0.8 5.5 Non-operating income 1,596 1,468 2,066 1,891 1,879 Non-operating expenses 268 613 753 846 781 Non-operating income and expenses +1,328 +855 +1,313 +1,044 +1,098 9,109 8,582 10,602 13,427 17,461 17,500 Ordinary income 91.4 3.8 (5.8) 3.5 23.5 4.2 26.7 5.2 30.0 6.0 0.2 5.8 Extraordinary gains 336 586 309 1,460 526 Extraordinary losses 1,560 436 472 1,306 841 Extraordinary gains and losses (1,224) +149 (163) +153 (314) Income before income taxes 7,884 8,732 10,438 13,581 17,146 67.3 3.3 10.8 3.6 19.5 4.2 30.1 5.2 26.2 5.9 Income taxes current 3,593 2,583 3,470 5,631 5,031 Income taxes deferred (5) 791 293 (732) (41) Net income 4,296 5,356 6,674 8,683 12,157 Net income (loss) attributable to non-controlling 284 160 24 18 352 interests Net income attributable to 4,011 5,196 6,650 8,665 11,804 11,800 owners of parent 83.5 1.7 29.5 2.1 28.0 2.6 30.3 3.3 36.2 4.1 (0.0) 3.9 Orders received Amount carried forward 264,280 255,648 265,301 273,464 288,646 280,000 4.1 (3.3) 3.8 3.1 5.6 (3.0) 192,170 204,236 218,245 231,505 230,218 210,218 16.3 6.3 6.9 6.1 (0.6) (8.7) - 17 -
(4) Review of Operations (Non-consolidated) (Financial results for the years ended March 31, 2014 to 2018) (Financial forecasts for the year ending March 31, 2019) (Fraction less than one million yen has been omitted) (Millions of yen; %) Item Net sales Gross profit Year Selling, general and administrative expenses March 31, 2014 March 31, 2015 Results March 31, 2016 Forecasts Year ending March 31, 2019 185,654 180,473 199,204 200,945 217,474 228,000 (5.6) 100.0 (2.8) 100.0 10.4 100.0 0.9 100.0 8.2 100.0 4.8 100.0 18,733 19,684 21,467 25,726 28,917 30.5 10.1 5.1 10.9 9.1 10.8 19.8 12.8 12.4 13.3 12,813 12,703 13,338 14,198 15,347 (1.0) 6.9 (0.9) 7.0 5.0 6.7 6.4 7.1 8.1 7.1 5,920 6,981 8,129 11,527 13,570 13,100 Operating income 316.9 3.2 17.9 3.9 16.4 4.1 41.8 5.7 17.7 6.2 (3.5) 5.7 Non-operating income 1,517 1,490 1,796 1,832 2,100 Non-operating expenses 303 562 719 657 647 Non-operating income and expenses +1,214 +928 +1,076 +1,175 +1,453 7,134 7,909 9,206 12,703 15,023 14,600 Ordinary income 154.3 3.8 10.9 4.4 16.4 4.6 38.0 6.3 18.3 6.9 (2.8) 6.4 Extraordinary gains 308 281 293 1,460 352 Extraordinary losses 1,553 426 690 1,224 973 Extraordinary gains and losses (1,244) (145) (397) +235 (621) Income before income taxes Income taxes current Income taxes deferred Net income 5,889 7,764 8,808 12,939 14,402 113.2 3.2 31.8 4.3 13.5 4.4 46.9 6.4 11.3 6.6 2,674 2,036 2,887 5,013 4,132 28 835 116 (680) (36) 3,186 4,892 5,804 8,606 10,306 10,400 92.1 1.7 53.5 2.7 18.6 2.9 48.3 4.3 19.8 4.7 0.9 4.6 Orders received Amount carried forward 200,897 208,658 214,489 203,262 216,133 205,000 4.7 3.9 2.8 (5.2) 6.3 (5.2) 159,625 187,810 203,094 205,412 204,071 181,071 10.6 17.7 8.1 1.1 (0.7) (11.3) - 18 -