Reference translation Financial Results for the Year … · Long-term debt 1,209 1,280 ... contracts 57,096 62,068 Electronically recorded obligations - operating - 23,571

- 1 -

Reference translation

Financial Results for the Year Ended March 31, 2018

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: Atsushi Ouchi, Chairman, President and Representative Director

Contact: Yoshiyuki Hara, Director and Managing Executive Officer, Group General Manager, Corporate Group

Phone: (03) 6369-8215

Scheduled date of ordinary general meeting of shareholders:

June 26, 2018

Scheduled date to commence

dividend payment:

June 27, 2018

Scheduled date to submit the Securities Report:

June 26, 2018

(Fraction less than one million yen has been omitted)

1. Consolidated Results for the Year Ended March 31, 2018 (April 1, 2017 to March 31, 2018) (1) Consolidated Results of Operations

(% indicates changes from the previous term)

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) (%)

Year ended

March 31, 2018 289,933 11.4 16,362 32.1 17,461 30.0 11,804 36.2

Year ended

March 31, 2017 260,204 3.5 12,383 33.3 13,427 26.7 8,665 30.3

(Note) Comprehensive income: Year ended March 31, 2018: ¥14,398 million year on year: 54.2% Year ended March 31, 2017: ¥9,339 million year on year: －%

Basic earnings per share Diluted earnings per share Rate of return on

equity

Ratio of ordinary

income to total assets

Ratio of operating

income to net sales

(Yen) (Yen) (%) (%) (%)

Year ended

March 31, 2018 160.41 159.94 10.3 7.0 5.6

Year ended

March 31, 2017 117.83 117.49 8.2 5.8 4.8

(Reference) Equity in earnings (losses) of affiliated companies: Year ended March 31, 2018: ¥189 million

Year ended March 31, 2017: ¥249 million

(2) Consolidated Financial Positions

Total assets Net assets Equity ratio Net assets per share

(Millions of yen) (Millions of yen) (%) (Yen)

Year ended

March 31, 2018 265,326 124,484 45.4 1,637.63

Year ended

March 31, 2017 234,716 111,574 46.6 1,487.29

(Reference) Shareholders’ equity:

Year ended March 31, 2018: ¥120,546 million Year ended March 31, 2017: ¥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)

Year ended

March 31, 2018 6,170 (5,685) 7,107 54,558

Year ended

March 31, 2017 23,528 2,329 (6,079) 46,556

- 2 -

2. Dividends

Cash dividends per share

Total cash

dividends (annual)

Payout ratio

(consolidated)

First

quarter

end

Second

quarter

end

Third

quarter

end

Year-end Annual

Ratio of dividends

to net assets

(consolidated)

(Yen) (Yen) (Yen) (Yen) (Yen) (Millions of yen) (%) (%) Year ended

March 31, 2017 － 14.00 － 22.00 36.00 2,657 30.6 2.5

Year ended

March 31, 2018 － 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 March 31, 2017: 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)

(% indicates changes from the previous corresponding term)

Net sales Operating income Ordinary income Net income attributable to

owners of parent Basic earnings

per share

(Millions of yen) (%) (Millions of yen) (%) (Millions of yen) (%) (Millions of yen) (%) (Yen)

End of second

quarter 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) Changes in Important Subsidiary (Change in Specific Subsidiary Accompanying Change in Scope of Consolidation) During the Term: None

(2) Changes in Accounting Policies, Changes in Accounting Estimates and Restatements

(i) Changes in accounting policies in accordance with the revision of accounting standard, etc.: None (ii) Changes in accounting policies other than (i) above: None

(iii) Changes 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)

March 31, 2018: 82,765,768 shares

March 31, 2017: 82,765,768 shares

(ii) Number of treasury shares at fiscal year end

March 31, 2018: 9,155,382 shares

March 31, 2017: 9,220,817 shares

(iii) Average number of shares during the period

Year ended March 31, 2018: 73,594,611 shares

Year ended March 31, 2017: 73,539,820 shares

(References) Summary of Non-consolidated Financial Results 1. Non-consolidated Financial Results for the Year Ended March 31, 2018 (April 1, 2017 to March 31, 2018) (1) Non-consolidated Results of Operations

(% indicates changes from the previous term)

Net sales Operating income Ordinary income Net income

(Millions of yen) (%) (Millions of yen) (%) (Millions of yen) (%) (Millions of yen) (%) Year ended

March 31, 2018 217,474 8.2 13,570 17.7 15,023 18.3 10,306 19.8

Year ended

March 31, 2017 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)

Year ended

March 31, 2018 139.53 139.14

Year ended

March 31, 2017 116.60 116.26

- 3 -

(2) Non-consolidated Financial Positions

Total assets Net assets Equity ratio Net assets per share

(Millions of yen) (Millions of yen) (%) (Yen) Year ended

March 31, 2018 229,223 108,806 47.4 1,469.76

Year ended

March 31, 2017 205,496 99,565 48.3 1,345.92

(Reference) Shareholders’ equity: Year ended March 31, 2018: ¥108,578 million Year ended March 31, 2017: ¥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) (% indicates changes from the previous corresponding term)

Net sales Operating income Ordinary income Net income Basic earnings

per share

(Millions of yen) (%) (Millions of yen) (%) (Millions of yen) (%) (Millions of yen) (%) (Yen)

End of second

quarter 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 from the forecasts, depending on various factors.

- 4 -

(References)

1. Consolidated Financial Statements

(1) Consolidated Balance Sheets

(Millions of yen)

Year ended March 31, 2017

(as of March 31, 2017) Year ended March 31, 2018

(as of March 31, 2018)

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-term 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

- 5 -

(Millions of yen)




LIABILITIES

Current liabilities:

Notes payable, accounts payable for construction

contracts 57,096 62,068

Electronically recorded obligations - operating - 23,571

Short-term 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-term 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

- 6 -

(2) Consolidated Statements of Income and Comprehensive Income

Consolidated Statements of Income

(Millions of yen)


(from April 1, 2016 to March 31, 2017)



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

- 7 -

(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

- 8 -

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

9,463 13,959

Comprehensive income (loss) attributable to non-controlling interests

(124) 439

- 9 -

(3) Consolidated Statements of Cash Flows

(Millions of yen)





Cash flows from operating activities:


Depreciation and amortization 776 730


Amortization of goodwill 27 101

Increase (decrease) in allowance for doubtful accounts

366 (145)

Increase (decrease) in allowance for claim expenses 106 164

Increase (decrease) in allowance for losses on

construction contracts 268 173

Increase (decrease) in provision for loss on

guarantees (47) -

Increase (decrease) in allowance for bonuses to

directors (1) 0

Increase (decrease) in provision for directors’

retirement benefits (0) (2)

Decrease (increase) in net defined benefit asset 1,218 298

Increase (decrease) in net defined benefit liability 68 (260)

Interest and dividends income (770) (832)


Foreign currency exchange loss (gain) 12 (26)


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)


Decrease (increase) in trade receivable 5,923 (9,429)

Decrease (increase) in cost of uncompleted contracts (142) (211)

Increase (decrease) in notes and accounts

payable—trade (1,277) 5,488

Increase (decrease) in advances received on

uncompleted contracts 2,359 1,909

Increase (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

- 10 -

(Millions of yen)





Cash flows from investing activities:

Increase 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-term debt - 128

Repayments of long-term 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

Increase in cash and cash equivalents from newly

consolidated subsidiary 705 -

Cash and cash equivalents at end of year 46,556 54,558

- 11 -

2. Non-consolidated Financial Statements

(1) Non-consolidated Balance Sheets

(Millions of yen)

Year ended March 31, 2017 (as of March 31, 2017)

Year ended March 31, 2018 (as of March 31, 2018)

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-term debt 1,516 1,513

Bankruptcy claims and reorganization claims, etc. 355 61

Long-term 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

- 12 -

(Millions of yen)




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-term 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-term 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

- 13 -

(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 458 377

Provision for allowance for bonuses

to directors 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


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

- 14 -

(Millions of yen)





Non-operating expenses:



Commission fee 21 3

Foreign currency exchange losses 28 21


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:



Write-down of investment securities 126 -

Valuation loss on stocks of affiliates 184 921

Other 0 47

Total extraordinary losses 1,224 973


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

- 15 -

3. Other

(1) Conditions of Orders Received and Sales (Consolidated)

(i) Orders received (Millions of yen; %)


(from April 1, 2016

to March 31, 2017)


(from April 1, 2017

to March 31, 2018)

Amount of

Increase

(Decrease)

Percentage of

Increase

(Decrease) Amount (%) Amount (%)

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; %)


(from April 1, 2016

to March 31, 2017)


(from April 1, 2017

to March 31, 2018)

Amount of

Increase

(Decrease)

Percentage of

Increase


Construction

business

General-purpose systems 162,818 62.5 181,341 62.5 18,522 11.4


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]


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; %)





Amount of

Increase

(Decrease)

Percentage of

Increase


Construction

business

General-purpose systems 182,014 78.6 169,679 73.7 (12,335) (6.8)


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]


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.

- 16 -

(2) Conditions of Orders Received and Sales (Non-consolidated)

(i) Orders received (Millions of yen; %)


(from April 1, 2016

to March 31, 2017)


(from April 1, 2017

to March 31, 2018)

Amount of

Increase

(Decrease)

Percentage of

Increase


Construction

business

General-purpose systems 151,076 74.3 150,597 69.7 (478) (0.3)


Total 203,262 100.0 216,133 100.0 12,870 6.3

(ii) Sales (Millions of yen; %)


(from April 1, 2016

to March 31, 2017)


(from April 1, 2017

to March 31, 2018)

Amount of

Increase

(Decrease)

Percentage of

Increase


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; %)





Amount of

Increase

(Decrease)

Percentage of

Increase


Construction

business

General-purpose systems 181,284 88.3 168,763 82.7 (12,520) (6.9)


Total 205,412 100.0 204,071 100.0 (1,341) (0.7)

- 17 -

(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; %)

Year

Item

Results Forecasts

Year ended

March 31, 2014

Year ended

March 31, 2015

Year ended

March 31, 2016

Year ended

March 31, 2017

Year ended

March 31, 2018

Year ending

March 31, 2019

Changes

from the

previous

term

(%)

Changes

from the

previous

term

(%)

Changes

from the

previous

term

(%)

Changes

from the

previous

term

(%)

Changes

from the

previous

term

(%)

Changes

from the

previous

term

(%)

Net sales 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

Gross profit 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

Selling, general and

administrative expenses 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

Operating income 7,780 7,727 9,289 12,383 16,362 16,500

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

Ordinary income 9,109 8,582 10,602 13,427 17,461 17,500

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

interests

284

160

24

18

352

Net income

attributable to

owners of parent

4,011 5,196 6,650 8,665 11,804 11,800

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 264,280 255,648 265,301 273,464 288,646 280,000

4.1 (3.3) 3.8 3.1 5.6 (3.0)

Amount carried forward 192,170 204,236 218,245 231,505 230,218 210,218

16.3 6.3 6.9 6.1 (0.6) (8.7)

- 18 -

(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; %)

Year

Item

Results Forecasts

Year ended

March 31, 2014

Year ended

March 31, 2015

Year ended

March 31, 2016

Year ended

March 31, 2017

Year ended

March 31, 2018

Year ending

March 31, 2019

Changes

from the

previous

term

(%)

Changes

from the

previous

term

(%)

Changes

from the

previous

term

(%)

Changes

from the

previous

term

(%)

Changes

from the

previous

term

(%)

Changes

from the

previous

term

(%)

Net sales 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

Gross profit 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

Selling, general and

administrative expenses 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

Operating income 5,920 6,981 8,129 11,527 13,570 13,100

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

Ordinary income 7,134 7,909 9,206 12,703 15,023 14,600

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

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

Income taxes

—current 2,674 2,036 2,887 5,013 4,132

Income taxes

—deferred 28 835 116 (680) (36)

Net income 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 200,897 208,658 214,489 203,262 216,133 205,000

4.7 3.9 2.8 (5.2) 6.3 (5.2)

Amount carried forward 159,625 187,810 203,094 205,412 204,071 181,071

10.6 17.7 8.1 1.1 (0.7) (11.3)

Reference translation Financial Results for the Year … · Long-term debt 1,209 1,280 ... contracts 57,096 62,068 Electronically recorded obligations - operating - 23,571

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