Tsubakimoto Chain : Consolidated Financial Statements for the nine-month period ended December 31, 2017

February 7, 2018

CONSOLIDATED FINANCIAL STATEMENTS

For the nine-month period ended December 31, 2017

Name of the company: Tsubakimoto Chain Co.

Code number:

Stock exchange listings:

URL:

Representative: Inquiries:

Scheduled quarterly report issuance date:

6371 Tokyohttp://tsubakimoto.com/

Yasushi Ohara, President and Representative Director Takatoshi Kimura, Executive Officer, Management Planning Tel [phone]

February 8, 2018

*Amounts less than ¥1 million are omitted.

1. Consolidated Operating Results for the Nine Months Ended December 31, 2017

(1) Consolidated Results of Operation

(% figures show change compared to the same period of the previous year.)

Net sales

Operating incomeOrdinary incomeMillions of yen Millions of yen Millions of yen 9-month period ended

December 31, 2017 9-month period ended December 31, 2016

155,574 144,744

% 7.5 (4.5)

15,207 15,308

% (0.7) (5.5)Millions of yen 16,321 15,930

% 2.4 (5.6)

Note: Comprehensive income

9-month period ended December 31, 2017 : ¥ 16,987 million : 113.8% 9-month period ended December 31, 2016 : ¥ 7,944 million : ( 8.3%)

Net income per share	Net income per share (diluted)
9-month period ended December 31, 2017 9-month period ended December 31, 2016	Yen 59.64 55.98	Yen - -

(2) Consolidated Financial Position

Total assets	Net assets	Equity ratio
As of December 31, 2017 As of March 31, 2017	Millions of yen 280,887 267,215	Millions of yen 168,797 156,218	% 59.5 57.1

Note: Shareholders' equity

Net income

11,287 10,471

% 7.8 (2.8)

As of December 31, 2017 : ¥ 167,006 million As of March 31, 2017 : ¥ 152,473 million

2. Dividends

Dividends per share
1st quarter end	2nd quarter end	3rd quarter end	Fiscal year end	Total
FYE2017 FYE2018	Yen - -	Yen 11.00 11.00	Yen - -	Yen 13.00	Yen 24.00
FYE2018 (Forecasted)	12.00	23.00

Note: Revision of cash dividends forecast in quarter under review: No

3. Outlook for Consolidated Operating Results for the 12 Months Ending March 31, 2018

(% figures show change compared to the same period of the previous year.)

Millions of yen Millions of yen Millions of yen Millions of yen 12-month period

Net sales

Ordinary income

Net income per share

ending March 31, 2018

% 3.1

%

%

%

21,000

(4.6)Yen 76.61

Note: Revision of outlook for consolidated operating results in quarter under review: No

* Notes

• (1) Significant changes in scope of consolidation (indicates changes in specified subsidiaries involving changes in the scope of consolidation): None

• (2) Adoption of specific accounting procedures for preparing quarterly consolidated financial statements: None

• (3) Changes in accounting policies, accounting estimates, and restatement of corrections:

  • 1. Changes in accounting policies due to the revision of accounting standards and other regulations: None

  • 2. Other changes in accounting policies: None

  • 3. Changes in accounting estimates: None

  • 4. Restatement of corrections: None

• (4) Number of shares issued (common shares)

  1 Number of shares issued at end of period (including treasury shares)

As of December 31, 2017 :	191,406,969 shares
As of March 31, 2017 :	191,406,969 shares
2 Number of treasury shares at end of period
As of December 31, 2017 :	2,136,910 shares
As of March 31, 2017 :	4,345,450 shares
3 Average number of shares during the period
As of December 31, 2017 :	189,273,916 shares
As of December 31, 2016 :	187,072,128 shares
* Implementation status of the quarterly review

These quarterly financial statements are exempt from the quarterly review procedure required by the Financial Instruments and Exchange Act. The quarterly review based on the Financial Instruments and Exchange Act has not been completed at the time of disclosure of these financial statements.

* Explanation regarding the appropriate usage of consolidated operating results and other items

The outlook for consolidated operating results is based on information available at the present juncture and certain assumptions believed to be reasonable. However, it includes risks and uncertainties. Actual business results may differ materially from the figures of the outlook for consolidated operating results due to changes in business conditions, market trends, or fluctuation in currency exchange rates. Furthermore, factors that may affect business results are not limited to those factors.