Tsubakimoto Chain : Consolidated Financial Statements for the six-month period ended September 30, 2017

CONSOLIDATED FINANCIAL STATEMENTS

For the six-month period ended September 30, 2017

October 31, 2017

Name of the company: Tsubakimoto Chain Co.

Code number: 6371

Stock exchange listings: Tokyo

URL: http://tsubakimoto.com/

Representative: Yasushi Ohara, President and Representative Director

Inquiries: Takatoshi Kimura, Executive Officer, Management Planning Tel [phone]

Scheduled quarterly

report issuance date: November 7, 2017

Scheduled dividend

payment date: December 8, 2017

*Amounts less than ¥1 million are omitted.

1. Consolidated Operating Results for the Six Months Ended September 30, 2017

2. Consolidated Results of Operation

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

   Net sales		Operating income		Ordinary income		Net income
   6-month period ended September 30, 2017	Millions of yen	%	Millions of yen	%	Millions of yen	%	Millions of yen	%
   	102,778	7.4	9,500	0.1	10,239	6.0	6,835	6.9
   6-month period ended September 30, 2016	95,740	(5.7)	9,490	(11.5)	9,655	(15.0)	6,392	(11.6)

   Note: Comprehensive income

   6-month period ended September, 2017 : ¥ 9,599 million (- %) 6-month period ended September 30, 2016 : ¥ -2,475 million (- %)

   Net income per share	Net income per share (diluted)
   6-month period ended September 30, 2017	Yen	Yen
   	36.11	-
   6-month period ended September 30, 2016	34.17	-

3. Consolidated Financial Position

4. Total assets	Net assets	Equity ratio
   As of September 30, 2017	Millions of yen	Millions of yen	%
   	275,709	163,492	58.7
   As of March 31, 2017	267,215	156,218	57.1

   Note: Shareholders' equity

   As of September 30, 2017 : ¥ 161,777 million

   As of March 31, 2017 : ¥ 152,473 million

5. Dividends

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

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

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

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

   Net sales		Operating income		Ordinary income		Net income		Net income per share
   12-month period ending March 31, 2018	Millions of yen	%	Millions of yen	%	Millions of yen	%	Millions of yen	%	Yen
   	205,000	3.1	20,500	(5.3)	21,000	(4.6)	14,500	(0.7)	76.61

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

   • Notes

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

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

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

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

   • Other changes in accounting policies: None

   • Changes in accounting estimates: None

   • Restatement of corrections: None

   • Number of shares issued (common shares)

   • Number of shares issued at end of period (including treasury shares) As of September 30, 2017: 191,406,969 shares As of March 31, 2017: 191,406,969 shares

   • Number of treasury shares at end of period

     As of September 30, 2017: 2,134,606 shares

     As of March 31, 2017: 4,345,450 shares

   • Average number of shares during the period

   As of September 30, 2017: 189,275,332 shares

   As of September 30, 2016: 187,073,968 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.