ADVANEX : Flash Report (Consolidated Basis) Results for fiscal year ended March 31, 2016

Millions of yen

ADVANEX INC. Flash Report(Consolidated Basis) --Summary Results for fiscal year ended March 31, 2016

May 11, 2016

Company name: ADVANEX INC. Stock listings: Tokyo Stock Exchange

Code number: 5998 URL http://www.advanex.co.jp Representative: Tsuneo Shibano, President & COO

Inquiries: Toshiya Ohno, CFO & Executive Director Telephone: [phone] Date of the General Meeting of the Shareholders: June 23, 2016

Expected date of payment for dividends June 24, 2016

Filing date of securities report: June 24, 2016 Supplementary explanation material for financial results Yes

Holding of presentation meeting for financial results Yes

(Figures less than ¥1 million have been omitted.)

1. Performance
2. Operating results

   Years ended March 31 Percentages indicate year-on-year increase (decrease).

   Net sales		Operating income		Ordinary income		Net income
   Millions of yen	%	Millions of yen	%	Millions of yen	%	Millions of yen	%
   2016	19,073	(35.3)	668	(38.2)	671	(32.3)	587	9.7
   2015	29,487	8.8	1,081	31.8	992	21.0	535	(21.6)

   Note: Comprehensive income(millions of yen): Mar. 2016: (245) -% Mar.2015: 2,142 (69.3%)

   Net income per share	Net income per share after dilution	Return on equity	Ratio of ordinary income to total assets	Ratio of operating income to net sales
   Yen	Yen	%	%	%
   2016	143.44	142.30	8.7	4.0	3.5
   2015	129.23	128.38	9.1	5.4	3.7

   Reference : Gain (Loss) on investment by equity method: Year ended March 31, 2016:--- ¥(0) million Year ended March 31, 2015: --- ¥(239) million

   (Note) Advanex Inc. conducted consolidation of common shares (consolidate 10 shares into 1 share) effective on October 1, 2015. The number of shares outstanding at the end of period, the number of shares of treasury stock at the end of period and the average number of share issued and outstanding in each period are calculated under the assumption that this share consolidation was conducted at the beginning of the previous fiscal year.

3. Consolidated Financial position

   At March 31 (Figures less than ¥1 million have been omitted.)

   Total assets	Net assets	Equity ratio	Net assets per share
   Millions of yen	Millions of yen	%	Yen
   2016	17,024	6,578	38.4	1,600.38
   2015	16,554	7,032	42.3	1,692.93

   (Reference) Total shareholders' equity: March 31, 2016: ¥6,536 million, March 31, 2015: ¥7,002 million

   (Note) ADVANEX INC. is planning to implement a share consolidation with a ratio of ten shares to one share. Accordingly, Net asset per share is calculated in consideration of this share consolidation.

4. Cash flows

5. Years ended March 31 (Figures less than ¥1 million have been omitted.)

   Cash flows from operating activities	Cash flows from investing activities	Cash flows from financing activities	Cash and cash equivalents at end of year
   Millions of yen	Millions of yen	Millions of yen	Millions of yen
   2016	1,415	(2,823)	910	2,669
   2015	2,139	(1,179)	(794)	3,407

6. Dividends

   Years ended March 31

   Record date	Dividends per share
   	First quarter -end dividends	Second quarter -end dividends	Third quarter -end dividends	Year-end dividends	Total
   	Yen	Yen	Yen	Yen	Yen
   2015	---	---	---	3.00	3.00
   2016	---	---	---	35.00	35.00
   2017 (Forecast)	---	--	---	40.00	40.00

   Record date	Total amount of dividends (for the entire fiscal year)	Payout ratio (consolidated)	Dividends-to- net assets ratio (consolidated)
   	Millions of yen	%	%
   2015	124	23.2	2.1
   2016	142	24.4	2.1
   2017 (Forecast)		27.3

   Note: ADVANEX INC. is planning to implement a share consolidation with a ratio of ten shares to one share. Accordingly, the above dividend for FY2015(Forecast) is calculated in consideration of this share consolidation.

7. Forecasts for the Fiscal Year Ended March 31, 2017

   Percentages indicate year-on-year increase (decrease).

   Net sales		Operating income		Ordinary income
   Millions of yen	%	Millions of yen	%	Millions of yen	%
   Interim period	9,400	(5.3)	330	(10.0)	320	(9.4)
   Fiscal year	19,200	0.7	800	19.7	800	19.1

   Net income (loss)		Net income (loss) per share
   Millions of yen	%	Yen
   Interim period	180	(24.2)	44.07
   Fiscal year	600	2.1	146.91

8. Other

9. Significant changes in subsidiaries during the subject fiscal year (Transfer of particular subsidiaries following a change in the scope of consolidation): No

   Additions: 0 Deletions: 1 Advanex Mortion design Inc.

10. Changes in accounting principles, procedures, presentations, etc.

11. Changes associated with revision of accounting standards, etc: Yes

12. Changes other than a.: No

13. Changes in accounting estimates: No

14. Restatement: No

15. Number of shares outstanding (Common stock)

16. Number of shares outstanding at fiscal year-end(including treasury stock): 2016: 4,153,370 shares 2014: 4,153,370 shares

    Number of shares of treasury stock at fiscal year-end:

    2016: 69,313 shares 2014: 16,817 shares Average Number of outstanding at term-end:

    2016: 4,094,062 shares 2014: 4,140,418 shares

    [Notes]

    Advanex Inc. conducted consolidation of common shares (consolidate 10 shares into 1 share) effective on October 1, 2015. The number of

    shares outstanding at the end of period, the number of shares of treasury stock at the end of period and the average number of share issued and outstanding in each period are calculated under the assumption that this share consolidation was conducted at the beginning of the previous fiscal year

    (Reference) FLASH REPORT (NON-CONSOLIDATED BASIS)
17. Operating results

    Years ended March 31 Percentages indicate year-on-year increase (decrease).

    Net sales		Operating income		Ordinary income (loss)		Net income
    Millions of yen	%	Millions of yen	%	Millions of yen	%	Millions of yen	%
    2016	8,067	0.3	(402)	---	(358)	---	(286)	---
    2015	8,039	1.8	4	(96.8)	(41)	---	921	---

    Net income per share	Net income per share after dilution
    Yen	Yen
    2015	(70.02)	---
    2015	222.68	221.21

18. Financial position

At March 31

Total assets	Net assets	Equity ratio	Net assets per share
Millions of yen	Millions of yen	%	Yen
2016	10,193	2,303	22.2	553.61
2015	9,789	2,818	28.5	674.03

(Reference) Total shareholders' equity: March 31, 2016 ¥2,260million, March 31, 2015: ¥2,788 million

Notes

• ADVANEX INC. is planning to implement a share consolidation with a ratio of ten shares to one share. Accordingly, Net asset per share is calculated in consideration of this share consolidation.

• Audit procedures for financial statements under the Financial Instruments and Exchange Law are not completed at the

time of disclosure of this Brief Report of Financial Results.

・The business forecasts presented in this report are based on information available to the management at the time of preparation, and are subject to a number of risks and uncertainties. Actual results may differ materially from those projected due to a wide range of factors.